Full text of Federal Reserve Bulletin : December 2000
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Volume 86 • Number 12 • December 2000
Federal Reserve
BULLETIN
Board of Governors of the Federal Reserve System, Washington, D.C.
Table of Contents
797 MUTUAL
MARKET
FUNDS AND THE U.S.
EQUITY
Mutual funds have become an important intermediary between households and financial markets, especially the equity market. About half
of all households have a mutual fund account,
and mutual funds hold about one-fifth of household financial assets. Because households have
favored equity investments in their mutual fund
accounts, mutual funds currently hold about
one-fifth of all publicly traded U.S. equities. In
addition to discussing the recent growth of
mutual funds and their role in household
finances, this article analyzes the relationship
between households' investment decisions in
equity mutual funds and equity market prices.
813 TREASURY AND FEDERAL
RESERVE
FOREIGN EXCHANGE
OPERATIONS
During the third quarter of 2000, the dollar
appreciated 8.2 percent against the euro and
2.0 percent against the yen. On a trade-weighted
basis, the dollar ended the quarter 4.1 percent
stronger against the currencies of the United
States' major trading partners. On September 22, the U.S. monetary authorities intervened
in the foreign exchange markets, purchasing
1.5 billion euros against the dollar. The operation, which was divided evenly between the U.S.
Treasury Department's Exchange Stabilization
Fund and the Federal Reserve System, was coordinated with the European Central Bank and the
monetary authorities of Japan, Canada, and the
United Kingdom.
818 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR OCTOBER
2000
Industrial production edged down 0.1 percent in
October, to 146.3 percent of its 1992 average,
after increases in August and September that
were revised upward. The rate of capacity utilization for total industry decreased to 82.1 percent, just 0.1 percentage point above its 1967-99
average.
821
ANNOUNCEMENTS
Modification of the supervision program for U.S.
operations of foreign banks.
Negotiation of ACH transaction fees with
private-sector operators.
Increase in adversely classified syndicated loans.
Interagency proposal to simplify capital requirements for non-complex banks and thrift
institutions.
Interagency proposal to limit sharing of consumer data among financial affiliates.
Enforcement actions.
Change in Board staff.
825 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 27, 2000.
A 3 GUIDE TO TABULAR
PRESENTATION
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A70
FEDERAL
RESERVE
BOARD
RELEASES
A64 INDEX TO STATISTICAL
TABLES
A66 BOARD OF GOVERNORS
AND
AND
STAFF
AND
PUBLICATIONS
A 7 2 ANTICIPATED SCHEDULE OF RELEASE
DATES FOR PERIODIC
RELEASES
A 7 4 MAPS OF THE FEDERAL
A63 GUIDE TO STATISTICAL
SPECIAL TABLES
A68 FEDERAL OPEN MARKET COMMITTEE
STAFF; ADVISORY
COUNCILS
A76 FEDERAL RESERVE
AND OFFICES
All
RESERVE
BANKS,
INDEX TO VOLUME 86
SYSTEM
BRANCHES,
PUBLICATIONS COMMITTEE
Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus
• J. Virgil Mattingly, Jr. • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens • David J. Stockton
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction
of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.
Mutual Funds and the U.S. Equity Market
Eric M. Engen and Andreas Lehnert, of the Board's
Division of Research and Statistics, prepared this
article with the assistance of Richard Kehoe.
Mutual funds have become an important intermediary between households and financial markets, particularly the equity market. By providing liquid, lowcost shares in a diversified portfolio of financial assets
selected by professional money managers, mutual
funds have enabled an increasing number of households to enter financial markets. Indeed, about half of
all U.S. households currently own shares in a mutual
fund.
Since 1990, total mutual fund assets have increased
nearly sevenfold, and the assets of mutual funds that
invest in stocks have grown even more, expanding
nearly twentyfold. Over the same period, mutual fund
assets have come to account for a larger share of
household wealth. Moreover, a greater proportion of
U.S. households now own stock, in large part because
of their investments in mutual funds. Much of this
growth has come in households' retirement assets,
as developments in pension plans and other taxpreferred retirement accounts have increasingly made
it possible for households to control more of their
retirement asset portfolios—and households have
tended to invest a significant portion of their retirement assets in mutual funds.
As the popularity of mutual funds as an investment
vehicle has grown, so too has their importance in
financial markets. Mutual funds currently hold about
one-fifth of publicly traded U.S. corporate equities.
Thus, the investment behavior of mutual fund shareholders could, in theory, influence equity market
prices. For example, if fund shareholders were to
request large redemptions from their accounts when
faced with a sharp decline in equity prices, mutual
fund managers might be forced to sell some of the
funds' equity holdings in the slumping market, exacerbating the decline. In recent years, however, mutual
fund shareholders as a group have not tended to flee
from their equity investments when confronted with
sharp temporary drops in equity prices. Indeed, there
is some evidence that shareholder restraint in requesting redemptions has been greater recently than during
earlier periods of market turbulence.
Mutual fund investors could also distort equity
prices if their enthusiasm for investing in mutual
funds were to go beyond general market assessments
of fundamentals and tolerance for risk, pushing equity
prices temporarily above the level that other equity
market participants would tend to settle on. We
present evidence, however, indicating that mutual
fund investors, like other market investors, have been
trading primarily in response to new information and
other factors that influence the value of stocks. Thus,
in general, we find little evidence that mutual fund
investors have been a destabilizing force in the U.S.
equity market in recent years.
GROWTH OF MUTUAL FUND
ASSETS
Assets under management at mutual funds have
grown substantially over the past fifteen years
(chart l).1 At the end of August 2000, mutual funds
1. This article focuses on registered investment companies that are
called mutual funds or open-end funds and excludes from the discussion other types of registered investment companies such as closedend funds, unit investment trusts, and exchange-traded funds. For
more discussion of the mutual fund industry, see Phillip R. Mack
"Recent Trends in the Mutual Fund Industry," Federal Reserve Bulletin, vol. 79 (November 1993), pp. 1001-12; Robert Pozen, The
Mutual Fund Business (MIT Press, 1998); Investment Company Institute, Mutual Fund Fact Book (ICI, 2000); and Brian Reid, "The
1990s: A Decade of Expansion and Change in the U.S. Mutual Fund
Industry," Investment Company Institute Perspective, vol. 6 (July
2000).
1. Assets of mutual funds, January 1984-August 2000
Billions of dollars
1984
1986
1988
1990
1992
1994
NOTE. Data show month-end assets.
SOURCE. Investment Company Institute.
1996
1998
2000
798
Federal Reserve Bulletin • December 2000
2. Assets of equity mutual funds, January 1984-August 2000
3. Net new cash flows to mutual funds, 1990-2000
LJ
i
1990
NOTE. Data show month-end assets.
SOURCE. Investment Company Institute.
held about $71/? trillion in assets, making them the
largest type of financial institution (as measured by
assets under management), even larger than commercial banks. Most of the recent growth has come in
assets invested in equity mutual funds, that is, mutual
funds that specialize in investing in the shares of
publicly traded firms. At the end of August 2000,
equity funds held more than 60 percent of all mutual
fund assets, or more than $4V2 trillion. The next
largest group—money market mutual funds, which
invest in very short term liquid assets such as commercial paper and Treasury bills—held less than
$2 trillion in assets. Bond funds—which invest in
corporate, Treasury, government agency, and foreign
bonds—and hybrid funds—which invest in a mix of
stocks and bonds—held about $1 trillion in assets
combined.2
Mutual funds that invest primarily in the shares of
corporations based in the United States are by far the
largest type of equity mutual fund (chart 2). These
domestic equity funds hold more than 85 percent of
the assets of all equity mutual funds. International
equity funds, which invest primarily in the shares of
non-U.S. companies, account for the remainder.
In 1999, 81 percent of total mutual fund assets
were held by households.3 The remainder were held
by institutional investors—businesses, fiduciaries,
2. Modern mutual funds were introduced in 1924. Equity funds
were the most popular type of fund until 1979, when the assets of
money market funds surpassed those of equity funds. Money market
funds dominated equity funds throughout the 1980s, and by 1985,
bond fund assets had also grown beyond those of equity funds. It was
not until 1993 that equity funds regained their current position as the
largest type of mutual fund.
3. See Investment Company Institute, Mutual Fund Fact Book,
p. 41. Household holdings include mutual funds held in retail
accounts, employer-sponsored pension plan accounts, individual
retirement accounts, and variable annuities.
i
i
1992
i
i
1994
i
i
1996
i
i
1998
i
i L
2000
NOTE. Data show average net monthly flows excluding reinvested dividends
for the year indicated; for 2000, values reflect flows through August. "Other
funds" are hybrid, bond, and retail money market mutual funds.
SOURCE. Investment Company Institute.
and other organizations. Institutional investors are
much more likely to invest in money market funds
than in long-term funds (equity, hybrid, and bond)
and at the end of August 2000 held less than 10 percent of the assets of equity funds. Thus, almost all
mutual fund assets invested in the equity market are
owned by households.4
Mutual fund assets grow because investors, on net,
decide to put more of their financial assets into
mutual funds or because the underlying financial
securities held by the funds increase in value, or a
combination of these two factors. Over the 1990s,
total mutual fund assets grew at an annual rate of
more than 21 percent.5 More than half the growth
came from fund performance, that is, from the net
appreciation in value of the securities held in the
funds and from the reinvestment of dividends and
interest earned by the securities held in the funds.
Mutual fund performance has been robust in recent
years, primarily because equity funds have benefited
from the stock market boom. Net new cash flows
accounted for 40 percent of mutual fund asset growth
over the 1990s.6
Recently, average monthly net new cash flows into
mutual funds have been dominated by flows into
equity funds (chart 3). Since 1994, net new cash
flows from households into equity funds have greatly
outpaced those into all other types of mutual funds
4. In contrast, approximately 40 percent of money market fund
assets are held in institutional accounts, with the remainder in retail
accounts. The share of money market fund assets held by institutional
shareholders has increased greatly in recent years, as many businesses
and other organizations have decided that having their liquid assets
managed by mutual funds is more cost effective than managing them
internally.
5. See Reid, "The 1990s," p. 2.
6. Ibid.
Mutual Funds and the U.S. Equity Market
4. Net new cash flows to equity mutual funds, 1996-2000
5. Change in equity indexes, January 1996-August 2000
Percent
Billions of dollars
•
•
9
799
Capital appreciation funds
Total return funds
International equity funds
1996
1997
1998
1999
2000
NOTE. Data show average net monthly flows excluding reinvested dividends
for the year indicated; for 2000, values reflect flows through August.
SOURCE. Investment Company Institute.
combined in all years except one. The Asian financial
crisis and the Russian debt default prompted a "flight
to safety" in 1998, and mutual fund investors reduced
their investments in stocks and increased their investments in lower-risk money funds and short-term bond
funds. That episode proved to be only temporary, and
mutual fund investors returned vigorously to equity
funds, increasing the pace of net new cash flows into
those funds to a record level over the first eight
months of 2000. Over the same period, however,
households were, on balance, net sellers of directly
held equities.7 Thus, at least part of the cash flows
into equity mutual funds may represent a shift in
household preferences toward holding a smaller portion of their equity portfolio in directly held stocks
and a larger portion in indirect holdings via equity
funds.8
In recent years, the flow of net new investment into
equity funds has been greatest for domestic equity
funds, with a much smaller flow going into international equity funds. From 1996 to 1998, net new
investment in domestic equity funds was split fairly
evenly between capital appreciation funds—which
hold stocks whose return is mainly from capital
gains—and total return funds—which hold stocks
that return a mix of capital gains and dividend income
(chart 4). In 1999, however, the pace of net new flows
into capital appreciation funds picked up substan-
7. See Federal Reserve Board, Flow of Funds Accounts of the
United States (Z.l statistical release), September 2000, table F.100,
p. 16. From 1995 to 1999, households, on net, sold an average of
about $329 billion worth of directly held corporate equities annually.
In the first half of 2000, households sold, on net, $513 billion of
directly held corporate equities, at an annual rate.
8. Indirect equity holdings include holdings through mutual funds
and also through employer-sponsored defined contribution accounts,
personal trust accounts, and annuity accounts at life insurance
companies.
1996
1997
1998
1999
2000
NOTE. Data show the six-month moving average of the monthly percentage
change in the indexes.
tially relative to both the pace of the preceding few
years and the pace of flows into total return funds,
which fell off appreciably. Through August, net new
flows into capital appreciation funds in 2000 were at
a pace more than twice that of 1999, whereas total
return funds experienced net outflows.
Over the same period in which the composition
of equity fund flows was shifting, the relative share
prices of technology firms were booming. From late
1998 until mid-2000, the six-month moving average
of increases in the Nasdaq composite index, which is
dominated by technology firms, was markedly greater
than the increases in the Wilshire 5000 index of
the total stock market (chart 5). Capital appreciation
equity funds are more likely than total return equity
funds to hold the shares of technology companies.9
Thus, households were directing more of their net
new investment into capital appreciation funds, which
hold a greater share of their portfolio in technology
stocks, at the same time the share prices of technology firms were generally outperforming the share
prices of other publicly traded firms.
The volatility of equity prices has also increased
recently (chart 6). Greater equity price volatility,
everything else constant, might be expected to temper risk-averse households' appetite for equity mutual
funds. However, not only did domestic equity fund
flows accelerate through August 2000, but they were
increasingly targeted toward relatively riskier capital
appreciation funds.
Taken together, these developments might suggest
that there is a relationship between equity fund flows
9. Using the most recent data available on mutual fund portfolios
collected by the Morningstar data service, we calculate that, on an
asset-weighted basis, capital appreciation funds hold an average of
about 40 percent of their assets, and total return funds about 20 percent of their assets, in the stocks of technology companies.
800
Federal Reserve Bulletin • December 2000
6. Equity market volatility, January 1996-August 2000
Percent
1996
1997
1998
1999
2000
NOTE. Data show the six-month moving average of intra-day swings in the
S&P 500; swings are calculated as the difference between the intra-day high and
low as a percentage of the intra-day low.
SOURCE. Authors' calculations using data from Standard & Poors.
and equity prices. Such a link would depend on the
role mutual funds play in household finances. Therefore, we turn our attention to the influence of mutual
funds on the level and flow of household assets, the
types of households most likely to hold mutual funds,
and the purposes for which mutual funds are held.
MUTUAL FUNDS AND HOUSEHOLD ASSETS
The share of households' financial assets kept in
mutual funds roughly doubled over the past decade,
approaching 20 percent at the end of 1999; nearly all
the increase was in long-term funds (chart 7). Domestic equity funds accounted for most of the increase
in long-term funds, both because their assets appreciated at a greater rate than most other financial assets
7. Mutual fund assets as a percentage of gross household
financial assets, 1984-99
and because they became the preferred type of fund
for new mutual fund investments.
Net additions to household wealth, as measured by
the U.S. personal saving rate, have declined dramatically over the past fifteen years, even as the popularity of mutual fund investing has grown.10 As a result,
the share of household saving done through mutual
funds has been rising. The share of gross financial
saving—households' acquisition of financial assets,
net of capital gains—allocated to mutual funds rose
from about 15 percent in 1985 to about 70 percent in
1999 (chart 8).11 If this trend continues, mutual funds
will represent an increasing share of households'
financial assets over time, even if the performance
of mutual funds is equivalent to that of households'
other financial assets.
Mutual funds' share of aggregate household financial assets has grown in part because an increasing
percentage of U.S. households are investing in mutual
funds. In June 2000, an estimated 50 million households, or about half of all U.S. households, owned
shares in at least one mutual fund (table l). 12
10. After averaging around 9 percent from 1950 through 1985, the
U.S. personal savings rate has fallen to lower than Vi percent in 2000.
11. The Federal Reserve Board's flow of funds accounts calculate
personal saving in several ways. One measure is households' net
acquisition of financial and housing assets less their increase in
liabilities. Gross financial saving, which excludes the acquisition of
housing assets and liabilities, is the component of this measure of
personal saving that is most relevant to households' mutual fund
decisions.
12. In 1984, fewer than 12 percent of all U.S. households owned
shares in a mutual fund; by 1992, the proportion had grown to
27 percent. See Investment Company Institute, "U.S. Household
Ownership of Mutual Funds in 2000," Fundamentals, vol. 9 (August
2000), p. 1.
8. Mutual fund acquisitions as a percentage
of gross household financial saving, 1984-99
Percent
Percent
NOTE. Data show end-of-year values and include direct and indirect holdings
of mutual funds. Long-term funds include all equity, hybrid, and bond funds and
exclude money market funds.
SOURCE. Flow of funds accounts and the Investment Company Institute.
NOTE. Data show end-of-year values and include direct and indirect acquisitions of mutual funds. Gross household financial saving is defined as the net
acquisition of financial assets over the year; it excludes capital gains and any
increase in liabilities over the year.
SOURCE. Flow of funds accounts and the Investment Company Institute.
Mutual Funds and the U.S. Equity Market
1. U.S. households owning shares in a mutual fund,
by household characteristics, June 2000
Percent
As a proportion
of all U.S. households
As a proportion
of households
owning shares
in mutual funds
1999 income
Less than $25,000
$25,000-$34,999
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
17
37
49
66
77
79
9
11
19
28
14
19
Age of head of household
Younger than 25
25-34
35-44
45-54
55-64
65 or older
23
49
58
59
54
32
2
18
28
25
13
14
All shareholders
49
100
Household
characteristic
SOURCE. Investment Company Institute.
Higher-income households are more likely than
lower-income households to have financial assets,
and they have greater financial asset holdings.13 Thus
they are also more likely to own mutual fund shares.
Nevertheless, mutual funds provide access to financial markets for households at all income levels.
Indeed, almost 40 percent of mutual fund shareholders have an annual household income of less than
$50,000. Investors who have relatively low levels of
income and financial assets generally find investing
directly in stocks and bonds more difficult because of
high minimum investment requirements and higher
fees for small investments. Thus, mutual funds offer
a relatively low cost means of holding a diversified portfolio of financial instruments. And because
lower-income households may be less financially
sophisticated than higher-income households, they
may benefit more from the professional moneymanagement services provided by mutual funds.14
The likelihood of owning shares in a mutual fund
peaks between the ages of 45 and 54, when most
heads of household are working, and declines at later
ages, when a greater proportion have retired. This
pattern may reflect, at least in part, the importance of
mutual funds for retirement saving. Because relatively widespread acceptance of mutual funds as an
13. See Arthur B. Kennickell, Martha Starr-McCluer, and Brian J.
Surette, "Recent Changes in U.S. Family Finances: Results f r o m the
1998 Survey of C o n s u m e r Finances," Federal Reserve
Bulletin,
vol. 86 (January 2000), table 5, pp. 10-11.
14. Dean M. Maki, " P o r t f o l i o Shuffling and Tax R e f o r m , "
National Tax Journal, vol. 49 (September 1996), pp. 3 2 0 - 2 1 , for
example, presents evidence that lower-income households may be less
financially sophisticated than higher-income households.
801
2. Proportion of U.S. households owning shares
in a mutual fund, by household characteristics
and type of fund, June 2000
Percent
Equity
fund
Hybrid
fund
Bond
fund
Money
market
fund
1999 income
Less than $35,000
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
13
33
46
60
68
4
11
15
24
27
6
14
20
28
31
9
26
32
39
44
Age of head of household
Younger than 25
25-34
35-44
45-54
55-64
65 or older
14
33
44
42
37
21
2
10
12
16
15
11
7
12
17
20
17
14
8
23
26
30
29
19
AH shareholders
35
12
16
24
Household
characteristic
SOURCE. Investment Company Institute.
investment option is still a rather recent phenomenon,
this pattern may also reflect generational factors.
Younger generations, which have grown up with a
well-established mutual fund industry, may be more
willing to invest in these funds than older generations, which grew up less familiar with market investments and more likely to rely on bank deposits and
insurance contracts.
Equity funds are the most popular type of mutual
fund, with more than one-third of all U.S. households
owning shares in such a fund (table 2). Indeed, for
each income and age group, more households invest
in equity funds than in hybrid, bond, or money market funds.
The percentage of households that directly or indirectly own stock in publicly traded companies
increased dramatically over the past decade, rising
from fewer than one-third of all households in 1989
3. Proportion of U.S. families holding stock directly
and indirectly, by family income, 1998
Percent
Family income
Less than $10,000
$10,000-$24,999
$25,000-$49,999
$50,000-$99,999
$100,000 or more
All families
...
....
....
....
....
Direct
or indirect
stock holdings
Direct stock
holdings outside
of retirement
accounts'
Memo:
Stock holdings
as a share
of group's
financial assets2
8
25
53
74
91
4
7
18
28
57
25
28
39
49
63
49
19
54
1. Retirement accounts include individual retirement accounts and employersponsored defined contribution pension plans.
2. Includes both direct and indirect stock holdings and is based on families
that have some stock holdings.
SOURCE. Survey of Consumer Finances.
802
Federal Reserve Bulletin • December 2000
to almost half in 1998.15 Across all but the highest
income levels, households are more likely to own
stock indirectly and in retirement accounts than
directly outside of retirement accounts (table 3). In
1998, only 19 percent of households owned stock
directly outside of a retirement account whereas
30 percent owned stock indirectly (often through a
mutual fund) or in a retirement account. For many
households, retirement accounts are an important
point of access to the equity market; 49 percent of all
households owned some type of retirement account
in 1998, up from 35 percent in 1989.16
MUTUAL FUNDS AND RETIREMENT
ASSETS
Over the past two decades, the growth of individual
retirement accounts (IRAs) and a shift from defined
benefit to defined contribution pension plans have
given households considerably more control over the
portfolio allocation of their retirement assets. At the
same time, mutual funds have become an increasingly important component of households' retirement
accounts.
IRAs generally feature tax-deductible annual contributions and tax-free accrual of investment earnings. Once the account holder reaches age 59 V2,
assets withdrawn from the IRA are taxed as ordinary
income; in addition, a tax penalty is usually imposed
on assets withdrawn before that age. Traditional
IRAs were established in 1974, but because they
were available only to workers not covered by an
employer-provided pension, they were not common.17 In 1981, eligibility was extended to all workers and the annual tax-deductible contribution limits
were increased. IRAs subsequently became quite
popular.18 The Tax Reform Act of 1986 retained
universal eligibility and the tax-free accrual of invest15. See Kennickell and others, "Recent Changes in U.S. Family
Finances," table 6, p. 15. A 1999 survey by the Investment Company
Institute and the Securities Industry Association (Equity Ownership in
America, ICI and SLA, 1999, p. 5) found that 48 percent of households
owned stock, a proportion very close to that found in the 1998 Survey
of Consumer Finances.
16. Data for 1998 are from Kennickell and others, "Recent
Changes in U.S. Family Finances," table 5, pp. 10-11; 1989 data are
from Arthur Kennickell and Martha Starr-McCluer, "Changes in U.S.
Family Finances from 1989 to 1992: Evidence from the Survey of
Consumer Finances," Federal Reserve Bulletin, vol. 80 (October
1994), table 5, pp. 868-69.
17. For more discussion of the development and details of IRAs,
see Eric M. Engen, William Gale, and John Karl Scholz, "Do Saving
Incentives Work?" Brookings Papers on Economic Activity, vol. 1
(1994) pp. 85-180, and Investment Company Institute, "IRA Ownership in 2000," Fundamentals, vol. 9 (October 2000).
18. By 1986, annual contributions to IRAs had risen to more than
$35 billion.
4. Distribution of IRA assets by type of institution,
selected years, 1985-99
Percent
Type of institution
Mutual funds
Brokerage accounts
Life insurance companies
Bank and thrift deposits
1985
1990
1995
1999
17
14
9
60
22
28
8
42
37
35
7
20
49
32
9
10
NOTE. Distributions may not sum to 100 percent because of rounding.
SOURCE. Investment Company Institute.
ment earnings for IRAs but restricted the tax deductibility of contributions for higher-income households
that were covered by an employer-provided pension
plan; subsequently, annual contributions to traditional
IRAs dropped substantially.19 Legislation enacted in
1997 introduced Roth IRAs, which permit non-taxdeductible contributions. All distributions from these
accounts are untaxed, assuming that certain early
withdrawal restrictions are not violated. Roth IRAs
have renewed investor interest in IRAs. Several types
of employer-sponsored IRAs are available to selfemployed individuals and employees of small businesses; they are similar to tax-deductible traditional
IRAs but typically have higher contribution limits.20
IRA ownership has grown considerably over the
two decades since the accounts became universally
available. In June 2000, 41 percent of all U.S. households owned at least one type of IRA.21 Of those
households that owned an IRA, 78 percent held a
traditional IRA, 24 percent a Roth IRA, and 17 percent an employer-sponsored IRA.22 As ownership was growing, mutual funds were becoming an
increasingly important institution for the management of IRA assets, holding almost half of those
assets in 1999 (table 4).
Households have also gained greater control over
the investment of their pension assets. Employersponsored pension plans have increasingly shifted
away from traditional defined benefit plans, which
typically do not allow employees to decide how their
19. Annual contributions to traditional IRAs, including both tax
deductible and non-deductible contributions, averaged less than
$11 billion from 1990 through 1998.
20. Simplified employee pension IRAs (SEP IRAs) were created in
1978. SAR-SEP IRAs are a special type of SEP IRA with a salary
reduction feature; the formation of new SAR-SEPs has been prohibited since 1996 but established SAR-SEPs can still be used. SIMPLE
IRAs were introduced in 1996 for small business employers. Keogh
plans, which were established in 1962, are defined contribution pension plans similar to SEP IRAs that can be set up by sole proprietors
and partnerships.
21. Investment Company Institute, "IRA Ownership in 2000,"
p. 1.
22. These numbers sum to more than 100 percent because some
households own more than one type of IRA.
Mutual Funds and the U.S. Equity Market
803
5. Distribution of private pension plan assets by type of plan, selected years, 1975-99
Percent
Type of plan
Defined benefit
Defined contribution
1975
1980
1985
1990
1995
1999
72
28
71
29
66
34
55
45
50
50
45
55
SOURCE. Flow of funds accounts.
plan assets are invested, toward defined contribution
plans, which usually give employees considerable
discretion in the investment of those assets. In 1980,
defined benefit plans held more than 70 percent of
the assets in all private pension funds (table 5). As
defined contribution plans became more popular, their
assets grew, so that they now hold 55 percent of all
private pension assets. This shift in private pension
assets has been important to mutual funds because
defined contribution plans are much more likely to
use mutual funds to manage their assets (table 6).
The percentage of working households (that is,
households with at least one employed adult) that are
covered by a pension and have a defined contribution
plan has also risen (table 7). In 1989, 40 percent of
working households with a pension were covered by
only a defined benefit plan, and another 31 percent
were covered by both a defined benefit and a defined
contribution plan; only 30 percent were covered
solely by a defined contribution plan. By 1998,
57 percent of working households with pension
coverage had only a defined contribution plan, and
another 25 percent were covered by both types of
plans; only 18 percent were covered solely by a
defined benefit plan. As defined contribution plans
became more common, the percentage that were
6. Distribution of financial assets in private defined benefit
and defined contribution pension funds by type of asset,
selected years 1985-99
Percent
Type of asset
1985
1990
1995
1999
Defined benefit funds
Cash'
Bonds
Equities
Mutual funds
Insurance contracts2
Other financial assets
7
32
42
1
10
8
7
39
38
1
8
7
6
32
48
4
5
5
5
26
54
6
5
4
Defined contribution funds
Cash'
Bonds
Equities
Mutual funds
Insurance contracts2
Other financial assets
10
19
39
3
12
16
10
17
36
7
19
12
3
12
40
21
17
7
1
7
44
30
13
5
NOTE. Distributions may not sum to 100 percent because of rounding.
1. Includes currency, insured deposits, and repurchase agreements; does not
include money market mutual funds, which are included with mutual funds.
2. Includes mutual funds held in variable annuities.
SOURCE. Flow of funds accounts.
401(k) plans rose, reaching 78 percent in 1998, making them the most popular type of plan.
Like IRAs, 401(k) plans feature tax-deductible
contributions, tax-free accrual of investment returns,
annual contribution limits, and restrictions on withdrawals.23 Employees who separate from a firm sponsoring a plan before retirement age must pay income
taxes on the withdrawn funds at ordinary rates;
in addition, they also face a tax penalty unless they
roll the funds over into an IRA or another 401(k)
account.24 Unlike IRAs, 401(k) plans are available
only to employees of firms that choose to sponsor the
plans. Employers may also make tax-deductible contributions to employees' accounts, and total contribution limits are generally higher for 401(k) plans
than for IRAs. Also, employers select the investment
options available in 401(k) plans; as a result, the
number of options is typically more limited than in
an IRA. In 1998, the typical 401(k) plan offered six
to nine investment options.25 These options usually
included equity, bond, and money market funds.
More than 70 percent of the plans offered an equity
fund option, making it the most popular option
offered by sponsoring employers.26
23. These plans, which were established in 1978, are named after
section 401(k) of the Internal Revenue Code, which authorizes their
use. Other types of defined contribution plans include 403(b) and 457
plans, which are available to employees of nonprofit institutions and
state and local governments respectively; and thrift plans, which are
available to employees of the federal government. These other types
of plans are similar to 401(k) plans in many respects. See Engen and
others, "Do Saving Incentives Work?" for more discussion of 401(k)
plans.
24. As a consequence, rollovers from 401(k) accounts and other
types of defined contribution pension plan accounts have been an
important source of funds to IRAs in recent years. Forty-six percent of
the owners of traditional IRAs and 13 percent of Roth IRA owners
have in their IRAs assets that were converted from an employersponsored pension plan. See Investment Company Institute, "IRA
Ownership in 2000," pp. 2, 4.
25. The Investment Company Institute reported that the median
number of investment options in 401(k) plans was six, whereas Hewitt
Associates reported that the median number was nine. See Investment
Company Institute, 401(k) Plan Participants: Characteristics, Contributions, and Account Activity (Spring 2000), p. 20; and Hewitt Associates, Trends and Experience in 401(k) Plans (1999), p. 27.
26. See Investment Company Institute, 401(k) Plan Participants,
p. 22. This survey did not make a distinction between mutual funds
and other pooled investment vehicles, such as trusts and separate
accounts.
804
Federal Reserve Bulletin • December 2000
7. Pension coverage for working households, by type of plan, selected years, 1989-98
Percent
Distribution of plans
by type
Households
covered
1989
1992
1995
1998
55
55
54
55
Distribution of defined contribution plans
by type
Defined benefit
only
Defined contribution
only
Both defined benefit
and defined
contribution
401(k)
Other
40
35
23
18
30
37
52
57
31
27
24
25
55
48
65
78
45
52
35
22
NOTE. Distributions may not sum to 100 percent because of rounding.
Working households are those with at least one employed adult.
SOURCE. Survey of Consumer Finances.
retirement accounts. In this view, these households
would be less likely to trade frequently and, in particular, less likely to redeem their equity fund shares
in response to temporary stock-price declines. An
alternative hypothesis is that households switch more
frequently between equity funds and money market
or bond funds because the earnings in retirement
accounts, including capital gains, are not taxed. In
this view, households with equity funds in retirement
accounts would be more likely to trade frequently
and, in particular, more likely to redeem their equity
fund shares in response to stock-price declines.
Testing these hypotheses and determining the overall effect of equity mutual fund investing on stock
prices is an empirical issue. In the next section we
analyze the evidence concerning the relationship
between mutual fund investors' behavior and equity
market developments.
Total retirement assets increased threefold over the
past decade, to almost $13 trillion in 1999 (table 8).27
Mutual funds have played an increasingly important
role in this growth, accounting for almost one-fifth of
total retirement assets in 1999. Moreover, retirement
assets held within mutual funds have risen significantly relative to total mutual fund assets, accounting
for 35 percent of total fund assets in 1999.
Households have chosen to allocate the bulk of the
retirement assets they hold in mutual funds to equities, thus bolstering the total share of mutual fund
assets allocated to equity funds (table 9). In 1999,
73 percent of mutual fund IRA assets and 81 percent
of mutual fund defined contribution pension plan
assets were invested in equity funds.28 Retirement
account assets in mutual funds are much more likely
than non-retirement-account assets in mutual funds to
be devoted to equity investments.
The growing role of retirement assets in households' equity mutual fund holdings might be expected
to affect mutual fund shareholders' investment behavior. One hypothesis is that households take a longerterm perspective with the funds they have invested in
MUTUAL FUNDS AND FINANCIAL MARKETS
Mutual funds hold about 20 percent of the publicly
traded stocks of U.S. corporations. This proportion
not only is much greater than it was a decade ago, but
it also is larger than the proportion of the bond
market held by mutual funds (chart 9).
The growing importance of mutual funds in the
U.S. equity market increases the possibility that
27. Total retirement assets consist of assets in I R A s , private
employer-sponsored pension plans (both defined contribution and
defined benefit plans), federal, state, and local g o v e r n m e n t e m p l o y e e
retirement f u n d s , and annuity reserves at life insurance companies.
28. A b o u t two-thirds of defined contribution pension plan assets
invested in mutual f u n d s c o m e f r o m 401(k) plans; the remainder c o m e
f r o m 403(b), 457, and other defined contribution pension plans.
8. Retirement assets, by type, selected years, 1990-99
Total retirement assets
(trillions of dollars)
Year
1990
1995
1999
Individual
retirement
accounts
All employersponsored
pension plans
Memo:
Mutual fund
retirement assets
as a share of total
retirement assets
(percent)
Individual
retirement
accounts
Employersponsored
defined contribution
pension plans
Memo:
Mutual fund
retirement assets
as a share of total
mutual fund assets
(percent)
.6
1.3
2.5
3.4
5.7
10.2
5
13
19
141
479
1,222
67
439
1,204
19
33
35
SOURCE. Investment Company Institute.
Mutual fund retirement assets
(billions of dollars)
Mutual Funds and the U.S. Equity Market
9.
805
Distribution of mutual f u n d assets within different types of accounts, by type of fund, 1999
Percent
Type of mutual fund account
Domestic equity fund
Foreign equity fund
Hybrid fund
Bond fund
Money market fund
63
73
41
10
8
8
8
8
4
8
5
15
11
6
32
IRA
Defined contribution pension plan
All other mutual fund accounts
SOURCE. Investment Company Institute.
households' decisions to invest new cash in, or
request redemptions from, equity mutual funds significantly affect equity prices. This possibility can
be evaluated by looking at the relationship between
domestic equity fund flows and equity prices. Net
new flows into domestic equity funds as a percentage
of the value of the U.S. stock market have tended to
increase over the past fifteen years (chart 10).29 The
monthly percent change in the Wilshire 5000 index
of stock prices over the same period shows that while
equity fund flows were becoming more stable, equity
prices were becoming more volatile (chart ll). 30 A
related development is that the response of mutual
fund investors to large market declines—specifically,
the equity price declines in October 1987, August
1990, and August 1998—has become progressively
smaller.
In October 1987, when the Wilshire index fell
more than 20 percent (the worst monthly perfor29. Average monthly domestic equity fund inflows were 0.02 percent of the market's value over the period 1985-89, rose to 0.10 percent over 1990-94, and rose further, to 0.14 percent, over 1995-99.
30. The coefficient of variation for domestic equity fund inflows
(defined as the standard deviation of fund flows divided by the mean
of fund flows) was 2.9 over the period 1985-89, dropped to 0.6 over
1990-94, and fell further, to 0.4, over 1995-99.
9.
Percentage of total outstanding securities
held by mutual funds, 1984:Q1-2000:Q2
Percent
1984
1986
1988
1990
1992
1994
1996
1998
2000
NOTE. Data exclude variable annuities. Total outstanding equities include all
publicly traded domestic securities as well as those foreign equities owned by
U.S. nationals, and total outstanding bonds include all publicly traded corporate,
Treasury, agency, and municipal bonds held by households and foreign bonds
held by U.S. nationals.
SOURCE. Flow of funds accounts.
mance for the stock market since World War II),
domestic equity funds experienced net outflows of
more than $6 billion. This outflow amounted to
0.2 percent of the total value of the stock market, or
just under 3 percent of domestic equity fund assets;
this was the largest monthly outflow as a percentage
of fund assets to date. Indeed, domestic equity funds
experienced outflows in fourteen of the sixteen
months following the October crash, outflows that
summed to a net total of more than $18 billion. All
told, mutual fund shareholders withdrew more than
11 percent of domestic equity fund assets in the
aftermath of the October 1987 episode.31
The next large decline in stock prices occurred in
August 1990, when the Wilshire index fell about
10 percent in the wake of concerns about the Gulf
War in Kuwait and Iraq. In that month, mutual fund
shareholders withdrew about %2Vi billion from
domestic equity funds, which amounted to less than
0.1 percent of the value of the stock market, or about
1 percent of domestic equity fund assets. Outflows
from August through September 1990 were only
$3 billion, or a little more than 1 percent of fund
assets. Although the Wilshire index fell half as far in
August 1990 as it had in October 1987, fund withdrawals during the 1990 episode were less than half
those during the 1987 episode.
Domestic equity funds did not experience a net
monthly outflow again until August 1998, when the
Wilshire index declined 15 percent in the midst of
the Asian financial market crisis and Russian bond
defaults. Shareholders in domestic equity funds
requested net redemptions of about $61/2 billion in
that month, an amount equal to about 0.3 percent
of total domestic equity fund assets. Domestic equity
fund inflows resumed the following month. Thus,
redemptions in August 1998 were substantially
31. John Rea and Richard Marcis ("Mutual Fund Shareholder
Activity during U.S. Stock Market Cycles," Investment Company
Institute Perspective, vol. 2, March 1996, pp. 1-16) show that during
the bear markets in the 1970s, equity fund shareholders were sensitive
to prolonged share price declines. Equity funds had outflows in almost
every month between 1971 and 1982 as the stock market waded
through three periods of price contraction, including the long bear
market over 1973 and 1974, when the S&P 500 index declined
48 percent.
806
Federal Reserve Bulletin • December 2000
10. Net new cash flows to domestic equity mutual funds as a percentage of the value of the U.S. stock market,
January 1984-August 2000
Percent
.15
I
August
.15
1984
1985
1986
1987
1988
1989
1990
1991
1992
NOTE. Data show total net flows, excluding reinvested dividends, during the
indicated month as a percentage of the total market capitalization of all stocks
traded on the NYSE, AMEX, and Nasdaq exchanges at the end of the preceding
month.
1993
1994
1995
1996
1997
1998
1999
2000
SOURCE. Authors' calculations using data from the Investment Company
Institute and U.S. stock exchanges.
11. Change in the Wilshire 5000 index, January 1984-August 2000
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
NOTE. Data show the percent change in the index from the last business day
of the preceding month to the last business day of the month shown.
smaller, as a percentage of assets, than those in
August 1990, even though the stock price decline in
1998 was greater.
Although investors have withdrawn money from
domestic equity funds during severe market declines,
mutual fund managers have not necessarily had
to sell stocks immediately to cover redemptions. In
addition to holding stocks, equity funds also hold
safe, liquid money market assets, usually referred to
as "cash." The proportion of a mutual fund's total
assets held in cash is known as the cash ratio. To the
extent that net outflows can be met by cash on hand,
they need not translate into forced sales of equities by
fund managers. The asset-weighted mean cash ratio
for all domestic equity funds has generally been
trending down and recently stood a little above 4 percent (chart 12). Despite the decline, funds have had,
on average, more than enough cash on hand to cover
monthly redemptions throughout the past fifteen
years. Moreover, the frequency and magnitude of net
redemptions from equity funds, as a percentage of
assets, have diminished over time.32
A fund's cash holdings are not its only means of
meeting a short-term episode of redemptions without
selling some of its equity portfolio. Many families of
mutual funds now have committed lines of credit to
help meet unexpectedly large temporary outflows.33
Also, some large fund families have been allowed by
the Securities and Exchange Commission to borrow
between funds. Thus, an outflow from an equity fund,
for example, could be covered by borrowing at a fair
32. On average, net redemption rates have been far below equity
funds' cash ratios on a monthly basis; however, some individual funds
may have needed to sell some of their equity portfolio to meet
redemption requests.
33. Mutual fund credit lines are typically used for short-term
adjustments. It is possible for funds to use leverage as part of their
long-term portfolio management, but they must have at least $3 in
assets for each $1 they borrow. In practice, very few mutual funds use
long-term leverage.
Mutual Funds and the U.S. Equity Market
807
12. Domestic equity fund cash holdings and outflows as a percentage of fund assets, January 1984-August 2000
Percent
12
10
Cash holdings
F u n d outflows
October
August
1
1.
ilnL.i . 1 1
i l l
1984
1985
1986
ihilil i l l li i . I il. 1
1987
1989
1990
1991
1988
I
1992
NOTE. Cash holdings are liquid assets as a percentage of total fund assets.
Fund outflows are net for the month; months with net inflows are not shown.
market rate from another fund in the family that is
receiving inflows—say, a bond or money fund.
Credit lines and fund-family borrowing agreements can serve as additional buffers that, along with
those traditionally provided by funds' liquid assets,
help equity fund managers avoid having to sell equities in a slumping market. However, temporary
periods of sharp equity price declines may not be the
only time equity fund shareholders' behavior could
have affected equity prices. Equity fund flows may
have had more subtle effects on equity prices—
effects that may have been small and that may have
appeared only with a delay. Evidence of these effects
can be sought by calculating correlation coefficients
that measure the strength and direction of the
co-movement of equity mutual fund flows and
changes in equity prices over time. Analysis of these
correlation coefficients can give some indication of
whether equity mutual fund flows cause changes in
equity market prices, or the other way around, or
neither. (A more detailed statistical treatment of this
issue is given in the appendix.)
As would be expected, given that cash has flowed
out of domestic equity funds in months with steep
stock market declines, fund flows and stock price
changes have a positive contemporaneous correlation, averaging about 0.6 for the period since 1984
(chart 13, upper panel). This contemporaneous correlation is statistically significant, although it has
declined over time, from 0.7 in the mid-1980s to
below 0.25 more recently. Thus, as an increasing proportion of equity mutual funds were being held in
retirement accounts, flows to equity mutual funds
were becoming less sensitive to market performance.
This positive contemporaneous correlation says
little about the direction of causality (if any) between
domestic equity fund flows and equity price changes.
Three causal relationships are possible: price changes
1
1993
1
1994
1
1995
1
1996
1
1997
August
. i
1
1
1998
1999
2000
-
2
SOURCE. Investment Company Institute.
could cause flows, flows could cause price changes,
or both flows and price changes could react to new
information that affects the market's perceived value
of stocks. Exploring the alternative hypotheses associated with these relationships requires an examination of the effect of lagged price changes on current
flows and of lagged flows on current price changes.
The feedback trading hypothesis provides one possible explanation for a positive correlation between
domestic equity fund flows and equity price changes.
Mutual fund investors may be feedback traders, that
is, they may follow the stock market, so that an
increase in equity prices one month would be followed by a positive flow the next month. However,
the average correlation between current flows and
price changes lagged one month has been essentially
zero since 1984 (chart 13, middle panel). Thus, at
least when the analysis is based on monthly data, the
feedback trading hypothesis is not supported.
A second hypothesis—the price pressure
hypothesis—holds that the contemporaneous correlation arises because flows exert upward pressure on
stock prices for reasons other than changes in available information that affect the market's valuation of
stocks. After such an increase, equity prices would
decline as they return to a level more consistent with
the general market perception of the appropriate level
of stock valuation. This hypothesis can be tested by
calculating the correlation between current price
changes and lagged flows (that is, the effect of flows
one month on price changes the next). Consistent
with this hypothesis, the correlation coefficient is
negative; the correlation is weak, however, averaging
only about -0.2 (chart 13, lower panel), and is not
statistically significant.
Finally, the information hypothesis maintains that
equity mutual fund investors, like other investors in
the equity market, merely trade on the basis of new
808
Federal Reserve Bulletin • December 2000
information that the market uses to value equities. If
this hypothesis is correct, then stock price declines
should not follow equity fund inflows. The finding
that equity fund flows and stock price changes are
significantly correlated only contemporaneously is
consistent with this hypothesis. Econometric analysis
(reported in the appendix) generally confirms the
evidence suggested by the correlation coefficients.
Overall, there is little evidence that mutual fund
investors have been a destabilizing force in equity
markets over the past fifteen years.
13. Correlation between domestic equity mutual
fund flows and stock market price changes,
January 1985-August 2000
Correlation coefficient
Current flows and current price c h a n g e s
Current flows and lagged price c h a n g e s
—
.50
CONCLUSION
Mutual funds have grown rapidly over the past
decade, both in absolute terms and as a percentage of
household assets, in large part because of the growth
of retirement saving accounts. In defined contribution
pension plans and individual retirement accounts,
households directly control the allocation of their
retirement assets and often use equity mutual funds
as the primary vehicle for investing them.
There is little evidence that over the past decade or
so mutual fund investors have traded in a manner that
has significantly influenced stock prices independently of the rest of the market, or that mutual fund
investors have been entering and exiting equity
funds merely on the basis of past price changes in the
stock market. Equity fund investors appear to have
behaved like other investors in the equity market and
simply traded on the basis of new information that
the market uses to value equities. Thus, there is little
indication that mutual fund investors have in recent
history been a destabilizing force in the equity market
even as mutual funds were becoming larger players
in the market. Further, the evidence suggests that
fund shareholders who held retirement accounts were
generally focused on investing for the long term
rather than using these tax-sheltered accounts for
active trading, because even as retirement assets were
becoming an increasingly larger share of equity fund
assets, fund flows were becoming less sensitive to
stock price changes.
APPENDIX: ECONOMETRIC ANALYSIS
OF EQUITY MUTUAL FUND FLOWS AND
STOCK MARKET PRICE CHANGES
L a g g e d flows and current price c h a n g e s
1 I 1 I I 1 I I I I I I I I I I I I
1984
1986
1988
1990
1992
1994
1996
1998
2000
NOTE. Data show the twelve-month moving average of the correlation
between (1) net new cash flows to domestic equity funds as a percentage of
the value of the U.S. stock market and (2) the percentage change in the
Wilshire 5000 index from the end of the preceding month to the end of the
indicated month. Correlation coefficients are calculated using data for the twelve
months preceding the indicated month. Monthly values for stock market capitalization are smoothed to conform to the market's long-run growth rate.
SOURCE. Authors' calculations.
Correlation coefficients and other simple statistics
can provide only limited insight into the behavior of
mutual fund investors. In this appendix, we investigate the relationship between equity mutual fund
flows and equity market price changes using regression analysis. We find no compelling evidence that
fund flows cause stock price changes or that stock
market price changes cause fund flows.
As noted in the main text, more cash tends to flow
into domestic equity mutual funds in months when
the stock market does well than in months when
it does poorly. The most likely explanations for this
contemporaneous correlation are the price pressure
hypothesis and the information hypothesis.
A related issue is whether or not mutual fund
investors are following a feedback strategy, so that
equity fund inflows react to past values of stock
Mutual Funds and the U.S. Equity Market
market price changes. Several fund-level studies have
found that mutual fund investors transfer money into
individual mutual funds that are doing well and out
of individual funds that are doing poorly.34 This
finding is not evidence, however, that in the aggregate, mutual fund investors choose to invest in equity
funds as a whole (as opposed to, say, money market
funds) on the basis of previous months' equity market price changes. If mutual fund investors are
indeed feedback traders, we would be less likely to
believe the information hypothesis, which requires
that mutual fund investors react mainly to new information about stocks.
We find evidence that strongly favors the information hypothesis and are able to reject the price pressure hypothesis in most cases. We can consistently
reject the feedback trading hypothesis. On balance,
our results indicate that flows to equity mutual
funds do not generally push stock prices above the
level determined by other market participants.35
Econometric Modeling of Flows
Our analysis concentrates on net new cash flows to
domestic equity mutual funds and percent changes
in domestic equity market prices. We use data on the
monthly aggregate flow of new cash, excluding reinvested dividends, to all domestic equity funds for
January 1984 through August 2000 collected by
the Investment Company Institute. Our measure of
equity price changes is the percent change in the
Wilshire 5000 index of stocks from the last business
day of one month to the last business day of the next
month.
To test our hypotheses, we construct the following
normalized fund flow variable:
34. Richard A. Ippolito, "Consumer Reaction to Measures of Poor
Quality: Evidence from the Mutual Fund Industry," Journal of Law
and Economics, vol. 35 (April 1992), pp. 45-70; Judith Chevalier and
Glenn Ellison, "Risk Taking by Mutual Funds as a Response to
Incentives," Journal of Political Economy, vol. 105 (December 1997),
pp. 1167-200; and Roger M. Edelen, "Investor Flows and the
Assessed Performance of Open-End Mutual Funds," Journal of
Financial Economics, vol. 53 (September 1999), pp. 439-66.
35. Our analysis follows that by Vincent A. Warther, "Aggregate
Mutual Fund Flows and Security Returns," Journal of Financial
Economics, vol. 39 (October 1995), pp. 209-35, and "Has the Rise of
Mutual Funds Increased Market Instability?" in Robert Litan and
A. Santomero, eds., Brookings-Wharton Papers on Financial Services (Brookings Press, 1998), pp. 239-80. See also Mark Grinblatt,
Sheridan Titman, and Russ Wermers, "Momentum Investment Strategies, Portfolio Performance, and Herding: A Study of Mutual Fund
Behavior," American Economic Review, vol. 85 (December 1995),
pp. 1088-105; and L. Franklin Fant, "Investment Behavior of Mutual
Fund Shareholders: The Evidence from Aggregate Fund Flows,"
Journal of Financial Markets, vol. 2 (1999), pp. 391^102.
fit) = 100
809
F(t)
, * = ! , . . . , 200.
A0H + g)^
Here, t - 1 refers to the first month in the sample
period (January 1984) and t = 200 refers to the last
month in the period (August 2000). Fit) is the dollar
value of net new cash flows into domestic equity
funds, A0 is the dollar value of the total U.S. stock
market capitalization (NYSE + AMEX + Nasdaq) at
the beginning of the sample period, and g equals
0.01134 (the average monthly rate of growth of the
stock market over the period). Thus fit) can be
thought of as fund flows as a percentage of smoothed
stock market capitalization. Deflating flows Fit) by
the actual beginning-of-period stock market capitalization would introduce a direct effect of stock market
price changes on flows, as the stock market grows
and shrinks with price changes. This direct effect
would bias downward any estimates of the effect of
lagged price changes on current flows because flows
would appear smaller (as a percentage of the stock
market) precisely when the stock market does well.
Therefore, to avoid this bias we normalize fund
flows by the smoothed, not the actual, stock market
capitalization.
To test the competing price pressure and information hypotheses, one might run the following
regressions:
(la) fit) = kb + b0Rit) + bxRit - 1) + • • • + b6Rit - 6)
(lb) Rit) = kc + cjit) + cjit-
1) + . . . 4- cjit - 6).
Here, fit) is the normalized flow variable explained
above, Rit) is the monthly percent change in the
Wilshire 5000 index of stocks, and kb and kc are the
constant terms in the regression. The regression
coefficient estimates for equations la and lb are
shown in table A. 1. They appear to support the price
pressure hypothesis, as current price changes are
negatively correlated with lagged flows. They also
seem to support the feedback trading hypothesis,
because current flows are positively correlated with
lagged price changes.
These results are almost completely driven by
misspecification. Suppose that there is a slow-moving
trend in mutual fund flows (as is strongly suggested
by chart 10), so that flows in a given month are made
up of this trend and the effect of that month's information lit). Assume that the trend component of
flows can be captured by a simple autoregressive
process with six months of lags. Under the information hypothesis, price changes and flows (correcting
810
Federal Reserve Bulletin • December 2000
A. 1. Regressions of flows on price changes
and price changes on flows
K + c0kd — kh
c0d2 = hj
Independent variable
Coefficient
cx + c0dx = 0.
Flows on price changes
Constant
Price change
Price change
Price change
Price change
Price change
Price change
Price change
/?-squared
t
tttttt-
.04154***
.00750***
.00214**
.00277***
.00290***
.00311***
.00259***
.00201*
.33
1
2
3
4
5
6
Price changes on flows
Constant
Flows t
Flows t - 1
Flows t - 2
Flows t — 3
Flows t — 4
Flows / - 5
Flows t - 6
/f-squared
.82**
70.58***
-24.79***
-23.15***
-18.98***
-5.82
7.64
-.09
.57
NOTE. Flows are defined as monthly net new cash flows to domestic equity
mutual funds as a percentage of smoothed stock market capitalization (see
appendix text for details). Price change is defined as the monthly percent change
in the Wilshire 5000 index. For the dependent variable, regressions use monthly
data from July 1984 through August 2000.
* Significant at 10 percent level.
** Significant at 5 percent level.
*** significant at 1 percent level.
for their trend) are driven only by information I(t)
each month. The information hypothesis model is
(2a) f{t) = kd + d,I(t) + dj(t-1)
Our hypothetical analyst would falsely conclude
that flows push up current price changes (because c0
would be positive) but depress future price changes
(because cl would be negative). The same sort of
analysis can be applied to regressions of the form in
equation la to show that the analyst would, falsely,
conclude that investors were following a feedback
trading strategy. Thus the results in table A.l cannot
be taken as evidence of the price pressure hypothesis
because they are entirely consistent with the information hypothesis.
If the true model were actually given by the information hypothesis, specified by equations 2a and 2b,
the correct estimation strategy would be to proxy this
month's information /(f), which is unobserved, by
observed price changes, R(t), while at the same time
controlling for the trend in mutual fund flows. The
results of these regressions are shown in table A.2.
Note that the effect of contemporaneous price
changes declines somewhat from the first half of the
sample period to the second. This result is consistent
with the correlation coefficient shown in chart 13 (top
panel), which trends downward over time.
+ . . . 4- dj{t - 6)
Granger Causality Tests
(2b) R(t) = kh + hjl(t).
An analyst who regresses price changes on current
and lagged flows, as in equation lb, when the true
model is given by equations 2a and 2b, would estimate coefficients that are in fact spurious. Assume for
convenience that the analyst uses only one lag of
flows in the regression, estimating
R(t) = kc + C0f(t) +
Although the results in tables A.l and A.2 are consistent with the information hypothesis, they do not
rule out the price pressure hypothesis. We now test
directly the proposition that flows to equity mutual
A.2.
Regressions of flows on price changes and lagged flows
Coefficient
Clf(t-1).
variable
Assume further that only one lag is needed, so that
d2 = d3 = . . . = d6 = 0. Substituting for f(t) from
equation 2a, the regression equation above can be
rewritten as
R(t) = [kc + c0kd] + [c0d2]I(t) + [Cl + cMfit
- 1).
Comparing this relation with the true relation, given
in equation 2b, we see that, with enough data, the
parameter estimates kc, c0, and c, will be related to the
true parameters kh and hj by the system of equations
Constant
Price change t ..
Flows t - 1
Flows/-2 ....
Flows t - 3
Flows t - 4
Flows t - 5
Flows t - 6
i?-squared
January 1984August 2000
January 1984May 1992
June 1992August 2000
-.0001
.0078***
.3688***
.2849***
.2010***
.0669
-.0149
-.0294
.79
-.0036
.0084***
.2200***
.2817***
.2533***
.0514
.0519
.0116
.77
.0285***
.0071***
.5079***
.2201***
.0692
.1344
-.1890**
-.1000
.61
NOTE. The dependent variable is the monthly net new cash flow to domestic
equity mutual funds as a percentage of smoothed market capitalization (see
appendix text for details). Price change is defined as the monthly percent change
in the Wilshire 5000 index.
** Significant at 5 percent level.
*** Significant at 1 percent level.
Mutual Funds and the U.S. Equity Market
funds statistically cause equity market price changes
using Granger causality tests. If flows can help predict equity price changes, they would be said to
Granger-cause equity market price changes. Our
goal, in essence, is to test statistically whether the
negative correlation coefficient between current flows
and future price changes, shown in chart 13 (lower
panel), is statistically significant. The Granger test
requires estimating two regression equations: an
unrestricted equation (UR) that regresses current
price changes on lagged price changes and lagged
flows and a restricted equation (R) that regresses
current price changes on lagged price changes only,
excluding lagged flows. We then use an F-test to test
the hypothesis that the coefficients on the lagged
flows in the unrestricted equation are jointly equal to
zero. Intuitively, if excluding flows affects our ability
to explain price changes, then flows must determine,
at least in part, price changes. More formally, the
equations to fit are
n
(UR)
m
R(t) = x0 +£XiR(t - i) +Xyjf(t ~ j)
/=i
(R)
j=i
R(t)=x*0+^R(t-i).
i= 1
The test results are sensitive to the number of lags
(the parameters m and n) used and the time periods
over which the equations are estimated. In the upper
panel of table A.3 are the results of using six months
and twelve months of lags (for both flows and price
changes) over the entire sample period as well as
over the first and second halves of the period. The
table gives the F-statistic for the hypothesis that yx =
y2 = . . . = yn = 0, that is, that flows do not cause
A.3.
811
price changes. Also given is the long-term effect of
flows on price changes, which is simply the sum of
the coefficients yt in the unrestricted equation.
We can reject the hypothesis that flows cause price
changes for all but one specification, the specification
with six lags estimated over the earlier half of the
sample period. Because mutual funds were a much
smaller part of the equity market in this earlier period,
this single result seems somewhat anomalous and
cannot be taken as strong evidence for the price
pressure hypothesis. Further, tests using the second
half of the period, when mutual funds were a larger
part of the equity market, indicate that flows do
not cause price changes. Consistent with chart 13
(lower panel), the long-term effects are negative,
although, again, in most cases they are not statistically different from zero. These results do not provide compelling support for the price pressure
hypothesis. Of course, the price pressure effect may
play out quite rapidly, with prices rising and then
falling within a matter of days, so that with our
monthly data we are unable to detect it. However,
such a scenario cannot explain the strong simultaneous correlation between flows and price changes
that we do observe in the data. Our results indicate
that this monthly correlation cannot be ascribed to the
price pressure hypothesis.
In the same way that we tested whether flows
caused price changes, we can test whether price
changes cause flows; that is, we can test the proposition that households are following, in the aggregate,
a feedback trader strategy. The lower panel of
table A.3 displays the results of Granger causality
tests of the effect of price changes on flows. For all
specifications we reject the hypothesis that flows
cause price changes. Thus, the evidence does not
Granger causality tests of the effect of flows on price changes and price changes on flows
January 1984-August 2000
January 1984-May 1992
June 1992-August 2000
Number of lags
F-statistic
Effect
F-statistic
Effect
F-statistic
Effect
Flows on price changes
Six
Twelve
.97
.48
-3.33
-1.49
2.53**
1.18
-16.48
-10.63
1.42
1.13
-14.81
-21.45
Price changes on flows
Six
Twelve
.74
1.06
-.0035
-.0013
NOTE. The upper panel gives the F-statistic for the hypothesis test that flows
do not cause price changes and the sum of the computed coefficients of the
effect of flows on price changes; the lower panel gives the F-statistic for the
hypothesis test that price changes do not cause flows and the sum of the
computed coefficients of the effect of price changes on flows. Flows are defined
1.65
1.21
-.0064
-.0084
.79
1.06
.0001
.0072
as monthly net new cash flows to domestic equity mutual funds as a percentage
of smoothed stock market capitalization (see appendix text for details). Price
change is defined as the monthly percent change in the Wilshire 5000 index.
** Hypothesis rejected at the 5 percent confidence level.
812
Federal Reserve Bulletin • December 2000
suggest that households are, in the aggregate, following a feedback trader strategy.
Financial commentators often claim that equity
mutual funds play a large role in the domestic stock
market. Some claim that the long bull market of the
1990s was driven by cash flows to mutual funds,
while others claim, to the contrary, that cash flows to
equity funds drive up the stock market only temporarily, after which the market gradually readjusts to
its general market value. Underlying both views is
the idea that mutual fund investors are somehow less
savvy or less informed about equity markets than
other investors (for example, institutional investors or
individuals who own stocks directly). Our results do
not support this idea. We find that mutual fund investors do not lag the market; that is, they do not invest
more in equity funds in the months following a
particularly positive performance by the market. Nor
do we find evidence that equity fund flows statistically cause market price changes, by either temporarily or permanently pushing stock prices above
their market values. We conclude that mutual fund
investors react to incoming news and other factors
that influence the valuations of stocks in a manner
similar to that of other market participants.
•
813
Treasury and Federal Reserve
Foreign Exchange Operations
This report, presented by Peter R. Fisher, Executive
Vice President, Federal Reserve Bank of New York,
and Manager, System Open Market Account, describes the foreign exchange operations of the U.S.
Department of the Treasury and the Federal Reserve
System for the period from July 2000 through September 2l)00. Ryan Faulkner was primarily responsible for preparing the report.
During the third quarter, the dollar appreciated
8.2 percent against the euro and 2.0 percent against
the yen. On a trade-weighted basis, the dollar ended
the quarter 4.1 percent stronger against the currencies
of the United States' major trading partners. In addition, the euro depreciated 5.5 percent against the yen
over the course of the third quarter. The euro's value
during the first half of the quarter was largely influenced by market expectations of a continued net
outflow of capital from the euro area, especially
related to merger and acquisition activity. During the
first week of September, the euro's decline accelerated, prompted by reports of global portfolio reallocations, and contributed to a sharp increase in currency
market volatility.
On September 22, the U.S. monetary authorities
intervened in the foreign exchange markets, purchasing 1.5 billion euros against the dollar. The
1. Trade-weighted G-3 currencies, 2000:Q3
Index, July 1 = 100
July
Aug.
Sept.
2000
NOTE. In this and the charts that follow, the data are for business days except
as noted.
SOURCE. Bloomberg L.P.
operation, which was divided evenly between the
U.S. Treasury Department's Exchange Stabilization
Fund and the Federal Reserve System, was coordinated with the European Central Bank (ECB) and
the monetary authorities of Japan, Canada, and the
United Kingdom.
CURRENCY MOVEMENTS
DOMINATED
BY EURO WEAKNESS DURING THE FIRST
OF THE QUARTER
HALF
During the first half of the quarter, the euro weakened
against the major currencies, having depreciated
4.3 percent against the dollar and 1.5 percent against
the yen, and neared the lows reached in May 2000.
The depreciation of the euro was widely attributed to
market expectations of continued cross-border investment flows out of the euro area that were related to
merger and acquisition announcements made in July
and August. According to the ECB, the euro area had
net outflows of direct investment and portfolio investment in July 2000 of €11.3 billion and €5.9 billion
respectively.
The euro's depreciation during the first half of the
quarter also coincided with uncertainty regarding the
growth prospects for the euro area and the perceived
risk that inflationary pressures were growing. In addition, weaker-than-expected German business confidence in June and purchasing manager surveys in
July suggested to some market participants that the
pace of growth in the euro area was moderating.
However, higher-than-expected euro-area inflation
for June and July solidified expectations that the
ECB would tighten monetary policy, with the implied
yield on the three-month December euribor futures
contract having risen 18 basis points, to a yield of
5.31 percent during the first half of the quarter. Rising
import prices and higher oil prices were cited as the
main factors behind the jump in headline inflation.
In the United States, economic data releases during
the first half of the quarter supported market expectations that the pace of U.S. economic growth was
moderating. Among these data were the weaker-thanexpected surveys for June and July from the National
814
Federal Reserve Bulletin • December 2000
2. Yield implied by the December euribor contract, 2000:Q3
Association of Purchasing Managers, the Chicago
Purchasing Managers Index survey for July, and construction spending for June. During the first half of
the quarter, market participants reduced their expectations for additional tightening of U.S. monetary policy before year-end amid signs of subdued inflation.
Over this period, the implied yield on the December
federal funds futures contract declined 26 basis
points, to 6.60 percent, and ended the quarter at
6.49 percent. Signs that growth could be moderating
also led many market participants to lower U.S. earnings forecasts for the remainder of the year. U.S.
equities were mixed during the first half of the quarter but then declined during the second half. On
balance, the S&P 500 and the Nasdaq composite
equity indexes fell 1.2 and 7.4 percent, respectively,
during the third quarter.
Short-dated dollar-euro interest rate differentials
narrowed during the first half of the quarter but
remained in favor of the dollar. The spread of the
two-year dollar swap rate over the two-year euro
swap rate fell from 190 to 135 basis points during the
quarter, extending the narrowing that began in early
May when the spread was 245 basis points. The
effect of narrowing interest rate differentials on the
euro appeared to be overshadowed by the market's
attention to potential capital flows out of the euro
area.
Currency option prices during the first half of the
quarter indicated that market anxiety remained relatively low. During July and August, implied volatilities for one-month options on the euro-dollar and
euro-yen exchange rate pairs reached their lowest
points of the year, averaging 11.2 and 13.4 percent,
respectively, over these two months. In addition,
prices of euro-dollar risk reversals indicated continued demand for protection against euro appreciation,
with one-month euro calls being favored over onemonth euro puts.
In comparison with the euro, the yen traded in a
relatively narrow range against the dollar, between
¥105 and ¥110, in response to mixed evidence
regarding Japanese economic conditions, strength
in local equity markets, and speculation about the
timing of an end to the Bank of Japan's near-zero
interest rate policy. In July, the dollar was supported
by diminishing expectations of a near-term increase
in Japanese rates after the release of mixed economic
data and several corporate bankruptcy announcements. Commentary from Bank of Japan officials and
signs of improving economic conditions in August
once again raised market expectations for an end to
the near-zero interest rate policy. On August 11, the
Bank of Japan raised its target for the overnight call
rate to 0.25 percent. The reaction in the currency
markets was relatively mild, and the yen weakened
modestly against the dollar and euro amid specula-
3. Implied yields on U.S. interest rate futures contracts,
2000:Q3
4. Yields on short-term Japanese fixed-income securities,
2000:Q3
—
July
Aug.
2000
5.4
Sept.
SOURCE. Bloomberg L.P.
Percent
—
—
7.1
—
6.9
—
6.7
—
6.5
December eurodollar contract
V—
December federal funds futures contract
1
July
_J
1
Aug.
Sept.
July
SOURCE. Bloomberg L.P.
Aug.
2000
2000
SOURCE. Bloomberg L.P.
Sept.
Treasury and Federal Reserve Foreign Exchange Operations
815
5. Foreign inflows into Japanese equities and the dollar-yen spot exchange rate, 2000:Q3
Billions of yen
Yen per dollar
C a p i t a l inflows
—
______
w
II
300
—
1
112
Yen spot rate
-
—
1
1
July
NOTE. Capital inflows are weekly data.
1
i
103
1
Sept.
Aug.
2000
SOURCE. Bloomberg L.P.
{
tion about the effect of higher rates on the Japanese
economy.
During the second half of August, the yen strengthened 2.3 and 5.1 percent against the dollar and euro,
respectively, amid gains in Japanese equities and
signs of continued economic recovery. Although
the consumer price index data released in August
renewed deflationary concerns, other reports on economic activity, such as June data on machine orders,
increased speculation that the Japanese economy continued to recover. The yen was also supported by
investor interest in buying Japanese shares, coincident with a 4.4 percent rise in the Nikkei over the last
two weeks of August. According to the Ministry of
Finance, foreign investors bought ¥350 billion in
Japanese stocks in August, marking the first time that
they had been net purchasers of Japanese shares since
March 2000.
SHARP RISE OF CURRENCY MARKET
VOLATILITY IN SEPTEMBER
During the first two weeks of September, currency
market volatility increased sharply in response to
reported portfolio reallocations. In addition to
expected outflows from the euro area, the repositioning of Japanese firms in anticipation of the September 30 fiscal-half year-end appeared to have been a
major factor behind the sharp currency fluctuations.
The depreciation of the euro reportedly prompted
Japanese institutional investors who had acquired
euro assets at higher exchange rates to sell euros
against the yen to hedge or liquidate eurodenominated debt holdings. As investors scaled back
their positions, movements in the currency market
were exacerbated. In the week after the ECB's decision to raise its main policy rate 25 basis points, to
4.5 percent on August 31, the euro depreciated
2.8 percent against the yen and 1.9 percent against
the dollar.
Market nervousness over additional bouts of volatility increased as the euro reached new historic lows
against the major currencies, raising market perceptions of the possibility of official intervention in
support of the euro. Implied volatility for one-month
options on the euro-yen exchange pair jumped
1.5 percentage points in the first week of September,
to 18.2 percent, its highest level since April 2000.
Implied volatility for options on the euro-dollar
exchange pair also increased, with the one-month
tenor reaching 14.4 percent on September 8.
Pressure on other currencies and capital markets
also emerged, reflecting a decline in investor risk
appetite. In addition to the Japanese repatriation
flows, higher oil prices and signs of slower global
growth also contributed to uncertainty in the currency
markets, as speculation rose about the effect that
higher oil prices would have on countries' monetary
6. The euro against the dollar: spot exchange rate
and option implied volatility, 2000:Q3
Dollars per euro
%
93
Percent
Spot exchange rate
—
\ /
18
V
K
)
One-month
volatility
.90
1
.87
—
/ ^ ^ O v ^ v
A
V s T ^
1
1
July
1
Aug.
2000
SOURCE. Bloomberg L.P.
V 16
—
14
—
12
1
Sept.
816
Federal Reserve Bulletin • December 2000
7. The euro against the yen: spot exchange rate
and option implied volatility, 2000:Q3
Percent
Yen per euro
Spot exchange rate
102
18
V 16
99
—
96
t—
—
14
93
—
—
12
One-month
volatility
1
July
1
Aug.
2000
^
1
Sept.
SOURCE. Bloomberg L.P.
policies and the ability of some countries to attract
international capital. Among the currencies affected
were the New Zealand dollar, the Australian dollar,
the South African rand, and the Brazilian real, which
depreciated 13.1, 9.1, 6.3, and 2.0 percent, respectively, against the U.S. dollar over the quarter.
COORDINATED INTERVENTION TO PURCHASE
EUROS IN THE MARKET
On September 22, the Federal Reserve Bank of New
York (FRBNY) entered the market to purchase euros
against dollars for the U.S. monetary authorities in a
coordinated intervention operation initiated by the
ECB. The Japanese, British, and Canadian monetary
authorities also participated in the intervention, purchasing euros with their currencies.
The operation began at 7:11 a.m., with the euro
trading at 0.8750 against the dollar, 2.0 percent higher
than the closing price the previous day, and at 93.20
against the yen, 1.6 percent higher than the previous
day's close. The FRBNY Trading Desk operated
intermittently until 9:20 a.m. Over the course of
the morning, the U.S. monetary authorities acquired
€1.5 billion against $1.34 billion. The total amount
was evenly divided between the U.S. Treasury Department's Exchange Stabilization Fund and the Federal Reserve System.
As the operation began, the U.S. Department of
the Treasury issued the following statement: 'At the
initiative of the European Central Bank, the monetary
authorities of the United States and Japan joined with
the European Central Bank in concerted intervention
in exchange markets, because of their shared concern
about the potential implications of recent movements
in the Euro for the world economy."
Treasury Secretary Lawrence H. Summers repeated
this statement later that morning during a previously
scheduled press conference before the September 23
Group of Seven (G-7) meeting and noted that "British and Canadian authorities also took part in the
operation, purchasing euros with their currencies."
Secretary Summers also said that "Our policy on the
dollar is unchanged. As I have said many times, a
strong dollar is in the national interest of the United
States."
The euro rose as high as 0.9014 against the dollar
and 96.17 against the yen before consolidating its
gains just above $0.88 and ¥94.60. From Thursday's
to Friday's close, the euro appreciated 2.4 and
3.2 percent against the dollar and yen respectively.
Against the Canadian dollar and British pound, the
euro rose 2.1 and 0.9 percent, respectively, over the
same period. Although the dollar declined 2.3 percent
against the euro from Thursday's to Friday's close, it
appreciated by 1.3 percent against the yen over the
same period.
In the days after the intervention, the euro traded in
a narrow range against the yen and the dollar. For the
remainder of the third quarter, the euro-dollar and
euro-yen exchange pairs traded in a 0.7 and 1.0 percent range respectively. The implied volatility of
one-month euro-dollar options also declined, falling
from 16.2 percent on September 22 to 13.4 percent at
the quarter's close. Over the same period, the implied
volatility of one-month euro-yen options declined
from 16.9 to 14.9 percent.
TREASURY AND FEDERAL RESERVE
EXCHANGE RESERVES
FOREIGN
At the end of the quarter, the current values of the
euro and Japanese yen reserve holdings totaled
$15.7 billion for the Federal Reserve System and
$15.7 billion for the Treasury's Exchange Stabilization Fund. The U.S. monetary authorities invest all of
their foreign currency balances in a variety of instruments that yield market-related rates of return and
have a high degree of liquidity and credit quality. To
the extent practicable, the investments are split evenly
between the Federal Reserve System and the
Exchange Stabilization Fund.
A significant portion of the balances is invested
in German and Japanese government securities held
directly or under repurchase agreement. Government
securities held under repurchase agreement are
arranged either through transactions executed
directly in the market or through agreements with
official institutions. Foreign currency reserves are
also invested in deposits at the Bank for International
Settlements and in facilities at other official institu-
Treasury and Federal Reserve Foreign Exchange Operations
tions. As of September 29, direct holdings of foreign government securities totaled $8.5 billion, split
evenly between the two authorities. Foreign govern-
817
ment securities held under repurchase agreement
totaled $9.3 billion at the end of the quarter and were
also split evenly between the two authorities.
1. Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 2000:Q3
Millions of dollars
Quarterly changes in balances, by source
Item
Balance,
June 3 0 , 2 0 0 0
Net purchases
and sales1
Effect of
sales 2
Investment
income
Currency
valuation
adjustments3
6,637.5
8,877.9
15,515.3
669.7
0.0
669.7
0.0
0.0
0.0
66.2
0.7
66.9
-501.3
-144.8
-646.1
Interest
accrual
and other4
Balance,
Sept. 2 9 , 2 0 0 0
FEDERAL RESERVE SYSTEM
OPEN MARKET ACCOUNT
(SOMA)
Euro
Japanese yen
Total
Interest receivables (net)5
Other cash flow from investments4
6,872.1
8,733.7
15,605.8
34.5
4.6
Total
15,554.4
669.7
0.0
66.9
-646.1
6,634.7
8,877.8
15,512.5
669.7
0.0
669.7
0.0
0.0
0.0
66.2
0.7
66.9
-501.1
-144.8
-645.9
32.3
4.6
66.8
0.0
27.7
15,672.6
U.S. TREASURY EXCHANGE
STABILIZATION FUND ( E S F )
Euro
Japanese yen
Total
Interest receivables5
Other cash flow from investments4
6,869.5
8,733.8
15,603.2
56.4
4.7
Total
15,573.6
669.7
0.0
66.9
-645.9
1.2
-4.7
57.6
0.0
-3.5
15,660.8
NOTE. Figures may not sum to totals because of rounding.
1. Purchases and sales for the purpose of this table include foreign currency sales and purchases related to official activity, swap drawings and repayments, and warehousing.
2. This figure is calculated using marked-to-market exchange rates; it
represents the difference between the sale exchange rate and the most recent
revaluation exchange rate. Realized profits and losses on sales of foreign currencies, computed as the difference between the historical cost-of-acquisition
exchange rate and the sale exchange rate, are reflected in table 2.
3. Foreign currency balances are marked to market monthly at month-end
exchange rates.
4. Values are cash flow differences from payments and collection of funds
between quarters.
5. Interest receivables for the ESF are revalued at month-end exchange rates.
Interest receivables for the Federal Reserve System are carried at average cost
of acquisition and are not marked to market until interest is paid.
. . . Not applicable.
2. Net profits or losses (-) on U.S. Treasury
and Federal Reserve foreign exchange operations,
based on historical cost-of-acquisition exchange rates,
2000:Q3
3. Reciprocal currency arrangements, September 29, 2000
Millions of dollars
Institution
Amount of
facility
Outstanding,
Sept. 2 9 , 2 0 0 0
Millions of dollars
Period and item
Valuation profits and losses on
outstanding assets and liabilities,
June 30, 2000
Euro
Japanese yen
Total
Federal
Reserve
System Open
Market Account
U.S. Treasury
Exchange
Stabilization
Fund
-869.6
1,832.3
-1,086.3
2,044.4
962.7
958.2
0.0
0.0
0.0
0.0
Total
0.0
0.0
-1.370.9
1,687.5
-1,587.3
1,899.7
316.6
312.3
Total
Bank of Canada
Bank of Mexico
Total
Realized profits and losses
from foreign currency sales,
June 30, 2000-Sept. 29, 2000
Euro
Japanese yen
Valuation profits and losses on
outstanding assets and liabilities,
Sept. 29, 2000
Euro
Japanese yen
Reciprocal currency
arrangements
2,000
3,000
0.0
0.0
5,000
0.0
Federal Reserve and U.S. Treasury
Exchange Stabilization Fund
currency arrangements
Bank of Mexico
3,000
0.0
Total
3,000
0.0
818
Industrial Production and Capacity Utilization
for October 2000
cent, just 0.1 percentage point above its 1967-99
average.
Released for publication November 15
Industrial production edged down 0.1 percent in
October after increases in August and September that
were revised upward. At 146.3 percent of its 1992
average, industrial production in October was 5.2 percent higher than in October 1999. The rate of capacity utilization for total industry decreased to 82.1 per-
MARKET
GROUPS
The output of consumer goods fell 0.4 percent in
October, retracing its September rise. The production
Industrial production and capacity utilization
Ratio scale, 1992 = 100
—
Industrial production
Percent of capacity
Capacity utilization
150
-
/ /
- 140
Manufacturing
-
-
Total industry
-
-
130
-
120
-
110
85
wb"\ Total
i
f
1
1
1
1992
1990
1994
1996
i
1
2000
1998
i
1988
i
i
i
1990
y
jC
V _
Manufacturing
s
V
100
1
industr
*
i
1
1992
1994
1
1
1996
1
1 1
1
1998
2000
Industrial production, market groups
Ratio scale, 1992 = 100
Ratio scale, 1992 - 100
Ratio scale, 1992 = 100
Equipment
^
—
^-
-
180
160
140
-
Business
120
-
100
Defense and space
80
1
1990
1
1
1
1992
1
1
1994
1
1996
1
1
1998
1
1
2000
1990
1992
All series are seasonally adjusted. Latest series, October. Capacity is an index of potential industrial production.
1994
1996
1998
2000
80
819
Industrial production and capacity utilization, October 2000
Industrial production, index, 1992=100
Percentage change
2000
Category
2000!
July'
Aug.
Sept.
Oct.?
July
Aug.
Sept.
Oct.?
Oct. 1999
to
Oct. 2000
Total
145.1
145.9
146.5
146.3
-.2
.5
.4
-.1
5.2
-.2
.4
.2
r
r
r
r
1
Previous estimate
145.0
145.6
146.0
Major market groups
Products, total2
Consumer goods . . .
Business equipment
Construction supplies
Materials
131.8
118.8
188.7
137.7
168.1
132.0
119.1
190.2
136.0
170.1
132.4
119.7
191.9
136.4
171.0
132.3
119.2
192.5
136.2
170.6
.1
-.5
.8
.7
-.6
.1
.3
.8
-1.3
1.2
.3
.4
.9
.3
.5
-.1
-.4
.3
-.1
-.2
3.0
.8
10.1
.6
8.8
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
151.1
190.9
113.1
102.7
115.2
151.7
192.4
113.1
102.9
118.6
152.4
194.0
113.0
101.8
119.7
152.3
193.5
113.3
102.5
117.4
.0
.1
.0
-.1
-3.0
.4
.8
-.1
.1
3.0
.5
.8
.0
-1.0
.9
.0
-.3
.2
.7
-1.9
5.6
9.7
.3
3.3
1.9
MEMO
Capacity utilization, percent
1999
Average,
1967-99
Total
82.0
Low,
1982
71.1
High,
1988-89
85.4
81.1
80.5
82.4
87.3
87.5
69.0
70.4
66.2
80.3
75.9
85.7
84.2
88.9
88.0
92.6
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
of durable consumer goods fell 2.5 percent, in large
part because of a drop in the output of automotive
products, particularly auto and light truck assemblies. Production also declined across many other
categories of consumer durables; the largest of these
other decreases was in the production of household
appliances.
By contrast, nondurable consumer goods rose
0.2 percent, continuing a pattern of small gains
posted over the past several months. Declines in the
output of clothing and consumer energy products
were more than offset by increases in the production
of food and paper products. As a result of unusually
warm weather in October, residential sales of electricity dropped; in addition, the production of consumer
fuel, including gasoline, decreased.
The production of business equipment moved up
0.3 percent, its smallest increase so far this year. The
output of office and computing equipment posted
another strong gain, but it was less than the average
monthly gain for the first three quarters of the year.
Sept.r
Oct.P
82.4
82.5
82.1
3.7
82.2
82.2
81.4
81.5
81.8
86.5
91.7
81.5
81.6
81.9
85.8
92.4
81.2
81.3
81.7
86.5
90.6
4.2
5.5
1.2
-1.4
1.2
Oct.
Julyr
Aug.r
81.0
82.2
82.1
81.3
81.1
82.4
86.3
89.1
Previous estimate
Manufacturing
Advanced processing
Primary processing
Mining
Utilities
2000
80.2
79.1
83.4
82.6
89.9
Capacity,
percentage
change,
Oct. 1999
to
Oct. 2000
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
The production of industrial equipment, which had
fallen more than 1 percent in September, dropped
0.3 percent further in October. The output of transit
equipment decreased 4 percent, a sharp drop largely
reflecting declines in motor vehicles. Within the
"other equipment" category, the output of farm
machinery turned up after having fallen substantially
in the third quarter.
The production of construction supplies, which had
eased in the third quarter, was little changed. The
index for business supplies declined 0.3 percent, a
dropoff mainly reflecting lower output of commercial
energy products.
Among materials, the production of durable goods
materials slipped 0.2 percent, the first decline in this
group in more than a year. The output of consumer
parts dropped 4.2 percent, with sizable declines in
steel and original equipment motor vehicle parts. The
production of equipment parts recorded another large
increase; as in previous months, the production of
semiconductors posted the strongest gains in this
820
Federal Reserve Bulletin • December 2000
category. The output of nondurable goods materials,
which stayed flat for the second consecutive month,
was nearly 3 percent below its level of twelve months
earlier. The index for energy materials decreased
0.4 percent; cutbacks at utilities more than accounted
for the loss.
INDUSTRY
GROUPS
Manufacturing output was unchanged following
gains of around 1/2 percent in August and September; excluding motor vehicles and parts, however, the
gain in October was 0.5 percent. The output of durables decreased, led by losses in motor vehicles and
parts, primary metals (particularly iron and steel),
and furniture and fixtures. Smaller cutbacks were
recorded in lumber and products, fabricated metal
products, instruments, and miscellaneous manufacturing goods. Offsetting these declines were further
gains in the production of computer and office equipment and semiconductors. After several months of
weakness, the production of nondurable goods edged
up 0.2 percent, a move buoyed by a 1.0 percent gain
in food and a 0.6 percent gain in printing and publishing. Production declined in the apparel, textile mill
products, and petroleum products industries.
The overall factory operating rate dropped 0.3 percentage point, to 81.2 percent; capacity utilization
at primary-processing industries fell 0.2 percentage
point, to 81.7 percent, while utilization at advancedprocessing industries fell to 81.3 percent.
The output at utilities fell back almost 2 percent in
October; mine production, which was boosted by
increases in coal mining and in oil and gas well
drilling, increased 0.7 percent.
REVISION OF INDUSTRIAL PRODUCTION AND
CAP A CITY* UTIDIZA TION
On December 5, the Federal Reserve Board will
publish revisions to the index of industrial production
(IP), to the related measures of capacity and capacity
utilization, and to the index of industrial use of electric power. The updated measures will reflect both the
incorporation of newly available, more comprehensive source data typical of annual revisions and, for
some series, the introduction of improved compila-
tion methods. The revision will also include a refinement of the method used to aggregate the individual
series in the production and capacity indexes. The
new source data are for recent years, primarily 1997
through 1999, and the modified methods will affect
data from 1992 onward.
The G.17 statistical release will be redesigned with
the publication of the revision. Special aggregates
will be added; although some detailed industry data
will no longer be listed in the regular release, they
will be available on the Federal Reserve Board's
public web site. On November 15, a template of the
redesigned tables will be available on the Board's
web site (www.federalreserve.gov/releases/gl7).
The updating of source data for IP will include
annual data from the following reports of the Bureau
of the Census: the 1997 Census of Manufactures, the
1998 Annual Survey of Manufactures, and sielected
editions of its 1998 and 1999 Current Industrial
Reports. Annual data from the U.S. Geological Survey regarding metallic and nonmetallic minerals
(except fuels) for 1998 and 1999 will also be introduced. The updating will include revisions to the
monthly indicator for each industry (either physical
product data, production-worker hours, or electric
power usage) and to seasonal factors.
Capacity and capacity utilization will be revised to
incorporate preliminary data from the 1999 Survey of
Plant Capacity of the Bureau of the Census, which
covers manufacturing, along with other new data on
capacity from the U.S. Geological Survey, the Department of Energy, and other organizations. The statistics on the industrial use of electric power will incorporate additional information received from utilities
for the past few years and will include some data
from the 1997 Census of Manufactures and 1998
Annual Survey of Manufactures.
Aggregate industrial production indexes have been
built as annually weighted chain-type indexes, beginning with data for 1977. Currently, the weights are
changed at the middle of every year; with the coming
revision, the weights will change every month, rather
than once a year, beginning with data for 1992.
Once the revision is published, it will be made
available on the Board's web site. The revised data
will also be available through the web site of the
Department of Commerce. Further information on
these revisions is available from the Board's Industrial Output Section (telephone 202-452-3197).
•
821
Announcements
MODIFICATION OF SUPERVISION PROGRAM
FOR U.S. OPERATIONS OF FOREIGN BANKS
The Federal Reserve Board announced on October 24, 2000, that it is updating and streamlining the
interagency program for supervising the U.S. operations of foreign banks in cooperation with other federal and state authorities involved in supervising the
banks.
The changes, outlined in a supervisory letter
(SR 00-14) to Federal Reserve supervisors, include
sharing supervisors' Strength of Support Assessment
(SOSA) rankings with the senior managers of foreign
banks and the banks' home country supervisors. Also,
the five current SOSA rankings, A to E, were streamlined into three rankings, 1 to 3.
SOSA rankings, which have been used since 1995,
assess a foreign bank's ability to provide financial,
liquidity, and management support to its U.S. operations. They serve as a starting point for U.S. bank
supervisors in assessing the risks of foreign banks'
operations in the United States and in formulating a
strategy for their supervision.
Sharing SOSA rankings "should strengthen communications with bank management, as well as
enhance information sharing, collaboration, and coordination between the host (U.S.) and home country
authorities in the supervision of multinational banking organizations," wrote Richard Spillenkothen,
director of the Board's Division of Banking Supervision and Regulation.
U.S. supervisors will continue to provide the senior
management of foreign banks and their home country supervisors with examination ratings of the foreign banking organizations' operations in the United
States.
Supervisory letters are the Federal Reserve's primary means of communicating key policy directives to its supervisory staff and the banking industry.
They can be viewed on the Board's web site:
www.federalreserve.gov/boarddocs/srletters.
NEGOTIATION OF ACH
WITH PRIVATE-SECTOR
TRANSACTION FEES
OPERATORS
The Federal Reserve Board announced on October 31, 2000, a new approach to pricing Federal
Reserve Banks' automated clearinghouse (ACH)
transactions, which is intended to enhance competition in the provision of services to depository
institutions.
The ACH is a nationwide system used to process
electronically originated credit and debit transfers.
ACH credit transfers include direct deposit payroll
payments and corporate payments to contractors and
vendors. ACH debit transfers include consumer payments on insurance premiums, mortgage loans, and
other bills.
The Reserve Banks and private-sector ACH operators (PSOs) rely on each other to process some transactions in which either the originating depository
financial institution or receiving depository financial
institution is not their customer. Some industry representatives expressed concern that Reserve Banks'
deposit deadlines and price structure do not permit
the PSOs to compete effectively.
Under the new approach approved by the Board,
the Reserve Banks will negotiate with the PSOs
regarding new deposit deadlines and fees for interoperator transactions between Reserve Banks and the
PSOs. Eligibility for the new deposit deadlines and
fees will be limited to operators as defined by the
rules of the National Automated Clearing House
Association. The new interoperator deadlines will be
implemented no later than June 2001 and the new
fees no later than September 2001.
INCREASE IN ADVERSELY
SYNDICATED LOANS
CLASSIFIED
Syndicated bank loans adversely classified by examiners increased in 2000 for the second consecutive
year, according to data released on October 10, 2000,
by three federal bank regulatory agencies.
The agencies—the Board of Governors of the Federal Reserve System, the Office of the Comptroller
of the Currency, and the Federal Deposit Insurance
Corporation—released aggregate data for the past six
years and data by major industry sector for the past
three years.
Under the Shared National Credit (SNC) Program,
the agencies review large syndicated loans annually,
usually in May and June. The program, established in
1977, is designed to provide an efficient and consis-
822
Federal Reserve Bulletin • December 2000
tent review and classification of any loan or loan
commitment shared by three or more supervised institutions and totaling $20 million or more.
In 2000, the SNC Program covered 9,848 credits to
5,844 borrowers totaling nearly $2 trillion in drawn
and undrawn loan commitments. Of the total, $63 billion, or 3.3 percent, was classified adversely because
of default or other significant credit concerns. That
percentage is up from 2.0 percent in 1999 and
1.3 percent in 1998, the lowest level of the decade.
Classified loans remain low relative to the peak of
10 percent of total commitments recorded in 1991.
Borrowers have drawn down about a third of
the $1.95 trillion in loan commitments, or $701 billion. Of this amount, $56 billion, or 8 percent, was
classified adversely, up from 5.3 percent in 1999 but
down from the peak of 18 percent in 1991.
The percentage of adversely classified credits rose
in 2000 for several major industry sectors. Problem
loans in the health-care services sector continued to
increase after the significant deterioration in 1999,
and health care remains the industry with the highest
relative concentration of classified SNC loans. Several traditional manufacturing industries also experienced a significant increase in problem credits, and
some industries were heavily influenced by problems
encountered by leveraged borrowers that had
expanded operations aggressively through acquisitions in recent years.
In addition, credits listed as "special mention" by
examiners because of potential weakness—a less
serious category than the three adverse classifications: substandard, doubtful, and loss—totaled
$36.3 billion in 2000, up from $31.4 billion in 1999.
Special mention loans rose to 1.9 percent of total loan
commitments, up from 1.7 percent in 1999.
U.S. banking organizations hold approximately
one-half of the value of loans in the SNC Program.
Foreign banks hold just over 40 percent, and nonbank
and nonfinancial companies and investment funds
hold the rest.
INTERAGENCY PROPOSAL TO SIMPLIFY CAPITAL
REQUIREMENTS FOR NON-COMPLEX BANKS
AND THRIFT INSTITUTIONS
The federal bank and thrift regulatory agencies
requested on November 3, 2000, public comment on
an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory
capital framework for non-complex institutions. The
advance notice was published in the Federal Register
(November 3, 2000).
Comments are due February 1, 2001, to the Office
of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of
Thrift Supervision.
Banks and thrift institutions are required to maintain minimum levels of capital set by U.S. regulators
under a framework established by the Basel Accord
in 1988. The U.S. and other regulators are currently
revising the Accord to provide a more refined assessment of the capital requirements for large, complex,
internationally active banks. The agencies seek comment on simplified capital frameworks for noncomplex banks and thrift institutions that would conform to the underlying principles of a revised Basel
Accord and maintain the principles of prudential
supervision, yet would relieve unnecessary regulatory burden.
The advance notice by the agencies observes that a
large number of community banks and thrift institutions might benefit from a simpler capital framework
that relieves some of the regulatory burden associated
with regulatory capital calculations. The agencies
suggest criteria that could be used to determine eligibility for a simplified capital framework, such as the
nature of a bank's activities, its asset size, and its risk
profile. In the advance notice, the agencies seek comment on possible minimum regulatory capital requirements for non-complex institutions, including a simplified risk-based ratio, a simple leverage ratio, or a
leverage ratio modified to incorporate certain offbalance-sheet exposures.
The advance notice solicits public comment on the
agencies' preliminary views, particularly on the following issues:
• Defining a non-complex institution
• Identifying the factors for determining eligibility
for a simplified capital framework
• Setting an appropriate minimum capital threshold for non-complex institutions that maintains prudent capital levels and minimizes the regulatory burden associated with calculating that level
• Considering additional options for measuring
regulatory capital at non-complex institutions
• Resolving the implementation issues associated
with a simplified capital framework.
INTERAGENCY PROPOSAL TO LIMIT SHARING
OF CONSUMER DATA AMONG FINANCIAL
AFFILIATES
The federal bank and thrift regulatory agencies on
October 20, 2000, proposed rules to implement the
Announcements
Fair Credit Reporting Act's (FCRA) notice and optout provisions governing the sharing of information
among financial institution affiliates.
The rules, proposed by the Board of Governors of
the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Office of the Comptroller
of the Currency, and the Office of Thrift Supervision,
explain how to comply with affiliate sharing provisions of the FCRA that have been in place since
1996. Comments are due by December 4, 2000.
The Gramm-Leach-Bliley Act (GLBA) restored
the agencies' authority to conduct regular examinations for compliance with the FCRA. In addition, the
GLBA authorized the agencies to issue joint rules
implementing the FCRA.
The agencies minimized the compliance burden on
banks and thrift institutions by making the proposed
rules for notice and opt-out provisions generally consistent with recently adopted privacy regulations that
were required under the GLBA. The proposed rules
apply to any institution that wants to share consumer
information, other than transaction or experience
information, with its affiliates, but does not wish to
be considered a consumer reporting agency. The consumer information subject to the rule must bear on a
consumer's creditworthiness, credit standing, credit
capacity, character, general reputation, personal characteristics, or mode of living. An institution intending to share this information with affiliates without
becoming a consumer reporting agency must first
provide consumers with a notice advising them of
their right to opt out of this information sharing, as
well as a reasonable opportunity and convenient
means to exercise this right.
ENFORCEMENT
823
ACTIONS
The Federal Reserve Board announced on October 23, 2000, the execution of a written agreement by
and between Citizens Deposit Bank and Trust, Vanceburg, Kentucky, and the Federal Reserve Bank of
Cleveland.
The Federal Reserve Board announced on October 11, 2000, the execution of a written agreement
by and between Bay View Capital Corporation,
San Mateo, California, and the Federal Reserve Bank
of San Francisco.
The Federal Reserve Board announced on October 6, 2000, the issuance of a final decision and order
of prohibition against Carolyn D. Nelson, former
assistant vice president, Lone Star National Bank,
Pharr, Texas. The order, the result of an action
brought by the Office of the Comptroller of the
Currency, prohibits Ms. Nelson from participating in
the conduct of the affairs of any financial institution
or holding company.
CHANGE IN BOARD STAFF
The Board of Governors announced that Oliver Ireland, associate general counsel, would be leaving
the Board on Friday, November 24, 2000, after
twenty-six years of service with the Federal Reserve
System.
•
825
Legal Developments
FINAL RULE—AMENDMENT
FOR HEARINGS
TO RULES
OF
PRACTICE
The Board of Governors is amending 12 C.F.R. Part 263,
its rules of practice and procedure to adjust the maximum
amount, as set by statute, of each civil money penalty
(CMP) within its jurisdiction to account for inflation. This
action is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt
Collection Improvement Act of 1996.
Effective October 12, 2000, 12 C.F.R. Part 263 is
amended as follows:
Part 263—Rules of Practice for Hearings
1. The authority citation for Part 263 continues to read as
follows:
Authority. 5 U.S.C. 504; 12 U.S.C. 248, 324, 504, 505,
1817(j), 1818, 1828(c), 1831o, 1831p-l, 1847(b), 1847(d),
1884((b), 1972(2)(F), 3105, 3107, 3108, 3907, 3909;
15 U.S.C. 21, 78o-4, 78o-5, 78u-2; and 28 U.S.C. 2461
note.
2. Section 263.65 is revised to read as follows:
(2) 12 U.S.C. 504, 505, 18170X16), 1818(i)(2) and
1972(F):
(i) First tier — $5,500.
(ii) Second tier — $27,500.
(iii) Third tier — $1,175,000.
(3) 12 U.S.C. 1832(c) —$1,100.
(4) 12 U.S.C. 1847(b), 3110(a) — $27,500.
(5) 12 U.S.C. 1847(d), 3110(c):
(i) First tier — $2,200.
(ii) Second tier — $22,000.
(iii) Third tier — $1,175,000.
(6) 12 U.S.C. 334, 374a, 1884 — $110.
(7) 12 U.S.C. 3909(d) —$1,100.
(8) 15 U.S.C. 78u-2:
(i) 15 U.S.C. 78u-2(b)(l) — $5,500 for a natural
person and $60,000 for any other person.
(ii) 15 U.S.C. 78u-2(b)(2) — $60,000 for a natural
person and $300,000 for any other person.
(iii) 15 U.S.C. 78u-2(b)(3) — $120,000 for a natural person and $575,000 for any other person.
(9) 42 U.S.C. 4012a(f)(5):
(i) For each violation — $350.
(ii) For the total amount of penalties assessed under 42 U.S.C. 4012a(f)(5) against an institution or enterprise during any calendar year —
$115,000.
Section 263.65—Civil penalty inflation adjustments
(a) Inflation adjustments. In accordance with the Federal
Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C.
2461 note), the Board has set forth in paragraph (b) of this
section adjusted maximum penalty amounts for each civil
money penalty provided by law within its jurisdiction. The
adjusted civil penalty amounts provided in paragraph (b) of
this section replace only the amounts published in the
statutes authorizing the assessment of penalties and the
previously-adjusted amounts adopted as of October 24,
1996. The authorizing statutes contain the complete provisions under which the Board may seek a civil money
penalty. The increased penalty amounts apply only to violations occurring after the effective date of this rule.
(b) Maximum civil money penalties. The maximum civil
money penalties as set forth in the referenced statutory
sections are adjusted as follows:
(1) 12 U.S.C. 324:
(i) Inadvertently late or misleading reports, inter
alia — $2200.
(ii) Other late or misleading reports, inter alia —
$22,000.
(iii) Knowingly or recklessly false or misleading
reports, inter alia — $1,175,000.
ORDERS ISSUED
UNDER BANK HOLDING
COMPANY
ACT
Orders Issued Under Section 4 of the B a n k Holding
C o m p a n y Act
UniCredito Italiano S.p.A.
Milan, Italy
Order Approving Notice to Engage in Nonbanking
Activities
UniCredito Italiano S.p.A. ("UniCredito"), a foreign bank
subject to the provisions of the Bank Holding Company
Act ("BHC Act"), 1 has requested the Board's approval
under sections 4(c)(8) and 4(j) of the BHC Act
(12 U.S.C. §§ 1843(c)(8) and 1843(j)> and section 225.24
of the Board's Regulation Y (12 C.F.R. 225.24)) to acquire
1. As a foreign bank operating a branch and representative offices in
the United States, UniCredito is subject to certain provisions of the
BHC Act by operation of section 8(a) of the International Banking
Act of 1978 (12 U.S.C. § 3106(a)).
826
Federal Reserve Bulletin • December 2000
The Pioneer Group, Inc., Boston, Massachusetts (collectively with its subsidiaries "Pioneer"), and thereby engage
in the following nonbanking activities:
1. Providing financial and investment advisory services, pursuant to section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6));
2. Providing certain administrative services for openend investment companies ("mutual funds");
3. Providing agency transactional services, in accordance with section 225.28(b)(7) of Regulation Y
(12 C.F.R. 225.28(b)(7));
4. Acting as a general partner or managing member for
certain private investment funds that invest in assets
in which a bank holding company is permitted to
invest; and
5. Acting as a commodity pool operator for private
investment funds organized as commodity pools
that invest in assets in which a bank holding company is permitted to invest.
Notice of the proposal affording interested persons an
opportunity to submit comments has been published
(65 Federal Register 43,763 (2000)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors set
forth in section 4 of the BHC Act.
UniCredito, with total consolidated assets of approximately $180 billion, is the second largest banking organization in Italy and the 54th largest banking organization in
the world.2 In the United States, UniCredito operates a
branch in New York, New York; and representative offices
in Los Angeles, California; Chicago, Illinois; and New
York, New York. Pioneer, with total consolidated assets of
approximately $300 million and total assets under management of approximately $24 billion,3 engages in investment
and financial advisory activities and provides administrative services to mutual funds and other institutional customers.4
2. UniCredito asset data are as of June 30, 2000, and are based on
foreign exchange rates as of that date. Foreign and world ranking data
are as of December 31, 1999, and are based on foreign exchange rates
as of that date.
3. Pioneer asset data are as of December 31, 1999.
4. Pioneer currently engages in certain activities, including the
distribution of mutual fund shares, and controls certain investment
vehicles that have investments that are not permissible for a bank
holding company. UniCredito has committed to conform the activities, investments, and relationships of Pioneer to those permissible for
a bank holding company within two years of acquiring Pioneer. In
some cases, mutual funds advised and administered by Pioneer would
not have a distributor. In these cases, UniCredito has committed to
ensure that Pioneer would not be engaged in distributing these funds.
See Lloyds TSB Group pic, 84 Federal Reserve Bulletin 116 (1998)
("Lloyds"). Among these commitments are that the so-called distributorless funds would employ a marketing officer who is independent of
UniCredito and Pioneer, and who would initiate contact with financial
intermediaries regarding the sale of fund shares, negotiate broker
selling agreements on behalf of the funds, and be responsible for
placing, reviewing, and filing with regulators advertisements on behalf of the funds.
Pioneer is, and after consummation of the proposal will
continue to be, registered with the Securities and Exchange
Commission ("SEC") as an investment advisor under the
Investment Advisors Act of 1940 ("1940 Act"), as a
broker-dealer under the Securities Exchange Act of 1934
(15 U.S.C. § 78a et seq.) ("1934 Act"), and a member of
the National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Pioneer is subject to the recordkeeping and reporting obligations, fiduciary standards, and
other requirements of the 1934 Act, the 1940 Act, the SEC,
and the NASD.
Mutual Fund Activities
The Board previously has determined that providing administrative services to mutual funds is closely related to
banking within the meaning of section 4(c)(8) of the BHC
Act.5 UniCredito proposes to provide through Pioneer investment advisory, securities brokerage, and mutual fund
administrative services that previously have been approved
by the Board, and UniCredito has committed that the
proposed activities will be conducted in compliance with
Regulation Y and subject to the prudential and other limitations established by the Board.6
UniCredito also proposes to have certain director and
officer interlocks with the funds. In particular, UniCredito
proposes that up to 25 percent of the directors of a mutual
fund would be employees, officers, or directors of UniCredito or one of its subsidiaries, including Pioneer. UniCredito proposes that one of these directors may serve as
chairman of the board of the fund. In addition, UniCredito
seeks to have up to three directors, officers, or employees
of UniCredito or its subsidiaries serve as senior officers of
the fund and other UniCredito personnel serve as juniorlevel officers of the fund.7
The Board previously has authorized a bank holding
company and its nonbank subsidiaries to have limited
director and officer interlocks with mutual funds that the
bank holding company advises and administers.8 As in
previous cases, the funds in this case would be controlled
by their independent directors, and the independent direc-
5. See, e.g., Societe Generale, 84 Federal Reserve Bulletin 680
(1998) ("SoGen"); Bankers Trust New York Corporation, 83 Federal
Reserve Bulletin 780 (1997) ("BTNT');
Commerzbank
AG,
83 Federal Reserve Bulletin 679 (1997).
6. See, e.g., SoGen, BTNY. The administrative services that UniCredito would provide to mutual funds through Pioneer include computing the funds' financial data, maintaining and preserving the
records of the funds, providing office facilities and clerical support for
the funds, and preparing and filing tax returns for the funds. The
services are listed in the Appendix.
7. Senior officers include the president, secretary, treasurer, and
vice-presidents with policymaking functions. Junior officers include
assistant secretaries, assistant treasurers and assistant vice-presidents
of the funds. Junior officers are fund employees who have no authority
or responsibility to make policy.
8. See, e.g., SoGen; BTNY; Lloyds; Travelers Group Inc.,
84 Federal Reserve Bulletin 985 (1998); BankAmerica Corporation,
83 Federal Reserve Bulletin 913 (1997); The Governor and Company
of the Bank of Ireland, 82 Federal Reserve Bulletin 1129 (1996).
Legal Developments
tors would be responsible for the selection and review of
the investment adviser, the underwriter, and other major
service contractors of the fund. 9
Other Activities Approved by Regulation or Order
The Board has previously determined that providing financial and investment advisory services, providing agency
transactional services for customer investments, acting as a
general partner or managing member for private investment funds that make investments that a bank holding
company may make, and acting as a commodity pool
operator are all closely related to banking within the meaning of section 4(c)(8) of the BHC Act.10 UniCredito has
committed that it will conduct these activities in accordance with the limitations set forth in Regulation Y and the
Board's orders and interpretations relating to each of the
activities.11
Other Considerations
In order to approve the proposal, the Board is required by
section 4(j)(2)(A) of the BHC Act to determine that the
acquisition of Pioneer by UniCredito "can reasonably be
expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices."12
As part of its evaluation of these factors, the Board
considers the financial and managerial resources of UniCredito and its subsidiaries, including the companies to be
acquired, and the effect of the proposed transaction on
those resources.13 UniCredito's capital ratios satisfy applicable risk-based standards under the Basle Accord and are
considered equivalent to the capital ratios that would be
required of a United States banking organization. Based on
all the facts of record, the Board has concluded that financial and managerial considerations are consistent with approval of the notice.
The Board also has considered the competitive effects of
the proposed acquisition of Pioneer by UniCredito. To the
extent that UniCredito and Pioneer offer different types of
products and services, the proposal would result in no loss
of competition. In those markets where the product offerings of UniCredito and its subsidiaries and Pioneer do
overlap, there are numerous existing and potential compet-
9. Under the 1940 Act, at least 40 percent of the board of directors
of a mutual fund must be individuals who are not affiliated with the
mutual fund. The 1940 Act and related regulatory provisions require
that the independent directors annually review and approve the mutual
fund's investment advisory contract and any plan of distribution or
related agreement.
10. See 12 C.F.R. 225.28(b)(6) and (7); Dresdner Bank AG,
84 Federal Reserve Bulletin 361 (1998) ("Dresdner").
11. See 12 C.F.R. 225.28(b)(6) and (7); Dresdner.
12. 12 U.S.C. § 1843(j)(2)(A).
13. See 12 C.F.R. 225.26(b); see also The Fuji Bank, Limited, 75
Federal Reserve Bulletin 94 (1989).
827
itors. As a result, consummation of the proposal would
have a de minimis effect on competition for these services,
and the Board has concluded that the proposal would not
result in a significantly adverse effect on competition in
any relevant market.
The Board also expects that the proposed transaction
would give UniCredito an increased ability to serve the
needs of its customers. In addition, there are public benefits
to be derived from permitting capital markets to operate so
that bank holding companies can make potentially profitable investments in nonbanking companies and from permitting banking organizations to allocate their resources in
the manner they consider to be most efficient when such
investments are consistent, as in this case, with the relevant
considerations under the BHC Act.
The Board previously has determined that the provision
of administrative services to mutual funds within the parameters established by the Board is not likely to result in
certain types of subtle hazards or in other significant adverse effects. UniCredito also would be required to comply
with the Board's interpretive rule on Investment Adviser
Activities,14 which was designed to mitigate potential conflicts of interests and the potential for customer confusion
associated with the proposed activities. Based on the foregoing and all the facts of record, the Board concludes that
there is no evidence in the record to indicate that consummation of this proposal is 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 the proposal. Accordingly, based on all the facts
of record, the Board has determined that the balance of
public interest factors that the Board must consider under
section 4(j)(2)(A) of the BHC Act is favorable and consistent with approval of the proposal.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the notice should be,
and hereby is, approved. Approval of the notice is specifically conditioned on compliance by UniCredito with all the
commitments made in connection with the proposal and
with the conditions stated or referred to in this order,
including the Board's reservation of authority to establish
additional limitations to ensure that UniCredito's activities
are consistent with safety and soundness, avoidance of
conflicts of interests, and other relevant considerations
under the BHC Act.
The Board's determination also is subject to all the terms
and conditions set forth in Regulation Y, including those in
sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and
225.25(c)), and the Board's authority to require such modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to ensure compliance with, and to prevent eva-
14. 12 C.F.R. 225.125.
828
Federal Reserve Bulletin • December 2000
sion of, the provisions of the BHC Act and the Board's
regulations and orders thereunder. For purposes of the
transaction, the commitments and conditions referred to in
this order shall be deemed to be conditions imposed in
writing by the Board in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The proposal 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, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
October 23, 2000.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
14. Providing information to the distributor's personnel
concerning performance and administration of the
funds.
15. Participating in seminars, meetings, and conferences
designed to present information to financial intermediaries concerning the operations of the funds, including
administrative services provided by Pioneer to the
funds, but not in connection with the sale of shares of
the funds to the public.
16. Assisting in the development of additional funds.
17. Providing reports to the boards of directors of the
funds.
18. Providing telephone shareholder services through a
toll-free number (telephone service operators will not
solicit callers to purchase shares in particular funds or
make outgoing calls to solicit investors, but on request
of a caller may provide historical performance information concerning a fund or general information concerning a fund's investment objectives).
Associate Secretary of the Board
Appendix
List of Administrative Services
1. Maintaining and preserving the records of the funds,
including financial and corporate records.
2. Computing net asset value, dividends, performance
data, and financial information regarding the funds.
3. Furnishing statistical and research data to the funds.
4. Preparing and filing with the SEC and state securities
regulators registration statements, notices, reports, and
other materials required to be filed under applicable
laws.
5. Preparing reports and other informational materials
regarding the funds, including proxies and other shareholder communications, and reviewing prospectuses.
6. Providing legal and other regulatory advice to the
funds in connection with their other administrative
functions.
7. Providing office facilities and clerical support for the
funds.
8. Developing and implementing procedures for monitoring compliance with regulatory requirements and compliance with the funds' investment objectives, policies,
and restrictions as established by the boards of directors of the funds.
9. Providing routine accounting services to the funds and
liaison with outside auditors.
10. Preparing and filing tax returns.
11. Reviewing and arranging for payment of expenses for
the funds.
12. Providing communication and coordination services
with regard to the funds' transfer agent, custodian,
distributor, and other service organizations that render
distribution, recordkeeping, or shareholder communication services.
13. Preparing advertising materials, sales literature, and
marketing plans for the funds.
Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
Wells Fargo & Company
San Francisco, California
Order Approving the Acquisition of a Bank Holding
Company
Wells Fargo & Company ("Wells Fargo"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842)
to acquire Brenton Banks, Inc., ("Brenton") and its subsidiary bank, Brenton Bank, both of Des Moines, Iowa. Wells
Fargo also has requested the Board's approval under sections 4(c)(8) and 4(j) of the BHC Act (12 U.S.C.
§§ 1843(c)(8) and 1843(j)) and section 225.24 of the
Board's Regulation Y (12 C.F.R. 225.24) to acquire Brenton's nonbanking subsidiaries, including Brenton Savings
Bank, FSB, Ames, Iowa ("Brenton Savings").
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(65 Federal Register 54,533 (2000)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in sections 3 and 4 of the BHC Act.
Wells Fargo, with total consolidated assets of $234 billion, is the seventh largest commercial banking organization in the United States, controlling 3.4 percent of total
assets of insured commercial banks in the United States.1
Wells Fargo operates a large network of subsidiary banks
in 23 states, including Iowa.2 Wells Fargo is the largest
1. Asset and ranking data are as of June 30, 2000.
2. Wells Fargo operates in Alaska, Arizona, California, Colorado,
Idaho, Iowa, Illinois, Indiana, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oregon, South
Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.
Legal Developments
commercial banking organization in Iowa, controlling deposits of $4.3 billion, representing approximately
10.4 percent of total deposits in depository institutions in
the state ("state deposits").3 Brenton, with total consolidated assets of $2 billion, also operates depository institutions in Iowa. Brenton is the fifth largest commercial
banking organization in Iowa, controlling deposits of $1.5
billion, representing approximately 3.5 percent of state
deposits. On consummation of the proposal, and taking
into account the proposed divestitures discussed in this
order, Wells Fargo would remain the largest commercial
banking organization in Iowa, controlling deposits of approximately $5.7 billion, representing approximately 13.6
percent of state deposits.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met.4 For purposes of the BHC Act, the home state of
Wells Fargo is California, and Brenton Bank is located in
Iowa.5
All the conditions for an interstate acquisition enumerated in section 3(d) of the BHC Act are met in this case.6 In
view of all the facts of record, the Board is permitted to
approve the proposal under section 3(d) of the BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving an application if the proposal would result in a monopoly or would be in furtherance of any attempt to monopolize the business of banking in any relevant market. The
BHC Act also prohibits the Board from approving a proposed combination that would substantially lessen competition or tend to create a monopoly in any relevant banking
3. Deposit data are as of June 30, 1999. In this context, depository
institutions include commercial banks, savings banks, and savings
associations.
4. See 12 U.S.C. § 1842(d). A bank holding company's home state
is the state in which the total deposits of all banking subsidiaries of the
company were largest on July 1, 1966, or on the date when the
company became a bank holding company, whichever is later.
12 U.S.C. § 1841(o)(4)(C).
5. For purposes of section 3(d) of the BHC Act, the Board considers
a bank to be located in the state in which the bank operates a branch or
is chartered or headquartered. NationsBank Corporation, 84 Federal
Reserve Bulletin 858 (1998).
6. See 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and
(B). Brenton Bank has been in existence and continuously operated
for the minimum period required under state law. See Iowa Code
Ann. § 524.1805(1) (five year minimum). In addition, on consummation of the proposal, Wells Fargo and its affiliates would control less
than 10 percent of the total amount of deposits of insured depository
institutions in the United States and would not exceed applicable
deposit limitations as calculated under state law. See Iowa Code
Ann. § 524.1802(2)(b) (establishing a 15-percent deposit cap). Wells
Fargo also meets the capital, managerial, and other requirements
established under applicable law.
829
market, unless the Board finds that the anticompetitive
effects of the proposal are clearly outweighed in the public
interest by the probable effects of the proposal in meeting
the convenience and needs of the community to be served.7
The Board has carefully reviewed the competitive effects
of the proposal in the relevant banking markets in light of
all the facts of record, including the number of competitors
that would remain in the markets, the relative shares of
total deposits in depository institutions in the markets
("market deposits") controlled by the companies involved
in the transaction,8 the concentration levels of market deposits and the increase in these levels as measured by the
Herfindahl-Hirschman Index ("HHI") under the Department of Justice Merger Guidelines ("DOJ Guidelines"),
and other characteristics of the markets.9
Wells Fargo and Brenton compete directly in five banking markets: Ames,10 Cedar Rapids,11 Des Moines,12 and
Marshall County,13 all in Iowa, and Rock IslandDavenport,14 in Iowa and Illinois. In the Ames, Cedar
Rapids, and Rock Island-Davenport banking markets, con-
7. 12 U.S.C. § 1842(c).
8. Market share data are as of June 30, 1999, and are based on
calculations that include the deposits of thrift institutions at 50 percent. The Board previously has indicated that thrift institutions have
become, or have the potential to become, significant competitors of
commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin
788 (1990); National City Corporation, 70 Federal Reserve Bulletin
743 (1984). Thus, the Board has regularly included thrift deposits in
the calculation of market share on a 50-percent weighted basis. See,
e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991).
Because the Board has analyzed the competitive factors in this case as
if Wells Fargo and Brenton were a combined entity, the deposits of
Brenton Savings are included at 100 percent in the calculation of
pro forma market share. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve
Bulletin 669 (1990).
9. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a
market in which the post-merger HHI is more than 1800 is considered
highly concentrated. The Department of Justice has informed the
Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive
effects) unless the post-merger HHI is at least 1800 and the merger
increases the HHI by more than 200 points. The Department of Justice
has stated that the higher than normal HHI thresholds for screening
bank mergers for anticompetitive effects implicitly recognize the
competitive effects of limited-purpose lenders and other nondepository financial institutions.
10. The Ames banking market is defined as Boone and Story
Counties, and Clear Lake, Ellsworth, Lincoln, Lyon, Marion, and
Scott Townships in Hamilton County, Iowa.
11. The Cedar Rapids banking market is defined as Linn County and
Jefferson Township in Johnson County, Iowa.
12. The Des Moines banking market is defined as Polk County and
Linn Township in Warren County, Iowa.
13. The Marshall County banking market is defined as Marshall
County and Carlton, Highland, Indian Village, and Spring Creek
Townships in Tama County, Iowa.
14. The Rock Island-Davenport banking market is defined as Scott
County and Farmington Township in Cedar County, Iowa, and Rock
Island County except for Buffalo Prairie and Drury Townships, and
Colona, Edgord, Geneseo, and Western Townships in Henry County,
Illinois.
830
Federal Reserve Bulletin • December 2000
summation of the proposal without divestitures would be
consistent with the DOJ Guidelines and Board precedent.15
A. Des Moines Banking Market
Wells Fargo's subsidiary bank, Wells Fargo Bank Iowa,
National Association, Des Moines, Iowa ("Wells Iowa"),
is the largest depository institution in the Des Moines
banking market and controls deposits of approximately
$1.9 billion, representing 34.5 percent of market deposits.
Brenton Bank is the fifth largest depository institution
in the market and controls deposits of approximately
$372.1 million, representing 6.9 percent of market deposits. In order to mitigate the potential anticompetitive effects
of the proposal in this market, Wells Fargo has committed
to divest three branches of Brenton Bank with at least
$110 million in total deposits at the time of divestiture to a
commercial bank that currently does not operate in the
market.16 With this divestiture, the HHI for the market
would increase 314 points to 1930, and Wells Fargo would
remain the largest depository institution in the Des Moines
market with 39.3 percent of market deposits.
B. Marshall County Banking Market
In the Marshall County banking market, Wells Iowa is the
seventh largest depository institution and controls deposits
of approximately $24.3 million, representing 3.7 percent of
market deposits. Brenton Bank is the second largest depository institution in the market and controls deposits of
$184.7 million, representing 28.4 percent of market deposits. On consummation of the proposal, the HHI would
increase 213 points to 2393.
C. Mitigating Factors
As the Board has indicated in previous cases, in a market
in which the competitive effects of a proposal exceed the
15. On consummation of the proposal, Wells Fargo would become
the third largest banking organization in the Ames banking market and
control $119.3 million in deposits, representing 9.3 percent of market
deposits. The HHI would increase 30 points to 1839. In the Cedar
Rapids banking market, Wells Fargo would become the largest banking organization in the market and control $572 million in deposits,
representing 26.9 percent of market deposits. The HHI would increase
268 points to 1662. In the Rock Island-Davenport banking market,
Wells Fargo would become the largest banking organization in the
market and control $976.6 million in deposits, representing
21.2 percent of market deposits. The HHI would increase 107 points
to 1111.
16. Wells Fargo has committed to execute sales agreements for the
proposed divestitures, before consummation of the acquisition of
Brenton, with a purchaser determined by the Board to be competitively suitable. Wells Fargo also has committed that, if it is unsuccessful in completing any divestiture within 180 days of consummation, it
will transfer the unsold office(s) to an independent trustee that is
acceptable to the Board and will instruct the trustee to sell the office(s)
promptly to one or more alternative purchasers acceptable to the
Board. See BankAmerica Corporation, 78 Federal Reserve Bulletin
338 (1992); United New Mexico Financial Corporation, 11 Federal
Reserve Bulletin 484(1991).
DOJ Guidelines, the Board will consider whether other
factors tend to mitigate the competitive effects of the
proposal. The number and strength of factors necessary to
mitigate the competitive effects of a proposal depend on
the level of market concentration and the size of the
increase in market concentration.17
In reviewing the competitive effects of this proposal, the
Board has considered that several factors appear to mitigate the likely effect of the proposal on competition in the
Des Moines and Marshall County banking markets. For
example, in the Des Moines banking market, 27 banking
organizations excluding Wells Fargo would remain in the
market after the proposed acquisition. Three of these organizations would each control more than 8.8 percent of
market deposits. The market also appears to be attractive to
out-of-market and de novo competitors. Since 1997, ten
depository institutions have entered the Des Moines banking market, five by opening branches, and five de novo. An
eleventh market entrant is in formation. In addition,
Des Moines is the largest market in Iowa in terms of
deposits and is increasing in population more rapidly than
other metropolitan areas in the state.
In the Marshall County banking market, 11 banking
organizations excluding Wells Fargo would remain in the
market after the proposed acquisition, including several
large multistate banking organizations. Brenton is currently the second largest banking organization in the market, and a merged Wells Fargo/Brenton organization would
retain that position in the market. In addition, Marshall
County appears to be relatively attractive for entry by
out-of-market competitors, as it has increased in population more rapidly and is wealthier than other rural markets
in Iowa. Specifically, the population of Marshall County
has increased slightly from 1996 to 1999, while other rural
Iowa counties decreased in population, on average, during
the same period. In addition, per capita income in Marshall
County in 1998 was almost 10 percent higher than the
average for rural counties in Iowa, and in 1999, the average
deposits per bank branch in Marshall County were
60 percent higher than the average for all rural Iowa
counties. Seven banking organizations have entered the
Marshall County market by acquisition in the last three
years.
The Department of Justice has also conducted a detailed
review of the anticipated competitive effects of the proposal. The Department of Justice has advised the Board
that, in light of the proposed divestitures, consummation of
the proposal would not have a significantly adverse effect
on competition in any relevant banking market.
After carefully reviewing all the facts of record, and for
the reasons discussed in the order, the Board concludes that
consummation of the proposal would not likely result in a
significantly adverse effect on competition or on the concentration of banking resources in any of the banking
markets in which Wells Fargo and Brenton directly com-
17. See NationsBank Corporation, 84 Federal Reserve Bulletin 129
(1998).
Legal Developments
pete or in any other relevant banking market. Accordingly,
based on all the facts of record, and subject to completion
of the proposed divestitures and compliance with the related commitments, the Board has determined that the
competitive factors are consistent with approval of the
proposal.
Other Considerations
The BHC Act requires the Board, in acting on an application, to consider the financial and managerial resources and
future prospects of the companies and banks involved, the
convenience and needs of the communities to be served,
and certain supervisory factors. The Board has reviewed
these factors in light of the record, including supervisory
reports of examination assessing the financial and managerial resources of the organizations and financial information provided by Wells Fargo. Based on all the facts of
record, the Board concludes that the financial and managerial resources and the future prospects of Wells Fargo,
Brenton, and their respective depository institutions are
consistent with approval, as are the other supervisory factors the Board must consider under section 3 of the BHC
Act. In addition, considerations related to the convenience
and needs of the communities to be served, including the
records of performance of the relevant institutions under
the Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA"), are consistent with approval of the
proposal.18
Nonbanking Activities
Wells Fargo has filed notice under sections 4(c)(8) and 4(j)
of the BHC Act to acquire Brenton's nonbanking subsidiaries and thereby engage in operating a savings association
and in lending activities. The Board has determined by
regulation that these activities are closely related to banking for purposes of the BHC Act.19 Wells Fargo has committed to conduct these nonbanking activities in accordance with the limitations set forth in Regulation Y and the
Board's orders and interpretations.
In order to approve this notice, the Board is required by
section 4(j)(2) of the BHC Act to determine that the
acquisition of the nonbanking subsidiaries of Brenton by
Wells Fargo "can reasonably be expected to produce benefits to the public . . . that outweigh possible adverse effects,
18. Wells Fargo's lead bank, Wells Fargo Bank, N.A., San Francisco, California, which accounts for approximately 45 percent of the
total consolidated assets of Wells Fargo, received an "outstanding"
rating at its most recent examination for CRA performance by its
primary federal supervisor, the Office of the Comptroller of the
Currency, as of June 1998. All of Wells Fargo's other subsidiary
banks received ratings of either "outstanding" or "satisfactory" at the
most recent examinations of their CRA performance. Brenton Bank
received a CRA rating of "satisfactory" from the Federal Deposit
Insurance Corporation, as of August 1999, and Brenton Savings
received a CRA rating of "satisfactory" from the Office of Thrift
Supervision, as of January 1998.
19. See 12 C.F.R. 225.28(b)(1) and (4).
831
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound banking practices."20
As part of its evaluation of these factors, the Board
considers the financial and managerial resources of Wells
Fargo and its subsidiaries, including the companies to be
acquired, and the effect of the proposed transaction on
those resources. For the reasons noted above, and based on
all the facts of record, the Board has concluded that financial and managerial considerations are consistent with approval of the notice.
The Board also has considered the competitive effects of
Wells Fargo's proposed acquisition of the nonbanking subsidiaries of Brenton in light of all the facts of record. For
the reasons already discussed, the Board has concluded
that Wells Fargo's proposed acquisition of Brenton Savings would not likely result in decreased or unfair competition or undue concentration of resources in the Ames,
Iowa, banking market.
The Board also expects that the proposed transaction
would give Wells Fargo an increased ability to serve the
needs of its customers through the expansion of its affiliates' branch network in Iowa, and would give customers of
Brenton Bank and Brenton Savings access to products and
services offered by Wells Fargo's other bank and nonbank
affiliates, including mortgage and investment banking, insurance agency services, venture capital financing, consumer financing, trust services, international trade financing, leasing, and asset-backed lending. In addition, there
are public benefits to be derived from permitting capital
markets to operate so that bank holding companies can
make potentially profitable investments in nonbanking
companies and from permitting banking organizations to
allocate their resources in the manner they consider to be
most efficient when such investments are consistent, as in
this case, with the relevant considerations under the BHC
Act.
The Board concludes that the conduct of the proposed
nonbanking activities within the framework of Regulation Y and Board precedent is not likely to result in adverse
effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices, that woufd outweigh the public
benefits of the proposal, such as increased customer convenience and gains in efficiency. Accordingly, based on all
the facts of record, the Board has determined that the
balance of public interest factors that the Board must
consider under section 4(j)(2)(A) of the BHC Act is favorable and consistent with approval of the proposal.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the application and
notice should be, and hereby are, approved. Approval of
the application and notice is specifically conditioned on
20. 12 U.S.C. § 1843(j)(2)(A).
832
Federal Reserve Bulletin • December 2000
compliance by Wells Fargo with all the commitments made
in connection with the proposal and with the conditions
stated or referred to in this order, including Wells Fargo's
divestiture commitments. The Board's determination on
the nonbanking activities also is subject to all the terms and
conditions set forth in Regulation Y, including those in
sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and
225.25(c)), and the Board's authority to require such modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to ensure compliance with, and to prevent evasion of, the provisions of the BHC Act and the Board's
regulations and orders thereunder. For purposes of the
transaction, the commitments and conditions referred to in
this order shall be deemed to be conditions imposed in
writing by the Board in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The acquisition of the subsidiary banks of Brenton shall
not be consummated before the fifteenth calendar day after
the effective date of this order, and the proposal shall not be
consummated later than three months after the effective
date of this order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 23, 2000.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Wells Fargo & Company
San Francisco, California
Order Approving Acquisition of a Bank Holding
Company
Wells Fargo & Company ("Wells Fargo"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842)
to acquire First Security Corporation, Salt Lake City, Utah
("First Security"), and thereby acquire the subsidiary
banks of First Security.1 Wells Fargo also has requested the
Board's approval under sections 4(c)(8) and 4(j) of the
BHC Act (12 U.S.C. §§ 1843(c)(8) and 1843(j)) and section 225.24 of the Board's Regulation Y (12 C.F.R. 225.24)
to acquire certain nonbanking subsidiaries of First Security
1. First Security controls the following subsidiary banks: First
Security Bank, National Association, Ogden, Utah; First Security
Bank of California, National Association, West Covina, California;
First Security Bank of Nevada, Las Vegas, Nevada; and First Security
Bank of New Mexico, National Association, Albuquerque, New
Mexico.
and thereby engage in permissible nonbanking activities.2
In addition, Wells Fargo has filed an application under
section 25 of the Federal Reserve Act (12 U.S.C. §§ 601
et seq.) and the Board's Regulation K (12 C.F.R. Part 211)
to acquire certain foreign operations and agreement corporation subsidiaries of First Security.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(65 Federal Register 45,081 and 45,986 (2000)). The time
for filing comments has expired, and the Board has considered the proposal and all comments received in light of the
factors set forth in sections 3 and 4 of the BHC Act.
Wells Fargo, with total consolidated assets of
$236.9 billion, is the seventh largest commercial banking
organization in the United States, controlling approximately 3.4 percent of banking assets in the United States
("total U.S. banking assets").3 Wells Fargo operates subsidiary banks in 23 western and midwestern states. Wells
Fargo is the third largest commercial banking organization
in California, controlling deposits of $55.6 billion, representing approximately 13 percent of total deposits in insured depository institutions in the state ("state deposits"). 4 Wells Fargo also engages in a broad range of
permissible nonbanking activities, including mortgage
banking, consumer finance, securities brokerage, and
equipment leasing.
First Security, with total consolidated assets of
$22.5 billion, is the 39th largest commercial banking organization in the United States, controlling less than 1 percent of total U.S. banking assets. First Security is the
largest commercial banking organization in Utah, controlling deposits of $5.1 billion, representing approximately
26.5 percent of state deposits. First Security also engages
in a broad range of permissible nonbanking activities in the
United States, including underwriting and dealing in debt
and equity securities, providing financial consulting services, and providing data processing services.
After consummation of the proposal and accounting for
the proposed divestitures discussed in this order, Wells
Fargo would remain the seventh largest commercial banking organization in the United States, with total consolidated assets of $259.4 billion, representing approximately
3.8 percent of total U.S. banking assets. Wells Fargo also
would become the largest commercial banking organization in Utah, controlling deposits of $5.5 billion, representing approximately 28.8 percent of state deposits. In addition, Wells Fargo would become the largest commercial
banking organization in Idaho and Nevada.
2. These nonbanking activities are listed in Appendix A. Wells
Fargo also is a financial holding company and intends to acquire the
remaining nonbanking subsidiaries of First Security under section 4(k)(4) of the BHC Act.
3. Asset and ranking data are as of June 30, 2000.
4. Deposit data are as of June 30, 1999, and are adjusted to reflect
mergers and acquisitions approved after this date. In this context,
depository institutions include commercial banks, savings banks, and
savings associations.
Legal Developments
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. For purposes of the BHC Act, the home state of Wells
Fargo is California,5 and the subsidiary banks of First
Security are located in California, Idaho, Nevada, New
Mexico, Oregon, Utah, and Wyoming.6 All the conditions
for an interstate acquisition enumerated in section 3(d) are
met in this case.7 In light of all the facts of record, the
Board is permitted to approve the proposed transaction
under section 3(d) of the BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or would be
in furtherance of any attempt to monopolize the business of
banking in any relevant market. The BHC Act also prohibits the Board from approving a proposed bank acquisition
that would substantially lessen competition in any relevant
banking market, unless the Board finds that the anticompetitive effects of the proposal are clearly outweighed in
the public interest by the probable effect of the proposal in
5. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of the company were the
largest on July 1, 1966, or the date on which the company became
a bank holding company, whichever is later. 12 U.S.C.
§ 1841(o)(4)(C).
6. For purposes of section 3(d), the Board considers a bank to be
located in the states in which the bank is chartered, headquartered, or
operates a branch. In addition to the interstate aspects of this proposal,
Wells Fargo would acquire a California bank in an intrastate transaction.
7. Wells Fargo is adequately capitalized and adequately managed, as
defined by applicable law. 12 U.S.C. § 1842(d)(1)(A). Each subsidiary
bank of First Security has been in existence and operated continuously
for at least the period of time required by applicable state law. See
12 U.S.C. § 1841(d)(1)(B). On consummation of the proposal and
after accounting for the proposed divestitures, Wells Fargo and its
affiliates would control less than 10 percent of the total amount of
deposits of insured depository institutions in the United States, and
less than 30 percent, or the applicable percentage established by state
law, of total deposits held by insured depository institutions in each
state in which the insured depository institutions of Wells Fargo and
First Security both operate, except as discussed below. See Idaho
Code § 26-1606 (LEXIS 1999). Wells Fargo would control more than
30 percent of state deposits in Idaho. However, the state deposit cap
contained in section 3(d) does not bar Board approval of a proposal if
the appropriate state bank supervisor approves a transaction that
exceeds the cap under a provision of state law that does not discriminate against out-of-state banking organizations. See 12 U.S.C.
§ 1842(d)(2)(D)(ii). The Idaho state bank supervisor has approved the
proposed transaction under an appropriate provision of law and,
consequently, the state deposit cap contained in section 3(d) does not
prevent the Board from approving the proposal. After reviewing the
laws of each state in which Wells Fargo would acquire banking
operations and consulting with the appropriate state banking regulator
in each of those states about the proposed transaction, the Board has
concluded that all other requirements of section 3(d) would be met on
consummation of the proposal.
833
meeting the convenience and needs of the community to be
served.8
Wells Fargo and First Security are among the largest
providers of banking services in the western United States
and compete directly in 31 local banking markets in eight
states.9 The Board has reviewed carefully the competitive
effects of the proposal in these banking markets in light of
all the facts of record, including the number of competitors
that would remain in the markets, the relative share of total
deposits in depository institutions in the markets ("market
deposits") controlled by Wells Fargo and First Security,10
the concentration level of market deposits and the increase
in this level as measured by the Herfindahl-Hirschman
Index ("HHI") under the Department of Justice Guidelines
("DOJ Guidelines"),11 and other characteristics of the
markets.12
A. Certain Banking Markets without Divestitures
Consummation of the proposal without divestitures would
be consistent with Board precedent and the DOJ Guidelines in 18 banking markets.13 After consummation of the
proposal, nine of these banking markets would remain
moderately concentrated as measured by the HHI.14 The
other nine banking markets would be highly concentrated
8. 12 U.S.C. § 1842(c)(1).
9. The banking markets are described in Appendix B.
10. Market share data are as of June 30, 1999, and are based on
calculations in which the deposits of thrift institutions are included at
50 percent, except as discussed in the order. The Board has indicated
previously that thrift institutions have become, or have the potential to
become, significant competitors of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989);
National City Corporation, 70 Federal Reserve Bulletin 743 (1984).
Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50-percent weighted basis. See, e.g., First
Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991).
11. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984),
a market is considered moderately concentrated if the post-merger
HHI is between 1000 and 1800 and highly concentrated if the postmerger HHI is more than 1800. The Department of Justice has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by more than 200 points. The Department
of Justice has stated that the higher than normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limited-purpose lenders and other
nondepository financial institutions.
12. Several commenters expressed concern that the proposal would
have anticompetitive effects in the relevant banking markets. The
Board has carefully reviewed these comments in connection with its
consideration of the competitive effects of the proposal.
13. These markets are: Hesperia-Apple Valley-Victorville, Los Angeles, and Riverside-San Bernardino, California; Idaho Falls and
Sandpoint, Idaho; Reno, Nevada; Rio Arriba County, Roswell-Artesia,
and Santa Fe, New Mexico; Corvallis, Deschutes, Ontario, Portland,
and Salem, Oregon; El Paso, Texas; Ogden, and Provo-Orem, Utah;
and Spokane, Washington. The effects of the proposal on the concentration of banking resources in these markets are described in Appendix C.
14. These markets are: Hesperia-Apple Valley-Victorville, Los Angeles, Riverside-San Bernardino, Roswell-Artesia, Santa Fe, Corvallis, Ontario, Salem, and Spokane.
834
Federal Reserve Bulletin • December 2000
as measured by the HHI, but the increase in the HHI would
be within the threshold levels in the DOJ Guidelines.15
B. Certain Banking Markets with Divestitures
To reduce the potential for adverse effects on competition
in nine of the 13 remaining markets in which Wells Fargo
and First Security compete directly,16 Wells Fargo has
committed to divest 37 branches, which account for approximately $1.4 billion in deposits.17 In light of the proposed divestitures, consummation of the proposal would be
consistent with Board precedent and the DOJ Guidelines in
eight of the markets.18 The transaction would result in no
increase in the HHI in four of these markets: South Lake
Tahoe, Hailey, Box Elder, and Park City. In three of the
remaining markets, Boise, Carson City, and Albuquerque,
the increase in the HHI would be within the threshold
levels in the DOJ Guidelines. In the Las Cruces market, a
large number of competitors relative to total market deposits would remain, and the market would remain moderately
concentrated as measured by the HHI.
C. Other Banking Markets
In the Las Vegas, Nevada; Salt Lake City, Utah; Pocatello
and Twin Falls, Idaho; and Truckee-Tahoe California, markets, consummation of the proposed acquisition, accounting for the proposed divestitures in the Las Vegas market,
15. These markets are: Idaho Falls, Sandpoint, Reno, Rio Arriba
County, Deschutes, Portland, El Paso, Ogden, and Provo-Orem.
16. Several commenters criticized Wells Fargo for not identifying
the specific branches that it would divest in the Box Elder, Carson
City, Park City, Sandpoint, and South Lake Tahoe markets during the
public comment period and indicated that this omission hindered their
ability to comment on the competitive effects of the proposal in these
markets. The Board has concluded, however, that the public information provided by Wells Fargo on the proposed divestitures, including
the resulting structural effects in each market, was sufficient for
interested persons to evaluate and comment on the competitive effects
of the proposal.
17. These markets are: South Lake Tahoe, California; Boise and
Hailey, Idaho; Carson City and Las Vegas, Nevada; Albuquerque and
Las Cruces, New Mexico; and Box Elder and Park City, Utah. With
respect to each market in which Wells Fargo has committed to divest
offices to mitigate the anticompetitive effects of the proposal, Wells
Fargo has committed to execute, before consummation of the proposal, a sales agreement for the proposed divestiture with a purchaser
determined by the Board to be competitively suitable and to complete
the divestiture within 180 days after consummation of the proposal.
Wells Fargo also has committed that, if it is unsuccessful in completing any divestiture within 180 days of consummation, it will transfer
the unsold branch(es) to an independent trustee that is acceptable to
the Board and will instruct the trustee to sell the branch(es) promptly
to one or more alternative purchasers acceptable to the Board. See
BankAmerica Corporation, 78 Federal Reserve Bulletin 338 (1992);
United New Mexico Financial Corporation, 11 Federal Reserve
Bulletin 484 (1991). Wells Fargo also has committed to submit to the
Board, before consummation of the proposal, an executed trust agreement acceptable to the Board stating the terms of the divestitures.
18. These markets are: Albuquerque, Boise, Box Elder, Carson City,
Hailey, Las Cruces, Park City, and South Lake Tahoe. The effects of
the proposed merger and divestitures on the concentration of banking
resources in these markets are described in Appendix D.
would exceed the DOJ Guidelines. In these markets, the
Board has considered whether other factors either mitigate
the competitive effects of the proposal in the market or
indicate that the proposal would have a significantly adverse effect on competition in the market.19
Las Vegas, Nevada. Wells Fargo operates the second
largest depository institution in the market, controlling
deposits of $2.8 billion, representing approximately
26.2 percent of market deposits. First Security operates the
fourth largest depository institution in the market, controlling deposits of $904 million, representing approximately
8.3 percent of market deposits. Wells Fargo proposes to
divest seven branches in the market, with $392.5 million of
deposits, representing approximately 3.6 percent of market
deposits, to an out-of-market competitor. After the proposed merger and divestiture, Wells Fargo would operate
the largest depository institution in the market, controlling
deposits of $3.3 billion, representing 30.9 percent of market deposits. The HHI would increase by 213 points to
2062.
Several factors indicate that the increase in market concentration in the Las Vegas banking market, as measured
by the HHI, does not reflect a significantly adverse effect
on competition. Twenty-two other commercial banks and
savings associations would remain in the market as competitors of Wells Fargo, including one large multistate
banking organization with more than 30 percent of market
deposits and another large multistate banking organization
with more than 10 percent of market deposits. The market
also has several factors that make it attractive for entry by
out-of-market competitors. From 1990 to 1999, the population in the Las Vegas Metropolitan Statistical Area
("MSA") increased 73.5 percent, which was the largest
percentage increase in population in any MSA during this
period. From 1990 to 1999, employment in Clark County,
Nevada, the location of the City of Las Vegas, increased
57.6 percent and, from 1990 to 1998, per capita income in
the Las Vegas MSA increased 43 percent. In the Las Vegas
banking market, from June 1995 to June 1999, deposits
increased 71.4 percent, compared with a national rate of
increase of 18 percent during this period. Ten depository
institutions have entered the market de novo since 1995.
Salt Lake City, Utah. Wells Fargo operates the sixth
largest depository institution in the market, controlling
deposits of $387.1 million, representing approximately
4.9 percent of market deposits. First Security operates the
largest depository institution in the market, controlling
deposits of $2.8 billion, representing approximately
34.8 percent of market deposits. On consummation of the
proposal, Wells Fargo would operate the largest depository
institution in the market, controlling deposits of $3.1 billion, representing approximately 39.7 percent of market
deposits. The HHI would increase by 340 points to 2234.
19. The number and strength of factors necessary to mitigate the
competitive effects of a proposal depend on the level of concentration
and size of the increase in market concentration. See NationsBank
Corporation, 84 Federal Reserve Bulletin 129 (1998).
Legal Developments
The presence of numerous bank and thrift competitors is
an important consideration in this market. Eighteen other
commercial banks and three savings associations would
remain after consummation of the proposal, including a
large bank holding company that would control more than
18 percent of market deposits. The third, fourth, and fifth
largest depository institutions in the market are operated by
large multistate banking organizations, each of which controls between 4 percent and 10 percent of market deposits.
In reviewing the competitive effects of the proposal, the
Board also has taken into account that credit unions are
particularly active competitors in the Salt Lake City market. The Board has noted previously that numerous credit
unions in the market are open to all or a substantial
majority of persons in the market and operate through
street-level branches that are accessible to the public.20 In
light of the activities, open membership, branch operations,
size, number, and market share of credit unions in the
market, the Board has concluded that credit unions exert a
competitive influence that mitigates in part the potential
anticompetitive effects of the proposal.21
In addition, the Salt Lake City market is attractive for
entry by additional depository institutions. The population
in the Salt Lake City Ranally Marketing Area ("RMA")
increased 17.6 percent from 1990 to 1999, which was
significantly higher than the national rate of increase. Employment in the City of Salt Lake City increased 30 percent
during this period, which was more than twice the national
rate.22
Pocatello, Idaho. Wells Fargo operates the fifth largest
depository institution in the market, controlling deposits of
$18.7 million, representing approximately 5 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of
$127.2 million, representing approximately 34.4 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the largest depository institution in
the market, controlling deposits of approximately $145.9
million, representing approximately 39.4 percent of market
deposits. The HHI would increase by 347 points to 2541.
Several factors mitigate the potential adverse effects that
may result from the proposal in the Pocatello banking
market. A large number of competing depository institutions, relative to total market deposits, would remain in the
market. Eight commercial banks, including Wells Fargo,
20. See First Security Corporation, 86 Federal Reserve Bulletin
122, 126 (2000) ("First Security Order").
21. Thirty-one credit unions with competitively significant characteristics compete with banks in the Salt Lake City market and account
for approximately 19.9 percent of total deposits in the market. Credit
unions control approximately 8.5 percent of all insured deposits in the
United States. Although these credit unions are a competitive force,
the Board has not considered them to be full competitors of banks
because they do not provide the full range of banking products and
services. If the Board were to include the deposits of these credit
unions in the market and weight them at 50 percent, Wells Fargo
would have a post-merger market share of 35.2 percent, and the HHI
would increase by 267 points to 1768.
22. Employment increased 12.4 percent in the United States between 1990 and 1998.
835
and two savings associations would remain in the market
after consummation of the proposal. One of these savings
institutions is a significant source of commercial loans in
the market. Twelve credit unions also compete in the
market and control approximately 29 percent of insured
deposits in the market. The largest credit union in the
market controls approximately 4.9 percent of insured deposits in the market and is open for membership by substantially all residents of the market.23
The market also has several characteristics that make it
attractive for entry. From 1990 to 1999, population in the
market increased 12.7 percent; employment in the City of
Pocatello increased 31.9 percent; and per capita income in
the Pocatello MSA increased 39.4 percent. Four commercial banks and one thrift institution have entered the market
de novo since 1995. One of these commercial banks has
become the fourth largest depository institution in the
market and controls 7.9 percent of market deposits. Moreover, the market is becoming less concentrated. From June
1996 to June 1999, the market's HHI decreased approximately 500 points.
Twin Falls, Idaho. Wells Fargo operates the seventh
largest depository institution in the market, controlling
deposits of $24.5 million, representing approximately
2.6 percent of market deposits. First Security operates the
largest depository institution in the market, controlling
deposits of $379.7 million, representing approximately
39.6 percent of market deposits. On consummation of the
proposal, Wells Fargo would operate the largest depository
institution in the market, controlling deposits of approximately $404.2 million, representing approximately
42.2 percent of market deposits. The HHI would increase
by 203 points to 2471.
Several factors mitigate the adverse competitive effects
that might result from the proposal in the Twin Falls
market. From 1990 to 1999, the population in the City of
Twin Falls increased 23 percent and employment increased
27 percent. Eleven depository institutions, including Wells
Fargo, would remain in the market. Two commercial bank
competitors of Wells Fargo each would control more than
15 percent of market deposits, and three large multistate
banking organizations operate in the market. Two banks
and one savings association have entered the market
de novo since 1994.
Truckee-Tahoe, California. Wells Fargo operates the
fourth largest depository institution in the market, controlling deposits of $71 million, representing approximately
12.9 percent of market deposits. First Security operates the
fifth largest depository institution in the market, controlling
deposits of $45.8 million, representing approximately
8.3 percent of market deposits. On consummation of the
proposal, Wells Fargo would operate the third largest depository institution in the market, controlling deposits of
approximately $116.8 million, representing approximately
23. If the Board were to include the deposits of this credit union in
the market at 50 percent, Wells Fargo would have a post-merger
market share of 38.1 percent and the HHI would increase by 324
points to 2390.
836
Federal Reserve Bulletin • December 2000
21.2 percent of market deposits. The HHI would increase
by 214 points to 2485.
A number of factors indicate that the competitive effects
of the proposal are not likely to be significantly adverse in
this market. First, a large number of financial institutions
compete in this market relative to the size of total market
deposits. Five commercial banks, including Wells Fargo,
and one savings association would remain in the market.
Three of the competing commercial banks, including the
two largest depository institutions in the market, are subsidiaries of large multistate banking organizations. Second,
the Truckee-Tahoe banking market has characteristics that
make it attractive for entry. From 1990 to 1998, the population in the market's principal towns increased 15 percent,
more than twice the average for California. From 1990 to
1999, employment increased 21 percent in Truckee and
32.4 percent in the north shore area of Lake Tahoe. From
June 1996 to June 1999, total market deposits in TruckeeTahoe increased 18.9 percent. One commercial bank entered the market de novo in 1995.
Wells Fargo is, and after the proposed transaction would
remain, well capitalized and the earnings of the company
are strong. The proposed acquisition is structured as an
exchange of shares of Wells Fargo for shares of First
Security, and Well Fargo would not incur any debt as a
result of the transaction. The Board has considered that
Wells Fargo recently acquired other bank holding companies and that Wells Fargo's management successfully integrated the acquired institutions into Wells Fargo's existing
operations.
Based on all the facts of record, including confidential
reports of examination and other supervisory information
received from the primary federal banking agency that
supervises each institution, the Board has concluded that
considerations relating to the financial and managerial resources and future prospects of Wells Fargo, First Security,
and their respective banking subsidiaries are consistent
with approval, as are the other supervisory factors that the
Board must consider under section 3 of the BHC Act.
Convenience and Needs Considerations
D. Views of Other Agencies and Conclusion
The Department of Justice also has conducted a detailed
review of the anticipated competitive effects of the proposal. The Department has advised the Board that, in light
of the proposed divestitures, consummation of the proposal
would not be likely to have a significantly adverse effect on
competition in any relevant banking market. The Office of
the Comptroller of the Currency ("OCC") and the Federal
Deposit Insurance Corporation ("FDIC") have been afforded an opportunity to comment and have not objected to
consummation of the proposal.
After carefully reviewing all the facts of record, including public comments on the competitive effects of the
proposal, and for the reasons discussed in the order and
appendices, the Board has concluded that consummation of
the proposal would not be likely to result in a significantly
adverse effect on competition or on the concentration of
banking resources in any of the 31 markets in which Wells
Fargo and First Security both compete or in any other
relevant banking market. Accordingly, based on all the
facts of record and subject to completion of the proposed
divestitures, the Board has determined that competitive
factors are consistent with approval of the proposal.
Financial, Managerial, and Other Supervisory Factors
Section 3 of the BHC Act requires the Board to consider
the financial and managerial resources and future prospects
of the companies and banks involved in the proposal and
other supervisory factors. The Board has carefully considered these factors in light of all the facts of record, including public comments.24
24. Several commenters expressed concern about the financial and
managerial resources of Wells Fargo and First Security. Some commenters asserted that the rate of Wells Fargo's expansion through
In acting on a proposal under section 3 of the BHC Act, the
Board is required to consider the effects of the proposal on
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
("CRA"). 25 The CRA requires the federal financial supervisory agencies to encourage financial institutions to help
meet the credit needs of local communities in which they
operate, consistent with safe and sound operation, and
requires the appropriate federal supervisory agency to take
into account an institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income ("LMI") neighborhoods, in evaluating
bank expansion proposals. The Board has carefully considered the convenience and needs factor and the CRA performance records of the subsidiary depository institutions of
Wells Fargo and First Security in light of all the facts of
record, including public comments received on the effect
the proposal would have on the communities to be served
by the combined organization.
A. Summary of Public Comments
The Board received approximately 25 comments on the
proposal. Most comments expressed concerns about the
records of either Wells Fargo, First Security, or both in
meeting the convenience and needs of the communities
they serve.26 Commenters asserted that Wells Fargo's commitment to lending, community investment, and local deci-
bank acquisitions has compromised its ability to operate in a safe and
sound manner. Commenters also noted that First Security recently
experienced a decline in earnings.
25. 12 U.S.C. §2901 et seq.
26. Several commenters who objected to the transaction stated that,
if the Board were to approve the transaction, the approval should be
subject to conditions suggested by the commenters.
Legal Developments
sion making had declined after previous bank acquisitions,
particularly in Wells Fargo's home state of California, and
expressed concern that Wells Fargo's proposed acquisition
of First Security would worsen this perceived trend. Commenters also expressed concern about Wells Fargo's record
of lending to LMI and minority individuals and small
businesses in various areas and about Wells Fargo's record
of providing banking services, particularly in LMI areas.27
One commenter alleged specifically that Wells Fargo Home
Mortgage, Inc. ("WFHM", formerly Norwest Mortgage,
Inc.), a nonbanking subsidiary engaged in mortgage lending, denied applications by minority individuals at a disproportionately high rate. Some commenters also expressed
concern that Wells Fargo had unusually high default rates
on mortgage loans made in Washington. In addition, several commenters questioned the business practices of Wells
Fargo's subprime lending operations.28
Some commenters also criticized First Security's record
of home mortgage lending to LMI and minority individuals, particularly in Idaho, Oregon, Nevada, and Washington. These commenters alleged that First Security's subsidiary banks did not market conventional and governmentsubsidized loan products adequately to LMI and minority
individuals, and that the banks denied loan applications of
LMI and minority applicants at a disproportionately high
rate. They also asserted that First Security had a poor
record of providing banking products and services to LMI
individuals and communities in Idaho, Oregon, and Washington.
B. CRA Performance Examinations
The Board long has held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the CRA. As
provided in the CRA, the Board evaluates the record of
performance of an institution in light of examinations by
the appropriate federal supervisors of the CRA performance records of the relevant institutions. An institution's
most recent CRA performance evaluation is a particularly
important consideration in the applications process because
27. Commenters expressed concern about Wells Fargo's record of
home mortgage and small business lending to LMI and minority
borrowers in California, Idaho, Montana, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington, and Wisconsin. A coalition of
commenters provided survey data from several states in support of its
allegations. In particular, commenters alleged that Wells Fargo made a
disproportionately low share of its mortgage loans to LMI and minority borrowers relative to these borrower's share of the general population and lagged behind other lenders in the share of its mortgage loans
originated among these groups.
28. A coalition of commenters also asserted that Wells Fargo's
record of lending to minority individuals suffered as a result of a lack
of diversity among Wells Fargo's employees. The BHC Act does not
authorize the Board to consider the racial composition of any organization's employees. Under regulations of the Department of Labor,
the banking subsidiaries of Wells Fargo are required to file reports
with the Equal Employment Opportunity Commission ("EEOC")
concerning all employees, and the EEOC has jurisdiction to determine
whether companies are in compliance with equal employment opportunity statutes. See 41 C.F.R. 60-1.7(a), 60-1.40.
837
it represents a detailed, on-site evaluation of the institution's overall record of performance under the CRA by its
appropriate federal supervisor.29
All Wells Fargo's subsidiary banks received either "outstanding" or "satisfactory" ratings at the most recent
examinations of their CRA performance. In particular,
Wells Fargo's lead bank, Wells Fargo Bank, N.A., San
Francisco, California ("Wells Fargo Bank"), 30 which accounts for approximately 45 percent of the total consolidated assets of Wells Fargo, received an "outstanding"
rating at its most recent CRA examination by its primary
federal supervisory agency, the OCC, as of June 1998.31
All First Security's subsidiary banks received either "outstanding" or "satisfactory" ratings at the most recent
examinations of their CRA performance. In particular, First
Security Bank, N.A., Salt Lake City, Utah, ("First Security
Bank"), which is First Security's lead bank and represents
approximately 76 percent of the assets controlled by First
Security, received an "outstanding" rating from the OCC,
as of May 1999.32
29. See Interagency Questions and Answers Regarding Community
Reinvestment, 64 Federal Register 23,618 and 23,641 (1999).
30. Wells Fargo Bank operates in California, where it holds
81 percent of its deposits, and eight other western states.
31. Norwest Corporation acquired Wells Fargo in 1998 and retained
the Wells Fargo name and is in the process of merging and renaming
banks under the combined organization. See Norwest Corporation, 84
Federal Reserve Bulletin 1088 (1998). Norwest Bank Montana, N.A.,
Billings, Montana (now Wells Fargo Bank Montana, N.A.), received
an "outstanding" CRA performance rating from the OCC, as of
August 1997. Although Wells Fargo Bank Wisconsin, N.A., Milwaukee, Wisconsin, has not been examined for CRA performance, each of
its predecessor banks received at least a "satisfactory" CRA performance rating from its appropriate federal supervisory agency: Norwest Bank Wisconsin, N.A., Milwaukee, Wisconsin, received an
"outstanding" CRA performance rating from the OCC, as of November 1996; Norwest Bank La Crosse, N.A., La Crosse, Wisconsin,
received a "satisfactory" CRA performance rating from the OCC, as
of February 1997; and Midamerica Bank Hudson, Hudson, Wisconsin, received a "satisfactory" CRA performance rating from the
FDIC, as of March 1995 (before the acquisition of the bank by
Norwest Corporation). Norwest Bank South Dakota, N.A., Sioux
Falls, South Dakota, received an "outstanding" CRA performance
rating from the OCC, as of November 1996. Norwest Bank New
Mexico, N.A., Albuquerque, New Mexico (now Wells Fargo Bank
New Mexico, N.A.), received a "satisfactory" CRA performance
rating from the OCC, as of July 1997. Norwest Bank Nevada, N.A.,
Las Vegas, Nevada (now Wells Fargo Bank Nevada, N.A.), received a
"satisfactory" CRA performance rating from the OCC, as of August
1999. Dial Bank, Sioux Falls, South Dakota (now Wells Fargo Financial Bank), a credit card bank controlled by Wells Fargo, received an
"outstanding" CRA performance rating from the FDIC, as of June
1999.
32. First Security Bank New Mexico, National Association, Albuquerque, New Mexico, received an "outstanding" CRA performance
rating from the OCC, as of December 1995; First Security Bank of
Nevada, Las Vegas, Nevada, received a "satisfactory" CRA performance rating from the Federal Reserve Bank of San Francisco, as of
January 1999. Although First Security Bank California, West Covina,
California, has not been examined for CRA performance, its predecessor banks received "satisfactory" CRA performance ratings from
their appropriate federal financial supervisory agencies: California
State Bank, West Covina, California, received a "satisfactory" CRA
performance rating from the FDIC, as of July 1996; and Marine
838
Federal Reserve Bulletin • December 2000
Examiners found no evidence of prohibited discrimination or other illegal credit practices, and identified no
violations of fair lending laws, at any subsidiary bank of
Wells Fargo or First Security.33 Examiners also reviewed
the assessment areas delineated by the subsidiary banks of
Wells Fargo and First Security and found that these assessment areas were reasonable and did not arbitrarily exclude
LMI areas.34
C. Wells Fargo's CRA Performance Record Overview35
Examiners of Wells Fargo Bank noted that the bank had
adopted a business strategy that concentrated on small
business lending and de-emphasized residential lending.
As a result, the bank's small business lending in California
increased by $2.7 billion compared with the period covered
in its previous examination, while its residential lending
decreased by $2.2 billion.36 During the review period,
which covered 1996, 1997, and the first quarter of 1998,
Wells Fargo Bank made approximately 239,000 small business loans, totaling approximately $9.3 billion.37 Twentysix percent of these loans were made to businesses located
in LMI areas. Examiners concluded that Wells Fargo
Bank's gains in small business lending more than offset the
decline in its residential lending.38 Moreover, of the resi-
National Bank, Irvine, California, received a "satisfactory" CRA
performance rating from the OCC, as of September 1996.
33. One commenter opposed to the proposal alleged that Wells
Fargo discriminated against him in a loan transaction. A copy of the
comment was provided to the OCC, the primary federal supervisor of
the subsidiary bank engaged in the alleged discrimination. The Board
also has reviewed this comment in light of all the facts of record,
including examinations of the relevant bank under the CRA.
34. Wells Fargo Bank engages in subprime lending through two
business units of WFHM, Wells Fargo Mortgage Resources (formerly
Directors Acceptance) and Wells Fargo Equity Resources. In addition,
Wells Fargo engages in subprime lending through Wells Fargo Financial, Inc. (formerly Norwest Financial, Inc.). Commenters alleged that
these subprime lending units engage in predatory lending by targeting
minority individuals for subprime loan products. The Board forwarded comments containing these allegations to the Department of
Housing and Urban Development, the Department of Justice, and the
Federal Trade Commission, which have responsibility for enforcing
fair lending laws for nondepository lending companies. Wells Fargo
has stated that its subprime lending subsidiaries provide financing to
customers who may not otherwise qualify for credit and has provided
information about steps these subsidiaries take to ensure that individuals who qualify for conventional loans are informed about prime
credit products.
35. The Board recently reviewed in detail the record of Wells Fargo
Bank under the CRA. See Wells Fargo & Company, 86 Federal
Reserve Bulletin 602 (2000).
36. Numerous commenters criticized Wells Fargo for its declining
record of residential lending and expressed concern that this trend
would continue after it acquired First Security.
37. In this context, "small business loans" means loans to businesses in amounts less than $1 million. Wells Fargo Bank also made
33 percent of its small business loans to businesses with gross annual
revenues less than $1 million ("loans to small businesses").
38. Although the Board has recognized that banks help to serve the
banking needs of communities by making a variety of products and
services available, the CRA does not require an institution to provide
any specific types of products or services, such as mortgage or small
business loans, in their assessment areas.
dential loans made by the bank, 36 percent, totaling
$240 million, were made to LMI borrowers. Examiners of
Wells Fargo's other subsidiary banks observed that these
banks were active in residential lending and, in general,
that their residential lending was well distributed among
borrowers and geographies of different income levels.
Examiners stated that Wells Fargo Bank exhibited a
strong level of community development lending, particularly in California, Arizona, and Washington, where it
originated 149 community development loans, totaling approximately $651 million. In addition, the bank made more
than 2,000 qualified community development investments,
totaling more than $227 million, to capitalize loan pools,
community development corporations, and governmentsubsidized programs and to support nonprofit developers,
social services, and support groups. Approximately
$26 million was invested in regional and national organizations that helped to address affordable housing and small
business credit needs.39
Examiners determined that Wells Fargo Bank's delivery
systems were reasonably accessible to individuals and geographical areas of all income levels throughout the bank's
58 assessment areas. Examiners reported that Wells Fargo
Bank offered a variety of loan and deposit products through
its branch network, and that the bank offered several alternative delivery systems and products that improved the
availability of these products to LMI individuals 40
California. Wells Fargo Bank's business and residential
lending in California represented 77 percent of the bank's
total lending activity. Examiners found that Wells Fargo
Bank had a very strong lending record in California, the
bank's primary geographic market, based on the bank's
large volume of community development lending to support low-income and very-low-income housing develop-
39. One commenter criticized Wells Fargo's record of serving
Native American communities and individuals. Examiners found that
Wells Fargo Bank provided three loan facilities, totaling $32 million,
to a Native American tribal organization to support construction of a
shopping center and recreational facility in a low-income area of a
reservation in Arizona and provided economic development loans,
totaling $7 million, to Native American tribes in Oregon. Moreover,
Wells Fargo represented that it has various programs and investments
designed to meet the needs of Native American communities. Examples of such programs include the Native American Banking Services
Program, which offers credit for reservation development and infrastructure improvements; a $300,000 contribution in 1999 to the First
Nations Development Institute to support training and technical assistance for Native American communities to increase their ability to use
working capital; and a commitment to invest more than $2 million in
the formation of the Native American National Bank, which would be
based in Denver and would serve Native American tribes nationwide.
40. Wells Fargo provided additional information to the Board about
the low-cost and basic deposit services its subsidiary banks offer and
the methods Wells Fargo uses to promote these services to LMI
individuals and communities. For example, Wells Fargo Bank represented that it offers free checking accounts throughout its retail
banking territory and provides electronic benefits transfer services
designed to assist low-income individuals who do not have a banking
relationship or are otherwise underserved to receive federal benefits
electronically. Wells Fargo also represented that almost one-half of its
retail branches are within one mile of an LMI area and that it has an
extensive supermarket retail network.
Legal Developments
ment and the bank's large volume of small business loans
in LMI areas.41 Wells Fargo Bank also made approximately 7,000 residential loans in California, totaling approximately $700 million.
Examiners considered Wells Fargo Bank to be a leader
in providing financing for affordable housing. During the
review period, Wells Fargo Bank originated 99 community
development loans, totaling $469 million. These loans
included financing for 64 affordable housing projects to
help construct more than 4,300 affordable housing units,
which helped meet an important housing- related lending
need in California. The examination report observed that
more than one-half of Wells Fargo Bank's financing for
affordable housing projects was classified as highly complex under CRA regulations, including arrangements using
low-income housing tax credits ("LIHTCs") and
government-sponsored programs.
Examiners particularly commended the bank for its innovative approach to and overall level of small business
lending in California, where the bank made approximately
191,000 small business loans, totaling more than $7 billion. Wells Fargo Bank was the leading small business
lender in most of its assessment areas and in the state
overall and was a leading small business lender in LMI
areas in California. The bank originated one out of every
three small business loans made by retail banks and savings associations in LMI areas in the state.
Examiners also found that the bank's delivery systems
were accessible throughout the state, including LMI areas.
Twenty-eight percent of California census tracts were designated as LMI areas, and 22 percent of Wells Fargo
Bank's branches were in LMI areas. In addition, 7 percent
of the bank's branches were on the border of LMI areas
and an additional 20 percent of its branches were within
one mile of LMI areas. Examiners concluded that the
bank's geographic branch distribution compared favorably
with the geographic distribution of residents by income
level in the state. Branch hours were reasonable and convenient to LMI areas and individuals, and branch opening
and closing activity during the review period did not adversely affect access to the bank's delivery systems by LMI
individuals.
Idaho. Wells Fargo Bank originated 2,164 small business loans in Idaho, totaling $107 million. More than
50 percent of the bank's small business loans were made to
41. Several commenters from California alleged that Wells Fargo
had downgraded its CRA and community development functions.
Wells Fargo responded that it had upgraded its community development structure in California to make the company more responsive to
local credit needs and provided information about the company's
current CRA structure in the state. Moreover, Wells Fargo stated that
it extended more than $195 million in community development loans
in 1999 and provided $205 million in community development loans
in California communities during the first seven months of 2000.
Wells Fargo indicated that a large portion of these loans were designed to help provide affordable housing. In addition, Wells Fargo
indicated that it had recorded a total of $190 million in qualified
community development investments in California, as of July 31,
2000.
839
businesses with gross annual revenues less than $1 million,
and 90 percent of the bank's small business loans were in
amounts less than $100,000. Examiners found that Wells
Fargo Bank made 80 percent of its small business loans in
LMI areas, compared with 17 percent for reporting lenders
in the aggregate.
Examiners found that Wells Fargo Bank's distribution of
residential lending reflected an adequate penetration among
borrowers of all income levels and that the amount of the
bank's residential loans to LMI borrowers, as a percentage
of the bank's residential lending in Idaho compared favorably to the percentage of LMI households among all Idaho
households. The bank generated 806 residential loans in
Idaho, totaling $30 million.
Wells Fargo Bank made three community development
loans in Idaho, totaling $7 million. Examiners noted that
these loans helped to provide 180 units of low-income
housing, which was a significant need in the assessment
areas in which the loans were made. The bank also purchased $1 million in LIHTCs to provide affordable housing
for LMI individuals and granted a nonprofit organization
$150,000 to support micro- and startup-loans for small
businesses and provide technical business assistance. Examiners commented that each of these statewide investments was either the largest or the only investment of its
kind in Idaho by a commercial bank.
Montana. Examiners found that Norwest Bank Montana,
N.A., Billings, Montana ("Norwest Bank Montana"),
along with its mortgage lending affiliate, Norwest Mortgage, Inc. ("NMI"), was a leader in conventional residential lending in the Billings MSA and Great Falls MSA,
extending more loans reported under the Home Mortgage
Disclosure Act ("HMDA") ("HMDA-reported loans") 42
measured by number and dollar amount, than any other
lender in the market.43 Norwest Bank Montana employed
flexible underwriting terms for LMI applicants under its
Community Home Ownership Program ("CHOP"), and
made 384 home purchase loans, totaling approximately
$18 million, under the program during the CRA review
period. Examiners also reported that NMI had a strong
record of originating government-sponsored real estate
loans under programs sponsored by the Federal Housing
Authority, the Department of Veteran's Affairs, and the
Farmers Home Administration, and that Norwest Bank
Montana and NMI made a significant volume of residential
loans to LMI borrowers and in LMI areas.
Examiners found that Norwest Bank Montana demonstrated a strong commitment to supporting community
42. 12 U.S.C. § 2801 et seq.
43. In the Billings banking market, Wells Fargo (including Norwest
Bank Montana, NMI, and Norwest Home Improvement) controlled
approximately 16 percent of market deposits and made 17 percent of
all HMDA-reported loans in the market in 1998 and controlled approximately 14 percent of market deposits and made 14 percent of
HMDA-reported loans in 1999. In the Great Falls banking market,
Wells Fargo controlled approximately 20 percent of market deposits
and made 39 percent of all HMDA-reported loans in the market in
1998 and controlled approximately 19 percent of market deposits and
made 40 percent of HMDA-reported loans in 1999.
840
Federal Reserve Bulletin • December 2000
development and redevelopment initiatives by providing
financial support and technical assistance to various organizations and community groups. For example, the bank
provided a construction loan of $956,000 for a 24-unit
low-income senior citizen housing complex in Billings and
$1.2 million in permanent financing for a 48-unit affordable housing complex in Great Falls. Norwest Bank Montana also provided bridge loans that assisted nonprofit
organizations in constructing housing for LMI individuals.
Norwest Bank Montana was a Small Business Administration ("SBA") designated preferred lender and originated
207 SBA loans in Montana, totaling $19.2 million, during
the review period. Norwest also supported nonprofit organizations that benefited LMI families, small businesses,
and farms by providing direct financial contributions and
technical expertise.
Nevada. Wells Fargo Bank was a major small business
lender in Nevada, making 2,694 small business loans in
that state, totaling $111 million, during the review period.
Examiners commented favorably on the bank's lending to
small businesses, including small businesses in LMI census tracts. According to examiners, Norwest Bank Nevada,
N.A., Las Vegas, Nevada ("Norwest Bank Nevada") also
had a good geographic distribution of its small business
loans. The bank was commended for its small business
loans in LMI census tracts, particularly in the Las Vegas
MSA, where the amount of small business loans in lowincome census tracts, as a percentage of the bank's total
small business lending in the MSA, exceeded both the
percentage of small businesses in the state that were located in low-income areas and the bank's overall market
share of small business lending. Examiners also noted that
Norwest Bank Nevada had an excellent record of lending
to businesses of different sizes, with 74 percent of its small
business loans originated to businesses with gross annual
revenues of $100,000 or less. Examiners stated that this
percentage exceeded the percentage of businesses of this
size in the state and was significantly higher than the level
of lending to such borrowers by market lenders in the
aggregate. Examiners also commented favorably on the
bank's record of lending to small farms.44
Wells Fargo Bank made 459 residential loans in Nevada,
totaling $15 million. Although the bank's volume of residential lending was relatively low, examiners found that
Wells Fargo Bank's loan distribution among areas representing different income levels was good, and that the
bank's market share of lending in LMI areas approximated
its overall market share of residential loans. The examina-
44. The examination report indicated that there were some lowincome areas in which Norwest Bank Nevada made very few or no
residential, small business, or small farm loans. However, examiners
determined that these gaps resulted primarily from a lack of lending
opportunities in these areas because of small population, few owneroccupied homes, or a small number of businesses. Furthermore,
examiners concluded that there were no gaps in the bank's lending
that were unexplained or that reflected poorly on its lending performance in any assessment area.
tion report commended Wells Fargo Bank for the distribution of its residential loans to low-income borrowers.45
Norwest Bank Nevada, together with the home mortgage
lending subsidiaries of Norwest Corporation, made more
residential loans in Nevada than Wells Fargo Bank.46 Examiners of Norwest Bank Nevada found that the bank
made 9,742 home purchase loans from January 1997
through December 1998 and that it ranked first in the Reno
MSA, second in the bank's rural Nevada assessment area,
and fourth in the Las Vegas Multistate MSA in the number
of home purchase loans originated.47 Examiners commended the bank for its distribution of home purchase
loans to low-income census tracts in the Las Vegas Multistate MSA and found that the bank's market share of home
purchase loans in low-income census tracts was significantly higher than its overall market share of home purchase loans.
In the Las Vegas Multistate MSA, Wells Fargo Bank
made loans to two affordable housing projects, totaling
$21 million, that helped to provide 456 affordable housing
rental units for low- income families. The bank also made
two investments in Nevada to support affordable housing
and provided 35 grants, totaling more than $3 million, to
organizations that developed affordable housing. Examiners considered this to be a significant volume of investment
relative to the amount of the bank's deposits collected in
the state. Examiners of Norwest Bank Nevada also determined that the bank made a significant number of qualified
community development investments that all addressed
identified needs in its assessment areas. For example, in the
Reno MSA, Norwest Bank Nevada invested $9.6 million
45. In the Reno MSA, where low-income families represented
17 percent of all households, Wells Fargo Bank made 35 percent of its
residential loans to low-income borrowers. In the Las Vegas Multistate MSA, which includes portions of Arizona, LMI families represented 37 percent of the population of the MSA and Wells Fargo Bank
made 39 percent of its residential loans to LMI borrowers. In rural
Nevada, where LMI families represented 37 percent of the population,
Wells Fargo Bank made 37 percent of its residential loans to LMI
borrowers, and its performance in providing residential credit to
low-income borrowers exceeded that of lenders in the aggregate.
46. Examiners stated that Norwest Bank Nevada had a high volume
of loan originations in Nevada in 1997 compared with similarly
situated commercial banks and noted particularly that the number and
dollar volume of the bank's loans increased significantly during the
period of 1997 to the end of 1998.
47. One commenter argued that the most recent CRA examination
for Norwest Bank Nevada demonstrated that the bank has a poor
record of compliance with the CRA. Examiners noted that Norwest
Bank Nevada had a poor record of home purchase lending in
moderate-income areas of the Las Vegas Multistate MSA. However,
the examination report also stated that the bank's distribution of home
purchase loans in low-income areas of the Las Vegas Multistate MSA
was excellent and that the bank's market share of home purchase
loans in low-income areas was significantly higher than its market
share of home purchase loans in all geographies. Similarly, although
examiners noted that the bank had an uneven distribution of home
improvement loans in the Reno MSA, they found that the bank's
geographic distribution of home improvement loans was excellent in
rural Nevada, adequate in the Las Vegas Multistate MSA, and adequate for the state overall. Examiners rated Norwest Bank Nevada's
performance under the lending test component of its overall CRA
rating as "high satisfactory."
Legal Developments
in multifamily Fannie Mae Delegated Underwriting and
Service LIHTC bonds and $1.8 million in privately pooled
mortgage-backed securities. In the Las Vegas Multistate
MSA, the bank made grants to nonprofit organizations,
affordable housing projects, small business lenders, and
providers of educational and social services for at-risk
youth.
New Mexico. During the period covered by its most
recent CRA performance examination, Wells Fargo Bank
made almost 1,000 small business loans, totaling $21 million, in New Mexico that were almost all in amounts of
less than $100,000. Examiners found that the bank's percentage of small business loans made in LMI areas was
comparable to the percentage of the state's small businesses located in these areas and slightly exceeded the
percentage of small business loans made in LMI areas by
market lenders in the aggregate. Similarly, examiners determined that Norwest Bank NM's distribution of small business loans was responsive to the credit needs of small
businesses. The bank was an active SBA lender with
preferred lender status and ranked first in SBA lending in
the Albuquerque MSA in 1996. The bank established a
Business Solutions Center in Albuquerque to process credit
requests of $250,000 or less from small businesses with
gross annual revenues not exceeding $2 million.
Consistent with its strategic concentration on small business lending, Wells Fargo Bank originated only 34 residential loans in New Mexico, totaling $2 million, to borrowers
in the Santa Fe MSA. Fifty percent of the loans were to
low-income borrowers and 29 percent of the loans were in
LMI census tracts.
Examiners in the most recent CRA performance examination of Norwest Bank New Mexico, N.A., Albuquerque,
New Mexico ("Norwest Bank NM"), considered the bank,
along with its affiliate NMI, to be a leading residential
lender in its assessment areas. In 1995 and 1996, Norwest
Bank NM made 107 CHOP loans, totaling $16.3 million,
and examiners found that the bank's distribution of loans
in its assessment area, including LMI areas, was reasonable.48
Wells Fargo Bank made one community development
investment and 29 grants, totaling $366,000, in New Mexico during the review period. Examiners concluded that
this level of investment was significant when compared to
the amount of deposits the bank collected in the state. The
bank was the largest provider of funds to an Hispanic
community development organization that facilitated small
business micro-lending to minorities in economically distressed areas of the state. Examiners also determined that
Norwest Bank NM and NMI supported community development projects. The bank provided a $100,000 line of
credit to a nonprofit micro-lender and a revolving line of
48. Wells Fargo (including Wells Fargo Bank, Wells Fargo Bank
NM, NMI, and Norwest Home Improvement) made 22.6 percent of its
HMDA-reported loans to LMI individuals in 1998 and 23.9 percent to
LMI individuals in 1999. Wells Fargo's record of lending to LMI
individuals, however, somewhat lagged the record of lenders in the
aggregate for both 1998 and 1999.
841
credit to a nonprofit economic development organization
that made guaranteed and direct loans and offered technical
assistance to economically disadvantaged businesses. Norwest Bank NM also issued a $8.6 million letter of credit to
support the expansion of two manufacturing plants in LMI
areas, thereby significantly improving employment opportunities for LMI residents in the area.
Oregon. Examiners found that Wells Fargo Bank was a
major small business lender in Oregon. The bank made
approximately 5,000 small business loans, totaling approximately $180 million, and examiners considered it to be
responsive to the credit needs of small businesses in the
state. Wells Fargo Bank's distribution of lending to small
businesses in LMI areas compared favorably to the percentage of small businesses located in these areas. The bank
made 94 percent of its small business loans in amounts of
less than $100,000 and 53 percent of all its small business
loans to businesses with gross annual revenues of less than
$1 million.
Wells Fargo Bank originated 1,618 residential loans in
Oregon, totaling $69 million, during the examination period, and examiners found that the distribution of these
loans reflected good penetration among borrowers of all
income levels. The percentage of the bank's residential
loans made in LMI areas equaled the percentage of all
owner-occupied housing units in LMI areas that were in
the bank's assessment area. Moreover, Wells Fargo Bank's
market share of residential loans to LMI borrowers represented 88 percent of its overall market share of residential
loans.
Wells Fargo Bank made seven affordable housing loans
in Oregon, totaling $5 million. Examiners found that these
loans helped to provide low-income housing units for
senior citizens and families and addressed significant needs
in the bank's assessment areas. Wells Fargo Bank also
made two economic development loans to Native American tribes, totaling almost $7 million. In addition, the bank
made $8 million of LIHTC investments that helped finance
the acquisition, rehabilitation, and construction of affordable housing units for LMI individuals in Oregon. Wells
Fargo Bank also made 76 grants, totaling $616,000, to
support community development, affordable housing, and
economic and small business development, and to provide
food, shelter, health, and relief services to LMI individuals
and families.
South Dakota.49 Examiners found that Norwest Bank
South Dakota, N.A., Sioux Falls, South Dakota ("Norwest
Bank SD"), and NMI made more conventional HMDA-
49. Wells Fargo also controls a credit card bank, Wells Fargo
Financial Bank, Sioux Falls, South Dakota (formerly Dial Bank). At
its most recent CRA examination, examiners noted that Dial Bank had
a high volume of community development loans, a very high volume
of qualified community development investments, and had assumed a
leadership role in many projects related to these qualified investments.
Examiners concluded that the CRA performance of Dial Bank was
commendable in light of "somewhat limited" community development lending and investment opportunities in the Sioux Falls area and
intense competition from several other limited-purpose institutions in
the area for these types of projects.
842
Federal Reserve Bulletin • December 2000
reported loans, measured by number and dollar amount,
than any other conventional home mortgage lender in the
Sioux Falls and Rapid City MSAs. Moreover, Norwest
Bank SD and NMI were the leading originators of HMDAreported loans in moderate-income census tracts and to
LMI borrowers in both MSAs.50 Norwest Bank SD and
NMI made 67 CHOP loans, totaling $2.6 million, and 926
Community Home Improvement Program ("CHIP") loans,
which also used flexible underwriting criteria for LMI
applicants, during the CRA examination review period.
According to examiners, Norwest Bank SD participated
actively in community development and redevelopment
initiatives and provided leadership, technical support, and
financial support throughout its assessment area. For example, the bank assumed a leadership role in forming the
Sioux Empire Housing Partnership ("SEHP"), a nonprofit
corporation devoted to providing affordable housing to
LMI individuals in Sioux Falls, and committed $1 million
to SEHP projects and $500,000 to the SEHP equity fund
for the purchase of tax credits. Norwest Bank SD provided
over $7.6 million to finance multifamily LMI housing
projects in South Dakota and extended a $2.8 million loan
to the Rapid City YMCA Center, which is in a moderateincome area, to build child care and health facilities and to
support gymnastics programs.
Examiners concluded that Norwest Bank SD made a
sizeable volume of loans to small businesses and small
farms in South Dakota. As of June 30, 1996, Norwest Bank
SD had outstanding 9,003 small business loans, totaling
$294 million, and 5,616 small farm loans, totaling
$203 million. Eighty-four percent of these loans were
originated in amounts less than $100,000.
Utah. Wells Fargo Bank made more than 2,000 small
business loans in Utah, totaling almost $138 million, of
which 89 percent were in amounts of less than $100,000,
and 46 percent were to businesses with gross annual revenue less than $1 million. Examiners found that the bank's
small business lending in LMI census tracts was good, and
that the amount of small business loans made in LMI
census tracts, as a percentage of the bank's total small
business lending in the state, exceeded the percentage of
the state's small businesses located in these areas.
Wells Fargo Bank made 294 residential loans, totaling
$29 million, in the state, and examiners found that the
50. In 1998, Wells Fargo (including Norwest Bank SD, NMI, and
Norwest Home Improvement) controlled approximately 34 percent of
market deposits in the Rapid City banking market and made 29
percent of all HMDA-reported loans in the Rapid City MSA; in 1999
Wells Fargo controlled 32 percent of market deposits and made 25
percent of these loans. Wells Fargo controlled approximately 11
percent of market deposits in the Sioux Falls banking market in 1998
and made 33 percent of all HMDA-reported loans in the Sioux Falls
MSA; in 1999 the organization controlled approximately 12 percent
of market deposits and made 30 percent of these loans. Wells Fargo
made 21.2 percent of all its HMDA-reported loans in the Sioux Falls
MSA to LMI individuals in 1998. In 1999, the organization made 23.2
percent of its HMDA-reported loans to LMI individuals in the MSA.
Lenders in the aggregate in the Rapid City and Sioux Falls MSAs
slightly exceeded Wells Fargo in the percentage of loans made to LMI
individuals and in LMI census tracts during this time period.
bank's lending was distributed reasonably among borrowers and geographic areas of all income levels. The amount
of residential loans made in LMI areas, as a percentage of
the bank's total residential lending in Utah, approximated
the percentage of the state's owner-occupied housing units
located in these areas. Similarly, the amount of residential
loans made to LMI households, as a percentage of the
bank's total residential lending in Utah, exceeded the percentage of all Utah households that were LMI.
Wells Fargo Bank made 10 community development
loans in Utah, totaling $21 million, during the bank's
review period that supported the development of 428 lowincome housing units. The bank also made two community
development investments in the Salt Lake City MSA,
totaling $448,000. One investment assisted LMI individuals and families to maintain home ownership, and the other
provided financing and management support to start-up
and existing small businesses that did not qualify for
conventional financing. Wells Fargo Bank also made 59
grants, totaling $259,000, that were used to provide assistance in the areas of affordable housing, small business
development, and economic development and to provide a
variety of other services to LMI families in Utah.
Washington. Wells Fargo Bank made more than 8,000
small business loans, totaling almost $394 million, in
Washington, of which 92 percent were in amounts less than
$100,000 and 47 percent went to businesses with gross
annual revenue less than $1 million. Examiners found that
these loans were dispersed throughout the state. The
amount of the bank's loans to small businesses located in
LMI areas, as a percentage of the bank's total business
lending, approximated the percentage of the state's small
businesses that were located in these areas.
Wells Fargo Bank made 2,118 residential loans in Washington, totaling $103 million, and examiners found that the
amount of residential loans made in LMI census tracts, as a
percentage of the bank's total residential lending, approximated the percentage of the state's owner-occupied housing units located in these areas. The bank's residential
lending also was well distributed among borrowers of all
income levels, and the percentage of the bank's residential
loans made to LMI households exceeded the percentage of
all Washington households that were LMI.51
Wells Fargo Bank made nine community development
loans in Washington, including $31 million to support the
development of 638 low-income housing units and other
affordable housing initiatives and $6 million to provide
community services for LMI individuals. Examiners commended Wells Fargo Bank for its community development
investments, totaling almost $8 million. These investments
51. Commenters from Washington alleged that Wells Fargo's subsidiaries generally experienced higher default rates on their mortgage
loans compared with loan originators in the aggregate. Wells Fargo
has indicated that WFHM had received the highest servicing performance rating from Freddie Mac, based on the company's default
performance and the effectiveness of its loss mitigation efforts, and
that Fannie Mae had recognized WFHM for good performance on
defaults and loss mitigation.
Legal Developments
helped to provide capital, loan financing, and technical
assistance to low-income entrepreneurs and to support the
rehabilitation of affordable housing. In addition, Wells
Fargo Bank made 198 grants, totaling almost $2 million,
primarily to nonprofit organizations engaged in providing
affordable housing, supporting small businesses, and other
community revitalization efforts.
Wisconsin.52 Examiners generally found that each of the
predecessor banks to Wells Fargo Bank Wisconsin had
made good efforts to address housing, small business,
small farm, and consumer credit needs in its communities,
that each bank actively invested in its community, and that
each bank had a good record of originating loans to LMI
individuals and in LMI areas.53
Examiners found, in an examination conducted as of
November 1996, that Norwest Bank Wisconsin provided a
comprehensive array of loan products to meet community
credit needs. Between January 1994 and September 30,
1996, Norwest Bank Wisconsin originated 2,575 small
business loans and small farm loans in amounts of less than
$1 million, totaling $304 million. Examiners found that, in
1996, 72 percent of these loans were to businesses and
farms with gross annual revenues of less than $1 million.
As of June 30, 1996, Norwest Bank La Crosse had outstanding 1,150 small business loans, totaling $54.8 million,
and 246 small farm loans, totaling $2.3 million, of which
83 percent were in amounts of less than $100,000. Examiners also determined that Midamerica actively participated
in economic development projects and made loans that
facilitated the start- up, expansion, and relocation of businesses, including women-owned businesses.
Norwest Bank Wisconsin made 50 CHOP loans, totaling
$1.9 million, from January 1995 to June 30, 1996. Similarly, Norwest Bank La Crosse made 17 CHOP loans,
totaling approximately $600,000, in 1994 and 1995. Examiners found that each of the three former Norwest banks in
Wisconsin, together with NMI, consistently originated
loans through federal government-sponsored loan pro-
52. As of June 24, 2000, Norwest Bank Wisconsin, N.A., Milwaukee, Wisconsin ("Norwest Bank Wisconsin"), was renamed Wells
Fargo Bank Wisconsin, N.A. ("Wells Fargo Bank Wisconsin"), and
consolidated with Norwest Bank La Crosse, N.A., La Crosse, Wisconsin ("Norwest Bank La Crosse"), and Midamerica Bank Hudson,
Hudson, Wisconsin ("Midamerica").
53. One commenter criticized Wells Fargo's record of residential
lending to LMI and minority borrowers in Wisconsin based on data
available after the most recent CRA examinations of Wells Fargo's
Wisconsin banks. Wells Fargo has represented that, in 1999, the
percentage of conventional home mortgage loans made to minority
individuals in Wisconsin by Wells Fargo's subsidiaries was comparable with the percentage of these loans to minority individuals in
Wisconsin by lenders in the aggregate. Moreover, Wells Fargo has
stated that, in 1999, the percentage of conventional home mortgage
loans to LMI individuals in Wisconsin by Wells Fargo's subsidiaries
approximated the percentage of these loans by lenders in the aggregate in all but the La Crosse and the Milwaukee-Waukesha MSAs.
Wells Fargo further has represented that, based on 1998 market share
data, the percentage of home purchase loans by Wells Fargo's subsidiaries in the La Crosse and Milwaukee-Waukesha MSAs was comparable with the percentage of loans by Wells Fargo to all borrowers in
those MSAs, regardless of the borrower's income.
843
grams. Norwest Bank Wisconsin and Norwest Bank La
Crosse also participated actively with the Wisconsin Housing and Economic Development Authority ("WHEDA") in
its programs to assist LMI individuals to become homeowners.54 Examiners also found that all three banks and
NMI had a reasonable distribution of loans to LMI individuals and in LMI areas. For example, Norwest Bank Wisconsin and NMI generated 2,455 residential loans to LMI
individuals and 1,165 residential loans in LMI areas from
January 1994 to September 30, 1996.55 Moreover, Norwest
Bank Wisconsin's and NMI's market share of residential
loans to LMI borrowers was equal to the organizations'
overall market share.56
Examiners stated that Norwest Bank Wisconsin participated actively in community development initiatives, often
assuming a leadership role. The bank provided $3 million
in financing to help build 250 housing units for LMI
individuals in Milwaukee and participated in a program to
provide matching funds to assist LMI loan applicants with
down payments. Norwest Bank Wisconsin also provided
$10 million in funding to seven projects devoted to developing LMI multi-family housing in various communities in
Wisconsin and provided capital to projects designed to
expand job opportunities for LMI individuals. Examiners
found that Norwest Bank La Crosse participated in projects
to provide rental housing to students and in LMI communities and originated loans to support revitalization and job
growth in the inner city area of La Crosse. Examiners
reported that Midamerica had funded the expansion of
community facilities, such as a hospital and a YMCA, and
provided check cashing and other banking services at a
retirement home to meet the special needs of elderly community members.
D. First Security's CRA Performance Record57
As noted above, First Security Bank received an overall
rating of "outstanding" at its most recent examination for
CRA performance. Examiners commented favorably on
54. Wells Fargo has indicated that demand for WHEDA loans from
Midamerica may have been limited by the relatively high income
levels of the communities the bank serves.
55. In the eight MSAs included in Wells Fargo's Wisconsin assessment area, Wells Fargo (including the three former Norwest banks,
NMI, and Norwest Home Improvement) made 2,297 HMDAreported loans to LMI individuals in 1998, which represented
19.9 percent of all HMDA-reported loans by Wells Fargo. In 1999,
Wells Fargo made 2,140 HMDA-reported loans to LMI individuals in
these assessment areas, which represented 27.2 percent of all HMDAreported loans by the bank. The percentage of Wells Fargo's HMDAreported loans to LMI individuals in these areas in 1998 and 1999 was
slightly below that of lenders in the aggregate.
56. One commenter questioned whether Wells Fargo's subsidiary
banks in Wisconsin complied with section 109 of the Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994
(12 U.S.C. § 1835a). The Board has been advised by the appropriate
federal banking supervisors that all Wells Fargo's subsidiary banks
satisfy the provision.
57. The Board recently reviewed in detail the record of First
Security's subsidiary banks under the CRA. See First Security Order
at 131-132.
844
Federal Reserve Bulletin • December 2000
the bank's responsiveness to community lending needs and
rated the institution's lending activities "outstanding" on
the lending test component of its CRA performance rating.58 At the state level, examiners rated First Security
Bank's lending activities "outstanding" in Utah and "high
satisfactory" in Idaho and Oregon. Examiners found that
the bank had a good distribution of home mortgage loans
to borrowers of all income levels. The bank's record of
home purchase lending to low-income individuals in Idaho
and Oregon was good and its record of home purchase
lending to moderate-income individuals was excellent.
First Security Bank also was responsive to the credit needs
of small businesses in the bank's assessment areas and had
a good record of lending to businesses of different sizes. In
addition, examiners commended the bank for its responsiveness to the credit needs of small farms. Examiners
noted that First Security Bank regularly used flexible underwriting practices to meet the credit needs of LMI homebuyers and small businesses in Idaho and Oregon.
Examiners stated that First Security Bank had a high
level of community development lending and investment
activity, and rated the bank "high satisfactory" on the
investment test component of its CRA performance evaluation. Of particular note was the bank's level of investment
in affordable housing projects. In Idaho, First Security
Bank made qualified loans totaling $12 million, which
helped to develop 442 affordable housing units. The bank
also made complex investments involving LIHTCs that
generated an additional 58 units of affordable housing. In
Oregon, the bank made three loans, totaling $2.2 million,
to support the development of 156 affordable housing
units, made a qualified loan of $130,000 to support other
affordable housing initiatives, and provided $3.9 million to
a project to develop government-subsidized affordable
housing. In addition, First Security Bank made 20 community development investments, totaling $801,000, which
examiners characterized as an adequate response to community needs in light of the investment opportunities available in the area.
First Security Bank received a rating of "outstanding"
on the service test component of its CRA evaluation.
Examiners commended the bank for the geographical distribution of its branches and ATMs throughout in its Idaho
assessment areas, noting that the percentage of the bank's
branches and ATMs located in LMI areas exceeded the
percentage of all state geographies that were designated
58. A Nevada commenter particularly criticized First Security's
record of making small business and residential loans to minority
individuals and its record of making small business loans in LMI
areas. First Security Bank of Nevada focuses on providing loans and
services to businesses in its assessment areas. At the bank's most
recent CRA performance evaluation, examiners reviewed its small
business lending, which accounted for the largest portion of the bank's
loan portfolio, and found that the distribution of lending in its assessment areas, including LMI areas, was good. The performance examination also stated that First Security Bank of Nevada had a good
record of lending to businesses of all sizes. Moreover, examiners did
not identify any violations of applicable antidiscrimination laws by
the bank.
LMI areas. Examiners also determined that First Security
Bank's business hours in Idaho were reasonable and accommodated customer needs, noting that 27 percent of the
bank's branches, including several branches in LMI geographies, offered Saturday hours. Similarly, examiners concluded that First Security Bank's branches and ATMs in
Oregon were well distributed, and that the bank's business
hours accommodated customer needs.
E. HMDA Data
The Board also has considered Wells Fargo's and First
Security's records in light of comments on data provided
by the organizations' subsidiaries under HMDA.59 HMDA
data for 1998 and 1999 indicate that Wells Fargo generally
lagged the aggregate of lenders in its assessment areas in
the percentage of its housing-related loans that were made
to LMI individuals and for properties in LMI census tracts.
The data do not indicate, however, that Wells Fargo
neglected home mortgage lending or systematically omitted any particular racial, economic, or geographic segment
of its communities under its home mortgage lending programs. The 1998 and 1999 data also show generally that
the percentage of Wells Fargo's housing-related loans to
Native Americans, African Americans, and Hispanics approximated the percentage of such loans to minority individuals by lenders in the aggregate in Wells Fargo's assessment areas. Typically, however, the percentages of
housing-related loans to minority individuals by Wells
Fargo and lenders in the aggregate were less than the
percentage of these individuals in the total population of
the assessment areas. Similarly, although denial disparity
ratios vary widely among groups of applicants and by area,
Wells Fargo's denial disparity ratios for minority individuals were generally higher than the denial disparity ratios
for lenders in the aggregate in its assessment areas.
The 1998 and 1999 HMDA data for First Security in the
MSAs cited by commenters indicate that the percentage of
housing-related loans by the organization to LMI individuals and in LMI census tracts was comparable with or
exceeded the lending activities by lenders in the aggregate
to LMI individuals and in LMI areas. The percentage of
First Security's housing-related loans to minority individuals was comparable with the percentage of these loans by
lenders in the aggregate in the State of Utah and the
percentage of First Security's housing-related loans to Hispanics approximated or exceeded the percentage of these
loans by lenders in the aggregate in the other cited markets.
With limited exceptions, however, there were too few
Native Americans or African Americans in the other cited
59. Commenters criticized Wells Fargo's record of home mortgage
lending to LMI and minority individuals in California, Idaho, Montana, Nevada, New Mexico, Oregon, South Dakota, Washington, and
Wisconsin. Commenters also alleged that First Security made an
inadequate number of home mortgage loans to LMI and minority
individuals in Idaho, Oregon, and Washington in light of the percentage of the general population in these states that these individuals
constituted.
Legal Developments
markets and First Security received too few housingrelated loan applications from members of these groups to
evaluate the organization's lending to members of these
groups in these areas.60
The Board is concerned when the record of an institution
indicates disparities in lending and believes that all banks
are obligated to ensure that their lending practices are
based on criteria that ensure not only safe and sound
lending, but also equal access to credit by creditworthy
applicants regardless of their race or income level. The
Board recognizes, however, that HMDA data alone provide
an incomplete measure of an institution's lending in its
community because these data cover only a few categories
of housing-related lending. HMDA data, moreover, provide only limited information about the covered loans.61
HMDA data, therefore, have limitations that make them an
inadequate basis, absent other information, for concluding
that an institution has not assisted adequately in meeting its
community's credit needs or has engaged in illegal lending
discrimination.
Because of the limitations of HMDA data, the Board has
considered these data carefully in light of other information. As noted above, examiners found no evidence of
prohibited discrimination or other illegal credit practices at
the subsidiary banks of Wells Fargo and First Security at
their most recent examinations. Examiners reviewed fair
lending policies and procedures of the banks and found the
policies and procedures to be comprehensive and appropriate for monitoring compliance with fair lending laws. The
Board also has considered the HMDA data in light of
Wells Fargo's and First Security's lending records, which
show that the organizations' subsidiary banks assist significantly in helping to meet the credit needs of their communities, including LMI areas.
F. Branch Closings
One commenter alleged that Wells Fargo had a poor record
of retaining branches and several commenters expressed
concern about the effect of possible branch closings that
might result from this proposal. Wells Fargo has provided
the Board with its branch closing policy, and Board has
considered the public comments about potential branch
closings in light of all the facts of record, including information provided by Wells Fargo.
60. In the Boise MSA, First Security's housing-related lending to
Native Americans exceeded the percentage of these loans by lenders
in the aggregate.
61. The data, for example, do not account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for an independent assessment of whether an applicant
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
frequently cited for a credit denial) are not available from HMDA
data. HMDA data also may be incomplete and may not identify all
applicants with regard to income level, ethnicity, or other demographic factors.
845
The Board has carefully considered the branch closing
policy of Wells Fargo and Wells Fargo's record of opening
and closing branches. The Board notes that the branch
closing policy provides that local bank management in the
areas of proposed branch closings must review the impact
that each branch closing would have on the community.
Examiners have reviewed the performance of Wells Fargo's subsidiary banks under the branch closing policy on
several occasions. In addition, the most recent CRA examination of Wells Fargo Bank indicated that the bank had a
satisfactory record of opening and closing branches, noted
generally that the branch closings did not affect LMI communities in a materially adverse manner, and concluded
that Wells Fargo Bank's delivery systems were reasonably
accessible to LMI individuals and areas. Examiners also
concluded that First Security's subsidiary banks had a
good record of opening and closing branches.
The Board expects that the subsidiary banks of the
combined organization would continue to use a satisfactory
branch closing policy for any branch closings that might
result from the proposed transaction. The Board also notes
that the appropriate federal supervisor for each of Wells
Fargo's subsidiary banks will, in the course of conducting
CRA performance examinations, continue to review the
branch closing record of these banks.
G. Conclusion on Convenience and Needs
In reviewing the effect of the proposal on the convenience
and needs of the communities to be served, the Board has
carefully considered all the facts of records, including the
public comments received, Wells Fargo's responses to the
comments, and evaluations of the performance of each of
Wells Fargo's and First Security's insured depository institution subsidiaries under the CRA.62 In connection with the
proposal, Wells Fargo has indicated that the combined
organization generally would follow the CRA policies and
procedures currently used by Wells Fargo's subsidiary
banks and has provided the Board with detailed information about the proposed CRA policies, procedures, and
programs it intends to use in the future. Moreover, Wells
Fargo has informed the Board that the combined organization would honor the existing CRA lending and contribution commitments of First Security and retain various First
62. One commenter alleged that Wells Fargo has indirectly supported predatory lending through the business relationships of Norwest Bank Minnesota, N.A., Minneapolis, Minnesota ("Norwest Bank
Minnesota"), with Delta Funding Corporation and First Alliance
Mortgage, which the commenter characterized as predatory lenders.
Wells Fargo has stated that Norwest Bank Minnesota's only relationship with Delta Funding Corporation and First Alliance Mortgage is to
serve as a trustee on bond issues secured by pools of mortgage loans
originated by these two parties and that the bank's sole duty is to the
bondholders. Wells Fargo has represented that Norwest Bank Minnesota has no role in the initial funding of the loans that are included in
the mortgage loan pools and has no knowledge of the lending practices followed by the party originating the loans.
846
Federal Reserve Bulletin • December 2000
Security products and programs that are designed to help
meet the credit needs of LMI individuals and areas.63
Based on a review of the entire record and for the
reasons discussed above, the Board concludes that convenience and needs considerations, including the CRA performance records of the subsidiary banks of Wells Fargo and
First Security, are consistent with approval of the proposal.64
Nonbanking Activities
Wells Fargo also has filed notice under section 4(c)(8) of
the BHC Act to acquire certain nonbanking subsidiaries of
First Security. Wells Fargo would engage through these
subsidiaries in a number of permissible nonbanking activities, including providing credit-related insurance, data processing services, and equipment leasing. The Board has
determined by regulation that each activity conducted by a
First Security subsidiary for which Wells Fargo provided
notice under section 4 of the BHC Act is closely related to
banking for purposes of the BHC Act. In order to approve
the notice filed by Wells Fargo to acquire certain nonbanking subsidiaries of First Security, the Board is required by
section 4(j)(2)(A) of the BHC Act to determine that the
acquisition of these subsidiaries "can reasonably be expected to produce benefits to the public . . . that outweigh
possible adverse eiFects, such as undue concentration of
resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices."65
As part of its evaluation of these factors, the Board
considers the financial condition and managerial resources
of the notificant, its subsidiaries, and the companies to be
acquired, and the effect of the proposed transaction on
those resources. For the reasons discussed above and based
on all the facts of record, the Board has concluded that
financial and managerial considerations are consistent with
approval of the notice.
The Board also has considered the competitive effects of
the proposed acquisition by Wells Fargo of the nonbanking
subsidiaries of First Security. Each of the markets in which
the nonbanking subsidiaries of Wells Fargo and First Security compete is unconcentrated, and there are numerous
providers of each service. As a result, the Board ex-
63. Wells Fargo has specifically identified certain affordable housing programs provided by First Security that the combined organization would continue to offer. These programs include Federal Home
Loan Bank, state housing agency first-time homebuyer, and nonprofit
LMI home mortgage loan programs.
64. Certain commenters questioned whether Wells Fargo had fulfilled previous CRA pledges it had made in the past, and requested the
Board to investigate Wells Fargo's performance. Neither the CRA nor
the federal banking agencies' CRA regulations require depository
institutions to make pledges or enter into agreements with any organization. The Board, therefore, views such pledges and agreements and
their enforceability as matters outside the CRA and focuses on the
existing record of an applicant and the programs that the applicant has
in place to serve the credit needs of its community. See Fleet Financial Group, Inc., 85 Federal Reserve Bulletin 747, 765 (1999); First
Union Corporation, 84 Federal Reserve Bulletin 489, 500 (1998).
65. 12 U.S.C. § 1843(j)(2)(A).
pects that consummation of the proposal would have a
de minimis effect on competition for these services. Based
on all the facts of record, the Board concludes that it is
unlikely that significantly adverse competitive effects
would result from the nonbanking acquisitions proposed in
this transaction.
Wells Fargo has indicated that consummation of the
proposal would provide customers of Wells Fargo and First
Security with access to a wider range of products and
services than Wells Fargo or First Security individually
could provide. In addition, there are public benefits to be
derived from permitting capital markets to operate so that
bank holding companies can make potentially profitable
investments in nonbanking companies and from permitting
banking organizations to allocate their resources in the
manner they consider to be most efficient when the investments and actions are consistent, as in this case, with the
relevant considerations under the BHC Act.
The Board also has concluded that the conduct of the
proposed activities within the framework of Regulation Y
and Board precedent is not 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, that would outweigh the public benefits of the proposal, such as increased
customer convenience and gains in efficiency. Accordingly,
based on all the facts of record, the Board has determined
that the balance of public benefits that the Board must
consider under section 4(j) of the BHC Act is favorable
and consistent with approval of the notice.
As required by section 25 of the Federal Reserve Act
and section 211.4(f) of the Board's Regulation K
(12 C.F.R. 211.4(f)), Wells Fargo also has applied to acquire First Security Hong Kong Agreement Corporation,
Salt Lake City, Utah, which is organized under section 25
of the Federal Reserve Act, and its subsidiary. The Board
concludes that all the factors it is required to consider
under the Federal Reserve Act and the Board's Regulation K in connection with this application are consistent
with approval of the proposal.
Conclusion
Based on the foregoing and in light of all the facts of
record, the Board has determined that the applications and
notice should be, and hereby are, approved.66 In reaching
66. Several commenters requested that the Board hold a public
meeting or hearing on the proposal. Section 3(b) of the BHC Act does
not require the Board to hold a public 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.
The Board has not received such a recommendation from the appropriate supervisory authorities.
Under its rules, the Board also may, in its discretion, hold a public
meeting or hearing on an application to acquire a bank if a meeting or
hearing is necessary or appropriate to clarify factual issues related to
the application and to provide an opportunity for testimony. 12 C.F.R.
225.16(e). Section 4 of the BHC Act and the Board's rules thereunder
provide for a hearing on a notice to acquire nonbanking companies if
Legal Developments
its conclusion, the Board has considered all the facts of
record in light of the factors that it is required to consider
under the BHC Act and other applicable statutes.67 The
Board's approval is specifically conditioned on compliance
by Wells Fargo with all the commitments made in connection with the applications and notice, including the commitments discussed in this order, and the conditions set forth
in this order and the above-noted Board regulations and
orders. The Board's approval of the nonbanking aspects of
the proposal also is subject to all the conditions set forth in
Regulation Y, including those in sections 225.7 and
225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)),
and to the Board's authority to require such modification or
termination of the activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
ensure compliance with, and to prevent evasion of, the
provisions of the BHC Act and the Board's regulations and
orders issued thereunder. These commitments and conditions are deemed to be conditions imposed in writing by
the Board in connection with its findings and decision and,
as such, may be enforced in proceedings under applicable
law.
The acquisition of the subsidiary banks of First Security
may not be consummated before the fifteenth calendar day
after the effective date of this order, and the proposal may
not be consummated later than three months after the
effective date of this order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 10, 2000.
there are disputed issues of material fact that cannot be resolved in
some other manner. 12 U.S.C. § 1843(c)(8); 12 C.F.R. 225.25(a)(2).
The Board has considered carefully these commenters' requests in
light of all the facts of record. In the Board's view, commenters have
had ample opportunity to submit their views, and they submitted
written comments that have been considered carefully by the Board in
acting on the proposal. The commenters' requests fail to demonstrate
why their written comments do not present their evidence adequately
and fail to identify disputed issues of fact that are material to the
Board's decision that would be clarified by a public meeting or
hearing. For these reasons, and based on all the facts of record, the
Board has determined that a public meeting or hearing is not required
or warranted in this case. Accordingly, the requests for a public
meeting on the proposal are denied.
67. A number of commenters requested that the Board delay action
or extend the comment period on the proposal. The Board has accumulated a significant record in this case, including reports of examination, supervisory information, public reports and information, and
considerable public comment. In the Board's view, for the reasons
discussed above, commenters have had ample opportunity to submit
their views and, in fact, have provided substantial written submissions
that have been considered carefully by the Board in acting on the
proposal. Moreover, the BHC Act and Regulation Y require the Board
to act on proposals submitted under those provisions within certain
time periods. Based on a review of all the facts of record, the Board
has concluded that the record in this case is sufficient to warrant Board
action at this time, and that a further delay in considering the proposal,
extension of the comment period, or a denial of the proposal on the
grounds discussed above or on the basis of informational insufficiency
is not warranted.
847
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Appendix A
Nonbanking Activities of First Security to Be Acquired
under Section 4 of the BHC Act
(i) First Security Mortgage Company and its wholly
owned subsidiary, Asset Recovery, Inc., both of Salt
Lake City, Utah, and thereby engage in extending
credit and servicing loans, in accordance with section 225.28(b)(1) of Regulation Y (12 C.F.R.
225.28(b)(1));
(ii) First Security Leasing Company and its wholly owned
subsidiary, First Security Leasing Company of Nevada, and Banker's Equipment Alliance, Inc., all of
Salt Lake City, Utah, and thereby engage in personal
property leasing, in accordance with section 225.28(b)(3)
of Regulation Y (12 C.F.R. 225.28(b)(3));
(iii) First Security Investment Services, Inc. and its wholly
owned subsidiary, First Security Investment Management, Inc., both of Salt Lake City, Utah, and thereby
engage in providing investment management and
investment advisory services, in accordance with
section 225.28(b)(6) of Regulation Y (12 C.F.R
225.28(b)(6));
(iv) First Security Specialized Services, Inc., Salt Lake
City, Utah, and thereby engage in providing financial
consulting services, in accordance with sections 225.28(b)(6) and (9) of Regulation Y (12 C.F.R.
225.28(b)(6) and (9));
(v) First Security Life Insurance Company of Arizona,
Salt Lake City, Utah, and thereby engage in credit life
and disability insurance underwriting, in accordance
with section 225.28(b)(ll)(i) of Regulation Y
(12 C.F.R. 225.28(b)(ll)(i)); and
(vi) First Security Processing Services, Inc., Salt Lake City,
Utah, and thereby engage in data processing and data
transmission services, in accordance with section
225.28(b)(14) of Regulation Y (12 C.F.R. 225.28(b)(14)).
Appendix B
Banking Markets in which Wells Fargo and First
Security Compete Directly
California
Hesperia-Apple Valley-Victorville: Hesperia-Apple ValleyVictorville RMA and the towns of Helendale, Lucerne
Valley, Phelan, and Wrightwood.
Los Angeles: Los Angeles RMA and the towns of Rancho
Santa Margarita and Rosamond.
848
Federal Reserve Bulletin • December 2000
Riverside-San Bernardino: Riverside-San Bernardino
RMA and the towns of Banning, Beaumont, and Nuevo.
South Lake Tahoe: The towns of South Lake Tahoe in
California and Stateline and Zephyr Cove in Nevada.
Truckee-Tahoe: The towns of Kings Beach, Tahoe City,
and Truckee in California and Incline Village in Nevada.
Idaho
Boise: Boise RMA and the towns of Emmett, Homedale,
Marsing, Parma, and Wilder.
Hailey: The towns of Bellevue, Hailey, Ketchum, and Sun
Valley.
Idaho Falls: Idaho Falls RMA and the towns of Shelley
and Ririe.
Pocatello: Pocatello RMA.
Sandpoinf. The towns of Ponderay, Priest River, and Sandpoint in Idaho and Newport in Washington.
Twin Falls: The towns of Buhl, Filer, Gooding, Hagerman,
Hazelton, Jerome, Kimberly, Richfield, Shoshone, Twin
Falls, and Wendell.
Utah
Box Elder: The towns of Brigham City and Tremonton.
Ogden: Ogden RMA.
Park City: The towns of Coalville, Heber City, Kamas, and
Park City.
Provo-Orem: Provo-Orem RMA.
Salt Lake City: Salt Lake City RMA and the towns of
Tooele and Grantsville.
Washington
Spokane: Spokane RMA and the town of Medical Lake in
Washington and the towns of Coeur d'Alene, Hay den,
Hyden Lake, and Rathdrum in Idaho.
Appendix C
Certain Banking Markets without Divestitures
California
Nevada
Carson City. The towns of Carson City, Dayton, Gardnerville, Minden, and Virginia City.
Las Vegas: Las Vegas RMA.
Reno: Reno RMA and the town of Fernley.
New Mexico
Albuquerque: Albuquerque MSA and Guadalupe and Torrance Counties.
Las Cruces: Las Cruces MSA, excluding the towns of
Anthony, Santa Teresa, and Sunland Park in Dona Ana
County.
Rio Arriba County: Rio Arriba County.
Roswell-Artesia: Chaves County and the northern half of
Eddy County.
Santa Fe: Santa Fe RMA.
Oregon
Corvallis: Corvallis RMA.
Deschutes: The towns of Bend, La Pine, Redmond, Sisters,
Sunriver, and Terrebonne.
Ontario: The towns of Nyssa, Ontario, and Vale in Oregon
and Fruitland, New Plymouth, Payette, and Weiser in
Idaho.
Portland: Portland RMA and the towns of Mount Angel,
Scappoose, St. Helens, and Vernonia in Oregon and Yacolt
in Washington.
Salem: Salem RMA and the town of Silverton.
Texas
El Paso: El Paso MSA and the towns of Anthony, Santa
Teresa, and Sunland Park in Dona Ana County, New
Mexico.
Hesperia-Apple Valley-Victorville: Wells Fargo operates
the sixth largest depository institution in the market, controlling deposits of $71.3 million, representing approximately 6.6 percent of market deposits. First Security operates the 12th largest depository institution in the market,
controlling deposits of $20.9 million, representing approximately 1.9 percent of market deposits. On consummation
of the proposal, Wells Fargo would operate the fifth largest
depository institution in the market, controlling deposits of
$92.2 million, representing approximately 8.5 percent of
market deposits. The HHI would increase by 26 points to
1162.
Los Angeles: Wells Fargo operates the second largest depository institution in the market, controlling deposits of
$14.2 billion, representing approximately 10.2 percent of
market deposits. First Security operates the 27th largest
depository institution in the market, controlling deposits of
$962.6 million, representing less than 1 percent of market
deposits. On consummation of the proposal, Wells Fargo
would continue to operate the second largest depository
institution in the market, controlling deposits of
$15.2 billion, representing approximately 10.9 percent of
market deposits. The HHI would increase by 14 points to
1032.
Riverside-San Bernardino: Wells Fargo operates the third
largest depository institution in the market, controlling
deposits of $547 million, representing approximately
10.1 percent of market deposits. First Security operates the
21st largest depository institution in the market, controlling
deposits of $36.1 million, representing less than 1 percent
of market deposits. On consummation of the proposal,
Wells Fargo would operate the second largest depository
institution in the market, controlling deposits of
$583.1 million, representing approximately 10.7 percent of
market deposits. The HHI would increase by 13 points to
1622.
Legal Developments
Idaho
Idaho Falls: Wells Fargo operates the sixth largest depository institution in the market, controlling deposits of
$29.7 million, representing approximately 3.8 percent of
market deposits. First Security operates the second largest
depository institution in the market, controlling deposits of
$198.7 million, representing approximately 25.3 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the largest depository institution in
the market, controlling deposits of $228.4 million, representing approximately 29.1 percent of market deposits. The
HHI would increase by 191 points to 2156.
Sandpoinf. Wells Fargo operates the sixth largest depository institution in the market, controlling deposits of
$18.5 million, representing approximately 5.4 percent of
market deposits. First Security operates the fourth largest
depository institution in the market, controlling deposits of
$52.1 million, representing approximately 15.3 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the second largest depository institution in the market, controlling deposits of $70.6 million,
representing approximately 20.7 percent of market deposits. The HHI would increase by 166 points to 2218.
Nevada
Reno: Wells Fargo operates the largest depository institution in the market, controlling deposits of $828.9 million,
representing approximately 27 percent of market deposits.
First Security operates the seventh largest depository institution in the market, controlling deposits of $106.1 million,
representing approximately 3.5 percent of market deposits.
On consummation of the proposal, Wells Fargo would
continue to operate the largest depository institution in the
market, controlling deposits of $935 million, representing
approximately 30.5 percent of market deposits. The HHI
would increase by 187 points to 2082.
New Mexico
Rio Arriba County. Wells Fargo operates the fifth largest
depository institution in the market, controlling deposits of
$2.9 million, representing approximately 1.1 percent of
market deposits. First Security operates the fourth largest
depository institution in the market, controlling deposits of
$33.7 million, representing approximately 12.5 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the fourth largest depository institution in the market, controlling deposits of approximately
$36.6 million, representing approximately 13.6 percent of
market deposits. The HHI would increase by 26 points to
3349.
Roswell-Artesia: Wells Fargo operates the largest depository institution in the market, controlling deposits of
$128.5 million, representing approximately 20.6 percent of
market deposits. First Security operates the eighth largest
depository institution in the market, controlling deposits of
$25.5 million, representing approximately 4.1 percent of
849
market deposits. On consummation of the proposal, Wells
Fargo would continue to operate the largest depository
institution in the market, controlling deposits of $154 million, representing approximately 24.7 percent of market
deposits. The HHI would increase by 169 points to 1583.
Santa Fe: Wells Fargo operates the fourth largest depository institution in the market, controlling deposits of
$110.1 million, representing approximately 10.6 percent of
market deposits. First Security operates the eighth largest
depository institution in the market, controlling deposits of
$41.2 million, representing approximately 4 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the third largest depository institution
in the market, controlling deposits of approximately $151.3
million, representing approximately 14.6 percent of market
deposits. The HHI would increase by 85 points to 1575.
Oregon
Corvallis: Wells Fargo operates the third largest depository
institution in the market, controlling deposits of
$99.3 million, representing approximately 13 percent of
market deposits. First Security operates the fourth largest
depository institution in the market, controlling deposits of
$64.2 million, representing approximately 8.4 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the second largest depository institution in the market, controlling deposits of approximately
$163.5 million, representing approximately 21.4 percent of
market deposits. The HHI would increase by 220 points to
1623.
Deschutes-. Wells Fargo operates the sixth largest depository institution in the market, controlling deposits of
$61.6 million, representing approximately 6.9 percent of
market deposits. First Security operates the fourth largest
depository institution in the market, controlling deposits of
$76.2 million, representing approximately 8.5 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the third largest depository institution
in the market, controlling deposits of approximately $137.8
million, representing approximately 15.4 percent of market
deposits. The HHI would increase by 115 points to 2072.
Ontario: Wells Fargo operates the eighth largest depository
institution in the market, controlling deposits of
$25.3 million, representing approximately 4.5 percent of
market deposits. First Security operates the third largest
depository institution in the market, controlling deposits of
$88.1 million, representing approximately 15.7 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the third largest depository institution
in the market, controlling deposits of $113.4 million, representing approximately 20.2 percent of market deposits. The
HHI would increase by 141 points to 1755.
Portland: Wells Fargo operates the third largest depository
institution in the market, controlling deposits of $1.6 billion, representing approximately 11.6 percent of market
deposits. First Security operates the 20th largest depository
institution in the market, controlling deposits of
$36.3 million, representing less than 1 percent of market
850
Federal Reserve Bulletin • December 2000
deposits. On consummation of the proposal, Wells Fargo
would continue to operate the third largest depository
institution in the market, controlling deposits of $1.7 billion, representing approximately 11.9 percent of market
deposits. The HHI would increase by 6 points to 2087.
Salem: Wells Fargo operates the fourth largest depository
institution in the market, controlling deposits of $158 million, representing approximately 8.2 percent of market
deposits. First Security operates the third largest depository
institution in the market, controlling deposits of
$271.3 million, representing approximately 14 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the second largest depository institution in the market, controlling deposits of $429.3 million,
representing approximately 22.2 percent of market deposits. The HHI would increase by 230 points to 1585.
Washington
Spokane: Wells Fargo operates the fifth largest depository
institution in the market, controlling deposits of
$210.9 million, representing approximately 6 percent of
market deposits. First Security operates the sixth largest
depository institution in the market, controlling deposits of
$195.8 million, representing approximately 5.6 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the fourth largest depository institution in the market, controlling deposits of $406.7 million,
representing approximately 11.6 percent of market deposits. The HHI would increase by 68 points to 1641.
Appendix D
Certain Banking Markets with Divestitures
Texas
El Paso: Wells Fargo operates the second largest depository institution in the market, controlling deposits of
$892.6 million, representing approximately 27 percent of
market deposits. First Security operates the seventh largest
depository institution in the market, controlling deposits of
$72.8 million, representing approximately 2.2 percent of
market deposits. On consummation of the proposal, Wells
Fargo would continue to operate the second largest depository institution in the market, controlling deposits of
$965.4 million, representing approximately 29.2 percent of
market deposits. The HHI would increase by 119 points to
2286.
Utah
California
South Lake Tahoe: Wells Fargo operates the second largest
depository institution in the market, controlling deposits of
$74.2 million, representing approximately 22.6 percent of
market deposits. First Security operates the fifth largest
depository institution in the market, controlling deposits of
$31.9 million, representing approximately 9.7 percent of
market deposits. Wells Fargo proposes to divest one branch
in the market, with deposits of $31.9 million, representing
approximately 9.7 percent of market deposits, to a suitable
out-of-market competitor. After the proposed merger and
divestiture, Wells Fargo would continue to operate the
second largest depository institution in the market, controlling deposits of $74.2 million, representing approximately
22.6 percent of market deposits. The HHI would remain
unchanged at 2010.
Idaho
Ogden: Wells Fargo operates the tenth largest depository
institution in the market, controlling deposits of
$17.5 million, representing approximately 1.4 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of $458
million, representing approximately 37.4 percent of market
deposits. On consummation of the proposal, Wells Fargo
would operate the largest depository institution in the market, controlling deposits of approximately $475.5 million,
representing approximately 38.8 percent of market deposits. The HHI would increase by 107 points to 2134.
Provo-Orem: Wells Fargo operates the seventh largest depository institution in the market, controlling deposits of
$39.1 million, representing approximately 2.1 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of
$571.8 million, representing approximately 30.5 percent of
market deposits. On consummation of the proposal, Wells
Fargo would operate the largest depository institution in
the market, controlling deposits of $610.9 million, representing approximately 32.6 percent of market deposits. The
HHI would increase by 127 points to 2157.
Boise: Wells Fargo operates the fourth largest depository
institution in the market, controlling deposits of $205 million, representing approximately 6.1 percent of market
deposits. First Security operates the second largest depository institution in the market, controlling deposits of
$1.1 billion, representing approximately 31.8 percent of
market deposits. Wells Fargo proposes to divest three
branches in the market, with deposits of $94.1 million,
representing approximately 2.8 percent of market deposits,
to a suitable in-market competitor. After the proposed
merger and divestiture, Wells Fargo would operate the
largest depository institution in the market, controlling
deposits of $1.2 billion, representing approximately
35.1 percent of market deposits. The HHI would increase
by not more than 192 points to 2555.
Hailey: Wells Fargo operates the fourth largest depository
institution in the market, controlling deposits of
$24.9 million, representing approximately 10.9 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of $87.4
million, representing approximately 38.3 percent of market
Legal Developments
deposits. Wells Fargo proposes to divest two branches in
the market, with $24.9 million of deposits, representing
approximately 10.9 percent of market deposits, to a suitable out-of-market competitor. After the proposed merger
and divestiture, Wells Fargo would operate the largest
depository institution in the market, controlling deposits of
$87.4 million, representing approximately 38.3 percent of
market deposits. The HHI would remain unchanged at
2562.
Nevada
Carson City: Wells Fargo operates the largest depository
institution in the market, controlling deposits of
$272.3 million, representing approximately 32.2 percent of
market deposits. First Security operates the third largest
depository institution in the market, controlling deposits of
$106.4 million, representing approximately 12.6 percent of
market deposits. Wells Fargo proposes to divest one branch
in the market, with $74.8 million of deposits, representing
approximately 8.9 percent of market deposits, to a suitable
out- of-market competitor. After the proposed merger and
divestiture, Wells Fargo would continue to operate the
largest depository institution in the market, controlling
deposits of $303.9 million, representing approximately
36 percent of market deposits. The HHI would increase by
175 points to 2004.
New Mexico
Albuquerque: Wells Fargo operates the third largest depository institution in the market, controlling deposits of
$1.2 billion, representing approximately 23.7 percent of
market deposits. First Security operates the second largest
depository institution in the market, controlling deposits of
$1.3 billion, representing approximately 24.2 percent
of market deposits. Wells Fargo proposes to divest
20 branches in the market, with $725 million of deposits,
representing approximately 14 percent of market deposits,
to a suitable out-of-market competitor. After the proposed
merger and divestiture, Wells Fargo would operate the
largest depository institution in the market, controlling
deposits of $1.7 billion, representing approximately
33.8 percent of market deposits. The HHI would increase
by 196 points to 2247.
Las Cruces: Wells Fargo operates the fifth largest depository institution in the market, controlling deposits of
$79.3 million, representing approximately 7.4 percent of
market deposits. First Security operates the second largest
depository institution in the market, controlling deposits of
$236.3 million, representing approximately 22 percent of
market deposits. Wells Fargo proposes to divest one branch
in the market, with $14.6 million of deposits, representing
approximately 1.3 percent of market deposits, to a suitable
out-of-market depository institution. After the proposed
merger and divestiture, Wells Fargo would operate the
largest depository institution in the market, controlling
deposits of approximately $301 million, representing
851
approximately 27.1 percent of market deposits. The HHI
would increase by 234 points to 1750.1
Utah
Box Elder: Wells Fargo operates the second largest depository institution in the market, controlling deposits of
$34.7 million, representing approximately 14.6 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of
$128.4 million, representing approximately 53.9 percent of
market deposits. Wells Fargo proposes to divest one branch
in the market, with $34.7 million of deposits, representing
approximately 14.6 percent of market deposits, to a suitable out-of-market competitor. After the proposed merger
and divestiture, Wells Fargo would operate the largest
depository institution in the market, controlling deposits of
$128.4 million, representing approximately 53.9 percent of
market deposits. The HHI would remain unchanged at
3361.
Park City: Wells Fargo operates the fourth largest depository institution in the market, controlling deposits of
$30.2 million, representing approximately 6.9 percent of
market deposits. First Security operates the largest depository institution in the market, controlling deposits of $167.3
million, representing approximately 38.2 percent of market
deposits. Wells Fargo proposes to divest one branch in the
market, with $30.2 million of deposits, representing approximately 6.9 percent of market deposits, to a suitable
out-of-market competitor. After the proposed merger and
divestiture, Wells Fargo would operate the largest depository institution in the market, controlling deposits of $167.3
million, representing approximately 38.2 percent of market
deposits. The HHI would remain unchanged at 2668.
ORDERS ISSUED UNDER INTERNATIONAL
BANKING
ACT
Banco Itau S.A.
Sao Paolo, Brazil
Order Approving Establishment of a Representative
Office
Banco Itau S.A. ("Bank"), Sao Paolo, Brazil, a foreign
bank within the meaning of the International Banking Act
("IBA"), has applied under section 10(a) of the IBA
(12 U.S.C. § 3107(a)) to establish a representative office in
Miami, Florida. The Foreign Bank Supervision Enhancement Act of 1991 ("FBSEA"), which amended the IBA,
provides that a foreign bank must obtain the approval of
1. These market share calculations may overstate the competitive
significance of one savings association in the market, based on the
unique business focus of the institution. Based on all the facts of
record, however, including the presence of two other savings associations as active commercial lenders in the market, the Board has
determined that the increase in HHI in the market is consistent with
approval of the proposal.
852
Federal Reserve Bulletin • December 2000
the Board to establish a representative office in the United
States.
Notice of the application, affording interested persons an
opportunity to submit comments, has been published in a
newspaper of general circulation in Miami (The Miami
Herald, March 12, 2000). The time for filing comments has
expired and all comments have been considered.
Bank, with assets of $30 billion (as of June 30, 2000), is
the fourth largest banking organization in Brazil. Bank is
78 percent owned by Itausa-Investimentos Itau S.A.
("Itausa") and its subsidiaries. Approximately 60 percent
of Itausa is owned by members of two related Brazilian
families, either directly or through related companies. The
remaining 40 percent of Itausa's shares is owned by the
public (18 percent), two foundations associated with
Bank (12 percent), and an unrelated Brazilian company
(10 percent).
Bank provides commercial and retail banking services,
investment banking services, and other financial services
such as securities brokerage and insurance. Bank operates
branches in New York and the Cayman Islands, banking
subsidiaries in the Cayman Islands, Argentina, and Uruguay, and a representative office in Frankfurt, Germany.
Bank also owns less than 20 percent of the shares of banks
operating in Luxembourg and Portugal. Bank's parent,
Itausa, owns most of the remaining shares of these banks.
The representative office would market the products of
Bank in the United States, act as a liaison between head
office and U.S.-based customers, and facilitate correspondent banking activities in the United States.
In acting on an application to establish a representative
office, the IBA and Regulation K provide that the Board
shall take into account whether the foreign bank engages
directly in the business of banking outside of the United
States and has furnished to the Board the information it
needs to assess the application adequately. The Board also
shall take into account whether the foreign bank and any
foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its home
country supervisor.1 In addition, the Board may take into
account additional standards set forth in the IBA and
1. See 12 U.S.C. § 3107(a)(2); 12 CFR 211.24(d)(2). In assessing
this standard, the Board considers, among other factors, the extent to
which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring
and controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its
subsidiaries and offices through regular examination reports,
audit reports, or otherwise;
(iii) Obtain information on the dealings with and relationship
between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated
on a worldwide basis, or comparable information that permits
analysis of the bank's financial condition on a worldwide
consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and
risk asset exposure, on a worldwide basis. These are indicia
of comprehensive consolidated supervision; no single factor
is essential and other elements may inform the Board's
determination.
Regulation K.2 The Board previously has stated that the
standards that apply to the establishment of a branch or
agency need not in every case apply to the establishment of
a representative office, because representative offices do
not engage in a banking business and cannot take deposits
or make loans.3
As noted above, Bank engages directly in the business of
banking outside the United States through its banking
operations in Brazil and elsewhere. Bank has provided the
Board with the information necessary to assess the application through submissions that address the relevant issues.
With respect to home country supervision of Bank, the
Board has considered the following information. Bank is
subject to the regulatory and supervisory authority of the
Central Bank of Brazil (the "Central Bank"), which has
primary responsibility for the regulation of financial institutions in Brazil. The Board previously has determined that
the Central Bank exercises a significant degree of supervision over the activities of three other Brazilian banks, each
of which were approved to establish representative offices
in the United States.4 Bank is supervised by the Central
Bank on substantially the same terms and conditions as the
other Brazilian banks. Based on all the facts of record, the
Board has determined that factors relating to the supervision of Bank by its home country supervisor are consistent
with approval of the proposed representative office. The
Board has taken into account the additional standards set
forth in the IBA and in Regulation K.5 The Central Bank
has authorized Bank to establish the proposed office. With
respect to the financial and managerial resources of Bank,
taking into consideration Bank's record of operations in its
home country, its overall financial resources, and its standing with its home country supervisor, the Board has determined that financial and managerial considerations are
consistent with approval. In addition, Bank appears to have
the experience and capacity to support the proposed office
and has established controls and procedures in the branch
to ensure compliance with applicable U.S. law, as well as
controls and procedures for its worldwide operations generally.
With respect to access to information, the Board has
reviewed the restrictions on disclosure in relevant jurisdictions in which Bank operates and has communicated with
relevant government authorities about access to information. Bank and Itausa have committed to make available to
the Board such information on the operations of Bank and
any affiliate of Bank that the Board deems necessary to
determine and enforce compliance with the IBA, the Bank
Holding Company Act, and other applicable federal law.
2. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2).
3. See 58 Federal Register 6348, 6351 (1993). See also Banco de la
Ciudad de Buenos Aires, 85 Federal Reserve Bulletin 647 (1999);
Agricultural Bank of China, 83 Federal Reserve Bulletin 617 (1997);
Citizens National Bank, 79 Federal Reser\'e Bulletin 805 (1993).
4. See Banco Bandeirantes, S.A., 81 Federal Reserve Bulletin 742
(1995); Unibanco-Uniao do Banco Brasileiros, S.A., 82 Federal Reserve Bulletin 1148 (1996); Banco BBA-Creditanstalt S.A., 85 Federal
Reserve Bulletin 518 (1999).
5. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2).
Legal Developments
To the extent that the provision of such information may be
prohibited or impeded by law or otherwise, Bank and
Itausa have committed to cooperate with the Board to
obtain any necessary consents or waivers that might be
required from third parties in connection with disclosure of
certain information. In addition, subject to certain conditions, the Central Bank may share information on Bank's
operations with other supervisors, including the Board. In
light of these commitments and other facts of record, and
subject to the condition described below, the Board has concluded that Bank has provided adequate assurances of access
to any necessary information the Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank, as well as the terms and
conditions set forth in this order, the Board has determined
that Bank's application to establish a representative office
in Miami should be, and hereby is, approved. Should any
restrictions on access to information on the operations or
activities of Bank or any of its affiliates subsequently
interfere with the Board's ability to determine and enforce
compliance by Bank or its affiliates with applicable federal
statutes, the Board may require or recommend termination
of any of Bank's direct or indirect activities in the United
APPLICATIONS APPROVED
853
States. Approval of this application also is specifically
conditioned on Bank's compliance with the commitments
made in connection with this application and with the
conditions in this order.6 The commitments and conditions
referred to above are conditions imposed in writing by the
Board in connection with its decision and may be enforced
in proceedings against Bank and its affiliates under applicable law.
By order of the Board of Governors, effective
October 16, 2000.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Gramlich. Absent and not voting:
Governor Meyer.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
6. The Board's authority to approve the establishment of the proposed office parallels the continuing authority of the State of Florida
to license offices of a foreign bank. The Board's approval of this
application does not supplant the authority of the State of Florida or its
agent, the Florida Department of Banking and Finance, to license the
proposed office of Bank in accordance with any terms or conditions
that the Florida Department of Banking and Finance may impose.
UNDER BANK HOLDING COMPANY
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)
Bank(s)
Effective Date
Pinnacle Financial Partners, Inc.,
Nashville, Tennessee
Pinnacle National Bank,
Nashville, Tennessee
October 12, 2000
APPLICATIONS APPROVED
UNDER BANK HOLDING COMPANY
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Alpena Banking Corporation,
Alpena, Michigan
ANB Holdings, Inc.,
Oakland Park, Florida
Atlantic National Corporation,
Brunswick, Georgia
The Bank of Alpena,
Alpena, Michigan
American National Bank,
Oakland Park, Florida
Atlantic National Bank,
Brunswick, Georgia
Chicago
October 5, 2000
Atlanta
October 23, 2000
Atlanta
October 12, 2000
854
Federal Reserve Bulletin • December 2000
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Avant Financial, LLC,
Syracuse, New York
The Avoca Company,
Omaha, Nebraska
Farmers State Bank of Nebraska,
Bennet, Nebraska
Basile Bancshares, Inc.,
Basile, Louisiana
BB&T Corporation,
Winston-Salem, North Carolina
Big Mac Bancshares, Inc.,
Hoxie, Kansas
BOK Financial Corporation,
Tulsa, Oklahoma
BOU Bancorp,
Ogden, Utah
Capitol Bancorp Ltd.,
Lansing, Michigan
Sun Community Bancorp Limited,
Phoenix, Arizona
Central Banc, Inc.,
Geneseo, Illinois
Central Financial Corporation,
Hutchinson, Kansas
Central Financial Corporation,
Hutchinson, Kansas
CommunityOne BancShares, Inc.,
Plymouth, Minnesota
Coronado Financial Corporation,
Lyons, Kansas
Cumberland Bancorp, Inc.,
Nashville, Tennessee
Custer Bancorp,
Westcliffe, Colorado
Dinsdale Brothers, Inc.,
Palmer, Nebraska
Elmer Bancorp, Inc.,
Elmer, New Jersey
F.F. Holding Corporation,
West Chicago, Illinois
Reliance Bank,
White Plains, New York
First State Bank of Nebraska,
Nebraska City, Nebraska
New York
October 25, 2000
Kansas City
October 11, 2000
Basile State Bank,
Basile, Louisiana
FCNB Corp,
Frederick, Maryland
Peoples State Bank,
McDonald, Kansas
CNBT Bancshares, Inc.,
Bellaire, Texas
Bank of Utah,
Ogden, Utah
Yuma Community Bank,
Yuma, Arizona
Atlanta
October 6, 2000
Richmond
October 19, 2000
Kansas City
October 13, 2000
Kansas City
October 26, 2000
San Francisco
September 21, 2000
Chicago
October 18, 2000
Marquette Bank Fulton,
Fulton, Illinois
Bank of Nevada,
Las Vegas, Nevada
New Frontier Bancshares, Inc.,
St. Charles, Missouri
Community Bank Plymouth,
Plymouth, Minnesota
Lyons State Bank,
Lyons, Kansas
Insurors Bank of Tennessee,
Nashville, Tennessee
Orchard Valley Financial Corp.,
Englewood, Colorado
Pinnacle Bank-Wyoming,
Torrington, Wyoming
The First National Bank of Elmer,
Elmer, New Jersey
Rush-Oak Corporation,
Chicago, Illinois
Oak Bank,
Chicago, Illinois
Commercial Bank of San Francisco,
San Francisco, California
Chicago
October 26, 2000
Kansas City
September 25, 2000
Kansas City
September 28, 2000
Minneapolis
September 25, 2000
Kansas City
October 25, 2000
Atlanta
October 16, 2000
Kansas City
October 6, 2000
Kansas City
October 5, 2000
Philadelphia
October 19, 2000
Chicago
September 26, 2000
St. Louis
October 10, 2000
Kansas City
September 26, 2000
Atlanta
October 16, 2000
First Banks, Inc.,
St. Louis, Missouri
First Banks America, Inc.,
St. Louis, Missouri
First Liberty Capital Corporation
Employee Stock Ownership Plan,
Hugo, Colorado
InsCorp, Inc.,
Nashville, Tennessee
First Liberty Capital Corporation,
Hugo, Colorado
The First National Bank of Hugo,
Hugo, Colorado
Insurors Bank of Tennessee,
Nashville, Tennessee
Legal Developments
855
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Marquette County Financial
Corporation,
Negaunee, Michigan
Mercantile Bancorp, Inc.,
Quincy, Illinois
New Frontier Bancshares, Inc.
St. Charles, Missouri
North Valley Bancorp,
Redding, California
Northwest Financial Corp.,
Spencer, Iowa
Tanis, Inc.,
Calumet, Michigan
Minneapolis
October 2, 2000
New Frontier Bancshares, Inc.,
St. Charles, Missouri
New Frontier Bank,
St. Charles, Missouri
Six Rivers National Bank,
Eureka, California
Plymouth Bancorporation, Inc.,
Le Mars, Iowa
First National Bank,
Sioux City, Iowa
Ames Community Bank,
Ames, Iowa
Baxley Federal Savings Bank, F.S.B.,
Baxley, Georgia
Premier Community Bank of Southwest
Florida, Lehigh Acres, Florida
Premier Bank,
Wilmette, Illinois
Prime Pacific Bank, N.A.,
Lynnwood, Washington
St. Louis
September 27, 2000
St. Louis
September 27, 2000
San Francisco
September 22, 2000
Chicago
October 26, 2000
Chicago
October 20, 2000
Atlanta
October 19, 2000
Atlanta
October 13, 2000
Chicago
September 29, 2000
San Francisco
October 17, 2000
Minneapolis
October 4, 2000
Dallas
October 25, 2000
Union Bank of Florida,
Plantation, Florida
First Ascension Bancorp, Inc.,
Gonzales, Louisiana
Northbrook Bank & Trust Company,
Northbrook, Illinois
Atlanta
September 28, 2000
Atlanta
October 16, 2000
Chicago
October 12, 2000
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Allegiant Bancorp, Inc.
St. Louis, Missouri
Equality Bancorp, Inc.,
St. Louis, Missouri
Equality Savings Bank,
St. Louis, Missouri
Bankmont Financial Corporation,
Chicago, Illinois
St. Louis
October 20, 2000
Chicago
October 20, 2000
Chicago
October 6, 2000
Ogden Bancshares, Inc.,
Ogden, Iowa
PAB Bankshares, Inc.,
Valdosta, Georgia
PCB Bancorp, Inc.,
Largo, Florida
Premier Bancorp, Inc.,
Wilmette, Illinois
Prime Pacific Financial Services,
Inc.,
Lynnwood, Washington
Quality Bancshares, Inc.,
Fargo, North Dakota
Sterling City Bancshares, Inc.,
Sterling City, Texas
Sterling City Delaware Financial
Corporation,
Dover, Delaware
UB Financial Corporation,
Plantation, Florida
Whitney Holding Corporation,
New Orleans, Louisiana
Wintrust Financial Corporation,
Lake Forest, Illinois
Fingal State Bank,
Fingal, North Dakota
The First National Bank of Sterling
City,
Sterling City, Texas
Section 4
Bank of Montreal,
Ontario, Canada
Bank of Montreal,
Chicago, Illinois
Bank One Corporation,
Chicago, Illinois
To engage in nonbanking activities
856
Federal Reserve Bulletin • December 2000
Section 4—Continued
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
F&M Financial Services, Inc.,
Preston, Minnesota
Uwharrie Capital Corporation,
Albemarle, North Carolina
MDS On-line, LLC,
La Crosse, Wisconsin
Albemarle Heritage, LLC,
Albemarle, North Carolina
Minneapolis
October 18, 2000
Richmond
October 13, 2000
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Grace Investment Company,
Alva, Oklahoma
The Sumitomo Bank, Limited,
Osaka, Japan
The First National Bank in Okeene,
Okeene, Oklahoma
The Sakura Bank, Limited,
Tokyo, Japan
Manufacturers Bank,
Los Angeles, California
Kansas City
October 25, 2000
San Francisco
October 20, 2000
Sections 3 and 4
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.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Arvest Bank,
Norman, Oklahoma
BancFirst,
Oklahoma City, Oklahoma
Bank of Lancaster,
Kilmarnock, Virginia
Arvest United Bank,
Oklahoma City, Oklahoma
First State Bank,
Oklahoma City, Oklahoma
First Virginia Bank,
Falls Church, Virginia
First Virginia Bank-Hampton Roads,
Norfolk, Virginia
Bank of Honolulu,
Honolulu, Hawaii
AmSouth Bank,
Birmingham, Alabama
Citizens State Bank,
Keenesburg, Colorado
County Bank of Chesterfield,
Midlothian, Virginia
Commerce Bank of Virginia,
Richmond, Virginia
First National Bank of Walsenburg,
Walsenburg, Colorado
St. Louis
September 27, 2000
Kansas City
October 12, 2000
Richmond
September 29, 2000
San Francisco
October 13, 2000
Richmond
October 18, 2000
Kansas City
October 3, 2000
Richmond
October 19, 2000
Kansas City
October 19, 2000
First American Bank, N.A.,
Woodward, Oklahoma
Kansas City
October 16, 2000
Arvest Bank,
Joplin, Missouri
Laurel Bank,
Johnstown, Pennsylvania
St. Louis
September 25, 2000
Cleveland
October 5, 2000
Bank of the Orient,
San Francisco, California
Bank of Tazewell County,
Tazewell, Virginia
Bankwest of Kansas,
Goodland, Kansas
Commerce Bank,
Petersburg, Virginia
Community Banks of Southern
Colorado,
Rocky Ford, Colorado
First American Bank and Trust
Company,
Purcell, Oklahoma
First Arvest Bank,
Siloam, Springs, Arkansas
Iron and Glass Bank,
Pittsburgh, Pennsylvania
Legal Developments
857
Applications Approved Under Bank Merger Act—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Northern Neck State Bank,
Warsaw, Virginia
First Virginia Bank-Hampton Roads,
Norfolk, Virginia
Bank of Lancaster,
Kilmarnock, Virginia
United Community Bank,
Franklin, Virginia
American Heritage Bank,
El Reno, Oklahoma
Citizens Bank of Tulsa,
Tulsa, Oklahoma
Pinnacle Bank, N.A.,
Wisner, Nebraska
Pinnacle Bank,
Cody, Wyoming
Pinnacle Bank,
Newcastle, Wyoming
Pinnacle Bank,
Mitchell, Nebraska
Richmond
October 13, 2000
Richmond
October 4, 2000
Kansas City
October 19, 2000
Kansas City
October 25, 2000
Kansas City
September 29, 2000
Peninsula Trust Bank,
Gloucester, Virginia
People First Bank,
Hennessey, Oklahoma
Pinnacle Bank,
Papillion, Nebraska
Pinnacle Bank-Wyoming,
Torrington, Wyoming
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.
El Bey v. United States, No. 00-5293 (D.C. Cir., filed
August 31, 2000). Appeal from district court order dismissing pro se action as lacking arguable basis in law. The
government filed a motion for summary affirmance on October 26, 2000.
Trans Union LLC v. Board of Governors, et al., No. 00-CV2087 (ESH) (D.D.C., filed August 30, 2000). Action under
Administrative Procedure Act challenging a portion of interagency rule regarding Privacy of Consumer Financial Information.
Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed
August 7, 2000). Appeal of district court dismissal of action
under Federal Tort Claims Act alleging violation of bank
supervision requirements.
Individual Reference Services Group, Inc., v. Board of Governors, et al, No. 00-CV-1828 (ESH) (D.D.C., filed July 28,
2000). Action under Administrative Procedure Act challenging a portion of interagency rule regarding Privacy of
Consumer Finance Information.
Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C.
Cir., filed June 30, 2000). Petition for review of interagency
rule regarding Privacy of Consumer Financial Information.
Board of Governors v. Interfinancial Services, Ltd., No.
00-5233 (D.C. Cir., filed June 27, 2000). Appeal of district
court order enforcing administrative subpoena issued by the
Board. On June 30, 2000, the court of appeals denied the
appellant's motion for a stay of the district court order.
Bettersworth v. Board of Governors, No. 00-50262 (5th Cir.,
filed April 14, 2000). Appeal of district court's dismissal of
Privacy Act claims.
Hunter v. Board of Governors, No. 00-CV-735 (ESH) (D.D.C.,
filed April 5, 2000). Action claiming retaliation for whistleblowing activity.
Bennett v. Federal Bureau of Investigation, et al., No.
H-00-0707 (S.D. Texas, filed March 1, 2000). Action alleging Board interference with a private investment. On
August 23, 2000, the government filed a motion to dismiss
the action.
Albrecht v. Board of Governors, No. 00-CV-317 (CKK)
(D.D.C., filed February 18, 2000). Action challenging the
funding of the retirement plan for certain Board employees.
Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed
January 14, 2000). Appeal of district court order granting
summary judgment to the Board in a Freedom of Information Act case. On October 26, 2000, the court of appeals
affirmed the district court's order.
Toland v. Internal Revenue Service, Federal Reserve System,
et al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed December 29, 1999). Challenge to income taxation and Federal Reserve notes. On February 16, 2000, the government
filed a motion to dismiss the action.
Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed
August 3, 1999). Employment discrimination action.
858
Federal Reserve Bulletin • December 2000
Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D.
Cal., filed July 21, 1999). Action relating to impounded
bank drafts.
Kerr v. Department of the Treasury, No. 99-16263 (9th Cir.,
filed April 28, 1999). Appeal of dismissal of action challenging income taxation and Federal Reserve notes.
Fraternal Order of Police v. Board of Governors, No.
1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998).
Declaratory judgment action challenging Board labor practices. On February 26, 1999, the Board filed a motion to
dismiss the action.
Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK)
(S.D.N.Y., filed May 15, 1998). Action to freeze assets of
individual pending administrative adjudication of civil
money penalty assessment by the Board. On May 26, 1998,
the court issued a preliminary injunction restraining the
transfer or disposition of the individual's assets and appointing the Federal Reserve Bank of New York as receiver for
those assets. Following entry of the Board's order requiring
restitution, 85 Federal Reserve Bulletin 142 (1998), the
court granted the Board's motion for judgment in the asset
freeze action and authorized a judicial sale of the seized
property.
Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed
May 4, 1998). Appeal and cross-appeal of district court
order granting in part and denying in part the Board's
motion for summary judgment seeking prejudgment interest
and a statutory surcharge in connection with a civil money
penalty assessed by the Board. On February 24, 1999, the
court granted the Board's appeal and denied the crossappeal, and remanded the matter to the district court for
determination of prejudgment interest due to the Board.
FINAL ENFORCEMENT DECISION
BOARD OF GOVERNORS
ISSUED BY THE
In the Matter of
Incus Co., Ltd.
Tortola, British Virgin Islands
and Carlos Hank Rhon
An Institution-Affiliated Party
Of Incus Co., Ltd., and
Laredo National Bancshares,
Laredo, Texas
Docket No. 98-038-B-FHC, 98-038, B-I, 98-038-CMPFHC, 98-038-CMP-I, 98-038-E-I
Determination on Request for Interlocutory Review
Respondents Incus Co., Ltd. and Carlos Hank Rhon have
requested interlocutory review of an order dated June 8,
2000, issued by administrative law judge ('ALJ") Arthur
L. Shipe, denying Respondents' motions to amend a stipulated confidentiality order, to strike from the record a
motion filed by Board Enforcement Counsel, and to order
Enforcement Counsel to show cause why they should not
be ordered to cease and desist from "abusing the public
record." The Board denies the request for interlocutory
review.
Requests for interlocutory review of pre-hearing orders
of an ALJ are governed by section 263.28 of the Board's
Rules of Practice for Hearings, 12 C.F.R. 263.28 ("Rule
28"). Under that rule, the Board "may exercise interlocutory review" of an ALJ order if the Board finds that at least
one of four circumstances exists:
(1) The ruling involves a controlling question of law
or policy as to which substantial grounds exist for
a difference of opinion;
(2) Immediate review of the ruling may materially
advance the ultimate termination of the proceeding;
(3) Subsequent modification of the ruling at the conclusion of the proceeding would be an inadequate
remedy; or
(4) Subsequent modification of the ruling would cause
unusual delay or expense. 12 C.F.R. 263.28(b).
As the Board has previously had occasion to rule in this
matter, interlocutory review is discretionary, and the scope
within which such discretion should be exercised is extremely narrow. In the Matter of Incus Co., 86 Federal
Reserve Bulletin 246 (2000). Thus, a finding of one of the
four circumstances identified in Rule 28 is necessary, but
may not be sufficient, to justify interlocutory review by the
Board. Id. Rather, the Board will exercise its discretion to
grant interlocutory review "where at least one of the prerequisites is met, using all of the prerequisites as guideposts in the exercise of that discretion ."Id.
Here, Respondents have objected in a variety of ways to
the consequences of the Board's prior decision not to close
the hearing in this matter to the public. See In the Matter of
Incus Co., 85 Federal Reserve Bulletin 284 (1999). First,
they claim that Enforcement Counsel's reference in filings
in this proceeding to financial information relating to various individuals is an "abuse" of the record, designed to
embarrass Respondents and the Hank Rhon family. From
this premise they conclude that a stipulated protective
order must be revised by the Board to provide protection
for deposition testimony, and that Enforcement Counsel
must be ordered to "cease and desist" such alleged abuse.
Respondents provide no support for their allegation of
abuse apart from the fact that certain information contained
in Enforcement Counsel's filings was picked up in press
reports. Press coverage is one of the consequences of the
Congressional mandate that, absent extraordinary circumstances, enforcement proceedings such as these be open to
the public. Moreover, Respondents have not established
that this alleged abuse meets any of the criteria for interlocutory review of an ALJ's order. While they argue that the
ALJ's decision not to amend the stipulated protective order
was based on an erroneous reading of the law, their legal
arguments are not persuasive. The Board's regulations
relating to release of confidential financial information
pursuant to the Freedom of Information Act or in response
to a third-party request have no application to these en-
Legal Developments
forcement proceedings and would provide no basis for
amending the protective order in this case. And no case
cited by Respondents suggests that a court or agency is
constitutionally required to seal the record of a public
proceeding to protect personal financial information relevant to the proceeding.1
Similarly, the Board sees no basis to disturb the ALJ's
decision not to strike the so-called "Halmos Motion" from
the record. Respondents claim that the text of the motion as
submitted by Enforcement Counsel mischaracterizes a witness's declaration. The declaration speaks for itself and is
included in the record; moreover, Respondents have
pointed out in the record the areas in which they consider
the characterizations to be inaccurate. There is no need to
strike a filing on this basis.
For these reasons, Respondents' request for interlocutory review is denied.
So ordered, this 11th day of October, 2000.
Board of Governors of the
Federal Reserve System
WRITTEN AGREEMENTS
RESERVE
BANKS
APPROVED
BY
859
FEDERAL
Bay View Capital Corporation
San Mateo, California
The Federal Reserve Board announced on October 11,
2000, the execution of a Written Agreement by and
between Bay View Capital Corporation, San Mateo, California, and the Federal Reserve Bank of San Francisco.
Citizens Deposit Bank and Trust Company
Vanceburg, Kentucky
The Federal Reserve Board announced on October 23,
2000, the execution of a Written Agreement by and
between the Citizens Deposit Bank and Trust Company,
Vanceburg, Kentucky, and the Federal Reserve Bank of
Cleveland.
JENNIFER J. JOHNSON
Secretary of the Board
1. Indeed, Respondents' own cases establish that to whatever extent
personal financial information is entitled to constitutional protection,
that protection is frequently overridden by legitimate governmental
interests. See Strathoros v. New York City Taxi and Limousine
Comm'n, 198 F.3d 317 (2d Cir. 1999); AFGE v. Dep't of Housing and
Urban Dev., 118 F.3d 786 (D.C. Cir. 1997), reversing AFGE v. U.S.
Dep't of Housing and Urban Dev., 924 F. Supp. 225 (D.D.C. 1996). In
this case, Congress has made the judgment that the public interest in
open proceedings outweighs the privacy interests of the individuals
and third parties involved. In the Matter of Incus, 85 Federal Reserve
Bulletin 284, 285 (1999).
Independent Southern Bancshares, Inc.
Employee Stock Ownership Trust
Brownsville, Tennessee
The Federal Reserve Board announced on October 2, 2000
the execution of a Written Agreement by and among
Independent Southern Bancshares, Inc. Employee Stock
Ownership Trust, and Independent Southern Bancshares,
Inc., both of Brownsville, Tennessee, and the Federal Reserve Bank of St. Louis.
A1
Financial and Business Statistics
A3
GUIDE TO TABULAR
DOMESTIC
FINANCIAL
STATISTICS
Money Stock and Bank Credit
A4
A5
A6
Reserves, money stock, and debt measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Policy Instruments
A7
A8
A9
Federal Finance—Continued
PRESENTATION
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding
All
Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and liabilities
A3 3 Domestic finance companies—Owned and managed
receivables
Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock and debt measures
Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20
All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions
A34 Mortgage markets—New homes
A35 Mortgage debt outstanding
Consumer Credit
A36 Total outstanding
A3 6 Terms
Flow of Funds
A37
A39
A40
A41
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
All Federal debt subject to statutory limitation
DOMESTIC
NONFINANCIAL
STATISTICS
Selected Measures
A42
A42
A43
A44
A46
A47
A48
A49
Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving
2
Federal Reserve Bulletin • December 2000
INTERNATIONAL
STATISTICS
Summary Statistics
A50
A51
A51
A51
U.S. international transactions
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United States
A52
A53
A55
A56
Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—Combined
domestic offices and foreign branches
Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners
Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange Rates
A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL
SPECIAL
RELEASES
TABLES
A64 INDEX TO STATISTICAL
TABLES
AND
A3
Guide to Tabular Presentation
SYMBOLS AND
c
e
n.a.
P
r
*
0
ATS
BIF
CD
CMO
CRA
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSA
FSLIC
G-7
G-10
GENERAL
ABBREVIATIONS
Corrected
Estimated
Not available
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Farm Service Agency
Federal Savings and Loan Insurance Corporation
Group of Seven
Group of Ten
GDP
GNMA
HUD
IMF
IOs
IPCs
IRA
MMDA
MSA
NOW
OCDs
OPEC
OTS
PMI
POs
REIT
REMICs
RHS
RP
RTC
SCO
SDR
SIC
VA
Gross domestic product
Government National Mortgage Association
Department of Housing and Urban
Development
International Monetary Fund
Interest only, stripped, mortgage-back securities
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposits
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only, stripped, mortgage-back securities
Real estate investment trust
Real estate mortgage investment conduits
Rural Housing Service
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
INFORMATION
In many of the tables, components do not sum to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury.
"State and local government" also includes municipalities,
special districts, and other political subdivisions.
A4
DomesticNonfinancialStatistics • December 2000
1.10
RESERVES, MONEY STOCK, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted 1
W99
2000
2000
Monetary or credit aggregate
Reserves of depository institutions~
1 Total
2 Required
3 Nonborrowed
4 Monetary base3
5
6
7
8
Concepts of money and debt4
Ml
M2
M3
Debt
Nontransaction components
y In M25
10 In M3 only5
ii
12
13
14
li
16
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time 8,9
Thrift institutions
Savings, including MMDAs
Small time7
Large time8
Money market mutual funds
17 Retail
18 Institution-only
Repurchase agreements and eurodollars
iy Repurchase agreements10
20 Eurodollars' 0
Debt components4
21 Federal
22 Nonfederal
Q4
Qi
Q2
Q3
May
June
Julyr
Aug.r
Sept.
-3.4
-4.5
-3.0
20.4
1.8
.1
2.4
4.3
-9.5
-5.9
-11.1
-3.2
-7.1
-7.5
-8.8
2.5
12.5
19.0
10.9
2.5
-40.6
-45.1
-44.4
2.8
9.0
9.1
6.4
3.7
-9.4
-8.0
-9.8
.4
-2.4
-5.6
.7
2.9
-10.9
-.5
3.9r
5.T
-1.7
3.8
1.7
5.6r
1.1
3.5
8.6
5.1
-3.7
7.3
9.7
5.4
-6.6
8.5
8.0
n.a.
4.8
5.2
6.1
6.3
-1.2
6.3
8.5r
6.2r
-2.8
4.5
11. r
5.6
5.3
24.8r
8.0
24.3r
8.6
13.9r
6.7
17.0
2.7
14.9r
5.4
17.4r
4.3
21.1
10.5
15.6
12.9
7.0
4.2
7.0
38.5
3.6
9.3
22.2
8.1
10.5
10.3
9.5
-2.4
10.9
1.7
7.3
17.5
19.1
10.1
13.7
17.7
8.2
9.7
14.5
9.2
18.5
22.3
3.7
-20.4
-3.3
5.1
6.0
-1.7
7.2
17.9
1.9
3.7
-.7
2.5
11.6
20.3
11.5
7.0
-12.7
-1.9
9.2
24.4
-.5
12.0
26.4
6.6
16.2
27.0
3.4
9.6
10.8
10.8
22.0
19.3
23.8
10.9
13.7
-1.2
33.4
-1.9
17.0
-3.9
15.5
-7.9
51.8
5.4
28.2
11.7
32.7
19.5 r
10.0
22.4
41. l r
10.8
15.4r
8.0
1.4
33.1
32.7r
28.8
-5.7r
5.9
-20.5
-16.9
16.3
-1.3
21.8
-4.4
9.3
-4.8
8.4
-7.5
9.1'
-8.4
9.0r
-3.7
7.2
-7.3
8.4
n.a.
n.a.
10.4r
1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash hems in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all
.0
8.1
n.a.
n.a.
n.a.
-18.1
11.0r
depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$ 100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
Average of
daily figures
Average of daily figures for week ending on date indicated
2000
2000
Aug.
Sept.
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
559,982
557,962
561,086
558,150
557,929
556,799
562,878
559.406
562,208
558,792
506.116
0
509,923
0
510,925
0
510,753
0
509,767
0
511,147
0
511,123
0
512,218
0
509,013
0
511,153
0
140
0
17,642
0
140
0
12,059
0
133
0
14,427
0
140
0
10,822
0
140
0
13,281
0
140
0
10,761
0
140
0
17,664
0
136
0
11,205
0
130
0
17,286
0
130
0
11,425
0
64
513
0
0
469
35,038
24
559
0
0
896
34,362
52
424
0
0
776
34,349
9
539
0
0
899
34,988
14
565
0
0
959
33,204
54
586
0
0
492
33,619
36
531
0
0
-10
33,394
4
422
0
0
1,462
33,959
135
384
0
0
977
34,284
18
398
0
0
677
34,991
11.046
4,200
30,167
11,046
4,200
30,444
11,046
3,667
30,687
11,046
4,200
30,432
11,046
4,200
30,471
11,046
4,200
30,510
11,046
4,200
30,549
11,046
4,200
30,657
11.046
3,343
30,708
11,046
3,200
30,759
570,798
0
85
569,532
0
146
570,465
0
170
570,072
0
140
569,067
0
157
568.790
0
161
572,637
0
166
572,073
0
167
569,649
0
164
568,349
0
177
5,172
120
6,784
233
15,652
6,552
5,047
87
6,745r
239
15,269
6,588r
6,695
84
6,704
227
15,260
6,881
5,226
80
6,824
255
15,246
5,984
4,824
101
6,821r
234
15,234
7,208
5,245
77
6,693r
205
15,301
6,083r
5,594
74
6,788
248
15,156
8,011
4,627
80
6,588
237
15,278
6,259
8,574
86
6,473
199
15,261
6.899
7,357
77
6,894
242
15,333
5,369
Sept. 13
Sept. 20
Sept. 27
July
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities"
2
Bought outright—System account3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Repurchase agreements—triparty4
7
Acceptances
Loans to depository institutions
8
Adjustment credit
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding
ABSORBING RESERVE FUNDS
17 Currency in circulation
18 Reverse repurchase agreements—triparty4
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
•
22
Service-related balances and adjustments . .
23
Other
24 Other Federal Reserve liabilities and capital .
25 Reserve balances with Federal Reserve Banks5
Wednesday figures
End-of-month figures
Aug. 23
Aug. 30
557,033
563,303
559,930
564,390
559,863
566,465
561,557
511,413
0
513,023
0
510,664
0
513,095
0
512,447
0
510,829
0
510,434
0
512,472
0
140
0
18,525
0
130
0
17,320
0
140
0
10,020
0
140
0
18,330
0
140
0
11,935
0
140
0
16,680
0
130
0
11,840
0
130
0
19,885
0
130
0
12.170
0
45
584
0
0
1,348
35,119
30
567
0
0
198r
33,240
4
368
0
0
372
35,774
12
545
0
0
280
33,012
7
580
0
0
143
33,440
20
586
0
0
319
33,835
129
504
0
0
741
33.749
8
387
0
0
2,508
34,161
908
392
0
0
124
34,591
7
407
0
0
642
35,728
11,046
4,200
30,283
11,046
4,200
30,549
11,046
3,200
30,811
11,046
4,200
30,432
11.046
4,200
30,471
11,046
4,200
30,510
11.046
4,200
30,549
11,046
4,200
30,657
11.046
3.200
30,708
11,046
3.200
30,759
568,806
0
118
571,430
0
166
568,612
0
184
570,789
0
156
569,588
0
161
570,948
0
161
573,995
0
168
571,790
0
162
569,742
0
175
569,672
0
184
5,392
76
6,553
228
15,331
9,852
5,961
79
6,788r
214
15,180
8,859r
8,459
139
6,894
177
15,243
10,731
3,943
83
6,824
259
14,908
5,748
5,150
71
6,82 r
203
14,947
12,079
5,948
99
6,693r
202
14,915
6,720r
4.359
75
6,788
247
14,928
9,625
5,348
74
6,588
188
14.949
6,667
7,413
66
6,473
192
15,003
12,355
7,986
75
6,897
189
15,034
6,527
July
Aug.
Sept.
Aug. 16
560,828
562,882r
565,382
506,103
0
510,182
0
140
0
17,490
0
Sept. 6
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities2
Bought outright—System account3
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Repurchase agreements—triparty4 . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Special Liquidity Facility credit. . .
Extended credit
Float
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account .
16 Treasury currency outstanding
ABSORBING RESERVE FUNDS
17 Currency in circulation
18 Reverse repurchase agreements—triparty4 .
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments
23
Other
24 Other Federal Reserve liabilities and capital
25 Reserve balances with Federal Reserve Banks
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
4. Cash value of agreements arranged through third-party custodial banks. These agreements are collateralized by U.S. government and federal agency securities.
5. Excludes required clearing balances and adjustments to compensate for float.
A6
DomesticNonfinancialStatistics • December 2000
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
11
12
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility 8
Extended credit9
1997
1998
1999
2000
Dec.
Dec.
Dec.
Mar.
Apr.
May
June
July
Aug.
Sept.
10,664
44,742
37,255
7,486
47,919
46,235
1,685
324
245
79
9,026
44,294
36,183
8,111
45.209
43,695
1,514
117
101
15
7,081
46,456
33,512
12,944
40,593
39,448
1,145
304
184
120
0
0
6,460
44,560
32,757
11,802
39,217
38,153
1,064
479
90
389
6,582
45,475
33,086
12,389
39,668
38,600
1,068
570
60
510
6,875 r
45,322
32,61 r
12,71 l r
39,486 r
38,471
l,014 r
579
25
554
6,826
44,802
32,435
12,367
39,261
38,144
1,117
477
50
427
0
6,515
48,952
33,237
15,715
39,752
38,547
1,205
179
101
71
7
0
7,661
44,643
33,898
10,745
41,558
40,616
943
362
86
276
0
5,263
60,630
36,392
24,238
41,655
40,348
1,307
320
179
67
74
0
0
0
0
0
0
Biweekly averages of daily figures for two-week periods ending on dates indicated
2000
1
2
3
4
5
6
7
8
9
10
11
12
Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility 8
Extended credit9
May 31
June 14
June 28
July 12
July 26
Aug. 9
Aug. 23
Sept. 6 r
Sept. 20
Oct. 4
7,741
45,164
34,458
10,706
42,199
41,223
976
440
100
340
6,498
43,847
32,184
11,663
38,682
37,769
913
472
134
339
6,413
45,098
33,333
11,765
39,746
38,545
1,200
471
43
428
6,524
45,783
32,742
13,041
39,266
38,103
1,162
589
117
472
6,388
44,921
33.184
11,737
39,572
38,596
975
549
22
527
7,267
46,291
33,638
12,654
40,904
39,802
1,102
581
27
555
6,603
45,398
32,195
13,204
38,797
37,818
979
564
12
552
6,911
44,099
32,184
11,915
39,095
38,118
977
604
45
559
6,578
44,814
32,077
12,737
38,655
37,612
1,043
473
70
403
7,123
45,208
33,087
12,121
40,209
38,906
1,303
409
26
383
0
0
0
0
0
0
0
0
0
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of" adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates refer
to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Borrowing at the discount window under the terms and conditions established for the
Century Date Change Special Liquidity Facility in effect from October 1, 1999 through
April 7, 2000.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit
Federal Reserve
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
On
11/3/00
Extended credit3
Seasonal credit-
Effective date
Previous rate
On
11/3/00
Effective date
Previous rate
On
11/3/00
Effective date
Previous rate
5/16/00
5/19/00
5/18/00
5/16/00
5/16/00
5/17/00
5.50
6.60
10/5/00
6.55
7.10
10/5/00
7.05
5.50
6.60
10/5/00
6.55
7.10
10/5/00
7.05
6.00
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . . .
1
5/17/00
5/18/00
5/18/00
5/17/00
5/17/00
5/16/00
6.00
Range of rates for adjustment credit in recent years4
Range (or
level)—All
F.R. Banks
In effect Dec. 31, 1977
1978—Jan.
9
20
May II
12
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
July
1979—July 20
Aug. 17
20
Sept. 19
21
Oct.
8
10
6
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
10
10-10.5
10.5
10.5-11
11
11-12
12
6
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10.5
10.5
11
11
12
12
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
13
12
11
11
10
10
11
12
13
13
1981—May
13-14
14
13-14
13
12
14
14
13
13
12
5
8
Nov. 2
6
Dec. 4
1982—July 20
23
Aug. 2
3
16
27
30
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
Range (or
evel)—All
F.R. Banks
F.R. Bank
of
N.Y.
1982-- O c t . 17
13
Nov. 77
76
Dec. 14
15
17
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
9.5
9.5
9
9
9
8.5
8.5
9
n
Nov. 71
76
Dec. a 4
8.5-9
9
8.5-9
8.5
9
9
8.5
8.5
1985-—May 70
74
7.5-8
7.5
7.5
7.5
7
10
Apr. 71
73
Julv 1 1
Aug. 7 1
77
7-7.5
7
6.5-7
6.5
6
5.5-6
5.5
7
7
6.5
6.5
6
5.5
5.5
1987-—Sept.
—Sept. 4
11
5.5-6
6
6
6
1988--Aug. 9
1 1
6-6.5
6.5
6.5
6.5
1989--Feb. 74
77
6.5-7
7
7
7
F.R. Bank
of
N.Y.
11.5
11.5
11
11
10.5
10
10
F.R. Bank
of
N.Y.
3-3.5
3.5
3.5^t
4
4-4.75
4.75
3.5
3.5
4
4
4.75
4.75
1
9
4.75-5.25
5.25
5.25
5.25
1996—Jan. 31
Feb. 5
5.00-5.25
5.00
5.00
5.00
1998—Oct. 15
16
Nov. 17
19
4.75-5.00
4.75
4.50-4.75
4.50
4.75
4.75
4.50
4.50
1999—Aug. 24
26
Nov. 16
18
4.50—4.75
4.75
4.75-5.00
5.00
4.75
4.75
4.75
5.00
2000—Feb.
5.00-5.25
5.25
5.25-5.50
5.50
5.50-6.00
6.00
5.25
5.25
5.50
5.50
5.50
6.00
6.00
6.00
1994—May 17
18
Aug. 16
18
Nov. 15
17
1995—Feb.
1984-—Apr.
—Apr.
1986—Mar.
2
4
Mar. 21
23
May 16
19
In effect Nov. 3, 2000
1990—Dec. 19
1991--Feb.
Apr.
May
Sept.
Nov.
Dec.
1992--July
-July
6.5
6.5
1
4
30
7
13
1 /
6
7
70
74
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
7
7
3-3.5
3
1. Available on a short-term basis to help depository institutions meet temporary needs for
funds that cannot be met through reasonable alternative sources. The highest rate established
for loans to depository institutions may be charged on adjustment credit loans of unusual size
that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period; however, it is never less than
the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit may
be provided when exceptional circumstances (including sustained deposit drains, impaired
access to money market funds, or sudden deterioration in loan repayment performance) or
practices involve only a particular institution, or to meet the needs of institutions experiencing
difficulties adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion
Range (or
level)—All
F.R. Banks
Effective date
3
3
of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rate somewhat above rates charged on market sources of funds is charged. The rate
ordinarily is reestablished on the first business day of each two-week reserve maintenance
period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4. For earlier data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941, and 194J-1970; and the Annual Statistical Digest, 19701979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit
borrowings by institutions with deposits of $500 million or more that had borrowed in
successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was
in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed
on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to
4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981,
and to 2 percent effective Oct. 12, 1981. As of Oct. 1. 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period. The
surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • December 2000
1.15
R E S E R V E REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Type of deposit
Net transaction
accounts'
$0 million-$42.8 million 3 .
More than $42.8 million 4 .
12/28/00
12/28/00
3
Nonpersonal time deposits^
12/27/90
4
Eurocurrency liabilities 6 . . .
12/27/90
1
2
1. Required reserves must be held in the form of deposits with Federal Reserve Banks
or vault cash. Nonmember institutions may maintain reserve balances with a Federal
Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For
previous reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions
include commercial banks, savings banks, savings and loan associations, credit unions,
agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than six
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 28, 2000, for depository institutions that report weekly, and with the period
beginning January 18. 2001, for institutions that report quarterly, the amount was decreased
from $44.3 million to $42.8 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the
succeeding calendar year by 80 percent of the percentage increase in the total reservable
liabilities of all depository institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 28, 2000, for depository institutions that report
weekly, and with the period beginning January 18, 2001, for institutions that report quarterly,
the exemption was raised from $5.0 million to $5.5 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 l /i years was reduced from 3 percent to 1 l /i percent for
the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on
nonpersonal time deposits with an original maturity of less than 1 1 /2 years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1 x/2
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 x /l years (see note 5).
Policy Instruments
A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
2000
Type of transaction
and maturity
1997
1999
1998
Feb.
Mar.
Apr.
May
June
July
Aug.
U.S. TREASURY SECURITIES 2
1
2
3
4
5
6
7
X
9
10
11
N
N
14
15
16
17
18
19
20
21
22
23
24
25
Outright transactions (excluding
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
matched
Matched transactions
26 Gross purchases
27 Gross sales
Repurchase agreements
28 Gross purchases
29 Gross sales
30 Net change in U.S. Treasury securities
9,147
0
435,907
435,907
0
3,550
0
450,835
450,835
2,000
0
0
464,218
464,218
0
0
0
38,607
38,607
0
0
0
48,459
48,459
198
2,294
0
37.141
37,141
779
0
0
36,386
36,386
2,297
0
0
44,008
44,008
4,188
1,825
0
33,718
33,718
4,902
531
0
42,797
42,797
3,438
5,549
0
41,716
-27,499
1,996
6,297
0
46.062
-49,434
2,676
11,895
0
50,590
-53,315
1,429
0
0
6,877
-6,688
0
0
0
5,034
-3,515
0
0
0
0
0
568
164
0
13,063
-12,633
0
1,875
0
4.672
-3,109
0
1,284
0
5,152
-3,333
367
2,770
0
7,040
-7,396
887
20,080
0
-37,987
20,274
12,901
0
-37,777
37,154
19,731
0
-44,032
42,604
0
0
-5,210
4,348
740
0
-5,034
3,515
1,723
0
0
0
890
0
-10,334
10,063
706
0
-4,672
3,109
2,259
0
-5,152
3.333
2,508
0
-3,439
5,418
3,449
0
-1,954
5,215
2,294
0
-5,908
7,439
4,303
0
-5,841
7,583
0
0
-949
1,170
489
0
0
0
930
0
0
0
0
0
-1,552
2,570
0
0
0
0
0
0
0
0
1,956
0
-3,601
1,254
5,897
0
-1,775
2,360
4,884
0
-2,377
4,842
9,428
0
-717
3,139
0
0
-717
1,170
330
0
0
0
0
0
0
0
528
0
-1.177
0
1.151
0
0
0
500
0
0
0
727
0
0
724
44,122
0
1,996
29,926
0
4,676
45,357
0
1,429
0
0
0
1,559
0
198
4,947
0
1,347
1.582
0
2,297
3.732
0
4,188
5.868
0
5,269
8,492
0
4,325
3,591,210
3,593,530
4,430,457
4,434,358
4,413,430
4,431,685
340,127
339,585
401,404
401,841
336,103 r
334,75 l r
357,355
356,640
368,396
369,739
344,935
344,384
381,349
381,475
810,485
809,268
512,671
514,186
281,599
301,273
0
0
0
0
0
0
0
0
0
0
0
0
0
0
41,022
19,835
5,999
542
923
4,952
-1
-1,800
1,150
4,041
0
0
1,540
0
25
322
0
0
157
0
0
25
0
0
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
160,409
159,369
284,316
276,266
360,069
370,772
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-500
7,703
-10,859
-25
0
-10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
304,989
164,349
82,998
81,335
61,230
62,253
79,585
78,425
107,375
105,885
70,850
70,315
66,485
75,925
47,265
46,230
FEDERAL AGENCY OBLIGATIONS
Outright transactions
31 Gross purchases
3? Gross sales
33 Redemptions
Repurchase agreements
34 Gross purchases
35 Gross sales
36 Net change in federal agency obligations
Reverse repurchase
37 Gross purchases
38 Gross sales
agreements
Repurchase agreements
39 Gross purchases
40 Gross sales
41 Net change in triparty obligations
42 Total net change in System Open Market Account. ..
0
0
140,640
1,663
-1,023
1,160
1,490
535
-9,440
1,035
40,522
27,538
135,780
2,180
-100
6,102
1,489
-1,265
-8,290
5,076
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.
A10
1.18
DomesticNonfinancialStatistics • December 2000
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements'
Millions of dollars
Account
Aug. 30
Sept. 6
Wednesday
End of month
2000
2000
Sept. 13
Sept. 20
Sept. 27
July 31
Aug. 31
Sept. 30
Consolidated condition statement
ASSETS
11.046
4.200
729
11,046
4,200
735
11,046
3,200
765
11,046
3,200
790
11,046
4,200
754
11,046
4,200
760
11,046
3,200
831
633
395
1,300
414
628
597
372
16.680
11,840
19,885
12,170
17,490
140
130
130
130
140
140
130
10 Total U.S. T r e a s u r y securities 3
512,447
510,829
510,434
512,472
506,103
510,182
511,413
11 Bought outright 4
12
Bills
13
Notes
14
Bonds
15 Held under repurchase agreements
512,447
188,995
232,772
90,679
510.829
186,477
233,651
90,700
510,434
184,032
235,256
91,147
512,472
185,416
235,724
91,332
506,103
190,265
228,503
87,335
510,182
187,232
232,770
90,180
511,413
184,356
235,725
91,332
16 Total loans a n d securities
529,899
523,193
531,750
525,186
524,361
529,444
529,235
17 Items in process of collection
18 Bank premises
11,517
1,419
9,980
1,420
7,863
1,422
7,072
1,425
3,414
1,418
5,391
1,421
5,424
1,430
Other assets
19 Denominated in foreign currencies 5
20 All other 6
15,092
17.275
15,097
17,704
15,102
18,175
15,777
18,626
15,092
18,600
15,088
16,755
15,642
18,817
591,178
583,375
589,323
583,123
578,886
584,103
585,625
544.342
542,030
539,974
539,886
539,396
541,806
538,816
21,932
18,480
27,012
21,276
22,006
21,855
26,399
17.250
4,359
75
247
12,871
5,348
74
19,341
7,413
66
192
13,027
7,986
75
189
16,309
5,392
76
228
15,601
5,961
79
214
17,624
8,459
139
177
9.976
4,427
7,916
4,369
7,334
4,328
6,927
4,338
2,154
4,839
5,263
4,585
5,168
4,447
580,677
572,794
578,648
572,427
568,394
573,508
574,830
6,874
2,679
948
6,920
2,679
982
6,935
2,679
1,060
6,949
2,679
1,067
6,881
2,615
995
6,856
2,679
1,060
6,933
2,679
1,184
591,178
583,375
589,323
583,123
578,886
584,103
585,625
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
0
0
Triparty Obligations
7 Repurchase agreements—triparty"
Federal agency
obligations3
8 Bought outright
9 Held under repurchase agreements
0
0
21 Total assets
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
LIABILITIES
22 Federal Reserve notes
0
0
0
0
0
0
0
23 Reverse repurchase agreements—triparty"
24 Total deposits
25
26
27
28
29
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
Deferred credit items
30 Other liabilities and accrued dividends 7
31 Total liabilities
CAPITAL ACCOUNTS
32
33 Capital
Surplus paid in
34 Other capital accounts
35 Total liabilities a n d capital accounts
MEMO
36 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
37 Federal Reserve notes outstanding (issued to Banks)
38
LESS: Held by Federal Reserve Banks
Federal Reserve notes, net
39
40
41
4?
43
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
44 Total collateral
767,1 17
225,757
541,360
766,252
221,910
544,342
765,862
223.832
542,030
765,300
225,326
539,974
765,043
225,157
539,886
769,994
230,598
539,396
766,982
225,175
541,806
764,756
225,940
538,816
11,046
4.200
944
525,170
11,046
4,200
0
529,097
11,046
4,200
3,985
522,799
11.046
3,200
0
525.728
11,046
3,200
869
524,772
11,046
4,200
417
523,733
11.046
4,200
0
526,560
11,046
3,200
0
524,570
541,360
544,342
542,030
539,974
539,886
539,396
541,806
538,816
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. Cash value of agreements arranged through third-party custodial banks.
3. Face value of the securities.
4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.
5. Valued monthly at market exchange rates.
6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
7. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Type of holding and maturity
1 Total loans
1
2 Within fifteen days
3. Sixteen days to ninety days
4. 91 days to 1 year
5 Total U.S. Treasury securities 2
6
7
8
9
10
11
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
12 Total federal agency obligations
13
14
15
16
17
18
Within fifteen days 1
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
End of month
2000
2000
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
July 31
Aug. 31
Sept. 30
606
633
395
1,300
415
577
597
372
538
68
0
234
398
0
82
313
0
1,255
46
0
365
49
0
371
206
0
398
200
0
221
151
0
513,095
512,447
510,829
510,434
512,472
506,103
510,182
511,413
17,840
111,192
129,090
131,290
53,071
70,613
15,459
111,753
131,447
129,601
53,074
71,112
18,333
110,937
126,872
130,499
53,075
71,113
17,138
109,017
128,256
131,337
53,525
71,162
19,796
107,557
128,442
131,987
53,527
71,162
13,568
108,730
136,104
125,108
53,440
69,153
4,891
111,192
140,813
129,601
53,072
70,613
8,978
116,776
128,981
131,987
53,527
71,162
140
140
130
130
130
140
140
130
0
0
0
10
120
0
10
0
0
10
120
0
0
0
0
30
100
0
0
0
0
30
100
0
0
0
0
30
100
0
0
10
0
10
120
0
0
10
0
10
120
0
0
0
0
30
100
0
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.
Wednesday
2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
A12
1.20
DomesticNonfinancialStatistics • December 2000
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
2000
Item
1996
Dec.
1997
Dec.
1998
Dec.
1999
Dec.
Feb.
Mar.
Apr.
May
June
July
Aug. r
Sept.
41.36
41.00
41.00
40.41
574.29
39.96
39.48
39.48
38.89
575.63
40.26
39.69
39.69
39.19
577.41
39.94
39.37
39.37
38.93
577.58
39.87
39.39
39.39
38.75
578.96
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS-
1
2
3
4
5
Total reserves 3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit'
Required reserves
Monetary base 6
50.17
50.02
50.02
48.76
451.62
46.87
46.54
46.54
45.18
479.17
45.19
45.07
45.07
43.68
512.75
41.74
41.42
41.42
40.44
591.18
41.64
41.53
41.53
40.53
573.59
40.46
40.28
40.28
39.26
571.44
40.93
40.63
40.63
39.78
573.08
Not seasonally adjusted
6
7
8
9
10
Total reserves 7
Nonborrowed reserves
Nonborrowed reserves plus extended credit'
Required reserves 8
Monetary base 9
51.45
51.30
51.30
50.04
456.63
48.01
47.69
47.69
46.33
484.98
45.31
45.19
45.19
43.80
518.27
41.89
41.57
41.57
40.58
600.63
42.10
42.00
42.00
40.99
571.86
39.76
39.59
39.59
38.56
570.24
40.61
40.31
40.31
39.47
571.51
41.58
41.22
41.22
40.64
573.26
39.24
38.76
38.76
38.18
574.55
39.70
39.13
39.13
38.63
577.18
39.52
38.94
38.94
38.50
576.48
39.30
38.82
38.82
38.18
576.49
51.17
51.02
51.02
49.76
463.40
1.42
.16
47.92
47.60
47.60
46.24
491.79
1.69
.32
45.21
45.09
45.09
43.70
525.06
1.51
.12
41.66
41.33
41.33
40.35
607.94
1.31
.32
42.10
41.99
41.99
40.99
579.21
1.11
.11
39.75
39.57
39.57
38.55
577.13
1.21
.18
40.59
40.29
40.29
39.45
578.33
1.15
.30
41.56
41.20
41.20
40.62
580.09
.94
.36
39.22
38.74
38.74
38.15
581.44
1.06
.48
39.67
39.10
39.10
38.60
583.98
1.07
.57
39.49
38.91
38.91
38.47
583.22
1.01
.58
39.26
38.78
38.78
38.14
583.18
1.12
.48
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1 0
11
12
13
14
15
16
17
Total reserves' 1
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 12
Excess reserves 13
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (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 changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK AND DEBT MEASURES1
Billions of dollars, averages of daily figures
2000
Item
1996
Dec.
1997
Dec.
1998
Dec.
1999
Dec.
June
July r
Aug. r
Sept.
Seasonally adjusted
1
2
3
4
Measures"
Ml
M2
M3
Debt
5
6
7
8
MI components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6
1,081.1
3,821.6
4,952.4
14,430.8
1,073.9
4,040.2
5,403.2
15,223.1
1,097.4
4,395.0
5,996.7
16,276.4
1,122.9
4,656.2
6,487,4 r
17,377.2
1,103.4
4,783.8
6,749.7'
17,877.2r
1,104.4
4,797.9
6,798.3
17,952.5
1,101.0
4,826.9
6,853.3
18,032.6
1,094.9
4,860.9
6,899.1
n.a.
394.3
8.3
402.3
276.1
424.8
8.1
395.3
245.8
459.5
8.2
379.3
250.3
515.5
8.3
355.2
244.0
520.8
8.8
331.9
241.8 r
522.3
9.3
332.8
240.0
523.0
9.2
328.1
240.7
523.9
8.8
323.8
238.3
2,740.5
1,130.8
2,966.3
1,363.0
3,297.6
1,601.7
3,533.3
l,831.2 r
3,680.4
l,965.9 r
3,693.5
2,000.4
3,725.9
2,026.4
3,766.0
2,038.2
Commercial banks
11 Savings deposits, including MMDAs
12 Small time deposits 9
13 Large time deposits 10 ' "
904.0
593.3
413.9
1,020.5
625.4
488.3
1,184.8
626.1
539.3
1,285.7
634.7
614.1
1,330.7
675.3
656.0
1,341.9
679.9
661.3
1.358.1
685.1
671.5
1,383.3
687.2
660.1
Thrift institutions
14 Savings deposits, including MMDAs
15 Small time deposits®
16 Large time deposits 10
366.6
353.6
78.3
376.6
342.8
85.6
413.8
325.6
88.9
448.7
320.6
91.5
452.5
329.8
95.5
452.3
333.1
97.6
454.8
337.6
99.8
456.1
340.3
100.7
Money market mutual funds
17 Retail
18 Institution-only
523.0
313.3
601.1
382.4
747.4
520.1
843.7
610.1
892.2
660.2
886.3
688.7
890.3
704.9
899.0
724.1
Repurchase agreements and eurodollars
19 Repurchase agreements 1 "
20 Eurodollars 12
210.7
114.6
256.0
150.7
300.8
152.6
344.2
171.3""
366.7
187.6r
368.5
184.4
363.3
186.9
362.9
190.3
3,781.3
10,649.5
3,800.6
11,422.5
3,751.2
12,525.2
3,660.2
13,717.0r
3,521.2
14,355.9r
3,510.2
14,442.3
3,488.9
14,543.8
n.a.
n.a.
Nontransaction
9 In M2 7
10 In M3 only 8
components
Debt components
21 Federal debt
22 Nonfederal debt
Not seasonally adjusted
23
24
25
26
Measures"
Ml
M2
M3
Debt
27
28
29
30
MI components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6
1,105.1
3,843.8
4,973.4
14,428.4
1,097.7
4,063.4
5,427.2
15,218.5
1,121.3
4,420.2
6,026.3
16,271.3r
1,147.4
4,684.5
6,522.3 r
17,372.6
1,101.0
4,764.3 r
6,726.2 r
17,810.9r
1,103.2
4,782.2
6,758.2
17,880.6
1,094.8
4,813.6
6,825.3
17,969.8
1,087.5
4,846.8
6,867.2
n.a.
397.9
8.6
419.9
278.8
428.9
8.3
412.4
248.2
464.1
8.4
395.9
252.8
521.2
8.4
371.2
246.7
520.3
8.7
330.0
242.1
522.4
8.9
333.6
238.3
521.7
8.9
326.1
238.1
522.4
8.7
320.7
235.8
2,738.7
1.129.6
2,965.7
1,363.8
3,298.9
1,606.1
3,537.0
l,837.9 r
3,663.3
l,961.9 r
3,678.9
1,976.0
3,718.9
2,011.6
3,759.3
2,020.4
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits 9
35 Large time deposits 10 ' 11
903.3
592.7
413.2
1,020.4
625.3
487.2
1,186.0
626.5
537.8
1,288.5
635.5
612.2
1,331.6
671.1
657.6
1,343.7
677.6
662.0
1,355.7
683.1
669.6
1,380.3
686.6
663.1
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits 9
38 Large time deposits 10
366.3
353.2
78.1
376.5
342.8
85.4
414.2
325.8
88.6
449.7
321.0
91.2
452.8
327.7
95.7
452.9
332.0
97.7
454.1
336.6
99.5
455.1
340.0
101.2
Money market mutual funds
39 Retail
40 Institution-only
523.0
316.9
600.7
388.4
746.3
529.7
842.4
621.7
880.1
652.9
872.6
668.5
889.3
693.6
897.3
705.6
Repurchase agreements and eurodollars
41 Repurchase agreements
42 Eurodollars 12
205.7
115.7
250.5
152.3
295.4
154.5
339.4
173.4r
367.9
187.9r
365.7
182.2
363.0
185.9
361.8
188.7
3,787.9
10,640.4
3,805.8
11,412.7
3,754.9
12,516.3
3,663.1
13,709.5
3,475.5
14,335.4r
3,448.3
14,432.3
3,437.7
14,532.1
Nontransaction
31 In M2 7
32 In M3 only 8
components
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
n.a.
n.a.
A14
DomesticNonfinancialStatistics • December 2000
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
M l : (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted M1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enter-
prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A15
Assets and Liabilities1
A. All commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Sept.
2000
2000
1999
Account
Mar.
Apr.
May
June
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)
7
4,616.3
1,244.7
817.7
426.9
3,371.6
976.4
1,404.6
100.2
1,304.4
482.1
118.4
390.1
213.5
265.8
359.1
4,889.5
1,280.7
815.7
465.0
3,608.8
1,027.9
1,539.0
109.1
1,429.9
503.3
143.3
395.3
223.6
272.1
366.1
4,934.8
1,291.5
814.3
477.2
3,643.3
1,037.5
1.556.0
112.6
1,443.4
507.3
144.0
398.5
221.8
281.3
368.4
5,000.2
1,309.0
815.5
493.6
3,691.2
1,057.6
1,579.0
115.1
1,463.9
510.4
145.0
399.3
227.0
274.3
377.9
5,031.2
1,306.4
817.1
489.3
3,724.8
1,066.0
1,594.1
115.7
1,478.4
517.2
149.7
397.9
227.7
269.1
380.1
5,067.6
1,311.0
819.2
491.9
3,756.6
1,072.1
1,608.8
117.0
1,491.8
520.8
151.8
403.1
241.0
269.3
399.1
5,111.6
1,314.9
812.5
502.4
3,796.7
1,081.2
1,617.7
118.3
1,499.5
530.0
159.7
408.2
246.3
269.6
400.2
5,162.1
1,325.8
807.3
518.5
3,836.3
1,082.2
1,628.8
119.9
1,508.9
533.7
183.4
408.2
238.3
267.7
399.6
5,155.6
1,331.2
812.0
519.2
3,824.4
1,083.9
1,626.7
118.2
1,508.5
533.1
170.2
410.5
233.4
278.6
396.0
5,160.6
1,333.8
811.3
522.4
3,826.9
1,077.7
1,632.6
120.0
1,512.6
531.4
180.9
404.3
230.7
262.7
401.6
5,178.8
1,323.1
804.0
519.2
3,855.6
1,084.9
1,631.8
120.5
1,511.3
536.1
193.0
409.8
247.3
278.5
398.9
5,161.1
1,320.6
805.5
515.1
3,840.5
1,083.4
1,625.2
120.2
1,505.0
534.9
188.6
408.4
241.8
254.4
396.6
5,395.7
5,691.8
5,746.4
5,819.2
5,847.6
5,9153
5,965.0
6,004.6
6,000.2
5,9925
6,040.2
5,991.0
3,413.7
634.7
2,779.0
740.4
2,038.6
1,045.2
335.8
709.4
220.0
283.3
3,575.7
626.3
2,949.4
851.3
2,098.1
1,157.6
377.5
780.2
233.7
293.8
3,626.2
626.1
3,000.1
872.1
2,127.9
1,186.8
377.4
809.4
226.2
294.2
3,631.6
629.7
3,001.9
877.8
2,124.1
1,200.7
383.8
816.9
253.6
316.6
3,660.1
617.3
3,042.7
894.6
2,148.1
1,202.1
375.8
826.3
262.6
308.5
3,717.1
612.8
3,104.4
915.2
2,189.1
1,220.1
386.6
833.5
261.7
301.2
3,744.6
618.7
3,125.8
925.0
2,200.8
1,226.1
386.0
840.1
269.7
317.3
3,762.2
611.1
3,151.1
914.7
2,236.5
1,220.3
372.5
847.8
269.0
337.1
3,781.9
610.1
3,171.7
918.5
2,253.3
1,212.7
376.9
835.8
282.6
331.0
3,757.6
599.6
3,158.0
917.3
2,240.6
1,225.9
378.3
847.7
261.4
341.0
3,762.0
621.8
3,140.2
912.6
2,227.6
1,237.9
368.0
869.9
270.2
341.2
3,746.1
619.2
3,126.9
913.1
2,213.8
1,210.8
368.9
841.8
261.1
335.0
4,962.2
5,260.8
5,333.4
5,402.6
5,433.2
5,500.1
5357.7
53885
5,608.2
5386.0
5,611.2
5353.0
433.4
431.0
413.0
416.5
414.4
415.2
407.3
416.1
392.1
406.6
429.0
438.0
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans. .
Other
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
46 Total assets 6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
....
4,603.1
1,238.3
809.3
429.0
3,364.9
972.8
1,405.1
100.8
1,304.3
482.3
n.a.
n.a.
113.1
391.5
208.0
261.6
358.1
4,883.3
1,282.1
822.7
459.4
3,601.2
1,031.8
1,534.2
108.0
1,426.1
501.7
n.a.
n.a.
142.3
391.1
229.0
263.7
369.4
4,935.1
1,293.3
823.0
470.3
3,641.8
1,044.6
1,551.5
111.8
1,439.7
506.2
n.a.
n.a.
144.5
395.0
228.0
278.5
371.9
4,992.0
1,306.6
820.8
485.7
3,685.4
1,060.5
1,576.4
114.7
1,461.7
510.0
n.a.
n.a.
143.5
395.1
226.9
272.1
380.9
5,014.2
1,296.0
816.4
479.6
3,718.2
1,065.4
1,590.7
115.7
1,475.0
515.3
n.a.
n.a.
149.5
397.4
227.4
265.2
381.5
5,036.2
1,293.8
810.7
483.1
3,742.5
1,067.3
1,605.0
117.1
1,487.9
517.3
195.8
321.5
148.9
404.0
237.1
260.1
398.5
5,082.8
1,302.3
803.6
498.7
3,780.5
1,070.9
1,617.8
118.4
1,499.3
528.8
203.8
325.0
154.4
408.6
236.4
257.3
398.4
5,148.2
1,320.5
799.3
521.2
3,827.7
1,078.1
1,629.2
120.7
1,508.5
534.4
207.0
327.4
176.1
409.9
232.1
263.4
398.0
5,131.8
1,325.4
805.6
519.8
3,806.4
1,073.9
1,626.0
118.7
1,507.3
533.1
206.3
326.9
159.7
413.6
234.6
288.8
401.6
5,141.8
1,327.2
803.2
524.0
3,814.6
1,070.8
1,633.8
120.8
1,513.0
532.7
205.8
326.8
172.1
405.2
227.2
259.6
399.9
5,168.1
1,317.1
795.0
522.1
3,851.0
1,083.5
1,631.1
121.4
1,509.8
538.4
210.8
327.6
187.7
410.3
237.1
265.1
391.7
5,151.1
1,316.3
797.0
519.3
3,834.8
1,082.1
1,625.8
121.1
1,504.7
535.7
207.4
328.3
181.2
410.0
229.1
247.2
394.5
5371.4
5,686.0
5,754.0
5,811.7
5,827.8
5,870.1
5,912.1
5.978.4
5,9933
5,965.0
5,998.6
5,959.0
3,399.4
628.1
2,771.3
731.8
2,039.5
1,039.4
333.5
705.9
216.1
282.8
3,579.5
619.2
2,960.3
859.7
2,100.6
1,153.3
377.4
775.9
237.2
294.5
3,644.2
634.7
3,009.4
871.7
2,137.8
1,185.9
378.9
806.9
215.5
293.0
3,617.0
620.4
2,996.6
874.0
2,122.6
1,210.2
384.4
825.7
254.2
315.1
3,648.2
616.3
3,031.9
883.8
2,148.1
1,205.0
376.7
828.4
253.0
306.7
3,692.6
606.3
3,086.3
898.6
2,187.7
1,206.9
383.5
823.4
253.3
298.7
3,712.4
603.1
3,109.3
908.1
2,201.2
1,198.6
381.6
817.0
267.0
316.8
3,746.2
604.8
3,141.4
903.8
2,237.6
1.215.6
372.0
843.6
263.9
336.4
3,792.6
622.3
3.170.3
904.3
2,266.0
1,184.6
371.4
813.2
265.5
330.5
3,751.5
600.2
3,151.4
904.9
2,246.5
1,201.0
372.5
828.5
251.2
340.5
3,725.1
600.6
3,124.4
902.1
2,222.4
1,254.7
374.3
880.4
266.0
340.1
3,710.6
602.7
3.107.9
904.6
2,203.3
1,226.6
372.5
854.2
275.7
334.9
4,937.7
5,264.5
5,338.5
5396.4
5,412.9
5,451.5
5,494.8
5362.1
5373.2
5344.2
5385.8
5347.7
433.7
421.5
415.5
415.3
414.9
418.6
417.3
416.4
420.0
420.8
412.8
411.3
A16
1.26
Domestic Financial Statistics • December 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities'—Continued
B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
Account
1999
Sept.
Wednesday figures
2000
Mar.
Apr.
May
June
2000
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
US. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security-1
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
....
27 Total liabilities
28 Residual (assets less liabilities)7
4,096.9
1,055.3
735.0
320.4
3,041.6
781.6
1,386.8
100.2
1,286.6
482.1
66.4
324.6
188.5
222.5
328.6
4,346.0
1,085.1
737.6
347.4
3,260.9
831.6
1,521.0
109.1
1,411.9
503.3
76.8
328.2
195.0
224.4
326.8
4,365.2
1,087.1
734.7
352.4
3,278.1
838.3
1,537.5
112.6
1,424.9
507.3
66.0
328.9
192.4
233.9
328.3
4,417.1
1,098.5
735.8
362.7
3,318.5
852.6
1,560.3
115.1
1,445.2
510.4
64.0
331.2
195.2
230.3
336.7
4,455.4
1,101.1
738.3
362.8
3,354.3
860.9
1,575.0
115.7
1,459.4
517.2
68.6
332.6
199.1
224.5
336.5
4,491.3
1.105.9
739.5
366.4
3,385.4
868.5
1.589.9
117.0
1.472.9
520.8
70.0
336.2
214.8
224.4
356.2
4,529.6
1,108.7
732.6
376.2
3,420.9
875.4
1,598.9
118.3
1,480.7
530.0
77.4
339.1
222.1
225.2
358.1
4,572.4
1,121.3
729.9
391.4
3,451.1
878.5
1,609.4
119.9
1,489.5
533.7
88.5
340.9
212.6
223.1
358.9
4,565.3
1,119.0
731.0
388.0
3,446.3
878.3
1,607.6
118.2
1,489.5
533.1
85.7
341.6
209.0
233.5
352.2
4,566.9
1,123.5
732.3
391.2
3,443.4
874.6
1,613.2
120.0
1,493.2
531.4
87.4
336.8
201.5
216.8
359.4
4,581.8
1,121.5
729.5
392.1
3,460.3
880.0
1,612.2
120.5
1,491.7
536.1
90.3
341.7
219.6
233.2
358.1
4,576.8
1,120.5
727.8
392.6
3,456.4
880.6
1,605.9
120.2
1,485.7
534.9
92.2
342.7
217.5
211.8
359.2
4,777.8
5,(133.2
5,060.4
5,119.4
5,1553
5,225.2
5,272.7
5,3043
5,297.2
5,284.8
5329.9
532.7
3,098.9
624.4
2.474.4
438.6
2,035.8
873.1
311.6
561.5
152.7
219.3
3,197.7
615.2
2,582.5
487.3
2,095.2
980.5
357.7
622.8
213.4
222.5
3,238.6
615.2
2,623.4
498.5
2,124.9
987.2
356.5
630.6
211.0
218.6
3,249.6
618.5
2,631.1
509.6
2,121.5
996.3
365.9
630.4
232.3
234.5
3,277.6
605.9
2,671.7
524.6
2,147.1
996.8
356.9
640.0
243.1
233.3
3,330.5
601.4
2,729.1
542.5
2,186.6
1,014.4
365.7
648.6
243.9
228.8
3,353.0
607.9
2,745.1
547.0
2.198.1
1,024.1
369.1
654.9
246.2
245.7
3,377.8
601.3
2,776.5
542.9
2,233.6
1,002.8
353.3
649.5
244.8
261.9
3,396.0
600.2
2,795.9
545.2
2,250.6
1,005.4
357.3
648.1
248.1
253.1
3,370.1
590.1
2,780.1
542.3
2,237.7
1,007.9
357.9
649.9
236.9
262.3
3,377.2
611.6
2,765.6
541.0
2,224.6
1,005.4
346.8
658.7
251.6
265.5
3,364.0
610.0
2.754.0
543.2
2,210.8
998.3
352.5
W5.8
241.1
264.1
4,343.9
4,614.1
4,655.4
4,712.7
4,750.8
4,817.6
4,868.9
4,8873
4,902.6
4,877.2
4399.7
4,867.5
433.9
419.2
405.0
406.7
404.5
407.7
403.7
417.1
394.6
407.5
430.2
435.2
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans. .
Other
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
46 Total assets 6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices . . . .
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
4,085.6
1,049.7
728.6
321.1
3,035.9
778.1
1,387.5
100.8
1,286.7
482.3
n.a.
n.a.
61.3
326.6
183.0
219.0
328.1
4,341.2
1,089.5
744.8
344.7
3,251.7
833.8
1,516.0
108.0
1,408.0
501.7
n.a.
n.a.
75.5
324.6
200.5
217.1
328.9
4,371.9
1,092.6
742.6
349.9
3.279.3
847.1
1,533.2
111.8
1,421.5
506.2
n.a.
n.a.
66.6
326.1
198.7
233.2
332.6
4.417.2
1,099.1
740.1
359.0
3,318.1
859.8
1.557.7
114.7
1.443.1
510.0
n.a.
n.a.
62.6
328.0
195.1
229.3
340.4
4,448.1
1,096.6
737.5
359.2
3,351.5
863.5
1,571.8
115.7
1,456.1
515.3
n.a.
n.a.
68.2
332.7
198.7
221.4
340.3
4,470.6
1,095.4
732.0
363.4
3,375.1
866.2
1,586.4
117.1
1,469.3
517.3
195.8
321.5
67.4
337.9
210.9
216.8
357.4
4,510.5
1,101.8
725.3
376.5
3.408.7
867.7
1,599.2
118.4
1,480.7
528.8
203.8
325.0
72.0
341.0
212.2
214.5
357.0
4,559.4
1,115.9
723.9
392.0
3,443.5
874.4
1,610.1
120.7
1,489.4
534.4
207.0
327.4
81.4
343.1
206.4
219.6
358.1
4,548.2
1,115.8
727.1
388.8
3,432.3
870.5
1,607.3
118.7
1,488.6
533.1
206.3
326.9
75.8
345.6
210.3
245.4
357.9
4,552.2
1,118.4
726.5
392.0
3,433.7
868.8
1,614.8
120.8
1,494.0
532.7
205.8
326.8
79.0
338.5
200.9
215.6
358.2
4,571.2
1,114.9
722.4
392.5
3,456.3
878.2
1,611.8
121.4
1,490.4
538.4
210.8
327.6
84.8
343.1
209.4
221.0
352.1
4,562.9
1,113.8
721.2
392.6
3,449.0
877.6
1,606.6
121.1
1,485.5
535.7
207.4
328.3
84.8
344.3
204.9
203.7
357.9
4,756.6
5,028.5
5,077.1
5,122.2
5,148.2
5,1943
5,231.7
5,280.6
5,298.6
5,263.9
5,290.6
5,266.8
3,089.3
617.3
2,472.0
434.8
2,037.2
867.3
309.3
558.0
149.8
219.1
3,195.4
608.3
2,587.0
488.9
2,098.1
976.2
357.7
618.5
216.4
222.9
3,255.6
624.3
2,631.3
496.0
2,135.3
986.2
358.0
628.2
201.9
219.3
3.234.1
609.6
2.624.5
501.3
2,120.1
1.005.8
366.5
639.2
237.0
234.5
3,270.1
605.2
2,664.8
519.2
2,145.7
999.8
357.7
642.0
234.9
233.1
3,314.7
595.0
2,719.6
534.4
2.185.3
1,001.2
362.6
638.5
236.4
228.0
3,332.6
592.2
2,740.4
541.6
2,198.7
996.5
364.7
631.9
243.6
245.7
3,368.0
594.5
2,773.5
538.4
2,235.1
998.1
352.8
645.3
240.4
261.6
3.417.4
612.1
2,805.3
541.8
2,263.6
977.3
351.8
625.5
234.8
252.9
3,373.0
590.2
2,782.8
538.8
2,244.0
982.9
352.2
630.7
229.3
262.0
3,346.2
589.9
2,756.3
536.4
2,219.9
1,022.3
353.1
669.2
247.8
265.3
3,329.8
592.6
2,737.2
536.3
2,200.9
1,014.1
356.1
658.1
251.4
264.0
43255
4,610.8
4,665.9
4,7113
4,737.8
4,780.2
4,818.4
4,868.2
4,882.4
4,8473
4,881.5
4,859.4
431.1
417.8
411.2
410.8
410.4
414.1
413.3
412.4
416.1
416.6
409.1
407.5
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A17
Assets and Liabilities1—Continued
C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
Sept.
2000
2000
1999
Mar.
Apr.
May
June
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Seasonally adjusted
Assets
1 Bank credit
7
Securities in bank credit
3
U.S. government securities
4
Trading account
Investment account
6
Other securities
7
Trading account
8
Investment account
9
State and local government .
10
Other
11
Loans and leases in bank credit2 . . .
12
Commercial and industrial
Bankers acceptances
13
14
Other
15
Real estate
16
Revolving home equity
17
Other
18
Consumer
19
Security 3
Federal funds sold to and
20
repurchase agreements
with broker-dealers
71
Other
22
State and local government
Agricultural
23
24
Federal funds sold to and
repurchase agreements
with others
75
All other loans
76
Lease-financing receivables
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
79
Other
30 Cash assets4
31 Other assets5
32 Total assets 6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2.299.1
544.0
360.7
20.8
339.9
183.3
77.7
105.5
23.5
82.0
1,755.1
537.7
1.1
536.6
699.2
64.7
634.5
217.7
60.4
2,428.5
565.4
358.2
20.5
337.7
207.2
91.1
116.1
24.7
91.4
1,863.2
564.3
1.0
563.3
764.6
69.7
694.9
224.0
70.3
2,443.0
568.2
356.7
21.3
335.4
211.5
92.9
118.6
25.1
93.5
1,874.8
568.7
1.1
567.6
779.2
72.5
706.7
226.9
59.3
2,479.8
578.6
358.5
23.5
335.0
220.1
101.2
118.9
25.4
93.5
1,901.2
580.0
1.1
579.0
792.3
74.2
718.1
227.6
57.8
2,496.2
580.1
361.4
22.7
338.7
218.7
100.2
118.5
25.6
92.9
1,916.1
584.2
1.0
583.2
797.8
74.6
723.2
228.8
62.1
2,506.6
577.5
362.1
24.3
337.8
215.4
97.2
118.1
26.1
92.0
1,929.1
585.3
1.0
584.4
805.8
75.5
730.3
230.1
63.2
2,524.9
575.5
357.9
23.7
334.2
217.6
102.5
115.1
25.9
89.2
1,949.3
589.2
.9
588.3
810.6
76.4
734.3
232.8
70.2
2,549.7
583.6
355.9
23.2
332.7
227.7
114.5
113.3
25.8
87.5
1,966.0
590.3
.8
589.5
812.2
74.8
737.3
234.1
81.3
2,548.2
581.9
354.2
22.9
331.3
227.7
114.4
113.4
25.8
87.6
1,966.3
590.3
.9
589.4
816.0
76.4
739.6
233.6
78.2
2,548.0
586.7
357.2
24.3
332.9
229.4
115.6
113.8
25.8
88.0
1,961.4
587.7
.8
586.8
817.2
74.2
743.0
232.5
80.0
2,558.5
585.9
357.1
22.9
334.2
228.9
115.2
113.7
25.8
87.9
1,972.6
592.6
.9
591.8
813.3
74.7
738.7
234.3
83.2
2,550.1
581.4
355.9
23.7
332.1
225.5
112.9
112.6
25.8
86.8
1,968.7
591.4
.8
590.5
805.9
74.3
731.6
235.9
85.2
43.4
17.0
11.6
8.4
48.9
21.4
12.4
9.5
38.2
21.1
12.4
9.5
38.9
18.9
12.4
9.6
43.9
18.2
12.3
9.6
44.6
18.6
12.3
9.5
51.5
18.7
12.4
9.6
61.9
19.3
12.6
9.5
59.0
19.2
12.8
9.6
61.7
18.2
12.5
9.4
63.1
20.1
12.6
9.4
65.8
19.3
12.6
9.4
11.2
94.9
114.1
125.8
14.5
85.6
118.1
133.0
13.6
85.7
119.4
124.9
13.2
87.6
120.7
130.2
13.6
84.7
123.0
132.7
12.9
84.3
125.8
140.0
13.2
84.2
127.1
137.9
12.7
85.4
127.9
127.8
13.4
84.8
127.6
126.2
11.9
82.6
127.6
119.6
12.9
86.3
127.9
133.3
12.5
88.1
127.8
131.8
73.0
52.8
142.3
232.2
64.3
68.7
146.2
220.4
62.1
62.8
154.9
219.7
67.0
63.2
149.4
223.7
68.1
64.6
145.6
225.0
73.8
66.2
143.6
245.5
66.1
71.8
144.3
248.2
56.4
71.4
141.4
249.9
54.3
71.9
147.9
243.7
49.1
70.5
138.3
247.8
61.2
72.1
151.1
251.3
61.2
70.6
131.0
251.8
2,763.9
2,893.6
2,907.8
2.948.4
2,964.9
3,000.8
3,019.9
3,033.4
3,0303
3,018-3
3,058.7
3,0293
1,590.1
325.3
1.264.7
213.1
1,051.6
584.6
168.0
416.7
149.3
161.7
1,611.8
313.1
1,298.7
235.7
1,063.0
640.4
194.0
446.5
208.0
164.0
1,634.8
311.8
1,322.9
244.2
1,078.7
649.5
197.7
451.8
205.6
161.3
1,640.5
315.6
1,324.9
251.8
1,073.1
650.9
202.9
448.1
226.3
174.0
1,634.0
308.3
1,325.7
258.5
1,067.1
655.8
196.7
459.0
233.9
175.7
1,634.4
301.8
1,332.6
266.4
1,066.1
678.2
204.9
473.3
221.5
179.7
1,629.8
304.3
1,325.5
265.2
1,060.3
688.4
207.2
481.2
222.5
195.8
1,629.3
300.4
1,328.9
257.1
1,071.8
672.4
193.8
478.6
224.4
209.8
1,651.3
302.3
1,349.0
260.7
1,088.2
670.8
197.2
473.7
228.7
202.1
1,627.5
294.4
1,333.1
256.2
1,076.9
675.9
198.1
477.8
216.2
210.4
1,627.8
308.4
1,319.4
255.6
1,063.8
676.2
187.2
489.0
231.4
213.2
1,612.8
301.2
1,311.7
256.5
1,055.2
670.6
192.7
477.9
220.0
211.8
2,485.6
2,624.2
2,651.2
2,691.7
2,699.4
2,713.9
2,736.5
2,735.9
2,752.8
2,730.0
2,748.6
2,7153
278.3
269.3
256.6
256.6
265.5
286.9
283.4
297.5
277.5
288.3
310.1
314.0
A18
1.26
DomesticNonfinancialStatistics • December 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities1—Continued
C. Large domestically chartered commercial banks—Continued
Billions of dollars
Monthly averages
Account
1999
Sept.
Wednesday figures
2000
Mar.
Apr.
May
June
2000
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities . .
51
Other
52
One year or less
53
One to five years
54
More than five years . . .
55
Other securities
56
Trading account
57
Investment account
58
State and local government . .
59
Other
Loans and leases in bank credit2 . .
60
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Credit cards and related plans. .
Other
70
71
Security 3
72
Federal funds sold to and
repurchase agreements
with broker-dealers . . . .
Other
73
74
State and local government . . . .
75
Agricultural
76
Federal funds sold to and
repurchase agreements
with others
All other loans
77
78
Lease-financing receivables . . . .
79 Interbank loans
80
Federal funds sold to and
repurchase agreements
with commercial banks
Other
81
82 Cash assets 4
83 Other assets5
84 Total assets 6
85
86
87
88
89
90
91
92
93
94
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices . . .
Other liabilities
95 Total liabilities
96 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2,284.0
539.4
355.2
20.2
335.0
219.7
115.3
22.3
55.6
37.3
184.2
77.7
106.5
23.4
83.1
1,744.7
535.5
1.1
534.4
697.3
65.1
381.8
250.4
216.8
n.a.
n.a.
55.3
2,429.9
568.7
364.0
21.4
342.6
223.0
119.6
29.1
52.9
37.6
204.6
91.1
113.6
24.8
88.8
1,861.2
566.5
1.0
565.5
762.8
68.9
420.9
273.1
224.2
n.a.
n.a.
69.0
2,446.3
569.3
361.4
21.5
339.8
221.5
118.4
29.0
51.8
37.6
207.9
92.9
115.0
25.1
89.8
1.877.0
575.3
1.1
574.3
776.3
71.8
427.2
277.3
226.8
n.a.
n.a.
59.8
2.473.1
575.4
359.5
22.0
337.5
218.8
118.7
30.7
51.9
36.1
215.9
101.2
114.7
25.3
89.3
1,897.7
584.5
1.1
583.4
789.5
73.9
435.6
280.0
227.1
n.a.
n.a.
56.4
2,483.5
573.7
358.3
22.5
335.9
217.4
118.4
30.5
52.7
35.2
215.4
100.2
115.2
25.5
89.7
1,909.8
584.8
1.0
583.8
793.6
74.7
438.3
280.5
227.3
n.a.
n.a.
61.7
2,485.1
567.9
354.9
22.6
332.3
211.9
120.4
30.5
53.6
36.4
213.1
97.2
115.8
25.6
90.3
1,917.1
583.0
1.0
582.0
801.2
75.7
445.1
280.3
227.6
72.3
155.4
60.5
2,502.4
569.0
351.3
23.0
328.3
207.4
120.9
31.5
52.6
36.8
217.8
102.5
115.2
25.6
89.7
1,933.3
583.5
.9
582.6
808.1
76.7
448.9
282.5
230.9
73.4
157.5
64.8
2,532.4
579.7
350.9
22.5
328.4
207.7
120.7
32.3
52.1
36.3
228.8
114.5
114.3
25.7
88.6
1,952.7
587.9
.8
587.1
809.8
75.2
451.8
282.8
233.1
74.5
158.6
74.1
2,530.2
580.7
351.9
23.5
328.4
208.2
120.2
32.3
52.1
35.8
228.8
114.4
114.5
25.6
88.9
1,949.4
585.2
.9
584.3
813.8
76.7
454.6
282.5
232.4
73.8
158.6
68.3
2,528.8
582.6
352.1
24.1
328.0
207.5
120.5
32.7
52.1
35.7
230.5
115.6
114.9
25.6
89.2
1,946.2
584.1
.8
583.3
815.6
74.7
458.0
282.9
231.6
73.6
158.1
71.6
2,540.3
579.8
350.0
22.0
328.0
206.4
121.6
32.9
52.3
36.4
229.8
115.2
114.6
25.6
89.0
1,960.5
591.8
.9
591.0
809.6
75.0
451.9
282.7
233.7
75.0
158.7
77.6
2,530.0
575.9
349.7
21.5
328.1
207.4
120.7
31.5
52.2
37.0
226.2
112.9
113.4
25.7
87.7
1,954.0
589.5
.8
588.7
802.6
74.5
445.0
283.1
234.9
75.7
159.2
77.8
38.6
16.7
11.8
8.6
47.3
21.7
12.2
9.2
38.2
21.6
12.3
9.3
36.8
19.6
12.3
9.4
42.6
19.1
12.2
9.6
41.8
18.7
12.3
9.7
46.5
18.3
12.6
9.7
55.1
19.0
12.8
9.7
50.0
18.2
13.0
9.8
53.5
18.1
12.7
9.6
57.2
20.5
12.8
9.6
58.8
19.0
12.8
9.6
11.2
95.8
112.5
122.2
14.5
83.1
119.6
135.6
13.6
83.6
120.1
129.7
13.2
84.5
120.7
133.7
13.6
84.3
122.9
135.6
12.9
85.0
125.1
140.1
13.2
84.4
126.1
132.0
12.7
86.3
126.3
124.3
13.4
87.4
126.3
123.4
11.9
83.2
125.9
116.2
12.9
86.6
125.9
129.6
12.5
88.2
126.1
128.0
70.7
51.5
139.1
232.0
66.2
69.4
140.8
222.5
64.7
65.0
154.8
223.0
67.6
66.1
148.6
228.2
68.6
67.0
143.1
228.8
73.2
67.0
137.4
244.9
62.3
69.7
136.3
245.4
54.7
69.7
138.3
249.5
52.3
71.1
154.1
245.5
47.2
68.9
136.9
247.2
59.3
70.3
142.4
249.2
59.6
68.4
125.5
251.9
2,741.7
2,894.4
2,919.4
2,948.9
2,956.4
2,972.6
2,980.6
3,008.9
3,017.2
2,993.3
3,025.9
3,000.1
1,582.2
320.2
1,262.0
209.3
1,052.7
575.3
163.7
411.5
146.4
161.7
1,611.6
308.5
1,303.0
237.4
1,065.6
642.4
197.6
444.8
211.0
164.0
1,644.5
319.0
1,325.5
241.8
1,083.7
652.3
201.6
450.7
199.6
161.3
1,625.7
309.2
1,316.5
246.5
1,070.0
659.0
204.1
454.9
231.0
174.0
1,629.1
307.2
1,322.0
253.1
1,068.9
656.8
195.9
460.9
225.8
175.7
1,623.9
298.1
1,325.8
258.3
1.067.5
662.6
199.5
463.2
214.0
179.7
1,614.1
293.2
1,320.9
259.8
1,061.1
657.7
199.8
457.9
219.9
195.8
1,621.6
295.8
1,325.8
252.6
1,073.2
662.0
189.7
472.3
220.0
209.8
1,659.2
305.6
1,353.6
257.3
1,096.3
644.5
191.4
453.1
215.4
202.1
1,627.8
293.7
1,334.2
252.6
1,081.6
651.6
191.5
460.0
208.6
210.4
1,607.7
295.4
1,312.2
251.0
1,061.3
681.4
187.3
494.1
227.6
213.2
1,592.3
292.8
1,299.5
249.6
1,049.9
671.7
188.8
482.9
230.3
211.8
2,4655
2,628.9
2,657.6
2,689.7
2,687.4
2,6803
2,6875
2,713.4
2,721.2
2,6985
2,729.9
2,706.2
276.2
265.5
261.8
259.2
269.0
292.3
293.1
295.5
296.0
294.7
295.9
293.9
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A19
Assets and Liabilities1—Continued
D. Small domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Sept.
2000
2000
1999
Account
Mar.
Apr.
May
June
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
....
27 Total liabilities
28 Residual (assets less liabilities)7
1,797.9
511.4
374.3
137.1
1,286.5
243.9
687.6
35.5
652.2
264.4
6.0
84.5
62.7
80.3
96.5
1,917.5
519.7
379.5
140.3
1,397.7
267.3
756.5
39.4
717.1
279.4
6.5
88.1
62.0
78.3
106.4
1,922.2
518.9
378.0
140.9
1,403.4
269.6
758.4
40.1
718.2
280.4
6.7
88.2
67.5
79.0
108.7
1,937.3
519.9
377.3
142.6
1,417.4
272.6
767.9
40.8
727.1
282.8
6.2
87.8
65.0
80.9
113.0
1,959.2
521.0
376.9
144.1
1,438.2
276.7
777.2
41.1
736.2
288.4
6.5
89.4
66.4
78.8
111.6
1,984.8
528.4
377.4
151.1
1,456.3
283.2
784.1
41.5
742.6
290.6
6.9
91.5
74.8
80.8
110.6
2,004.7
533.2
374.7
158.5
1,471.5
286.2
788.3
41.9
746.4
297.2
7.2
92.6
84.2
80.9
109.9
2,022.7
537.7
374.0
163.7
1,485.0
288.2
797.3
45.1
752.2
299.6
7.3
92.8
84.9
81.7
109.0
2,017.1
537.1
376.8
160.3
1,480.0
288.0
791.6
41.8
749.8
299.5
7.5
93.3
82.9
85.7
108.5
2,018.8
536.8
375.0
161.7
1,482.1
287.0
796.0
45.8
750.2
298.9
7.4
92.8
84.9
78.6
111.5
2,023.3
535.6
372.4
163.2
1,487.7
287.4
798.8
45.9
753.0
301.8
7.1
92.6
86.3
82.1
106.8
2,026.8
539.1
372.0
167.1
1,487.7
289.3
800.0
45.9
754.1
299.1
7.0
92.3
85.7
80.8
107.4
2,013.9
2,139.6
2,152.6
2,171.1
2,190.4
2,224.5
2,252.8
2,271.0
2,266.8
2,266.5
2,271.2
2,273.4
1,508.8
299.1
1,209.7
225.5
984.2
288.5
143.7
144.8
3.4
57.6
1,585.8
302.0
1,283.8
251.6
1,032.2
340.1
163.8
176.3
5.4
58.5
1,603.9
303.4
1,300.5
254.3
1,046.2
337.6
158.9
178.8
5.3
57.3
1,609.1
302.9
1,306.2
257.8
1,048.4
345.4
163.1
182.4
6.0
60.5
1,643.6
297.5
1,346.1
266.1
1,080.0
341.1
160.1
180.9
9.1
57.6
1,696.1
299.5
1,396.5
276.1
1,120.4
336.1
160.8
175.3
22.4
49.1
1,723.2
303.6
1,419.6
281.8
1,137.8
335.7
161.9
173.7
23.7
49.9
1,748.5
300.9
1,447.5
285.7
1,161.8
330.5
159.6
170.9
20.4
52.1
1,744.8
297.9
1,446.9
284.5
1,162.4
334.6
160.2
174.4
19.4
51.0
1,742.7
295.7
1,447.0
286.1
1,160.8
332.0
159.9
172.1
20.7
51.8
1,749.4
303.2
1,446.2
285.4
1,160.8
329.2
159.5
169.7
20.2
52.3
1,751.2
308.9
1,442.3
286.7
1,155.6
327.6
159.8
167.9
21.1
52.3
1,8583
1,989.8
2,004.2
2,021.0
2,051.4
2,103.7
2,132.5
2,151.4
2,149.8
2,147.2
2,151.1
2,152.2
155.6
149.8
148.4
150.1
139.0
120.8
120.3
119.6
117.1
119.3
120.1
121.2
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans. .
Other
Security3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
46 Total assets 6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
....
1,801.5
510.3
373.4
136.9
1,291.2
242.6
690.2
35.7
654.5
265.5
n.a.
n.a.
6.0
86.8
60.7
79.9
96.1
1,911.3
520.8
380.8
140.0
1,390.5
267.4
753.2
39.2
714.0
277.5
n.a.
n.a.
6.5
85.9
64.9
76.2
106.4
1,925.6
523.3
381.3
142.1
1,402.2
271.8
757.0
40.0
717.0
279.4
n.a.
n.a.
6.7
87.3
69.0
78.4
109.5
1,944.1
523.7
380.6
143.1
1,420.4
275.3
768.2
40.8
727.4
282.9
n.a.
n.a.
6.2
87.8
61.4
80.7
112.1
1,964.6
522.9
379.1
143.8
1,441.7
278.7
778.3
41.0
737.3
288.0
n.a.
n.a
6.5
90.2
63.2
78.2
111.4
1,985.5
527.5
377.2
150.3
1,458.0
283.3
785.2
41.3
743.8
289.6
123.5
166.1
6.9
93.1
70.7
79.4
112.5
2,008.1
532.7
374.0
158.7
1,475.4
284.2
791.0
41.8
749.2
297.9
130.4
167.5
7.2
94.9
80.2
78.2
111.6
2,027.0
536.3
373.1
163.2
1,490.8
286.5
800.4
45.5
754.9
301.3
132.6
168.7
7.3
95.4
82.1
81.3
108.6
2,018.0
535.1
375.2
159.9
1,482.9
285.4
793.5
42.0
751.5
300.7
132.4
168.2
7.5
95.7
86.9
91.4
112.4
2,023.4
535.8
374.3
161.5
1,487.5
284.7
799.2
46.2
753.0
301.0
132.2
168.8
7.4
95.2
84.7
78.8
111.1
2,030.8
535.1
372.4
162.7
1,495.7
286.4
802.2
46.4
755.8
304.7
135.8
168.9
7.1
95.4
79.7
78.7
103.0
2,032.9
537.9
371.5
166.4
1,495.0
288.1
804.0
46.5
757.4
300.8
131.7
169.1
7.0
95.1
76.9
78.2
106.0
2,014.9
2,134.2
2,157.8
2,1733
2,191.8
2,221.7
2^51.1
2,271.7
2,281.4
2,270.6
2,264.7
2,266.7
1,507.2
297.2
1,210.0
225.5
984.5
292.0
145.6
146.5
3.4
57.4
1,583.8
299.8
1,284.0
251.6
1,032.5
333.8
160.1
173.7
5.4
58.9
1,611.1
305.2
1,305.8
254.3
1,051.6
334.0
156.4
177.5
5.3
58.0
1,608.4
300.5
1,307.9
257.8
1,050.1
346.8
162.5
184.3
6.0
60.5
1,640.9
298.1
1,342.9
266.1
1,076.8
342.9
161.8
181.1
9.1
57.4
1,690.8
296.9
1,393.8
276.1
1,117.7
338.5
163.2
175.4
22.4
48.3
1,718.5
299.1
1,419.4
281.8
1,137.6
338.8
164.8
174.0
23.7
49.9
1,746.4
298.7
1,447.7
285.7
1,162.0
336.2
163.1
173.0
20.4
51.8
1,758.2
306.5
1,451.7
284.5
1,167.3
332.8
160.4
172.4
19.4
50.9
1,745.2
296.6
1,448.6
286.1
1,162.5
331.3
160.6
170.7
20.7
51.5
1,738.6
294.5
1,444.0
285.4
1,158.6
340.8
165.8
175.0
20.2
52.0
1,737.5
299.8
1,437.7
286.7
1,151.0
342.4
167.2
175.2
21.1
52.2
1,860.0
1,981.9
2,0083
2,021.6
2,050.4
2,100.0
2,130.9
2,154.8
2,161.2
2,148.7
2,151.6
2,153.2
154,9
152.3
149.4
151.6
141.4
121.7
120.2
116.9
120.2
121.9
113.2
113.6
A20
1.26
DomesticNonfinancialStatistics • December 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities1—Continued
E. Foreign-related institutions
Billions of dollars
Monthly averages
Account
1999
Sept.
Wednesday figures
2000
Mar.
Apr.
May
June
2000
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
13 Total assets 6
14
15
16
17
18
19
20
21
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
22 Total liabilities
23 Residual (assets less liabilities)
7
519.4
189.3
82.8
106.5
330.0
194.8
17.8
52.0
65.5
25.0
43.3
30.5
543.5
195.6
78.1
117.5
347.9
196.3
18.0
66.5
67.1
28.6
47.6
39.2
569.6
204.4
79.6
124.8
365.2
199.2
18.4
77.9
69.7
29.4
47.4
40.0
583.2
210.5
79.7
130.8
372.7
204.9
18.7
81.0
68.0
31.8
43.9
41.1
575.8
205.4
78.9
126.5
370.4
205.1
19.0
81.0
65.2
28.6
44.6
43.5
576.3
205.1
79.7
125.4
371.1
203.5
18.9
81.8
66.9
26.2
44.9
43.0
582.0
206.1
79.9
126.2
375.9
205.8
18.8
82.2
69.0
24.2
44.4
42.1
589.7
204.5
77.4
127.1
385.2
203.7
19.3
94.8
67.3
25.7
44.6
40.6
590.2
212.2
81.0
131.2
378.1
205.6
19.1
84.5
68.9
24.3
45.0
43.8
593.7
210.3
79.1
131.3
383.4
203.0
19.4
93.5
67.5
26.3
45.9
42.2
596.9
201.6
74.5
127.1
395.3
204.9
19.6
102.7
68.1
27.7
45.2
40.7
584.3
200.1
77.6
122.5
384.1
202.7
19.3
96.4
65.7
24.3
42.6
37.4
617.9
658.6
686.0
699.7
692.2
690.0
6923
7003
703.0
707.8
7103
688.2
314.8
10.2
304.6
172.1
24.2
147.9
67.3
64.1
378.0
11.1
366.9
177.1
19.7
157.4
20.3
71.3
387.5
10.9
376.7
199.6
20.9
178.7
15.3
75.6
382.0
11.2
370.8
204.4
17.9
186.5
21.3
82.2
382.4
11.4
371.0
205.3
18.9
186.3
19.5
75.1
386.7
11.4
375.3
205.7
20.8
184.9
17.8
72.4
391.6
10.9
380.7
202.0
16.9
185.1
23.6
71.6
384.5
9.8
374.7
217.4
19.2
198.3
24.1
75.2
385.8
9.9
375.9
207.3
19.6
187.7
34.6
77.9
387.4
9.5
377.9
218.1
20.3
197.7
24.5
78.8
384.8
10.2
374.6
232.4
21.2
211.2
18.6
75.7
382.0
9.1
372.9
212.5
16.4
196.1
20.0
70.9
618-3
646.8
678.1
689.9
682.4
682.5
688.8
7013
705.6
708.7
711.5
685.4
-.4
11.8
8.0
9.8
9.9
7.5
3.5
-1.0
-2.5
-1.0
-1.2
2.8
Not seasonally adjusted
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit 2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
40 Total assets 6
41
42
43
44
45
46
47
48
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
49 Total liabilities
50 Residual (assets less liabilities)7
....
517.5
188.5
80.7
14.9
65.8
107.8
69.2
38.6
329.0
194.7
17.6
51.8
64.9
25.0
42.6
30.0
542.1
192.7
77.9
9.3
68.6
114.7
71.5
43.2
349.4
198.0
18.1
66.8
66.6
28.6
46.6
40.5
563.2
200.7
80.3
11.8
68.6
120.4
76.5
43.9
362.5
197.4
18.3
77.9
68.8
29.4
45.3
39.3
574.7
207.4
80.7
12.3
68.4
126.7
83.0
43.7
367.3
200.7
18.7
80.8
67.1
31.8
42.8
40.6
566.2
199.4
78.9
11.8
67.1
120.5
77.5
42.9
366.8
201.8
18.9
81.3
64.7
28.6
43.9
41.3
565.7
198.3
78.7
11.8
66.8
119.7
76.8
42.9
367.3
201.1
18.7
81.5
66.1
26.2
43.3
41.0
572.3
200.5
78.3
13.7
64.6
122.2
78.7
43.6
371.8
203.1
18.6
82.4
67.7
24.2
42.9
41.4
588.8
204.5
75.3
14.1
61.3
129.2
87.3
41.9
384.3
203.7
19.1
94.7
66.8
25.7
43.8
39.9
583.6
209.5
78.6
14.7
63.8
131.0
87.8
43.2
374.1
203.4
18.7
83.9
68.1
24.3
43.4
43.7
589.6
208.7
76.7
12.8
63.9
132.0
89.2
42.8
380.9
202.0
19.0
93.2
66.7
26.3
44.0
41.7
597.0
202.2
72.6
12.8
59.8
129.6
88.3
41.3
394.8
205.3
19.4
102.9
67.2
27.7
44.1
39.6
588.2
202.4
75.8
16.5
59.3
126.7
85.5
41.2
385.8
204.5
19.2
96.4
65.7
24.3
43.5
36.6
614.9
657.5
676.9
689.5
679.6
675.8
680.4
697.8
694.7
701.1
708.0
692.2
310.1
10.8
299.3
172.1
24.2
147.9
66.3
63.7
384.1
10.9
373.2
177.1
19.7
157.4
20.8
71.7
388.6
10.5
378.1
199.6
20.9
178.7
10.6
73.7
382.9
10.7
372.1
204.4
17.9
186.5
17.1
80.6
378.1
11.1
367.0
205.3
18.9
186.3
18.1
73.6
378.0
11.3
366.7
205.7
20.8
184.9
16.9
70.7
379.8
10.8
368.9
202.0
16.9
185.1
23.4
71.2
378.2
10.3
367.9
217.4
19.2
198.3
23.5
74.8
375.2
10.2
365.0
207.3
19.6
187.7
30.7
77.5
378.5
9.9
368.6
218.1
20.3
197.7
21.9
78.5
378.8
10.7
368.1
232.4
21.2
211.2
18.2
74.8
380.8
10.1
370.7
212.5
16.4
196.1
24.2
70.9
612.2
653.7
672.6
685.0
675.1
671.2
676.4
693.9
690.8
697.0
7043
688.4
2.7
3.8
4.3
4.5
4.5
4.6
4.0
3.9
3.9
4.2
3.7
3.8
Commercial Banking Institutions—Assets and Liabilities A21
1.26
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities1—Continued
E. Foreign-related institutions—Continued
Billions of dollars
Monthly averages
Account
2000
2000
1999
Sept.
Wednesday figures
Mar.
Apr.
May
June
July
Aug.
Sept.
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Not seasonally adjusted
MEMO
51
52
53
54
55
56
57
58
59
60
61
67
63
64
65
66
67
68
Large domestically chartered banks,
adjusted for mergers
Revaluation gains on off-balance-sheet
items 8
Revaluation losses on off-balancesheet items 8
Mortage-backed securities 9
Pass-through
CMO, REMIC, and other
Net unrealized gains (losses) on
available-for-sale securities 10 . . . .
Off-shore credit to U.S. r e s i d e n t s " . . . .
Securitized consumers loans 1 2
Credit cards and related plans
Other
Securitized business loans'"
Small domestically
chartered
commercial banks, adjusted for
mergers
Mortage-backed securities 9
Securitized consumer loans 1 2
Credit cards and related plans
Other
Foreign-related
institutions
Revaluation gains on off-balancesheet items 8
Revaluation losses on off-balancesheet items 8
Securitized business loans' 2
59.9
65.7
65.1
72.4
68.3
63.1
66.5
74.4
75.3
74.9
74.2
72.8
59.7
249.2
170.1
79.1
64.0
253.5
176.5
77.0
65.0
255.2
179.4
75.8
72.9
252.4
177.8
74.6
68.5
249.8
177.6
72.2
62.9
242.0
172.8
69.2
67.3
237.5
169.5
68.0
73.9
237.7
170.1
67.6
73.2
238.3
170.2
68.1
73.9
237.6
169.4
68.2
74.1
236.5
168.6
67.9
72.8
237.1
170.6
66.5
-7.5
27.8
n.a.
n.a.
n.a.
n.a.
-9.6
24.1
n.a.
n.a.
n.a.
n.a.
-16.3
24.4
n.a.
n.a.
n.a.
n.a.
-16.5
23.5
n.a.
n.a.
n.a.
n.a.
-15.0
22.4
n.a.
n.a.
n.a.
n.a.
-10.8
22.2
87.4
72.4
15.0
n.a.
-11.2
22.1
86.7
72.0
14.7
n.a.
-10.2
22.1
85.9
71.8
14.2
n.a.
-10.3
22.1
86.6
72.3
14.3
n.a.
-10.1
21.9
86.7
72.5
14.2
n.a.
-10.4
22.2
86.2
71.9
14.2
n.a.
-10.3
22.3
86.1
71.9
14.2
n.a.
199.6
n.a.
n.a.
n.a.
205.5
n.a.
n.a.
n.a.
206.2
n.a.
n.a.
n.a.
205.7
n.a.
n.a.
n.a.
204.5
n.a.
n.a.
n.a.
204.0
220.2
211.2
9.0
206.8
220.6
211.7
8.8
208.9
221.2
212.6
8.6
209.9
221.4
212.7
8.7
209.5
221.8
213.2
8.6
207.5
220.5
211.9
8.6
208.1
221.1
212.6
8.5
37.8
39.3
41.7
47.1
41.1
38.1
39.9
45.4
44.6
47.6
46.0
45.0
36.9
n.a.
38.3
n.a.
38.6
n.a.
44.5
n.a.
38.0
n.a.
35.7
n.a.
37.7
n.a.
43.0
n.a.
42.5
n.a.
45.9
n.a.
43.6
n.a.
41.3
n.a.
NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A17-19 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
12. Total amount outstanding.
A22
1.32
DomesticNonfinancialStatistics • December 2000
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December
2000
Item
1 All issuers
2
3
Financial companies'
Dealer-placed paper, total 2
Directly placed paper, total 3
1995
1996
1997
1998
1999
Mar.
Apr.
May
June
July
Aug.
674,904
775,371
966,699
1,163,303
1,403,023
1,449,143
1,465,697
1,497,712
1,516,205
1,551,668
1,559,054
275,815
210,829
361,147
229,662
513,307
252,536
614,142
322,030
786,643
337,240
849,198
302,885
860,843
294,328
884,299
302,305
884,578
300,718
900,651
309,076
905,634
303,307
188,260
184,563
200,857
227,132
279,140
297,060
310,526
311,109
330,909
341,941
350,113
4 Nonfinancial companies 4
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
B. Bankers Dollar Acceptances 1
Millions of dollars, not seasonally adjusted, year ending September2
Item
1 Total amount of reporting banks' acceptances in existence
2 Amount of other banks' eligible acceptances held by reporting banks
3 Amount of own eligible acceptances held by reporting banks (included in item 1)
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1)
1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United
States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks;
that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal
Reserve Act (12 U.S.C. §372).
1.33
PRIME RATE CHARGED BY BANKS
1997
1998
1999
2000
25,774
14,363
10,094
9,881
736
6,862
523
4,884
461
4,261
462
3,789
10,467
5,413
3,498
3,689
2. Data on bankers dollar acceptances are gathered from approximately 40 institutions;
includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and
agencies of foreign banks, and Edge and agreement corporations. The reporting group is
revised every year.
Short-Term Business Loans1
Percent per year
Average
rate
8.25
8.50
8.25
8.00
7.75
8.00
8.25
8.50
8.75
9.00
9.50
8.44
8.35
8.00
1997
1998
1999
1997
Feh
Mar.
Apr.
May
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
8.25
8.25
8.30
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call
Average
rate
1998—Jan. .
Feb.
Mar.
Apr.
May
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.49
8.12
7.89
7.75
1999—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ..
June ..
July ...
Aug. ..
Sept. .
Oct. ...
Nov. ..
Dec. ..
2000—Jan
Feb. ..
Mar. ..
Apr. ..
May ..
June ..
July ...
Aug. ..
Sept. .
Oct. ...
Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415)
monthly statistical releases. For ordering address, see inside front cover.
Financial Markets
1.35
INTEREST RATES
A23
M o n e y and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
2000, week ending
2000
1997
1998
1999
June
July
Aug.
Sept.
Sept. 1
Sept. 8
Sept. 15
Sept. 22
Sept. 29
MONEY MARKET INSTRUMENTS
1 Federal funds 1 ' 2,3
2 Discount window borrowing 2 ' 4
5.46
5.00
5.35
4.92
4.97
4.62
6.53
6.00
6.54
6.00
6.50
6.00
6.52
6.00
6.54
6.00
6.56
6.00
6.50
6.00
6.50
6.00
6.50
6.00
3
4
5
Commercial paper',5,6
Nonfinancial
1 -month
2-month
3-month
5.57
5.57
5.56
5.40
5.38
5.34
5.09
5.14
5.18
6.53
6.55
6.57
6.49
6.50
6.52
6.47
6.48
6.49
6.48
6.47
6.47
6.48
6.48
6.48
6.47
6.47
6.47
6.48
6.47
6.47
6.48
6.47
6.46
6.49
6.48
6.47
6
7
8
Financial
1-month
2-month
3-month
5.59
5.59
5.60
5.42
5.40
5.37
5.11
5.16
5.22
6.53
6.56
6.59
6.50
6.51
6.54
6.49
6.49
6.49
6.49
6.48
6.47
6.47
6.49
6.49
6.49
6.49
6.47
6.49
6.48
6.47
6.50
6.48
6.46
6.49
6.48
6.47
5.54
5.58
5.62
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
(historicalJ3-5-7
9
10
11
Commercial paper
1-month
3-month
6-month
12
13
14
Finance paper, directly placed (historical) 3,5,8
1-month
3-month
6-month
5.44
5.48
5.48
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
15
16
Bankers
acceptances3,5,9
3-month
6-month
5.54
5.57
5.39
5.30
5.24
5.30
6.63
6.74
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
17
18
19
Certificates of deposit, secondary
1-month
3-month
6-month
5.54
5.62
5.73
5.49
5.47
5.44
5.19
5.33
5.46
6.60
6.73
6.91
6.57
6.67
6.86
6.55
6.61
6.76
6.56
6.60
6.68
6.54
6.59
6.72
6.55
6.59
6.70
6.56
6.59
6.69
6.56
6.58
6.66
6.57
6.63
6.67
5.61
5.45
5.31
6.73
6.67
6.61
6.59
6.59
6.58
6.58
6.58
6.62
5.06
5.18
5.32
4.78
4.83
4.80
4.64
4.75
4.81
5.69
5.97
5.83
5.96
6.00
5.75
6.09
6.07
5.87
6.00
5.98
5.79
6.13
6.10
5.90
6.02
6.02
5.85
5.95
5.94
5.80
5.98
5.96
5.76
6.03
6.00
5.76
5.07
5.18
5.36
4.81
4.85
4.85
4.66
4.76
4.78
5.74
6.02
6.00
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.63
5.99
6.10
6.22
6.33
6.35
6.69
6.61
5.05
5.13
5.14
5.15
5.28
5.26
5.72
5.58
5.08
5.43
5.49
5.55
5.79
5.65
6.20
5.87
6.17
6.48
6.43
6.30
6.33
6.10
6.28
5.93
6.08
6.34
6.28
6.18
6.22
6.05
6.20
5.85
6.18
6.23
6.17
6.06
6.05
5.83
6.02
5.72
6.13
6.08
6.02
5.93
5.98
5.80
6.09
5.83
6.23
6.20
6.13
6.02
6.01
5.76
6.00
5.71
6.20
6.11
6.03
5.95
5.96
5.73
5.99
5.70
6.14
6.10
6.03
5.95
5.99
5.78
6.06
5.79
6.09
6.08
6.03
5.95
6.02
5.88
6.19
5.94
6.08
6.04
5.97
5.90
5.96
5.82
6.14
5.89
6.67
5.69
6.14
6.23
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.32
5.50
5.52
4.93
5.14
5.09
5.28
5.70
5.43
5.69
6.24
5.80
5.53
6.09
5.63
5.43
6.01
5.51
5.40
6.12
5.56
5.38
6.00
5.49
5.35
5.98
5.49
5.35
6.02
5.51
5.39
6.20
5.59
5.50
6.27
5.63
7.54
6.87
7.45
8.05
7.98
7.88
7.98
7.90
7.89
7.98
8.08
7.99
7.27
7.48
7.54
7.87
6.53
6.80
6.93
7.22
7.05
7.36
7.53
7.88
7.67
7.87
8.18
8.48
7.65
7.81
8.11
8.35
7.55
7.70
8.02
8.26
7.62
7.83
8.13
8.35
7.55
7.71
8.05
8.27
7.54
7.72
8.05
8.25
7.60
7.83
8.13
8.35
7.71
7.93
8.23
8.44
7.65
7.85
8.13
8.35
1.77
1.49
1.25
1.12
1.10
1.09
1.10
1.08
1.08
1.08
1.10
1.12
market3,10
20 Eurodollar deposits, 3-month 3,11
U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction high 3,5,12
24
3-month
25
6-month
26
I-year
21
22
23
U.S. TREASURY NOTES AND BONDS
27
28
29
30
31
32
33
34
Constant maturities13
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
35 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series14
36 Aaa
37 Baa
38 Bond Buyer series' 3
CORPORATE BONDS
39 Seasoned issues, all industries' 6
40
41
42
43
Rating qroup
Aaa
Aa
A
Baa
MEMO
Dividend-price ratio[
44 Common stocks
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and
G.13 (415) monthly statistical releases. For ordering address, see inside front cover.
1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages
(http://www.federalreserve.gov/releases/cp) for more information.
7. An average of offering rates on commercial paper for firms whose bond rating is AA or
the equivalent. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies. Series
ended August 29, 1997.
9. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
Al rating. Based on Thursday figures.
16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
A24
1.36
DomesticNonfinancialStatistics • December 2000
STOCK MARKET
Selected Statistics
2000
Indicator
1997
1998
1999
Feb.
Jan.
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
456.99
574.97
415.08
143.87
424.84
550.65
684.35
468.61
190.52
516.65
619.52
775.29
491.62
284.82
530.97
634.07
814.73
456.35
485.82
495.23
606.03
767.08
398.69
482.30
471.65
622.28
790.35
384.39
509.59
491.29
646.82
822.76
406.14
502.78
524.05
640.07
814.75
411.50
487.17
523.22
649.61
819.54
395.09
501.93
544.51
653.27
825.28
410.67
484.19
556.32
666.14
837.23
419.84
459.91
597.17
667.05
829.99
404.23
463.76
616.89
6 Standard & Poor's Corporation
(1941-43 = 10)1
873.43
1,085.50
1,327.33
1,425.59
1,388.88
1,442.21
1,461.36
1,418.48
1,461.96
1,473.00
1,485.46
1,468.06
7 American Stock Exchange
(Aug. 31, 1973 = 50) 2
628.34
682.69
770.90
878.73
910.00
1,014.03
918.77
917.76
934.90
930.66
920.54
952.74
523,254
24,390
666,534
28,870
799,554
32,629
1,058,021
47,530
1,032,791
51,134
1,124,097
59,449
1,047,960
63,054
893,896
44,146
971,137
42.490
941,694
36,486
875,087
35,695
1,026,597
47,047
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
Free credit balances at brokers4
11 Margin accounts 5
12 Cash accounts
1,361,600
293,000
517,030
1,685,820 2,130,152
405,180
633,725
532,500
757,345
243,490
265,210
278,530
251,700
240,660
247,200
244,970
247,560
250,780
57,800
75,760
56,470
79,700
65,020
85,530
65,930
76,190
66,170
73,500
64,970
74,140
71,730
74,970
68,020
72,640 r
70,959
74,766
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.
Jan. 3, 1974
50
50
50
6. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985. the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization; such maintenance margin rules
must be approved by the Securities and Exchange Commission.
Federal Finance
1.38
A25
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Fiscal year
Type of account or operation
2000
1998
1999
2000
Apr.
U.S. budget1
1 Receipts, total
On-budget
2
Off-budget
3
4 Outlays, total
On-budget
5
Off-budget
6
7 Surplus or deficit ( —), total
On-budget
8
Off-budget
9
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (—))
12 Other 2
May
June
July
Aug.
Sept.
1,721,798
1,305,999
415,799
1,652,552
1,335,948
316,604
69,246
-29,949
99,195
1,827,454
1,382,986
444,468
1,702,940
1,382,262
320,778
124,414
724
123,690
2,025,038
1,544,455
480,583
1,788,045
1,457,280
330,765
236,993
87,175
149,818
295,148
244,662
50,486
135,651
105,742
29,909
159,497
138,920
20,577
146,002
107,469
38,533
149,612
114,829
34,783
-3,611
-7,360
3,750
214,875
168,319
46,556
158,987
152,308
6,679
55,888
16,011
39,877
134,074
97,681
36,393
129,013
99,404
29,609
5,061
-1,723
6,784
138,128
101,429
36,699
148,555
115,539
33,016
-10,427
-14,110
3,683
219,471
176,692
42,779
153,649
114,748
38,901
65,822
61,944
3,878
-51,211
4,743
-22,778
-88,674
-17,580
-18,160
-222,672
3,799
-18,120
-112,667
-47,787
957
-53,755
69,470
-12,104
-23,131
-34,350
1,593
-31,307
23,384
2,862
9,995
20,873
-20,441
-32,334
-39,479
5,991
38,878
4,952
33,926
56,458
6,641
49,817
52,659
8,459
44,199
92,557
15,868
76,689
23,087
5.445
17,642
57,437
6,208
51,229
34,053
5,392
28,661
13,180
5,961
7,218
52,659
8,459
44,199
MEMO
13 Treasury operating balance (level, end of
period)
Federal Reserve Banks
14
Tax and loan accounts
15
1. Since 1990, off-budget items have been the social security trust funds (Federal Old-Age,
Survivors, and Disability Insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;
net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government.
A26
1.39
DomesticNonfinancialStatistics • December 2000
U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Fiscal year
Calendar year
Source or type
1998
1999
1999
2000
2000
2000
H2
HI
H2
HI
July
Aug.
Sept.
RECEIPTS
1 All sources
2 Individual income taxes, net
Withheld
3
4
Nonwithheld
Refunds
5
Corporation income taxes
Gross receipts
6
Refunds
7
8 Social insurance taxes and contributions, net . . .
y
Employment taxes and contributions 2
Unemployment insurance
10
Other net receipts 3
n
12
13
14
15
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
1,827,454
2,025,038
825,057
966,045
892,266
1,089,760
134,074
138,128
219,471
879,480
693,940
308,185
122,706
1,004,461
780,397
358,049
134,046
392,332
339,144
65,204
12,032
481,907
351.068
240,278
109,467
425,451
372,012
68,302
14,841
550,208
388,526
281,103
119,477
66,301
64,474
4,066
2,241
68,033
62,057
7,850
1,874
104,402
59,766
48,229
3,593
216,324
31.645
611,833
580,880
26,480
4,473
235,655
28,367
652,851
620,447
27,641
4,763
104,163
14,250
268,466
256,142
10,121
2.202
106.861
17,092
324,831
306,235
16.378
2.216
110,111
13,996
292,551
280,059
10,173
2,319
119,166
13,781
353,514
333,584
17,562
2,368
6,605
1,592
49,650
47,136
2.145
369
6,577
1,903
52,082
48,132
3,584
366
46,183
2,746
56,293
55,682
168
443
70,414
18,336
27,782
34,929
68,866
19,913
29,010
42,647
33,366
9,838
12,359
18,735
31,015
8,440
14,915
15,140
34,262
10,287
14,001
19,569
33,532
9,218
15,073
22,831
6,022
1,781
1,872
3,435
5,580
2,071
2,304
3,383
7,769
1,823
2,168
3,579
1,702,940
1,788,045
877,414
817,227
882,465 r
OUTLAYS
16 All types
892,947
129,013
148,555
153,649
17
18
19
20
21
22
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
274,873
15,243
18,125
912
23,970
23,011
293,856
17,252
19,707
-1,020
23,295
38,472
140,196
8,297
10,142
699
12,671
16,757
134,414
6.879
9.319
797
10.351
9.803
149,820
8,530
10,089
-90
12,100
20,887
143,476
7,250
9,601
-893
10,814
11,164
19,542
3,067
1,524
42
1,783
496
24,767
-667
1,829
-223
2,267
1,449
28,243
1,553
1,716
530
2,542
6,842
23
24
25
26
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
2,649
42,531
11,870
3,321
46,211
11,687
4,046
20,836
6,972
-1.629
17.082
5,368
7,353
22,972
7,135
-2,497
21,054
5,050
423
3,781
814
-1,295
4,866
1,007
4,591
4,209
975
27 Health
28 Social security and Medicare
29 Income security
30
31
32
33
34
Veterans benefits and services
Administration of justice
General government
Net interest 5
Undistributed offsetting receipts 6
56,402
58,364
27,762
29,003
27,532
31,234
3,874
5,576
3,616
141,079
580,488
237,707
154,215
606,552
247,380
67,838
316,809
109,481
69.320
261,146
126.552
74,490
295,030
113,504
75,871
306,966
133,915
12,450
47,415
15,343
14,512
52,206
18,521
13,566
50,381
20,031
43,212
25,924
15,771
229,735
-40,445
47,084
27,704
13,721
222,825
-42,581
22,750
12,041
9,136
116,954
-25,793
20.105
13.149
6,641
116,655
-17,724
23,412
13,459
7,006
112,420
-22,850
23,174
13,981
6,198
115,545
-19,346
1,910
2,051
960
17,660
-3,818
3,700
2,405
906
20,004
-3,275
5,619
2,398
1,017
12,584
-6,766
1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do not correspond to calendar year data because revisions from the Budget have not
been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S.
Government, Fiscal Year 2001; monthly and half-year totals: U.S. Department of the Treasury. Monthly Treasury Statement of Receipts and Outlays of the U.S. Government.
Federal Finance A25
1.40
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
2000
1999
1998
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
5,556
5,643
5,681
5,668
5,685
5,805
5,802
5,714
5,702
2 Public debt securities
3
Held by public
4
Held by agencies
5,526
3,761
1,766
5,614
3,787
1,827
5,652
3,795
1,857
5,639
3,685
1,954
5,656
3,667
1,989
5,776
3,716
2,061
5,773
3,688
2,085
5,686
n.a.
n.a.
5,674
n.a.
n.a.
29
26
4
29
29
1
29
28
1
29
28
1
29
28
1
29
28
1
28
28
0
28
n.a.
n.a.
28
n.a.
n.a.
5,440
5,530
5,566
5,552
5,568
5,687
5,687
5,601
5,592
5,439
0
5,530
0
5,566
0
5,552
0
5,568
0
5,687
0
5,686
0
5,601
0
5,591
0
5,950
5,950
5,950
5,950
5,950
5,950
5,950
5,950
5,950
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 U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
1999
Type and holder
1 Total gross public debt
By type
2 Interest-bearing
3
Marketable
4
Bills
5
Notes
6
Bonds
Inflation-indexed notes and bonds'
7
8
Nonmarketable 2
9
State and local government series
Foreign issues 3
10
Government
11
12
Public
Savings bonds and notes
13
14
Government account series 4
15 Non-interest-bearing
By holder 5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks
18 Private investors
19
Depository institutions
20
Mutual funds
21
Insurance companies
State and local treasuries 6
22
Individuals
Savings bonds
23
Pension funds
24
25
Private
26
State and Local
27
Foreign and international 7
Other miscellaneous investors 6 ' 8
28
1996
1998
2000
1999
Q4
Qi
Q2
Q3
5,323.2
5,502.4
5,614.2
5,776.1
5,776.1
5,773.4
5,685.9
5,674.2
5,317.2
3,459.7
777.4
2,112.3
555.0
n.a.
1,857.5
101.3
37.4
47.4
.0
182.4
1,505.9
6.0
5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
1,666.7
7.5
5,605.4
3,355.5
691.0
1,960.7
621.2
67.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8
5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2,078.7
10.0
5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2.078.7
10.0
5,763.8
3,261.2
753.3
1,732.6
653.0
107.4
2,502.6
161.9
28.8
28.8
.0
178.6
2,103.3
9.6
5,675.9
3,070.7
629.9
1,679.1
637.7
109.0
2,605.2
160.4
27.7
27.7
.0
177.7
2,209.4
10.1
5,622.1
2,992.8
616.2
1,611.3
635.3
115.0
2,629.3
153.3
25.4
25.4
.0
177.7
2,242.9
52.1
1,497.2
410.9
3,431.2
296.6
315.8
214.1
257.0
1,655.7
451.9
3,414.6
300.3
321.5
176.6
239.3
1,826.8
471.7
3,334.0
237.3
343.2
144.5
269.3
2,060.6
477.7
3,233.9
246.3
349.5
140.0
266.8
2,060.6
477.7
3,233.9
246.3
349.5
140.0
266.8
2,085.4
501.7
3,182.8
234.9
343.7
138.7
257.2
2,190.2
505.0
2,987.4
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
187.0
392.7
189.2
203.5
1,102.1
665.9
186.5
421.0
204.1
216.9
1,241.6
527.9
186.7
434.7
218.1
216.6
1,278.7
438.5
186.5
445.5
234.5
211.0
1,268.8
330.5
186.5
445.5
234.5
211.0
1,268.8
330.5
185.3
432.3
230.8
201.5
1,274.0
316.7
184.7
n.a.
n.a.
n.a.
1,248.9
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.
1997
181.2
7. Includes nonmarketable foreign series treasury securities and treasury deposit funds.
Excludes treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.
A28
1.42
DomesticNonfinancialStatistics • December 2000
U.S. GOVERNMENT SECURITIES DEALERS
Transactions'
Millions of dollars, daily averages
2000
2000, week ending
Item
June
Aug.
July
Aug. 2
Aug. 9
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
OUTRIGHT TRANSACTIONS 2
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2
Five years or less
3
More than five years
4 Inflation-indexed
Federal agency
5 Discount notes
Coupon securities, by maturity
6
One year or less
7
More than one year, but less than
or equal to five years
8
More than five years
9 Mortgage-backed
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
13
U.S. Treasury
14
Federal agency
15
Mortgage-backed
10
11
12
20.474
16,467
21,487
18,878
14,037
26,057
17,685
27,255
31,270
23,896
22,297
22,099
102,265
64,492
955
96,709
57,055
1,261
84,941
62,777
1,185
92,640
62.388
974
94,852
76,071
1,553
85,623
72,768
730
78,770
49,068
1,144
75,257
53,359
1,219
95,849
62,764
2,086
90,909
56,674
1,683
133,824
92,418
1,043
140,680
63,927
1,584
49,638
53,649
53,668
49,882
48,162
52,526
56,654
58,435
55,704
50,911
46,575
48,146
864
1,299
1,314
939
1,086
1,290
1,397
1,710
935
1,271
1,208
1,175
7,304
9,031
64,884
7,939
9,286
68,080
8,879
7,002
67,487
8,927
12.443
49,239
11,721
7,651
78,965
8,571
5,969
114,415
8,420
6,852
47,010
7,163
5,534
37,714
6,995
6,129
63,208
12,658
7,644
111,898
10,972
16,190
79,310
7,646
8,844
53,823
92,504
8,398
24,768
81,757
7,497
22,785
81,566
8,089
25,460
79,015
7,312
18,662
92,325
9,255
28,771
88,900
7,947
39,793
70,397
9,018
20,486
74,830
6,690
16,444
85,739
6,865
20,792
83,155
10,062
39,863
119,564
12,497
25,681
112,466
9,130
27,664
95,682
58,438
40,116
89,735
64,677
45,294
88,823
62,774
42,027
95,865
64,879
30,577
94,187
59,364
50,194
96,279
60,409
74,622
76,270
64,305
26,524
82,260
66,152
21,270
106,229
62,898
42,416
90,006
62,422
72,017
130,018
62,448
53,628
115,824
56,681
26,159
n.a.
n.a.
FUTURES TRANSACTIONS 3
By type of deliverable
security
16 U.S. Treasury bills
Coupon securities, by maturity
17
Five years or less
18
More than five years
19 Inflation-indexed
Federal agency
20 Discount notes
Coupon securities, by maturity
21
One year or less
22
More than one year, but less than
or equal to five years
23
More than five years
24 Mortgage-backed
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3,549
13,282
0
2,571
8,991
0
3,467
10,960
0
2,212
10,291
0
2,387
10,456
0
2,930
11,118
0
3,715
10,149
0
5,025
12,228
0
5,032
11,749
0
3,346
9,846
0
3,255
15,512
0
2,185
10,460
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
245
0
0
51
0
0
109
0
0
29
0
0
130
0
0
83
0
0
118
0
0
150
0
0
49
0
0
138
0
0
237
0
0
189
0
OPTIONS TRANSACTIONS 4
25
26
27
28
29
30
31
32
33
By type of underlying
security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
0
0
0
0
0
0
0
0
0
0
0
0
1,398
3,185
0
1,214
2,634
0
1,149
2,821
0
1,057
2.627
0
991
3,389
0
1,000
2,656
0
1,505
2,981
0
1,201
2,313
0
831
2,923
0
1,569
3,070
0
1,606
4,131
0
1,425
3,117
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
1,306
12
3
898
34
2
1,145
52
0
1,206
n.a.
n.a.
2,527
0
0
0
650
61
n.a.
581
38
16
1,049
0
1,446
n.a.
n.a.
851
0
n.a.
832
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in five business days or less and "when-issued"
securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.
n.a.
817
n.a.
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Federal Finance
1.43
U.S. GOVERNMENT SECURITIES DEALERS
A25
Positions and Financing1
Millions of dollars
2000, week ending
2000
Item
June
Aug.
July
Aug. 2
Aug. 9
Aug. 16
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Positions"
NET OUTRIGHT POSITIONS 3
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2
Five years or less
3
More than five years
4 Inflation-indexed
Federal agency
5 Discount notes
Coupon securities, by maturity
6
One year or less
7
More than one year, but less than
or equal to five years
8
More than five years
9 Mortgage-backed
1,111
2,938
17,068
3,514
3,951
2,426
-38,615
-21,306
1,668
-31,279
-21,335
2,564
-29,287
-18,943
2,711
-33,081
-23,220
2,607
-26,247
-22,566
2,633
-33,122
-18,402
2,784
-29,917
-16,430
2,926
-27,175
-17,471
2,635
-26,519
-16,718
1,982
-27,258
-16,789
2,477
32.775
35,531
31,912
35,904
34,631
34,206
26,436
31,262
31,726
36,160
10,016
12,896
13,638
14,075
13,084
13,948
14,028
13,549
12,380
14,792
1,925
899
23,442
3,249
1,268
20,713
5,089
18,646
4,441
2,378
20,035
3,631
2,693
20,354
5,810
1,113
21,329
4,975
842
17,537
5,991
197
15,766
6,016
1,035
13,051
4,327
34
15,083
12,969
-165
14,350
71
11,726
-329
13,974
1,362
12,400
54
13,275
538
10,909
-1,969
10,071
-546
8,981
544
6,799
124
1,281
NET FUTURES POSITIONS 4
By type of deliverable security'
10 U.S.'Treasury bills
.'
Coupon securities, by maturity
11
Five years or less
12
More than five years
13 Inflation-indexed
Federal agency
14 Discount notes
Coupon securities, by maturity
15
One year or less
16
More than one year, but less than
or equal to five years
17
More than five years
18 Mortgage-backed
0
0
0
0
-740
0
0
0
0
-261
0
0
0
0
0
-582
0
0
0
0
0
-309
0
0
0
0
0
-713
0
0
0
0
0
-709
0
0
0
0
0
-523
0
0
0
0
0
0
0
0
0
0
-470
-528
-638
2,052
765
1,528
1,522
3,134
870
NET OPTIONS POSITIONS
19
20
21
22
23
24
25
26
27
By type of deliverable security
U.S." Treasury bills
."
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
1,868
376
400
1,143
1,699
1,723
1,324
1,127
2,498
1,688
1,218
1,484
908
2,041
194
522
929
233
309
2,236
208
233
409
5,009
237
336
4,008
223
327
4,634
5,429
108
17
6,177
105
22
5,772
150
15
3,926
0
0
0
0
0
0
0
0
181
0
0
0
0
0
0
0
273
0
0
0
0
0
0
0
0
Financing5
Reverse repurchase agreements
28 Overnight and continuing
29 Term
294,802
850,521
282,999
828,512
283,661
782,717
289,789
884,781
282,395
926,331
303,063
692,080
278,813
732,843
267,642
757,389
290,528
734,160
274,009
773,814
289,304
778,606
Securities borrowed
30 Overnight and continuing
31 Term
292,038
112,854
299,289
113,572
285,382
114,470
294,119
116,718
289,814
118,211
285,773
112,955
287,751
110,811
275,653
116,175
285,659
108,057
283,829
110,917
285,836
111,445
2,454
n.a.
2,367
n.a.
2,535
n.a.
2,374
n.a.
2,561
n.a.
2,109
n.a.
2,422
n.a.
2,272
n.a.
2,057
n.a.
Securities received as pledge
32 Overnight and continuing
33 Term
n.a.
n.a.
n.a.
n.a.
Repurchase agreements
34 Overnight and continuing
35 Term
744,475
746,986
750,138
736,488
748,503
689,557
749,157
780,594
751,407
834,622
786,525
594,522
735,461
636,948
719,039
671,941
758,248
648.849
737,204
688,139
739,576
720,286
Securities loaned
36 Overnight and continuing
37 Term
7,698
6,567
7,433
5,295
7,705
4,295
8.214
3,400
8,153
3,415
8,060
3,734
7,237
3,725
7,317
6,234
7,060
6,594
7,290
6,597
6,999
6,597
Securities pledged
38 Overnight and continuing
39 Term
61,667
4,249
63,077
4,358
60,868
4,203
60,855
4,493
59,469
4,576
60,006
4,086
61,715
4,031
62,275
4,072
60,931
3,952
64,044
4,247
61,419
4,367
Collateralized loans
40 Total
16,826
20,706
23,695
27,895
25,145
20,826
26,452
21,204
23,375
30,761
18,582
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate positions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
"when-issued" securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
A30
1.44
DomesticNonfinancialStatistics • December 2000
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
2000
Agency
1996
1997
1998
1999
Mar.
1
Federal and federally sponsored agencies
2
3
4
5
6
Federal agencies
Defense Department'
Export-Import Bank2'3
Federal Housing Administration4
Government National Mortgage Association certificates of
participation5
Postal Service6
Tennessee Valley Authority
United States Railway Association6
7
8
9
10
11
12
13
14
15
16
17
18
Federally sponsored agencies7
Federal Home Loan Banks
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Farm Credit Banks8
Student Loan Marketing Association 9
Financing Corporation10
Farm Credit Financial Assistance Corporation"
Resolution Funding Corporation12
925,823
1,022,609
1,296,477
1,616,492
1,644,276
29,380
6
1,447
84
27.792
6
552
102
26,502
6
26,376
6
26,231
6
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
27,786
26,496
26,370
26,225
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
27,853
n.a.
205
Apr.
May
June
n.a.
193,776
194,673
n.a.
26,011
6
26,052
6
26,669
6
26,094
6
n.a.
168
126
n.a.
n.a.
184
173
185
July
n.a.
205
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
26,005
26,046
26,663
26,088
n.a.
n.a.
n.a.
n.a.
n.a.
896,443
263,404
156,980
331,270
60,053
44,763
8,170
1,261
29,996
994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996
1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996
1,590,116
529,005
360,711
547,619
68,883
41,988
8,170
1,261
29,996
1,618,045
535,284
378,006
557,543
67,154
38,089
8,170
1,261
29,996
164,298
541,673
388,261
561,700
69,036
40,119
8,170
1,261
29,996
167,726
557,506
392,555
571,800
70,036
43,144
8,170
1,261
29,996
168,004
568,438
384,286
578,500
69,541
37,263
8,170
1,261
29,996
58,172
49,090
44,129
42,152
39,306
38,700
39,102
38,513
38,143
+1
F
565,037
399,370
579,448
69,757
n.a.
8,170
1,261
29,996
MEMO
19
Federal Financing Bank debt 13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
552
1,431
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
T
T
f
1
4
1
f
I
n.a.
n.a.
n.a.
n.a.
n.a.
I
I
i
I
t
I
1
t
I
n.a.
I
1
1
i
14
25
26
27
Other lending
Farmers Home Administration
Rural Electrification Administration
Other
18,325
16,702
21,714
13,530
14,898
20,110
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration, the Department
of Health, Education, and Welfare, the Department of Housing and Urban Development, the
Small Business Administration, and the Veterans Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation; therefore, details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
9,500
14.091
20,538
6,665
14,085
21,402
6,350
13,152
19,804
6,240
13,167
19,293
6,140
13,221
19,741
6,040
13,121
19,352
5,760
13,165
19,218
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance
1.45
NEW SECURITY ISSUES
A31
Tax-Exempt State and Local Governments
Millions of dollars
2000
Type of issue or issuer,
or use
1997
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
1 All issues, new and refunding1
214,694
262,342
215,427
10,905
16,780
14,233
14,136
20,208
12,827
15,284
15,598
By type of issue
2 General obligation
3 Revenue
69,934
134,989
87,015
175,327
73,308
142,120
4,473
6,433
5,008
11,773
4,598
9,635
6,051
8,086
8,581
11,628
4,256
8,572
5,194
10,090
6,888
8,710
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
18,237
134,919
70,558
23,506
178,421
60,173
16,376
152,418
46,634
1,730
7,414
1,761
1,570
11,098
4,112
1,371
10,229
2,633
1,102
9,639
3,396
2,907
13,520
3,782
783
8,545
3,500
1,011
10,728
3,545
2,022
10,152
3,424
7 Issues for new capital
135,519
160,568
161,065
9,382
13,508
12,029
12,481
16,987
11,297
12,402
13,968
31,860
13,951
12,219
27,794
6,667
35,095
36,904
19,926
21,037
n.a.
8,594
42,450
36,563
17,394
15,098
n.a.
9,099
47,896
2,548
723
115
n.a.
647
2,804
3,436
2,723
1,086
n.a.
747
2,426
2,484
768
729
n.a.
762
3,903
3,662
1,778
537
n.a.
585
3,557
4,465
1,093
1,141
n.a.
1,150
5,776
3,185
1,947
353
n.a.
632
2,543
3,630
1,979
1,409
n.a.
281
3,564
3,210
1,574
1,408
n.a.
387
5,243
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
SOURCE. Securities Data Company beginning January 1990; Investment
Digest before then.
Dealer's
U.S. Corporations
Millions of dollars
2000
Type of issue, offering,
or issuer
1 All issues'
2 Bonds
2
By type of offering
3 Sold in the United States
4 Sold abroad
1997
929,256
1998
1,128,491
1999
1,072,866
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
55,714
85,679
113,093
61,963
62,939
100,615
65,511
81,964
57,476
69,875
811,376
1,001,736
941,298
44,220
63,391
96,148
40,941
58,233
92,742
708,188
103,188
923,771
77,965
818,683
122,615
30,784
13,436
56,727
6,664
87,603
8,545
36,724
4,217
45,986
12,247
75,271
17,471
40,753
16,723
56,132
13,742
967
65
0
228
2,694
3,391
1,038
241
MEMO
5 Private placements, domestic
n.a.
n.a.
n.a.
By industry group
6 Nonfinancial
7 Financial
222,603
588.773
307,935
693,801
293,963
647,335
14,599
29,620
26,598
36,792
28,086
68,062
8,060
32,881
20,832
37,401
29,412
63,331
15,885
41,592
17,947
51,928
8 Stocks3
173,330
205,605
217,868
11,494
22,288
16,945
21,022
4,706
7,873
8,035
12,265
By type of offering
9 Public
10 Private placement4
117,880
55,450
126,755
78,850
131,568
86,300
11,494
n.a.
22,288
n.a.
16,945
n.a.
21,022
n.a.
4,706
n.a.
7,873
n.a.
8,035
n.a.
12,265
n.a.
By industry group
11 Nonfinancial
12 Financial
60,386
57,494
74,113
52,642
110,284
21,284
9,247
2,247
21,796
492
15,679
1,266
16,763
4,259
4,522
184
6,521
1,352
7,773
262
8,083
4,182
1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data are not available.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.
A32
1.47
DomesticNonfinancialStatistics • December 2000
Net Sales and Assets1
OPEN-END INVESTMENT COMPANIES
Millions of dollars
2000
Item
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug/
Sept.
1 Sales of own shares 2
1,461,430
1,791,894
237,861
269,118
202,248
172,718
181,866
166,815
179,890
160,272
2 Redemptions of own shares
3 Net sales3
1,217,022
244,408
1,621,987
169,906
197,423
40,438
243,194
25,924
176,671
25,577
162,984
9,735
161,462
20,404
151,717
15,098
159,027
20,864
148,200
12,072
4 Assets 4
4,173,531
5,233,191
5,375,874
5,606,254
5,391,187
5,232,319
5,458,914
5,392,308
5,745,264
5,551,051
5 Cash5
6 Other
191,393
3,982,138
219,189
5,014,002
231,480
5,144,394
221,623
5,384,630
254,819
5,136,368
260,426
4,971,892
259,241
5,199,673
258,472
5,133,836
261,967
5,483,298
280,160
5,270,891
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.
1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.
1.48
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1998
Account
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits-tax liability
4 Profits after taxes
5 Dividends
6 Undistributed profits
7 Inventory valuation
8 Capital consumption adjustment
1997
1998
1999
2000
1999
Q3
Q4
Ql
Q2
Q3
Q4
Ql
Q2r
833.8
792.4
237.2
555.2
335.2
220.0
815.0
758.2
244.6
513.6
351.5
162.1
856.0
823.0
255.9
567.1
370.7
196.4
818.0
760.1
249.0
511.1
351.4
159.7
803.4
742.3
239.4
502.9
356.1
146.9
852.0
797.6
247.8
549.9
361.1
188.7
836.8
804.5
250.8
553.7
367.2
186.5
842.0
819.0
254.2
564.8
373.9
190.9
893.2
870.7
270.8
599.9
380.6
219.3
936.3
920.7
286.3
634.4
387.3
247.1
963.6
942.5
292.0
650.4
393.0
257.4
8.4
32.9
17.0
39.9
-9.1
42.1
17.7
40.2
19.9
41.2
11.4
42.9
-8.9
41.2
-19.7
42.7
-19.2
41.6
-25.0
40.6
-13.6
34.7
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
1999
Account
1997
1998
2000
1999
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
1 Accounts receivable, gross2
2
Consumer
3
Business
4
Real estate
5 LESS: Reserves for unearned income
6
Reserves for losses
663.3
256.8
318.5
87.9
711.7
261.8
347.5
102.3
811.5
279.8
405.2
126.5
733.8
261.7
362.8
109.2
756.5
269.2
373.7
113.5
776.3
271.0
383.0
122.3
811.5
279.8
405.2
126.5
848.7
285.4
434.6
128.8
884.4r
294.1
454. l r
136.2r
n.a.
n.a.
n.a.
n.a.
52.7
13.0
56.3
13.8
53.5
13.5
52.9
13.4
53.4
13.4
54.0
13.6
53.5
13.5
54.0
14.0
57.0
14.4
n.a.
n.a.
r
n.a.
n.a.
7 Accounts receivable, net
8 All other
597.6
312.4
641.6
337.9
744.6
406.3
667.6
363.3
689.7
373.2
708.6
368.5
744.6
406.3
780.7
412.7
813.1
419.4
9 Total assets
910.0
979.5
1,150.9
1,030.8
1,062.9
1,077.2
1,150.9
1,193.4
L,232.4 R
n.a.
24.1
201.5
26.3
231.5
35.1
227.9
24.8
222.9
25.1
231.0
27.0
205.3
35.1
227.9
28.5
230.2
33.3
234.2
n.a.
n.a.
64.7
328.8
189.6
101.3
61.8
339.7
203.2
117.0
123.8
397.0
222.7
144.5
64.6
366.7
220.3
131.5
65.4
383.1
226.1
132.2
84.5
396.2
216.0
148.2
123.8
397.0
222.7
144.5
145.1
412.0
247.6
130.1
136.8
445.1
249.6
135.3
n.a.
n.a.
n.a.
n.a.
910.0
979.5
1,150.9
1,030.8
1,062.9
1,077.2
1,150.9
1,193.4
1,234.4
n.a.
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
16 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses. Excludes pools of securitized assets,
Securities Market and Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A33
Owned and Managed Receivables1
Billions of dollars, a m o u n t s outstanding
2000
Type of credit
1997
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug.
Seasonally adjusted
1 Total
810.5
875.8
993.9
1,032.2
1,054.1
1,073.3
1,088.7
1,108.5
1,089.1
1,094.1
2
3
4
327.9
121.1
361.5
352.8
131.4
391.6
385.3
154.7
453.9
395.5
162.3
474.4
396.7
167.9
489.4
398.0
173.1
502.2
400.7
178.4
509.5
401.4
185.7
521.4
405.9
167.5
515.8
411.1
169.0
514.1
Consumer
Real estate
Business .
Not seasonally adjusted
5 Total
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Consumer
Motor vehicles loans
Motor vehicle leases
Revolving2
Other3
Securitized assets4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6
818.1
884.0
1,003.2
1,031.9
1,057.0
1,073.6
1,088.5
1,114.0
1,082.3
1,087.9
330.9
87.0
96.8
38.6
34.4
356.1
103.1
93.3
32.3
33.1
388.8
114.7
98.3
33.8
33.1
392.3
121.3
100.7
32.9
32.7
392.8
121.1
101.7
31.5
31.1
394.4
120.9
102.8
31.9
31.2
399.4
124.1
104.1
31.6
31.9
403.9
126.5
103.9
33.1
30.7
408.3
129.4
104.4
33.6
31.5
412.3
130.7
105.4
33.6
32.3
44.3
10.8
.0
19.0
121.1
59.0
28.9
54.8
12.7
8.7
18.1
131.4
75.7
26.6
71.1
9.7
10.5
17.7
154.7
88.3
38.3
67.8
9.2
10.4
17.3
162.3
91.7
38.4
71.2
8.8
10.3
17.1
167.9
90.4
38.4
72.1
8.5
10.1
16.8
173.1
93.6
39.0
71.9
8.2
11.1
16.5
178.4
97.3
39.4
74.1
7.9
11.1
16.6
185.7
97.2
39.6
74.5
7.6
10.9
16.4
167.5
100.5
39.7
76.2
7.4
10.7
16.2
169.0
101.7
40.2
33.0
.2
366.1
63.5
25.6
27.7
10.2
203.9
51.5
152.3
51.1
29.0
.1
396.5
79.6
28.1
32.8
18.7
198.0
50.4
147.6
69.9
28.0
.2
459.6
87.8
33.2
34.7
19.9
221.9
52.2
169.7
95.5
32.0
.2
477.4
89.6
33.7
35.8
20.1
225.1
52.8
172.3
101.4
38.9
.2
496.3
90.2
32.3
37.9
19.9
238.0
54.9
183.1
106.4
40.2
.2
506.1
93.6
32.7
38.9
22.0
243.1
55.6
187.5
107.4
41.5
.2
510.7
94.8
33.3
39.5
22.0
247.3
55.9
191.5
106.6
48.6
.2
524.5
94.5
33.8
38.4
22.3
250.9
56.7
194.2
109.8
27.1
0.2
506.4
89.4
34.1
32.9
22.3
248.6
54.8
193.9
109.4
26.8
0.2
506.7
89.6
34.3
32.6
22.7
250.0
54.3
195.8
108.3
33.0
2.4
30.5
.0
10.7
4.2
6.5
4.0
29.2
2.6
24.7
1.9
13.0
6.6
6.4
6.8
31.5
2.9
26.4
2.1
14.6
7.9
6.7
8.4
31.0
2.8
26.1
2.1
22.5
15.9
6.6
7.7
31.5
3.2
25.9
2.4
22.0
15.4
6.5
8.3
32.3
3.1
26.8
2.4
21.7
15.2
6.5
8.0
32.0
3.0
26.7
2.4
21.5
15.0
6.5
8.4
31.7
2.9
26.4
2.4
31.1
15.8
15.2
6.6
29.8
2.8
24.6
2.4
22.5
16.0
6.5
6.8
29.6
2.7
24.5
2.4
22.4
15.9
6.5
6.8
NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown
before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A34
1.53
DomesticNonfinancialStatistics • December 2000
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
2000
Item
1997
1998
1999
Mar.
Apr.
May
June
July
Aug.
Sept.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Yield (percent per year)
6 Contract rate1
7 Effective rate1,3
8 Contract rate (HUD series)4
180.1
140.3
80.4
28.2
1.02
195.2
151.1
80.0
28.4
.89
210.7
161.7
78.7
28.8
.77
226.0
170.7
77.7
29.0
.68
224.2
170.2
77.9
29.1
.68
232.2
176.3
78.0
29.2
.71
238.6
178.3
76.9
29.2
.69
235.8
178.3
77.7
29.3
.66
237.0
179.7
77.7
29.3
.68
241.9
182.5
77.1
29.2
.70
7.57
7.73
7.76
6.95
7.08
7.00
6.94
7.06
7.45
7.49
7.60
8.19
7.52
7.63
8.29
7.44
7.55
8.26
7.40
7.50
n.a.
7.41
7.51
n.a.
7.44
7.54
n.a.
7.41
7.52
n.a.
7.89
7.26
7.04
6.43
7.74
7.03
8.35
7.79
8.33
7.64
8.58
8.06
n.a.
7.69
n.a.
7.59
n.a.
7.44
n.a.
7.43
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHAA'A insured
13
Conventional
316,678
31,925
284,753
414.515
33,770
380,745
523,941
55,318
468,623
538,751
58,451
480,300
539,181
58,899
480,282
545,803
59,140
486,663
552,166
59,703
492,463
561,045
60,397
500,648
568,187
60,150
508,037
574,087
59,961
514,126
14 Mortgage transactions purchased (during period)
70,465
188,448
195,210
8,801
6,257
12,872
12,842
15,128
13,352
11,501
Mortgage commitments (during period)
15 Issued7
16 To sell8
69,965
1,298
193,795
1,880
187,948
5,900
10,051
1,954
12,524
1,340
10,450
1,594
11,825
1,254
16,660
436
14,253
236
16,143
693
Mortgage holdings (end of period)8
17 Total
FHAA'A insured
18
19
Conventional
164,421
177
164,244
255,010
785
254,225
324,443
1.836
322,607
336,338
2,521
333,817
339,207
1,987
337,220
347,370
3,116
344,254
350,836
2,892
347,944
354,020
2,858
351,162
357,002
2,903r
354,099r
361,624
3,517
358,107
Mortgage transactions (during period)
20 Purchases
21 Sales
117,401
114,258
267.402
250,565
239,793
233,031
9,323
8,569
8,393
8,077
15,741
15,261
12,271
11,806
10,912
10,539
16,056
15,558
21.748
21,189
22 Mortgage commitments contracted (during period)9
120,089
281,899
228,432
10,122
8,750
13,807
13,596
10,803
17,468
19,481
FEDERAL HOME LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured
by the Federal Housing Administration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
Real Estate
1.54
A35
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
2000
1999
Type of holder and property
1 All holders
2
3
4
5
By type of property
One- to four-family residences
Multifamily residences
Nonfarm, nonresidential
Farm
By type of holder
6 Major financial institutions
7
Commercial banks"
8
One- to four-family
9
Multifamily
in
Nonfarm, nonresidential
11
Farm
12
Savings institutions'
13
One- to four-family
14
Multifamily
15
Nonfarm, nonresidential
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
Multifamily
25
26
Farmers Home Administration4
27
One- to four-family
Multifamily
28
29
Nonfarm, nonresidential
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
Multifamily
33
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
Nonfarm, nonresidential
37
38
Farm
39
Federal Deposit Insurance Corporation
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
43
Farm
44
Federal National Mortgage Association
45
One- to four-family
46
Multifamily
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts5
54
Government National Mortgage Association
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
Federal National Mortgage Association
60
61
One- to four-family
62
Multifamily
63
Farmers Home Administration4
64
One- to four-family
Multifamily
65
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family 6
70
Multifamily
71
Nonfarm, nonresidential
72
Farm
73 Individuals and others7
74
One- to four-family
Multifamily
75
76
Nonfarm, nonresidential
77
Farm
1997
1996
Q2
Q3
Q4
Ql
Q2
4,865,412
5,197,838
5,722,645
6,015,365
6,224,771
6,375,447
6,489,770
6,659,097
3,716,055
288,579
773,643
87,134
3,967,842
301,838
837,859
90,299
4,353,048
329,813
943,278
96,506
4,559,021
348,658
1,008,048
99,638
4,690,310
359,323
1,073,743
101,395
4,786,609
373,189
1,112,686
102,962
4,862,747
381,699
1,141,577
103,748
4,982,853
392,919
1,175,641
107,685
1,981,886
1,145,389
677,603
45,451
397,452
24,883
628,335
513,712
61,570
52,723
331
208,162
6,977
30,750
160,315
10,120
2,083,881
1,245,315
745,510
49,670
423,148
26,986
631,726
520,682
59.540
51,150
354
206,840
7,187
30,402
158,779
10,472
2,194,813
1,337,217
797,492
54,116
456,574
29,035
643,957
533,918
56,821
52,801
417
213,640
6,590
31,522
164,004
11,524
2,242,431
1,361,365
790,372
60,529
479,930
30,536
656,518
544,962
55,016
56,096
443
224,548
7,292
31,800
173,495
11,961
2,321,356
1,418,819
827,291
63,964
496,246
31,320
676,346
560,622
57,282
57,983
459
226,190
7,432
31,998
174,571
12,189
2,394,923
1,495,502
879,552
67,591
516,520
31,839
668,634
549,072
59,138
59,948
475
230,787
5,934
32,818
179,048
12,987
2,456,786
1,546,816
904,581
72,431
537.131
32,673
680,745
560,046
57,759
62,447
493
229,225
5,874
32,602
177,870
12,879
2,551,751
1,614,307
948,496
75,713
556,382
33,717
701,992
578,641
59,142
63,691
518
235,452
4,826
33,669
182,514
14,444
295,192
2
2
0
41,596
17.303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
168,813
155,008
13,805
29,602
1,742
0
46,504
41,758
4,746
286,194
8
8
0
41,195
17,253
11,720
7,370
4,852
3,811
1,767
2,044
0
0
0
0
0
724
109
123
492
0
161,308
149,831
11,477
30,657
1,804
0
48,454
42,629
5,825
293,613
7
7
0
40,851
16,895
11,739
7,705
4,513
3,674
1,849
1,825
0
0
0
0
0
361
54
61
245
0
157,675
147,594
10,081
32,983
1,941
0
57,085
49,106
7,979
289,519
8
8
0
40,766
16,653
11,735
7,943
4,435
3,490
1,623
1,867
0
0
0
0
0
189
28
32
129
0
155,637
145,033
10,604
33,666
1,981
0
54,282
43,574
10,708
322,572
8
8
0
73,705
16,583
11,745
41,068
4,308
3,889
2,013
1,876
0
0
0
0
0
163
24
28
111
0
153,172
142,982
10,190
34,217
2,013
0
55,695
44,010
11,685
322,352
7
7
0
73,871
16,506
11,741
41,355
4,268
3,712
1,851
1,86!
0
0
0
0
0
152
23
26
103
0
151,500
141,195
10,305
34,187
2,012
0
56,676
44,321
12,355
323,145
7
7
0
72,899
16,456
11,732
40,509
4,202
3,794
1,847
1,947
0
0
0
0
0
98
15
17
67
0
150,312
139,986
10,326
34,142
2,009
0
57,009
43,384
13,625
334,715
7
7
0
72,896
16,435
11,729
40,554
4,179
3,845
1,832
2,013
0
0
0
0
0
72
11
12
49
0
155,364
144,335
11,029
34,820
2,039
0
56,972
42,892
14,080
4,865,412
506,246
494,064
12,182
554,260
551,513
2,747
650,779
633,209
17,570
3
0
0
0
3
329,559
258,800
16,369
54,390
0
5,197,838
536,879
523,225
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
413,502
316,400
21,591
75,511
0
5,722,645
537,446
522,498
14,948
646,459
643,465
2,994
834,517
804,204
30,313
0
0
0
6,015,365
553,196
537,287
15,909
718,085
714,844
3,241
911,435
877,863
33,572
1
0
0
0
571,340
412,700
34,323
124,317
0
627,402
447,938
39,435
140,029
0
6,224,771
569,038
552,670
16,368
738,581
735,088
3,493
938,484
903,531
34,953
0
0
0
0
0
645,084
455,276
40,936
148,873
0
6,375,447
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
662,565
462,600
42,628
157,337
0
6,489,770
589,203
571,517
17,686
757,106
752,607
4,499
975,815
938,898
36,917
0
0
0
0
0
678,156
471,390
43,835
162,930
0
6,659,097
590,903
572,856
18,047
768,641
763,890
4,751
995,815
957,584
38,231
0
0
0
0
0
686,037
471,000
44,931
170,106
0
547,486
360,476
68,572
100,269
18,169
588,413
376,574
71,651
121,409
18,779
644,456
413,770
73,081
137,632
19,974
673,297
428,202
74,090
150,428
20,577
689,656
439,219
74,629
154,892
20,916
703,379
446,771
77,016
158,375
21,217
709,560
449,496
78,074
160,622
21,368
731,235
467,572
79,272
162,345
22,046
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.
1998
1
1
1
6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.
A36
1.55
DomesticNonfinancialStatistics • December 2000
C O N S U M E R CREDIT 1
Millions of dollars, amounts outstanding, end of period
2000
Holder and type of credit
1997
1998
1999
Mar.
Apr.
May
June
July
Aug.
Seasonally adjusted
1 Total
2 Revolving
3 Nonrevolving 2
1,234,461
1,301,023
1,393,657
l,429,166 r
l,435,583 r
l,447,368 r
l,462,821 r
1,469,515
1,481,833
531,163
703,297
560,504
740,519
595.610
798,047
615,452 r
813,715 r
622,223 r
813,360 r
628,764 r
818,604 r
634,652
828,170 r
638,172
831,344
644,856
836,976
Not seasonally adjusted
1,264,103
1,331,742
1,426,151
l,415,965 r
l,423,396 r
l,434,251 r
l,454,035 r
1,462,042
1,483,787
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets 3
512,563
160,022
152,362
47,172
78,927
313,057
508,932
168,491
155,406
51,611
74,877
372,425
499,758
181.573
167,921
61,527
80.311
435.061
497,120
183,705
169,225r
58,968
72,907'
434,040
499,696
184,050
!71,038 r
59,628
72,973 r
436,011
502,030
187,610
173,471r
60,289
73,523 r
437,328
506,245
190,268
176,030r
60,951
73,500 r
447,041
505,314
194,438
178,034
61,188
71,951
451,117
518,787
196,555
180,679
61,426
73,024
453,316
By major type of credit4
11 Revolving
12
Commercial banks
13
Finance companies
14
Credit unions
15
Savings institutions
16
Nonfinancial business
1/
Pools of securitized assets 3
555,858
219,826
38,608
19,552
11,441
44,966
221,465
586,528
210,346
32,309
19,930
12,450
39,166
272,327
623,245
189.352
33.814
20,641
15.838
42,783
320,817
609.028 r
184,901
31,456
19,706r
14,975
37,430
320,560
615,354 r
188,691
31,928
19,851r
15,135
37,418
322,331
621,127 r
192,352
31,628
19,930r
15,295
37,766
324,156
627,909 r
194,793
33,063
20,172 r
15,455
37,098r
327,328
630,402
194,591
33,565
20,476
15,419
36,078
330,273
641,035
204,406
33,558
20,796
15,383
36,669
330,223
18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets 3
708,245
292,737
121,414
132,810
35,731
33,961
91,592
745,214
298,586
136,182
135,476
39,161
35,711
100,098
802,906
310,406
147.759
147,280
45.689
37.528
114.244
806,937 r
312,219
152,249
149,519r
43,993
35,477 r
113,480
808,042 r
311,005
152,122
151,187'
44,493
35,555 r
113,680
813,124 r
309,678
155,982
153,541r
44,994
35,757 r
113,172
826,126 r
311,452
157,205
155,858r
45,496
36,402 r
119,713
831,640
310,723
160,873
157,558
45,769
35,873
120,844
842,752
314,381
162,997
159,883
46,043
36,355
123,093
4 Total
5
6
/
8
9
10
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals, excluding loans secured by real estate. Data in this table also appear
in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front
cover.
2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.
1.56
3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF C O N S U M E R CREDIT 1
Percent per year except as noted
2000
Item
1997
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug.
INTEREST RATES
Commercial banks'
1 48-month new car
2 24-month personal
9.02
13.90
8.72
13.74
8.44
13.39
8.88
13.76
n.a.
n.a.
n.a.
n.a.
9.21
13.88
n.a.
n.a.
n.a.
n.a.
9.62
13.85
Credit card plan
3 All accounts
4 Accounts assessed interest
15.77
15.57
15.71
15.59
15.21
14.81
15.47
14.32
n.a.
n.a.
n.a.
n.a.
15.39
14.74
n.a.
n.a.
n.a.
n.a.
15.98
15.35
Auto finance
5 New car
6 Used car
7.12
13.27
6.30
12.64
6.66
12.60
7.34
13.27
6.76
13.45
6.38
13.52
6.51
13.47
6.40 r
13.58
6.55'
13.64
7.46
13.70
54.1
51.0
52.1
53.5
52.7
55.9
52.7
57.1
53.1
57.1
53.8
57.1
53.5
57.1
55.6 r
57.3
55.6'
57.2
55.7
57.2
92
99
92
99
92
99
92
98
93
99
93
98
93
99
92 r
99
92
100
92
100
18,077
12,281
19,083
12,691
19,880
13,642
20,206
13,697
20,395
13,666
20,542
13,871
20,621
14,132
20,349r
14,245'
20,406'
14,269'
20,664
14,166
companies
OTHER TERMS 3
Maturity (months)
1 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed (dollars)
11 New car
12 Used car
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
Flow of Funds
1.57
A37
FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1994
1995
1996
2000
1999
1998
Transaction category or sector
1997
Q4
QI
Q2
Q3
Q4
QL
Q2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . .
559.3
711.3
731.4
804.3
1,042.9
1,065.8
1,278.3
939.4
1,170.7
1,095.5
947.3
994.4
By sector and instrument
2 Federal government
3 Treasury securities
Budget agency securities and mortgages
4
155.9
155.7
.2
144.4
142.9
1.5
145.0
146.6
-1.6
23.1
23.2
-.1
-52.6
-54.6
2.0
-65.2
-77.4
12.2
-83.4
-81.9
-1.5
-98.5
-99.1
.6
-71.4
-71.5
.0
-31.5
-31.5
.0
-215.5
-213.5
-2.1
-414.0
-415.8
1.8
5 Nonfederal
6
7
8
9
10
11
1?
N
14
IS
16
17
1ft
19
20
?1
22
403.4
566.9
586.3
781.2
1,095.5
1,131.0
1,361.8
1.037.9
1,242.2
1,126.9
1,162.9
1,408.4
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
21.4
-35.9
23.3
75.2
34.0
160.5
183.2
-3.6
-21.3
2.2
124.9
18.1
-48.2
91.1
103.7
67.2
196.0
180.7
5.8
7.9
1.6
138.9
-.9
2.6
116.3
70.5
33.5
275.7
242.5
9.4
21.3
2.6
88.8
13.7
71.4
150.5
106.5
69.1
317.5
252.3
8.3
53.7
3.2
52.5
24.4
96.8
218.7
108.2
74.3
505.5
386.9
20.3
92.0
6.2
67.6
-43.0
92.8
193.2
107.5
101.4
609.2
444.1
26.9
129.6
8.6
69.9
58.3
92.1
274.0
86.0
148.0
572.8
411.8
35.5
122.0
3.6
130.5
-2.6
56.8
287.6
24.0
2.3
608.4
440.8
33.1
125.6
9.0
61.4
49.8
71.3
202.8
112.3
79.2
650.7
480.0
44.2
119.4
7.0
76.2
44.0
52.5
155.2
108.6
55.4
601.7
398.9
47.9
152.4
2.5
109.5
36.2
8.9
186.2
131.9
162.1
494.5
346.2
31.5
109.9
6.9
143.1
'116.9
34.0
153.8
159.7
144.6
667.6
500.6
36.6
118.5
11.9
131.8
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
313.4
136.3
128.7
3.3
4.4
-46.2
348.8
269.5
236.1
30.6
2.9
-51.5
347.6
245.5
157.0
83.8
4.8
-6.8
333.4
391.8
270.6
115.0
6.2
56.1
480.5
534.7
417.2
109.8
7.7
80.3
526.7
527.4
404.9
115.3
7.2
76.9
554.6
727.4
626.3
96.2
4.9
79.8
520.7
473.5
372.0
99.8
1.7
43.6
588.5
601.3
467.2
125.5
8.5
52.5
509.6
583.7
455.4
122.7
5.6
33.6
531.4
627.7
503.4
109.5
14.7
3.8
635.4
747.9
615.5
120.8
11.6
25.0
-13.9
-26.1
12.2
1.4
-1.4
78.5
13.5
57.1
8.5
-.5
88.4
11.3
67.0
9.1
1.0
71.8
3.7
61.4
8.5
— 1.8
43.3
7.8
34.8
6.7
-6.0
-25.6
-4.7
-21.5
9.8
-9.1
30.7
18.0
15.4
.9
-3.5
-24.5
-27.5
.2
5.6
-2.8
77.3
41.1
44.0
-6.6
-1.1
17.6
33.6
-2.7
2.3
-15.5
116.9
56.7
45.7
15.4
-.9
-10.5
10.9
-29.6
6.1
2.0
545.3
789.8
819.8
1,086.2
1,040.2
1,309.1
914.9
1,248.1
1,113.1
1,064.2
983.8
23 Foreign net borrowing in United States
Commercial paper
74
Bonds
75
7,6 Bank loans n.e.c
Other loans and advances
27
28 Total domestic plus foreign
876.1
Financial sectors
29 Total net borrowing by financial sectors
30
31
32
33
By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
34 Private
35
Open market paper
Corporate bonds
36
Bank loans n.e.c
37
38
Other loans and advances
39 Mortgages
40
41
42
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
468.4
453.9
545.8
653.7
1,073.9
1,295.7
1,228.8
995.3
1,064.2
1,063.4
618.3
842.9
287.5
176.9
115.4
-4.8
204.1
105.9
98.2
.0
231.5
90.4
141.1
.0
212.8
98.4
114.5
.0
470.9
278.3
192.6
.0
677.6
510.5
167.1
.0
589.5
193.0
396.6
.0
576.6
304.7
271.9
.0
651.6
407.1
244.5
.0
550.3
367.9
182.4
.0
249.2
104.9
144.3
.0
356.4
234.8
121.6
.0
180.9
40.5
121.8
-13.7
22.6
9.8
249.8
42.7
195.9
2.5
3.4
5.3
314.4
92.2
173.8
12.6
27.9
7.9
440.9
166.7
210.5
13.2
35.6
14.9
603.0
161.0
296.9
30.1
90.2
24.8
618.1
130.9
292.6
9.9
154.2
30.6
639.2
78.7
473.8
-6.7
73.3
20.1
418.8
57.3
254.8
11.0
107.9
-12.3
412.6
89.9
179.5
-5.9
139.8
9.4
513.0
479.0
-21.0
-55.6
107.5
3.2
369.2
130.9
166.5
.3
64.4
7.0
486.5
77.4
268.1
8.8
122.3
10.0
20.1
12.8
.2
.3
172.1
115.4
76.5
48.6
-11.5
10.2
.5
23.1
22.5
2.6
-.1
-.1
105.9
98.2
142.4
50.2
-2.2
4.5
-5.0
34.9
13.0
25.5
.1
1.1
90.4
141.1
150.8
45.9
4.1
11.9
-2.0
64.1
46.1
19.7
.1
.2
98.4
114.5
202.2
48.7
-4.6
39.6
8.1
80.7
72.9
52.2
.6
.7
278.3
192.6
321.4
43.0
1.6
62.7
7.2
40.7
65.3
88.6
.4
1.8
510.5
167.1
340.1
6.8
3.0
44.0
12.4
55.7
46.1
75.2
1.5
3.3
193.0
396.6
289.7
77.0
-4.6
25.6
-31.1
156.5
61.5
59.2
1.4
3.0
304.7
271.9
301.5
90.5
5.1
-19.7
-17.4
-66.2
107.0
51.9
2.8
1.1
407.1
244.5
220.5
-17.2
-6.1
7.9
16.9
27.9
54.1
5.8
3.3
-4.4
367.9
182.4
124.2
99.2
6.2
11.3
-37.3
250.6
72.4
40.6 .
-2.9
-.7
104.9
144.3
166.0
52.3
-3.0
11.5
44.4
-11.4
115.1
56.3
.9
-1.1
234.8
121.6
193.2
157.6
2.7
9.8
-.7
-47.4
A38
1.57
DomesticNonfinancialStatistics • December 2000
F U N D S R A I S E D I N U.S. C R E D I T M A R K E T S 1 — C o n t i n u e d
Billions of dollars; quarterly data at seasonally adjusted annual rates
1999
1998
Transaction category or sector
1994
1995
1996
1997
2000
1998
Q4
Ql
Q2
Q3
Q4
Ql
Q2
All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60
Open market paper
U.S, government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
1,013.8
1,243.8
1,365.6
1,529.8
2,160.1
2,335.9
2,537.8
1,910.2
2,312.3
2,176.5
1,682.6
1,826.7
35.7
448.1
-35.9
157.3
62.9
50.4
170.3
124.9
74.3
348.5
-48.2
344.1
114.7
70.1
201.3
138.9
102.6
376.5
2.6
357.0
92.1
62.5
283.6
88.8
184.1
235.9
71.4
422.4
128.2
102.8
332.4
52.5
193.1
418.3
96.8
550.4
145.0
158.5
530.3
67.6
83.2
612.4
92.8
464.3
127.1
246.4
639.8
69.9
155.1
506.1
92.1
763.1
80.1
217.8
593.0
130.5
27.2
478.1
56.8
542.6
40.6
107.5
596.2
61.4
180.7
580.1
71.3
426.3
99.8
217.9
660.0
76.2
556.6
518.9
52.5
131.5
55.2
147.3
604.9
109.5
223.7
33.6
8.9
398.4
147.7
225.7
501.5
143.1
205.1
-57.6
34.0
392.3
174.6
268.9
677.6
131.8
Funds raised through mutual funds and corporate equities
61 Total net issues
113.4
131.5
231.9
181.2
100.0
9.9
154.2
178.5
120.4
172.8
414.3
125.4
62 Corporate equities
63
Nonfinancial corporations
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares
12.8
-44.9
48.1
9.6
100.6
-16.0
-58.3
50.4
-8.1
147.4
-5.7
-69.5
82.8
-19.0
237.6
-83.9
-114.4
57.6
-27.1
265.1
-174.6
-267.0
101.2
-8.9
274.6
-215.6
-491.3
330.2
-54.5
225.5
-86.4
-52.1
-19.8
-14.5
240.6
-33.9
-338.4
284.4
20.2
212.4
-7.0
-128.4
121.7
-.3
127.5
.0
-55.0
71.3
-16.3
172.8
105.2
62.8
63.3
-20.8
309.0
-123.0
-248.0
135.0
-10.0
248.4
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.
Flow of Funds
1.58
A39
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1994
1995
1996
1997
2000
1999
1998
Transaction category or sector
1998
Q4
Ql
Q2
Q3
Q4
Ql
Q2
NET LENDING IN CREDIT MARKETS 2
1
Total net lending in credit markets
?
Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monetary authority
Commercial banking
U.S.-chartered banks
Foreign banking offices in United States
Bank holding companies
Banks in U.S.-affiliated areas
Savings institutions
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Money market mutual funds
Mutual funds
Closed-end funds
Government-sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
4
5
6
7
8
9
10
11
1?
N
14
15
16
17
18
19
20
21
??
73
24
75
26
27
78
29
30
31
3?
33
1,013.8
1,243.8
1,365.6
1,529.8
2,160.1
2,335.9
2,537.8
1,910.2
2,312.3
2,176.5
1,682.6
1,826.7
210.0
246.8
17.7
.6
-55.0
-27.4
132.3
698.8
31.5
163.4
148.1
11.2
.9
3.3
6.7
28.1
7.1
72.0
24.9
45.0
30.9
30.0
-7.1
-3.7
117.8
115.4
69.4
48.3
-24.0
-.7
-44.2
-12.1
-61.3
34.1
-8.8
4.7
-91.4
-.2
273.9
1,031.4
12.7
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
-8.3
100.0
21.5
20.2
33.6
86.5
52.5
10.5
86.7
98.2
120.6
49.9
-3.4
1.4
90.1
-15.7
80.5
128.7
-10.2
-4.3
-33.7
-7.4
414.4
878.1
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
69.6
22.5
-5.8
37.3
88.8
48.9
4.7
84.2
141.1
120.5
18.4
8.2
4.4
-15.7
13.6
17.1
31.8
-12.7
-2.1
.1
5.1
311.3
1,196.3
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
-25.0
104.8
25.2
19.5
63.8
87.5
80.9
-2.9
94.3
114.5
163.8
21.9
-9.1
20.2
14.9
47.4
131.8
-16.7
14.0
.1
134.5
13.5
254.2
1,760.6
21.1
305.2
312.0
-11.9
-.9
6.0
36.3
19.0
-12.8
76.9
20.4
57.8
71.5
244.0
124.8
4.5
261.7
192.6
281.7
51.9
3.2
-5.1
6.8
-1.0
-188.6
-375.6
44.5
.1
142.4
11.8
388.6
2,124.1
23.5
493.3
507.6
-17.6
-7.4
10.7
111.0
20.4
-13.5
79.0
67.6
108.3
51.4
345.7
106.3
4.5
415.2
167.1
317.2
75.8
6.0
-40.8
-210.3
-3.5
507.8
305.5
67.0
2.8
132.5
17.0
256.9
1,756.2
64.5
68.1
131.5
-53.1
-6.0
-4.4
111.0
30.9
-7.6
78.4
-19.7
57.5
76.0
215.7
97.4
3.1
189.1
396.6
272.1
85.3
-9.1
1.7
34.6
10.5
380.4
280.3
17.8
1.2
81.0
6.7
61.6
1,461.5
59.8
166.6
259.4
-102.5
.4
9.2
85.3
32.7
-8.4
68.2
26.7
86.6
25.1
-67.0
117.2
3.1
251.5
271.9
284.8
88.1
10.2
-2.2
-119.7
81.1
268.7
265.1
45.2
.8
-42.4
11.2
385.3
1,647.0
20.6
449.4
421.9
33.2
-12.4
6.6
58.1
27.5
-8.6
36.8
-14.4
32.0
40.0
224.8
-13.0
3.1
280.7
244.5
212.0
91.7
-12.1
-2.7
-22.2
-1.1
29.3
38.5
-13.0
1.4
2.4
-11.8
138.7
2,020.3
-42.2
548.7
457.7
42.0
42.6
6.3
20.2
18.8
-9.1
30.7
-9.4
54.0
58.2
354.5
-12.7
3.1
221.0
182.4
94.4
114.4
12.3
-7.0
-15.9
403.8
-104.3
-172.9
63.8
2.6
2.3
6.2
334.9
1,445.7
103.4
377.1
409.2
4.8
-42.2
5.4
50.2
39.9
-9.5
57.2
-14.0
46.1
55.3
208.8
-80.8
3.1
138.2
144.3
145.3
132.9
-6.0
-16.3
106.9
-36.3
263.4
180.7
38.5
2.8
41.4
8.2
185.6
1,369.5
-3.9
484.7
505.8
-29.9
3.5
5.4
72.9
40.7
-9.9
54.1
-13.6
.2
17.1
-156.2
55.0
3.1
215.1
121.6
158.7
145.5
5.5
-2.5
33.8
147.5
1,013.8
1,243.8
1,365.6
1,529.8
2,160.1
2,335.9
2,537.8
1,910.2
2,312.3
2,176.5
1,682.6
1,826.7
-5.8
.0
.7
52.9
89.8
-9.7
-39.9
19.6
40.5
78.2
12.8
100.6
120.0
-.1
35.5
257.4
2.6
17.8
43.1
273.2
8.8
2.2
.6
35.3
10.0
-12.8
96.6
65.6
141.2
110.5
-16.0
147.4
128.9
26.7
45.8
171.0
6.2
4.0
34.6
489.4
-6.3
-.5
.1
85.9
-51.6
15.7
97.2
114.0
145.4
41.4
-5.7
237.6
114.1
52.4
44.5
163.0
16.0
-8.6
-3.4
525.7
.7
-.5
.0
108.9
-19.7
41.2
97.1
122.5
155.9
120.9
-83.9
265.1
131.2
111.0
59.3
278.8
15.6
-56.3
-43.7
499.6
6.6
.0
.0
2.0
-32.3
47.4
152.4
92.1
287.2
91.3
-174.6
274.6
27.0
103.3
48.0
248.7
11.8
-48.0
-46.7
836.2
8.6
0
-2.3
-127.6
-115.2
53.2
298.3
83.6
289.4
-207.7
-215.6
225.5
-35.7
-19.3
68.9
282.6
8.0
-48.8
-16.3
530.5
-14.0
-4.0
.0
113.7
48.3
63.6
-74.8
18.0
221.3
258.0
-86.4
240.6
121.7
-62.2
55.4
204.5
-2.1
-32.0
-19.2
398.5
-5.4
.0
2.1
110.1
93.4
37.5
106.6
42.4
115.3
-26.1
-33.9
212.4
253.3
139.7
42.1
248.8
42.5
-25.9
4.1
1,393.1
-8.5
-4.0
2.0
69.4
-33.5
139.3
119.1
102.7
174.3
135.9
-7.0
127.5
216.9
18.9
48.1
266.7
-1.1
-34.3
-71.2
499.2
-7.0
-4.0
-4.1
52.7
-43.3
365.2
28.0
359.4
485.5
319.0
.0
172.8
137.0
277.8
57.6
294.6
22.5
-32.3
-2.2
502.2
1.5
.0
2.2
258.5
-75.8
-219.1
109.1
149.2
241.0
276.1
105.2
309.0
213.7
566.3
38.0
258.0
24.8
-40.4
-27.4
1,024.6
-8.8
-8.0
-2.3
-1.1
202.0
-61.1
132.2
108.5
48.2
134.8
-123.0
248.4
213.2
-138.6
44.3
240.8
24.7
-41.0
-28.7
879.9
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34
Net flows through credit markets
35
36
.37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
5?
53
54
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous
55
Total financial sources
2,102.9
2,739.7
2,942.6
3,333.6
4,086.9
3,395.8
3,986.7
4,662.0
4,072.6
5,157.9
4,897.2
3,691.2
56
57
58
59
60
61
Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous
-.2
43.0
-2.7
73.5
16.6
-119.2
-.5
25.1
-3.1
25.7
21.1
-180.9
-.9
59.6
-3.3
4.1
22.9
-88.1
-.6
107.4
-19.9
64.3
27.9
-82.0
-.7
-6.4
3.4
61.4
13.7
-54.3
-3.4
-142.5
-38.7
-18.1
12.8
54.1
-1.5
49.3
49.7
213.5
-9.1
-533.0
.6
96.1
-4.8
54.3
20.1
-289.9
.2
26.4
-7.0
77.8
1.5
-466.9
-6.3
93.9
-23.7
-217.3
-.7
-71.3
-1.8
179.0
24.4
550.0
10.0
-340.3
-6.2
-67.2
-4.1
-11.5
-.3
-250.2
62
63
64
Floats not included in assets ( —)
Federal government checkable deposits
Other checkable deposits
Trade credit
-4.8
-2.8
27.4
-6.0
-3.8
15.6
.5
-4.0
-21.2
-2.7
-3.9
-29.4
2.6
-3.1
-42.1
17.1
-1.8
-32.2
-2.1
-2.1
45.6
-27.0
-.9
-18.1
8.6
-.3
60.4
-9.2
.0
111.4
28.7
.6
2.7
-2.6
1.5
10.8
65
Total identified to sectors as assets
2,072.1
2,846.6
2,973.1
3,272.5
4,112.5
3,548.5
4,176.3
4,831.5
4,371.9
5,281.1
4,443.9
4,021.1
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.l and F.5. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares.
A40
DomesticNonfinancialStatistics • December 2000
1.59
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1998
Transaction category or sector
1995
1996
1997
1999
2000
1998
Ql
Q4
Q2
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
Bx sector and instrument
2 Federal government
Treasury securities
3
Budget agency securities and mortgages
4
5 Nonfederal
13,712.9
14,444.2
15,247.0
16,289.9
16,289.9
16,605.6
16,785.1
17,105.5
17,445.6
17,680.1
17,865.1
3,636.7
3,608.5
28.2
3,781.8
3,755.1
26.6
3,804.9
3,778.3
26.5
3,752.2
3,723.7
28.5
3,752.2
3,723.7
28.5
3,759.7
3,731.6
28.1
3,651.7
3,623.4
28.3
3,632.7
3,604.5
28.3
3,681.0
3,652.8
28.3
3,653.5
3,625.8
27.8
3,464.0
3,435.7
28.2
10,076.1
10,662.5
11,442.1
12,537.7
12,537.7
12,845.9
13,133.4
13,472.8
13,764.5
14,026.6
14,401.2
12
13
14
15
16
Bx instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
157.4
1,293.5
1,344.1
863.6
736.9
4,557.9
3,510.5
265.5
697.3
84.6
1,122.8
156.4
1,296.0
1,460.4
934.1
770.4
4,833.6
3,719.2
278.6
748.7
87.1
1,211.6
168.6
1,367.5
1,610.9
1,040.5
839.5
5,151.1
3,971.5
286.9
802.3
90.3
1,264.1
193.0
1,464.3
1.829.6
1,148.8
913.8
5,656.6
4,358.4
307.3
894.4
96.5
1,331.7
193.0
1,464.3
1,829.6
1,148.8
913.8
5,656.6
4,358.4
307.3
894.4
96.5
1,331.7
223.9
1,491.0
1,898.1
1,165.2
957.4
5,791.1
4,451.2
316.4
926.1
97.4
1,319.3
232.4
1,510.0
1,970.0
1,178.5
956.0
5,946.2
4,564.4
324.6
957.5
99.6
1,340.4
239.3
1,518.6
2,020.7
1,202.9
969.8
6,151.4
4,694.1
335.7
1,020.3
101.4
1,370.1
230.3
1,532.5
2,059.5
1,231.5
985.3
6,299.4
4,791.3
347.7
1,058.4
102.0
1,426.2
260.8
1,539.2
2,106.0
1,259.1
1,032.4
6,412.8
4,867.7
355.5
1,085.8
103.7
1,416.2
296.8
1,551.6
2,144.5
1,306.4
1,066.2
6,582.1
4,995.2
364.7
1,115.5
106.7
1,453.6
17
18
19
20
21
22
Bx borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
4,782.9
4,223.0
2,925.5
1,152.4
145.1
1,070.2
5,105.3
4,493.7
3,107.7
1,236.1
149.9
1,063.4
5,442.8
4,879.9
3,372.7
1,351.1
156.1
1,119.5
5,924.6
5,413.3
3.788.5
1,460.9
163.8
1,199.8
5,924.6
5,413.3
3,788.5
1,460.9
163.8
1,199.8
6,004.8
5,617.9
3,970.3
1,485.2
162.4
1,223.2
6,147.2
5,748.0
4,071.6
1,510.2
166.1
1,238.2
6,313.3
5,917.1
4,207.6
1,540.9
168.6
1,242.4
6,469.1
6,043.3
4,302.2
1,572.0
169.0
1,252.1
6,541.9
6,227.4
4,457.6
1,599.7
170.1
1,257.3
6,710.9
6,423.6
4,617.5
1,629.9
176.1
1,266.7
23 Foreign credit market debt held in
United States
453.7
542.2
608.0
651.4
651.4
659.2
652.7
672.9
676.9
704.6
698.9
24 Commercial paper
25
26 Bank loans n.e.c
27 Other loans and advances
56.2
299.4
34.6
63.6
67.5
366.3
43.7
64.7
65.1
427.7
52.1
63.0
72.9
462.5
58.9
57.2
72.9
462.5
58.9
57.2
77.2
466.3
59.1
56.5
70.1
466.4
60.5
55.8
81.8
477.4
58.8
55.0
89.2
476.7
59.4
51.7
101.6
488.1
63.3
51.7
101.2
480.7
64.8
52.1
14,166.5
14,986.4
15,855.0
16,941.3
16,941.3
17,264.7
17,437.8
17,778.5
18,122.5
18,384.7
18,564.0
6
7
8
y
10
n
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
29 Total credit market debt owed by
financial sectors
4,278.8
4,824.6
5,445.2
6,519.1
6,519.1
6,809.0
7,073.3
7,346.8
7,607.0
7,744.5
7,970.9
30
31
32
33
34
35
36
37
38
39
By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
2,376.8
806.5
1,570.3
.0
1,901.9
486.9
1,204.7
51.4
135.0
24.1
2,608.3
896.9
1,711.4
.0
2,216.3
579.1
1,378.4
64.0
162.9
31.9
2,821.1
995.3
1,825.8
.0
2,624.1
745.7
1,555.9
77.2
198.5
46.8
3,292.0
1,273.6
2,018.4
.0
3,227.1
906.7
1,852.8
107.2
288.7
71.6
3,292.0
1,273.6
2,018.4
.0
3,227.1
906.7
1,852.8
107.2
288.7
71.6
3,434.1
1,321.8
2,112.3
.0
3,374.9
926.4
1,968.6
104.1
299.1
76.6
3,580.7
1,398.0
2,182.7
.0
3,492.6
940.9
2,042.8
106.8
328.6
73.6
3,745.9
1,499.8
2,246.1
.0
3,601.0
963.4
2,091.1
105.2
365.4
75.9
3,884.0
1,591.7
2,292.3
.0
3,723.0
1,082.9
2,074.6
92.9
395.8
76.7
3,940.3
1,618.0
2,322.3
.0
3,804.2
1,115.7
2,114.2
91.4
404.4
78.5
4,032.0
1,676.7
2,355.4
.0
3,938.9
1,135.2
2,192.5
93.6
436.7
81.0
40
41
42
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations
102.6
148.0
115.0
.4
.5
806.5
1,570.3
712.5
29.3
483.9
16.5
44.6
248.6
113.6
150.0
140.5
.4
1.6
896.9
1,711.4
863.3
27.3
529.8
20.6
56.5
312.7
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,076.6
35.3
554.5
16.0
96.1
373.7
188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
597.5
17.7
158.8
414.4
188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
597.5
17.7
158.8
414.4
187.5
202.6
226.9
1.5
3.3
1,321.8
2,112.3
1,463.1
34.8
614.4
16.5
165.2
459.1
202.7
205.5
241.6
1.8
4.0
1,398.0
2,182.7
1,539.9
30.4
639.2
17.8
160.3
449.5
224.2
211.8
255.4
2.5
4.3
1,499.8
2,246.1
1,599.1
34.6
628.5
16.3
162.2
462.0
230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.3
1,632.0
25.3
659.9
17.8
165.1
506.6
242.2
221.4
266.9
2.6
3.0
1,618.0
2,322.3
1,665.8
36.4
670.7
17.1
167.9
510.1
265.9
229.3
280.0
2.9
2.7
1,676.7
2,355.4
1,716.0
36.2
712.7
17.8
170.4
505.1
All sectors
53 Total credit market debt, domestic and foreign .. .
54
55
56
57
58
59
60
61
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
18,445.3
19,811.0
21,300.2
23,460.4
23,460.4
24,073.7
24,511.1
25,125.3
25,729.5
26,129.2
26,534.9
700.4
6.013.6
1,293.5
2,848.1
949.6
935.4
4,581.9
1,122.8
803.0
6,390.0
1,296.0
3,205.1
1,041.7
998.0
4,865.5
1,211.6
979.4
6,626.0
1,367.5
3,594.5
1,169.8
1,101.0
5,197.9
1,264.1
1,172.6
7,044.3
1,464.3
4,144.9
1,314.9
1,259.6
5,728.2
1,331.7
1,172.6
7,044.3
1,464.3
4,144.9
1,314.9
1,259.6
5,728.2
1,331.7
1,227.6
7,193.8
1,491.0
4,333.0
1,328.3
1,313.0
5,867.7
1,319.3
1,243.3
7,232.4
1,510.0
4,479.2
1,345.7
1,340.3
6,019.8
1,340.4
1,284.5
7,378.6
1,518.6
4,589.1
1,366.9
1,390.1
6,227.3
1,370.1
1,402.4
7,565.0
1,532.5
4,610.8
1,383.8
1,432.7
6,376.1
1,426.2
1,478.1
7,593.8
1,539.2
4,708.3
1,413.7
1,488.5
6,491.3
1,416.2
1,533.3
7,496.0
1,551.6
4,817.7
1,464.7
1,555.0
6,663.1
1,453.6
1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.
Flow of Funds
1.60
A41
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES 1
Billions of dollars except as noted, end of period
1995
1996
1997
2000
1999
1998
Transaction category or sector
1998
Q4
Ql
Q2
Q3
Q4
Ql
Q2
CREDIT MARKET DEBT OUTSTANDING 2
1 Total credit market assets
2 Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
4
5
Nonfarm noncorporate business
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
10
Monetary authority
11
Commercial banking
U.S.-chartered banks
12
13
Foreign banking offices in United States
14
Bank holding companies
15
Banks in U.S.-affiliated areas
16
Savings institutions
17
Credit unions
18
Bank personal trusts and estates
19
Life insurance companies
20
Other insurance companies
21
Private pension funds
22
State and local government retirement funds
23
Money market mutual funds
24
Mutual funds
25
Closed-end funds
Government-sponsored enterprises
26
27
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
28
Finance companies
29
30
Mortgage companies
31
Real estate investment trusts (REITs)
32
Brokers and dealers
Funding corporations
33
18,445.3
19,811.0
21,300.2
23,460.4
23,460.4
24,073.7
24,511.1
25,125.3
25,729.5
26,129.2
26,534.9
2,905.5
1,944.3
280.4
42.3
638.6
207.5
1,531.1
13,801.1
380.8
3,520.1
3,056.1
412.6
18.0
33.4
913.3
263.0
239.7
1,587.5
468.7
633.1
531.0
545.5
771.3
96.4
750.0
1,570.3
653.4
526.2
33.0
26.0
183.4
108.4
3,031.3
2,118.3
270.2
38.0
604.8
200.2
1,926.6
14,652.9
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
232.0
1,657.0
491.2
627.3
568.2
634.3
820.2
101.1
807.9
1,711.4
773.9
544.5
41.2
30.4
167.7
122.0
3,004.7
2,106.4
257.5
35.9
605.0
205.5
2,257.3
15,832.7
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
207.0
1,751.1
515.3
646.8
632.0
721.9
901.1
98.3
902.2
1,825.8
937.7
566.4
32.1
50.6
182.6
164.7
3,108.2
2,061.4
271.5
35.9
739.4
219.1
2,539.8
17,593.3
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.8
324.2
194.1
1,828.0
535.7
704.7
703.6
965.9
1,025.9
102.8
1,163.9
2,018.4
1,219.4
618.4
35.3
45.5
189.4
165.2
3,108.2
2,061.4
271.5
35.9
739.4
219.1
2,539.8
17,593.3
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.8
324.2
194.1
1,828.0
535.7
704.7
703.6
965.9
1,025.9
102.8
1,163.9
2,018.4
1,219.4
618.4
35.3
45.5
189.4
165.2
3,208.2
2,133.5
266.1
36.6
772.1
223.3
2,608.3
18,033.8
466.0
4,338.4
3,782.9
487.8
25.0
42.7
990.8
330.2
192.2
1,853.5
530.8
719.0
722.6
1,036.2
1,050.8
103.6
1,203.1
2,112.3
1,280.1
639.9
33.0
45.9
211.4
174.1
3,277.3
2,172.2
273.3
36.9
794.8
225.0
2,621.3
18,387.5
485.1
4,383.4
3,847.6
465.7
25.1
45.0
1,011.4
341.0
190.1
1,869.6
537.5
740.7
728.9
1,001.8
1,083.7
104.3
1,268.4
2,182.7
1,352.7
660.9
35.6
45.3
162.9
201.4
3,343.4
2,235.9
288.4
37.1
781.9
260.7
2,718.1
18,803.0
489.3
4,488.3
3.944.3
475.3
22.0
46.7
1,030.8
348.5
188.0
1,880.4
533.9
748.7
738.9
1,049.7
1,083.0
105.1
1,340.2
2,246.1
1,409.8
678.2
32.5
44.7
167.0
200.1
3,474.9
2,353.9
300.7
37.5
782.8
258.0
2,678.0
19,318.6
478.1
4,643.9
4,078.9
484.1
32.7
48.3
1,033.4
351.7
185.7
1,886.0
531.6
762.2
753.4
1,147.8
1,073.1
105.9
1,399.5
2,292.3
1,435.3
713.3
35.6
42.9
158.6
288.4
3,418.7
2,304.6
293.0
38.1
782.9
259.6
2,765.9
19,685.1
501.9
4,725.0
4,171.3
482.0
22.1
49.6
1,044.5
360.0
183.3
1,901.5
528.0
773.7
767.2
1,217.1
1,053.0
106.7
1,426.4
2,322.3
1,463.9
747.0
34.1
38.8
201.1
289.6
3,459.0
2,319.1
305.2
38.8
795.8
261.6
2,809.7
20,004.6
505.1
4,847.4
4,295.4
478.1
23.0
51.0
1,061.7
372.9
180.8
1,913.9
524.6
773.8
771.5
1,159.4
1,070.9
107.4
1,481.7
2,355.4
1,505.4
782.2
35.5
38.2
188.2
328.5
18,445.3
19,811.0
21,300.2
23,460.4
23,460.4
24,073.7
24,511.1
25,125.3
25,729.5
26,129.2
26,534.9
63.7
10.2
18.2
418.8
290.7
1,229.1
2,279.7
476.9
741.3
660.0
1,852.8
305.7
566.2
5,812.7
1,698.0
107.6
803.0
5,838.0
53.7
9.7
18.3
521.7
240.8
1,244.8
2,377.0
590.9
886.7
701.5
2,342.4
358.1
610.6
6,548.4
1,812.1
123.6
871.7
6,231.3
48.9
9.2
18.3
619.7
219.4
1,286.1
2,474.1
713.4
1,042.5
822.4
2,989.4
469.1
665.0
7,817.1
1.943.3
139.2
942.5
6,571.9
60.1
9.2
18.3
639.0
189.0
1,333.4
2,626.5
805.5
1,329.7
913.7
3,610.5
572.3
718.3
8,912.7
1,970.3
151.0
1,001.0
7,133.9
60.1
9.2
18.3
639.0
189.0
1,333.4
2,626.5
805.5
1,329.7
913.7
3,610.5
572.3
718.3
8,912.7
1,970.3
151.0
1,001.0
7,133.9
53.6
8.2
18.3
667.4
182.0
1,310.5
2.637.6
804.3
1.411.7
980.3
3.758.1
552.7
735.9
9,064.9
1.973.9
158.2
1,012.5
7,131.6
50.9
8.2
18.8
694.9
207.1
1,353.1
2,644.6
809.0
1,393.5
970.8
4,049.1
589.3
749.8
9,479.5
2,038.1
160.6
1,059.8
7,310.8
52.1
7.2
19.3
712.3
198.9
1,353.8
2,665.9
837.5
1,444.9
999.3
3,931.5
593.2
756.2
9,150.5
2,098.4
165.3
998.3
7,318.7
50.1
6.2
18.3
725.8
203.2
1,484.8
2,671.2
936.1
1,578.8
1,085.4
4,553.4
665.9
783.9
9,999.4
2,152.6
166.4
1,116.6
7,638.2
49.4
6.2
18.8
790.4
165.6
1,392.9
2,729.2
966.5
1,666.0
1,155.8
4,864.5
803.7
796.9
10,227.4
2,179.6
180.3
1,135.2
7,851.6
46.5
4.2
18.1
790.2
219.5
1,410.7
2,740.5
987.4
1,627.1
1,186.2
4,740.7
770.8
802.8
10,139.0
2,233.3
178.0
1,085.0
8,059.6
41,617.9
45,354.2
50,091.7
55,454.8
55,454.8
56,535.3
58,099.0
58,428.7
61,565.7
63,109.3
63,574.5
22.1
8,495.7
3,671.6
21.4
10,255.8
3,876.6
21.1
13,201.3
4,151.1
21.6
15,427.8
4,400.8
21.6
15,427.8
4,400.8
20.7
15,919.1
4,460.5
20.8
17,060.4
4,523.0
21.3
16,214.9
4,582.8
21.4
19,576.3
4,643.5
21.4
20,231.8
4,695.1
21.5
19,298.5
4,764.9
-5.8
360.2
-9.0
107.4
62.4
-1,167.5
-6.7
437.0
-10.6
111.5
76.7
-1,630.7
-7.3
538.3
-32.2
175.8
92.3
-1,996.0
-8.0
548.2
-27.0
237.2
101.5
-2,539.2
-8.0
548.2
-27.0
237.2
101.5
-2,539.2
-8.4
560.5
-11.3
296.7
89.2
-2,755.0
-8.2
584.5
-10.6
308.2
110.3
-2,824.4
-8.2
591.1
-13.2
327.7
94.2
-3,133.2
-9.7
614.9
-25.5
269.3
94.5
-3,008.0
-10.2
659.7
-13.9
413.4
88.9
-3,149.6
-11.9
642.9
-11.5
408.8
101.1
-3,169.7
3.1
34.2
196.8
-1.6
30.1
174.6
-8.1
26.2
135.5
-3.9
23.1
94.5
-3.9
23.1
94.5
-7.2
18.9
56.3
-12.4
22.1
30.8
-10.2
14.5
44.7
-9.9
22.3
141.7
-6.5
18.7
92.6
-5.2
22.5
73.1
54,225.6
60,327.7
68,540.7
76,878.6
76,878.6
78,696.0
81,502.8
81,340.1
87,717.2
89,964.3
89,609.3
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Total credit market debt
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Mutual fund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade payables
Taxes payable
Investment in bank personal trusts
Miscellaneous
53 Total liabilities
Financial assets not included in liabilities ( + )
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
57
58
59
60
61
62
Liabilities not identified as assets ( - )
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
Floats not included in assets (—)
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Total identified to sectors as assets
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L. 1 and L.5. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares.
A42
2.10
Domestic Nonfinancial Statistics • December 2000
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
M o n t h l y data seasonally adjusted, and indexes 1 9 9 2 = 1 0 0 , except as noted
2000
Measure
1997
1998
1999
Jan.
Feb.
Mar.
Apr.
May
June r
Julyr
Aug.
Sept.p
1 Industrial production1
127.1
132.4
137.1
141.1
141.6
142.4
143.5
144.7
145.3
145.0
145.6
146.0
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry groupings
Manufacturing
119.6
121.1
115.1
132.1
115.3
139.0
123.7
125.4
116.2
142.7
118.8
146.5
126.5
128.0
116.9
148.9
122.1
154.8
129.7
131.6
118.8
154.2
123.7
160.5
130.1
131.8
118.7
155.0
124.8
161.2
130.3
132.0
118.0
156.9
125.1
163.1
131.0
132.8
118.6
158.1
125.3
165.0
131.2
133.1
118.8
158.8
125.1
168.1
131.6
134.0
119.4
160.1
124.3
169.1
131.7
134.3
119.0
161.7
123.7
168.0
131.7
134.5
119.1
162.2
122.9
169.9
132.1
135.0
120.1
161.8
123.4
169.9
130.1
136.4
142.3
146.7
147.2
148.4
149.3
150.3
151.0
151.0
151.3
151.8
82.4
80.9
79.8
80.7
80.7
81.1
81.3
81.5
81.6
81.3
81.3
81.2
10 Construction contracts3
144.2
161.3
177.5r
176.0
180.0r
194.0r
186.0
178.0r
186.0
184.0
181.0
181.0
11 Nonagricultural employment, total4
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
15
Service-producing
16 Personal income, total
17
Wages and salary disbursements
18
Manufacturing
19
Disposable personal income5
20 Retail sales5
120.3
101.2
98.3
99.6
126.5
175.1
171.3
144.6
172.5
169.8
123.4
102.7
98.8
99.8
130.0
186.5
184.6
152.3
182.7
178.4
126.2
102.3
97.0
97.8
133.8
196.6
196.9
157.4
191.9
194.6
127.9
104.1
97.4
98.2
135.5
203.3
204.3
161.1
197.4
205.5
128.0
103.9
97.2
98.0
135.7
204.4
205.2
161.6
198.3
208.3
128.5
104.3
97.3
97.9
136.2
206.0
206.4
162.0
199.8
209.3
128.9
104.3
97.3
98.0
136.8
207.2r
208.21
163.6r
200.6r
208.3
129.1
104.1
97.3
97.9
137.0
207.9r
208.4T
162.9r
201.3r
208.5
129.1
104.2
97.3
97.9
137.1
208.9
209.8
164.3
202.1
209.3
129.1
104.4
97.6
98.4
137.0
209.5
210.9
165.8
202.6
211.1
129.0
103.9
97.0
97.5
137.0
210.3
211.4
164.9
203.1
211.2
129.2
103.8
96.7
97.1
137.3
212.6
212.6
164.5
205.3
213.1
Prices6
21 Consumer (1982-84=100)
22 Producer finished goods (1982= 100)
160.5
131.8
163.0
130.7
166.6
133.0
168.8'
134.7
169.8r
136.0
171.2r
136.8
171.3'
136.7
171.5r
137.3r
172.4
138.4
172.8
138.3
172.8
138.1
173.7
139.2
2
3
4
5
6
7
8
9 Capacity utilization, manufacturing (percent)2. .
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision is described in an article in the
March 2000 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, U.S. Department of Commerce, and other sources.
2.11
3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from the US. Department of Labor, Employment and Earnings. Series
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
T h o u s a n d s of persons; monthly data seasonally adjusted
2000
Category
1997
1998
1999
Feb.
Mar.
Apr.
May
June
Julyr
Aug.
Sept.p
HOUSEHOLD SURVEY DATA 1
1
7
3
4
5
Civilian labor force2
Nonagricultural industries'
Agriculture
Unemployment
Number
Rate (percent of civilian labor force)
136,297
137,673
139,368
141,165
140,867
141,230
140,489
140,762
140,399
140,742
140,639
126,159
3.399
128,085
3,378
130,207
3,281
131,954
3.408
131,801
3,359
132,351
3,355
131,417
3,298
131,858
3,321
131,450
3,299
131,569
3,344
131,821
3,340
6.739
4.9
6,210
4.5
5,880
4.2
5,804
4.1
5.708
4.1
5,524
3.9
5,774
4.1
5,583
4.0
5,650
4.0
5,829
4.1
5,477
3.9
122,690
125,826
128,616
130,482
131,009
131,419
131,590
131,647
131,607
131,516
131,768
18.675
596
5.691
6.408
28.614
7.109
36.040
19.557
18,772
590
5,985
6,600
29,127
7,407
37,526
19,819
18,431
535
6,273
6,792
29,792
7,632
39,000
20,161
18,473
533
6,618
6.937
29,989
7,624
39,914
20,394
18,476
536
6,726
6,953
30,060
7,621
40,090
20,547
18,492
539
6,694
6,970
30,252
7,610
40,195
20,667
18,479
539
6,666
6,962
30,112
7,600
40,220
21,012
18,493
539
6,668
6,985
30,171
7,588
40,401
20,802
18,548
538
6,670
7,010
30,246
7,586
40,403
20,606
18,431
537
6,675
6,941
30,250
7,606
40,578
20,498
18,365
536
6,705
7,046
30,254
7,622
40,778
20,462
ESTABLISHMENT SURVEY D A T A
6 Nonagricultural payroll employment4
7
8
9
10
11
12
13
14
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annual data are averages of monthly figures. By definition, seasonality does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
4. Includes all full- and part-time employees who worked during, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
Selected Measures
2.12
A43
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
2000
1999
2000
1999
1999
2000
Series
Q4
Qi
Q2r
Q3
Output (1992=100)
Q4
Ql
Q2
Q3
Capacity (percent of 1992 output)
Q4
Ql
Q2r
Q3
Capacity utilization rate (percent)2
1 Total industry
139.5
141.7
144.5
145.5
172.3
173.8
175.5
177.1
81.0
81.5
82.3
2 Manufacturing
144.9
147.4
150.2
151.4
180.6
182.4
184.4
186.3
80.3
80.8
81.5
81.3
Primary processing3
Advanced processing4
125.4
155.2
126.0
158.7
125.8
163.1
124.1
165.8
149.8
196.1
150.4
198.7
150.9
201.6
151.2
204.3
83.7
79.1
83.8
79.9
83.4
80.9
82.1
81.2
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
177.4
120.6
130.9
129.1
133.3
239.9
419.0
154.7
182.5
121.3
132.4
130.9
134.3
252.3
458.1
155.2
188.9
119.1
133.1
132.4
134.0
263.4
514.3
158.0
191.7
114.9
129.4
126.3
133.0
270.1
555.8
149.4
221.0
148.4
150.1
152.5
147.2
295.8
514.6
185.0
224.8
149.0
150.7
153.5
147.5
306.1
537.2
185.7
229.1
149.1
151.5
154.4
148.0
315.2
570.7
186.7
233.2
149.0
152.2
155.3
148.6
323.5
607.0
187.7
80.3
81.2
87.2
84.6
90.5
81.1
81.4
83.6
81.2
81.4
87.9
85.3
91.0
82.4
85.3
83.6
82.5
79.9
87.9
85.7
90.5
83.6
90.1
84.6
82.2
77.2
85.0
81.3
89.5
83.5
91.6
79.6
89.9
88.0
87.2
88.0
125.8
125.2
124.5
123.9
71.5
70.3
70.0
71.0
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
113.4
111.4
117.9
121.8
132.3
114.1
113.7
111.3
117.0
121.7
134.0
115.8
113.3
109.7
117.2
120.3
131.3
117.9
113.1
105.6
113.1
121.3
124.2
117.2
140.3
131.8
136.1
151.0
139.6
123.1
140.5
131.9
136.6
151.4
140.8
123.4
140.6
131.9
136.7
151.7
141.9
123.6
140.6
131.9
136.5
152.1
143.0
123.7
80.9
84.5
86.6
80.7
94.8
92.7
80.9
84.4
85.6
80.4
95.2
93.9
80.6
83.2
85.8
79.3
92.5
95.4
80.4
80.0
82.9
79.7
86.9
94.8
99.5
113.2
116.5
100.4
113.6
115.5
102.1
117.5
120.4
102.4
117.3
120.1
120.2
128.2
126.1
119.8
128.6
126.6
119.3
129.0
127.1
118.8
129.4
127.7
82.8
88.3
92.4
83.8
88.3
91.2
85.5
91.1
94.7
86.1
90.7
94.0
1973
1975
Previous cycle5
High
Low
High
3
4
20 Mining
71 Utilities
22
Electric
Low
Latest cycle6
High
Low
2000
1999
Sept.
82.2
Apr.
May
Juner
July1"
Aug.
Sept.p
82.2
Capacity utilization rate (percent)2
1 Total industry
89.2
72.6
87.3
71.1
85.4
78.1
80.6
82.0
82.4
82.5
82.1
82.2
2 Manufacturing
88.5
70.5
86.9
69.0
85.7
76.6
79.7
81.3
81.5
81.6
81.3
81.3
81.2
91.2
87.2
68.2
71.8
88.1
86.7
66.2
70.4
88.9
84.2
77.7
76.1
82.8
78.7
83.8
80.5
83.3
81.0
83.2
81.1
82.4
81.1
81.9
81.2
81.9
81.2
89.2
88.7
100.2
105.8
90.8
68.9
61.2
65.9
66.6
59.8
87.7
87.9
94.2
95.8
91.1
63.9
60.8
45.1
37.0
60.1
84.6
93.6
92.7
95.2
89.3
73.1
75.5
73,7
71.8
74.2
80.0
81.0
85.8
83.0
89.3
82.1
81.0
88.5
86.1
91.5
82.6
80.1
87.8
85.5
90.7
82.7
78.5
87.3
85.5
89.3
82.2
78.2
85.3
81.0
90.6
82.3
76.2
84.8
81.7
88.6
82.1
77.1
84.9
81.4
89.4
96.0
89.2
93.4
74.3
64.7
51.3
93.2
89.4
95.0
64.0
71.6
45.5
85.4
84.0
89.1
72.3
75.0
55.9
81.6
79.8
84.1
83.4
88.7
83.9
83.6
90.5
85.4
83.7
91.2
84.7
83.5
92.2
77.0
83.5
91.2
81.9
83.4
91.4
79.8
78.4
67.6
81.9
66.6
87.3
79.2
73.1
69.8
69.2
71.1
72.3
71.0
69.8
80.5
82.4
84.5
79.3
92.3
95.8
80.5
82.7
86.7
79.2
91.8
95.6
80.5
81.3
83.1
79.0
85.9
94.5
80.3
78.9
82.6
79.9
88.1
95.0
80.5
79.9
82.9
80.3
86.5
94.8
85.7
92.3
95.9
86.3
91.9
95.3
86.3
88.4
91.6
86.4
91.5
95.0
85.7
92.1
95.5
3
4
5
6
7
8
9
10
11
12
13
14
IS
16
17
18
19
Primary processing3
Advanced processing4
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
20 Mining
21 Utilities
22 Electric
87.8
91.4
97.1
87.6
102.0
96.7
71.7
60.0
69.2
69.7
50.6
81.1
87.5
91.2
96.1
84.6
90.9
90.0
76.4
72.3
80.6
69.9
63.4
66.8
87.3
90.4
93.5
86.2
97.0
88.5
80.7
77.7
85.0
79.3
74.8
85.1
79.9
84.1
86.4
77.8
90.5
93.3
80.8
84.4
86.2
79.3
93.4
94.8
94.3
96.2
99.0
88.2
82.9
82.7
96.0
89.1
88.2
80.3
75.9
78.9
88.0
92.6
95.0
87.0
83.4
87.1
81.8
92.0
95.2
84.7
89.2
92.9
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision is described in an article in the
March 2000 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
A44
2.13
Domestic Nonfinancial Statistics • December 2000
INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1992
proportion
1999
2000
1999
avg.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June'
July'
Aug.
Sept. p
Index (1992 = 100)
MAJOR MARKETS
1 Total index
100.0
137.1
138.1
139.1
139.4
140.1
141.1
141.6
142.4
143.5
144.7
145.3
145.0
145.6
146.0
2 Products
Final products
3
Consumer goods, total
4
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
Autos, consumer
8
Trucks, consumer
10
Auto parts and allied goods . . . .
11
Other
12
Appliances, televisions, and air
conditioners
13
Carpeting and furniture
14
Miscellaneous home goods
15
Nondurable consumer goods
Foods and tobacco
16
17
Clothing
18
Chemical products
19
Paper products
Energy
20
21
Fuels
22
Residential utilities
60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5
126.5
128.0
116.9
152.6
144.7
151.8
102.6
202.4
133.9
158.6
127.6
129.1
117.1
153.5
145.5
152.8
105.5
201.9
134.4
159.7
128.5
130.2
118.2
157.4
147.9
155.1
103.9
207.8
136.7
165.0
128.0
129.8
154.4
146.2
154.3
107.2
203.6
133.8
160.7
128.5
130.3
118.1
155.7
144.4
148.7
99.8
199.0
137.1
164.9
129.7
131.6
118.8
158.9
149.1
155.0
105.4
206.3
139.6
166.6
130.1
131.8
118.7
156.4
145.4
150.7
105.0
198.3
136.9
165.4
130.3
132.0
118.0
156.8
146.0
151.9
103.1
202.3
136.6
165.5
131.0
132.8
118.6
159.1
148.7
155.8
107.4
206.2
137.6
167.5
131.2
133.1
118.8
156.9
146.8
154.0
106.2
203.8
135.7
165.1
131.6
134.0
119.4
158.4
149.3
157.2
105.5
210.5
137.2
165.6
131.7
134.3
119.0
153.5
139.6
139.5
100.3
181.4
137.5
165.5
131.7
134.5
119.1
152.9
142.0
145.6
104.3
189.6
135.5
161.8
132.1
135.0
120.1
155.3
144.2
147.2
103.6
193.3
138.3
164.4
1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1
324.3
121.7
114.7
108.7
107.3
90.6
121.8
102.3
114.0
111.3
115.0
326.3
124.1
114.4
108.7
106.2
89.9
120.9
104.7
117.6
112.0
119.7
363.1
124.8
114.8
109.3
106.8
89.4
123.1
106.3
114.5
112.4
114.9
348.4
117.4
115.0
109.1
107.3
90.6
126.0
105.1
106.7
110.1
104.3
357.6
123.0
116.7
109.5
107.4
89.1
126.5
103.1
112.0
111.7
111.6
361.6
126.9
116.6
109.7
107.6
89.3
125.8
104.3
113.0
108.4
114.6
362.8
122.6
116.6
110.0
107.9
89.6
125.1
104.5
114.8
111.5
115.8
367.3
122.6
115.9
109.1
107.8
89.2
125.8
103.0
108.8
114.8
105.2
373.3
125.0
116.5
109.4
108.3
89.5
124.2
103.3
111.1
112.3
109.9
367.1
122.4
115.3
110.0
107.8
89.3
124.6
104.1
117.2
113.3
118.5
375.6
122.7
114.3
110.5
107.9
86.8
125.2
106.9
118.8
113.4
120.8
356.0
127.5
115.0
110.9
108.7
87.1
126.0
107.7
116.0
112.8
116.9
354.6
120.4
113.5
111.2
107.8
85.8
128.2
107.6
119.5
114.8
121.2
374.3
122.8
112.7
111.8
108.4
84.9
130.0
107.6
120.4
114.5
122.6
23
24
25
26
27
28
30
31
32
33
Equipment
Business equipment
Information processing and related
Computer and office equipment
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
17.2
13.2
5.4
1.1
4.0
2.5
1.2
1.3
3.3
.6
.2
148.9
171.6
248.6
840.1
135.3
126.9
131.4
131.4
74.4
106.8
155.2
150.2
173.7
261.3
926.9
133.9
124.0
132.0
126.4
73.6
111.3
144.4
151.2
174.8
265.6
950.5
134.9
122.3
133.4
125.1
73.7
115.7
142.6
151.4
175.0
266.7
970.0
134.6
121.2
134.2
127.5
73.0
121.3
139.3
151.8
175.5
270.1
985.6
135.0
118.5
127.8
128.1
72.4
124.3
138.3
154.2
179.4
277.9
1,015.3
138.4
119.9
134.3
126.8
70.6
125.5
135.4
155.0
180.6
281.2
1,059.5
140.1
117.6
134.0
128.6
69.7
129.9
129.6
156.9
183.0
285.7
1,093.5
140.0
118.7
133.9
136.4
69.8
130.6
129.3
158.1
185.0
290.3
1,126.1
140.1
118.7
136.9
140.9
69.3
129.0
123.4
158.8
185.7
295.7
1,162.3
140.4
116.2
135.7
137.7
69.3
135.0
118.2
160.1
187.2
297.1
1,194.2
139.8
118.0
133.8
144.8
70.5
134.0
118.5
161.7
188.6
304.1
1,224.3
140.9
115.0
122.2
143.2
72.0
140.9
110.0
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.2
5.3
8.9
122.1
133.4
115.3
122.6
134.1
115.8
123.2
135.4
115.9
122.4
134.3
115.2
123.1
134.9
116.0
123.7
136.4
116.1
124.8
137.5
117.2
125.1
139.0
116.9
125.3
139.2
117.1
125.1
137.4
117.7
124.3
136.8
116.8
123.7
136.9
115.8
122.9
135.5
115.4
123.4
135.9
115.9
39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
9.7
6.3
3.3
154.8
198.9
150.7
360.9
131.3
121.8
114.6
101.0
117.0
117.3
113.5
101.7
99.2
107.0
155.7
202.3
156.0
371.4
131.2
122.1
114.7
100.3
118.6
117.7
112.5
101.8
99.6
106.1
156.8
203.4
153.7
377.5
131.7
123.5
117.4
102.3
118.5
122.0
114.9
101.5
98.8
106.5
158.8
206.7
154.8
386.8
133.4
125.6
119.1
103.3
119.3
125.1
114.9
101.6
100.1
104.1
159.7
208.8
155.0
394.9
134.0
126.3
118.7
100.9
118.5
124.2
116.8
101.4
99.5
104.8
160.5
211.7
156.0
404.9
134.8
126.2
117.0
99.3
117.9
122.1
114.8
101.2
98.3
106.8
161.2
213.1
153.1
418.0
134.1
124.2
117.6
101.9
116.6
124.5
112.7
100.5
96.7
108.2
163.1
217.5
154.7
435.4
134.7
126.3
116.8
102.7
118.3
121.5
113.3
100.6
98.0
105.5
165.0
220.6
152.8
453.2
134.6
126.9
116.6
100.7
119.3
121.5
112.3
102.5
100.4
106.6
168.1
227.0
160.5
472.6
135.2
126.9
116.7
100.2
117.4
122.8
112.2
102.8
100.5
107.1
169.1
229.2
155.1
490.6
135.0
126.3
116.6
101.7
119.2
121.9
111.6
102.6
100.7
106.0
168.0
229.5
149.4
502.4
134.6
124.2
114.3
96.1
114.7
119.4
112.7
100.8
99.9
102.1
169.9
232.4
158.0
508.9
133.8
123.7
114.0
96.4
113.4
120.7
110.2
102.6
100.5
106.6
169.9
232.6
154.6
518.5
133.0
123.9
114.0
97.0
113.3
120.2
110.9
102.5
100.2
106.8
97.1
95.1
137.0
136.4
138.0
137.2
138.9
138.3
139.3
138.7
140.2
139.5
141.0
140.4
141.6
141.1
142.4
141.8
143.5
143.0
144.7
144.0
145.4
144.8
145.5
145.1
146.0
145.3
146.3
145.8
98.2
27.4
26.2
131.1
115.0
117.3
131.5
115.2
117.1
132.4
116.3
118.7
132.7
115.6
118.8
133.2
116.4
118.8
134.1
116.9
119.5
134.4
117.0
119.1
135.0
116.2
119.0
136.0
116.6
119.5
137.0
116.9
119.0
137.4
117.4
119.5
137.0
117.8
119.3
137.4
117.6
119.1
137.7
118.6
120.1
12.0
176.2
178.5
179.5
179.7
181.1
184.5
186.0
188.7
190.5
191.5
193.4
196.6
197.6
198.6
12.1
29.8
143.8
172.0
143.6
173.0
144.0
174.7
143.7
177.4
143.8
178.6
146.8
179.8
146.9
181.0
148.4
183.5
149.4
185.5
149.2
189.6
149.9
191.0
150.6
190.3
150.9
192.1
150.8
192.2/
y
2y
37 Materials
38
Durable goods materials
Durable consumer parts
39
40
Equipment parts
41
Other
Basic metal materials
42
43
Nondurable goods materials
44
Textile materials
Paper materials
45
46
Chemical materials
47
Other
Energy materials
48
Primary energy
49
50
Converted fuel materials
117.6
162.2
161.8
189.7
190.3
311.6
308.1
1,255.9 1,288.8
141.0
143.8
112.4
113.6
121.4
123.1
135.7
144.9
67.5
70.3
143.8
137.5
107.0
108.5
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Total excluding computer and office
equipment
54 Consumer goods excluding autos and trucks .
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A45
Indexes and Gross Value1—Continued
Monthly data seasonally adjusted
Group
1992
proportion
SICcode
1999
avg.
Feb.
Sept.
Mar.
Apr.
May
Juner
Julyr
Aug.
Sept
Index (1992 = 100)
MAJOR INDUSTRIES
100.0
137.1
138.1
139.1
139.4
140.1
141.1
141.6
142.4
143.5
144.7
145.3
145.0
145.6
146.0
85.4
26.5
58.9
142.3
123.3
151.8
142.9
123.6
153.1
144.2
124.8
154.5
145.0
125.6
155.2
145.6
125.9
155.9
146.7
126.0
157.5
147.2
125.9
158.4
148.4
126.1
160.1
149.3
126.3
161.5
150.3
125.6
163.3
151.0
125.6
164.4
151.0
124.5
165.0
151.3
123.8
165.9
151.8
123.9
166.5
" ' 24
25
45.0
2.0
1.4
172.8
121.6
125.5
175.0
119.7
127.9
176.5
120.5
127.0
177.4
119.8
125.2
178.4
121.4
128.6
181.0
122.1
126.9
181.8
121.2
126.8
184.6
120.5
126.3
186.8
120.8
126.4
189.2
119.4
128.1
190.8
117.0
127.0
190.7
116.5
129.0
191.9
113.5
127.9
192.5
114.8
128.2
32
33
331,2
331PT
333-6,9
34
2.1
3.1
1.7
.1
1.4
5.0
130.5
126.6
123.2
113.3
130.9
128.7
129.6
128.3
125.9
112.4
131.4
128.4
131.2
129.0
124.9
121.8
134.0
128.8
132.4
131.1
130.7
124.0
131.7
129.7
131.4
132.8
131.7
124.2
134.1
129.0
130.9
132.8
130.8
123.1
135.2
130.8
131.7
130.9
129.1
118.7
133.2
130.4
132.7
133.6
132.9
121.1
134.5
130.6
131.9
133.8
132.7
124.1
135.3
131.0
132.2
133.0
132.1
123.9
134.2
131.4
132.3
132.4
132.4
124.6
132.4
130.6
132.6
129.6
125.6
122.3
134.5
131.2
133.3
129.0
126.8
119.6
131.6
130.7
133.1
129.5
126.6
119.6
133.0
130.7
35
8.0
230.1
235.5
238.3
239.7
241.8
247.7
252.6
256.7
260.5
263.5
266.2
268.0
270.2
272.2
1,549.7
548.5
116.5
144.3
128.4
1,591.6
553.1
120.0
153.7
133.9
1,634.2
565.7
117.4
150.1
134.9
59 Total index
60 Manufacturing
61 Primary processing
62 Advanced processing
63
64
65
66
357
36
37
371
371PT
1.8
7.3
9.5
4.9
2.6
1,061.4
390.2
122.4
151.0
137.8
1,167.5
402.1
123.1
155.6
139.4
1.196.6
412.6
122.3
155.7
140.7
1,222.8
418.1
121.8
155.8
141.0
1,244.6
426.4
120.4
152.7
135.0
1,284.5
443.5
121.7
156.6
141.0
1,342.2
455.6
119.6
153.4
137.7
1,389.6
475.2
120.9
155.6
138.1
1,428.4
494.8
120.7
156.2
142.1
1,467.7
516.3
121.7
159.4
140.5
1,509.0
532.0
122.5
158.4
142.7
79
80
Durable goods
Lumber and products
Furniture and fixtures
Stone, clay, and glass
products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products . .
Industrial machinery and
equipment
Computer and office
equipment
Electrical machinery
Transportation equipment. . .
Motor vehicles and parts .
Autos and light trucks .
Aerospace and
miscellaneous
transportation
equipment
Instruments
Miscellaneous
372-6,9
38
39
4.6
5.4
1.3
94.9
116.5
124.7
92.2
117.2
125.1
90.6
118.3
125.0
89.5
118.9
125.0
89.7
119.7
126.4
88.6
118.4
126.9
87.5
117.3
125.5
88.0
117.4
124.8
87.0
117.3
125.2
86.1
117.4
124.5
88.4
117.9
124.0
89.7
119.0
125.6
88.0
118.9
124.3
86.3
118.8
124.2
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing . . . .
Chemicals and products . . . .
Petroleum products
Rubber and plastic products .
Leather and products
"20
21
22
23
26
27
28
29
30
31
40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1.4
3.5
.3
111.8
110.1
94.3
110.9
90.7
116.2
104.4
117.5
114.7
137.7
69.8
111.8
109.6
90.9
110.8
89.0
117.2
104.6
117.4
114.6
139.3
69.5
113.0
110.1
91.9
112.7
89.1
118.0
106.0
119.8
114.5
138.9
68.2
113.6
110.3
93.1
111.4
89.1
118.1
105.7
122.7
112.8
139.3
67.7
113.7
110.0
94.7
110.1
89.1
117.7
105.3
122.9
114.9
141.4
65.4
113.5
109.8
96.7
111.5
89.0
117.1
105.3
121.6
113.2
142.2
68.1
113.8
110.7
94.5
110.8
89.7
116.5
105.7
122.4
115.6
141.2
66.2
113.6
111.1
91.4
111.6
89.5
117.3
105.9
121.2
118.7
140.5
64.6
113.5
111.6
92.7
111.3
90.1
117.8
105.4
120.2
117.1
141.6
63.7
113.2
111.0
92.4
108.8
88.9
115.5
106.0
120.3
118.4
140.4
64.9
113.2
111.1
90.9
109.1
86.8
118.5
105.3
120.3
118.2
141.0
63.1
113.3
112.0
92.9
107.2
87.5
113.5
106.3
120.0
116.9
142.6
63.5
112.9
110.8
93.4
104.1
85.7
112.7
105.5
121.5
117.5
141.2
63.1
113.2
111.0
95.2
105.5
84.5
113.1
105.7
122.3
117.3
140.3
62.4
10
12
13
14
6.9
.5
1.0
4.8
.6
98.0
97.1
108.1
92.5
124.4
98.3
91.4
109.4
93.0
125.5
99.2
94.2
108.8
94.0
126.3
99.7
94.5
110.0
94.5
125.0
99.5
95.2
109.5
94.6
122.4
99.7
95.5
106.3
95.7
120.8
100.0
94.1
101.9
96.2
127.5
101.3
92.7
109.3
96.0
133.0
101.2
93.4
112.0
95.9
128.8
102.3
96.3
110.1
98.0
124.5
102.8
94.7
114.4
98.2
124.4
102.7
94.1
110.8
98.8
122.5
102.7
93.8
109.8
99.0
122.6
101.7
94.4
107.5
98.0
121.9
491.493PT
492.493PT
7.7
6.2
1.6
115.6
118.2
104.8
117.7
119.8
108.5
115.2
116.9
107.9
110.9
115.8
88.2
113.5
116.9
98.1
114.6
116.0
108.4
115.3
116.0
112.6
110.8
114.4
94.4
114.9
117.9
101.2
119.0
122.0
105.7
118.7
121.3
107.2
114.3
116.8
102.9
118.4
121.3
105.4
119.3
122.1
106.6
80.5
141.7
142.3
143.6
144.5
145.2
146.2
146.9
148.0
149.0
149.8
150.6
151.5
151.3
152.0
83.6
135.3
135.3
136.5
137.1
137.6
138.5
138.7
139.7
140.5
141.2
141.8
141.6
141.8
142.1
1,043.7
1,093.0
1,144.2
1,182.2
1,228.6
1,256.8
1,288.5
67
68
69
70
71
72
73
74
75
76
77
78
92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
96 Stone and earth minerals
97 Utilities
98 Electric
99 Gas
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding
computer and office
equipment
102 Computers, communications
equipment, and
semiconductors
103 Manufacturing excluding
computers and
semiconductors
104 Manufacturing excluding
computers, communications
equipment and
semiconductors
5.9
794.1
843.0
863.9
887.7
908.5
952.4
994.7
81.1
121.6
121.7
122.6
122.9
123.1
123.6
123.4
123.8
123.9
124.1
124.1
123.7
123.7
123.7
79.5
119.3
119.3
120.1
120.4
120.6
120.9
120.7
121.0
121.0
121.0
121.1
120.5
120.4
120.4
Gross value (billions of 1992 dollars, annual rates)
Major Markets
105 Products, total
2,001.9
2,726.1
2,740.2 2,762.6
2,740.0
2,751.5 2,781.7
2,791.9
2,795.8
2,811.3
2,813.9
2,826.3
2,811.5 2,814.2
2,826.3
106 Final
1,552.1
2.101.6
2,112.5
2,132.5
2,115.8
2,122.4
2,147.5
2,152.5
2,155.2
2,168.6
2,172.3
2,189.1
2,178.9
2,185.9
2,194.9
107 Consumer goods
108 Equipment
109 Intermediate
1,049.6
502.5
449.9
1,294.9
808.3
623.3
1,297.0
817.5
626.4
1,311.7
822.5
628.9
1,294.7
823.4
623.0
1,301.5
822.9
627.9
1,309.9
840.3
633.0
1,309.9
845.6
638.1
1,302.9
856.0
639.3
1,308.9
863.5
641.5
1,309.9
866.4
640.3
1,319.8
873.4
636.1
1,307.4
876.3
631.6
1,310.8
880.0
627.5
1,321.3
877.9
630.6
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision is described in an article in the
March 2000 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Standard industrial classification.
A46
2.14
Domestic Nonfinancial Statistics • December 2000
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1999
item
2000
1999
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July r
Aug.
Private residential r ;al estate activity (thousands of units except as noted)
NEW UNITS
1 Permits authorized
2
One-family
3
Two-family or more
4 Started
One-family
6
Two-family or more
/ Under construction at end of period1
8
One-family
9
Two-family or more
10 Completed
11
One-family
12
Two-family or more
13 Mobile homes shipped
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period1
Price of units sold
of dollars)2
16 Median
17 Average
1,441
1,062
379
1,474
1,134
340
847
555
292
1,400
1,116
284
354
1,612
1,188
425
1,617
1,271
346
971
659
312
1,474
1,160
315
374
1,664
1,247
417
1,667
1,335
332
993
679
314
1,636
1,307
329
348
1,678
1,238
440
1,663
1,344
319
1,022
708
314
1.653
1,345
308
316
804
287
886
300
907
326
146.0
176.2
152.5
181.9
4,382
121.8
150.5
328
1.025
710
315
1,675
1,340
335
304
1,762
1,317
445
1,744
1,361
383
1,033
712
321
1,599
1,296
303
307
1,661
1,223
438
1,822
1,324
498
1,041
712
329
1,732
1,382
350
291
1,597
1,238
359
1,630
1,327
303
1,031
706
325
1,728
1,375
353
287
1,559
1,164
395
1,652
1,310
342
1,029
703
326
1,660
1,354
306
271
1,511
1,150
361
1,591
1,258
333
1,023
697
326
1,705
1,377
328
265
1,528
1,127
401
1,571
1,227
344
1,024
696
328
1,545
1,222
323
262
1,511
1,117
394
1,527
1,201
326
1,021
691
330
1,539
1,224
315
251
1,486
1,140
346
1,525
1,249
276
1,014
690
324
1,619
1,274
345
249
895
317
916
320
927
321
905
309
947
321
865
305
875
308
824
309
921
303
893
303
160.0
195.8
172.9
212.4
165.0
203.0
163.0
200.1
162.3
199.6
165.7
205.3
163.1
207.5
165.0
200.1
160.0
196.0
166.1
197.1
165.0
203.0
4,970
5,197
5,150
5,140
4,450
4,760
5,200
4,880
5,090
5,310
4,820
5,280
128.4
159.1
133.3
168.3
133.2
168.9
133.7
168.8
132.2
168.9
133.7
168.1
134.7
171.5
136.1
173.3
137.6
176.0
140.2
178.9
143.3
177.7
143.2
183.0
1,683
1,266
417
1,769
1,441
(thousands
EXISTING UNITS (one-family)
18 Number sold
Price of units sold
of dollars)2
19 Median
20 Average
(thousands
Value of new construction (millions of dollars) 3
CONSTRUCTION
21 Total put in place
656,084
710,104
765,719
776,476
791,698
806,099
816,012
829,517
816,156 r
811,816
798,860
783,468
794,517
22 Private
23
Residential
24
Nonresidential
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other
501,426
289,101
212,325
36,696
86,151
37,193
52,287
550,983
314,058
236,925
40,464
95,753
39,607
61,101
592,037
348,584
243,454
35,016
103,759
41,279
63,400
596,942
353,854
243,088
32,244
107,305
42,095
61,444
605,802
358,223
247,579
33,262
107,187
43,392
63,738
614,584
365,149
249,435
33,947
107,961
43,350
64,177
629,590
368,745
260,845
38,538
115,440
45,553
61,314
637,743
372,118
265,625
39,030
116,030
45,808
64,757
629,49 LR
368,948 r
260,543 r
38,670 r
115,042 r
44,136 r
62,695 r
629,820
367,653
262,167
39,814
113,381
45,540
63,432
624,383
363,756
260,627
39,951
112,834
44,559
63,283
613,831
354,982
258,849
41,731
112,616
45,076
59,426
619,269
355,666
263,603
41,095
114,056
45,224
63,228
29 Public
30
Military
31
Highway
32
Conservation and development
Other
33
154,657
2,561
43,886
5,708
102,502
159,121
2,538
48,339
5,421
102,823
173,682
2,122
54,447
6,002
111,110
179,534
1,944
56,547
6,585
114,458
185,895
2,332
60,218
7,001
116,344
191,515
1,782
63,368
6,223
120,142
186,422
3,011
53,145
6,975
123,291
191,774
2,249
59,007
6,494
124,024
186,665 r
2,180 r
55,923
5,840 r
122,722 r
181,995
2,246
51,966
5,363
122,420
174,477
2,157
48,148
5,832
118,340
169,637
2,092
48,540
4,708
114,297
175,248
2,359
48,310
5,534
119,045
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable with data for
previous periods because of changes by the Bureau of the Census in its estimating techniques.
For a description of these changes, see Construction Reports (C-30-76-5), issued by the
Census Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are
private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are
published by the National Association of Realtors. All back and current figures are available
from the originating agency. Permit authorizations are those reported to the Census Bureau
from 19,000 jurisdictions beginning in 1994.
Selected Measures A113
2.15
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 3 months earlier
(annual rate)
Change from 12
months earlier
Item
1999
1999
Sept.
Change from 1 month earlier
2000
2000
2000
Sept.
Dec.
Index
level,
Sept.
20001
Mar.
June
Sept.
May
.1
July
Aug.
Sept.
•5R
.2
-.1
.5
173.7
.1
.5
.1
.2
.0
,3r
.2
-2.9
.2
-.1
.3
.2
3.8
.3
.5
.1
168.9
130.6
182.3
145.1
203.5
.R
.0
.0
-.7
.1
.1
-.2
-.7
-.2
.1
.0
.9
.4
3.7
.4
.2
139.2
137.1
100.6
153.6
138.4
.9
,l r
.3
.2
-.2
-.1
.7
.0
132.1
137.0
-2.7
.4
-1.8
-4.5
.6
-1.3
3.9
8.1
.3
97.6
134.3
142.6
June
CONSUMER PRICES 2
(1982-84=100)
1
All items
7 Food
Energy items
4 All items less food and energy
5
Commodities
6
Services
2.6
3.5
2.4
6.1 R
2.6
2.8
2.2
10.2
2.0
1.0
2.5
2.6
15.4
2.6
.3
3.5
2.2
7.8
1.8
-.6
3.1
1.7
50.5
3.4r
.3
4.7r
2.7
6.6
2.2r
.0
3.0r
3.9
3.5
2.7
1.7
3.0
.5
-1.9
.2
.0
,3r
3.1
1.0
13.8
2.9
.0
3.3
.3
17.2
1.3
1.2
.9
-2.0
5.9
1.1
1.2
7.9
3.6
51.8
.8
.9
1.8
1.8
5.7
.8
1.5
2.6
-1.4
11.4
2.4
1.4
-,2r
— .2'
,3r
.2'
2.1
.6
4.8
2.3
3.6
2.1
9.5
4.2
2.8
2.7
3.4
.3
-1.2
53.4
.9
-2.5
40.8
2.5
-3.6
-27.9
26.2
21.5
84.9
9.9
-11.1
106.7
-10.5
-13.3
42.6
-10.7
5.6
.2
-.2
.3
PRODUCER PRICES
(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10
Other consumer goods
11
Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.
.R
-.1
.R
- 1.4r
8.8r
-.2'
,7r
— ,4r
5.8r
-.1
-2.9r
15.4r
— 1.5r
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
A48
2.16
Domestic Nonfinancial Statistics • December 2000
GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1999
Account
1997
1998
2000
1999
Q2
Q3
Q4
Ql
Q2 R
GROSS DOMESTIC PRODUCT
1
Total
8,318.4
8,790.2
9,299.2
9,191.5
9,340.9
9,559.7
9,752.7
9,945.7
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
5,529.3
642.5
1,641.6
3.245.2
5.850.9
693.9
1,707.6
3.449.3
6,268.7
761.3
1,845.5
3,661.9
6,213.2
756.3
1,825.3
3,631.5
6,319.9
767.2
1,860.0
3,692.7
6,446.2
787.6
1,910.2
3,748.5
6,621.7
826.3
1,963.9
3,831.6
6,706.3
814.3
1,997.6
3,894.4
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
1,390.5
1,327.7
999.4
255.8
743.6
328.2
1.549.9
1,472.9
1,107.5
283.2
824.3
365.4
1,650.1
1,606.8
1.203.1
285.6
917.4
403.8
1,607.9
1,593.4
1,188.0
283.7
904.3
405.4
1,659.1
1,622.4
1,216.8
281.2
935.6
405.6
1,723.7
1,651.0
1,242.2
290.4
951.8
408.8
1,755.7
1,725.8
1,308.5
308.9
999.6
417.3
1,852.6
1,780.5
1,359.2
315.1
1,044.1
421.3
62.9
60.0
77.0
76.4
43.3
43.6
14.5
13.4
36.7
42.0
72.7
71.8
29.9
32.4
72.0
72.2
6
7
8
9
10
11
12
13
Change in business inventories
Nonfarm
14
15
16
Net exports of goods and services
Exports
Imports
-89.3
966.4
1,055.8
-151.5
966.0
1,117.5
-254.0
990.2
1,244.2
-240.4
973.0
1,213.4
-280.5
999.5
1,280.0
-299.1
1,031.0
1,330.1
-335.2
1,051.9
1,387.1
-355.4
1,092.9
1,448.3
17
18
19
Government consumption expenditures and gross investment
Federal
State and local
1,487.9
538.2
949.7
1,540.9
540.6
1,000.3
1.634.4
568.6
1,065.8
1,610.9
558.3
1,052.6
1,642.4
570.4
1,072.1
1,688.8
591.6
1,097.3
1,710.4
580.1
1,130.4
1,742.2
604.5
1,137.7
20
21
22
23
24
25
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
8.255.5
3,082.5
1.436.2
1,646.4
4,442.1
730.9
8,713.2
3,239.3
1,532.3
1,707.1
4,673.0
800.9
9,255.9
3,467.0
1,651.1
1,815.8
4,934.6
854.3
9,177.0
3,436.7
1,635.9
1,800.8
4,891.2
849.1
9,304.2
3,490.6
1,669.4
1,821.1
4,965.2
848.5
9,486.9
3,566.0
1,701.8
1,864.1
5,050.3
870.7
9,722.8
3,680.3
1,773.7
1,906.6
5,135.2
907.4
9,873.7
3,734.1
1,809.6
1,924.5
5,231.4
908.2
26
27
28
Change in business inventories
Durable goods
Nondurable goods
62.9
33.1
29.8
77.0
45.8
31.2
43.3
27.2
16.1
14.5
5.0
9.5
36.7
27.6
9.1
72.7
47.5
25.2
29.9
20.7
9.2
72.0
48.3
23.7
8,159.5
8,515.7
8,875.8
8,783.2
8,905.8
9,084.1
9,191.8
9,318.9
MEMO
29
Total GDP in chained 1996 dollars
NATIONAL INCOME
30
Total
6,618.4
7,038.1
7,469.7
7,392.3
7,493.1
7,680.7
7,833.5
7,983.2
31
32
33
34
35
36
37
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
4,651.3
3.886.0
664.3
3,221.7
765.3
289.9
475.4
4,984.2
4,192.8
692.7
3,500.1
791.4
305.9
485.5
5,299.8
4,475.1
724.4
3,750.7
824.6
323.6
501.0
5,255.4
4,435.5
720.3
3,715.2
819.9
321.2
498.7
5,340.9
4,512.2
727.5
3,784.7
828.7
325.9
502.8
5,421.1
4,583.5
734.5
3,849.0
837.7
330.3
507.4
5,512.2
4,660.4
749.9
3,910.5
851.8
337.8
514.0
5,603.5
4,740.1
760.2
3,980.0
863.3
342.9
520.5
38
39
40
Proprietors' income'
Business and professional'
Farm 1
581.2
551.5
29.7
620.7
595.2
25.4
663.5
638.2
25.3
660.4
631.4
29.0
659.7
644.2
15.5
689.6
657.9
31.7
693.9
674.8
19.1
709.5
688.1
21.5
41
Rental income of persons 2
128.3
135.4
143.4
145.7
136.6
146.2
145.6
140.8
42
43
44
45
Corporate profits'
Profits before tax 3
Inventory valuation adjustment
Capital consumption adjustment
833.8
792.4
8.4
32.9
815.0
758.2
17.0
39.9
856.0
823.0
-9.1
42.1
836.8
804.5
-8.9
41.2
842.0
819.0
-19.7
42.7
893.2
870.7
-19.2
41.6
936.3
920.7
-25.0
40.6
963.6
942.5
— 13.6
34.7
46
Net interest
423.9
482.7
507.1
494.1
513.8
530.6
545.4
565.9
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
Selected Measures
2.17
A49
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1999
Account
1997
1998
2000
1999
Q2
Q4
Q3
Q2r
Ql
PERSONAL INCOME AND SAVING
1 Total personal income
6,937.0
7,391.0
7,789.6
7,729.7
7,828.5
7,972.3
8,105.8
8,242.1
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
Distributive industries
6
Service industries
7
Government and government enterprises
3,888.9
975.1
718.4
879.6
1,369.9
664.3
4,190.7
1,038.6
756.6
949.1
1,510.3
692.7
4,470.0
1,089.2
782.4
1,020.3
1,636.0
724.4
4,430.4
1,081.6
777.4
1,009.9
1,618.6
720.3
4,507.0
1,097.8
789.0
1,029.9
1,651.8
727.5
4,578.3
1,111.2
795.1
1,049.4
1,683.2
734.5
4,660.4
1,130.9
802.8
1,070.9
1,708.6
749.9
4,740.1
1,147.1
813.1
1,095.7
1,737.2
760.2
475.4
581.2
551.5
29.7
128.3
334.9
864.0
962.2
565.8
485.5
620.7
595.2
25.4
135.4
351.1
940.8
983.0
578.0
501.0
663.5
638.2
25.3
143.4
370.3
963.7
1,016.2
588.0
498.7
660.4
631.4
29.0
145.7
366.8
951.3
1,012.2
586.1
502.8
659.7
644.2
15.5
136.6
373.5
969.4
1,020.3
589.7
507.4
689.6
657.9
31.7
146.2
380.2
989.0
1,027.4
592.8
514.0
693.9
674.8
19.1
145.6
386.9
1,011.6
1,046.9
607.9
520.5
709.5
688.1
21.5
140.8
392.6
1,031.3
1,066.1
624.3
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income1
Business and professional'
Farm'
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
297.9
316.2
338.5
335.8
341.0
345.9
353.4
358.8
6,937.0
7,391.0
7,789.6
7,729.7
7,828.5
7,972.3
8,105.8
8,242.1
968.8
1,070.9
1,152.0
1,133.4
1,164.0
1,197.3
1,239.3
1,277.2
20 EQUALS: Disposable personal income
5,968.2
6,320.0
6,637.7
6,596.3
6,664.5
6,775.0
6,866.5
6,964.9
21
LESS: Personal outlays
5,715.3
6,054.7
6,490.1
6,432.8
6,543.3
6,674.1
6,855.6
6,944.3
22 EQUALS: Personal saving
252.9
265.4
147.6
163.6
121.1
101.0
30,434.4
20,230.9
21,838.0
31,469.5
20,985.4
22,672.0
32,511.9
21,900.4
23,191.0
32,220.0
21,791.0
23,133.0
32,586.0
22,004.4
23,203.0
33,153.5
22,266.4
23,404.0
33,485.6
22,635.5
23,472.0
33,874.7
22,757.7
23,639.0
4.2
4.2
2.2
2.5
1.8
1.5
.2
.3
27 Gross saving
1,502.3
1,654.4
1,717.6
1,691.7
1,716.8
1,746.3
1,777.0
1,844.5
28 Gross private saving
1,343.7
1,375.7
1,343.5
1,338.5
1,321.1
1,331.4
1,279.2
1,328.8
252.9
261.3
8.4
265.4
218.9
17.0
147.6
229.4
-9.1
163.6
218.7
-8.9
121.1
214.0
-19.7
101.0
241.7
-19.2
262.7
-25.0
20.6
278.5
-13.6
581.5
250.9
624.3
265.1
676.9
284.5
670.7
280.3
687.7
293.1
694.8
288.7
711.5
294.1
731.1
298.7
158.6
33.4
86.8
-53.3
125.2
94.2
31.0
278.7
137.4
88.4
49.0
141.3
99.5
41.7
374.1
217.3
92.8
124.4
156.8
106.8
50.0
353.3
209.5
92.0
117.5
143.7
105.8
38.0
395.7
240.6
93.4
147.3
155.1
107.7
47.4
414.9
238.4
95.0
143.3
176.6
109.9
66.6
497.7
333.0
97.2
235.8
164.7
112.7
52.0
515.7
339.9
98.9
240.9
175.8
115.6
60.1
1,532.1
1,629.6
1,645.6
1,614.9
1,627.3
1,678.5
1,699.3
1,771.9
1,390.5
264.6
-123.1
1,549.9
278.8
-199.1
1,650.1
308.7
-313.2
1,607.9
303.5
-296.5
1,659.1
308.0
-339.8
1,723.7
324.4
-369.6
1,755.7
334.2
-390.7
1,852.6
331.9
-412.5
29.7
-24.8
-71.9
-76.8
-89.5
-67.8
-77.7
-72.5
19
LESS: Personal tax and nontax payments
11.0
20.6
MEMO
Per capita (chained 1996 dollars)
Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
23
26 Saving rate (percent)
GROSS SAVING
29 Personal saving
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment
3?
Capital consumption allowances
Corporate
33
34
35
36
37
38
39
40
4)
Gross government saving
Consumption of fixed capital
Current surplus or deficit (—), national accounts
State and local
Consumption of fixed capital
Current surplus or deficit ( - ) , national accounts
Gross investment
42 Gross private domestic investment
4 3 Gross government investment
4 4 Net foreign investment
45 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
11.0
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A50
3.10
International Statistics • December 2000
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1999
Item credits or debits
1 Balance on current account
Balance on goods and services
?
3
Exports
Imports
4
5
Income, net
Investment, net
6
Direct
7
8
Portfolio
9
Compensation of employees
Unilateral current transfers, net
10
11 Change in U.S. government assets other than official
reserve assets, net (increase, —)
-140.540
-105,932
936,937
-1,042,869
6,186
11,050
71,935
-60.885
-4,864
-40,794
2000
1999
1998
1997
Q2
Q3
Q4
Ql
Q2
-217.138
-166,898
932,977
-1.099,875
-6,211
-1,036
67,728
-68,764
-5,175
-44,029
-78,982
-63,300
234,297
-297.597
-4.145
-2,813
14,698
-17,511
-1,332
-11,537
-89,649
-72,718
241,969
-314,687
-5,535
-4,193
15,701
-19,894
-1,342
-11,396
-96,223
-76,280
249,653
-325,933
-5,683
-4,319
16,275
-20,594
-1,364
-14.260
-101,505
-85,117
255,977
-341,094
-4.364
-2.987
17,068
-20,055
-1,377
-12,024
-106,138
-264.971
956,242
-1,221,213
-18,483
-13,102
62,704
-75,806
-5,381
-48,025
-331,479
-89,259
265,133
-354,392
-4.543
-3.145
18,421
-21,566
-1,398
-12.336
68
-422
2,751
-392
-686
3,711
-131
-572
-1,010
0
-350
-3,575
2,915
-6.783
0
-147
-5,119
-1,517
8,747
0
10
5,484
3,253
1,159
0
-190
1,413
-64
1,951
0
-184
2,268
-133
1,569
0
-178
1,800
-53
-554
0
-180
-237
-137
2,020
0
-180
2,328
-128
-487,998
-141,118
-122.888
-118,976
-105,016
-328,231
-35,572
-10,612
-135,995
-146,052
-441,685
-69,862
-92,328
-128,594
-150,901
-171,609
-41,786
-25,734
-71,131
-32,958
-124,174
-11,259
-27,943
-41,420
-43,552
-120,162
-45,304
-24,428
-17,150
-33,280
-178.273
-55,511
-52,563
-27,236
-42,963
-75,096
14,861
-26,112
-26,350
-37,495
22 Change in foreign official assets in United States (increase, +)
7.3
U.S. Treasury securities
Other U.S. government obligations
24
25
Other U.S. government liabilities3
Other U.S. liabilities reported by U.S. banks 3
26
Other foreign official assets
27
18.876
-6,690
4,529
-1,041
22,286
-208
-20,127
-9,921
6,332
-3,550
-9,501
-3,487
42,864
12,177
20,350
-3,255
12,692
900
-1,096
-6,708
5,792
-1,099
1.436
-517
12,191
12,963
1,835
-760
-2,032
185
27,495
5,122
6.730
89
14,427
1,127
22,015
16,198
8,107
-644
-2,577
931
5,905
-4,000
10,334
-772
-561
904
28 Change in foreign private assets in United States (increase, +)
79
U.S. bank-reported liabilities 2
30
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
31
37
U.S. currency flows
33
Foreign purchases of other U.S. securities, net
Foreign direct investments in United States, net
34
738,086
149,026
113,921
146,433
24,782
197,892
106,032
502,362
39,769
-7,001
48,581
16,622
218,075
186,316
710,700
67,403
34,298
-20,464
22,407
331,523
275,533
273,104
37,151
13.663
-5,407
3,057
80.838
143,802
182,019
24,585
-8,085
9,639
4,697
95,620
55,563
157,072
19.618
792
-17,191
12,213
92,250
49,390
214,520
-8,824
58,061
-9,248
-6,847
132,416
48.962
216,831
48,660
21,597
-20,661
989
86,547
79,699
350
-127,832
637
69,702
-3,500
11,602
-127,832
69,702
11,602
165
-22,349
-1,511
-20,838
171
18,177
-9,739
27,916
-3,993
30.531
5.738
24.793
166
43,762
5,724
38,038
163
-43,113
-2,505
-40.608
12 Change in U.S. official reserve assets (increase, —)
13
Gold
Special drawing rights (SDRs)
14
Reserve position in International Monetary Fund
15
Foreign currencies
16
17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims 3
19
Nonbank-reported claims
70
U.S. purchases of foreign securities, net
U.S. direct investments abroad, net
21
35 Capital account transactions, net 5
36 Discrepancy
37
Due to seasonal adjustment
Before seasonal adjustment
38
MEMO
Changes in official assets
39 U.S. official reserve assets (increase, —)
40 Foreign official assets in United States, excluding line 25
(increase, + )
41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
-1,010
-6,783
8,747
1,159
1,951
1.569
-554
2,020
19,917
-16,577
46,119
3
12,951
27,406
22,659
6.677
12,124
-11,531
1,331
1,632
-783
-1,673
6,109
1,922
t. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 3 8 ^ t l .
2. Reporting banks included all types of depository institutions as well as some brokers
and dealers.
3. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
4. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
5. Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics
3.11
A51
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
2000
Item
1997
1998
1999
Feb.
Mar.
Apr.
June
May
Julyr
Aug."
1 Goods and services, balance
2
Merchandise
Services
3
-105,932
-196,665
90,733
-166,898
-246,854
79,956
-264,971
-345,559
80,588
-27,481
-34,641
7,160
-30,370
-37,148
6,778
-29,637
-36,894
7,257
-29,794
-36,475
6,681
-29,846
-36,862
7,016
-31,692
-38,523
-6,831
-29,440
-36,408
6,968
4 Goods and services, exports
Merchandise
5
Services
6
936,937
679,702
257,235
932,977
670,324
262,653
956,242
684,358
271,884
85,312
60,894
24,418
86,975
62,513
24,462
87,268
62,566
24,702
86,846
62,749
24,097
90,991
66,468
24,523
89,799
65,096
24,703
93,022
67,963
25,059
7 Goods and services, imports
Merchandise
8
Services
9
1,042,869
876,367
166,502
1,099,875
917,178
182,697
1,221,213
1,029,917
191,296
-112,793
-95,535
-17,258
-117,345
-99,661
-17,684
-116,905
-99,460
-17,445
-116,640
-99,224
-17,416
-120,837
-103,330
-17,507
-121,492
-103,620
-17,872
-122,462
-104,371
-18,091
1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
U.S. RESERVE ASSETS
Millions of dollars, end of period
2000
Asset
1 Total
2 Gold stock, including Exchange
Stabilization Fund'
3 Special drawing rights2'3
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
1997
1998
1999
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.p
69,954
81,755
71,516
70,789
66,587
67,160
67,957
66,516
65,333
66,256
65,257
11,050
10,027
11,041
10,603
11,089
10,336
11,048
10,335
11,048
10,122
11,048
10,310
11,048
10,444
11,046
10,257
11,046
10,371
11,046
10,316
11,046
10,169
18,071
30,809
24,111
36,001
17,950
32,182
17,871
31,535
15,403
30,014
15,373
30,429
15,428
31,037
15,083
30,130
13,798
30,118
13,685
31,209
13,528
30,514
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.
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.
3.13
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
2000
Asset
1997
1998
1999
Mar.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
May
June
July
Aug.
Sept.
Oct.p
457
167
71
125
142
110
104
76
78
139
115
620,885
10,763
607,574
10,343
632,482
9,933
641,830
9,711
632,216
9,711
623,553
9,711
627,081
9,688
624,177
9,688
628,001
9,674
611,641
9,620
595,591
9,565
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
Apr.
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.
A52
3.15
International Statistics • December 2000
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
2000
Item
1998
1999
Mar.
Feb.
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States*
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
By area
Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
May
June
July
Aug."
759,928
806,288
812,353
828,947
834,154
826,302
836,075
848,298
849,722
125,883
134,177
138,817
156.177
130,268
156,995
136,240
164,781
137,724
157,607
135,802
148,820
136,129
157,190
141,186
160,093
137,242
159,781
432.127
6.074
61,667
422,266
6,111
82,917
430,806
6,191
88,093
430,237
5,734
91,955
436,640
5,770
96,413
435,235
5,808
100,637
433,823
5,740
103,193
433,184
5,180
108,655
433,633
5,213
113,853
256.026
10.552c
79.503
400,631
10,059
3,157r
244,805
12,503c
73.518
463,673
7,523
4,266r
248,792
13,195c
71,180
466,087
7,976
5,123r
251,571
13,683c
77,014
474,355
7,979
4,345r
249,685
13,338c
72,407
486,133
8,024
4,567r
250,306
13,027°
69,508
482,134
7,709
3,618r
253,416
13,542c
71,220
485,424
7,849
4,624r
258,923
13,728L
73,616
487,490
8,656
5,884r
255,820
12,992c
76,317
490,210
8,706
5,677r
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;
3.16
Apr.
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1994 benchmark survey of foreign portfolio investment in the United
States.
Reported by Banks in the United States1
Millions of dollars, end of period
1999
Item
1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers2
1996
103,383
66.018
22,467
43,551
10.978
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
1997
117,524
83,038
28,661
54,377
8,191
2000
1998
101,125
78,162
45,985
32,177
20,718
Sept.
Dec.
Mar.
June
100,112
67,032
32,713
34,319
11,534
88,537
67,365
34,426
32,939
20,826
85,649
63,492
32,967
30,525
21,753
78,603
62,631
31,224
31,407
18,802
2. Assets owned by customers of the reporting bank located in the United States that
represent claims on foreigners held by reporting banks for the accounts of the domestic
customers.
Nonbank-Reported
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
A53
Reported by Banks in the United States1
M i l l i o n s of d o l l a r s , e n d of p e r i o d
2000
Item
1997
1998
1999
Feb.
Mar. r
Apr.
May
July
June
Aug.?
B Y HOLDER AND TYPE OF LIABILITY
1
Total, all foreigners
2 Banks' own liabilities
3
Demand deposits
4
Time deposits 2
5
Other 3
6
Own foreign offices 4
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments 7
10
Other
7
8
Nonmonetary international and regional organizations 8 . .
Banks' own liabilities
Demand deposits
14
Time deposits"
15
Other 3
11
12
13
16
17
18
19
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
20 Official institutions 9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits'
24
Other 3
25
26
27
28
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
29 Banks 10
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits 2
34
Other 3
35
Own foreign offices 4
36
37
38
39
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits 2
44
Other 3
45
46
47
48
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
1,283,027
1,347,837
l,413,622 r
l,409,358 r
1,407,854
l,408,223 r
l,457,629 c
1,456,560°
l,486,294 c
l,449,669 c
r
r
c
c
c
882,980
31,344
198,546
168,011
485,079
884,939
29,558
151,761
140,752
562,868
976,400
42,884
163,595r
162,749
607,172 r
972,870
39,611
165.657r
163.884
603,718 r
961,754
29,255
167,001
161,906
603,592
976,662
30,202
182,657r
165,626
598,177 r
l,036,677
29.097
176,927
179,090
651,563
l,017,559
30,719 r
182,787r
175,905 r
628,148
l,056,443
34,914 r
186,305r
178,880r
656,344'
l,018,607 c
30,100
184,634
179,510
624,363
400,047
193,239
462,898
183,494
437,222 r
185,736r
436,488 r
184,553r
446,100
194,987
43 l,561 r
184,159r
420,952
174,310
439,001
180,951
429,851
182,699
431,062
180,925
93,641
113,167
141,699
137,705
132,575
118,911
128,67 l r
123,264r
127,628
123,485
124,207 r
123,195'
123,580
123,062
124,670
133,380
120,624
126,528
119,212
130,925
11,690
11,486
16
5,466
6,004
11,883
10,850
172
5,793
4,885
15,276
14,357
98
10,349
3,910
20,436
19,513
148
9,251
10,114
18,729
17,954
71
9,741
8,142
20,590
19,800
58
11,338
8,404
22.807
36
11,393
10,680
21,366
20,924
34
12,545
8,345
16,689
16,294
30
10,305
5,959
14,630
14,377
26
9,062
5,289
204
69
1,033
636
919
680
923
704
775
695
790
623
698
582
442
432
395
371
253
217
133
2
397
0
233
6
213
6
71
9
77
90
113
3
10
0
21
3
26
10
283,685
102,028
2,314
41,396
58,318
260,060
80,256
3,003
29,506
47,747
294,994
97,615
3,341
28,942
65,332
287,263
79.652
3,306
27,690
48,656
301,021
87,187
2,381
30,117
54,689
295,331
87,379
2,620
36,587
48,172
284,622
87,931
2,781
31,645
53,505
293,319
88,449
2,887
33,520
52,042
299,775 r
92,794 r
4,063 r
34,463 r
54,268 r
297,023
91,238
4,573
31,841
54,824
181,657
148,301
179,804
134,177
197.379
156,177
207,611
156,995
213,834
164,781
207.952
157,607
196,691
148,820
204,870
157,190
206,981
160,093
205,785
159,781
33,151
205
44,953
674
41,152
50
50,298
318
48,689
364
50,118
227
47,734
137
47,611
69
46,363
525
r
r
22,109
45,644
360
r
815,247
641,447
156,368
16,767
83,433
56,168
485,079
885,336
676,057
113,189
14,071
45,904
53,214
562,868
905,347
733,381 r
126,209
17,583
48,140
60,486
607,172 r
895,134 r
733,010 r
129,292
12,424
51,510
65.358
603,718 r
888,905
724,870
121,278
13,930
49,712
57,636
603,592
892,804
732,303 r
134,126
14,404
57,240
62,482
598,177 r
941,920
781,795
130,232
13,254
55,167
61,811
651,563
930,663 r
759,887 r
131,739 r
14,543r
58,095 r
59,101 r
628,148
960,487
797,353 r
141,009 r
17,508r
60,703
62,798 r
656,344 r
925,495
758,407
134,044
11,961
62,841
59,242
624,363
173,800
31,915
209,279
35,359
171,966 r
16,875r
162,124r
14,584r
164,035
15,708
160,501
13,931
160,125
14,179
170,776
13,239
163,134
12,657
167,088
12,251
35,393
106,492
45,332
128,588
45,695
109,396
34,629
112,911
35,453
112,874
33,790
112,780
33,667
112,279
34,657
122,880
34,018
116,459
33,893
120,944
172,405
128,019
12,247
68,251
47,521
190,558
117,776
12,312
70,558
34,906
198,005r
131,047 r
21,862
76,164 r
33,021
206,525R
199,199
131,743
12,873
77,431
41,439
199,498'
137,180 r
13,120
77,492 r
46,568
208,280
144,842
13,026
78,722
53,094
21 L,212r
148,299 r
13,255r
78,627'
56,417
209,343 r
140,695 r
23,733
77,206 r
39,756
13,313r
80.834 r
55,855 r
212,521
154,585
13,540
80,890
60,155
44,386
12,954
72,782
13,322
66,958
12,004
65,830 r
12,270
67,456
13,803
62,318 r
1 l,998 r
63,438
10,729
62,913
10,090
59,381
9,579
57,936
8,676
24,964
6,468
51,017
8,443
45,495
9,459
43,53 l r
10,029r
43,415
10,238
40,222 r
10,098r
42,066
10,643
42,392
10,431
40,222
9,541
39,649
9,611
16,083
27,026
30,345
27,266
28,056
26,087
27,238
26,571
26,186
25,911
150,002R
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
A54
3.17
International Statistics • December 2000
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
Payable in U.S. dollars
Millions of dollars, end of period
2000
Item
1997
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug.?
AREA
50 Total, all foreigners
1,283,027
1,347,837
l,413,622 r
l,409,358 r
l,407,854 r
l,408,223 r
1,457,629°
1,456,560°
1,486,294°
1,449,669°
51 Foreign countries
1,271,337
1,335,954
l,398,346 r
l,388,922 r
r
l,387,633 r
1,434,822°
l,435,194 r
1,469,645°
1,435,039°
419,672
2,717
41,007
1,514
2,246
46,607
23,737
1,552
11,378
7,385
317
2,262
7,968
18,989
1,628
39,023
4,054
181,904
239
25,145
427,375
3,178
42,818
1,437
1,862
44,616
21,357
2,066
7,103
10,793
710
3,236
2,439
15,781
3,027
50,654
4,286
181,554
233
30,225
448,070
2,789
44,692
2,196
1,658
49,790
24,748
3,748
6,775
8,310
1,327
2,228
5,475
10,426
4,652
65,985
7,842
176,234
286
28,909
451,020 r
2,997
38,783
2,533
1,479
49,839
23,916
4,000
5,404 r
7,797
1,169
2,113
7,543
12,130
4,792
61,335
7,714
187,346 r
294
29,836
449,812 r
2,570
36.385
3,235
2,015
43,666
25,176
3,216
5,277 r
7,67 r
1,336
2,006
7,360
12,518
5,425
81,934
7,995
169,155 r
270
32,602
433,782 r
2,302
33,100
2,601
1,744
45,324
23,710
3,188
4,788 r
7,277
1,197
1,913
10,065
11,208
5,165
69,208
8,016
169,22 l r
265
33,490
435,694
2,468
31,656
3,629
1,529
43,577
24,875
3,030
7,142
6,823
963
1,964
11,716
10,796
4,390
63,700
7,501
176,824
275
32,836
448,745
2,697
31,246
3,444
1,380
42,105
28,943
2,765
6,676
8,728
2,189
2,373
11,884
9,999
5,434
59,561
8,472
187,806
276
32,767
481,999
3,226 r
33,372
3,522
1,745
42,386 r
26,489 r
2,916 r
5,704 r
12,339
2,374
2,172
14,965 r
8,878
5,091
78,197
8,341 r
197,31 r
277 r
32,694 r
456,986
2,772
31,381
3,692
1,612
42,729
25,895
3,455
5,584
13,112
1,671
2,128
14,257
8,864
5,994
77,570
7,999
175,739
277
32,255
52 Europe
53
Austria
54
Belgium and Luxembourg
55
Denmark
56
Finland
57
France
58
Germany
59
Greece
60
Italy
61
Netherlands
62
Norway
63
Portugal
64
Russia
65
Spain
66
Sweden
67
Switzerland
68
Turkey
69
United Kingdom
70
Yugoslavia"
Other Europe and other former U.S.S.R. 12
71
72 Canada
l,389,125
28,341
30,212
34,119
33,387
36,147
40,562
36,229
37,256
37,253
33,735
73 Latin America and Caribbean
74
Argentina
75
Bahamas
76
Bermuda
77
Brazil
78
British West Indies
79
Chile
80
Colombia
81
Cuba
82
Ecuador
83
Guatemala
84
Jamaica
85
Mexico
86
Netherlands Antilles
87
Panama
88
Peru
89
Uruguay
90
Venezuela
91
Other
536,393
20,199
112,217
6,911
31,037
276,418
4,072
3,652
66
2,078
1,494
450
33,972
5,085
4,241
893
2,382
21,601
9,625
554,866
19,014
118,085
6,846
15,815
302,486
5,015
4,624
62
1,572
1,336
577
37,157
5,010
3,864
840
2,486
19,894
10,183
577,737
18,633
134,407
7,877
12,860
312,779
7,008
5,669
75
1,956
1,626
520
30,717
3,997
4,415
1,142
2,386
20,189
11,481
598,391 r
16,548
155,720
9,106
12,785
314,10S r
6,244
4,304
75
2,035
1,617
571
32,216
3,692
3,737
1,051
2,262
21,297
11,023
597,235 r
17,906
141,370
10,108
14,889
321,144 r
5,752
4,314
100
2,141
1,706
671
31,393
4,528
4,157
975
2,377
22,572
11,132
606,768 r
18,487
159,115
9,710
10,305
317,044 r
5,933
4,243
77
2,193
1,628
670
32,832
5,108
3,788
1,021
2,431
21,140
11,043
663,827
16,496
173,589 r
8,713
9,945
360,314 r
6,095
4,237
77
2,274
1,669
706
33,915
6,561
3,764
1.100
2,520
20.469
11,383
641,087 r
16,540
181,673 r
8,021
10,905
325,537 r
6,192
4,360
85
2,272
1,649
674
33,937
7,885
3,822
1,125
2,680
22,263
1 l,467 r
644,215 r
19,099 r
170,544 r
7,074 r
1 l,919 r
340,388 r
5,439
4,622
122r
2,218 r
l,717 r
709 r
33,379 r
7,165
3,349 r
l,095 r
2,160
21,457 r
ll,759 r
632,823
17,560
176,140
8,157
12,337
321,461
5,296
4,732
91
2,077
1,638
900
33,290
6,370
3,557
1,064
2,526
23,889
11,738
92 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 13
Other
269,379
307,960
319,302 r
287,318 r
287,572 r
288,739 r
282,325
290,016 r
285,084 r
291,056
18,252
11,840
17,722
4,567
3,554
6,281
143,401
13,060
3,250
6,501
14,959
25,992
13,441
12,708
20,900
5,250
8,282
7,749
168,563
12,524
3,324
7,359
15,609
32,251
12,325
13,600
27,697
7,367
6,567
7,488
159,075
12,853
3,253
6,050
21,284
41,743 r
1 l,659 r
11,207 r
24,038
5,405
7,495
7,680
145.314
12,625
2,540
5,134
15,811
38,410 r
8,094 r
14,637 r
22,672
6,258
7,837
8,338
145,074
16,425'
2,277
4,370
16,132
35,458 r
8,529 r
14,483r
22,873
5,586
7,275
7,058
147,409
16,820
2,290
3,628
19,005
33,783
7,824
14,113
23,951
5,703
7,064
5,541
148,668
12,941
1,750
3,428
18,647
32,695
9,930
13,584
23,952
5,558
7,400
6,123
153,662
10,324
1,999
3,529
18,538
35,417 r
9,383
13,156
25,693
5,689
7,472
5,793
147,553 r
8,624
1,649
3,900
22,126 r
34,046
11,796
14,675
26,760
5,497
7,430
5,950
146,378
8,822
1,679
3,504
21,918
36,647
10,347
1,663
138
2,158
10
3,060
3,318
8,905
1,339
97
1,522
5
3,088
2,854
9,468
2,022
179
1,495
14
2,914
2,844
8,270
1,703
262
698
13
3,098
2,496
8,614
1,770
115
673
13
3,318
2,725
8,576
1,663
106
687
7
3,558
2,555
8,437
1,722
122
662
13
3,298
2,620
8,718 r
1,962
149
595
6
3,405
2,601 r
9,738
1,778
118
793
5
4,258
2,786
9,613
1,621
109
710
7
4,469
2,697
7,205
6,304
901
6,636
5,495
1,141
9,650
8,377
1,273
10,536 r
9,333 r
1.203
9,745 r
8,667 r
1,078
9,206 r
8,413 r
793
8,310
7,586
724
9,372
8,564
808
11,356
10,347
1,009
10,826
9,824
1,002
11,690
10,517
424
749
11,883
10,221
594
1,068
15,276
12,876
1,150
1,250
20,436
17,561
1,858
1,017
18,729 r
16,674 r
1,244
811
20,590
19,207
518
865
22,807
21,375
624
808
21,366
20,106
768
492
16,689
15,295
786
608
14,630
13,118
1,146
366
93
94
95
96
97
98
99
100
101
102
103
104
105 Africa
106
Egypt
107
Morocco
South Africa
108
109
Zaire
Oil-exporting countries 14
110
111
Other
112 Other
113
Australia
114
Other
115 Nonmonetary international and regional organizations . .
116
International 15
117
Latin American regional 16
118
Other regional 17
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
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 International 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 Europe."
Nonbank-Reported
3.18
Data
A55
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States'
Payable in U.S. Dollars
Millions of dollars, end of period
2000
Area or country
1997
1998
1999
Feb.
Mar.
Apr.
May
June
July
Aug.P
1 Total, all foreigners
708,225
734,995
795,377
750,972
813,890
815,083
820,782
825,898
827,987
800,707
2 Foreign countries
705,762
731,378
790,814
746,305
809,581
810,081
816,439
820,887
824,111
796,930
199,880
1,354
6,641
980
1,233
16,239
12,676
402
6,230
6,141
555
777
1,248
2,942
1,854
28,846
1,558
103,143
52
7,009
233,321
1,043
7,187
2,383
1,070
15,251
15,923
575
7,284
5,697
827
669
789
5,735
4,223
46,874
1,982
106,349
53
9,407
315,905
2,643
10,193
1,669
2,020
29,142
29,205
806
8,496
11,810
1,000
1,571
713
3,796
3,264
79,158
2,617
120,190
50
7,562
314,504
2,471
9,777
1,743
1,846
28,303
28,890
683
6,785
11,484
1,146
1,155
743
4,339
5,382
70,250
3,031
128,252
50
8,174
361,470
2,493
8,022
1,625
2,093
28,127
35,371
842
7,048
14,089
1,132
1,043
709
3,187
7,492
111,544
3,053
125,162
50
8,388
350,067
2,429
7,939
1,940
2,087
30,958
33,991
864
7,034
13,932
1,499
1,085
709
3,217
8,100
97,688
3,148
125,935
51
7,461
359,895
2,242
5,959
2,001
2,414
35,217
31,521
828
6,565
14,377
1,832
1,268
715
3,126
7,112
105,573
3,269
128,259
49
7,568
357,243
2,148
6,393
3,440
2,650
28,633
33,585
837
7,724
15,668
1,935
1,424
744
3,844
8,744
86,284
3,189
141,769
49
8,183
361,814
2,646
6,261
3,349
2,946
25,848
30,454
754
6,483
13,155
2,404
1,454
718
4,768
8,460
94,549
2,736
147,138
69
7,622
331,612
1,985
5,814
3,271
2,750
23,232
31,800
557
7,393
14,998
1,451
1,273
666
3,521
8,811
87,172
4,413
125,897
49
6,559
3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
1 1 Italy
Netherlands
12
13
Norway
14
Portugal
Russia
15
Spain
16
17
Sweden
18
Switzerland
19
Turkey
20
United Kingdom
Yugoslavia2
71
22
Other Europe and other former U.S.S.R.3
27,189
47,037
37,206
38,541
42,686
43,300
45,481
42,591
40,383
37,872
74 Latin America and Caribbean
75
Argentina
76
Bahamas
77
Bermuda
7.8
Brazil
79
British West Indies
30
Chile
31
Colombia
37
Cuba
33
Ecuador
34
Guatemala
35
Jamaica
36
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
Uruguay
40
41
Venezuela
42
Other
343,730
8,924
89,379
8,782
21,696
145,471
7,913
6,945
0
1,311
886
424
19,428
17,838
4,364
3,491
629
2,129
4,120
342,654
9,552
96,455
5,011
16,184
153,749
8,250
6,507
0
1,400
1,127
239
21,212
6,779
3,584
3,275
1,126
3,089
5,115
353,416
10,167
99,324
8,007
15,706
167,189
6,607
4,524
0
760
1,135
295
17,899
5,982
3,387
2,529
801
3,494
5,610
314,839
10,095
68,914
11,771
15,382
156,776
6,224
4,176
0
730
1,170
332
17,489
6,341
2,972
2,414
777
3,524
5,752
323,816
9,845
74,018
7,441
14,981
166,284
6,511
3,937
0
688
1,181
328
16,998
6,385
2,912
2,223
761
3,580
5,743
328,769
9,732
72,312
5,685
16,210
173,907
6,447
3,907
0
662
1,252
316
16,944
6,388
2,844
2,356
714
3,474
5,619
321,219
9,507
71,459
6,478
16,376
165,920
6,399
4,032
0
640
1,245
300
16,771
6,579
2,984
2,515
708
3,595
5,711
328,629
9,386
80,393
6,285
16,544
164,969
6,213
3,796
0
613
1,235
291
17,066
6,502
3,063
2,458
620
3,471
5,724
329,170
9,428
73,275
6,906
16,902
172,262
6,072
3,907
0
610
1,215
299
16,432
6,652
2,981
2,488
649
3,357
5,735
338,811
10,549
78,896
4,684
18,555
176,032
5,985
3,952
3
607
1,277
305
16,840
5,804
2,882
2,487
777
3,410
5,766
43 Asia
China
44
Mainland
45
Taiwan
46
Hong Kong
47
India
Indonesia
48
49
Israel
50
Japan
51
Korea (South)
52
Philippines
53
Thailand
54
Middle Eastern oil-exporting countries4
55
Other
125,092
98,607
74,914
69,074
72,692
78,257
80,221
82,415
83,137
79,013
1,579
922
13,991
2.200
2,651
768
59,549
18,162
1,689
2,259
10,790
10,532
1,261
1,041
9,080
1,440
1,942
1,166
46,713
8,289
1,465
1,807
16,130
8,273
2,090
1,390
5,893
1,738
1,776
1,875
28,636
9,262
1,410
1,515
14,252
5,077
2,726
1,501
4,453
1,802
1,743
1,832
25,559
12,066
1,058
1,275
10,947
4,112
3,161
925
4,519
1,749
1,817
3,412
27,310
11,466
1,698
1,154
11,612
3,869
4,532
1,080
4,546
1,786
1,821
3,293
30,381
12,209
1,714
1,081
10,765
5,049
2,611
1,732
4,573
1,941
1,819
2,857
31,689
14,018
1,884
1,137
11,666
4,294
1,688
1,339
4,266
1,905
1,856
1,610
33,256
15,866
1,865
1,255
12,128
5,381
1,822
926
5,782
2,013
1,940
1,982
31,207
18,924
1,802
1,051
10,366
5,322
1,596
794
5,408
2,037
1,880
2,261
32,494
16,931
1,483
1,059
10,006
3,064
56 Africa
57
Egypt
58
Morocco
59
South Africa
60
Zaire
61
Oil-exporting countries5
62
Other
3,530
247
511
805
0
1,212
755
3,122
257
372
643
0
936
914
2,268
258
352
622
24
276
736
2,453
207
313
889
0
228
816
1,991
243
279
428
0
198
843
2,054
206
300
360
0
394
794
2,109
218
271
341
0
508
771
2,494
230
259
772
0
430
803
2,517
217
272
423
0
751
854
2,227
186
247
370
0
866
558
63 Other
64
Australia
65
Other
6,341
5,300
1,041
6,637
6,173
464
7,105
6,824
281
6,894
6,682
212
6,926
6,674
252
7,634
7,225
409
7,514
7,139
375
7,515
7,240
275
7,090
6,890
200
7,395
7,036
359
66 Nonmonetary international and regional organizations 6 . . .
2,463
3,617
4,563
4,667
4,309
5,002
4,343
5,011
3,876
3,777
23 Canada
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included all
parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
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 Europe."
A56
3.19
International Statistics • December 2000
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
2000
Type of claim
1997
1998
1999
Feb.
1
Total
Banks' claims
Foreign public borrowers
Own foreign offices 2
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners
2
3
4
Claims of banks' domestic customers 3
Deposits
Negotiable and readily transferable
instruments 4
Outstanding collections and other
12
claims
9
10
11
Mar.
June
Apr.
May
815,083
37,300
557,339
91,849
22,399
69,450
128,595
820,782
43,092
549,165
92,280
24,769
67,511
136,245
875,891
947,176
734,995
23,542
484,535
106,206
27,230
78,976
120,712
795,377
35,090
528,397
101,227
34,360
66,867
130,663
144,627
73,110
140,896
79,363
151,799
88,006
196,525
128,490
184,107
106,055
53,967
47,914
51,161
56,032
62,975
17,550
13,619
12,632
12,003
15,077
9,624
4,520
4,553
4,464
5,082
33,816
39,978
31,125
813,890
36,036
552,218
96,030
24,361
71,669
129,606
Aug."
827,987
48,499
553,133
89,236
21,861
67,375
137,119
800,707
41,406
544,118
82,469
21,674
60,795
132,714
1,010,005
1,010,415
852,852
708,225
20,581
431,685
109,230
30,995
78,235
146,729
750,972
36,541
496,771
87,666
21,275
66,391
129,994
July
825,898
41,461
553,262
92,911
22,373
70,538
138,264
MEMO
13
Customer liability on acceptances
14
Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States 5
48,225
45,383
44,868
46,337R
44,139
55,164
principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
3.20
53,657
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
2000
1999
Maturity, by borrower and area 2
1996
1997
1998
Sept.
Dec.
Mar.
June
1 Total
258,106
276,550
250,418
270,098
266,309
261,056
273,022
By borrower
2 Maturity of one year or less
3
Foreign public borrowers
4
All other foreigners
5 Maturity of more than one year
Foreign public borrowers
6
All other foreigners
7
211,859
15,411
196,448
46,247
6,790
39,457
205,781
12,081
193,700
70,769
8,499
62,270
186,526
13,671
172,855
63,892
9,839
54,053
196,772
22,526
174,246
73,326
12,162
61,164
187,383
22,811
164,572
78,926
12,013
66,913
180,453
23,436
157,017
80,603
12,802
67,801
187,028
25,289
161,739
85,994
15,484
70,510
55,690
8,339
103,254
38,078
1,316
5,182
58,294
9,917
97,207
33,964
2,211
4,188
68,679
10,968
81,766
18,007
1,835
5,271
82,566
8,544
78,063
20,859
1,119
5,621
80,842
7,859
68,987
21,802
1,122
6,771
79,639
8,408
62,325
23,002
957
6,122
76,366
7,353
66,065
29,231
1,569
6,444
6,965
2,645
24,943
9,392
1,361
941
13.240
2,525
42,049
10,235
1,236
1,484
14,923
3,140
33,442
10,018
1,232
1,137
18,619
3,193
38,154
10,641
1,087
1,632
22,951
3,192
38,789
11,257
1,065
1,672
23,951
3,127
39,194
11,612
965
1,754
25,116
3,323
41,758
12,446
924
2,427
8
9
10
11
12
13
14
15
16
17
18
19
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Maturity is time remaining until maturity.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported
3.21
CLAIMS ON FOREIGN COUNTRIES
Data
A57
Held by U.S. and Foreign Offices of U.S. Banks 1
Billions of dollars, end of period
1999
1998
Area or country
1996
2000
1997
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
645.8
721.8
1017.2
1071.9
1051.6
992.8
939.4
936.8r
936.7
952.7
991.0
228.3
11.7
16.6
29.8
16.0
4.0
2.6
5.3
104.7
14.0
23.7
242.8
11.0
15.4
28.6
15.5
6.2
3.3
7.2
113.4
13.7
28.6
273.9
14.0
21.7
30.5
21.1
8.6
3.1
7.0
125.9
16.7
25.3
240.0
11.7
20.3
31.4
18.5
8.4
2.1
7.6
100.1
15.9
23.9
217.7
10.7
18.4
30.9
11.5
7.8
2.3
8.5
85.4
16.8
25.4
208.7
15.6
21.6
34.7
17.8
10.7
4.0
7.8
56.1
15.9
24.6
223.1
16.1
20.4
32.1
16.4
13.3
2.6
8.2
74.3
17.1
22.6
206.4r
15.7
19.9
37.4
15.0
10.6
3.6
8.8
51.9r
17.9r
25.6
236.5
14.3
29.0
38.7
18.1
12.3
3.0
10.3
72.4
16.3
22.0
284.1
14.2
27.1
37.3
20.0
17.1
3.9
10.1
113.5
17.5
23.5
323.3
13.8
32.6
31.5
20.0
16.1
3.5
13.8
148.3
18.2
25.4
13 Other industrialized countries
14
Austria
15
Denmark
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
66.1
1.1
1.5
.8
6.7
8.0
.9
13.3
2.7
4.9
2.0
24.0
65.5
1.5
2.4
1.3
5.1
3.6
.9
12.6
4.5
8.3
2.2
23.1
78.7
1.9
2.2
1.4
5.8
3.4
1.4
17.5
6.5
9.9
6.9
21.8
78.5
2.1
3.0
1.6
5.8
3.2
1.1
19.5
5.2
10.4
5.4
21.4
69.0
1.4
2.2
1.4
5.9
3.2
1.4
13.7
4.8
10.4
4.4
20.3
80.1
2.8
3.4
1.5
6.5
3.1
1.4
15.7
5.2
10.2
4.8
25.4
79.7
2.8
2.9
.9
5.9
3.0
1.2
16.6
4.9
10.2
4.7
26.6
71.7
3.0
2.1
.9
6.6
3.8
1.2
15.1
4.7
9.2
4.0
21.1
68.4
3.5
2.6
.9
6.0
3.3
1.0
12.1
4.8
6.8
3.8
23.5
62.8
2.6
1.5
.8
5.7
3.0
1.0
11.3
5.1
8.3
4.8
18.6
76.2
2.8
1.2
1.3
6.8
4.6
2.0
12.2
5.6
8.8
4.6
26.3
25 OPEC 2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
19.8
1.1
2.4
5.2
10.7
.4
26.0
1.3
2.5
6.7
14.4
1.2
25.5
1.2
3.3
5.1
15.6
.3
26.0
1.2
3.1
4.7
16.1
.8
27.1
1.3
3.2
4.7
17.0
1.0
26.2
1.2
3.5
4.5
16.7
.4
26.1
1.1
3.2
5.0
16.5
.4
30.1
.9
3.0
4.4
21.4
.5
31.4
.8
2.8
4.2
23.0
.5
28.9
.7
3.0
3.9
21.1
.2
32.3
.7
2.9
4.1
24.0
.7
1 Total
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan
130.3
139.2
146.1
140.4
143.4
146.7
148.6
142.5
147.3
152.5
155.6
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
14.3
20.7
7.0
4.1
16.2
1.6
3.3
18.4
28.6
8.7
3.4
17.4
2.0
4.1
20.9
30.3
9.1
3.6
18.1
2.2
4.4
22.9
24.0
8.5
3.4
18.7
2.2
4.6
23.1
24.7
8.3
3.2
18.9
2.2
5.4
24.3
24.2
8.6
3.3
19.7
2.2
5.3
22.8
25.1
8.2
3.1
18.5
2.1
5.5
22.1
22.1
7.7
2.7
19.4
1.8
5.5
22.4
26.4
7.4
2.5
18.7
1.7
5.9
21.3
26.9
8.2
2.5
18.3
1.9
6.5
20.3
27.0
8.1
2.4
20.5
2.1
6.7
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1
3.2
9.5
4.9
.7
15.6
5.1
5.7
5.4
4.3
3.9
11.8
4.9
.9
14.6
4.7
5.4
5.0
3.7
2.8
12.5
5.3
.9
13.1
5.0
4.7
5.3
3.1
3.0
13.3
5.5
1.1
13.7
5.6
5.1
4.7
2.9
5.0
11.8
5.5
1.1
13.7
5.9
5.4
4.5
3.0
5.3
12.6
6.7
2.0
15.3
6.0
5.7
4.2
2.8
3.3
12.3
7.0
1.0
16.0
6.1
5.8
4.0
2.8
3.6
12.0
7.7
1.8
15.1
6.1
6.2
4.1
2.9
4.6
12.6
7.9
3.3
17.4
6.5
5.3
4.3
2.6
3.8
12.6
8.2
1.5
21.2
6.8
5.3
4.0
2.5
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.7
.7
.1
.9
.9
.6
.0
.8
1.5
.6
.0
.8
1.7
.5
.0
1.1
1.3
.5
.0
1.0
1.4
.5
.0
1.2
1.4
.5
.0
1.0
1.3
.5
.0
1.0
1.4
.4
.0
1.0
1.4
.3
.0
.9
1.3
.3
.0
.9
6.9
3.7
3.2
9.1
5.1
4.0
11.3
6.9
4.4
6.3
2.8
3.5
5.5
2.2
3.3
7.1
2.3
4.8
5.8
2.1
3.7
5.4
2.0
3.4
5.2
1.6
3.6
6.3
1.7
4.7
9.4
1.5
7.9
135.1
20.5
4.5
37.2
26.1
2.0
140.2
24.2
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1
130.0
28.6
9.4
34.3
10.5
3.3
.1
30.0
13.6
.2
351.7
121.0
30.7
10.4
27.8
6.0
4.0
.2
30.6
11.1
.2
459.9
93.9
35.4
4.6
12.8
2.6
3.9
.1
23.3
11.1
.2
495.1
93.6
32.6
3.9
13.9
2.7
3.9
.1
22.8
13.5
.2
430.4
75.9
20.4
5.7
7.2
1.3
3.9
.1
22.0
15.2
.1
380.2
89.4r
28.6r
8.2
6.3
9.1
3.9
.2
22.4
10.6
.2
391.2
60.1
13.9
8.0
1.3
1.7
3.9
.1
21.0
10.1
.1
387.9
42.0
2.4
7.3
.0
2.5
3.4
.1
22.2
4.1
.1
376.1
52.4
.5
6.3
5.1
2.6
3.3
.1
20.7
13.6
.1
341.9
31 Non-OPEC developing countries
52 Eastern Europe
53
Russia4
54
Other
55 Offshore banking centers
56
Bahamas
57
Bermuda
58
Cayman Islands and other British West Indies
59
Netherlands Antilles
60
Panama5
61
Lebanon
62
Hong Kong, China
63
Singapore
64
Other 6
65 Miscellaneous and unallocated7
.1
27.9
16.7
.1
59.6
1. The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A58
3.22
International Statistics • December 2000
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
Millions of dollars, end of period
1999
Type of liability, and area or country
1996
1997
2000
1998
Mar.
June
Sept.
Dec.
Mar.
June p
1 Total
61,782
57,382
46,570
46,663
49,337
52,979
53,044
52,555
70,534
2 Payable in dollars
3 Payable in foreign currencies
39,542
22,240
41,543
15,839
36,668
9,902
34,030
12,633
36,032
13,305
36,296
16,683
37,605
15,415
34,680
17,875
47,864
22,670
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
33,049
11,913
21,136
26,877
12,630
14,247
19,255
10,371
8,884
22,458
11,225
11,233
25,058
13,205
11,853
27,422
12,231
15,191
27,980
13,883
14,097
28,246
11,924
16,322
44,068
22,803
21,265
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
28,733
12,720
16,013
30,505
10,904
19,601
27,315
10,978
16,337
24,205
9,999
14,206
24,279
10,935
13,344
25,557
12,651
12,906
25,064
12,857
12,207
24,309
12,401
11,908
26,466
13,764
12,702
10
11
Payable in dollars
Payable in foreign currencies
27,629
1,104
28,913
1,592
26,297
1,018
22,805
1,400
22,827
1,452
24,065
1,492
23,722
1,318
22,756
1,553
25,061
1,405
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23,179
632
1,091
1,834
556
699
17,161
18,027
186
1,425
1,958
494
561
11,667
12,589
79
1,097
2,063
1,406
155
5,980
16,098
50
1,178
1,906
1,337
141
9,729
19,578
70
1,287
1,959
2,104
143
13,097
21,695
50
1,675
1,712
2,066
133
15,096
23,241
31
1,659
1,974
1,996
147
16,521
23,116
4
1,405
1,390
1,970
97
16,579
30,332
163
1,702
1,671
2,035
137
21,463
19
Canada
1,401
2,374
693
781
320
344
284
313
714
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,668
236
50
78
1,030
17
1
1.386
141
229
143
604
26
1
1,495
7
101
152
957
59
2
1,528
1
78
137
1,064
22
2
1,369
1
52
131
944
19
1
1,180
1
26
122
786
28
0
892
1
5
126
492
25
0
846
1
1
128
489
22
0
2,874
78
1,016
146
463
26
0
27
28
29
Asia
Japan
Middle Eastern oil-exporting countries'
6,423
5,869
25
4,387
4,102
27
3,785
3,612
0
3,475
3,337
1
3,217
3,035
2
3,622
3,384
3
3,437
3,142
3
3,275
2,985
4
9,453
6,024
5
30
31
Africa
Oil-exporting countries 2
38
0
60
0
28
0
31
2
29
0
31
0
28
0
28
0
33
0
340
643
665
545
545
550
98
668
662
9,767
479
680
1,002
766
624
4,303
10,228
666
764
1,274
439
375
4,086
10,030
278
920
1,392
429
499
3,697
8,580
229
654
1,088
361
535
3,008
8,718
189
656
1,143
432
497
2,959
9,265
128
620
1,201
535
593
3,175
9,262
140
672
1,131
507
626
3,071
8,646
78
539
914
648
536
2,661
9,293
178
711
948
562
565
2,982
32
33
34
35
36
37
38
39
All other 3
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,090
1,175
1,390
1,597
1,670
1,753
1,775
2,024
2,053
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,574
63
297
196
14
665
328
2,176
16
203
220
12
565
261
1,618
14
198
152
10
347
202
1,612
11
225
107
7
437
155
1,674
19
180
112
5
490
149
1,957
24
178
120
39
704
182
2,310
22
152
145
48
887
305
2,286
9
287
115
23
805
193
2,607
10
300
119
22
1,073
239
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries'
13,422
4,614
2,168
14,966
4,500
3,111
12,342
3,827
2,852
10,428
2,715
2,479
10,039
2,753
2,209
10,428
2,689
2,618
9,886
2,609
2,551
9,681
2,274
2,308
10,965
2,200
3,489
51
52
Africa
Oil-exporting countries 2
1,040
532
874
408
794
393
727
377
832
392
959
584
950
499
943
536
950
575
53
Other 3
840
1,086
1,141
1,261
1,346
1,195
881
729
598
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
A59
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1999
Type of claim, and area or country
1996
1997
2000
1998
Mar.
June
Sept.
Dec.
Mar.
June p
1 Total
65,897
68,128
77,462
69,054
63,884
67,566
76,669
84,266
80,685
2 Payable in dollars
3 Payable in foreign currencies
59,156
6,741
62,173
5,955
72,171
5,291
64,026
5,028
57,006
6,878
60,456
7,110
69,170
7,472
74,331
9,935
72,254
8,431
By type
4 Financial claims
Deposits
5
Payable in dollars
Payable in foreign currencies
7
Other financial claims
8
Payable
in dollars
9
Payable in foreign currencies
10
37,523
21,624
20,852
772
15,899
12,374
3,525
36,959
22,909
21,060
1,849
14,050
11,806
2,244
46,260
30,199
28,549
1,650
16,061
14,049
2,012
38,217
18,686
17,101
1,585
19,531
17,457
2,074
31,957
13,350
11,636
1,714
18,607
14,800
3,807
33,877
15,192
13,240
1,952
18,685
15,718
2,967
40,231
18,566
16,373
2,193
21,665
18,593
3,072
47,798
23,316
21,442
1,874
24,482
19,659
4,823
44,303
17,462
15,361
2,101
26,841
22,384
4,457
11 Commercial claims
12
Trade receivables
Advance payments and other claims
13
28,374
25,751
2,623
31,169
27,536
3,633
31,202
27,202
4,000
30,837
26,724
4,113
31,927
27,791
4,136
33,689
29,397
4,292
36,438
32,629
3,809
36,468
31,443
5,025
36,382
31,237
5,145
14
15
Payable in dollars
Payable in foreign currencies
25,930
2,444
29,307
1,862
29,573
1,629
29,468
1,369
30,570
1,357
31,498
2,191
34,204
2,207
33,230
3,238
34,509
1,873
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
11,085
185
694
276
493
474
7,922
14,999
406
1,015
427
677
434
10,337
12,294
661
864
304
875
414
7,766
12,881
469
913
302
993
530
8,400
13,978
457
1,368
367
997
504
8,631
13,878
574
1,212
549
1,067
559
8,157
13,023
529
967
504
1,229
643
7,561
16,789
540
1,835
669
1,981
612
9,044
18,254
317
1,292
576
1,984
624
11,668
ft
3,442
3,313
2,503
3,111
2,828
3,172
2,553
3,175
5,799
20,032
1,553
140
1,468
15,536
457
31
15,543
2,308
108
1,313
10,462
537
36
27,714
403
39
835
24,388
1,245
55
18,825
666
41
1,112
14,621
1,583
72
11,486
467
39
1,102
7,393
1,702
71
12,749
755
524
1,265
7,263
1,791
47
18,206
1,593
11
1,476
12,099
1,798
48
21,945
1,299
11
1,646
15,814
1,979
65
14,874
655
34
1,666
7,751
2,048
78
2,221
1,035
22
2,133
823
11
3,027
1,194
9
2,648
942
8
2,801
949
5
3,205
1,250
5
5,457
3,262
21
4,430
2,021
29
3,923
1,410
42
Africa
Oil-exporting countries 2
174
14
319
15
159
16
174
26
228
5
251
12
286
15
232
15
320
39
All other 3
569
652
563
578
636
622
706
1,227
1,133
10,443
226
1,644
1,337
562
642
2,946
12,120
328
1,796
1,614
597
554
3,660
13,246
238
2,171
1,822
467
483
4,769
12,782
281
2,173
1,599
415
367
4,529
12,961
286
2,094
1,660
389
385
4,615
14,367
289
2,375
1,944
617
714
4,789
16,389
316
2,236
1,960
1,429
610
5,827
16,118
271
2,520
2,034
1,337
611
5,354
15,910
425
2,690
1,902
1,241
563
4,928
23
Canada
24
25
26
27
7.8
7.9
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle Eastern oil-exporting countries'
34
35
36
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
2,165
2,660
2,617
2,983
2,855
2,638
2,757
3,088
3,246
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
5,276
35
275
1,303
190
1,128
357
5,750
27
244
1,162
109
1,392
576
6,296
24
536
1,024
104
1,545
401
5,930
10
500
936
117
1,431
361
6,278
21
583
887
127
1,478
384
5,879
29
549
763
157
1,613
365
5,959
20
390
905
181
1,678
439
5,899
15
404
849
95
1,529
435
5,789
48
380
894
51
1,564
465
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries'
8,376
2,003
971
8,713
1,976
1,107
7,192
1,681
1,135
7,080
1,486
1,286
7,690
1,511
1,465
8,579
1,823
1,479
9,165
2,074
1,625
9,101
2,082
1,533
9,168
1,881
1,241
55
56
Africa
Oil-exporting countries 2
746
166
680
119
711
165
685
116
738
202
682
221
631
171
716
82
765
160
57
Other 3
1,368
1,246
1,140
1,377
1,405
1,544
1,537
1,546
1,504
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
A60
3.24
International Statistics • December 2000
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
2000
Transaction, and area or country
1998
2000
1999
Jan.Aug.
Feb.
Mar.
Apr.
May
June
July
268,454
262,142
300,356
282,563
270,618r
255,478r
r
24,047
Aug.?
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
1,574,192
1,524,203
2,340,659
2,233,137
2,395.465
2,266,311
293,110
265,365
402,373
378,141
309,778
306,474
286,830
262,783
3 Net purchases, or sales (—)
49,989
107,522
129,154
27,745
24,232
3,304
6,312
17,793
15,140
4 Foreign countries
50,369
107,578
129,089
27,626
24,414
3,243
6,291
17,823
15,130r
24,023
68,124
5,672
9,195
8,249
5,001
23,952
-4,689
757
-1,449
-12,351
-1.171
639
-662
98,060
3,813
13,410
8,083
5.650
42,902
-335
5,187
-1,066
4,445
5,723
372
915
121,811
4,088
27,913
2.236
11,974
35,822
3,532
-4.258
7,766
-807
-5,309
521
524
24,375
529
5,425
516
4,804
6,685
890
1,989
1.179
-860
-1,115
-2
55
18,594
1,831
4,532
277
-913
4,794
286
4,840
2,124
-1,716
-2,604
205
81
12.289
1,341
3,431
113
1,689
558
9
-11,441
2,071
52
-446
228
35
7,496
-588
3,355
-113
585
1,440
834
-2,633
705
-121
-1,045
-50
60
14,853
-653
2,544
584
67
7,026
-46
1,898
4
870
439
54
190
12,822r
1,293
323r
546
l,703 r
5,975r
-145
1,369
98
823
497
-66
229
15,678
575
2,670
594
1,113
7,098
1,038
4,910
908
1,790
568
2
-303
-380
-56
65
119
-182
61
21
-30
10
24
905,782
727,044
856.804
602,109
766,010
557,284
99,605
69,476
106,302
76,979
88,155
70,900
89,760
68,212
107.281
75,117
87,302r
67,943r
108,560
69,768
38,792
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 East1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales (—)
178,738
254,695
208,726
30,129
29,323
17,255
21,548
32,164
19,359r
22 Foreign countries
179,081
255,097
208,648
30,147
29,422
17,260
21,490
32,215
19,271r
38,682
23
24
25
26
27
28
29
30
31
32
33
34
35
130.057
3,386
4,369
3,443
4,826
99,637
6,121
23,938
4,997
12,662
8,384
190
1,116
140,674
1,870
7,723
2,446
4,553
106,344
6,043
60,861
1,979
42,842
17.541
1,411
1,287
113,004
2,278
3,129
642
2,751
86,413
9,986
37.221
1,124
45,645
21,296
730
938
17,063
1,124
702
-97
526
13,478
1,324
9,659
-177
2,545
1,173
-130
-137
19,454
620
348
94
202
15,479
689
3,680
670
4,506
2,010
-11
434
7,640
-34
288
279
-18
4,274
764
4,724
347
3,753
580
35
-3
9,475
104
175
283
9
6,237
1,076
2,786
-47
7,996
3,491
40
164
19,378
159
897
-169
324
16,218
1,092
4,390
99
7,059
3,945
72
125
7.573r
85
152
-575
998
3,774r
943
3,748
264
6,601r
3,320r
10
132
22,338
334
1,185
850
757
16,629
1,965
3,576
54
10,562
5,664
37
150
-343
-402
78
-18
-99
-5
58
-51
88
110
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
37 Stocks, net purchases, or sales (—)
38
Foreign purchases
39
Foreign sales
40 Bonds, net purchases, or sales (—)
41
Foreign purchases
42
Foreign sales
6,227
929,923
923,696
-17,350
1,328,281
1,345,631
15,640
1,177,303
1,161.663
-5.676
798,267
803,943
-22,616
1,214,678
1,237,294
2,218
589,751
587,533
-8,884
176.940
185,824
-1,986
74,380
76,366
-8,173
177,090
185,263
-3,431
83,838
87,269
723
154,322
153,599
798
63,916
63,118
8,535
145,408
136,873
4,263
79,534
75,271
-2,046
152,149
154,195
5,770
82,951
77,181
- 14,860r
132,247r
147,107r
2,831r
68,151
65,320r
982
141,573
140,591
-2,529
74,795
77,324
-11,123
9,964
-20,398
-10,870
-11,604
1,521
12,798
3,724
— 12,029r
-1,547
44 Foreign countries
-10,778
9,679
-20,382
-10,899
-11,703
1,356
12,722
3,874
— ll,788 r
-1,393
45
46
47
48
49
50
51
12,632
-1,901
-13,798
-3,992
-1.742
-1,225
-2,494
59,247
-999
-4,726
-42,961
-43,637
710
-1.592
-21,288
-2,759
-13,767
16,191
17,950
890
351
-4,969
-1.865
-4.252
-713
-879
184
716
-5,923
-1,400
-701
-4,086
-1,458
384
23
1,628
-422
-5,155
5,695
4,688
-143
-247
10,113
-1,234
-845
4,971
5,978
-51
-232
-1,434
1,399
1,981
1,878
3,243
-33
83
— 15,454r
239
262
3,235r
3,985
531
-601
-6,003
995
-189
3,256
1,527
-81
629
-345
285
-16
29
99
165
76
-150
43 Net purchases, or sales (—), of stocks and bonds
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
52 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).
-241
-154
2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
A61
Foreign Transactions'
Millions of dollars; net purchases, or sales ( —) during period
2000
2000
Area or country
1998
1999
Jan.—
Aug.
Feb.
Mar.
Apr.
May
June
July
Aug.p
1 Total estimated
49,039
-9,953
-18,349
5,563
-16,871
14,520
-7,018
-17,932
-6,068
2 Foreign countries
46,570
-10,518
-17,520
5,770
-17,092
14,484
-6,820
-17,597
-5,753
-90
23,797
3,805
144
-5,533
1,486
5,240
14,384
4,271
615
38,228
-81
2,285
2,122
1,699
-1,761
-20,232
-22,260
7,348
-27,917
-77
-3,740
2,479
762
-9,068
-17,789
-484
780
-2,443
65
-866
2,475
-100
-1,382
-1,261
-1,374
8
-9,971
116
-1,352
539
263
5
-5.150
-4,392
640
-632
-498
-1,676
700
-289
-288
-533
1,952
1,819
-2,526
-743
74
-1,159
266
-337
178
-805
-681
-9,935
252
609
-389
-47
-1,928
-9.243
811
226
-6,358
-138
-2,199
-584
114
-1,393
-4,384
2,226
-872
3,734
138
-36
91
56
-338
3,054
769
222
-3,662
59
9,523
-13,244
27,433
13,048
751
-2,364
-7,523
362
1,661
-9,546
29,359
20,102
-3,021
1,547
-3,146
271
-6,667
3,250
11,388
6,665
-209
1,584
6,844
13
2,482
4,349
1,064
-1,874
80
217
-4.789
24
-1,596
-3,217
-2,943
494
-19
-10
2.509
26
258
2,225
11,166
10,855
4
-382
-3,122
4
-548
-2,578
-908
-2,486
-114
531
-3,839
16
-4,748
893
-3,988
-2,660
-130
69
1,415
89
1,261
65
-488
672
4
546
245
45
61
139
-4,918
367
9
618
2,469
1,502
199
565
190
666
-829
-782
42
-207
-194
0
221
151
70
36
30
6
-198
-158
-14
-335
-286
-9
-315
-333
-1
4
15
-10
46.570
4,123
42,447
-10,518
-9,861
-657
-17,520
11,367
-28,887
5,770
1,777
3,993
-17,092
-569
-16,523
14,484
6,403
8,081
-6,820
-1,405
-5,415
-17,597
-1,412
-16,185
-5,753
-639
-5,114
-90
449
-539
-16,554
2
2,207
0
6,092
0
170
0
283
0
811
0
572
0
859
0
267
0
217
0
3
4
5
6
7
8
9
10
11
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Japan
Africa
Other
20 Nonmonetary international and regional organizations
21
International
22
Latin American regional
-86
MEMO
23 Foreign countries
24
Official institutions
25
Other foreign
Oil-exporting countries
26 Middle East ~
27
1. Official and private transactions in marketable U.S, Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
A62
3.28
International Statistics • December 2000
FOREIGN E X C H A N G E RATES A N D I N D E X E S OF THE FOREIGN E X C H A N G E VALUE OF THE U.S. DOLLAR 1
Currency units per U.S. dollar except as noted
2000
May
June
July
Aug.
Sept.
Oct.
Exchange Rates
COUNTRY/CURRENCY UNIT
1
2
3
4
5
6
7
8
9
10
11
12
Australia/dollar 2
Austria/schilling
Belgium/franc
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro 3
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
13
14
15
16
17
18
19
20
21
22
23
Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar 2
Norway/krone
Portugal/escudo
24
25
26
27
28
29
30
31
32
33
34
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
Venezuela/bolivar
74.37
12.206
35.81
1.0779
1.3849
8.3193
6.6092
n.a.
5.1956
5.8393
1.7348
273.28
62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
n.a.
5.3473
5.8995
1.7597
295.70
64.54
n.a.
n.a.
1.8207
1.4858
8.2781
6.9900
1.0653
n.a.
n.a.
n.a.
306.30
57.84
n.a.
n.a.
1.8278
1.4957
8.2781
8.2329
0.9059
n.a.
n.a.
n.a.
371.63
59.49
n.a.
n.a.
1.8099
1.4770
8.2772
7.8501
0.9505
n.a.
n.a.
n.a.
354.14
58.70
n.a.
n.a.
1.7982
1.4778
8.2794
7.9471
0.9386
n.a.
n.a.
n.a.
359.04
58.08
n.a.
n.a.
1.8091
1.4828
8.2796
8.2459
0.9045
n.a.
n.a.
n.a.
372.97
55.21
n.a.
n.a.
1.8397
1.4864
8.2785
8.5849
0.8695
n.a.
n.a.
n.a.
389.67
52.80
n.a.
n.a.
1.8813
1.5125
8.2785
8.7276
0.8525
n.a.
n.a.
n.a.
398.29
7.7431
36.36
151.63
1,703.81
121.06
2.8173
7.918
1.9525
66.25
7.0857
175.44
7.7467
41.36
142.48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25
7.7594
43.13
n.a.
n.a.
113.73
3.8000
9.553
n.a.
52.94
7.8071
n.a.
7.7907
44.08
n.a.
n.a.
108.32
3.8000
9.506
n.a.
47.08
9.0533
n.a.
7.7934
44.76
n.a.
n.a.
106.13
3.8000
9.834
n.a.
47.05
8.6807
n.a.
7.7969
44.84
n.a.
n.a.
108.21
3.8000
9.419
n.a.
45.97
8.7185
n.a.
7.7995
45.77
n.a.
n.a.
108.08
3.8000
9.272
n.a.
44.52
8.9526
n.a.
7.7985
45.97
n.a.
n.a.
106.84
3.8000
9.362
n.a.
41.71
9.2331
n.a.
7.7977
46.43
n.a.
n.a.
108.44
3.8000
9.537
n.a.
40.01
9.3794
n.a.
1.4857
4.6072
947.65
146.53
59.026
7.6446
1.4514
28.775
31.072
163.76
488.87
1.6722
5.5417
1,400.40
149.41
65.006
7.9522
1.4506
33.547
41.262
165.73
548.39
1.6951
6.1191
1,189.84
n.a.
70.868
8.2740
1.5045
32.322
37.887
161.72
606.82
1.7286
7.0238
1,119.49
n.a.
74.867
9.0925
1.7190
30.772
38.951
150.90
680.00
1.7277
6.9147
1,117.94
n.a.
76.736
8.7471
1.6420
30.831
39.087
150.92
680.96
1.7414
6.8971
1,115.08
n.a.
78.852
8.9640
1.6519
30.984
40.318
150.76
685.86
1.7206
6.9570
1,114.47
n.a.
78.283
9.2771
1.7149
31.106
40.889
148.89
689.17
1.7406
7.1805
1,117.57
n.a.
78.731
9.6853
1.7586
31.198
41.992
143.36
690.39
1.7525
7.4902
1,131.10
n.a.
79.291
9.9930
1.7745
31.846
43.334
145.06
692.86
Indexes 4
NOMINAL
35 Broad (January 1997= 100)5
36 Major currencies (March 1973= 100) 6
37 Other important trading partners (January
1997= 100) 7
104.44
91.24
116.48
95.79
116.87
94.07
120.70
99.31
119.43
96.74
119.86
97.68
120.65
99.16
122.08
100.76
123.83
102.35
104.67
126.03
129.94
130.43
131.62
131.08
130.51
131.39
133.03
91.24
92.26
99.25
97.25
98.66
96.74 r
102.77
103.70
102.02 r
101.3 LR
102.46 r
102.42'
103.01
104.01 r
104.04 r
105.66 r
105.54
107.60
95.58
108.20
107.44
107.95
109.35
108.90 r
108.09 r
108.39 r
109.41
REAL
38 Broad (March 1973=100)'
39 Major currencies (March 1973= 100) 6
40 Other important trading partners (March
1973= 100) 7
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering address,
see inside front cover.
2. U.S. cents per currency unit.
3. As of January 1999, the euro is reported in place of the individual euro area currencies.
By convention, the rate is reported in U.S. dollars per euro. These currency rates can be
derived from the euro rate by using the fixed conversion rates (in currencies per euro) as
shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564
Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds
1936.27
40.3399
2.20371
200.482
166.386
Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
4. The December 1999 Bulletin contains revised index values resulting from the annual
revision to the trade weights. For more information on the indexes of the foreign exchange
value of the dollar, see Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18,
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.
A63
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
Issue
December 2000
Page
A72
Issue
Page
TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
September 30, 1999
December 31, 1999
March 31, 2000
June 30, 2000
February
May
August
November
2000
2000
2000
2000
A64
A64
A64
A64
Terms of lending at commercial banks
November 1999
February 2000
May 2000
August 2000
February
May
August
November
2000
2000
2000
2000
A66
A66
A66
A66
Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1999
December 31, 1999
March 31, 2000
June 30, 2000
February
May
August
November
2000
2000
2000
2000
A72
A72
A72
A72
Pro forma balance sheet and income statements for priced service
September 30, 1999
March 31, 2000
June 30, 2000
January 2000
August 2000
November 2000
A64
A76
A76
Residential lending reported under the Home Mortgage Disclosure Act
1998
1999
September 1999
September 2000
A64
A64
Disposition of applications for private mortgage
1998
1999
September 1999
September 2000
A73
A73
Small loans to businesses and farms
1998
1999
September 1999
September 2000
A76
A76
Community development lending reported under the Community Reinvestment Act
1998
1999
September 1999
September 2000
A79
A79
operations
insurance
64
Federal Reserve Bulletin • December 2000
Index to Statistical Tables
References are to pages A3-A62, although the prefix " " is omitted in this index.
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21
Federal Reserve Banks, 10
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21
Commercial and industrial loans, 15-21
Consumer loans held, by type and terms, 36
Real estate mortgages held, by holder and property, 35
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31, 61
Cost of living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4-6, 12
Deposits (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 5, 10
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 32
EMPLOYMENT, 42
Euro, 62
FARM mortgage loans, 35
Federal agency obligations, 5, 9-11, 28, 29
Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership of
gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37-41
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55-7, 59
Liabilities to, 51-4, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Consumer credit, 36
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
Investments (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)
A65
Loans (See also specific types)
Commercial banks, 15-21
Federal Reserve Banks, 5-7, 10, 11
Financial institutions, 35
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21, 35
Terms, yields, and activity, 34
Type and holder and property mortgaged, 35
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4-6, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
SAVING
Flow of funds, 37^41
National income accounts, 48
Savings deposits (See Time and savings deposits)
Savings institutions, 35, 36, 37—41
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 15-21, 27
Dealer transactions, positions, and financing, 29
Federal Reserve Banks holdings, 5, 10, 11, 27
Foreign and international holdings and transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
66
Federal Reserve Bulletin • December 2000
Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN,
Chairman
ROGER W . FERGUSON, JR., Vice
OFFICE
OF BOARD
Chairman
MEMBERS
EDWARD W . KELLEY, JR.
LAURENCE H . MEYER
DIVISION
OF INTERNATIONAL
FINANCE
LYNN S. FOX, Assistant to the Board
KAREN H . JOHNSON,
DONALD J. WINN, Assistant
DAVID H. HOWARD, Deputy
Director
VINCENT R. REINHART, Deputy
Director
to the
Board
WINTHROP P. HAMBLEY, Deputy Congressional Liaison
BOB STAHLY MOORE, Special Assistant to the Board
ROSANNA PIANALTO-CAMERON, Special Assistant to the Board
DAVID W. SKIDMORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL
DIVISION
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ANN E. MISBACK, Assistant General Counsel
SANDRA L. RICHARDSON, Assistant General Counsel
STEPHEN L. SICILIANO, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
OFFICE
OF THE
JENNIFER J . JOHNSON,
SECRETARY
Secretary>
BARBARA R. LOWREY, Associate Secretary and Ombudsman
DIVISION OF BANKING
SUPERVISION AND
REGULATION
RICHARD SPILLENKOTHEN,
Director
STEPHEN C. SCHEMERING, Deputy
Director
HERBERT A. BIERN, Associate
Director
ROGER T. COLE, Associate
Director
WILLIAM A. RYBACK, Associate
Director
GERALD A. EDWARDS, JR., Deputy Associate Director
STEPHEN M. HOFFMAN, JR., Deputy Associate Director
JAMES V. HOUPT, Deputy Associate Director
JACK P. JENNINGS, Deputy Associate Director
MICHAEL G. MARTINSON, Deputy Associate Director
SIDNEY M. SUSSAN, Deputy Associate Director
MOLLY S. WASSOM, Deputy Associate Director
HOWARD A . AMER, Assistant
Director
NORAH M . BARGER, Assistant
Director
BETSY CROSS, Assistant
Director
RICHARD A . SMALL, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Project Director,
National Information Center
DALE W. HENDERSON, Associate Director
THOMAS A. CONNORS, Deputy Associate Director
DONALD B. ADAMS, Senior Adviser
RICHARD T. FREEMAN, Assistant
Director
WILLIAM L. HELKIE, Assistant
Director
STEVEN B. KAMIN, Assistant
Director
RALPH W. TRYON, Assistant
Director
DIVISION
OF RESEARCH
DAVID J . STOCKTON,
AND
STATISTICS
Director
EDWARD C. ETTIN, Deputy
Director
WILLIAM R. JONES, Associate
Director
MYRON L. KWAST, Associate
Director
STEPHEN D. OLINER, Associate
Director
PATRICK M . PARKINSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
CHARLES S. STRUCKMEYER, Associate
Director
MARTHA S. SCANLON, Deputy Associate Director
JOYCE K. ZICKLER, Deputy Associate Director
Secretary
ROBERT DEV. FRIERSON, Associate
Director
WAYNE S. PASSMORE, Assistant
Director
DAVID L. REIFSCHNEIDER, Assistant
Director
JANICE SHACK-MARQUEZ, Assistant
Director
ALICE PATRICIA W H I T E , Assistant
Director
GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
THOMAS D . SIMPSON, Senior
DIVISION
OF MONETARY
DONALD L. KOHN,
Adviser
AFFAIRS
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Associate
Director
RICHARD D. PORTER, Deputy Associate
WILLIAM C. WHITESELL, Assistant
Director
Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF
CONSUMER
AND COMMUNITY
AFFAIRS
DOLORES S . SMITH,
Director
GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Assistant
Director
MAUREEN P. ENGLISH, Assistant
Director
ADRIENNE D. HLJRT, Assistant
Director
IRENE SHAWN M C N U L T Y , Assistant
Director
A67
EDWARD M . GRAMLICH
OFFICE OF
STAFF DIRECTOR
FOR
MANAGEMENT
STEPHEN R. MALPHRUS, Staff
MANAGEMENT
Director
DIVISION
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R. PAULEY, Associate Director, Human Resources
Function
SHEILA CLARK, EEO Programs
DIVISION
Director
OF SUPPORT
ROBERT E . FRAZIER,
OFFICE
Director
OF INFORMATION
RICHARD C . STEVENS,
TECHNOLOGY
Director
MARIANNE M . EMERSON, Deputy
Director
MAUREEN T. HANNAN, Associate
Director
TILLENA G. CLARK, Assistant
Director
GEARY L. CUNNINGHAM, Assistant
Director
Po KYUNG KIM, Assistant
Director
RAYMOND H. MASSEY, Assistant
SHARON L. MOWRY, Assistant
Director
Director
DAY W. RADEBAUGH, JR., Assistant
Director
PAUL W. BETTGE, Associate
Director
KENNETH D. BUCKLEY, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
JEFFREY C. MARQUARDT, Assistant
Director
EDGAR A. MARTINDALE, Assistant
Director
MARSHA REIDHILL, Assistant
Director
JEFF J. STEHM, Assistant
Director
BARRY R
DAVID L. WILLIAMS, Assistant Director
DIVISION
LOUISE L . ROSEMAN,
OPERATIONS
SERVICES
Director
GEORGE M . LOPEZ, Assistant
DIVISION OF RESERVE BANK
AND PAYMENT
SYSTEMS
Director
OF THE INSPECTOR
- SNYDER, Inspector
GENERAL
General
DONALD L. ROBINSON, Deputy Inspector
General
68
Federal Reserve Bulletin • December 2000
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN
MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN,
WILLIAM J. MCDONOUGH, Vice Chairman
Chairman
J. ALFRED BROADDUS, JR.
JACK G U Y N N
LAURENCE H . MEYER
ROGER W . FERGUSON, JR.
JERRY L . JORDAN
ROBERT T. PARRY
EDWARD M . GRAMLICH
EDWARD W . KELLEY, JR.
ALTERNATE
THOMAS M . HOENIG
MICHAEL H . MOSKOW
CATHY E . M I N E H A N
WILLIAM POOLE
MEMBERS
JAMIE B . STEWART, JR.
STAFF
DONALD L. KOHN, Secretary and Economist
CHRISTINE M . CUMMING, Associate
NORMAND R.V. BERNARD, Deputy
ROBERT A. EISENBEIS, Associate
Secretary
LYNN S. Fox, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
Economist
Economist
KAREN H . JOHNSON,
Economist
MARVIN S. GOODFRIEND, Associate
Economist
DAVID H. HOWARD, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
VINCENT R. REINHART, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
DAVID J. STOCKTON,
Economist
MARK S. SNIDERMAN, Associate
JACK H. BEEBE, Associate
Economist
Economist
PETER R. FISHER, Manager, System Open Market Account
FEDERAL
ADVISORY
COUNCIL
DOUGLAS A . WARNER III,
President
NORMAN R. BOBINS, Vice President
NORMAN R. BOBINS, Seventh District
KATIE S. WINCHESTER, Eighth District
R. SCOTT JONES, Ninth District
C. Q. CHANDLER, Tenth District
LAWRENCE K. FISH, First District
DOUGLAS A. WARNER III, S e c o n d District
RONALD L. HANKEY, Third District
DAVID A. DABERKO, Fourth District
L. M. BAKER, JR., Fifth District
RICHARD W. EVANS, JR., E l e v e n t h District
WALTER A. DODS, JR., T w e l f t h District
WILLIAM G. SMITH, JR., Sixth District
JAMES ANNABLE,
WILLIAM J. KORSVIK,
Co-Secretary
Co-Secretary
A69
CONSUMER
ADVISORY
COUNCIL
DWIGHT GOLANN, Boston, Massachusetts, Chairman
LAUREN ANDERSON, New Orleans, Louisiana, Vice Chairman
WALTER J. BOYER, D a l l a s , T e x a s
G W E N N S . KYZER, A l l e n , T e x a s
DOROTHY BROADMAN, S a n F r a n c i s c o , C a l i f o r n i a
JOHN C . LAMB, S a c r a m e n t o , C a l i f o r n i a
TERESA A . BRYCE, S t . L o u i s , M i s s o u r i
ANNE S. LI, Trenton, New Jersey
MARTHA W. MILLER, Greensboro, North Carolina
MALCOLM M . BUSH, C h i c a g o , I l l i n o i s
ROBERT M . CHEADLE, A d a , O k l a h o m a
DANIEL W . MORTON, C o l u m b u s , O h i o
M A R Y E L L E N DOMEIER, N e w ULM, M i n n e s o t a
JEREMY NOWAK, P h i l a d e l p h i a , P e n n s y l v a n i a
JEREMY D . EISLER, J a c k s o n , M i s s i s s i p p i
MARTA RAMOS, San Juan, Puerto Rico
ROBERT F. ELLIOTT, Prospect Heights, Illinois
DAVID L . RAMP, S t . P a u l , M i n n e s o t a
LESTER W . FIRSTENBERGER, H o p k i n t o n , M a s s a c h u s e t t s
RUSSELL W . SCHRADER, S a n F r a n c i s c o , C a l i f o r n i a
JOHN C . GAMBOA, S a n F r a n c i s c o , C a l i f o r n i a
ROBERT G . SCHWEMM, L e x i n g t o n , K e n t u c k y
VINCENT J. GIBLIN, West Caldwell, New Jersey
DAVID J. SHIRK, T a r r y t o w n , N e w Y o r k
KARLA S . IRVINE, C i n c i n n a t i , O h i o
GARY S . WASHINGTON, C h i c a g o , I l l i n o i s
WILLIE M . JONES, B o s t o n , M a s s a c h u s e t t s
ROBERT L . W Y N N II, M a d i s o n , W i s c o n s i n
M . D E A N KEYES, S t . L o u i s , M i s s o u r i
THRIFT
INSTITUTIONS
ADVISORY
COUNCIL
F. WELLER MEYER, Falls Church, Virginia, President
THOMAS S. JOHNSON, New York, New York, Vice President
JAMES C. BLAINE, Raleigh, North Carolina
CORNELIUS D . MAHONEY, W e s t f i e l d , M a s s a c h u s e t t s
LAWRENCE L . BOUDREAUX I I I , N e w O r l e a n s , L o u i s i a n a
KATHLEEN E . MARINANGEL, M c H e n r y , I l l i n o i s
TOM R. DORETY, Tampa, Florida
BABETTE E. HEIMBUCH, Santa Monica, California
A N T H O N Y J. POPP, M a r i e t t a , O h i o
WILLIAM A . LONGBRAKE, S e a t t l e , W a s h i n g t o n
CLARENCE ZUGELTER, Kansas City, Missouri
MARK H . WRIGHT, S a n A n t o n i o , T e x a s
70
Federal Reserve Bulletin • December 2000
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-127, Board of Governors of the Federal Reserve System,
W a s h i n g t o n , D C 2 0 5 5 1 , or t e l e p h o n e (202) 4 5 2 - 3 2 4 4 , or F A X
(202) 728-5886. You may also use the publications
order
form available
on the Board's World Wide Web site
(http://www.federalreserve.gov). When a charge is indicated, payment should accompany request and be made payable to the
Board of Governors of the Federal Reserve System or may be
ordered via Mastercard, Visa, or American Express. Payment from
foreign residents should be drawn on a U.S. bank.
BOOKS
AND MISCELLANEOUS
PUBLICATIONS
T H E FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1 9 9 4 . 1 5 7 pp.
A N N U A L REPORT, 1 9 9 9 .
ANNUAL REPORT: BUDGET REVIEW, 2 0 0 0 .
FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 5 . 0 0 p e r y e a r o r $ 2 . 5 0
each in the United States, its possessions, Canada, and
Mexico. Elsewhere, $35.00 per year or $3.00 each.
ANNUAL STATISTICAL DIGEST: period covered, release date, number of pages, and price.
October 1982
1981
239 pp.
$ 6.50
1982
December 1983
266 pp.
$ 7.50
264 pp.
1983
October 1984
$11.50
1984
254 pp.
October 1985
$12.50
1985
October 1986
231 pp.
$15.00
1986
November 1987
288 pp.
$15.00
272 pp.
1987
October 1988
$15.00
1988
November 1989
256 pp.
$25.00
712 pp.
1980-89
March 1991
$25.00
1990
November 1991
185 pp.
$25.00
November 1992
215 pp.
$25.00
1991
1992
December 1993
215 pp.
$25.00
281 pp.
1993
December 1994
$25.00
1994
December 1995
190 pp.
$25.00
404 pp.
$25.00
1990-95
November 1996
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF
CHARTS. Weekly. $30.00 per year or $.70 each in the United
States, its possessions, Canada, and Mexico. Elsewhere,
$35.00 per year or $.80 each.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
ANNUAL
PERCENTAGE
RATE
TABLES
(Truth
in
Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume
$5.00.
GUIDE
TO THE FLOW OF FUNDS ACCOUNTS. J a n u a r y
2000.
1,186 pp. $20.00 each.
FEDERAL RESERVE REGULATORY SERVICE. L o o s e - l e a f ;
updated
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per year.
Monetary Policy and Reserve Requirements Handbook. $75.00
per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. Four vols. (Contains all
four Handbooks plus substantial additional material.) $200.00
per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL
COMPUTERS. CD-ROM; updated monthly.
Standalone PC. $300 per year.
Network, maximum 1 concurrent user. $300 per year.
Network, maximum 10 concurrent users. $750 per year.
Network, maximum 50 concurrent users. $2,000 per year.
Network, maximum 100 concurrent users. $3,000 per year.
Subscribers outside the United States should add $50 to cover
additional airmail costs.
T H E FEDERAL RESERVE ACT AND OTHER STATUTORY PROVISIONS
AFFECTING THE FEDERAL RESERVE SYSTEM, a s a m e n d e d
through October 1998. 723 pp. $20.00 each.
T H E U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI-
COUNTRY MODEL, May 1984. 590 pp. $14.50 each.
INDUSTRIAL
PRODUCTION—1986
EDITION.
December
1986.
440 pp. $9.00 each.
FINANCIAL
FUTURES
AND OPTIONS
IN
THE
U.S.
ECONOMY.
December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-
SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A
JOINT CENTRAL BANK RESEARCH CONFERENCE. 1 9 9 6 .
578 pp. $25.00 each.
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
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
How to File a Consumer Complaint about a Bank
Making Sense of Savings
SHOP: The Card You Pick Can Save You Money
Welcome to the Federal Reserve
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
Keys to Vehicle Leasing
Looking for the Best Mortgage
A71
STAFF STUDIES: Only Summaries
Printed in the
BULLETIN
Studies and papers on economic and financial subjects that are of
general interest. Requests to obtain single copies of the full text or
to be added to the mailing list for the series may be sent to
Publications Services.
Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out
of print. Staff Studies 167-174 are available on line at
www.federalreserve.gov/pubs/staffstudies.
164. THE
1989-92
CREDIT
CRUNCH
FOR R E A L
ESTATE,
by
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE " O P E R A T I N G
PERFORMANCE" AND " E V E N T S T U D Y " METHODOLOGIES,
by Stephen A. Rhoades. July 1994. 37 pp.
1 7 0 . T H E COST OF IMPLEMENTING CONSUMER FINANCIAL R E G U LATIONS: A N ANALYSIS OF EXPERIENCE WITH THE T R U T H
IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey. December 1997. 17 pp.
1 7 1 . T H E COST OF B A N K REGULATION: A REVIEW OF THE E V I -
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 a n d
Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND M E D I U M - S I Z E D BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 35 pp.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM M O R T GAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n A .
Rhoades. February 1992. 11 pp.
DENCE, by Gregory Elliehausen. April 1998. 35 pp.
1 7 2 . USING SUBORDINATED D E B T AS AN INSTRUMENT OF M A R -
KET DISCIPLINE, by Study Group on Subordinated Notes
and Debentures, Federal Reserve System. December 1999.
6 9 pp.
1 7 3 . IMPROVING
PUBLIC DISCLOSURE
IN BANKING,
by
Study
Group on Disclosure, Federal Reserve System. March 2000.
3 5 pp.
1 7 4 . B A N K MERGERS AND BANKING STRUCTURE IN THE U N I T E D
STATES, 1 9 8 0 - 9 8 , by S t e p h e n R h o a d e s . A u g u s t 2 0 0 0 . 33 pp.
72
Federal Reserve Bulletin • December 2000
ANTICIPATED
SCHEDULE
THE FEDERAL
RESERVE
OF RELEASE
SYSTEM
DATES
(PAYMENT
Release number and title
FOR PERIODIC
RELEASES
MUST ACCOMPANY
Annual
USPS
rate
Annual
fax
rate
OF THE BOARD
OF GOVERNORS
Approximate
release
days 1
Period or date to
which data refer
Corresponding
Bulletin
table numbers 2
Weekly Releases
H.2.
Actions of the Board:
Applications and Reports
Received
$55.00
Friday
Week ended
previous
Saturday
H.3.
Aggregate Reserves of
Depository Institutions and
the Monetary Base 3
$20.00
Thursday
Week ended
previous
Wednesday
1.20
H.4.1. Factors Affecting Reserve Balances
of Depository Institutions and
Condition Statement of
Federal Reserve Banks 3
$20.00
Thursday
Week ended
previous
Wednesday
1.11, 1.18
H.6.
Money Stock and Debt
Measures 3
$35.00
Thursday
Week ended
Monday of
previous week
1.21
H.8.
Assets and Liabilities of
Commercial Banks in the
United States 3
$30.00
Friday
Week ended
previous
Wednesday
1.26A-E
H.10. Foreign Exchange Rates 3
$20.00
$20.00
Monday
Week ended
previous
Friday
3.28
H.15. Selected Interest Rates 3
$20.00
$20.00
Monday
Week ended
previous
Friday
1.35
5.00
First of month
Previous month
3.28
5.00
First Tuesday of
month
Previous month
1.35
Midmonth
Previous month
2.12, 2.13
Fifth working day
of month
Second month
previous
1.55, 1.56
End of month
Second month
previous
1.51, 1.52
Monthly Releases
G.5.
Foreign Exchange Rates 3
$ 5.00
G.13. Selected Interest Rates
$ 5.00
G.17. Industrial Production and
Capacity Utilization 3
$15.00
G.19. Consumer Credit 3
$ 5.00
G.20. Finance Companies
$ 5.00
5.00
OF
REQUESTS)
A73
Release number and title
Quarterly
Annual
USPS
rate
Annual
fax
rate
Approximate
release
days 1
Period or date to
which data refer
Corresponding
Bulletin
table numbers 2
Releases
E.2.
Survey of Terms of Business Lending
$ 5.00
n.a.
Midmonth of
March, June,
September, and
December
February, May,
August, and
November
E.7.
List of Foreign Margin Stocks
No charge
n.a.
March and
September
March and
September
E.ll.
Geographical Distribution of
Assets and Liabilities of
Major Foreign Branches of
U.S. Banks
$ 5.00
n.a.
15th of March,
June,
September, and
December
Previous quarter
E.15.
Agricultural Finance Databook
$ 5.00
n.a.
End of March,
June,
September, and
December
January, April,
July, and
October
E.16.
Country Exposure Lending
Survey
$ 5.00
n.a.
January, April,
July, and
October
Previous quarter
Z.l.
Flow of Funds Accounts
of the United States:
Flows and Outstandings 3
$25.00
n.a.
Second week of
March, June,
September, and
December
Previous quarter
4.23
1.57, 1.58,
1.59, 1.60
1. Please note that for some releases there is normally a certain variability in the release date 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.
2. The data in some releases are also reported in the Bulletin statistical appendix.
3. These releases are also available on the Board's World Wide Web site (http://www.federalreserve.gov) under Research and Data,
Statistical Releases and Historical Data.
n.a. Not available.
74
Federal Reserve Bulletin • December 2000
Maps of the Federal Reserve System
ALASk\
HAWAII
"
LEGEND
Both pages
•
Federal Reserve Bank city
•
Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A75
2-B
1 — A
5-E
4-D
3-C
Baltimore MD
Pittsburgh
Ml
vtFJ
NY
X
CT
JHMBKI
f
VT
NH
Bullaln
M A "
C r
'
^-RI
BOSTON
'
/
;
NY
sc:
N E W YORK
PHILADELPHIA
CLEVELAND
RICHMOND
S-H
7-G
IN
NC
• Charlotte
Cincinnati
/
„ •Nashville
KY
Ml
II-
W1
/
) IN
sville
Detroit •
IA
_ TN
AR
Jackson \ i lie
LA
New Orleans
II
• Memphis
IN
.
Miami
ATLANTA
CHICAGO
ST. LOUIS
9-1
,NI>
MN
• Helena
• • • H H I
Si>
•
W (
I^iwsiiiasil^pli "
MINNEAPOLIS
10-J
12-L
wy
hjm
CO
Omaha®
MO
•
9
Denver
NM
M \SK \
Seattle
1
•
(>klaluimu
Cit\
Portland
OK
OR
KANSAS CITY
• CA
NV
11-K
7
IX
•
—
•
San Antonio
FV
• L o s
I
(
Salt L?tke
Angeles
HAWAII
AZ
DALLAS
S A N FRANCISCO
City
76
Federal Reserve Bulletin • December 2000
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
William C. Brainard
William O. Taylor
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
Peter G. Peterson
Charles A. Heimbold, Jr.
Bal Dixit
William J. McDonough
Jamie B. Stewart, Jr.
Buffalo
14240
PHILADELPHIA
19105
Joan Carter
Charisse R. Lillie
Anthony M. Santomero
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
David H. Hoag
Robert W. Mahoney
George C. Juilfs
John T. Ryan III
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Jeremiah J. Sheehan
Wesley S. Williams, Jr.
George L. Russell, Jr.
Joan H. Zimmerman
John F. Wieland
Paula Lovell
D. Bruce Carr
William E. Flaherty
Kaaren Johnson-Street
Frances F. Marcum
Dwight H. Evans
Jack Guynn
Patrick K. Barron
Arthur C. Martinez
Robert J. Darnall
Timothy D. Leuliette
Michael H. Moskow
William C. Conrad
William Poole
W. LeGrande Rives
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
72203
40232
Memphis
38101
Mike P. Sturdivant, Jr.
55480
James J. Howard
Ronald N. Zwieg
William P. Underriner
Gary H. Stern
James M. Lyon
Jo Marie Dancik
Terrence P. Dunn
Kathryn A. Paul
Patricia B. Fennell
Gladys Styles Johnston
Thomas M. Hoenig
Richard K. Rasdall
Roger R. Hemminghaus
H. B. Zachry, Jr.
Beauregard Brite White
Edward O. Gaylord
Patty P. Mueller
Robert D. McTeer, Jr.
Helen E. Holcomb
Gary G. Michael
Nelson C. Rising
Lonnie Kane
Nancy Wilgenbusch
Barbara L. Wilson
Richard R. Sonstelie
Robert T. Parry
John F. Moore
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
Barbara L. Walter1
Barbara B. Henshaw
Robert B. Schaub
Susan S. Elliott
Charles W. Mueller
Diana T. Hueter
J. Stephen Barger
MINNEAPOLIS
Vice President
in charge of branch
William J. Tignanelli1
Dan M. Bechter1
James M. McKee
Andre T. Anderson
Robert J. Slack
James T. Curry III
Melvyn K. Purcell1
Robert J. Musso 1
David R. Allardice1
Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard
Samuel H. Gane
Carl M. Gambs 1
Kelly J. Dubbert
Steven D. Evans
Sammie C. Clay
Robert Smith III 1
James L. Stull 1
Mark L. Mullinix 2
Raymond H. Laurence1
Andrea P. Wolcott
Gordon R. G. Werkema 2
* Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President
A77
Index to Volume 86
GUIDE TO PAGE REFERENCES
Issue
January
February
March
April
May
June
IN MONTHLY
Text
1 - 80
81-160
161-250
251-300
301-366
367^140
ISSUES
"A" Pages
1-76
1-92
1-74
1-74
1-90
1-82
Index to
tables
66
76
64
64
76
64
The "A" pages consist of statistical tables and reference information.
Pages
ACCOUNTING POLICY, audits
735-7
All institutions estimate, calculation
716
Annual Report: Budget Review, 2000
653
Anticounterfeiting strategies
322
Articles
CRA special lending programs
711-31
Credit cards: use and consumer attitudes, 1970-2000
623-34
Domestic open market operations during 1999
511-37
Effects of recent mortgage refinancing
441-50
Federal Reserve Banks as fiscal agents and depositories
of the United States
251-9
Industrial production and capacity utilization:
1999 annual revision
188-205
Monetary policy reports to the Congress
161-87, 539-65
Mutual funds and the U.S. equity markets
797-812
Productivity developments abroad
665-81
Profits and balance sheet developments at U.S.
commercial banks in 1999
367-95
Recent changes in U.S. family finances: results from
the 1998 Survey of Consumer Finances
1-29
Treasury and Federal Reserve foreign
exchange operations
206-11, 396-99, 635-9, 813-7
U.S. bank exposure to emerging-market countries
during recent financial crises
81-96
U.S. international transactions in 1999
301-14
Assets, family
4
Assets, mutual fund
797-812
Auditor independence, statement
735-7
Automated clearinghouse transactions (ACH) — 40, 253, 466, 821
Automated teller machines, fee disclosures
653
Automobile production
192
Avery, Robert B., article
711-31
BANK FAILURES, statement
265-9
Bank for International Settlements
91
Bank holding companies, financial holding company,
procedures
219
Bank Holding Company Act of 1956
Applications approved under
ABN AMRO Bank, N.V., Amsterdam, The Netherlands .. 244
ABN AMRO Holding N.V., Amsterdam,
The Netherlands
244
ABN AMRO North America, Inc
244
Admiral Family Banks, Inc
708
Advantage Bancorp, Inc
789
Advantage Bankshares, Inc
435
Allegiant Bancorp, Inc
856
Almanij, N.V., Antwerp, Belgium
243
Issue
July
August
September
October
November
December
Text
441-538
539-622
623-664
665-710
711-796
797-860
"A" pages
1-74
1-88
1-90
1-78
1-94
1-92
Index to
tables
64
78
80
64
78
64
Statistical tables are indexed separately (see p. A64 of this issue).
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Alpena Banking Corporation
American Bancshares, Inc
American River Holdings
ANB Bankcorp, Inc
ANB Delaware Financial Corporation
ANB Financial Corporation
ANB Holdings, Inc
Anderson Bancshares, Inc
Andover Bancorp, Inc
Anita Bancorporation
Antioch Holding Company
Apalachicola State Banking Corporation
Ardmore Merger Corporation
Area Bancshares Corporation
Arvest Bank Group, Inc
73,
ASB Management Corp
Associated Banc-Corp
Associated Community Bancorp, Inc
Atlantic National Corporation
Avant Financial, LLC
Avoca Company
BancFirst Corporation
BancFirst Ohio Corp
Banco Bilbao Vizcaya Argentaria, S.A., Bilbao, Spain
Banco Santander Central Hispano, S.A.,
Madrid, Spain
Bancorp Rhode Island, Inc
Bancorp.com, Inc
BancWest Corporation
Bank of America Corporation
73, 154,
Bank of Kentucky Financial Corporation
Bank of Montreal, Chicago, Illinois
Bank of Montreal, Montreal, Canada
Bank of Montreal, Toronto, Ontario, Canada
Bank of New York Company, Inc
Bank of Whitman Employee Stock Ownership Plan
Bank One Corporation
Bankmont Financial Corp
Banknorth Group, Inc
Bankoelwein, Inc
Banque Nationale de Paris, Paris, France
Bar Harbor Bankshares
Barclays Bank, pic, London, England
Barclays, pic, London, England
Basile Bancshares, Inc
Bay Banks of Virginia, Inc
854
507
660
76
660
660
854
435
437
789
660
435
789
72, 618
240, 660
240
242
240
854
854
854
151
437
— 791
76, 240
435
615
295, 791
295, 791
508
856
154
348, 856
154, 706
298
788, 856
154, 348
151
615
240
242
297
297
854
76
78
Federal Reserve Bulletin • December 2000
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Bay National Corporation
435
Bayerische Hypo- und Vereinsbank AG,
Munich, Germany
243
Baytree Bancorp, Inc
347
BB&T Corporation
295, 791, 854
BBV Securities, Inc
791
Belvedere Capital Partners, LLC
240
Benchmark Bancorp, Inc
506
Berkshire Bancorp, Inc
297
BGC Bancorp, Inc
435
Big Mac Bancshares, Inc
854
Bob S. Prince Insurance Agency, Inc
153
BOE Financial Services of Virginia, Inc
506
BOK Financial Corporation
854
Bootheel Bancorp, Inc
243
Border Bancshares, Inc
436
Boston Private Financial Holdings, Inc
791
BostonFed Bancorp, Inc
76
BOU Bancorp
854
Branson Bancshares, Inc
347
Bremer Financial Corporation
242
Brookline Bancorp, Inc
436
Brookline Bancorp, MHC
436
Bruning Bancshares, Inc
240
Bryan Family Management Trust
241
Bryan-Heritage, Limited Partnership
241
Burton Bancshares, Inc
436
Burton Holdings, Inc
436
Business Bancorporation, Inc
506
Byron Bancshares, Inc
662
Caixa Geral de Depositos, S.A., Lisbon, Portugal
789
California Community Financial Institutions Fund,
Limited Partnership
240
Calvert Financial Corporation
295
Camden National Corporation
73
Capital Bancorp, Ltd
73, 347, 660, 706, 854
Cardinal Financial Corporation
436, 706
Castle Creek Capital Partners Fund I, LP
296, 615
Castle Creek Capital Partners Fund Ha, LP
296, 615
Castle Creek Capital Partners Fund lib, LP
296, 615
Castle Creek Capital, LLC
296, 615. 616
CB Bancshares
662
CBCT Bancshares, Inc
706
Centerstate Banks of Florida, Inc
296
Centra Financial Holdings, Inc
296
Central Banc, Inc
854
Central Financial Corporation
347, 506, 615, 854
Central Progressive Bancshares, Inc
297
Central Texas Bankshare Holdings, Inc
789
Central Valley Bancorp
660
Central Valley Community Bancorp
789
Centura Banks, Inc
346
Century Bancshares, Inc
660
Century South Banks, Inc
243, 296, 662
Cera Ancora, N.V., Leuven, Belgium
243
Cera Beheersmaatschappij, NV, Leuven, Belgium
76
Cera Foundation, VZW, Leuven, Belgium
243
Cera Holding, C.V., Leuven, Belgium
243
Cera Management, N.V., Leuven, Belgium
243
Cera Stichting, VZW, Leuven, Belgium
76
Chambers Bancshares, Inc
708
Charter Banking Corp
73
Chase Manhattan Bank
348
Chase Manhattan Bank Delaware
348
Chase Manhattan Corporation
151, 706
Cheaha Financial Group, Inc
660
Chesapeake Bancorp Employee Stock Ownership Plan
with 401 (k) Provisions
151
Chestatee Bancshares, Inc
241
China Trust Holdings, N.V., Curacao,
Netherlands Antilles
151
Citizens Bancshares, Inc
706
Citizens Bankshares, Inc
297
Citizens Community Bancorp, Inc
243, 791
Citizens Financial Corporation
615
Citizens Financial Group, Inc
706
City Savings Bancshares, Inc
615
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Cleveland Holding Company
151
Clintonville Bancshares, Inc
241
CNB Financial Services, Inc
663
Coastal Banking Company, Inc
151
ColoEast Bankshares, Inc
506
Colorado County Investment Holdings, Inc
789
Columbia Bancorp
296
Commerce Bancorp, Inc
76
Commerce Financial Corporation Employee Stock
Ownership Plan
792
CommerceFirst Bancorporation, Inc
615
Commercial Capital Corporation
508
Commerica Incorporated
705
Commfirst Bancorporation, Inc
707
Commonwealth Bancshares, Inc
296
Community Bancshares Spring Green and Plain, Inc
789
Community Bancshares, Inc
152
Community Bank Group, Inc
662
Community First Bancshares, Inc
73, 662
Community First Financial Corporation
662
Community First National Bank
73
Community Investment Group, Ltd
615
Community National Bancorporation
241
Community Pride Bank Corporation
506
CommunityOne BancShares, Inc
854
Compass Bancshares, Inc
72
Concord Bancshares, Inc
347
Concord EFS, Inc
243
Cornerstone Bancorp, Inc
789
Coronado Financial Corporation
854
Corpus Christi Bancshares, Inc
506
Cortez Investment Company
615
CorTrust Bank National Association
707
CountryBanc Holding Company
152
CPB, Inc
662
Crown Bankshares, Inc
347
CSB Bancshares, Inc.'s Amended Employee Stock
Ownership Plan
152
Cumberland Bancorp, Inc
152, 854
Cumberland Bancshares, Inc
707
Custer Bancorp
854
Dacotah Banks, Inc
241, 707
Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan ... 76, 789, 791
Dai-Ichi Kangyo Fuji Trust and Banking
Company, Ltd., Tokyo, Japan
789
Dakota Bancshares, Inc
297
Davis Trust Financial Corporation
347
Dentel Bancorporation
436
Deutsche Bank AG, Frankfurt am Main, Federal
Republic of Germany
154, 298
Deutsche Financial Services, Inc
298
Dinsdale Brothers, Inc
854
Downing Partnership, L.P.
615
Eagle Bancshares, Inc
76
EastBank Corporation
707
Eggemeyer Advisory Corp
615, 616
Eggemeyer Advisory, Inc
296
Ellingson Corporation
508
Ellis Bankshares, Inc
241
Elmer Bancorp, Inc
854
Employee Stock and Ownership Trust of First Grayson
Bancshares, Inc
73
Enterbank Holdings, Inc
616
eOneBanc Corp
616
ETN Leasing, Inc
436
Exchange Bankshares, Inc
298, 789
Exchange National Bancshares, Inc
152
F&A Financial Holding Company
296
F&M Financial Services, Inc
660, 856
F&M National Corporation
152
F.F. Holding Corporation
854
F.N.B. Corporation
73
FAB Merger Corporation
436
Fairfield Holdings
76
Farmers & Merchants Financial Services, Inc
789
Farmers and Merchants Bancshares, Inc
73, 789
Farmers and Merchants Investment, Inc
73
Index to Volume 86
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Farmers Bancshares, Inc
244
Farmers National Banc Corp
789
Fanners State Bank of Nebraska
854
FCB Bancorp, Inc
506
FCB Financial, Inc
707
Fentura Bancorp, Inc
152
Fidelity D & D Bancorp, Inc
154
First Ada Bancshares, Inc
152
First Bancshares Corporation
73, 660
First Bancshares, Inc
660
First Banks America, Inc
241, 855
First Banks, Inc
241, 437, 616, 855
First Business Bancshares, Inc
507
First Central Bancshares, Inc
616
First Charter Corporation
347
First Citizens Bancorporation of South Carolina, Inc
155
First Community Banc Holding Company
660
First Community Bancorp
296
First Delta Bankshares, Inc
73
First Farmers Financial Corporation
298
First Graham Bancorp, Inc
660
First Home Bancorp, Inc
707
First Interstate BancSystem, Inc
660
First Liberty Capital Corporation Employee Stock
Ownership Plan
855
First Manitowoc Bancorp, Inc
73
First Merchants Corporation
508, 662
First Minden Bancshares, Inc
73
First Mountain Company, KSOP Plan
296
First National Banc, Inc
76
First National Bancshares, Inc
241
First National of Nebraska, Inc
151, 155
First Niagara Financial Group, Inc
788
First Northern Community Bancorp
347
First Pryor Bancorp, Inc
152
First Rainsville Bancshares, Inc., Employee Stock
Ownership Plan
707
First Security Corporation
347
First Security Group, Inc
507, 616
First Security, Inc
660
First State Bancshares, Inc
618
First State Bank of Rushmore, KSOP Plan and Trust
241
First State Financial Corporation
73
First Sterling Bank, Inc
436
First Union Corporation
295, 705, 791
First Volunteer Corporation
791
First Western Bancorp, Inc
298
First-West Texas Bancshares, Inc
707
Firstbank Corporation
508, 616
Flathead Holding Company of Bigfork
790
FleetBoston Financial Corporation
706
Florida Community Bankshares, Inc
507
FMB Equibanc, Inc
707
FNB Bancorp
790
FNB Corp
295
FNB Financial Services, Inc
616
Franklin Bancorp, Inc., d/b/a Sunrise Community Banks .. 791
Frankston Bancorp, Inc
790
Frontier Financial Corporation
616
Fuji Bank, Limited, Tokyo, Japan
151
Fulton Financial Corporation
614
Futura Banc Corp
155
Futurus Financial Services, Inc
507
G.A.C., Inc
616
GB&T Bancshares, Inc
152
GBT Bancorp
76
General Savings Bank of Washington
152
German American Capital Corporation
298
Gideon Enterprises, L.P.
73
Glacier Bancorp, Inc
152
Glenwood Bancorporation
241
Gold Banc Acquisition Corp. XI, Inc
152
Gold Banc Acquisition Corp. XIII, Inc
152
Gold Banc Acquisition Corporation VIII, Inc
74
Gold Banc Acquisition Corporation XII, Inc
296
Gold Banc Corporation
74
Gold Banc Corporation, Inc
152, 296
A79
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Grace Investment Company
856
Graff Family, Inc
77
Grain Valley Bancshares, Inc
152
Grand Valley Corporation
241
GrandSouth Bancorporation
790
Grant County State Bancshares, Inc., Employees Stock
Ownership Plan
707
Great River Banshares Corporation
74
Greater Bay Bancorp
152, 436, 616, 790
Greenville First Bancshares, Inc
74
Gulf Coast Community Bancshares, Inc
241
Gwinnett Commercial Group, Inc
241
Hancock Park Acquisition, L.L.C
661
Hancock Park Acquisition, L.P.
661
Hanmi Financial Corporation
507
Harleysville Savings Financial Corporation
241
Hartford Financial Corporation
76
Heartland Bancshares, Inc
349, 618, 790
Heritage Bancshares, Inc
153
Heritage Commerce Corp
74, 707
Heritage Financial Holding Corporation
661
Heritage Group, Inc
661
Home Town Banking Corporation
616
Hometown Banc Corp
155
Hometown Bancorp, Ltd
76
Hopkins Financial Corporation
707
HSB Bancorp, Inc
296
HSBC Financing (Netherlands), London, England
706
HSBC Holdings, BV, Amsterdam, Netherlands
706
HSBC Holdings, PLC, London, England
706
HSBC North America, Inc
706
HSBC USA, Inc
706
Hunter Holding Company
241
IBT Bancorp, Inc
661
Ida Grove Bancshares, Inc
507
Independent Bankers Life Reinsurance Company
of Indiana, Ltd., Turks and Caicos Islands
298
Indiana Community Bancorp, Limited
706
298, 436
Indiana United Bancorp
Industrial Bank of Japan, Ltd., Tokyo, Japan
790
InsCorp, Inc
855
Integrity Bancshares, Inc
707
Inter-Mountain Bancorp, Inc
661, 790
Interbancorp
74
Interim First Capital Corporation
74
Intermountain First Bancorp
74
Intervest Bancshares Corporation
298
Iowa State Bank Holding Company
76, 349
Iowa State Financial Services Corporation
241, 243
Island Bancorp, Inc
616
Islands Bancorp
507
Jack and Katherine Dickey, Family Limited Partnership ... 707
JD Financial Group, Inc
74
Jonesboro Bancompany, Inc
662
JTB Bancshares, Inc
661
Kane Commerce Co
347
KBC Bank & Insurance Company, N.V.,
Brussels, Belgium
243
KBC Bank, N.V., Brussels, Belgium
243
Keene Bancorp, Inc., 401(k) Employee Stock
Ownership Plan & Trust
616
Klein Financial, Inc
349, 437
Lafayette Community Bancorp
790
Lake Michigan Financial Corporation
74
Lamar Capital Corporation
662
Landmark Financial Group, Inc
616
LandMark Financial Holding Company
153
Larch Bancorporation, Inc
76
Leackco Bank Holding Company, Inc
507
Leaders Group, Inc
347
Ledyard Bancorporation, Inc
616
Lewisville Bancorp, Inc
297
Lima Bancshares, Inc
618
Lisco State Company
507
Lizton Financial Corporation
708
M&F Bancorp, Inc
76
M&T Bank Corporation
708, 790
80
Federal Reserve Bulletin • December 2000
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Maham Beteiligungsgesellschaft, AG,
Zurich, Switzerland
707
Mahaska Investment Company, ESOP
616, 661
Main Street Trust, Inc
156
Maries County Bancorp, Inc
347, 436
Marion Bancshares, Inc
153
Marquette Bancshares, Inc
349, 437, 508
Marquette County Financial Corporation
855
Marshall & Ilsley Corporation
155
MBT Bancshares, Inc
153
McCook National Company
76
Mercantile Bancorp, Inc
855
Merchants & Manufacturers Bancorp
74
Merchants Merger Corp
74
Mesquite Financial Services, Inc
297
Mid State Banks, Inc
155, 437
Midland Bancshares, Inc
297
Midland States Bancorp, Inc
507
Miles Bancshares, Inc
74
Miles Independent Bancorporation, Inc
74
Minnwest Corporation
617
Monmouth Community Bancorp
617
MSB Financial, Inc
661
MSB Holding Company
349
Murphy-Payne Investments, Ltd
617
NASB Shares, Inc
617
National Bank of Greece, S.A., Athens, Greece
618
National Commerce Bancorporation
297, 348, 349,
508, 618, 662
National Westminster Bank, pic, London, England
155
NB Holdings Corporation
73, 295
NBG Bancorp, Inc
297
NBG International, Limited, London, England
618
NBM Corporation Employee Stock Ownership Plan
436
74, 436
NBT Bancorp, Inc
NCT Holdings, Inc
241, 243
Nebraska Bankshares, Inc
662
Network Bancorp, USA
153
Nevada Community Bancorp, Limited
347
New Frontier Bancshares, Inc
855
New Mexico First Financial, Inc
348
Niagara Bancorp, MHC
788
North American Bancshares, Inc
74
North Bay Bancorp
661
North Central Bancorp, Inc
77
North Georgia Community Financial Partners, Inc
617
North Street Finance, LLC
244
North Valley Bancorp
855
Northern Missouri Bancshares, Inc
297
Northern Plains Investment, Inc
74
Northern Trust Corporation
437, 708
NorthStar Bancshares, Inc
74, 348
Northwest Bancorporation, Inc
617
Northwest Financial Corp
661, 855
Norton Bancshares, Inc
153
Oak Financial, Inc
241
Ogden Bancshares, Inc
855
Ohio Legacy Corp
348
Old Kent Financial Corporation
346
Old National Bancorp
240
Olivia Bancorporation, Inc
297
Olympia Financial Corporation
708, 790
Olympic Equities Corporation
708
Omni Financial Services, Inc
348
Oswego Community Bank Employee Stock
Ownership Plan
507
Otto Bremer Foundation
242
Overton Merger Corporation
153
PAB Bankshares, Inc
76, 855
Pacific Capital Bancorp
617
Pacific Crest Capital, Inc
74
Pacific Mercantile Bancorp
297
Panola National Bancshares of Delaware, Inc
242
Panola National Bancshares, Inc
242
Paradigm Bancorporation, Inc
74
Park Meridian Financial Corporation
661
Park National Corporation
348
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Patapsco Bancorp, Inc
791
PCB Bancorp, Inc
855
Peoples Bancshares of Tallassee, Inc
153
Peoples Financial Group, Inc
661
Peregrine Corporation
153
Pierce County Bancorp
708
Pilot Bancorp, Inc
707
Pilot Grove Savings Bank Employee Stock
Ownership Plan
707
Pine Island Bancshares, Inc
298
Pinnacle Bancorp, Inc
242
Pinnacle Financial Partners, Inc
853
Plains Bancorp, Inc
661
PNC Bank Corp
76
Popular International Bank, Inc., Hato Rey, Puerto Rico . . 6 1 7
Popular North America, Inc
617
Popular, Inc., Hato Rey, Puerto Rico
617
Port Financial Corp
297
Praesidium Capital Corporation
153
Premier Bancorp, Inc
855
Premier Capital Corp
348
Prime Pacific Financial Services, Inc
855
Private Bancorp, Inc
619
Progress Bancshares, Inc
436
Provident Financial Group, Inc
77
Quality Bancshares, Inc
855
RBSG International Holdings, Ltd.,
Edinburgh, Scotland
706
Regal Bancorp, Inc
74
Regent Bancorp, Inc
507
Regions Financial Corporation
75, 617, 661
Republic Bancorp Co
349
Ridgeway Bancshares, Inc
242
Rivers Ridge Holding Company
242
Riverside Banking Company
662
Rockhold-Brown Bancshares, Inc
153
Royal Bank of Scotland Group, pic,
Edinburgh, Scotland
77, 706
Royal Bank of Scotland, pic, Edinburgh, Scotland
77, 706
RSB Financial, Inc
436
Ruff Partners, Ltd
153
S&C Banco, Inc
661
Sacramento Capital Co
242
Salem Community Bankshares, Inc
661
Scottsdale Bancorp
348
Shamrock Bancshares, Inc
507
Sherman County Management, Inc
243
Shorebank Advisory Services, Inc
790
Shorebank Corporation
790
SI Bancorp, Inc
617
Silicon Valley Bancshares
662
Skandinaviska Enskilda Banken, AB,
Stockholm, Sweden
155
Smith River Bankshares, Inc
153
SNB Bancorp, Inc
436
SNB Holdings, Inc
75
Societe Generale Investment Corporation
298
Societe Generale, Paris, France
298
Somerset Trust Holding Company, Inc
661
Sooner Southwest Bankshares, Inc
662
South Branch Valley Bancorp, Inc
153
South Central Bancshares of Kentucky, Inc
77
South Financial Group, Inc
507
Southern Financial Bancorp, Inc
155, 708
Southern Michigan Bancorp, Inc
790, 791
SouthernBank Holdings, Inc
507
Spectrum Bancorporation, Inc
242
Speed Bankshares, L.P.
617
St. Elizabeth Bancshares, Inc
75
Stamford Banco, Inc
662
Star Systems, Inc
347, 791
State Bank Hoxie Employee Stock Ownership Plan
617
State Bank of Cokato Employee Stock Ownership
Plan and Trust
75
State Bank of Cokato Employee Stock Ownership
Plan and Trust II
75
Index to Volume 86
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
State Bank of Slater Employee Stock Ownership
Plan & Trust
507
State National Bancshares, Inc
617
Steinauer Bancorp
153
Sterling City Bancshares, Inc
855
Sterling City Delaware Financial Corporation
855
Sterling Financial Corporation
617
Stichting Administratiekantoor ABN AMRO Holding,
Amsterdam, The Netherlands
244
Stichting Prioriteit ABN AMRO Holding, Amsterdam,
The Netherlands
244
Stockmens Financial Corporation
662
Sumitomo Bank, Limited, Osaka, Japan
856
Summit Bancorp
244, 706
Summitt Bank Corporation
349
Sun Community Bancorp, Limited
73, 347, 660, 854
Sunrise Capital Corporation
347
SunTrust Banks, Inc
295, 791
Susquehanna Bancshares, Inc
244, 349
SVB&T Corporation
619
Synovus Financial Corp
155, 437, 617
Team Financial Acquisition Subsidiary, Inc
75, 242
Team Financial Employees Stock Ownership Plan
242
Team Financial, Inc
75, 242
Tennessee Commerce Bancorp
436
Terre Haute Savings, M.H.C
436
Texas Capital Bancshares, Inc
662
Texas Independent Bancshares, Inc
75
Three Rivers Bancorp., Inc
348
Three Rivers Bankshares, Inc
617
Tompkins Trustco, Inc
75
Toronto-Dominion Bank, Toronto, Canada
244
Tradition Bancshares of Delaware, Inc
790
Tradition Bancshares, Inc
790
Tri County Investment Company, Inc
244
Troy Financial Corporation
507
Truman Bancshares, Inc
153
TrustBanc Financial Group, Inc
436
TrustCo Bank Corp. NY
508
Twenty-First Century Financial Services Company
153
U.S. Trust Corporation
242
UB Financial Corporation
855
UBS AG, Zurich and Basel, Switzerland ... 154, 155, 244, 349
Umpqua Holdings Corporation
155
Union Bancshares, MHC
617
Union Bankshares Company
791
United Bancshares, Inc
154
United Community Banks, Inc
508
United Financial Corp
154
United Financial Holdings Corporation
508
United Financial Holdings, Inc
244
U S B Bankshares, Inc
617
USBANCORP, Inc
437
Utah Bancshares, Inc
242
Uwharrie Capital Corporation
75, 856
Vail Banks, Inc
618
Valley Capital Corporation
618
Valley National Bancorp
708
Van Deusen Bancorp, Inc
297
VIB Corp
75
Virginia Commonwealth Financial Corporation
242
Vision Bancshares, Inc
348
Wachovia Corporation
239, 295, 508, 791
Walden Financial Group, Inc
156
Washington Trust Bancorp, Inc
619
Waumandee Bancshares, Ltd
437
Wells Fargo & Company ... 154, 156, 297, 348, 349, 618, 790
Westar Financial Services Corporation
437
Westborough Bancorp, M.H.C
75
Westborough Financial Services, Inc
75
Westdeutsche Landesbank Girozentrale,
Dusseldorf, Germany
244, 791
Western Acquisition Partners, L.P.
662
Western Acquisitions, L.L.C
662
Wewahitchka State Bank Employee Stock
Ownership Plan
297
Whitney Holding Corporation
242, 855
A81
Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Wilson and Muir Bancorp, Inc
75
Wintrust Financial Corporation
855
WJR Corp
296, 615, 616
Wyoming National Bancorporation, Inc
618
Zions Bancorporation
295, 659
Zumbrota Agency, Inc
298
Orders issued under
ABN AMRO Bank, NV, Amsterdam,
The Netherlands
56-61
ABN AMRO Holding NV, Amsterdam,
The Netherlands
56-61
Australia & New Zealand Banking Group, Limited,
Melbourne, Australia
695
Banco Comercial Portugues, S.A., Oporto, Portugal
593-5
Banco Espirito Santo, S.A., Lisbon, Portugal
418-20
Banco Popular, National Association
601
Banco Portugues do Atlantico (USA), Inc
593-5
Banco Portugues do Atlantico, S.A., Oporto, Portugal .. 593-5
Banque Nationale de Paris, Paris, France
118-22
Bayerische Hypo- und Vereinsbank, AG,
Munich, Germany
56-61
BB&T Corporation
116-8, 491-4
BCP-IF S.G.P.S., Lda, Lisbon, Portugal
593-5
Bespar-Sociedade Gestora de Participacoes Sociais, S.A.,
Lisbon, Portugal
418-20
BPA Internacional, S.G.P.S. Sociedade Unipessoal Lda,
Funchal, Madeira, Portugal
593-5
Brookline Bancorp, Inc.
52-4
Brookline Bancorp, MHC
52-4
Caisse Nationale de Credit Agricole, Paris, France
412
Canadian Imperial Bank of Commerce, Toronto, Canada .. 424
Centura Bank
232-7
Centura Banks, Inc
232-7
Charles Schwab Corporation
494-500
CIBC Delaware Holdings, Inc
424
CIBC World Markets Corporation, Toronto, Canada
424
CIBC World Markets, Inc., Toronto, Canada
424
Compass Bancshares, Inc
595-7
Compass Bank
595-7
Deutsche Bank AG, Frankfurt, Germany
56-61
Dime Bancorp, Inc
413-8
E.S. Control Holding, S.A., Luxembourg
418-20
E.S. International Holding, S.A., Luxembourg
418-20
Espirito Santo Financial (Portugal) Sociedade Gestora de
Participacoes Sociais, S.A., Lisbon, Portugal
418-20
Espirito Santo Financial Group, S.A., Luxembourg .... 418-20
Exchange Bancshares of Moore, Inc
115
First Bancorp
696-9
First National Corp. of Ardmore, Inc
225
First Security Corporation
122-40
FleetBoston Financial Corporation
751-66
FSF of Delaware, Inc
432
HSBC Finance Netherlands, London,
United Kingdom
140-50
HSBC Holdings, BV, Amsterdam, The Netherlands .... 140-50
HSBC Holdings, pic, London, United Kingdom
140-50
J.P. Morgan & Co., Incorporated
61-5
Mizuho Holdings, Inc., Tokyo, Japan
776-83
National Commerce Bancorporation
597-601
North Fork Bancorporation, Inc
226-30, 230-2, 767-76
Northern Star Financial, Inc
609
Old Kent Financial Corporation
223-5
Paribas, Paris, France
118-22
Peoples Heritage Financial Group, Inc
425-32
Popular International Bank, Hato Rey, Puerto Rico
601
Popular North America, Inc
601
Popular, Inc., Hato Rey, Puerto Rico
601
Republic National Bank of New York
140-50
Republic New York Corporation
140-50
Royal Bank of Scotland Group, pic,
Edinburgh, Scotland
655-8
Sanwa Bank, Limited, Osaka, Japan
54-6
SierraCities.com, Inc
432
Stichting Administratiekantoor ABN AMRO Holding,
Amsterdam, The Netherlands
56-61
Stichting Prioriteit ABN AMRO Holding,
Amsterdam, The Netherlands
56-61
82
Federal Reserve Bulletin • December 2000
Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
UBS AG, Zurich, Switzerland
61-5
UniCredito Italiano, S.p.A., Milan, Italy
825-8
Valley View Bancshares, Inc
420-4
Wells Fargo & Company
341-4, 500-3, 602-9,
828-32, 832-51
Westamerica Bancorporation
699
Zions Bancorporation
122^10
Bank Holding Company Supervision Manual
104, 585
Bank Merger Act
Applications approved under
AmSouth Bank
77, 349
AmTrade International Bank of Georgia
156
Arvest Bank
438, 856
Atlantic Bank
349
BancFirst
856
Banco Popular North America
619
Bank of Colorado
245, 509
Bank of Lancaster
856
Bank of Orange County
78, 619
Bank of Tazewell County
856
Bank of the Orient
856
Bank, The
438
Bankwest of Kansas
856
CalWest Bank
78
Citizens Bank
350
Citizens Trust Bank
350
CivicBank of Commerce
245, 299
Columbia Bank
156
Commerce Bank
856
Community Banks of Southern Colorado
857
Community State Bank
509
Compass Bank
77
CSB Bank
350
Dacotah Bank
509
Eastern Virginia Bankshares, Inc
509
Effingham State Bank
619
European American Bank
299
F&M Bank-Emporia
663
F&M Bank-Highlands
619
F&M Bank-Kaukauna
157
F&M Bank-Massanutten
619
F&M Bank-Northeast
157
F&M Bank-Winchester
619
First American Bank and Trust Company
857
First Arvest Bank
663, 857
First Liberty Bank and Trust
619
First State Bank
663
First Virginia Bank-Mountain Empire
509
FNB Southeast
509
Gold Bank
157, 245, 299
Grant County Bank
157
Harris Trust Bank of Montreal
509
HSBC Bank, USA
509
Investors Fiduciary Trust Company
792
Iron and Glass Bank
857
James River Bank
663
James River Bank/Colonial
663
Legacy Bank, ACB
438
M&I Marshall & Ilsley Bank
792
Manufacturers and Traders Trust Company
792
Merrill Merchants Bank
299
Mid State Bank
619
Midwest Bank of Western Illinois
157
Northern Neck State Bank
857
Old Kent Bank
349, 619
Patapsco Bank
792
Peapack-Gladstone Bank
78
Peninsula Trust Bank
857
People First Bank
509, 857
Peoples Bank and Trust Company
620
Pinnacle Bank, Aurora, Nebraska
792
Pinnacle Bank, Lexington, Nebraska
792
Pinnacle Bank, Papillion, Nebraska ... 245, 509, 620, 792, 857
Pinnacle Bank-Wyoming
857
Potomac Valley Bank
157
Ravalli County Bank
299
Somerset Trust Company
663
Pages
Bank Merger Act—Continued
Applications approved under—Continued
Springdale Bank & Trust
299
State Bank
792
SunTrust Bank, Atlanta
78
Union Trust Company
792
UnionBank/West
78
United States Trust Company of New York
245
Valencia Bank & Trust
78
Weldon State Bank and Trust
350
Wesbanco Bank Wheeling
158
Westamerica Bank
663
WestStarBank
620
Orders issued under
Chase Manhattan Bank
610-3
Highlands Union Bank
708
Manufacturers and Traders Company
708
Southern Financial Bank
708
SunTrust Bank
65-7
Bank mergers and banking structure in the United States,
1980-98, staff study
640
Bank Reserves Modernization Act of 2000, H.R. 4209
454-8
Banking industry and activities
Fraud
267
Private organizations
36
Public disclosure working group
409
Banks, U.S.
Claims on foreign counterparties
81-91
Exposure to emerging-market countries, article
81-96
Foreign operations
383
Safety and soundness standards
51
Basel Committee on Banking Supervision, risk management ... 742
Bassett, William F„ article
367-95
Benchmark Survey of U.S. Ownership of Foreign
Long-Term Securities, 1997
311
Best Practices for Credit Risk Disclosure
742
Bettge, Paul, promoted to Associate Director,
Division of Reserve Bank Operations and
Payment Systems
743
Board of Governors (See also Federal Reserve System)
Consumer Advisory Council
Meetings
276, 466, 742
New members
218, 466
Employees, ethical conduct standards
115
Final enforcement decisions and orders (See Litigation,
Final enforcement decisions and orders issued
by Board of Governors)
Index of orders and actions taken
71, 293, 505, 703-5
Information Technology Division, restructuring
164
Public web site, wireless access
686
Research and Statistics Division, restructuring
654
Staff changes
Bettge, Paul
743
Cunningham, Geary L
278
Dennis, Jack, Jr
743
Hannan, Maureen T
278
Ireland, Oliver
823
Martindale, Edgar A
221
Misback, Ann E
278
Mowry, Sharon L
278
Mulrenin, Edward T
278
Oliner, Stephen D
654
Passmore, Wayne S
654
Pianalto-Cameron, Rosanna
278
Prell, Michael J
411
Reifschneider, David L
654
Richardson, Sandra L
278
Siciliano, Stephen L
278
Stockton, David J
411
Struckmeyer, Charles S
654
Wilcox, David
654
Zickler, Joyce K
654
Thrift Institutions Advisory Council, new members
101
Book-entry securities
255
Borrowing practices by families
22-4
Bostic, Raphael W„ article
711-31
Brady, Peter J., article
441-50
Bulletin table, residential-mortgage originations, errata .... 743, 744
Business loans
369-72
Index to Volume 86
Business sector, economic developments
Businesses, private, and family assets
Pages
169-71, 545-8
18
CANNER, Glenn B„ articles
441-50, 711-31
Capacity utilization, article
194—7
Capital
Accounts, U.S
174, 313, 376
Flows, U.S
313, 552
Growth
668
Requirements, non-complex institutions
822
Spending
545
CEA (See Commodity Exchange Act)
Century Date Change (See Year 2000)
Chairmen and deputy chairmen, 2001, Federal Reserve Banks . 740
Check collection, electronic, proposal
742
Civil penalty adjustments
825
Coin demand
321
Coins and currency, statement
320-3
Commercial and industrial loans
369
Commercial bank
Balance sheet developments
370
Capital
375
Deposits
375
Income and expenses, tables
385-95
Interest income and expense
378
International operations
383
Liabilities
375
Noninterest expense and income
379
Profitability
377
Commercial Bank Examination Manual
410
Commercial banks, article on developments
367-95
Commodity Exchange Act (CEA)
269-71, 577-9
Commodity Futures Modernization Act of 2000,
statements
579, 644, 646-8
Commodity prices
303
Community Reinvestment Act (CRA)
Lending programs
711-31
Mortgage loans, profitability
721, 723
Regulations
712
Computer production
191
Conduct, ethical standards for Board employees
115
Consumer Advisory Council
Meetings
276, 466, 742
218, 466
New members
Consumer Handbook to Credit Protection Laws
409
Consumer price index (CPI)
556
Consumer protection
686, 822
Consumer spending
543
Counterfeiting, report
276, 322
CRA Sunshine Requirements, proposal
467
Credit card
Debt
623
Distribution
625
Solicitations, disclosure requirements
466, 741
Terms, consumer awareness
630-3
Credit cards: use and consumer attitudes, 1970-2000,
article
623-34
Crimes, financial in banking, statements
35-9, 267, 322
Cross-border claims
81-96
Cunningham, Geary L., appointed Assistant Director,
Division of Information Technology
278
Customer information security, proposal
583
DEBT
Credit card
623
Family
19, 25
U.S
180, 560
Debt Collection Improvement Act of 1996
253
Dennis, Jack, Jr., Assistant Director, Division of Reserve Bank
Operations and Payment Systems, retirement
743
Depository institutions
40, 101, 102, 114
Direct mail disclosure requirements
741
Directors, Federal Reserve Banks and Branches
353-65
Disclosures, Federal Open Market Committee
217, 288
Disclosures, public, by banks
Automated teller machine fees
653
CRA-related agreements
467
Credit and charge card solicitations
466
Electronic delivery
102
A83
Pages
Disclosures, public, by banks—Continued
Staff study
260
Working group
409
Discount rate
40, 51, 217, 289, 324, 339, 466, 475
Dollar, gold coin
277
Dollar, exchange value
304, 396-9
Domestic open market operations during 1999
511-37, 533
Domestic policy directives, FOMC
101, 111, 287, 329,
336, 337, 474, 511,
582, 592, 685, 740
Durkin, Thomas A., article
623-34
ECONOMIC DEVELOPMENTS, by sector
Business
169-71, 545-8
Financial markets
1 6 1 ^ , 178-80, 557-60
Foreign
173, 550
Government
172, 548-50
Household
167, 543
Labor markets
175, 552-5
Prices
177, 179, 555
Economy, U.S.
Foreign transactions
303
Monetary policy reports
161-87, 271-5,
539-65, 648-51
Projections
164, 273, 541
Education, needed improvements, statement
737-9
Electronic check presentment, proposal
742
Electronic Fund Transfers (Reg. E)
583, 653
Emerging-market countries, financial crises, article
81-96
Employment
552
Employment cost index
553
Enforcement actions (See Litigation, Final enforcement
decisions and orders issued by Board of Governors)
Engen, Eric M„ article
797-812
Equity
Capital, commercial banks
375
Family assets
18
Investment, merchant banking
583
Markets
405-8, 797-812
Prices
179, 559
Euro exchange value
206-11, 396-9, 635-9, 813-7
Export prices
307
Extensions of Credit by Federal Reserve Banks
(Reg. A)
51, 289, 339, 475
FEDERAL BUDGET POLICY
274
Federal Deposit Insurance Corporation Examination
Enhancement and Insurance Fund Protection Act
268
Federal funds rate
324, 466, 524
Federal Open Market Committee
Disclosure of procedures
217, 288
Discount rate, increase
40, 217, 324
Domestic policy directives
101, 111, 287, 329,
336, 474, 511, 582,
592, 685, 740
Foreign currency directives
331
Foreign currency operations
330
Meeting minutes
Oct. 5, 1999
44-9
Nov. 16, 1999
106-11
Dec. 21, 1999
283-8
Feb. 1-2, 2000
328-38
Mar. 21, 2000
469-74
May 16, 2000
587-92
June 27-28, 2000
688-93
Aug. 22, 2000
745-50
Notation vote, Legion of Honor award
685, 693
Federal Reserve Banks
Chairmen and deputy chairmen, 2001
740
Depositories and fiscal agents
251-9
Directors, list
353-65
Fee schedules
102, 220
Government payments processors
253
Operating income
220
Securities services
254-7
Tax collectors, federal funds
252
Federal Reserve System
Balances
513, 517
Hedge funds, supervision
313
84
Federal Reserve Bulletin • December 2000
Pages
Federal Reserve System—Continued
Required reserves
518
Federal Reserve System Study Group on Disclosure
260
Fees for Federal Reserve services to depository
institutions
102, 220
Fifty States Commemorative Quarter program
320-3
Finances, family, article
1-29
Financial crimes, statements
35-9, 267, 322
Financial crises, emerging-market countries, article
81-96
Financial holding companies
219, 324, 325, 652, 685
Financial markets
Economic developments
161-4, 178-80, 557-60
Mutual funds
804
Financial netting legislation
404, 647
Financial subsidiaries
326
Fisher index, weighted
193
Fisher, Peter R„ articles
206-11, 396-9, 511-37.
635-9, 813-7
Flood hazard areas, regulations on loans
113
Flow of Funds Accounts, Guide to, publication
327
Foreign banks, U.S. operations
821
Foreign currency operations, FOMC authorization
330
Foreign exchange operations, articles
206-11, 396-9,
635-9, 813-7
Foreign exchange, reserves
210
Foreign Money Laundering Deterrence and
Anticorruption Act
39
Foreign sector, economic developments
173, 182-7, 302,
550-2, 562-5
Foreign transactions in 1999, article
301-14
Fraud, banking organizations
35-9, 267, 322
Futures exchanges, U.S
578, 580, 644, 646
GILBERT, Charles, article
188-205
Golden Dollars
277
Goods and services, trade developments
305
Government sector, economic developments
172
Gramlich, Governor Edward M., predatory
lending statement
462-5
Gramm-Leach-Bliley Act
467, 569, 584, 823
Greenspan, Chairman Alan
Fourth four-year term
582
Statements
Commodity Exchange Act
269-71
Commodity Futures Modernization Act of 2000
579-81
Education, needed improvements
737-9
Equity markets
405-8
Monetary policy
271-5, 648-51
318-20
Social security and Medicare
Technological change and financial services
215
Guide to Business Credit for Women, Minorities, and Small
Businesses
410
Guide to Flow of Funds Accounts, publication
327
Gust, Christopher, article
665-81
H.R. BILLS
1161
578
3374, Federal Deposit Insurance Corporation Examination
Enhancement and Insurance Fund Protection Act
268
4209, Bank Reserves Modernization Act of 2000
454-8
4541, Commodity Futures Modernization Act
of 2000
577, 644. 64(^8
Hannan, Maureen T., promoted to Associate Director,
Division of Information Technology
278
Hearings, public
Predatory practices, home equity loans
652
Rules of Practice, Amendment to
825
Hedge funds, statement
404
Hillery, Paula V., article
251-9
Hilton, Spence, article
511-37
Home equity loans
374, 441-50, 463, 652
Home Mortgage Disclosure (Reg. C)
114
Home Ownership and Equity Protection Act of 1994
(HOEPA)
462, 652
Home-secured loans, predatory lending
462-5
Homes, building new
544
Household assets and loans
372, 800
Household sector, economic developments
167
Housing and Urban Development, U.S. Department of
463
Pages
Humphrey Hawkins Report (See Monetary Policy Reports
to the Congress)
IMPORT PRICES
308
Income
Commercial bank, tables
385-95
Family
2
Federal Reserve Banks
220
Industrial production and capacity utilization
Article
188-205
Index weights
193
Releases
32-4, 97-100, 212-4, 262-4,
315-7, 401-3, 451-3, 566-8,
641-3, 682-4, 732-4, 818-20
Revision
192
Tables
198-205
Information, personal, access
475, 490
Insurance policies and family savings
13
Insurance products, protection for consumers
686
Interagency Financial Institution Web Site
Privacy Survey Report
42
Interest income and expenses, commercial banks
378, 379
Interest rates
178, 386-95, 557-9
International Banking Act of 1978
Orders issued under
Banca Antoniana Popolare Veneta, S.c.p.a.r.l.,
Padua, Italy
783
Banca Intesa, S.p.A., Milan, Italy
433-5
Banca Sella, S.p.A., Biella, Italy
503-5
Banco Comercial Portugues, S.A., Oporto, Portugal
613
Banco Itaf S.A., Sao Paolo, Brazil
852
Banco Venezolano de Credito, S.A.C.A.,
Caracas, Venezuela
785
Bank Austria Aktiengesellschaft, Vienna, Austria
67-9
Caixa Economica Montepio Geral, Lisbon, Portugal
700-2
Chuo Mitsui Trust & Banking Co., Ltd., Tokyo, Japan .... 702
Deutsche Hyp Deutsche Hypothekenbank
Frankfurt-Hamburg AG, Frankfurt, Germany
658
Dexia Project and Public Finance International Bank,
Paris, France
289-91
E. Sun Commercial Bank, Limited, Taipei, Taiwan
238
291-3
Kookmin Bank, Seoul, Korea
National Bank of Egypt, Cairo, Egypt
344-6
Turkiye Is Bankasi, A.S., Ankara, Turkey
786-8
UBS AG, Basel, Switzerland
69
International developments, monetary policy
183-7, 562-5
International operations
301-14, 384
Internet privacy
42
Investment income
309, 311
Investments, inventory
546
IRA mutual funds
802
Ireland, Oliver, Associate General Counsel, resignation
823
KENNICKELL, Arthur B„ article
Keys to Vehicle Leasing: A Consumer Guide
Keys to Vehicle Leasing: A Consumer Resource
1-29
653
653
LABOR MARKETS, economic
developments
175, 552-5, 665, 668
Lehnert, Andreas, article
797-812
Leonard, Deborah L., article
206-11
Liabilities
19, 376
Litigation
Final enforcement decisions and orders issued
by Board of Governors
Barber, Adele
42, 79
Barber, Robert
42, 79
Benton, Oren L
439
Callahan, Matthew J
43, 79
Drummond, Charles A
220, 250
Incus Co., Ltd., Tortola, British Virgin Islands ... 246-50, 858
King, Solomon
220, 250
Korea Exchange Bank, Seoul, Korea
510
Laredo National Bancshares
246-50, 858
Malhotra, Vinay B., Tokyo, Japan
327, 351
Michaelessi, Lawrence
585, 621
Nelson, Carolyn D
793-5, 823
New Century Bank
326
Professional Bank
439
Index to Volume 86
Pages
Litigation—Continued
Final enforcement decisions and orders—Continued
R&T Foundation
351
Rhon, Carlos Hank
246-50, 858
Scott, Edward D
439
Sellers, James R
327, 351
Smith, Bertram
43, 79
Sunshine Financial
326, 351
Wall, Frederick K
326, 351
Woods, Christopher J
220, 250
Index of orders and actions taken
71, 293, 505, 703-5
Pending cases involving the Board of Governors,
lists of
78, 158, 245, 299,
350, 438, 510, 620,
663, 709, 792, 933
Termination of enforcement actions issued by Board of
Governors
Adairsville Bancshares, Inc
79
Banco Internacional, S.A., Mexico City,
Mexico
327, 351
Banco Nacional de Mexico, Mexico City,
Mexico
327, 351
Banco Santander, Madrid, Spain
327, 351
Bank of Adairsville
79
California Center Bank
79
Farmers & Merchants Bank
687
First Utah Bancorp
105, 159
First Utah Bank
105, 159
Mercantile Capital Corp
79
National Bank of Greece, S.A., Athens, Greece
687
National Mortgage Bank of Greece, S.A
687
PanAmerican Bank
79
Premier Data Corporation
105, 159
TransAlliance, L.P.
105, 159
Written agreements approved by
Arab American Bank
105, 159
Banco Bilbao Vizcaya Argentaria, S.A.,
Madrid, Spain
585, 621
Banco Bilbao Vizcaya, S.A
585
Banco Bilbao Vizcaya, S.A., Miami Agency
585
Banco Popular de Puerto Rico, Hato Rey,
Puerto Rico
326, 351
Banco Union, S.A.C.A
687, 709
Banco Union, S.A.C.A., Caracas, Venezuela
687, 709
Bank of New York
277, 300
Bay View Capital Corporation
823, 859
Citizens Deposit Bank and Trust
823, 859
Consolidated Bank and Trust Company
743, 759
Foxdale Bank
105, 159
Heritage Bancorp Company, Inc
43, 79
Independent Southern Bancshares, Inc
743
Independent Southern Bancshares, Inc., Employee
Stock Ownership Trust
New Century Bancorp
New Century Bank
Olathe Bancorporation, Inc
Olathe State Bank
Security Dollar Bank
United Bancshares, Inc
Unity Bancorp, Inc
Loan-to-deposit ratios of host states
Loans
Bank, adverse ratings on syndicated
Business
Commercial and industrial
CRA special program
Home equity
Performance, commercial banks
Local country claims
Love bug computer virus, statement
NATIONAL INCOME ACCOUNTING SYSTEMS
Netting,
financial
Notes and debentures, subordinated, staff study summary
Notes, Federal Reserve, high denomination
676
404, 647
30
322
OIL IMPORTS AND PRICES
303, 308
Oliner, Stephen D., promoted to Associate Director,
Division of Research and Statistics
654
Open market operations
511-37, 533
Over-the-counter derivatives
269, 404, 405, 577,
579, 644, 646
PARKINSON, Patrick M„ statements
644, 646-8
Passmore, Wayne S., appointed Assistant Director,
Division of Research and Statistics
654
Payday loans
324, 339
Personal information, access to
475, 490
Pianalto-Cameron, Rosanna, appointed Special Assistant
to the Board for Public Information
278
Predatory lending practices
462-5, 652
Prell, Michael J., Director, Division of Research and
Statistics, retirement
411
Priced services to depository institutions
102, 220
Prices, economic developments
177, 179, 555
Principles for the Management of Credit Risk
742
Privacy Act
490
Privacy of Consumer Financial Information
653, 664
653, 664
743, 795
743
327, 351
277, 300
686, 710
326
(Reg. P)
220,
Privacy
Consumer
On the web, report
Rules
Private sector operations (PSOs)
Productivity growth, article
Profitability, commercial banks
Proposed actions
Disclosures, electronic delivery
Financial holding companies, "finders"
Privacy of Consumer Financial Information (Reg. P) ...
Regulation E
Truth in lending (Reg. Z)
Public web site, Board of Governors, wireless access to
Publications
Activities review
Annual Report: Budget Review, 2000
Bank Holding Company Supervision Manual
Commercial Bank Examination Manual
Consumer Handbook to Credit Protection Laws
Guide to Business Credit for Women, Minorities,
and Small Businesses
Guide to Flow of Funds Accounts
Keys to Vehicle Leasing: A Consumer Guide
Keys to Vehicle Leasing: A Consumer Resource
MAKI, Dean M„ article
441-50
Malphrus, Stephen R., statement
459-62
Marquez, Jaime, article
665-81
Martindale, Edgar A., appointed Assistant Director,
Division of Reserve Bank Operations and
Payment Systems
221
Medicare programs, statement
318-20
Merchant banking activities
325, 569-77, 583
Pages
Meyer, Governor Laurence H., statements
Auditor independence
735-7
Bank failures
265-9
Bank Reserves Modernization Act of 2000
454-8
Merchant banking activities
569-77
Misback, Ann E., appointed Assistant General Counsel,
Legal Division
278
Monetary aggregates
181, 561
Monetary policy reports to the Congress
161-87, 271-5,
539-65, 648-51
Money growth
165, 181
Money laundering, statement
35-9
Money stock data, revision
278-82
Morin, Norman, article
188-205
Mortgage loans
CRA special programs
717
Debt
22, 544
Disclosure requirement
40
Refinancing
441-50
Mowry, Sharon L., appointed Assistant Director,
Division of Information Technology
278
Mulrenin, Edward T., Assistant Director, Division of
Information Technology, retirement
278
Mutual fund assets
12, 797-812
743, 859
42
369-72
372
711-31
372, 374, 462-5
377
81-96
459-62
A85
276, 467
220, 822
42
475-90
821
665-81
377
102
652
220, 276
583, 653
41, 466
686
41
653
104, 585
410
409
410
327
653
653
86
Federal Reserve Bulletin • December 2000
RADDOCK, Richard, article
Real estate loans
Real estate, family asset
Regulations (See also Rules)
Board of Governors
A, Extensions of Credit by Federal
Reserve Banks
51, 289,
C, Home Mortgage Disclosure
E, Electronic Fund Transfers
P, Privacy of Consumer Financial Information .. 220,
Z, Truth in lending
324, 339, 466,
Joint agency
Flood hazard areas, loans
Privacy rules
Safety and soundness standards
Reifschneider, David L., appointed Assistant Director,
Division of Research and Statistics
Required balances, Federal Reserve
Reserves, required
Residual interests, rules
Residential-mortgage originations table, errata
Retirement accounts and assets
Rhoades, Stephen A., staff study summary
Richardson, Sandra L., appointed Assistant General
Counsel, Legal Division
Risk analysis and management
Risk-based capital requirements
Roseman, Louise L., Director, Division of Reserve Bank
Operations, statement
Rules of Practice for Hearings, amendment
Rules Regarding Access to Personal Information
Under the Privacy Act
Rules, interim
Financial holding companies
Financial subsidiaries
Merchant banking activities
S. BILL, 2697, Commodity Futures Modernization
Act of 2000
Safety and soundness standards
Sarlo, Laura, articles
Savings bonds
Savings, family
Securities
Book-entry
Federal Reserve Bank services
Foreign long-term
Pages
188-205
373
15, 18
339, 475
114
583, 653
276, 467
740, 741
113
475
51
654
517
518, 524
741
743, 744
12, 802
640
278
266, 742
276
318-20
825
490
324, 325
325, 326
325, 570
579
51
396-9, 635-9
9, 257
3, 8-19
255
254-7
312
Investment accounts
374, 375
Savings bonds
257
Securitization activities, guidance
102
Shad-Johnson Accord
578
Shared National Credit (SNC) program
821
Siciliano, Stephen L., appointed Assistant General Counsel,
Legal Division
278
Single-stock futures
578, 580, 645, 647
Small, Richard A., statements
35-9
Social security, statement
318-20
Staff studies, summaries
Bank mergers and banking structure in the United States,
1980-98
640
Improving public disclosure in banking
260
Using subordinated debt as an instrument
of market discipline
30
Starr-McCluer, Martha, article
1-29
State and local government spending
550
Statements and testimony to the Congress (including
reports and letters)
Auditor independence (Governor Meyer)
735-7
Bank failures (Governor Meyer)
265-9
Bank Reserves Modernization Act of 2000
(Governor Meyer)
454-8
Coins and currency (Louise Roseman, Director,
Division of Reserve Bank Operations)
320-3
Commodity Exchange Act
Chairman Greenspan
269-71
Patrick M. Parkinson, Associate Director,
Division of Research and Statistics
577-9
Pages
Statements and testimony to the Congress—Continued
Commodity Futures Modernization Act of 2000
Chairman Greenspan
579-81
Patrick M. Parkinson, Associate Director,
Division of Research and Statistics
644, 646-8
Equity markets (Chairman Greenspan)
405-8
Hedge funds and OTC derivatives (Patrick M. Parkinson,
Associate Director, Division of Research and
Statistics)
404
Improving education (Chairman Greenspan)
737-9
Love bug computer virus (Stephen R. Malphrus,
Staff Director for Management)
459-62
Merchant banking activities (Governor Meyer)
569-77
Monetary policy (Chairman Greenspan)
271-5, 648-51
Money laundering (Richard A. Small, Assistant Director,
Division of Banking Supervision and Regulation)
35-9
Predatory lending (Governor Gramlich)
462-5
Social security (Chairman Greenspan)
318-20
Technological change and financial services (Chairman
Greenspan)
215
9, 12, 15
Stocks and family savings
Stockton, David J., appointed Director, Division of
Research and Statistics
411
Struckmeyer, Charles S., promoted to Associate Director,
Division of Research and Statistics
654
Study Group on Disclosure, Federal Reserve System
260
Study Group on Subordinated Notes and Debentures,
Federal Reserve System
30
Subordinated debentures, staff study
30
Supervisory Guidance for Managing Settlement Risk
in Foreign Exchange Transactions
742
Supplemental standards of ethical conduct for employees
of the Board
115
Surette, Brian J., article
1-29
Survey of Consumer Confidence, Y2K
103
Survey of Consumer Finances, article on results
1-29
Suspicious Activity Report (SAR) form, revised
584
System of National Accounts
676
System open market account, security holdings, tables
535-7
TAX COLLECTION, electronic
252
Tax payments, collected by Federal Reserve Banks
252
Technological changes in banking
273
Thompson, Stephen E., article
251-9
Thrift Institutions Advisory Council, new members,
appointments
101
Trade deficit, U.S
305, 550
Trade, goods and services
173, 305, 306
Transaction accounts and family savings
8
Treasury and Federal Reserve foreign exchange
operations, articles
206-11, 396-9, 635-9, 813-7
Treasury Direct system
256
Treasury, U.S. Department of the
251, 515
Trucks, light, production
192
Truth in lending (Reg. Z)
324, 339, 466, 740, 741
Truth in Lending Act
40, 462
UNILATERAL TRANSFERS
Use and Counterfeiting of United States Currency
Abroad, report
VEHICLES, family assets
WARNOCK, Francis E., article
Web site privacy, report
Wilcox, David, appointed Deputy Director, Division
of Research and Statistics
Wireless access, Board's public web site
Working Group on Public Disclosure
309
276
15
301-14
42
654
686
409
YEAR 2000
Business lending
372
Century date change, Treasury balance
515, 528
Financial markets at year-end
209
Preparations, consumer confidence
41, 103
Yen exchange value
206-11, 396-9, 635-9, 813-7
ZAKRAJSEK, Egon, article
Zickler, Joyce K., promoted to Deputy Associate Director,
Division of Research and Statistics
367-95
654
A87
Publications of Interest
FEDERAL
RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory func-
tions, the Board publishes the Federal Reserve Regulatory Service, a four-volume loose-leaf service containing all Board regulations as well as related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included is the Board's list of
foreign margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, BB, and DD,
and associated materials.
GUIDE
TO THE FLOW
OF FUNDS
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the service and $90 for each handbook.
The Federal Reserve Regulatory Service is also available on CD-ROM for use on personal computers. For a
standalone PC, the annual subscription fee is $300. For
network subscriptions, the annual fee is $300 for 1 concurrent user, $750 for a maximum of 10 concurrent
users, $2,000 for a maximum of 50 concurrent users,
and $3,000 for a maximum of 100 concurrent users.
Subscribers outside the United States should add $50
to cover additional airmail costs. For further information, call (202) 452-3244.
All subscription requests must be accompanied by a
check or money order payable to the Board of Governors of the Federal Reserve System. Orders should be
addressed to Publications Services, mail stop 127, Board
of Governors of the Federal Reserve System, Washington, DC 20551.
ACCOUNTS
A new edition of Guide to the Flow of Funds Accounts
is now available from the Board of Governors. The new
edition incorporates changes to the accounts since the
initial edition was published in 1993. Like the earlier
publication, it explains the principles underlying the
flow of funds accounts and describes how the accounts
are constructed. It lists each flow series in the Board's
flow of funds publication, "Flow of Funds Accounts of
the United States" (the Z.l quarterly statistical release),
The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers, and
risk-reduction policy. It includes Regulations CC, J, and
EE, related statutes and commentaries, and policy
statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for
and describes how the series is derived from source
data. The Guide also explains the relationship between
the flow of funds accounts and the national income and
product accounts and discusses the analytical uses of
flow of funds data. The publication can be purchased,
for $20.00, from Publications Services, Board of Governors of the Federal Reserve System, Washington, DC
20551.
88
Federal Reserve Bulletin • December 2000
Federal Reserve Statistical Releases
Available on the Commerce Department's
Economic Bulletin Board
The Board of Governors of the Federal Reserve System makes some of its statistical releases available to
the public through the U.S. Department of Commerce's economic bulletin board. Computer access
to the releases can be obtained by subscription.
For further information regarding a subscription to
the economic bulletin board, please call (202) 4821986. The releases transmitted to the economic bulletin board, on a regular basis, are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H.8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z.l
Flow of Funds
Quarterly
@FedFRASER