Full text of Federal Reserve Bulletin : December 2003

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Volume 89 • Number 12 • December 2003

Federal Reserve

BULLETIN

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



PUBLICATIONS COMMITTEE

Lynn S. Fox, Chair • Marianne M. Emerson • Jennifer J. Johnson • Karen H. Johnson
• Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Vincent R. Reinhart • Louise L. Roseman
• Dolores S. Smith • Richard Spillenkothen • 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 Publications Department under the direction of Lucretia M. Boyer.




Table of Contents
477 RECENT DEVELOPMENTS IN BUSINESS
LENDING BY COMMERCIAL
BANKS

After growing rapidly during much of the 1990s,
the real value of commercial and industrial
(C&I) loans at domestic commercial banks and
at U.S. branches and agencies of foreign banks
has fallen 19 percent since the beginning of
2001. The recent contraction in business loans
has been concentrated at large banking institutions and appears to stem from the combined effects of weak demand for credit and a
tightening of lending standards and terms. The
move toward a more-stringent lending posture,
although partly cyclical, also reflects a reassessment of the risks and returns of C&I lending.
This reassessment, in turn, is due partly to structural changes in the market, including the
increased participation of nonbank financial
institutions, the growth of the secondary loan
market, and the greater use of credit derivatives
by some banks.
493

ANNOUNCEMENTS

Vice Chairman Ferguson and Governor Bernanke take oaths of office

497 LEGAL

DEVELOPMENTS

Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A I FINANCIAL

AND BUSINESS

STATISTICS

These tables reflect data available as of
the first week of November 2003.
A 3 GUIDE TO TABLES

A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A44 International Statistics
A57 GUIDE TO SPECIAL TABLES AND
STATISTICAL
RELEASES
A 5 8 INDEX TO STATISTICAL

TABLES

A 6 0 BOARD OF GOVERNORS

AND

STAFF

A 6 2 FEDERAL OPEN MARKET COMMITTEE
STAFF; ADVISORY
COUNCILS
A64 FEDERAL RESERVE

BOARD

AND

PUBLICATIONS

Federal Open Market Committee statement
Approval of fee schedules for Federal Reserve
Bank priced services
Approval of modified method for imputing
priced-service income
Joint agencies announce proposed treatment of
expected and unexpected losses under the new
Basel Capital Accord
Release of minutes of Board's discount rate
meetings
Enforcement actions
Staff changes




A66 ANTICIPATED SCHEDULE OF RELEASE
DATES FOR PERIODIC
RELEASES
A68 MAPS OF THE FEDERAL
A 7 0 FEDERAL RESERVE
AND OFFICES
A 7 I INDEX TO VOLUME

RESERVE

BANKS,

89

SYSTEM

BRANCHES,

Recent Developments in Business Lending
by Commercial Banks
William F. Bassett and Egon Zakrajsek, of the Board's
Division of Monetary Affairs, prepared this article.
Jason Grimm and Steve Piraino provided research
assistance.

1. Real value of C&I loans at banks, 1988-2003
Billions of 1996 dollars

1,100

After growing rapidly during much of the 1990s, the
inflation-adjusted value of commercial and industrial (C&I) loans at domestic commercial banks and
at U.S. branches and agencies of foreign banks
has fallen 19 percent since the beginning of 2001
(chart l). 1 This striking decline in aggregate C&I
loans masks important differences in lending patterns
at domestically chartered institutions of different
sizes and at U.S. branches and agencies of foreign
banks. A drop in loans at large domestic commercial
banks and at foreign institutions accounts for the
entire contraction in C&I loans since January 2001.2
In contrast, the real growth rate of business loans
at small commercial banks, though it has declined
appreciably, has averaged almost 4 percent annually
since early 2001. The recent runoff in C&I loans
contrasts sharply with that of the early 1990s: The
earlier contraction in lending at large and small
domestic banks was more uniform and was partly
offset by a robust expansion of business loans at
foreign institutions (chart 2).
Although branches and agencies of foreign banks
are important participants in the C&I loan market,
1. C&I loans are business loans not secured by real estate.
2. Banks consist of 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). Banks exclude international banking facilities. The category of large domestic banks in the
Federal Reserve's weekly H.8 statistical release, "Assets and Liabilities of Commercial Banks in the United States," includes about forty
of the largest domestic commercial banks, which together account for
about 55 percent of assets held by all domestic banks. Domestic
institutions not included in the large bank category compose the small
bank category. 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 are also
adjusted to remove the estimated effects of mergers between these
two groups. For further details about the H.8 release, see
www.federalreserve.gov/releases/h8.




i

i

i
i i
i
1989
1991

i
i
1993

i
i
1995

i
i
1997

i
i
1999

i
i
2001

i
i
2003

i

NOTE. The data are monthly through October 2003 and are deflated by the
price deflator for business-sector output (1996 = 100). Here and in the
following charts, shaded bars represent recessions as dated by the National
Bureau of Economic Research. See also text note 2.
SOURCE. Federal Reserve Board, Statistical Release H.8, "Assets and Liabilities of Commercial Banks in the United States" (www.federalreserve.
gov/releases/h8); Bureau of Economic Analysis.

this article focuses on business lending at domestic
institutions, for two reasons.3 First, U.S. branches and
3. For further discussion of foreign banking organizations, see
Allen N. Berger and David C. Smith, "Global Integration in the
Banking Industry," Federal Reserve Bulletin, vol. 89 (November
2003), pp. 4 5 1 - 6 0 .

2. Real growth rate of C&I loans,
by type of bank, 1988-2003
Percent

NOTE. The data are monthly through October 2003; change is for twelve
months. See also text note 2.

478

Federal Reserve Bulletin • December 2003

agencies compete most directly with large domestic
banks for customers in the C&I loan market. Therefore, the factors that depressed lending at large
domestic banks over the past three years likely
exerted a similar influence on foreign institutions.
Second, the analysis of business lending at branches
and agencies of foreign banks is complicated by the
pronounced downward trend in their share of C&I
loans (chart 3). The reduced intermediation by foreign institutions since the mid-1990s has been due
largely to a sharp pullback in business lending by the
U.S. branches and agencies of Japanese banks, many
of which are saddled with a substantial volume of
nonperforming loans and face significant pressures
on their capital positions.
The divergence between large and small domestic
commercial banks in the growth of business loans
over the past three years appears to stem from the
combined effects of weakness in demand for C&I
loans from larger businesses and a relatively greater
tightening of supply conditions at large banks.
Although sharp cutbacks in capital spending and
steep inventory runoffs since early 2001 have significantly reduced demand for C&I loans from borrowers of all sizes, the decline in loan demand from
larger corporate borrowers—which maintain lending
relationships mainly with large banks—has been
especially pronounced. The reduction in demand for
business loans from larger firms has been exacerbated by an evaporation of merger and acquisition
(M&A) activity and a substitution of bond finance for
bank loans on firms' balance sheets. On the supply
side, large commercial banks tightened their credit
standards and began imposing more stringent loan
terms well before the recent economic downturn.

These institutions further tightened their commercial
credit policies as the economy slipped into recession
and as a substantial deterioration in the credit quality
of their borrowers pushed delinquencies and chargeoffs on C&I loans to high levels.
The move toward a more stringent lending posture
by domestic commercial banks before and during the
recent economic downturn, although partly cyclical,
has also been influenced by a reassessment of the
risk-return tradeoff inherent in C&I lending, especially relative to the lax lending atmosphere of the
mid-1990s. These structural changes in the way commercial banks price and allocate certain forms of
business credit likely represent the cumulative effect
of significant institutional developments in the C&I
loan market since the late 1980s. In large part, these
developments have arisen from the increased participation of nonbank financial institutions in the syndicated loan market, which in turn has contributed
importantly to the growth of the secondary loan market and of leveraged lending—that is, lending to
large below-investment-grade borrowers. To the
extent that these markets are almost exclusively provinces of large financial institutions, the reassessment
of the attractiveness of syndicated and some forms
of traditional C&I lending has disproportionately
affected large commercial banks and has contributed
to the divergence in business lending patterns
between large and small domestic banks.
In contrast to C&I loans, other forms of credit at
domestic commercial banks have flowed relatively
freely during the past several years. Although the
growth of real bank credit declined notably during
the 2001 recession, it did not fall as low as it did
in the early 1990s, and its recovery has been much

3. Share of C&I loans held by U.S. branches and
agencies of foreign banks, 1988-2003

4. Change in real value of bank credit, 1988-2003

NOTE. The data are monthly through October 2003.
SOURCE. Federal Reserve Board, Statistical Release H.8.




NOTE. The data are monthly through October 2003 and are deflated by the
GDP price deflator (1996 = 100); change is for twelve months.
SOURCE. Federal Reserve Board, Statistical Release H.8.

Recent Developments in Business Lending by Commercial Banks

5. Measures of bank profitability, 1985-2003:Q3
Percent

16
^

Percent

—

1.4
Return on equity

12 —

,

10 —

\

\

8

—

'\

6

—

\\ //

4 —
2 —

W

*

—
1

1

1

1985

1

1

1.2

—

1.0

—

.8

—

.6

/ /

\

+
0

Return on assets

—

1

1988

1

1 1

1

1991

1

1

1994

1

i

1

1997

1

1 1

I

2000

1

—

.4

—

.2

—

0

1

+

brisker (chart 4). In this cycle, bank credit has been
buoyed by a substantial expansion of banks' real
estate portfolios and holdings of mortgage-backed
securities. At the same time, the growth of consumer
spending has held up well, allowing commercial
banks to continue increasing their holdings of credit
card and other types of consumer loans. Partly as a
result of the robust lending to households, a resilient
commercial real estate loan market, and growth in
6. Regulatory capital ratios, 1990-2003:Q3
Percent

1995

1997

1999

2001

THE

DEMAND

Between 1997 and 2000, spending on capital equipment by businesses boomed. As a result, the gap
between capital expenditures and internally generated funds for the nonfarm nonfinancial corporate
sector—relative to the output of the sector—shot up
from IV2 percent at the end of 1997 to more than
4 percent at its peak in 2000 (chart 7). Concomitantly,
the bull market in equities supported a frenzied pace
of mergers and acquisitions, for many of which commercial banks provided initial financing. Not surprisingly, the expansion of C&I loans at both large and
small domestic commercial banks reached doubledigit annual rates over this period.
The strong pace of corporate spending, however, proved unsustainable, and companies sharply
reduced their capital expenditures as the economy
entered recession in March 2001. Firms also responded
quickly to falling sales by curtailing production to

2003

NOTE. Regulatory capital ratios are seasonally adjusted. Tier 1 capital
consists primarily of common equity (excluding intangible assets such as
goodwill and net unrealized gains on investment account securities classified
as available for sale) and certain perpetual preferred stock. Tier 2 capital
consists primarily of subordinated debt, preferred stock not included in tier 1
capital, and loan-loss reserves. Total capital is tier 1 plus tier 2 capital.
Risk-weighted assets are calculated by multiplying the amount of assets and
the credit-equivalent amount of off-balance-sheet items (an estimate of the
potential credit exposure posed by the item) by the risk weight for each
category. The risk weights rise from 0 to 1 as the credit risk of the assets
increases. The leverage ratio is the ratio of tier 1 capital to average tangible
assets. Tangible assets are equal to total assets less assets excluded from
common equity in the calculation of tier 1 capital.
SOURCE. Call Report.




FACTORS AFFECTING
FOR C&I LOANS

7. Financing gap at nonfarm nonfinancial
corporations, 1988-2003:Q2

Total (tier 1 + tier 2) ratio

1993

fee-generating lines of business, commercial banks
have remained highly profitable despite an increase
in loan losses, especially on C&I loans (chart 5).
Thus, in sharp contrast to the circumstances of the
early 1990s and despite some restrictions on the
supply of business credit from large domestic commercial banks, the banking sector has remained well
capitalized and is poised to support growth in demand
for business loans (chart 6).

1

2003

NOTE. The return on equity and the return on assets are annual; for 2003,
they are estimates based on seasonally adjusted data through 2003:Q3.
SOURCE. Call Report.

1991

479

U

!

1

1989

1

I

1991

I

I

1993

I

i

1995

i

I

1997

!

I

1999

1

I

2001

I

I

1

2003

NOTE. The data are annual through 2002; for 2003, they are estimates
based on data through 2003 :Q2. The financing gap is the difference between
capital expenditures and internally generated funds, expressed as a fraction of
output by the nonfarm nonfinancial corporate sector.
SOURCE. Federal Reserve Board, Statistical Release Z.l, "Flow of Funds
Accounts of the United States," table L.101 (www.federalreserve.gov/
releases/zl).

480

Federal Reserve Bulletin • December 2003

avoid an accumulation of inventories and associated
financing costs. Compounding the reduction in
demand for business credit, especially at large banks,
was the steep drop in equity prices, which largely
short-circuited M&A activity. With capital spending
and merger activity dropping off, extensions of loans
slumped. A sluggish recovery in an uncertain economic climate did little to lift business fixed investment in 2002, and businesses lacked an incentive to
rebuild depleted inventory stocks. Although capital
spending has picked up in 2003, a rebound in corporate profits, partly reflecting robust gains in productivity, has limited firms' needs for external funds. As
a result, the financing gap has remained at its preboom level. Credit demands to finance mergers and
acquisitions have also remained weak despite a substantial rise in equity prices in 2003.
The cyclical fluctuations in demand for C&I loans
are evident in the responses to the Federal Reserve's
Senior Loan Officer Opinion Survey on Bank Lending Practices (informally, the bank lending practices survey, or BLPS). 4 According to the survey, the
demand for C&I loans from small firms, as well as
middle-market and large firms, has weakened continuously since the middle of 2000 (chart 8). Moreover, the reported weakening in demand has persisted
considerably longer after the official end of the most
recent recession than it did after the cyclical trough in
March 1991.
4. For text of questions and tallies of responses in surveys conducted since the beginning of 1997, see www.federalreserve.gov/
boarddocs/SnLoanSurvey.

8. Net percentage of banks reporting stronger demand
for C&I loans, by size of borrower, 1991:Q4-2003:Q4

9. Change in real spending on equipment and software
and the net percentage of banks reporting stronger
demand for C&I loans as a result of increased capital
expenditures, 1997:Q 1-2003 :Q4

Reporting stronger demand

i I i i i I i i i I i i i I i i i I

1997

1998

1999

2000

1 i i i I i i i 1 i I

2001

2002

2003

NOTE. The data are quarterly; change is for four quarters. Net percentage is
the percentage of banks reporting stronger demand because of increased
capital expenditures less the percentage reporting weaker demand because of
reduced capital expenditures.
SOURCES. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices; Bureau of Economic Analysis.

A detailed look at the fluctuations in demand for
C&I loans is possible from 1997 onward because
respondents to the BLPS have been queried regularly
since then about the factors affecting demand for
business loans at their banks. Consistent with the
retrenchment in investment spending, the most cited
reason for the reported decline in demand at respondent banks since the end of 2000 has been a decrease
in their customers' capital expenditures (chart 9).
10. Change in real nonfarm inventories and the net
percentage of banks reporting stronger demand
for C&I loans as a result of increased inventory
financing needs, 1997:Q4-2003:Q4
Percent

Percent

Inventories
Reporting stronger demand

+

Large and
middle-market

0 —

I I i

NOTE. The data are quarterly. Net percentage is the percentage of banks
reporting stronger demand less the percentage reporting the opposite. The
definition for firm size sugggested for, and generally used by, survey
repondents is that large and middle-market firms have sales of more than
$50 million.
SOURCE. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices.




1997

1998

1999

2000

2002

I I I I I I

1

2003

NOTE. The data are quarterly; change is for four quarters. Net percentage is
the percentage of banks reporting stronger demand because of increased
inventory financing needs less the percentage reporting weaker demand
because of reduced inventory financing needs.
SOURCE. See source note to chart 9.

Recent Developments in Business Lending by Commercial Banks

11. Net equity retirements by domestic corporations and
the net percentage of large banks reporting stronger
demand for C&I loans as a result of increased M&A
financing needs, 1998:Q1-2003:Q4

NOTE. The data are quarterly; change is for four quarters. In 1998, large
banks were those with assets of more than $15 billion; since 1999, large
banks have been those with assets of more than $20 billion. Net percentage is
the percentage of banks reporting stronger demand because of increased
M&A financing needs less the percentage reporting weaker demand because
of reduced M&A financing needs.
SOURCES. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices; Securities Data Company.

Similarly, the sharp inventory runoff since early 2001
is closely correlated with the net percentage of survey
respondents that reported a reduction in inventoryrelated financing needs (chart 10). On average, about
half the largest banks on the survey panel—the institutions most likely to fund large M&A deals—
indicated that their customers' needs for this type
of financing had decreased over the past three years
(chart 11). These responses correspond reasonably
well with movements in retired equity of domestic nonfinancial corporations—a proxy for M&A

481

activity—and support the view that large banks experienced a relatively bigger drop in C&I loan demand
than did small banks.
Another factor contributing to the weakness in
demand for business loans since 2001 has been heavy
corporate bond issuance, as firms have substituted
longer-term debt for short-term debt obligations, such
as C&I loans and commercial paper (chart 12). The
runoff in commercial paper significantly reduced the
demand for commercial paper backup lines of credit,
which are provided mainly by large commercial
banks. 5 Accordingly, firms' preference for longerterm, public-market debt partly reduced the unused
lines of credit at commercial banks (chart 13).
Firms' decisions to lengthen the average maturity
of their outstanding debt was importantly influenced
by substantial declines in longer-term interest rates
in 2001 and 2002 (chart 14). In addition, ratings
agencies and investors reportedly pressured some
large corporations to strengthen their balance sheets
by reducing their reliance on short-term debt. The
restructuring of firms' balance sheets is reflected in
the sharp drop in the ratio of short-term debt to total
debt outstanding from almost 40 percent in 1999 to
about 30 percent in the second quarter of 2003
(chart 15).
5. In assigning a credit rating to an issuer of commercial paper,
public rating agencies take into account the borrower's general credit
quality as well as the borrower's ability to obtain from a financial
institution a line of credit that can be used to retire maturing paper in
the event that it cannot be rolled over. Firms have a strong incentive
to issue highly rated commercial paper because money market mutual
funds—the primary holders of these securities—can hold only a
limited amount of lower-rated commercial paper.

13. Change in the amount of real unused business
credit lines at U.S. commercial banks,
1991 :Q2-2003:Q3

12. Major components of net business
financing, 1992-2003
Billions of dollars

I
1993

1995

1997

I

I
1999

I

I

I I
2001

I

I

1 I

I

I

2003

NOTE. Beginning in 2000, the data are semi-annual and are at seasonally
adjusted annual rates. The data for 2003:H2 are projected from data through
October.




NOTE. The data are quarterly and are deflated by the price deflator for
business-sector output (1996 = 100); change is for four quarters.
SOURCE. Call Report.

482

Federal Reserve Bulletin • December 2003

14. Corporate bond yields, by rating, 1989-2003
Percent

2
1989

1991

1993

1995

1997

1999

2001

2003

NOTE. The data are monthly averages through October 2003. The AA and
BBB rates are calculated from bonds in the Merrill Lynch AA index and
BBB index, respectively, with seven to ten years of maturity remaining. The
high-yield rate is the yield on the Merrill Lynch 175 high-yield index.

Commercial real estate lending may also have
helped reduce demand for C&I loans. Over the past
several years, nonresidential construction activity has
decelerated significantly, office vacancy rates have
increased, and commercial rents have declined.
Nonetheless, this type of lending has been surprisingly well maintained during the recent cycle, and
delinquency and charge-off rates on commercial real
estate loans have risen only moderately from very
low levels. The continued growth of commercial real
estate loans may be due to efforts by some firms to
lock in low long-term interest rates by substituting
fixed-rate loans backed by real estate for traditional
business loans, which typically have shorter maturities and carry floating rates. Indeed, according to the
15. Ratio of short-term debt to total credit-market debt
for nonfarm nonfinancial corporations, 1988-2003:Q2
Percent

J

I

1989

I

I

1991

1

J

1993

I

I

1995

I

L J

1997

L
1999

I
2001

I

I

I

1

2003

NOTE. The data are annual through 2002; for 2003, they are estimates
based on data from 2003:Q2.
SOURCE. Federal Reserve Board, Statistical Release Z.l, "Flow of Funds
Accounts of the United States," table L.102 (www.federalreserve.gov/
releases/zl).




August 2002 BLPS, one-fourth of banks with assets
of less than $20 billion—institutions that in recent
years have experienced particularly strong growth
in commercial real estate lending—reported that the
volume of their commercial real estate loans that
were used for commercial and industrial purposes
(rather than the acquisition or improvement of real
estate) had increased over the previous year. A small
net percentage of those banks reported in the October
2003 BLPS that they had continued to experience an
increase in demand for commercial real estate loans
for which the proceeds were earmarked for commercial and industrial purposes.

FACTORS AFFECTING
OF C&I LOANS

THE

SUPPLY

The recent runoff in C&I loans appears to be related
not only to weaker demand but also to tighter loan
supply conditions. The effects from tighter supply,
however, do not seem to be as significant as they
were in the early 1990s. Many large commercial
banks entered the previous decade with low levels of
equity capital, partly because of considerable losses
stemming from the Latin American debt crisis of the
mid-1980s. The collapse of the commercial real estate
market in the early 1990s also impaired banks' profitability and further eroded their capital bases. At the
same time, commercial banks were coming under
significant pressure from bank regulators and investors to rebuild their capital, pressure that was intensified by the adoption of the Basel standards for riskbased capital. Because commercial banks are not
required to hold risk-based capital against U.S. Treasury securities, the attractiveness of these investments rose relative to that of loans. Under these
circumstances, commercial banks became increasingly reluctant to lend to households or businesses.
The inhospitable business-borrowing environment of
the early 1990s is reflected in the significant net
percentages of BLPS respondents that reported a
tightening of lending standards in surveys conducted
during that period (chart 16). The period was also
marked by weak demand for credit, as households
and businesses moved to strengthen their own balance
sheets after heavy borrowing during the late 1980s.
As the economy recovered from the 1990-91
recession, borrowers and banks rebuilt their balance
sheets, and commercial banks expanded their lending. The industry's asset quality and profitability
improved, lifting banks' regulatory capital ratios
significantly above regulatory minimums. Partly
because of the brighter economic outlook, higher

Recent Developments in Business Lending by Commercial Banks

16. Net percentage of banks that reported tightening
standards for C&I loans, by size of borrower,
1990:Q2-2003:Q4

NOTE. The data are quarterly. Net percentage is the percentage of banks
that reported a tightening of standards less the percentage that reported an
easing. The definition for firm size suggested for, and generally used by,
survey respondents is that large and middle-market firms have sales of more
than $50 million.
SOURCE. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices.

capital levels, and better asset quality, commercial
banks by 1993 had begun easing their lending standards and accepting lower spreads on C&I loans and
credit lines. Banks also reported easing nonprice
lending terms, such as loan covenants and collateral
requirements, which are designed to protect banks
if a borrower becomes impaired before the loan is
repaid. Over the same period, the net percentage of
small firms reporting that credit was harder to obtain
declined considerably, according to the Survey of
17. Net percentage of small businesses that reported
more difficulty in obtaining credit, 1988-2003:Q3

NOTE. The net percentage is defined as the number of borrowers that
reported more difficulty in obtaining credit less the number that reported
more ease in obtaining credit as a fraction of borrowers who sought credit
during the previous three months.
SOURCE. National Federation of Independent Business, Survey of Small
Businesses.




483

Small Businesses conducted by the National Federation of Independent Business (chart 17).
Market commentary, as well as narrow credit
spreads on corporate debt instruments, also suggested
that lending conditions had become very favorable
for business borrowers, especially as the economy
began to accelerate over the latter half of the 1990s.
By the middle of 1998, bank supervisors and examiners had become increasingly concerned about banks'
lending practices, as evidenced by statements from
the Federal Reserve and other bank regulatory agencies. One statement urged banks to "continue to
focus on the strength of the credit-risk management
process, not only under favorable conditions, but also
under stressful circumstances." 6
The warnings of bank regulators took on a prophetic dimension in August 1998, when the Russian
government announced a moratorium on servicing
official short-term debt and devalued the ruble. The
resulting shockwaves, exacerbated by difficulties at
a prominent hedge fund, Long-Term Capital Management, led to turbulence in capital markets in the
United States and elsewhere: Credit spreads ballooned, and liquidity deteriorated. Although the U.S.
economy remained strong and the Federal Open Market Committee eased monetary policy that fall in
three increments of 25 basis points each, commercial
banks nevertheless seemed to respond by reassessing the riskiness of their business lending. Abruptly
reversing course, nearly half the respondents to the
November 1998 BLPS indicated that they had tightened business lending standards and terms over the
preceding three months, the highest net percentage
that had reported doing so since early 1991. In
addition, banks disproportionately imposed morestringent commercial lending standards on large and
middle-market borrowers, which they had apparently
started to perceive as riskier credits.
Although the net proportion of banks that reported
tightening lending standards declined markedly in
subsequent surveys, it remained positive, and other
indicators also continued to suggest that the easy
lending environment of the mid-1990s had come to
an end. In late 1998, spreads on originations of new
C&I loans—measured relative to estimated bank
funding costs—increased significantly, as reported
in the Federal Reserve's quarterly Survey of Terms
of Business Lending (STBL) (chart 18). The wider
spreads evident in the STBL were mirrored in a
substantial jump of spreads and fees on syndicated
6. The Federal Reserve's Division of Banking Supervision and
Regulation sent to the banks that it supervises a letter on lending standards for commercial loans. See letter SR 98-18,
www.federalreserve.gov/boarddocs/SRLETTERS/1998/SR9818.htm.

484

Federal Reserve Bulletin • December 2003

18. Spread on C&I loans at domestic banks, 1997-2003:Q3

20. Delinquency and net charge-off rates on C&I
loans at banks, by size of bank, 1988-2003:Q3

Basis points

240
—

220

—

200

—

180

—

160

—

140

—

120

Delinqu

_L_J
NOTE. Spread is the difference between the loan rate and the bank's
funding cost, represented by a eurodollar or swap interest rate of comparable
maturity.
SOURCE. Federal Reserve Board, Survey of Terms of Business Lending.

loans, particularly for weak-investment-grade and
below-investment-grade borrowers, according to data
collected by the Loan Pricing Corporation (LPC)
(chart 19). Pricing of business loans and corporate
bonds continued to hover in the new, elevated range
even after the stock market resumed its upward
march, the liquidity of the bond market improved,
and the U.S. economy continued to perform as well
as it had in decades.
Despite the tighter lending standards that banks put
in place in late 1998 and the strong economic growth
during 1999 and the first half of 2000, the delinquency rate on C&I loans at large banks trended
higher (chart 20). According to the January 2000
BLPS, the deterioration in business loan quality since

Net
-2.5

—2.0

Other
—

.5
+

— 0

NOTE. The data are quarterly and seasonally adjusted. Delinquent loans are
loans that are not accruing interest and those that are accruing interest but are
more than thirty days past due. The delinquency rate is the end-of-period
level of delinquent loans divided by the end-of-period level of outstanding
loans. The net charge-off rate is the annualized amount of charge-offs over
the period, net of recoveries, divided by the average level of outstanding
loans over the period.
SOURCE. Call Reports.

19. All-in drawn spreads on syndicated loans of maturity
greater than one year, by rating of borrower, 1998-2003
Basis points

Basis points

B
125

—

100

—

—

450

400
75

—
/

50

—

25

—

1

V

BBB

^ —

350

—

300

rj

J

1

1
1998

1999

1
2000

1
2001

1
2002

I

1

2003

NOTE. Data are monthly through October 2003. All-in drawn spreads
reflect the amount a lender will earn on a facility, considering all fees (except
usage fees) and the libor spread, assuming the entire credit facility is drawn
down.
SOURCE. Loan Pricing Corporation.




1998 was due partly to the reversion of delinquency
rates to a more-normal long-run level and to problems that had developed in some industries, particularly health care. But as the long bull market in stocks
came to an end in spring 2000 and the economy
began to show signs of slowing in the fall, delinquencies and charge-offs on C&I loans at commercial
banks accelerated. In light of this further deterioration in asset quality, the November 2000 BLPS asked
banks about the extent to which the rise in delinquencies on C&I loans had been in line with their expectations. Although the smaller banks indicated that they
had largely anticipated the gradual increase in delinquency rates, a significant net percentage of larger
banks on the survey panel reported that they were
surprised by how much the quality of their C&I loan
portfolios had deteriorated over the previous two
years.

Recent Developments in Business Lending by Commercial Banks

21. Net percentage of banks that reported higher
premiums on riskier loans, by size of borrower,
1998: Q4-2003: Q4
Percent

I

I 1
1998

I

l l
1999

I

1 I I
2000

I

1 I I
2001

I

I I 1
2002

1

1 I I—J
2003

I

NOTE. The data are quarterly. Net percentage is the percentage of banks
eporting higher premiums less the percentage reporting lower premiums,
rhe definition for firm size suggested for, and generally used by, survey
respondents is that large and middle-market firms have sales of more than
$50 million.
SOURCE. Federal Reserve Board, Senior Loan Officer Opinion Survey on
Bank Lending Practices.

Responding to the worsening economic outlook
and the deterioration in their asset quality, large net
percentages of banks began reporting in late 2000
and in 2001 that they had further tightened lending
standards and had imposed higher spreads and fees
on C&I loans for borrowers of all sizes. According to
the respondents, the shift to a more-stringent lending
posture also resulted from a reduced appetite for risk
at their institutions, and nearly all banks reported that
they had raised premiums charged on riskier C&I
loans, especially for large and middle-market firms

485

(chart 21). Evidence from other data sources corroborated these qualitative responses from the BLPS: The
spreads on loans in the riskier categories in the STBL
increased steadily during 2001 and the first half of
2002, and they increased to a much greater extent
than did the spreads on loans rated as having "low"
or "minimal" risk (chart 22).
The terrorist attacks of September 11, 2001, dramatically raised the overall level of economic uncertainty. Corporate balance sheets had already deteriorated, and corporate profitability had declined sharply
during the year, accelerating the pace of ratings
downgrades and increasing defaults on corporate debt
(chart 23). The collapse of Enron in early December
2001 and subsequent corporate accounting scandals
cast doubt on the quality of auditing and corporate
governance. And the possibility that more firms
would be found to have engaged in questionable
accounting practices exacerbated the general sense of
23. Indicators of the credit quality of nonfinancial
corporations, 1990-2003:Q3
Percent

Default rate on outstanding bonds

-

A

22. Spread on C&I loans at domestic banks, by
risk category of loan, 1997-2003:Q3
Ratings changes of nonfinancial corporations
Basis points

—

300

—

1991
—

i
1997

i
1998

i
1999

i
2000

i
2001

i
2002

1995

1997

1999

2001

2003

50

LJ
2003

NOTE. Spread is the difference between the loan rate and the bank's
funding cost, represented by a eurodollar or swap interest rate of comparable
maturity. High-risk loans are those in risk categories acceptable and
classified.
SOURCE. Federal Reserve Board, Survey of Terms of Business Lending.




1993

40

NOTE. The default rate js monthly and extends through October 2003. The
default rate for a given month is the face value of bonds that defaulted in the
six months ending in that month divided by the face value of all bonds
outstanding at the end of the calendar quarter immediately preceding the
six-month period. The data on ratings changes are at an annual rate; for 2003,
they are the annualized values of monthly data through October. Debt
upgrades and downgrades are expressed as percentages of the par values of
all bonds outstanding.
SOURCE. Moody's Investors Service.

486

Federal Reserve Bulletin • December 2003

uncertainty, especially for large business borrowers.
However, small companies with straightforward business models were less likely to have used questionable accounting practices, and the NFTB's Survey
of Small Businesses showed little evidence that
small firms were facing significantly tighter credit
conditions.
With the uncertain economic climate and corporate
governance concerns, the net percentage of banks
that reported tightening lending standards and terms
in the BLPS remained elevated through the first half
of 2002. In addition, responses to a question in the
October 2001 BLPS indicated that almost one-half of
banks had lowered their internal ratings on at least
5 percent of their rated C&I loans over the previous
three months, and several banks had downgraded
more than 20 percent of these loans. These reported
downgrades showed up in the STBL as banks
assigned higher risk ratings to larger shares of newly
originated loans: The share of STBL loans rated as
high risk rose from about 30 percent in 2001 to
almost 50 percent in the first quarter of 2003
(chart 24).
As with outstanding business loans, commercial
banks have also moved to limit their exposure to
committed lines of credit since the middle of 1998.
A large portion of these loan commitments have
traditionally been extended to large, investment-grade
corporate borrowers to support their commercial
paper programs in the event of a temporary disruption in the market for commercial paper. Accordingly, banks typically viewed the lines as unlikely to
be drawn down for purposes other than weathering a
general liquidity squeeze. Nevertheless, backup lines
24. Distribution of C&I loan volume at domestic banks,
by risk category of loan, 1998-2003:Q3

•
•
•

1998

High
Moderate
Minimal and low

1999

2000

2001

2002

2003

NOTE. The data are annual for 1998-2001 and quarterly for
2002-2003:Q3. High-risk loans are those in risk categories acceptable and
classified.
SOURCE. Federal Reserve Board, Survey of Terms of Business Lending.




for commercial paper carry the possibility that a
bank will end up as the "lender of last resort" for a
company shut out of the commercial paper market
because of a rapid deterioration in its own creditworthiness. To safeguard against such an occurrence,
credit lines usually include covenants that, in theory,
are designed to prevent a drawdown by a company
that is experiencing financial distress. This possibility
was generally considered remote, especially because,
before the past few years, issuers on the upper rungs
of the investment-grade ladder had rarely succumbed
to sudden default.
Believing that commercial paper backup lines of
credit were unlikely to be drawn down and that, even
if drawn, they were unlikely to result in a loss, many
large banks reportedly offered backup lines to some
borrowers at very favorable terms. The first of these
beliefs was challenged amid the financial market
turmoil in the early fall of 1998, when interest rate
spreads in the commercial paper markets rose substantially. Rather than issuing commercial paper in
those circumstances, a few companies turned to their
banks and drew down their revolving credit lines,
which at the time offered significantly more-attractive
terms than those available in the commercial paper
market. Because of these unanticipated draws, banks
reduced the size and increased the costs of the lines
that they were offering to their large business customers and reassessed the conditions under which the
funds could be drawn (chart 25).
The spate of defaults by highly rated corporate
borrowers during the recent economic slowdown
raised questions about banks' second assumption
regarding the likelihood and size of potential losses
in investment-grade lending. 7 Indeed, even at the
time of the May 2001 BLPS, large percentages of
banks reportedly had tightened their lending standards over the previous year on commercial paper
backup lines, especially for firms with weaker commercial paper credit ratings. More than half the
respondents indicated that they had begun charging
higher up-front fees on backup lines and that they had
increased the spreads that firms would pay if the lines
were drawn. In addition, three-fourths of the domestic banks reported that commercial paper backup
lines were unprofitable on a standalone basis but that
firms used the bank to provide other services—such
as cash management—that made the overall relation7. For example, WorldCom drew down about $2.5 billion in bank
lines just before revealing in June 2002 that it had substantially
overstated its earnings; the company filed for bankruptcy the next
month. Banks holding these lines, however, invoked covenants in the
loan agreements that prevented WorldCom from drawing down the
remainder of its reported $8 billion in credit lines.

Recent Developments in Business Lending by Commercial Banks

25. Net percentage of banks that reported tightening
selected terms on credit lines, by size of borrower,
1996: Q2-2003: Q4

1996

1997

1998

1999

2000

2001

2002

2003

NOTE. See notes to chart 16.

ship profitable for the bank. Banks also noted that
they had moved to limit their risk by reducing the
size of the loan commitments they were willing to
offer, especially for lower-rated issuers of commercial paper. Not surprisingly, respondents indicated
that they had tightened standards and terms on credit
lines because they were increasingly concerned about
the possible deterioration in the credit quality of
issuers and because they perceived a higher probability that the lines would be drawn. 8
8. Over the past two years, asset-backed commercial paper (ABCP)
issued by ABCP conduits administered by domestic commercial banks
declined, after increasing in 2000 and 2001. The decline in ABCP
conduits may have reflected not only reduced issuance of ABCP
because of borrowers' preference for longer-term debt but also banks'
uncertainty about the accounting treatment of securitized assets. On
January 17, 2003, the Financial Accounting Standards Board released
Interpretation 46, "Consolidation of Variable Interest Entities"
(FIN 46), a rule that stipulates the accounting treatment for certain
structured finance vehicles, including ABCP conduits. FIN 4 6 raised
the possibility that commercial banks would have to consolidate on
their balance sheets the assets and liabilities of the ABCP conduits
that they sponsored, an action that would require banks to set aside
additional regulatory capital. FIN 4 6 is now slated for adoption for




STRUCTURAL DEVELOPMENTS
FOR C&I LOANS

IN THE

487

MARKET

Over the past decade, commercial banks have seen a
number of changes in the structure of the market for
C&I loans, and these changes have significantly
affected the dynamics of demand and supply at large
banks. The rapid growth of the syndicated loan market, the effects of consolidation in the banking industry, and the growing attractiveness of loan assets
to institutional investors have boosted the participation of nonbank financial institutions in the market
for bank loans. These trends have spawned a relatively active secondary market, in which pieces of
large syndicated loans are traded at market prices.
The resulting availability of informative secondary
prices on an increasing number of large loans has
allowed commercial banks to manage their credit risk
more effectively and to price new credit extensions
more efficiently. The development of credit derivatives, although used primarily by just a few of the
largest banks, has given bankers another tool to manage the riskiness of their loan portfolios.
With better management information systems,
banking organizations have improved their ability to
evaluate and quantify their risk-adjusted returns on
capital for various products. Unlike backup lines of
credit, typical drawn business loans are profitable in
themselves, but spreads on larger syndicated loans,
especially those to investment-grade firms, tend to be
quite narrow. Banks are willing to participate in these
credit arrangements in part because by doing so they
are more likely to establish a broader relationship
with the borrower, which could allow them to sell
additional fee-based services to the customer. Moreover, banks earn substantial fees for arranging and
servicing these varied credit facilities for large borrowers. In essence, these banks are moving away
from their previous "lend and hold" business practices toward a fee-oriented "originate and distribute"
business model.

Syndicated

Loan

Market

In a syndicated loan, an arranger—almost exclusively
a large financial institution or a small group of large
institutions—acts like a bond underwriter by soliciting a wide consortium of commercial banks and
institutional investors such as investment banks,
insurance companies, pension funds, and mutual
financial statements covering periods ending after December 15,2003,
and banks are reportedly continuing to explore ways to avoid consolidation of their ABCP conduits.

488

Federal Reserve Bulletin • December 2003

funds to hold portions of the loan for a large corporate borrower. This type of lending differs from a
traditional business loan model, in which a commercial bank originates the loan and keeps the entire loan
on its books until maturity. Although the arranger(s)
of a syndicated loan usually have a broad relationship
with the borrower, as is the case in the traditional
lending model, many of the financial institutions in
the syndicate are typically not relationship lenders.
These financial institutions do not benefit from ancillary business, and as a result, they are especially
sensitive to the pricing and risk characteristics of the
loan itself. Their sensitivity, in turn, has reinforced
banks' attempts to increase fees and spreads on large
business loans.
According to the results of the Shared National
Credit Survey (SNC), the volume of total commitments (the sum of outstanding loans and unused loan
commitments) in the U.S. syndicated loan market
grew in real terms from about $900 billion in the
early 1990s to almost $2 trillion at its peak in 2001;
the real volume of outstanding loans also roughly
doubled over the same period (chart 26).9 In the
August 2000 BLPS, most banks with assets of more
than $20 billion indicated that syndicated loans composed a substantial percentage of their total C&I
loans outstanding, and seven banks indicated that the
portion was greater than 50 percent. According to the
9. Each year, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and the Office of
the Comptroller of the Currency conduct the Shared National Credit
Survey, in which they collect data on the credit quality and other
characteristics of all C&I loans and loan commitments of more than
$20 million that are held by three or more supervised financial
institutions.

26. Real value of total commitments and debt
outstanding on syndicated loans. 1989-2003

NOTE. Commitments are outstanding debt plus unused commitments. The
data are deflated by the price deflator for business-sector output (1996 = 100).
SOURCE. Shared National Credit Survey (see text note 9).




LPC, over the past decade, investment-grade companies have accounted for an average of about twothirds of gross issuance in the syndicated loan market. 10 The share of gross issuance accounted for by
below-investment-grade firms, however, increased
somewhat over the past two years, partly reflecting
the greater refinancing by such firms and an increased
desire to hold these types of assets by nonbanks.
Investment banks are also major participants in
the syndicated loan market. During the evolution of
the market for business loans, customer demand for
one-stop shopping and the entry of commercial bank
affiliates into investment banking using section 20
subsidiaries blurred many of the distinctions between
investment banking and commercial banking. 11 The
Gramm-Leach-Bliley Act formally acknowledged
these market developments and further reduced or
eliminated some restrictions on the capital market
activities of commercial bank affiliates. This deregulation, in turn, led investment banks to step up the
underwriting of syndicated loans so that they could
also offer a full range of financing options to their
corporate customers. However, investment banks'
relatively smaller balance sheets, higher funding
costs, and different traditional business models make
these institutions more reluctant than banks to retain
the loans that they underwrite, especially if the loans
by themselves are not profitable enough to meet the
internal hurdle rates of investment banks. Investment
banks are particularly averse to holding revolving
lines of credit, which can result in large, unexpected
demands for funds that the investment bank must
finance on short notice. Partly to mitigate these problems and partly to compete better in the syndicated
loan market, a few investment banks have acquired
depository institutions or established them within
their holding company structure.
Many other financial institutions—including insurance companies, prime rate funds, and pension
funds—have reportedly participated in the syndicated
loan market for more than a decade. More recently,
the market is said to have piqued the interest of
high-yield mutual funds and hedge funds. These institutional participants tend to be interested in term
loans or facilities with high utilization, and they do
10. Gross issuance is defined as the sum of new loans and credit
lines, increases in the size of existing credit agreements, and the
refinancing of existing credit facilities. The LPC only recently began
reporting net issuance—new loans and increases in existing credit
facilities—separately from refinanced credits.
11. In April 1987, the Board of Governors of the Federal Reserve
System reinterpreted section 20 of the Glass-Steagall Act, allowing
bank holding companies to establish subsidiaries to conduct certain
bank-ineligible investment banking activities, such as underwriting of
corporate bonds and equities.

Recent Developments in Business Lending by Commercial Banks

not deal in ancillary businesses that investment and
commercial banks may pursue through a relationship
with a borrower (for example, cash management and
bond underwriting). As a result, they are most likely
to purchase only drawn loans that they view as fully
priced to reflect the riskiness of the borrower, and
they also prefer loans with longer maturities. Because
these characteristics are attached more often to
below-investment-grade loans than to the lines of
credit for investment-grade firms, institutional investors hold a substantial share of riskier syndicated
loans.
Other important pieces of the institutional loan
market are special-purpose investment vehicles that
purchase and hold loans (collateralized loan obligations, or CLOs) or, more generally, loans in combination with other debt instruments (collateralized debt
obligations, or CDOs). Most CLOs and CDOs are not
actively managed, partly because accounting conventions make it more likely that actively managed structures will need to be consolidated onto the balance
sheet of the sponsoring institution. CLOs and CDOs
fund their investments primarily by issuing debt
instruments, which are structured to match the investors' risk-and-return profiles through a process called
tranching.12 Financial institutions sponsor these vehicles to profit from the fees earned for providing these
products to their investment customers. Major commercial banks have also used CLOs to move distressed or otherwise unwanted loans off their balance
sheets.
The decline in the volume of C&I loans at commercial banks has been partly offset by increased
holdings of such loans by nonbanks, which the SNC
defines as independent investment brokerages, investment vehicles (such as CLOs), and other institutional
investors. The SNC data show that the share of total
syndicated loan commitments held by nonbanks has
increased from 8 percent in 2001 to 11 percent in
2003 (table 1). Moreover, a significant and growing
portion of the holdings of nonbanks is made up of
adversely rated credits, which increased to almost
one-fourth of their total commitments in 2003. Nonbanks apparently stepped up the acquisition of
adversely rated credits because these loans have a
relatively attractive yield-risk tradeoff and their
workout can often be quite profitable. Responses to

12. The highest tranche pays investors the smallest return but has
the least risk by virtue of having first claim on the cash flows
generated by the underlying assets in the CLO or CDO. The middle
tranches pay somewhat higher rates of return in exchange for investors' willingness to bear more risk. Investors in the lowest tranche are
paid only after all the higher tranches have been paid in full, thus
exposing them to the first losses in the portfolio.




489

1. Share of holdings of syndicated and adversely rated
loan commitments, by type of lender, 2001-2003
Percent
Loan commitment and holder
Total syndicated loan
commitments
U.S. banks
Foreign banking organizations
Nonbanks1
Own loan commitments that c re
adversely rated2
All institutions
U.S. banks
Foreign banking organizatii
Nonbanks'

2001

2002

2003

46
46

45
45
10

45
44
11

5.7
5.1
4.7
14.6

8.4
6.4
7.3
23.0

' t"1 r V a H
9.3
5.8
9.0
24.4

1. Nonbanks include independent investment brokerages, investment vehicles, and other institutional investors.
2. These loan commitments are classified as "substandard," "doubtful," or
"loss." Substandard loans are characterized by the distinct possibility that the
bank will sustain some loss if the deficiencies are not corrected. An asset classified as doubtful has all the weaknesses inherent in one classified as substandard
with the added characteristic that the weaknesses make the collection or liquidation in full highly questionable and improbable. Assets classified as loss are
considered uncollectible and of such little value that their continuance as bankable assets is not warranted, even though partial recovery may be effected in the
future.
SOURCE. Shared National Credit Survey.

the October 2003 BLPS suggest that a substantial
part of the increase in adversely rated credits at
nonbanks may reflect purchases of distressed loans
from commercial banks. The most-often-cited reasons that survey respondents gave for selling their
adversely rated loans were to trim the overall credit
risk of their C&I loan portfolios and to reduce exposure to particular firms.

Secondary

Loan

Market

The growth of the syndicated loan market and the
increased participation of institutional investors
helped spur the development of a secondary market
for trading pieces of syndicated loans. The real volume of loan trading in the secondary market has
increased fairly steadily during the past decade, from
less than $20 billion a year in the early 1990s to more
than $100 billion in recent years (chart 27). Trading
is most active in the below-investment-grade segment of the market, according to data from the LPC,
and an increased percentage of the recent activity has
been in distressed assets. The higher trading volumes
have made pricing somewhat more transparent for
many of the largest and most-liquid loans, for which
the industry has taken steps to determine and publish
timely market quotes. Nonetheless, liquidity in the
secondary market for C&I loans is reportedly hampered by the assignment fees that banks charge loan
investors to cover the cost of transferring ownership
in the pieces of loans that are traded. In addition,

490

27.

Federal Reserve Bulletin • December 2003

Real value of loans traded in the U.S.
secondary market, 1991-2003:H1

1991

1993

1995

1997

1999

2001

Credit

2003

NOTE. The data are deflated by the price deflator for business-sector output
( 1 9 9 6 = 100).

SOURCE. Loan Pricing Corporation.

market participants note that the documentation
required to trade loans is substantial, and thus the
settlement period for loan trades is considerably
longer than that for bond or equity trades.
The increased depth of the secondary loan market
and the availability of representative price quotes
have apparently allowed banks to manage their C&I
loan portfolios more actively. Indeed, during the most
recent downturn, a significant number of banks sold
distressed loans into the secondary market, a move
that allowed them to accelerate charge-offs and
thereby reduce delinquencies, as well as to reduce the
riskiness of the loans on their books. The existence of
representative market quotes on the prices of loans is
also important for institutional participants, many of
which mark their portfolios to market more regularly
than do commercial banks to follow either market
convention or regulatory requirements.
The increased liquidity in the secondary loan market has reportedly led to some convergence in bond
and loan spreads, especially in the leveraged segment
of the market. In the August 2002 BLPS, a significant
percentage of larger banks indicated that they considered bond market prices to be helpful for monitoring the credit quality of their business customers. In
addition, the pricing for many lines of credit is based
on ratings grids, a practice that implies that the firm
pays a higher spread on its draws if its credit rating is
downgraded and a lower spread if its credit rating is
upgraded. Most recently, a few syndicated revolving
credit lines have reportedly incorporated bond-linked
pricing, in which the spread charged on a draw from
the credit line is determined by the prevailing spread
on the company's bonds at the time of the draw.



Derivatives

Some of the largest commercial banks are increasingly using credit derivatives to help manage the
riskiness of their business loan portfolios. In one of
the most common forms of credit derivative—the
credit default swap (CDS)—the beneficiary, an investor that will receive a payment if the issuer defaults
or experiences another pre-specified adverse outcome, contracts with a guarantor, a financial institution that will pay the losses in that event. 13 In return,
the beneficiary pays the guarantor a fee equal to a
specified number of basis points times the amount
of credit protection that it wishes to purchase. The
amount charged by the guarantor for the contract is
based, of course, on the likelihood that the firm in
question will experience a specified adverse credit
event and on the expected value of the underlying
debt instrument in such circumstances.
The value of credit derivatives purchased and sold
by commercial banks has increased rapidly over the
past decade (chart 28). However, the overall number
of banks that transact in credit derivatives is quite
small: As of the third quarter of 2003, the ten
largest banks held 97 percent of the total credit
derivatives for which banks act as guarantors and
94 percent of the total credit derivatives for which
banks are the beneficiaries. A few of the largest
banks also act as dealers in the market for credit
derivatives and therefore hold substantial percentages of both the industry's beneficiary positions and
its guarantor positions. Since 1997, when data on
banks' holdings of credit derivatives first became
available in the quarterly Reports of Condition and
Income (Call Reports), the U.S. banking sector has
generally maintained a small net beneficiary position
in credit derivatives. However, banks' position as a
net beneficiary increased considerably in the first half
of 2003, perhaps because of a greater use of these
instruments to hedge exposure in their C&I loan
portfolios.
Like corporate bonds and syndicated loans, CDSs
are actively traded. Increasingly, loan investors are
presented with opportunities for arbitrage when the
spreads among these three markets diverge. For
example, if the CDS for a particular firm is yielding a
higher return than is a loan to the same firm, a bank

13. The treatment of restructuring, in which a firm does not technically default but rather changes the terms on its debt instruments, has
presented problems during the development of the CDS market. The
International Swaps and Derivatives Association has issued three sets
of guidelines to clarify the way in which guarantors and beneficiaries
should treat restructuring, and it continues to work toward a standard
definition.

Recent Developments in Business Lending by Commercial Banks

28. Value of credit derivatives held by banks as guarantors
and as beneficiaries, 1997-2003:Q3
Billions of dollars

•
•

Notional amount held as guarantor
Notional amount held as beneficiary

• i r|

—

400

—

350

—

250

—

200

—

150

—

100

J_J
Percent

Share of credit derivatives held by ten largest banks
100

95

m
90

1997

1998

1999

2000

2001

2002

Industry

Consolidation

Since the passage in 1994 of the Riegle-Neal Act,
which phased out many of the barriers to interstate
branching by commercial banks, consolidation has
accelerated. The 100 largest banks now hold almost
75 percent of total banking assets and 77 percent
of outstanding C&I loans, up from 56 percent and
66 percent, respectively, in 1994 (chart 29). Similarly, the ten largest commercial banks hold 43 percent of total banking assets and 47 percent of outstanding C&I loans, compared with 25 percent and
28 percent, respectively, in 1994. These increases in
industry concentration may be somewhat overstated
because of mergers that have occurred among banks
that were already within the same holding company;
even so, a substantial number of mergers among the
largest holding companies have occurred over the
same period.
One effect of consolidation on the C&I loan market
is that it has left fewer commercial banks to participate in the syndication process. Reportedly, a merged
bank tends to offer smaller loans and credit lines in
29. Concentration in the banking industry among
the 10 largest and 100 largest banks,
1988-2003 :Q3

2003

Percent

NOTE. Percentages are plotted at a quarterly frequency.
SOURCE. Call Reports.

Share of total industry assets
—

that wishes to obtain credit exposure to that firm can
choose to act as the guarantor on a CDS for the firm's
bonds rather than making the loan. The increasing
use of CDSs in managing risk may have also resulted
in a greater willingness of banks to make loans to
companies for which they can purchase credit protection in the CDS market.
The January 2003 BLPS asked banks why they
used CDSs and how their participation in that market
had affected the total amount of C&I loans that they
made. The reasons most often cited by banks for
selling CDS protection were that it was occasionally
more profitable than direct lending and that it helped
them diversify credit risk. Banks that had purchased
credit derivatives to protect against loan losses overwhelmingly reported that they preferred buying credit
protection to selling a loan in the secondary market
because the purchase of the CDS did not affect their
relationship with the borrower. On net, banks
reported that the development of the CDS market had
a small positive effect on their supply of business
loans.



491

^—"

'

—

90

—

80

" —

70

—

60

S l W ) largest
—

10 largest
—

—

— ^

—

1

1

1

I

1

1

1

1

1

1

1

1

1

1

I

1

Share of total outstanding C&I loans
in banking industry
—

s"^

100 largest

—

—

10 largest

'm
-J^

—

1

—

30

—

20

—

10

1 1 1

90

—

80

—

70

—

60

—

50

—

40

—

30

—

20

—

10

S*/
y

1

50
40

—

—

—

—
-

1 !
1989

1
1991

1993

SOURCE. Call Reports.

1995

1997

1999

2001

1 I 1
2003

492

Federal Reserve Bulletin • December 2003

the syndicated loan market than the combined amount
that the two predecessor banks had offered before the
merger. As a result, market participants have argued
that consolidation has reduced the capacity of the
syndicated loan market to meet the credit demands of
some large corporate borrowers. On the other hand,
the increased number of institutional participants in
that market should have at least partially offset such a
decline in lending capacity.
CONCLUSION

Despite the appreciable deterioration in asset quality
and the reduced demand for credit by business borrowers over the past several years, commercial banks
have remained highly profitable and well capitalized.
In contrast to the 1990-91 period, when large losses
held down banks' earnings and eroded their capital,
during the recent recession banks were well positioned to lend to creditworthy business customers
willing to pay the higher loan fees and lending
spreads that banks have increasingly demanded as
part of their improved risk management. The economic slowdown and the tightening of credit standards, however, sharply reduced the number of
creditworthy firms. Meanwhile, the customers that
remained creditworthy generally had less need for
external funds.
To help determine the relative importance of the
various supply and demand factors contributing to
the runoff in C&I loans, the October 2002 BLPS
asked banks to rank several possible reasons for the
decline in business loans during the first nine months
of that year. More than three-fourths of the respondents indicated that the most important factor behind




the sharp contraction in C&I loans during that period
was reduced demand from creditworthy borrowers.
The second-most-important factor was that the deterioration in business credit quality had reduced the
number of firms that banks viewed as creditworthy.
Banks rated the incremental effect of their own efforts
to tighten lending standards as only the third-mostimportant factor and stated that increases in spreads
and fees on business loans had the least effect on
business loan flows. In the opinion of the banks
responding to the BLPS, then, the decline in business
loans was clearly related more to reduced demand
than to restrictions in supply.
Nonetheless, supply effects appear to have played
an important role. Staff research suggests that the
large banks on the survey panel that most often
reported tightening credit standards from 1999 to the
end of 2001 experienced the largest contraction in
business lending whereas banks that reported tightening in only a few quarters or not at all had a smaller
decline in outstanding C&I loans and credit lines. 14
Asked why they had tightened lending standards,
however, respondents to the BLPS often mentioned
industry-specific problems and the resulting decline
in the creditworthiness of firms in those industries.
That the industries hit hardest by the economic
slowdown and other events at the beginning of
this decade—telecommunications and airlines, for
example—traditionally borrowed from large banks
may have magnified the declines in C&I loans at
those banks.
•

14. See William F. Bassett and Mark Carlson, "Profits and Balance
Sheet Developments at U.S. Commercial Banks in 2001," Federal
Reserve Bulletin, vol. 88 (June 2002), pp. 259-88.

493

Announcements
VICE CHAIRMAN FERGUSON AND GOVERNOR
BERNANKE TAKE OATHS OF OFFICE

Roger W. Ferguson, Jr., on October 28, 2003, took
the oath of office for a second four-year term as Vice
Chairman of the Board of Governors of the Federal Reserve System. The oath was administered,
in the presence of Vice Chairman Ferguson's wife,
Annette L. Nazareth, by Chairman Alan Greenspan
in the Chairman's office.
President Bush nominated Vice Chairman Ferguson on September 10, 2003, and the Senate confirmed
him on October 24, 2003. He originally took office
on November 5, 1997, as a member of the Board to
fill an unexpired term. On July 26, 2001, he began a
new term on the Board that expires January 31, 2014.
His first term as Vice Chairman began October 5,
1999.
Ben S. Bernanke, on November 14, 2003, took the
oath of office for a new term as a member of the
Board of Governors of the Federal Reserve System.
The oath was administered by Chairman Alan
Greenspan in the Chairman's office. Governor Bernanke's wife, Anna; daughter, Alyssa; and son, Joel,
were present.
President Bush announced his intention to nominate Governor Bernanke on September 9, 2003, and
the Senate confirmed him on October 24, 2003. He
originally took office on August 5, 2002, as a member of the Board to fill an unexpired term. The new
term begins February 1, 2004, and expires January 31,2018.

FEDERAL OPEN MARKET
STATEMENT

COMMITTEE

The Federal Open Market Committee decided on
October 28, 2003, to keep its target for the federal
funds rate at 1 percent.
The Committee continues to believe that an accommodative stance of monetary policy, coupled with
robust underlying growth in productivity, is providing important ongoing support to economic activity.
The evidence accumulated over the intermeeting



period confirms that spending is firming, and the
labor market appears to be stabilizing. Business pricing power and increases in core consumer prices
remain muted.
The Committee perceives that the upside and
downside risks to the attainment of sustainable
growth for the next few quarters are roughly equal. In
contrast, the probability, though minor, of an unwelcome fall in inflation exceeds that of a rise in inflation from its already low level. The Committee
judges that, on balance, the risk of inflation becoming
undesirably low remains the predominant concern for
the foreseeable future. In these circumstances, the
Committee believes that policy accommodation can
be maintained for a considerable period.
Voting for the FOMC monetary policy action were:
Alan Greenspan, Chairman; Ben S. Bernanke;
Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W.
Ferguson, Jr.; Edward M. Gramlich; Jack Guynn;
Donald L. Kohn; Michael H. Moskow; Mark W.
Olson; Robert T. Parry; and Jamie B. Stewart, Jr.

APPROVAL OF FEE SCHEDULES FOR
RESERVE BANK PRICED
SERVICES

FEDERAL

The Federal Reserve Board, on October 22, 2003,
approved fee schedules for Federal Reserve Bank
priced services, effective January 2, 2004.
From 1993 to 2002, the Reserve Banks recovered
98.8 percent of priced-services costs, including operating costs, imputed costs, and targeted return on
equity (ROE, or net income), which amounts to a
ten-year total net income of slightly less than
$500 million. The Reserve Banks' underrecovery
reflects changes that are affecting the check service,
which comprises about 85 percent of priced-services
costs. Since the mid-1990s, there has been a national
trend away from the use of checks that has affected
the entire industry. This trend, which is consistent
with the Federal Reserve's position of encouraging
the use of more efficient electronic payment alternatives, has reduced the Reserve Banks' check volume.
The Reserve Banks have undertaken aggressive
initiatives to improve operational efficiencies, to
reduce their excess check processing capacity, and to

494

Federal Reserve Bulletin • December 2003

reduce costs. First, the Reserve Banks will be completing a check modernization initiative later this
year that will standardize the Reserve Banks' check
processing operations. This initiative will enable the
Reserve Banks to improve their operating efficiency
and position them to reduce excess capacity. Second,
the Reserve Banks have begun a check restructuring
initiative that was announced earlier this year. Under
this initiative, the Reserve Banks will continue to
provide check services nationwide but will stop processing checks at thirteen of their forty-five check
processing offices, consolidate check adjustments
operations into twelve of their forty-three check
adjustment offices, and consolidate their check administrative functions. Third, the Reserve Banks have
aggressively reduced costs in a variety of support and
overhead areas that contribute significant costs to the
check service.
Overall, the price level for Federal Reserve priced
services will increase about 4 percent in 2004 from
2003 levels. The increase reflects an approximately
5 percent rise in check service fees combined with a
1 percent drop in fees for the Reserve Banks' electronic payment services.
The 2004 fee schedule for each of the priced
services, except the check service, is included in
the attached Federal Register notice. Fee schedules
for all priced services will be available on the Federal Reserve Banks' financial services web site at
www.frbservices.org.
The Board also approved, effective January 8,
2004, changing the earnings credit rate on clearing
balances from the federal funds rate to 90 percent of
the three-month Treasury bill rate, and increasing the
frequency with which depository institutions can
change contracted clearing balances.
In addition, the Board approved the 2004 privatesector adjustment factor (PSAF) for Reserve Bank
priced services of $179.7 million. The PSAF is an
allowance for taxes and other imputed expenses that
would have to be paid and profits that would have to
be earned if the Federal Reserve's priced services
were provided by a private business. The Monetary
Control Act of 1980 requires the Federal Reserve to
recover the costs of providing priced services, including the PSAF, over the long run, to promote competition between the Reserve Banks and private-sector
service providers.

APPROVAL OF MODIFIED METHOD FOR
IMPUTING PRICED-SERVICE
INCOME

The Reserve Banks estimate that they will recover
85.6 percent of all their priced services costs in 2003
and project that they will recover 93.6 percent of
these costs in 2004.

The Federal Reserve Board, on November 6, 2003,
released the minutes of its discount rate meetings
from September 2, 2003, through September 15,
2003.




The Federal Reserve Board, on October 23, 2003,
announced modifications to the method for imputing
priced-service income from clearing balance investments. The Board approved these modifications at
an open meeting on October 22, 2003. The Federal
Reserve Banks impute this income when setting fees
and measuring actual priced-service cost recovery
each year. The Board requested comment on the
changes in May 2003.
Clearing balances held at Reserve Banks are similar to compensating balances held at correspondent
banks. Beginning in January 2004, Reserve Banks
will impute the income from clearing balance investments on the basis of a broader portfolio of investments than the three-month Treasury bills used today,
selected from instruments available to banks and
subject to a risk-management framework that
includes criteria consistent with those used by bank
holding companies and regulators in evaluating
investment risk.
The annual imputed investment return will be
based on an underlying imputed investment portfolio,
but will be implemented as a constant annual spread
over the three-month Treasury bill rate.

JOINT AGENCIES ANNOUNCE
PROPOSED
TREATMENT OF EXPECTED AND UNEXPECTED
LOSSES UNDER THE NEW BASEL CAPITAL
ACCORD

The Federal Reserve Board and thrift agencies on
October 30, 2003, issued a statement regarding the
Basel Committee on Banking Supervision's request
for comment on a modification to its proposed international capital standards.
The modification deals with the treatment of
expected and unexpected losses. The Basel Committee will accept comments from all interested parties
until December 31, 2003.

RELEASE OF MINUTES
RATE MEETINGS

OF BOARD'S

DISCOUNT

Announcements

ENFORCEMENT

ACTIONS

The Federal Reserve Board, on November 4, 2003,
announced the issuance of a consent order of assessment of a civil money penalty against the Gulf Bank,
Miami, Florida, a state member bank. Gulf Bank,
without admitting to any allegations, consented to the
issuance of the order in connection with its alleged
violations of the Board's Regulations implementing
the National Flood Insurance Act.
The order requires Gulf Bank to pay a civil money
penalty of $4,550, which will be remitted to the
Federal Emergency Management Agency for deposit
into the National Flood Mitigation Fund.
The Federal Reserve Board, on November 4, 2003,
announced the execution of a written agreement by
and among the Bank of Gassaway, Gassaway, West
Virginia; the West Virginia Division of Banking,
Charleston, West Virginia; and the Federal Reserve
Bank of Richmond.

STAFF

CHANGES

The Board of Governors has approved a restructuring
of the Division of Banking Supervision and Regulation. The principal objectives of the reorganization
are to:
• enhance the division's ability to oversee major
supervisory risks (that is, credit, market and liquidity,
operating and, or technological, and reputational) as
well as financial organizations risk management
processes,
• establish a new section to strengthen the antimoney laundering and Bank Secrecy Act examination and enforcement programs, and
• implement a national, coordinated approach to
critical System supervisory technology initiatives.
As part of the reorganization, the Board is pleased
to announce the following officer actions and
appointments.
• The appointments of Steven C. Schemering and
Michael G. Martinson to Senior Adviser;
• The promotion of Stephen M. Hoffman to
Deputy Director;
• The promotions of Deborah R Bailey, Norah M.
Barger, Betsy Cross, and David M. Wright to Associate Director;




495

• The promotions of Barbara J. Bouchard, Angela
Desmond, James A. Embersit, Charles H. Holm, and
William G. Spaniel to Deputy Associate Director;
and
• The appointments of Jon D. Greenlee, Walt
Miles, and William F. Treacy to Assistant Director.
Stephen C. Schemering provides advice and guidance on the supervision operations of the division,
which include risk management and supervision of
large, complex banking organizations (both domestic
and foreign), and regional and community banking
organizations.
Michael G. Martinson provides advice and guidance to the division by identifying and analyzing
risks that affect the domestic and international banking systems.
Stephen M. Hoffman has responsibility for the
supervisory operations of the division, which includes
risk management and supervision of large, complex
banking organizations (both domestic and foreign),
and regional and community banking organizations.
Deborah R Bailey oversees and coordinates the FR
System's risk-focused supervision of domestic, large,
and complex banking organizations.
Norah M. Barger is responsible for the development of supervisory and risk-related regulations and
policies for the supervision of U.S. banks and bank
holding companies, foreign banks with operations in
the United States, and for the international operations
of U.S. banking organizations.
Betsy Cross is responsible for the division's financial institutions applications function.
David M. Wright is responsible for the oversight of
market practices, risk exposures, and supervision of
credit risk associated with the activities of banking
organizations.
Barbara J. Bouchard is responsible for the development of supervisory and risk-related regulations and
policies for financial institutions.
Angela Desmond is Secretariat to the Large and
Complex Banking Organizations Subcommittee and
represents the division on Board and interagency
projects, including homeland security and protection
of the critical infrastructure.
James A. Embersit is responsible for assessments
of market and liquidity risks related to developments
in the banking industry with attention to the capital
markets and government securities.
Charles H. Holm is responsible for the supervisory
accounting, disclosure, and regulatory reporting function of the division.

496

Federal Reserve Bulletin • December 2003

William G. Spaniel is responsible for the System
planning and evaluation, staff development, international training and assistance, and division administration functions.
New

Officers

Jon D. Greenlee is responsible for administering the
System's risk-focused supervision of regional domestic banking organizations. Mr. Greenlee joined the
Board in March 2001 as the manager of the Regional
Banking Organizations Section. Before joining the
division, he was the Central Point of Contact (CPC)
for Wells Fargo and Company at the Federal Reserve
Bank of San Francisco. He holds a B.S. in finance
and economics from Indiana State University.
Walt Miles is responsible for the division's supervisory program for large, complex banking organizations. Mr. Miles joined the Board in 1996. He was
promoted to a senior supervisory financial analyst in
the Domestic, Large, and Complex Banking Organi-




zations Section in 2000. Before joining the division,
Mr. Miles served as bank examiner for the Federal
Deposit Insurance Corporation. He received the Special Achievement Award in 2002 for his contributions to the large, complex, banking organizations
supervisory program. Mr. Miles has a B.S. degree
in finance from Oregon State University and is a
chartered financial analyst and a certified public
accountant.
William F. Treacy is responsible for the development and implementation of System supervisory
and examination policies and procedures, evaluating
Board regulations, and the analyzing financial trends.
Mr. Treacy joined the Board in 1992. He was also
an economist with the Federal Reserve Bank of
New York. Mr. Treacy holds a B.A. in economics and
international relations from Cornell University, an
M.A. in economics and U.S. foreign policy from
Johns Hopkins University School of Advanced International Studies, and a doctorate from George Washington University.
•

497

Legal Developments
FINAL RULE—AMENDMENT

TO REGULATION

D

The Board of Governors of the Federal Reserve System
(Board) is amending 12 C.F.R. Part 204, its Regulation D
(Reserve Requirements of Depository Institutions), to
reflect the annual indexing of the low reserve tranche and
of the reserve requirement exemption amount for 2004.
The Board is also announcing the annual indexing of the
deposit cutoff level and the reduced reporting limit that
will be effective beginning in September 2004. The Regulation D amendments increase the amount of net transaction accounts at each depository institution that are subject
to a three percent reserve requirement in 2004 from
$42.1 million to $45.4 million. This amount is known as
the low reserve tranche. The Regulation D amendments
also increase the amount of total reservable liabilities of
each depository institution that are subject to a zero percent
reserve requirement in 2004 from $6.0 million to $6.6 million. This amount is known as the reserve requirement
exemption amount. The adjustments to both of these
amounts are derived using statutory formulas specified in
the Federal Reserve Act. The Board is also announcing
increases in two other amounts, the deposit cutoff level and
the reduced reporting limit, that are used to determine the
frequency with which depository institutions must submit
deposit reports. The deposit cutoff level is being increased
from $150.0 million in 2003 to $161.2 million in 2004, and
the reduced reporting limit is being increased from $1.0 billion in 2003 to $1,074 billion in 2004. These amounts are
indexed annually in order to reduce reporting burden for
smaller depository institutions. Thus, beginning in September 2004, depository institutions will be required to file the
FR 2900 report each week under the following conditions:
if they have net transaction accounts over $6.6 million and
have total deposits of at least $161.2 million; or if they
have net transaction accounts of $6.6 million or less but
have total deposits of at least $1,074 billion. Depository
institutions will be required to file the FR 2900 report each
quarter if they have net transaction accounts over $6.6 million but have total deposits of less than $161.2 million.
Depository institutions will be required to file the FR 2910a
report annually if they have net transaction accounts of
$6.6 million or less but have total deposits greater than
$6.6 million but less than $1,074 billion. Depository institutions with $6.6 million or less in total deposits are not
required to file a deposit report.
Effective November 6, 2003, 12 C.F.R. Part 204 is
amended as follows:
Part 204—Reserve Requirements of Depository
Institutions (Regulation D)



1. The authority citation for Part 204 continues to read as
follows:
Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611,
and 3105.
2. Section 204.9 is revised to read as follows:
Section 204.9—Reserve

requirement

ratios

The following reserve requirement ratios are prescribed for
all depository institutions, banking Edge and agreement
corporations, and United States branches and agencies of
foreign banks:
Category
Net transaction accounts:
$0 to $6.6 million
Over $6.6 million and up to
$45.4 million
Over $45.4 million
Nonpersonal time deposits
Eurocurrency liabilities

Reserve Requirement

0 percent of amount.
3 percent of amount.
$1,164,000 plus 10 percent of amount
over $45.4 million.
0 percent.
0 percent.

ORDERS ISSUED UNDER BANK
COMPANY ACT

HOLDING

Orders Issued Under Section 3 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") has requested
the Board's approval under section 3 of the Bank Holding
Company Act ("BHC Act") (12 U.S.C. § 1842) to acquire
all the voting shares of Pacific Northwest Bancorp
("Pacific Northwest") and thereby indirectly acquire
Pacific Northwest Bank ("PN Bank"), both in Seattle,
Washington.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(66 Federal Register 39,563 (2003)). 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 section 3 of the BHC Act.

498

Federal Reserve Bulletin • December 2003

Wells Fargo, with total consolidated assets of approximately $363 billion, is the third largest commercial banking organization in the United States. Wells Fargo operates
subsidiary depository institutions in Alaska, Arizona, California, Colorado, Idaho, Illinois, Iowa, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North
Dakota, Ohio, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming. In Washington, Wells
Fargo controls insured deposits of approximately $3 billion, representing approximately 4 percent of total deposits
of insured depository institutions in the state ("state deposits"). 1 In Oregon, Wells Fargo controls insured deposits of
approximately $4 billion, representing approximately
12 percent of state deposits.
Pacific Northwest, with total consolidated assets of
approximately $3.1 billion, is the 139th largest commercial
banking organization in the United States. Pacific Northwest also operates subsidiary depository institutions in
Washington and Oregon. In Washington, Pacific Northwest
controls insured deposits of approximately $1.8 billion,
representing approximately 3 percent of state deposits. In
Oregon, Pacific Northwest controls insured deposits of
approximately $263 million, representing less than 1 percent of state deposits. On consummation of this proposal,
Wells Fargo would become the fourth largest commercial
banking organization in Washington, controlling deposits
of approximately $5 billion, representing approximately
7 percent of state deposits; Wells Fargo would remain the
third largest commercial banking organization in Oregon
controlling deposits of $4 billion, representing, approximately 13 percent of state deposits.

all the facts of record, the Board is permitted to approve
the proposal under section 3(d) of the BHC Act.

Interstate Analysis

In the Kittitas County banking market, Wells Fargo oper-

Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of such bank holding company if certain conditions
are met.2 For purposes of the BHC Act, the home state of
Wells Fargo is Minnesota, and Pacific Northwest is located
in Washington and Oregon.3 Based on a review of all the
facts of record, including relevant state statutes, the Board
finds that all the conditions for an interstate acquisition
enumerated in section 3(d) are met in this case.4 In light of
1. Asset, deposit, and ranking data are as of June 30, 2002. In this
context, depository institutions include commercial banks, savings
banks, and savings associations.
2. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of such company were the
largest on the later of July 1, 1966, or the date on which the company
became a bank holding company. 12 U.S.C. § 1841(o)(4)(C).
3. For purposes of section 3(d) of the BHC Act, the Board considers a bank to be located in the states in which the bank is chartered,
headquartered, or operates a branch.
4. See 12 U.S.C. §§ 1842(d)(1)(A) and (B), 1842(d)(2)(A) and (B).
Wells Fargo is adequately capitalized and adequately managed, as
defined by applicable law. In addition, on consummation of the
proposal, Wells Fargo would control less than 10 percent of the total
amount of deposits of insured depository institutions in the United
States and less than 30 percent of the total deposits of insured
depository institutions in each of Oregon and Washington. Washing-




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 anticompetitive effects of the
proposal are clearly outweighed in the public interest by
the probable effect of the proposal in meeting the convenience and needs of the community to be served.5
Wells Fargo competes directly with Pacific Northwest in
eight banking markets in Washington and Oregon.6 The
Board has reviewed carefully the competitive effects of the
proposal in each of these banking markets in light of all the
facts of record. In particular, the Board has considered 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
Wells Fargo and Pacific Northwest,7 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 Merger Guidelines ("DOJ
Guidelines"),8 other characteristics of the markets, and
commitments made by Wells Fargo to divest one branch.
A. Banking Market With Divestiture

ton law prohibits the interstate acquisition of a Washington bank that
has existed for fewer than 5 years. This transaction would meet the
minimum age requirements imposed by Washington law. See Wash.
Rev. Code Ann. § 30.04.232 (2003).
5. 12 U.S.C. § 1842(c)(1).
6. These banking markets, which are defined in Appendix A, are
the Bremerton, Centralia, Kittitas County, Mount Vernon, Olympia,
Seattle, and Yakima markets, all in Washington, and the Portland,
Oregon, market.
7. Market share data are as of June 30, 2003, and are based on
calculations in which the deposits of thrift institutions are included at
50 percent. The Board previously has indicated that thrift institutions
have become, or have the potential to become, significant competitors
of commercial banks. See, e.g., Midwest Financial Group, 75 Federal
Reserve Bulletin 386 (1989); National City Corporation, 70 Federal
Reserve Board 743 (1984). Thus, the Board regularly has included
thrift deposits in the market share calculation on a 50 percent weighted
basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve Bulletin 52
(1991).
8. 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 post-merger
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.

Legal Developments

ates the sixth largest depository institution, controlling
$27.5 million in deposits, representing 8.6 percent of market deposits. Pacific Northwest operates the largest depository institution in the market, controlling $72.1 million in
deposits, representing 22.6 percent of market deposits. On
consummation of the proposal, Wells Fargo would operate
the largest depository institution in the market, controlling
deposits of $99.6 million, representing approximately
31.3 percent of market deposits.
To reduce the potential for adverse effects on competition in the Kittitas County banking market, Wells Fargo
has committed to divest to an out-of-market commercial
banking organization one branch with a specified level of
deposits sufficient to make the proposal consistent with
Board precedent and with the thresholds in the DOJ Guidelines.9 After consummation, and taking into account the
proposed divestiture, the Kittitas County banking market
would remain moderately concentrated. Wells Fargo would
become the fourth largest depository institution in the
market, controlling deposits of approximately $67.5 million, representing 21 percent of market deposits. The HHI
would decrease by 36 points to 1541. In addition, at least
eight competitors would remain in the banking market.
B. Banking Markets Without Divestitures
Consummation of the proposal without divestitures would
be consistent with Board precedent and the DOJ Guidelines in all seven of the remaining banking markets
in which Wells Fargo and Pacific Northwest compete
directly.10 After consummation of the proposal, the seven
markets would remain moderately concentrated, as measured by the HHI, and changes in concentration would be
modest in each of these markets. In addition, numerous
competitors would remain in the markets.
C. Views of Other Agencies and Conclusion
The Department of Justice also has conducted a detailed
review of the competitive effects of the proposal and has
advised the Board that, in light of the proposed divestiture,
consummation of the proposal would not have a significantly adverse effect on competition in any relevant banking market.

9. With respect to this market, Wells Fargo will 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
after consummation, it will transfer the unsold branch to an independent trustee that is acceptable to the Board and will instruct the trustee
to sell the branch 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, 77 Federal Reserve Bulletin 484 (1991).
10. These markets are the Bremerton, Centralia, Mount Vernon,
Olympia, Seattle, and Yakima markets in Washington and the Portland, Oregon, market. The effects of the proposal on the concentration
of banking resources in these markets are described in Appendix B.




499

Based on all the facts of record, the Board concludes that
consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any of the banking markets in
which Wells Fargo and Pacific Northwest compete or in
any other relevant banking market. Accordingly, based
on all the facts of record and subject to completion of
the proposed divestiture, 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
certain other supervisory factors. The Board has carefully
considered these factors in light of all the facts of record,
including reports of examination, other confidential supervisory information received from the primary federal banking agency that supervises each institution, and information provided by Wells Fargo. Based on all the facts of
record, the Board has concluded that considerations relating to the financial and managerial resources and future
prospects of Wells Fargo, Pacific Northwest, and PN Bank
are consistent with approval, as are the other supervisory
factors under the BHC Act.
Convenience and Needs Considerations
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 communities to be served
and to take into account the records of the relevant insured
depository institutions under the Community Reinvestment
Act ("CRA"). 11 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 their safe and sound operation, and requires the appropriate federal financial 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 expansionary 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 Pacific Northwest, including public comments on the effect the proposal would
have on the communities to be served by the resulting
organizations.
A. CRA Performance Evaluations
As provided in the CRA, the Board has evaluated the
convenience and needs factor in light of examinations by
the appropriate federal supervisors of the CRA performance records of the relevant insured depository institu11.

1 2 U . S . C . § 2 9 0 1 et

seq.

500

Federal Reserve Bulletin • December 2003

tions. An institution's most recent CRA performance
evaluation is a particularly important consideration in
the applications process because it represents a detailed,
on-site evaluation of the institution's overall record of
performance under the CRA by its appropriate federal
supervisor.12
Wells Fargo's lead bank, Wells Fargo Bank, N.A., also
in San Francisco ("WF Bank"), received an "outstanding"
rating at its most recent CRA performance evaluation by
the Office of the Comptroller of the Currency ("OCC"), as
of October 1, 2001.13 All other subsidiary banks of Wells
Fargo received either "outstanding" or "satisfactory" ratings at their most recent CRA performance evaluations.14
PN Bank received a "satisfactory" rating at its most recent
CRA performance evaluation by the Federal Deposit Insurance Corporation ("FDIC"), as of November 23, 1999.
B. CRA Performance of WF Bank
1. Lending Test. In California, WF Bank received an
"outstanding" rating under the lending test. Examiners
noted that WF Bank's overall geographic distribution of
loans was good, and they characterized the bank's lending
performance in the San Francisco Metropolitan Statistical
Area ("MSA") as excellent. In the assessment areas subject to a full-scope review,15 WF Bank originated or purchased HMDA-reportable loans totaling $42.6 billion. In
the San Francisco and Orange County MSAs, examiners
reported that the proportion of WF Bank's home purchase
loans in low-income census tracts exceeded the proportion
of owner-occupied units in those areas. In the San Francisco and San Jose MSAs, the proportion of WF Bank's
12. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
13. The overall rating for WF Bank is a composite of its state/
multistate ratings. WF Bank's performance in California was weighted
more heavily than its performance in other areas in its overall rating
by examiners because more than 98 percent of its deposits and more
than 87 percent of its loans were in California during the evaluation
period. Examiners rated WF Bank "outstanding" in California. At the
time of the 2001 performance evaluation, WF Bank had 60 assessment
areas in Arizona, California, Colorado, Idaho, Minnesota, Nevada,
Oregon, Utah, and Washington.
14. See Appendix C for the CRA ratings of the other subsidiary
banks of Wells Fargo. One commenter expressed concern that the
performance of Wells Fargo HSBC Trade Bank, N.A., San Francisco
("Trade Bank"), was weak because its performance under the CRA
was limited to qualified investments and community development
services, which examiners characterized as not being "innovative or
complex." As noted in Appendix C, Trade Bank received a "satisfactory" rating at its most recent CRA evaluation. As a wholesale bank,
its CRA activities are limited to community development investments
and services. Examiners described the community development
investments and services provided by Trade Bank as being responsive
to community needs.
15. In California, examiners conducted full-scope reviews for
the bank's Los Angeles-Long Beach, Oakland, Orange County,
San Diego, San Francisco, and San Jose MSAs assessment areas. The
review period for residential mortgage lending reportable under the
Home Mortgage Disclosure Act ("HMDA") (12 U.S.C. § 2801 et seq.)
and small business and small farm lending reportable under CRA was
the last three quarters of 1998, calendar years 1999 and 2000, and the
first three quarters of 2001.




home purchase loans in moderate-income census tracts
also exceeded the proportion of owner-occupied housing
units. Examiners reported that WF Bank enhanced its
efforts to meet the credit needs of its assessment areas
through lending programs, such as the "Easy-To-Own No
Money Down," "Easy-To-Own California 1% Down,"
and "Easy-To-Own 3% Down," which have flexible underwriting standards, low credit-score approvals, high loan-tovalue allowances, and a variety of down payment options.
Wells Fargo has conducted a significant amount of mortgage lending since the latest CRA performance examination. In 2002, WF Bank originated and purchased HMDAreportable loans totaling $88.6 billion, $7 billion of which
were in LMI census tracts.16 In the first six months
of 2003, WF Bank originated and purchased HMDAreportable loans totaling $57.2 billion, $4.8 billion of
which were in LMI census tracts.17
Examiners reported that WF originated loans to small
businesses in the assessment areas subject to a full-scope
review totaling $6 billion during the evaluation period.
Examiners described WF Bank's distribution of small loans
to businesses in the Los Angeles-Long Beach, Oakland,
Orange County, San Diego, and San Jose MSAs as excellent. In 2000, WF Bank had the largest market share of
small loans to businesses in LMI census tracts in the
assessment areas subject to a full-scope review. In the
Orange County and Oakland MSAs, the portion of WF
Bank's small loans to businesses in low-income tracts
exceeded the proportion of all businesses in LMI tracts. In
the San Francisco MSA, the portion of WF Bank's small
loans to business in moderate-income census tracts also
exceeded the proportion of businesses in such tracts.
Since its 2001 performance evaluation, WF Bank has
offered Small Business Administration ("SBA") loans,
such as SBA 7(a) and SBAExpress, that help small businesses obtain financing for which they would not otherwise
qualify. WF Bank also offers "Community Express" loans
through a pilot program developed by the SBA in collaboration with a national community group. To qualify for
Community Express loans applicants must meet certain
size standards and conduct business in specific geographic
areas, usually LMI areas. In 2001, WF Bank introduced
the Business Secured MasterCard. This credit card was
designed to help establish credit for small businesses and
has credit limits from $1,000 to $100,000 and the option to
progress to a partially secured or unsecured card after a
year. Since 2001, a total of 1,711 Business Secured MasterCard accounts have been opened in California.
Examiners reported that, through its community development lending, WF bank helped address a significant
16. One commenter recommended that Wells Fargo refer all qualified mortgage applicants from subprime affiliates to prime affiliates.
Wells Fargo has a program for referring qualified borrowers from
Wells Fargo Financial, Inc., Des Moines, Iowa ("WF Financial"), to
Wells Fargo Home Mortgage, also in Des Moines ("WFHM").
17. Commenters alleged that Wells Fargo aggressively markets
subprime loans to LMI borrowers. The Board has considered WF
Bank's record of lending to borrowers in LMI areas as well as Wells
Fargo's efforts to market prime and subprime loans in LMI areas.

Legal Developments

need for affordable housing. WF Bank made 84 community development loans for affordable housing in the
assessment areas subject to a full-scope review, totaling
$312 million. These loans included a $20.8 million construction loan to build a 293-unit apartment complex in
Anaheim, which will provide affordable housing to households earning between 45 and 50 percent of the average
median income, and a $10.5 million construction loan that
helped build an 80-unit multifamily housing complex for
families of low-income farm workers in Half Moon Bay.
WF Bank also extended loans in the amounts of $7.5 million and $1.7 million to finance the construction of
195 units of affordable housing for LMI individuals in
San Jose.
WF Bank made 108 community development loans,
totaling $658 million, to revitalize or stabilize LMI areas
and to promote economic development. Wells Fargo has
represented that, since the performance evaluation in 2001,
the bank has extended 71 community development loans in
California, totaling $122.2 million.
2. Investment Test. In California, WF Bank received an
"outstanding" rating under the investment test. Examiners
noted that WF Bank's investment and grant activities
helped address essential identified needs in the full-scope
assessment areas. Community development investments
in those assessment areas subject to a full-scope review
totaled $162.4 million and included a $25 million investment in limited partnerships that invest in apartment complexes in California that qualify for low-income housing
tax credits, and a $9 million investment in a real estate
equity fund that provides equity to underutilized industrial and retail sites in LMI communities in Los Angeles.
WF Bank also provided $1.5 million in grants to The
Accelerated School, a charter school in South Central
Los Angeles.
Since the evaluation in 2001, WF Bank has continued
to make community development investments and grants.
In California in 2002, the bank's community development
investments totaled $54.5 million, and its grants totaled
$18 million. During the first six months of 2003, WF
Bank's community development investments in California
totaled $41 million, and its grants totaled $9 million.
3. Service Test. In California, WF Bank received an "outstanding" rating under the service test.18 WF Bank's alternative delivery systems include ATMs, banking by phone
or mail, and Internet banking. During the evaluation period,
the bank operated 874 branch offices and 6,611 ATMs.
In addition, the bank provides Buses, which are mobile
18. One commenter criticized the fees charged by Wells Fargo for
cashing noncustomer checks and other services and for failing to
verify whether a check is valid by telephone. Wells Fargo has represented that, along with many of its competitors, the verification of
individual checks by telephone was terminated because of escalating
account fraud. Although the Board has recognized that banks help
serve the banking needs of their communities by making basic banking services available at a nominal or no charge, the CRA does not
require that banks limit the fees charged for services.




501

technology centers that primarily visit LMI areas; the
Wellsfargo.com Bus, which provides consumer education
and travels throughout the United States; and mobile
branches for use in emergencies and when traditional
branches are unable to function. Examiners found that
WF Bank's banking services are accessible to essentially
all portions of the assessment areas. During the evaluation
period, WF Bank opened 28 branches and closed 199.
Examiners reported that the bank's opening and closing
activity had a neutral impact on LMI areas.
As of July 31, 2003, half of WF Bank's branches in
California were in or within a mile of an LMI community.
In 2001, WF Bank launched the Banking on Our Future
program, a computer-based financial literacy program featuring instructions for young adult and adult residents in
LMI areas. In May 2002, a Spanish language version of
Banking on Our Future was introduced.
C. HMD A and Fair Lending Record
The Board also has carefully considered Wells Fargo's
lending record in light of comments on HMDA data
reported by its subsidiaries.19 The HMDA data reflect
certain disparities in the rates of loan applications, originations, and denials among members of different racial
groups and persons at different income levels in certain
local areas.20 The 2001 and 2002 HMDA data indicate that
Wells Fargo's denial disparity ratios for African-American
and Hispanic applicants generally were higher than the
denial disparity ratios for lenders in the aggregate for
HMDA-reportable loans in the markets reviewed.21 Wells
Fargo's percentage of housing-related loan originations to
19. Commenters criticized Wells Fargo for not differentiating
between prime and subprime loans when reporting data under HMDA.
HMDA reporting requirements do not, however, distinguish between
prime and subprime loans. Commenters also alleged, based on comparisons with county courthouse records, that Wells Fargo underreports loans under HMDA, in part by mischaracterizing some closedend loans as open-end loans that do not have to be reported under
HMDA. Wells Fargo asserts that it reports all mortgage lending
activity in accordance with HMDA regulations, which provide a
consistent disclosure format for all lenders, and acknowledges that
although it occasionally uses an open-end deed of trust to secure a
closed-end loan, such loans are in fact treated as closed-end loans. The
Board notes that courthouse records would not necessarily correspond
to reported HMDA data because not all lenders that record deeds of
trust are subject to HMDA's reporting requirements, and some transactions recorded in courthouse records are not subject to HMDA
reporting.
20. A commenter alleged that Wells Fargo failed to make enough
loans to LMI individuals and minorities in California. Another commenter alleged that, based on 2001 HMDA data, WFHM denied home
mortgage applications from African Americans and Hispanics more
frequently than applications from whites in the Denver, Seattle, Albuquerque, Austin, and Houston MSAs.
21. The Board analyzed 2001 and 2002 HMDA data for Wells
Fargo's lending affiliates in their assessment areas in California,
Colorado, New Mexico, Texas, and Washington. The Board's review
included the HMDA data for WF Bank; Wells Fargo Bank West, N.A.,
Denver, Colorado; Wells Fargo Bank New Mexico, N.A., Albuquerque, New Mexico; Wells Fargo Bank Texas, N.A., Houston, Texas;
WFHM; Wells Fargo Funding, Minneapolis, Minnesota; and WF
Financial.

502

Federal Reserve Bulletin • December 2003

borrowers in minority census tracts22 generally was less
than that of lenders in the aggregate in the markets.23
In 2002, however, Wells Fargo's housing-related loan
originations to African-American individuals, as a percentage of its total HMDA-reportable lending, were equal to or
exceeded that of the aggregate of all lenders in seven of the
markets reviewed. Wells Fargo's housing-related loan
originations to Hispanic individuals, as a percentage of its
total HMDA-reportable lending, were also equal to or
exceeded that of the aggregate of all lenders in five of the
markets reviewed in 2002. Moreover, the HMDA data
generally do not indicate that Wells Fargo is excluding any
race or income segment of the population or geographic
areas on a prohibited basis.24
The Board is concerned when HMDA data for 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.
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, including examination reports that provide an on-site
evaluation of compliance by the subsidiary depository
institutions of Wells Fargo with fair lending laws. Examiners found no evidence of prohibited discrimination or other
illegal credit practices at any of the subsidiary depository
institutions controlled by Wells Fargo. Examiners identified no substantive violations of applicable fair lending
laws and regulations at WF Bank. Examiners also identified no substantive violations of applicable fair lend22. For purposes of this HMDA analysis, minority census tract
means a census tract with a minority population of 80 percent or more.
23. Several commenters expressed concern that low-income and
minority communities have disproportionately high numbers of Wells
Fargo subprime loans, but did not provide evidence to support this
assertion. Commenters also alleged that the subprime lending subsidiaries of Wells Fargo, including WF Financial and Island Finance
Credit Services, Inc., Des Moines, charge excessive interest rates.
Commenters did not explain, however, how the rates charged by these
entities are excessive or provide any evidence that rates charged by
Wells Fargo do not reflect the customer's credit history, risk profile, or
other appropriate factors. The Board has considered these allegations
in light of Wells Fargo's policies and procedures for ensuring compliance with the fair lending laws.
24. Other commenters alleged that Wells Fargo does not explain to
borrowers that credit insurance is optional. Wells Fargo stated that it
does, in fact, present credit insurance to its customers as optional. One
commenter expressed concern that Wells Fargo sells single-premium
credit life insurance. Wells Fargo represented that it does not offer
single-premium credit insurance on real-estate-secured products.




ing laws and regulations at the other subsidiary banks of
Wells Fargo in the performance evaluations listed in
Appendix C.25
The record also indicates that Wells Fargo has taken
steps to ensure compliance with fair lending laws.26 Wells
Fargo's corporate fair lending policy includes standards
relating to advertising and marketing, pricing, underwriting, compliance with fair lending laws, and customer service. The corporate fair lending policy also requires each
Wells Fargo business that extends or supports the extension
of credit to adopt Wells Fargo's corporate fair lending
policy and implement policies and procedures consistent
with the corporate fair lending policy. Policies adopted by
Wells Fargo businesses include comparative file analysis, a
second review process, and self-assessment audits for fair
lending compliance.27 In addition, Wells Fargo has implemented fair lending policy training for executive management, sales management, operations management, sales
staff, operations staff, and consumer contact employees
with loan origination responsibilities.
The Board has also considered the HMDA data in light
of the programs described above and the overall performance of Wells Fargo's subsidiary banks under the CRA.
These established efforts demonstrate that the banks are
active in helping to meet the credit needs of their entire
communities.
D. Branch Closings
One commenter expressed concern about the possible
effect of branch closings resulting from this proposal and
suggested that Wells Fargo refrain from closing branches
in LMI census tracts or rural areas until it has discussed the
proposed branch closure with local community groups.
The Board has carefully considered the comment on potential branch closings in light of all the facts of record. Wells
Fargo has represented that it intends to implement its
25. One commenter criticized the business relationship between
Wells Fargo Bank Minnesota, N.A., Minneapolis, Minnesota ("WF
Minnesota"), and Delta Funding Corp. ("Delta"), Woodbury,
New York, a subprime lender that was subject to government actions
regarding its consumer lending practices. Wells Fargo stated that with
respect to Delta Funding, WF Minnesota's role is limited to that of a
trustee on bond issues secured by pools of mortgage loans that Delta
originated. Wells Fargo represented that WF Minnesota has no role in
the initial funding of the loans that are included in the mortgage pools
or in the establishment of Delta's business practices.
26. A commenter alleged that Wells Fargo does not accurately
report information about borrowers to credit bureaus. Wells Fargo has
represented that it has policies in place to ensure proper reporting to
credit bureaus. In addition, in instances where an error occurs, Wells
Fargo tries to work with the customer to rectify the error as quickly as
possible and send correct information to the credit reporting agency.
27. Some commenters have alleged that Wells Fargo uses deceptive marketing tactics, such as misleading monthly payment comparisons that do not include the costs of taxes and insurance. Commenters
also alleged that Wells Fargo's practice of mailing unsolicited loan
drafts is an abusive marketing tactic. Wells Fargo is required by
the Federal Trade Commission Act (15 U.S.C. §41 et seq.) to market
products in a manner that is not unfair and deceptive. The Board has
considered Wells Fargo's policies and procedures for ensuring that
their marketing efforts are consistent with the law.

Legal Developments

current branch activity policy at Bank. The policy includes
a review of branches proposed for relocation, closure, or
consolidation in low-income communities or where the
distance exceeds two miles to the nearest Wells Fargo
branch.
The Board also has considered that federal banking law
provides a specific mechanism for addressing branch closings.28 Federal law requires an insured depository institution to provide notice to the public and the appropriate
federal supervisory agency before closing a branch. In
addition, the Board notes that the OCC and FDIC, as the
appropriate federal supervisors of Wells Fargo's subsidiary
banks, will continue to review the branch closing records
of the banks in the course of conducting CRA performance
examinations.
E. Conclusion on Convenience and Needs
Considerations
In reviewing the effect of the proposal on the convenience
and needs of the communities to be served, the Board has
carefully considered the entire record, including comments
received and responses to the comments, evaluations of the
performance of the insured depository institution subsidiaries of Wells Fargo and Pacific Northwest under the CRA,
and confidential supervisory information.29 The Board also
considered information submitted by Wells Fargo concerning WF Bank's performance under the CRA and its compliance with fair lending laws since its last CRA performance evaluation and the compliance of other Wells Fargo
lending subsidiaries with fair lending, HMDA, and other
applicable laws.
Based on all the facts of record, and for reasons discussed above, the Board concludes that considerations
relating to the convenience and needs factors, including the
CRA performance records of the relevant depository institutions, 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 application
28. Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
§ 183lr-1), as implemented by the Joint Policy Statement Regarding
Branch Closings (64 Federal Register 34,844 (1999)), requires that a
bank provide the public with at least 30 days' notice and the appropriate federal supervisory agency with at least 90 days' notice before the
date of the proposed branch closing. The bank also is required to
provide reasons and other supporting data for the closure, consistent
with the institution's written policy for branch closings.
29. Commenters criticized Wells Fargo for funding unaffiliated
payday lenders. Wells Fargo stated that its affiliates have provided
credit facilities to payday lenders, often in conjunction with other
major commercial lenders, and such lending represents an insignificant percentage of its commercial lending portfolio. Wells Fargo
represented that it does not participate in the lending practices or
credit review processes of payday lenders to which it extends credit.
The Board notes that the OCC, as the primary federal supervisor of
the subsidiary national banks of Wells Fargo engaged in providing
credit to payday lenders, will continue to review the banks' lending
activities in the course of conducting examinations.




503

should be, and hereby is, approved.30 In reaching this
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. The Board's
approval is specifically conditioned on compliance by
Wells Fargo with all the representations and commitments
made in connection with the application, commitments
referred to in this order, and the receipt of all other regulatory approvals. These representations, 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 transaction shall not be consummated before the
fifteenth calendar day after the effective date of this order,
and the proposal may not be consummated later than three
months after the effective 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 16, 2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON

Deputy Secretary of the Board
Appendix A
Banking Markets in which Wells Fargo and Pacific Northwest Compete Directly
Washington Banking Markets
Bremerton
The Bremerton Ranally Metropolitan Area ("RMA"),
Poulsbo, and Kingston.
30. Several commenters requested that the Board hold a public
hearing on the proposal. Section 3 of the BHC Act does not require
the Board to hold a public hearing on an application unless the
appropriate supervisory authority for any of the banks 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 authority. 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). The Board has considered carefully the commenters' requests in light of all the facts of
record. In the Board's view, the public has had ample opportunity to
submit comments on the proposal, and in fact, the commenters have
submitted written comments that the Board has considered carefully
in acting on the proposal. The commenters' requests fail to demonstrate why their written comments do not present their views adequately or why a meeting or hearing otherwise would be necessary or
appropriate. For these reasons, and based on all the facts of record, the
Board has determined that a public hearing or meeting is not required
or warranted in this case. Accordingly, the requests for a public
hearing on the proposal are denied.

504

Federal Reserve Bulletin • December 2003

Kittitas County, including Cle Elum, Ellensburg, and
Roslyn.

depository institution in the market, controlling $4.7 million in deposits, representing less than 1 percent of market
deposits. On consummation of the proposal, Wells Fargo
would operate the seventh largest depository institution in
the market, controlling deposits of $37.7 million, representing 6.6 percent of market deposits. The HHI would
increase 9 points to 1732. Eleven competitors would
remain in the market.

Mount Vernon

Mount Vernon, Washington

Skagit County and northern Whidbey Island, including
Anacortes, Burlington, Concrete, Coupeville, La Conner,
Mount Vernon, Oak Harbor, and Sedro Woolley.

Wells Fargo operates the ninth largest depository institution in the Mount Vernon banking market, controlling
$53.4 million in deposits, representing 3.2 percent of market deposits. Pacific Northwest operates the second largest
depository institution in the market, controlling $313.2 million in deposits, representing 18.5 percent of market deposits. On consummation of the proposal, Wells Fargo would
operate the largest depository institution in the market,
controlling deposits of $366.6 million, representing
approximately 21.6 percent of market deposits. The HHI
would increase 116 points to 1326. Twelve competitors
would remain in the market.

Centralia

Western Lewis County, including Centralia, Chehalis, Morton, Pe Ell, Toledo, and Winlock.
Kittitas County

Olympia
The Olympia RMA and Hoodsport.
Seattle
The Seattle RMA, Camano City, and Eatonville.
Yakima

Olympia, Washington

The Yakima RMA.
Oregon Banking Market
Portland
The Portland RMA, Banks, Molalla, Mount Angel, Saint
Helens, Scappoose, Vernonia, and Woodburn, Oregon; and
Yacolt, Washington.
Appendix B
Certain Banking Markets Without Divestitures
Bremerton,

Washington

Wells Fargo operates the tenth largest depository institution in the Olympia banking market, controlling $49.2 million in deposits, representing 3 percent of market deposits.
Pacific Northwest is the seventeenth largest depository
institution in the market, controlling $6.9 million in deposits, representing less than 1 percent of market deposits. On
consummation of the proposal, Wells Fargo would operate
the ninth largest depository institution in the market, controlling deposits of $56.1 million, representing approximately 3.4 percent of market deposits. The HHI would
increase 2 points to 1042. Seventeen competitors would
remain in the market.
Yakima, Washington

Wells Fargo operates the eighth largest depository institution in the Bremerton banking market, controlling
$55.5 million in deposits, representing 4.4 percent of market deposits. Pacific Northwest operates the sixth largest
depository institution in the market, controlling $71.9 million in deposits, representing 5.7 percent of market deposits. On consummation of the proposal, Wells Fargo would
operate the fourth largest depository institution in the
market, controlling deposits of $127.4 million, representing approximately 10 percent of market deposits. The
HHI would increase 49 points to 1476. Fourteen competitors would remain in the market.

Wells Fargo operates the eighth largest depository institution in the Yakima banking market, controlling $52.1 million in deposits, representing 4.6 percent of market deposits. Pacific Northwest operates the seventh largest
depository institution in the market, controlling $54.3 million in deposits, representing 4.8 percent of market deposits. On consummation of the proposal, Wells Fargo would
operate the fifth largest depository institution in the market, controlling deposits of $106.4 million, representing
approximately 9.5 percent of market deposits. The HHI
would increase 45 points to 1279. Eleven competitors
would remain in the market.

Centralia,

Seattle, Washington

Washington

Wells Fargo operates the seventh largest depository institution in the Centralia banking market, controlling $33 million in deposits, representing 5.7 percent of market
deposits. Pacific Northwest operates the twelfth largest



Wells Fargo operates the fifth largest depository institution
in the Seattle banking market, controlling $2.4 billion in
deposits, representing 6.3 percent of market deposits.
Pacific Northwest operates the eighth largest depository

Legal Developments

institution in the market, controlling $784.7 million in
deposits, representing 2.1 percent of market deposits. On
consummation of the proposal, Wells Fargo would operate
the fourth largest depository institution in the market,
controlling deposits of $3.2 billion, representing approximately 8.4 percent of market deposits. The HHI would
increase 26 points to 1468. Sixty-seven competitors would
remain in the market.
Portland, Oregon

505

deposits, representing 14.6 percent of market deposits.
Pacific Northwest operates the tenth largest depository
institution in the market, controlling $262.8 million in
deposits, representing 1.5 percent of market deposits. On
consummation of the proposal, Wells Fargo would remain
the third largest depository institution in the market, controlling deposits of $2.8 billion, representing approximately 16.2 percent of market deposits. The HHI would
increase 45 points to 1759. Thirty-two competitors would
remain in the market.

Wells Fargo operates the third largest depository institution
in the Portland banking market, controlling $2.5 billion in
Appendix C
CRA Performance Evaluations of Wells Fargo's Subsidiary Banks
Subsidiary Bank

CRA Rating

Date

Agency

Wells Fargo Bank Alaska, N.A.,
Anchorage, Alaska
Wells Fargo Bank Arizona, N.A.,
Phoenix, Arizona
Wells Fargo Bank Illinois, N.A.,
Galesburg, Illinois
Wells Fargo Bank Indiana, N.A.,
Fort Wayne, Indiana
Wells Fargo Bank Iowa, N.A.,
Des Moines, Iowa
Wells Fargo Bank Michigan, N.A.,
Marquette, Michigan
Wells Fargo Bank Minnesota, N.A.,
Minneapolis, Minnesota
Wells Fargo Bank Montana, N.A.,
Billings, Montana
Wells Fargo Bank Nebraska, N.A.,
Omaha, Nebraska
Wells Fargo Bank Nevada, N.A.,
Las Vegas, Nevada
Wells Fargo Bank New Mexico, N.A.,
Albuquerque, New Mexico
Wells Fargo Bank North Dakota, N.A.,
Fargo, North Dakota
Wells Fargo Bank Northwest, N.A.,
Salt Lake City, Utah
Wells Fargo Bank Ohio, N.A.,
Van Wert, Ohio
Wells Fargo Bank South Dakota, N.A.,
Sioux Falls, South Dakota
Wells Fargo Bank Texas, N.A.,
San Antonio, Texas
Wells Fargo Bank West, N.A.,
Denver, Colorado
Wells Fargo Bank Wisconsin, N.A.,
Milwaukee, Wisconsin
Wells Fargo Bank Wyoming, N.A.,
Casper, Wyoming

Outstanding

March 8, 1999

OCC

Satisfactory

August 2, 1999

OCC

Satisfactory

June 12, 2000

OCC

Outstanding

June 12, 2000

OCC

Satisfactory

June 12, 2000

OCC

Outstanding

April 19, 1999

OCC

Outstanding

Feb. 1, 2000

OCC

Satisfactory

March 13, 2000

OCC

Satisfactory

June 12, 2000

OCC

Satisfactory

August 2, 1999

OCC

Satisfactory

March 13, 2000

OCC

Satisfactory

March 13, 2000

OCC

Outstanding

May 3, 1999

OCC

Outstanding

May 7, 2001

OCC

Outstanding

March 13, 2000

OCC

Satisfactory

Nov. 1, 1999

OCC

Satisfactory

Nov. 1, 1999

OCC

Satisfactory

June 12, 2000

OCC

Satisfactory

March 13, 2000

OCC




506

Federal Reserve Bulletin • December 2003

CRA Performance Evaluations of Wells Fargo's Subsidiary Banks—Continued
Subsidiary Bank

CRA Rating

Date

Agency

Wells Fargo Financial Bank,
Sioux Falls, South Dakota
Wells Fargo Financial National Bank,
Des Moines, Iowa
(previously, Dial National Bank,
Des Moines, Iowa)
Wells Fargo HSBC Trade Bank, N.A.,
San Francisco, California

Outstanding

Nov. 28,2001

FDIC

Outstanding

March 21, 1997

OCC

Satisfactory

August 7, 2000

OCC

Wells Fargo & Company
San Francisco, California

commercial banking organization in the United States and
the largest commercial banking organization in Colorado.

Order Approving the Acquisition of a Bank Holding
Company

Interstate Analysis

Wells Fargo & Company ("Wells Fargo") has requested
the Board's approval under section 3 of the Bank Holding Company Act ("BHC Act") (12 U.S.C. §1842) to
acquire all the voting shares of Two Rivers Corporation
("Two Rivers"), and thereby indirectly acquire Bank of
Grand Junction ("GJ Bank"), both in Grand Junction,
Colorado.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(66 Federal Register 38,340 (2003)). 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 section 3 of the BHC Act.
Wells Fargo, with total consolidated assets of approximately $363 billion and total insured domestic deposits of
$210 billion, is the third largest commercial banking organization in the United States. Wells Fargo operates subsidiary depository institutions in Alaska, Arizona, California,
Colorado, Idaho, Illinois, Iowa, Michigan, Minnesota,
Montana, Nebraska, Nevada, New Mexico, North Dakota,
Ohio, Oregon, South Dakota, Texas, Utah, Washington,
Wisconsin, and Wyoming. Wells Fargo controls approximately 5.9 percent of total assets of insured commercial
banks and approximately 4.4 percent of total deposits of
insured depository institutions in the United States.1 Wells
Fargo is the largest commercial banking organization in
Colorado, controlling deposits of $9.9 billion, representing
approximately 18 percent of total deposits in insured
depository institutions in the state ("state deposits").2
Two Rivers, with total consolidated assets of $72 million operates one depository institution in Colorado. Two
Rivers is the 97th largest depository organization in Colorado, controlling total deposits of $57.6 million, representing less than 1 percent of state deposits. On consummation
of the proposal, Wells Fargo would remain the third largest
1. Asset, deposit, and national ranking data are as of December 31,
2002. In this context, depository institutions include commercial
banks, savings banks, and savings associations.
2. State deposit and state ranking data are as of June 30, 2002.




Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of such bank holding company if certain conditions
are met.3 For purposes of the BHC Act, the home state of
Wells Fargo is Minnesota, and Wells Fargo proposes to
acquire a depository institution in Colorado. Based on a
review of all the facts of record, including a review of
relevant state statutes, the Board finds that all the conditions for an interstate acquisition enumerated in section 3(d) are met in this case.4 In light of all the facts of
record, the Board is permitted to approve the proposal
under section 3(d) of the BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or would be
in furtherance of 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 anticompetitive effects of the
proposal are clearly outweighed in the public interest by
the probable effect of the proposal in meeting the convenience and needs of the community to be served.5
3. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of such company were the
largest on the later of July 1, 1966, or the date on which the company
became a bank holding company. 12 U.S.C. § 1841(o)(4)(C).
4. See 12 U.S.C. §§ 1842(d)(1)(A) and (B), 1842(d)(2)(A) and (B).
Wells Fargo is adequately capitalized and adequately managed, as
defined by applicable law. In addition, on consummation of the
proposal, Wells Fargo would control less than 10 percent of the total
amount of deposits of insured depository institutions in the United
States and less than 30 percent of the total deposits of insured
depository institutions in Colorado. Colorado law prohibits the interstate acquisition of a Colorado bank that has existed for fewer than
than 5 years. This transaction would meet the minimum age requirements imposed by Colorado law. See Colo. Rev. Stat. §11-6.4-103
(2003).
5. 12 U.S.C. § 1842(c)(1).

Legal Developments

The subsidiary depository institutions of Wells Fargo
and Two Rivers currently compete in the Grand Junction,
Colorado, banking market.6 Consummation of the proposal
would be consistent with the Department of Justice Merger
Guidelines ("DOJ Guidelines") and Board precedent.7
After consummation of the proposal, the market would
remain moderately concentrated, as measured by the HHI,
and numerous competitors would remain in the market.8
The Department of Justice also has advised the Board that
it believes that consummation of the proposal is not likely
to have a significantly adverse effect on competition in any
relevant banking market. Based on all the facts of record,
the Board concludes that consummation of the proposal
would not have a significantly adverse effect on competition or on the concentration of banking resources in any
relevant banking market, and that competitive considerations are consistent with approval.
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
certain other supervisory factors. The Board has carefully
considered these factors in light of all the facts of record,
including reports of examination, other confidential supervisory information received from the primary federal banking agency that supervises each institution, and information provided by Wells Fargo. Based on all the facts of
record, the Board has concluded that considerations relating to the financial and managerial resources and future
prospects of Wells Fargo, Two Rivers, and GJ Bank are
consistent with approval, as are the other supervisory factors under the BHC Act.
Convenience and Needs Considerations
In acting on a proposal under section 3 of the BHC Act, the
6. The Grand Junction banking market is defined as Mesa County,
Colorado.
7. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a
market is moderately concentrated if the post-merger HHI is between
1000 and 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.
8. On consummation of the proposal, Wells Fargo would remain
the largest depository institution in the Grand Junction banking market, controlling deposits of $363.9 million, representing approximately 31.3 percent of total deposits in insured depository institutions
in the market. The HHI would increase 261 points to 1556, and the
market would remain moderately concentrated. These calculations use
deposit and market share data as of June 30, 2003, and 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 Midwest
Financial Group, 75 Federal Reserve Bulletin 386 (1989); National
City Corporation, 70 Federal Reserve Bulletin 143 (1984); and First
Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991).




507

Board is required to consider the effects of the proposal on
the convenience and needs of the communities to be served
and to take into account the records of the relevant insured
depository institutions under the Community Reinvestment
Act ("CRA"). 9 The Board has carefully considered the
convenience and needs factor and the CRA performance
records of the subsidiary banks of Wells Fargo and Two
Rivers in light of all the facts of record. Wells Fargo's lead
bank, Wells Fargo Bank, N.A., San Francisco, California
("WF Bank"), received an "outstanding" rating at its most
recent CRA performance evaluation by the Office of the
Comptroller of the Currency ("OCC"), as of October 1,
2001. All other Wells Fargo subsidiary depository institutions received "outstanding" or "satisfactory" CRA ratings at their most recent CRA performance evaluations.10
As discussed in the Board's companion order of October 16, 2003, approving the application by Wells Fargo to
acquire Pacific Northwest Bancorp, Inc., Seattle, Washington, Wells Fargo has implemented many programs to help
meet the convenience and needs of the communities it
serves and has taken steps to ensure compliance with fair
lending laws.11 GJ Bank received a "satisfactory" rating
at its most recent CRA performance evaluation by the
Federal Deposit Insurance Corporation ("FDIC"), as of
August 12, 2002.
One commenter expressed concern about the effect of a
branch closing that may result from this proposal. The
Board has carefully considered the comment on potential
branch closings in light of all the facts of record. Wells
Fargo has represented that the branch in question is in a
middle-income census tract and next door to a Wells Fargo
branch that is less than a mile from Wells Fargo's main
office in Grand Junction.
The Board also has considered that federal banking law
provides a specific mechanism for addressing closings of
branches of insured depository institutions.12 Federal law
requires an insured depository institution to provide notice
to the public and the appropriate federal supervisory
agency before closing a branch. In addition, the Board
notes that the OCC and FDIC, as the appropriate fed9. 12 U.S.C. §2901 et seq.
10. The Interagency Questions and Answers Regarding Community Reinvestment provides that an institution's most recent CRA
performance evaluation is an important consideration in the application process because it represents a detailed on-site evaluation of the
institution's overall record of performance under the CRA by its
appropriate federal supervisor. 66 Federal Register 36,620 and 36,639
(2001).
11. See Wells Fargo & Company, 89 Federal Reserve Bulletin 497
(2003) (Order dated October 16, 2003) ("Pacific Northwest Order").
The CRA ratings of Wells Fargo's other subsidiary banks are listed in
Appendix C of that order. The record of that application and the
findings in the Pacific Northwest Order are incorporated into and
made part of this order.
12. Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
§ 1831r-l), as implemented by the Joint Policy Statement Regarding
Branch Closings (64 Federal Register 34,844 (1999)), requires that a
bank provide the public with at least 30 days' notice and the appropriate federal supervisory agency with at least 90 days' notice before the
date of the proposed branch closing. The bank also is required to
provide reasons and other supporting data for the closure, consistent
with the institution's written policy for branch closings.

508

Federal Reserve Bulletin • December 2003

eral supervisors of Wells Fargo's subsidiary banks, will
continue to review the branch closing records of the
banks in the course of conducting CRA performance
examinations.13
Based on all the facts of record, and for reasons discussed above, the Board concludes that considerations
relating to the convenience and needs factors, including the
CRA performance records of the relevant depository institutions, 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 application
should be, and hereby is, approved. In reaching this 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. The Board's
approval is specifically conditioned on compliance by
Wells Fargo with all the representations and commitments
made in connection with the application and the receipt
of all other regulatory approvals. These representations,
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 transaction shall not be consummated before the
fifteenth calendar day after the effective date of this order,
and the proposal may not be consummated later than three
months after the effective 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 16, 2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON

Deputy Secretary of the Board
Orders Issued Under Section 4 of the Bank Holding
Company Act
Citigroup Inc.
New York, New York
Order Approving Notice to Engage in Activities
Complementary to a Financial Activity
13. The commenter also complained that some Wells Fargo customers were required to travel to Queens, New York, after Wells
Fargo closed an office of its nonbank subsidiary, Island Finance Credit
Services, Inc. ("Island Finance"), a consumer finance company
located in Bronx, New York. Island Finance has since ceased operations in the continental United States, Alaska, and Hawaii. However,
Wells Fargo continues to offer credit products in New York City,
including the Bronx, through offices of its subsidiary, Wells Fargo
Home Mortgage, Inc., Des Moines, Iowa. The commenter raised other
concerns about Wells Fargo that have been addressed in the Pacific
Northwest Order.




Citigroup Inc. ("Citigroup"), a financial holding company
("FHC") within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's
approval under section 4 of the BHC Act (12 U.S.C.
§ 1843) and the Board's Regulation Y (12 C.F.R. Part 225)
to retain all the voting shares of Phibro, Inc., New York,
New York ("Phibro"). Phibro engages in a variety of
commodity-related activities, including trading in physical
commodities, an activity that the Board has not previously
approved under the BHC Act. Citigroup currently owns
Phibro pursuant to the temporary grandfather authority
provided by section 4(a)(2) of the BHC Act.1
Regulation Y currently authorizes bank holding companies ("BHCs") to engage as principal in forward contracts,
options, futures, options on futures, swaps, and similar
contracts, whether traded on exchanges or not, based on a
rate, price, financial asset, nonfinancial asset, or group of
assets (other than a bank-ineligible security) ("Commodity
Derivatives"). Under Regulation Y, a BHC may conduct
Commodity Derivatives activities subject to certain restrictions that are designed to limit the BHC's activity to
trading and investing in financial instruments rather than
dealing directly in physical commodities. Under these
restrictions, a BHC may take and make delivery of physically settled derivatives involving commodities that a state
member bank is permitted to own.2 For all other types of
physically settled derivatives,3 a BHC must make reasonable efforts to avoid delivery on such derivatives or must
take and make delivery only on an instantaneous, passthrough basis. Other than in the limited circumstances
described above in connection with Commodity Derivatives, Regulation Y generally does not permit BHCs to take
or make delivery of nonfinancial commodities.
The BHC Act, as amended by the Gramm-Leach-Bliley
Act ("GLB Act"), permits a BHC to engage in activities
that the Board had determined were closely related to
banking, by regulation or order, prior to November 12,
1999.4 The BHC Act permits a FHC to engage in a broad
range of activities that are defined in the statute to be
financial in nature.5 Moreover, the BHC Act allows FHCs
to engage in any activity that the Board determines, in
consultation with the Secretary of the Treasury, to be
financial in nature or incidental to a financial activity.6

1. Citigroup's grandfather rights expire on October 8, 2003. Citigroup originally acquired its interest in Phibro in October 1998 in
connection with the merger between Travelers and Citicorp. See
Travelers Group Inc., 84 Federal Reserve Bulletin 985 (1998).
2. State member banks may own, for example, investment-grade
corporate debt securities, U.S. government and municipal securities,
foreign exchange, and certain precious metals.
3. These derivative contracts would include instruments based on,
for example, energy-related and agricultural commodities.
4. 12 U.S.C. § 1843(c)(8).
5. The Board determined by regulation before November 12, 1999,
that engaging as principal in Commodity Derivatives, subject to
certain restrictions, was closely related to banking. Accordingly,
engaging as principal in BHC-permissible Commodity Derivatives is
a financial activity for purposes of the BHC Act. See 12 U.S.C.
§1843(k)(4)(F).
6. 12 U.S.C. §1843(k)(l)(A).

Legal Developments

In addition to these provisions, the BHC Act permits
FHCs to engage in any activity that the Board (in its sole
discretion) determines is complementary to a financial
activity and does not pose a substantial risk to the safety or
soundness of depository institutions or the financial system
generally.7 This authority is intended to allow the Board to
permit FHCs to engage on a limited basis in an activity that
appears to be commercial rather than financial in nature,
but that is meaningfully connected to a financial activity
such that it complements the financial activity.8
The only limitations on this complementary authority
are that, in addition to finding a connection between the
nonfinancial activity and a financial activity conducted by
the FHC, the Board must determine that the nonfinancial
activity does not pose unacceptable risks to the safety and
soundness of the FHC, its subsidiary depository institutions, or the U.S. financial system. The safety and soundness requirement was added as part of a compromise in
which Congress rejected requests to allow unrestricted
affiliations between depository institutions and nonfinancial companies. Moreover, the BHC Act provides that any
FHC seeking to engage in a complementary activity must
obtain the Board's prior approval under section 4(j) of the
BHC Act. In reviewing such a proposal, the BHC Act
requires the Board to consider whether performance of the
activity by the FHC can reasonably be expected to produce
public benefits that outweigh possible adverse effects.9
As noted above, Citigroup has requested that the Board
expand the authority of FHCs to purchase and sell commodities in the spot market and to take and make delivery
of physical commodities to settle Commodity Derivatives
("Commodity Trading Activities"). Commodity Trading
Activities substantially involve the commercial activities
of physically owning and disposing of assets such as oil,
natural gas, agricultural products, and other nonfinancial
commodities. Moreover, the risks associated with conducting these activities are commercial risks not traditionally
incurred or managed to a material extent by banking organizations. Accordingly, the Board does not believe that
Commodity Trading Activities may be construed at this
time as incidental to a financial activity within the meaning
of the GLB Act. The Board concludes, however, for the
reasons set forth below, that there is a reasonable basis for
construing these activities as complementary to a financial
activity within the meaning of the GLB Act.
A number of considerations support a Board determination that Commodity Trading Activities are complementary to a financial activity. First, Commodity Trading
Activities flow from the existing financial activities of
FHCs. In particular, Commodity Trading Activities would
provide FHCs with an alternative method of fulfilling their
obligations under otherwise BHC-permissible Commodity
Derivatives. For example, if warranted by market condi7. 12 U.S.C. § 1843(k)(l)(B).
8. See 145 Cong. Rec. H11529 (daily ed. Nov. 4,1999) (Statement
of Chairman Leach) ("It is expected that complementary activities
would not be significant relative to the overall financial activities of
the organization.").
9. 12 U.S.C. § 1843(j)(2)(A).




509

tions, a FHC would be able to use Commodity Trading
Activity authority to take a Commodity Derivative to
physical settlement rather than terminating, assigning, offsetting, or otherwise cash-settling the contract.
The Board also notes that Citigroup contends that the
existing restrictions of Regulation Y place FHCs at a
significant bargaining disadvantage when operating in
physically settled over-the-counter ("OTC") derivatives
markets. According to Citigroup, counterparties to FHCs in
these markets are aware of the regulatory impediments that
inhibit FHCs from taking derivative contracts to physical
settlement. As a consequence, FHCs that participate in
these markets can be forced to terminate or offset their
derivative contracts on uneconomic terms. In Citigroup's
view, allowing FHCs to engage in Commodity Trading
Activities would permit FHCs to compete in physically
settled OTC derivatives markets more economically.
Moreover, authorizing Commodity Trading Activities
would enhance the ability of FHCs to efficiently provide a
full range of commodity-related services to their customers. Granting FHCs increased flexibility to buy and sell
commodities in the spot market and to physically settle
Commodity Derivatives likely would benefit customers by
enabling FHCs to transact more efficiently with customers
in a wider variety of commodity markets and transaction
formats. Approving Commodity Trading Activities as a
complementary activity also would enable FHCs to acquire
more experience in the markets for physical commodities
and thereby improve their understanding of commodity
derivatives markets and the profitability of their existing
BHC-permissible commodity derivatives businesses.
It is also important to note that a number of non-BHC
participants in the commodity derivatives markets, including diversified financial companies, conduct Commodity
Trading Activities in connection with their commodity
derivatives business. These companies can, and regularly
do, buy and sell commodities in the spot market and
physically settle commodity derivative contracts. Permitting FHCs to engage in Commodity Trading Activities in
connection with their commodity derivatives business
would, therefore, enable FHCs to offer services that are
provided by a number of other financial intermediaries.
Based on the foregoing and all other facts of record,
the Board concludes that Commodity Trading Activities
involving a particular commodity complement the financial activity of engaging regularly as principal in BHCpermissible Commodity Derivatives based on that
commodity.10
As noted above, in order to authorize Citigroup to
engage in Commodity Trading Activities as a complementary activity under the GLB Act, the Board also must
determine that the activities do not pose a substantial risk
to the safety or soundness of depository institutions or the
U.S. financial system generally.11 In addition, the Board
10. For example, Commodity Trading Activities involving all types
of crude oil would be complementary to engaging regularly as principal in BHC-permissible Commodity Derivatives based on Brent crude
oil.
11. 12 U.S.C. §1843(k)(l)(B).

510

Federal Reserve Bulletin • December 2003

must determine that the performance of Commodity Trading Activities by Citigroup "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
In order to limit the potential safety and soundness risks
of Commodity Trading Activities, Citigroup has proposed
to engage in only a limited amount of Commodity Trading
Activities. As a condition of this order, the market value of
commodities held by Citigroup as a result of Commodity
Trading Activities must not exceed 5 percent of Citigroup's consolidated tier 1 capital.13 Citigroup also must
notify the Federal Reserve Bank of New York if the market
value of commodities held by Citigroup as a result of its
Commodity Trading Activities exceeds 4 percent of its
tier 1 capital.
In addition, Citigroup may take and make delivery only
of physical commodities for which derivative contracts
have been approved for trading on a U.S. futures exchange
by the Commodity Futures Trading Commission
("CFTC") (unless specifically excluded by the Board) or
which have been specifically approved by the Board.14
This requirement is designed to prevent Citigroup from
becoming involved in dealing in finished goods and other
items, such as real estate, that lack the fungibility and
liquidity of exchange-traded commodities.
Permitting Citigroup to engage in the limited amount
and types of Commodity Trading Activities described
above does not appear to pose a substantial risk to Citigroup, its subsidiary depository institutions, or the U.S.
financial system generally. Through its existing authority
to engage in Commodity Derivatives, Citigroup already
may incur market risk associated with commodities. Permitting Citigroup to buy and sell commodities in the spot
market or physically settle Commodity Derivatives would
not appear to increase significantly the organization's
potential exposure to commodity price risk.
Adding Commodity Trading Activities would, however,
expose Citigroup to additional risks, including, but not
limited to, storage risk, transportation risk, and legal and
12. 12 U.S.C. §1843(j).
13. Citigroup would be required to include in this 5 percent limit
the market value of any commodities held by Citigroup as a result of
a failure of its reasonable efforts to avoid taking delivery under section 225.28(b)(8)(ii)(B) of Regulation Y. In the past, the market value
of commodities held by BHCs as a result of an inability to avoid
delivery on Commodity Derivatives has not been material.
14. The particular commodity derivative contract that Citigroup
takes to physical settlement need not be exchange-traded, but (in the
absence of specific Board approval) futures or options on futures on
the commodity underlying the derivative contract must have been
approved for exchange trading by the CFTC.
The CFTC publishes annually a list of the CFTC-approved commodity contracts. See Commodity Futures Trading Commission,
FY 2002 Annual Report to Congress 124. With respect to granularity,
the Board intends this requirement to permit Commodity Trading
Activities involving all types of a listed commodity. For example,
Commodity Trading Activities involving any type of coal or coal
derivative contract would be permitted, even though the CFTC list
specifically approves only Central Appalachian coal.




environmental risks. To minimize these risks, Citigroup
would not be authorized to
(i) Own, operate, or invest in facilities for the extraction,
transportation, storage, or distribution of commodities;
or
(ii) Process, refine, or otherwise alter commodities. In
conducting its Commodity Trading Activities, Citigroup will be expected to use appropriate storage and
transportation facilities owned and operated by third
parties.15
Citigroup has indicated that it will mandate that
commodity storage facilities used by Citigroup have all
required governmental permits and provide to Citigroup a
certificate to that effect. Citigroup has further stated that
all commodity storage facilities will be inspected by or
on behalf of Citigroup before use and that Citigroup will
physically inspect any commodity in storage every six
months.
In addition, Citigroup has indicated that it will adopt
additional standards for Commodity Trading Activities that
involve environmentally sensitive products, such as oil or
natural gas. For example, Citigroup will require that the
owner of every vessel that carries oil on behalf of Citigroup be a member of a protection and indemnity club and
carry the maximum insurance for oil pollution available
from the club. Citigroup also will require every such vessel
to carry substantial amounts of additional oil pollution
insurance from creditworthy insurance companies. Furthermore, Citigroup will place age limitations on vessels and
will require vessels to be approved by a major international
oil company and have appropriate oil spill response plans
and equipment. Moreover, Citigroup will have a comprehensive backup plan in the event any vessel owner fails to
respond adequately to an oil spill and will hire inspectors
to monitor the loading and discharging of vessels.
Citigroup also has represented that it will have in place
specific policies and procedures for the storage of oil. In
addition to the general policies set forth above, Citigroup
will require all oil storage facilities it uses to carry a
significant amount of oil pollution insurance from a creditworthy insurance company and to have appropriate spill
response plans and equipment. Citigroup also will have a
comprehensive backup plan in the event the storage facility
owner fails to respond adequately to an oil spill.
Finally, Citigroup and its Commodity Trading Activities
will remain subject to the general securities, commodities,
and energy laws and the rules and regulations (including
the antifraud and antimanipulation rules and regulations) of
the Securities and Exchange Commission, the CFTC, and
the Federal Energy Regulatory Commission.
The Board believes that Citigroup has the managerial
expertise and internal control framework to manage the
risks of taking and making delivery of physical commodi15. Approving Commodity Trading Activities as a complementary
activity, subject to limits and conditions, would not in any way restrict
the existing authority of Citigroup to deal in foreign exchange, precious metals, or any other bank-eligible commodity.

Legal Developments

ties. In addition, Citigroup has the expertise and internal
controls to integrate effectively the risk management of
Commodity Trading Activities into Citigroup's overall risk
management framework, including managing on a consolidated basis Citigroup's overall exposure arising from
commodity-related activities.
Approval of the proposal likely would benefit Citigroup's customers by enhancing the ability of Citigroup
to provide efficiently a full range of commodity-related
services. Approving Commodity Trading Activities for
Citigroup also would enable the company to improve its
understanding of physical commodity and commodity
derivatives markets and its ability to serve as an effective
competitor in physical commodity and commodity derivatives markets.
For these reasons, and based on Citigroup's policies and
procedures for monitoring and controlling the risks of
Commodity Trading Activities, the Board concludes that
consummation of the proposal does not pose a substantial
risk to the safety and soundness of depository institutions
or the financial system generally and can reasonably be
expected to produce benefits to the public that outweigh
any potential adverse effects.
Based on all the facts of record, including the representations and commitments made by Citigroup in connection
with the notice, and subject to the terms and conditions set
forth in this order, the Board has determined that the notice
should be, and hereby is, approved. The Board's determination is subject to all the conditions set forth in Regulation Y, including those in section 225.7 (12 C.F.R. 225.7),
and to the Board's authority to require modification or
termination of the activities of a BHC or any of its subsidiaries as the Board finds necessary to ensure compliance
with, or to prevent evasion of, the provisions and purposes
of the BHC Act and the Board's regulations and orders
issued thereunder. The Board's decision is specifically
conditioned on compliance with all the commitments made
in connection with the notice, including the commitments
and conditions discussed in this order. The commitments
and conditions relied on in reaching this decision 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.
By order of the Board of Governors, effective October 2,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, and Bernanke. Absent and
not voting: Governor Kohn.
ROBERT DEV. FRIERSON

Deputy Secretary of the Board
ORDERS ISSUED UNDER BANK MERGER ACT
JP Morgan Chase Bank
New York, New York
Order Approving Acquisition of Trust Deposits



511

JPMorgan Chase Bank ("JPMCB"), a state member bank,
has applied under section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger Act")
to acquire certain trust deposits from Bank One, National
Association (Ohio), Bank One Trust Company, National
Association, both in Columbus, Ohio, and Bank One,
National Association (Chicago), Chicago, Illinois (the
"Bank One Banks"). 1
Notice of the transaction, affording interested persons an
opportunity to submit comments, has been given in accordance with the Bank Merger Act and the Board's Rules of
Procedure (12 C.F.R. 262.3(b)). 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 the Bank Merger Act.
JPMCB, with total assets of $662 billion, is a wholly
owned subsidiary of J.P. Morgan Chase & Co., New York,
New York, the second largest banking organization in the
United States, with total assets of $803 billion. The Bank
One Banks are subsidiaries of the Bank One Corporation,
also in Chicago, the sixth largest banking organization in
the United States, with total assets of $299 billion. JPMCB
proposes to acquire certain trust relationships and related
trust deposits from the Bank One Banks.
Competitive Considerations
The Bank Merger Act prohibits the Board from approving
an application if the proposal would result in a monopoly
or would be in furtherance of any attempt to monopolize the business of banking.2 The Bank Merger Act also
prohibits the Board from approving a proposal that
would substantially lessen competition or tend to create a
monopoly in any relevant market, unless the Board finds
that the anticompetitive effects of the proposed transaction
are clearly outweighed in the public interest by the probable effects of the transaction in meeting the convenience
and needs of the communities to be served.3
The Board has reviewed the competitive effects of the
proposal in the relevant markets in light of all the facts of
record, including the number of competitors that would
remain in the markets, the relative market shares of
JPMCB and the Bank One Banks, and other characteristics
of the markets. The proposed acquisition would have no
adverse effect on the concentration of banking resources in
any relevant banking market. Moreover, the Board has
received no objections to the proposal from the Department of Justice or the other federal banking agencies. In
light of all the facts of record, the Board concludes that
consummation of the proposed transaction would not result
in a significantly adverse effect on competition or on the
1. The proposal is part of a larger transaction that also involves
the acquisition of trust appointments from the Bank One Banks by
J.P. Morgan Trust Company, National Association, Los Angeles,
California ("IPMTC"). JPMTC has applied to the Office of the
Comptroller of the Currency ("OCC") for prior approval of that
portion of the transaction.
2. 12 U.S.C. § 1828(c)(5)(A).
3. 12 U.S.C. § 1828(c)(5)(B).

512

Federal Reserve Bulletin • December 2003

concentration of banking resources in any relevant banking
market, and that competitive factors are consistent with
approval.
Financial and Managerial Factors
The Bank Merger Act requires the Board to consider the
financial and managerial resources and future prospects of
the institutions involved in this proposal. The Board has
reviewed these factors in light of all the facts of record,
including supervisory reports of examination assessing the
financial and managerial resources of JPMCB, information
provided by JPMCB, and public comments on the proposal.4 In light of the managerial record of JPMCB and the
small size of the transaction relative to JPMCB's total
deposits and assets, and based on all the facts of record, the
Board concludes that the financial and managerial
resources and future prospects of the institutions involved
are consistent with approval of the proposal.
Convenience and Needs Considerations
In acting on a proposal under the Bank Merger Act, the
Board is required to consider the effects of the proposal on
the convenience and needs of the communities to be
served.5 The Community Reinvestment Act ("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 financial supervisory agency to take into
account an institution's record of meeting the credit needs
of its entire community, including low- and moderateincome ("LMI") neighborhoods, in evaluating a proposal
under the Bank Merger Act.6
The Board has carefully considered the convenience and
needs factor and the CRA performance records of JPMCB
in light of all the facts of record, including public comments on the proposal. A commenter opposing the proposal has alleged, based on data submitted under the Home
4. A commenter opposing the proposal cited press reports of
J.P. Morgan Chase & Co.'s connection to investigations, lawsuits, and
settlements relating to Enron Corp., and asserted that these issues
reflected unfavorably on the managerial resources of JPMCB. The
Board has considered this comment in light of the measures that
J.P. Morgan Chase & Co. has taken and is continuing to take to
address these matters and strengthen the financial holding company's
risk-management practices.
The commenter also provided press reports of litigation arising
from the acquisition of a small number of mortgage loans from a
mortgage broker by Chase Manhattan Mortgage Corporation, Edison,
New Jersey ("CMMC"), a subsidiary of JPMCB, and asserted that
JPMCB and CMMC lacked adequate policies and procedures for
monitoring the acquisition of loans on the secondary market. The
Board has considered this information in light of the number of loans
involved; the information available to the management of JPMCB and
CMMC at the time; the experience, policies, and procedures of the
management of JPMCB and CMMC; and confidential supervisory
information.
5. 12 U.S.C. § 1828(c)(5).
6. 12 U.S.C. §2901 et seq.




Mortgage Disclosure Act ("HMDA"), 7 that CMMC, a
subsidiary of JPMCB,8 denied home mortgage loan applications from minorities more frequently than it denied
applications from nonminorities in certain Metropolitan
Statistical Areas ("MSAs"). 9
A. Record of Performance under the CRA
As provided in the CRA, the Board has evaluated the
convenience and needs factor in light of examinations
by the appropriate federal supervisors of the CRA performance records of the relevant insured depository institutions. An institution's most recent CRA performance
evaluation is a particularly important consideration in the
applications process because it represents a detailed,
on-site evaluation of the institution's overall record of
performance under the CRA by its appropriate federal
supervisor.10
JPMCB received an "Outstanding" rating at its most
recent examination for CRA performance by the Federal
Reserve Bank of New York, as of July 9, 2001.11 Examiners noted that JPMCB had excellent levels of community
development lending and qualified investments and was
considered a leader in providing community development
services.
B. HMDA Data and Fair Lending Record
The Board has carefully considered the lending records of,
and HMDA data reported by, JPMCB, CMMC, and Chase
USA in light of the comments received.'2 The commenter
alleged, based on 2002 HMDA data, that CMMC disproportionately excluded or denied African-American and
Hispanic applicants for home mortgage loans in the Benton
Harbor MI; Boston, MA; Dallas, TX; Detroit, MI; Raleigh,
NC; Richmond, VA; San Francisco, CA; St. Louis, MO;
and Washington, DC MSAs.13 The commenter asserted
7. 12 U.S.C. §2801 et seq.
8. CMMC became a subsidiary of JPMCB in March, 2002. Before
that time, CMMC was a subsidiary of Chase Manhattan Bank USA,
N.A., Newark, Delaware ("Chase USA"), an affiliate of JPMCB.
9. The commenter also alleged that CMMC's purchase of certain
mortgage loans on the secondary market enabled predatory lending by
an unaffiliated consumer lender. The Board notes that on discovering
that a small number of home mortgage loans acquired by CMMC
presented appraisal and valuation problems, which caused borrowers
to hold mortgages with balances greater than the value of their homes,
CMMC took remedial steps, including discontinuing its relationship
with the originator of those loans and offering to assist the affected
homeowners by reducing interest rates and principal balances.
10. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
11. In addition, Chase USA received an "Outstanding" rating from
the OCC, as of March 3, 2003. Examiners commended Chase USA's
community development lending and flexible loan programs and
noted that Chase USA's responsiveness to the credit and community
development needs of its assessment area, through high levels of
qualified investments and grants, was excellent.
12. The Board included data submitted by Chase USA in its review
because, as noted above, Chase USA was the parent of CMMC until
March 2002.
13. In response, JPMCB noted that the commenter's analysis was
based on data from only a few MSAs and included only conventional

Legal Developments

that CMMC's denial ratios for minority applicants were
higher than for nonminority applicants, and that those
denial disparity ratios compared unfavorably with that of
the aggregate of lenders in the MSAs.14
The Board has reviewed data reported by JPMCB,
CMMC, and Chase USA for all HMDA loans for the
two-year period beginning January 1, 2001. The denial
disparity ratios reflected in the HMDA data reported by
JPMCB, CMMC, and Chase USA in 2002 generally
were more favorable than, or comparable with, the ratios
reported by the aggregate of lenders in nine of the ten
markets reviewed. The ratio approximated, but was somewhat less favorable than, that of the aggregate in the
Boston MSA.
The HMDA data do not indicate that JPMCB, CMMC,
or Chase USA has excluded any segment of the population
or any geographic area on a prohibited basis. The Board,
nevertheless, 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 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 covered loans.15 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, including examination reports that provide on-site
evaluations of compliance with fair lending laws by
JPMCB and its predecessor bank, Chase Manhattan
Bank.16 Examiners found no evidence of prohibited discrimination or other illegal credit practices at JPMCB,
Chase Manhattan Bank, Chase USA, or CMMC.
The record also indicates that JPMCB and CMMC have
taken several affirmative steps to ensure compliance with
fair lending laws. Management at JPMCB and CMMC
home purchase loans originated by CMMC in 2002, and that the
sample, therefore, was too small to represent JPMCB's overall mortgage lending performance.
14. The denial disparity ratio equals the denial rate for a particular
racial category (for example, African American) divided by the denial
rate for whites.
15. 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.
16. JP Morgan Chase Bank was formed after the merger of Chase
Manhattan Bank and Morgan Guaranty Trust Company in the fourth
quarter of 2001.




513

conduct comparative file reviews for most of their loan
products. JPMCB and CMMC have a secondary review
process that includes regression analysis of all applications
to identify possible instances or indications of disparate
treatment, and JPMCB indicates that when inappropriate
underwriting decisions are identified, it takes prompt corrective action, including sending offers of credit to individuals whose applications were denied in error. In addition, an independent review team, under the direction of
the fair lending unit, reviews applications identified by the
regression analysis and reports its findings to the audit
department quarterly.
The Board also has considered the HMDA data in light
of other information, including the CRA performance
records of JPMCB, Chase Manhattan Bank, and Chase
USA. The Board concludes that, in light of the entire
record, JPMCB's record of performance in helping to serve
the credit needs of its community is consistent with
approval of the proposal.
Conclusion
Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved. Approval of the application is specifically conditioned on receipt of all required regulatory
approvals. For purposes of this action, the commitments
and conditions relied on in reaching this decision are
conditions imposed in writing by the Board and, as such,
may be enforced in proceedings under applicable law.
The proposal may not be consummated before the fifteenth calendar day after the effective date of this order, or
later than three months after the effective date of this order,
unless such period is extended for good cause by the Board
or by the Federal Reserve Bank of New York, acting
pursuant to delegated authority.
By order of the Board of Governors, effective October 30, 2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
JENNIFER J. JOHNSON

Secretary of the Board

514

Federal Reserve Bulletin • December 2003

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)

1867 Western Financial Corporation, Central Valley Bancorp,
Modesto, California
Stockton, California
Modesto Commerce Bank,
Modesto, California
The Bank of the South,
Bancsouth Financial Corporation,
Crystal Springs, Mississippi
Crystal Springs, Mississippi
Clinton Financial Services, MHC,
Clinton Savings Bank,
Clinton, Massachusetts
Clinton, Massachusetts
Wachusett Financial Services, Inc.,
Clinton, Massachuset
Community Banks of Georgia, Inc., Community Bank of Pickens County,
Jasper, Georgia
Jasper, Georgia
Covenant Bank,
Covenant Financial Corporation,
Clarksdale, Mississippi
Clarksdale, Mississippi
GLB Bancorp, Inc.,
Sky Financial Group, Inc.,
Mentor, Ohio
Bowling Green, Ohio
Great Lakes Bank,
Mentor, Ohio
Wabeno Bancorporation, Inc.,
Tomah Bancshares, Inc.,
Venice, Florida
Tomah, Wisconsin
Timberwood Bank,
Wabeno, Wisconsin
The Trust Company of New Jersey,
Trustcompany Bancorp,
Jersey City, New Jersey
Jersey City, New Jersey

Reserve Bank

Effective Date

San Francisco

October 14, 2003

Atlanta

October 10, 2003

Boston

October 10, 2003

Atlanta

October 23, 2003

St. Louis

October 23, 2003

Cleveland

October 3, 2003

Minneapolis

October 3, 2003

New York

October 1, 2003

Section 4
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Cedar Investment Company,
Waverly, Iowa

To engage, de novo, in the permissible
nonbanking activity of extending
credit and servicing loans
Hypo Real Estate Holding AG,
Munich, Germany
HVB Real Estate Capital Corporation,
New York, New York

Chicago

October 23, 2003

New York

September 29, 2003

Miinchener RiickversicherungsGesellschaft Aktiengesellschaft,
Miinchen, Germany




Legal Developments

515

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

The Farmers & Merchants Bank,
Stuttgart, Arkansas

Union Planters Bank,
National Association,
Memphis, Tennessee
Fifth Third Bank, Florida,
Naples, Florida
Fifth Third Bank, Indiana
Indianapolis, Indiana
Fifth Third Bank, Kentucky,
Louisville, Kentucky
Fifth Third Bank, Northern Kentucky,
Covington, Kentucky
Premier Bank,
Doylestown, Pennsylvania
Inter Savings Bank, FSB,
Edina, Minnesota

St. Louis

October 1, 2003

Cleveland

October 3, 2003

Philadelphia

October 3, 2003

Atlanta

October 9, 2003

Fifth Third Bank,
Grand Rapids, Michigan

Lafayette Ambassador Bank,
Easton, Pennsylvania
Regions Bank,
Birmingham, Alabama

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.
Diehl McCarthy v. Board of Governors, No. 03-73997 (9th
Cir., filed October 28, 2003). Petition for review of an
order of prohibition issued by the Board on October 15,
2003.
Ulrich v. Board of Governors, No. 03-73854 (9th Cir., filed
October 24, 2003). Petition for review of an order of
prohibition issued by the Board on October 15, 2003.
Tavera v. Von Nothaus, et al., No. 03-763 (D. Oregon, filed
June 5, 2003). Civil rights action for violation of rights
in connection with the plaintiff's prosecution for passing
"Liberty dollar coins" as lawful money.
Carter v. Greenspan, No. 03-CV-1026 (D.D.C., filed
May 9, 2003). Employment discrimination action.
Apffel v. Board of Governors, No. 03-343 (S. D. Texas,
filed May 20, 2003). Freedom of Information Act case.




Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir.,
filed October 18, 2002). Appeal of district court order
dismissing challenge to the method of funding of the
retirement plan for certain Board employees.
Community Bank & Trust v. United States, No. 01-571C
(Ct. Fed. CI., filed October 3, 2001). Action challenging
on constitutional grounds the failure to pay interest on
reserve accounts held at Federal Reserve Banks.
Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., complaint filed February 22, 2001). Employment discrimination action. On August 15, 2001, the district court
consolidated the action with Artis v. Greenspan, No. 99CV-2073 (EGS) (D.D.C., filed August 3, 1999), also an
employment discrimination action.
Fraternal Order of Police v. Board of Governors,
No. 1:98CV03116 (WBB)(D.D.C„ filed December 22,
1998). Declaratory judgment action challenging Board
regulation on labor-management relations at Reserve
Banks.

516

Federal Reserve Bulletin • December 2003

To Readers of the Legal Developments Section of the Bulletin
The materials currently contained in the Legal Developments section of the Federal Reserve Bulletin are also
available in various publications, in press releases, and on
the Board's web site. The Board's Legal Developments web
site, launched in September 2002, provides a convenient
way of gaining access to material that has been published in
the Bulletin for many years. The site is updated as orders
and actions are finalized.
• Selected rulemaking actions (proposed and final) are first
issued as press releases, which are available on the
Board's web site at www.federalreserve.gov/boarddocs/
press/bcreg/2003/. They are then published in the Federal
Register

(www.gpoaccess.gov/fr/index.html).

On

the

Board's site, they can also be found in the Legal Developments section of the Banking Information and Regulation page at www.federalreserve.gov/boarddocs/
legaldevelopments/rulemaking/. Interested persons may
view proposals published for comment and comments
received at www.federalreserve.gov/generalinfo/foia/
ProposedRegs.cfm. Comments on proposals may also be
submitted through this web site, by electronic mail, or in
writing.
• Board orders issued under the Bank Holding Company
Act, the Bank Merger Act, the Federal Reserve Act, and
the International Banking Act are issued as attachments
to press releases, which are available from 1996 on the
Board's web site at www.federalreserve.gov/boarddocs/
press/orders/2003/. Board orders issued under the
Bank Holding Company Act can also be found at
www.federalreserve.gov/boarddocs/legaldevelopments/
ordersbhc/. Board orders issued under the Bank Merger
Act, the Federal Reserve Act, and the International Bank-




ing Act, can also be found at www.federalreserve.gov/
boarddocs/legaldevelopments/ordersother/.
• Applications approved under the Bank Holding Company
Act, the Bank Merger Act, the Federal Reserve Act, and
the International Banking Act are listed in the Board's
weekly H.2 release "Actions of the Board, Its Staff, and
the Federal Reserve Banks; Applications and Reports
Received," which is available in paper copies by subscription from Publications Fulfillment and on the
Board's web site at www.federalreserve.gov/releases/h2.
• Enforcement actions are issued as press releases. Actions
since 1997 are available at www.federalreserve.gov/
boarddocs/press/enforcement/2003/; actions since 1989
can be located by going to "Enforcement Actions" from
the Banking and Information and Regulation page at
www.federalreserve.gov/boarddocs/enforcement/.
Paper copies of these documents are also available
upon request from the Board's Freedom of Information
Office. Requests may be submitted by facsimile (202-8727565); online at www.federalreserve.gov/generalinfo/foia/
request.cfm; or by mail to the Secretary, Board of Governors of the Federal Reserve System, Freedom of
Information Office, Washington, DC 20551.
Pending cases are listed in the Board's Annual
Report
in the "Litigation" chapter and on the web site at
www.federalreserve.gov/boarddocs/legaldevelopments/
cases.htm.
Because it is available elsewhere in a more timely fashion, much of the material currently being published in the
Legal Developments section of the Bulletin will no longer
be included in the Bulletin when it becomes a quarterly.
Only Board orders will be included.

A]

Financial and Business Statistics
A3

Federal

GUIDE TO TABLES
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank

A4
A5
A6

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

A7
A8
A9

Credit

A25 Federal debt subject to statutory limitation
A25 Gross public debt of U.S. Treasury—
Types and ownership
A26 U.S. government securities
dealers—Transactions
All U.S. government securities dealers—
Positions and financing
A28 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate

Instruments

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 loans and securities
and Credit

Aggregates

A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock measures
Commercial
Assets and
A15
A16
A17
A19
A20

Banking
Liabilities

Institutions—

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

Finance

A29 New security issues—Tax-exempt state and local
governments and U.S. corporations
A30 Open-end investment companies—Net sales
and assets
A30 Domestic finance companies—Assets and liabilities
A31 Domestic finance companies—Owned and managed
receivables
Real

Monetary

Finance

Estate

A3 2 Mortgage markets—New homes
A3 3 Mortgage debt outstanding
Consumer

Credit

A34 Total outstanding
A34 Terms
Flow of Funds
A35
A37
A3 8
A39

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

Markets

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




DOMESTIC NONFINANCIAL STATISTICS
Selected

Measures

A40 Output, capacity, and capacity utilization
A42 Industrial production—Indexes and gross value

45

Federal Reserve Bulletin • December 2003

INTERNATIONAL STATISTICS
Summary

Securities Holdings and

Statistics

A44 U.S. international transactions
A44 US. reserve assets
A45 Foreign official assets held at Federal Reserve
Banks
A45 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United
A45
A46
A48
A49

States

Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
Reported by Nonbanking
Enterprises in the United

Business
States

A50 Liabilities to unaffiliated foreigners
A52 Claims on unaffiliated foreigners




Transactions

A54 Foreign transactions in securities
A55 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange

Rates

A56 Foreign exchange rates
A57 GUIDE TO SPECIAL TABLES AND
STATISTICAL RELEASES
A58 INDEX TO STATISTICAL TABLES

A3

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

*

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

Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears in column heading
when about half the figures in the column have
been revised from the most recently published
table.)
Amount insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is in millions)
Calculated to be zero
Cell not applicable
Asset-backed security
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Agricultural Mortgage Corporation
Federal Financing Bank
Federal Financial Institutions Examination Council
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Farm Service Agency
Federal Savings and Loan Insurance Corporation

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

Group of Seven
Group of Ten
Gross domestic product
Government National Mortgage Association
Government-sponsored enterprise
Department of Housing and Urban
Development
International Monetary Fund
Interest only, stripped, mortgage-backed securities
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
North American Industry Classification System
Negotiable order of withdrawal
Other checkable deposits
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only, stripped, mortgage-backed 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
Treasury inflation-indexed securities
Department of Veterans Affairs

GENERAL INFORMATION
In many of the tables, components do not sum to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also




include not fully guaranteed issues) as well as direct obligations of the U.S. Treasury.
"State and local government" also includes municipalities,
special districts, and other political subdivisions.

A4
1.10

DomesticNonfinancialStatistics • December 2003
RESERVES A N D MONEY STOCK MEASURES
Percent annual rate of change, seasonally adjusted1
2002

2003

2003

Monetary or credit aggregate
Aug.1"

Sept.

31.7
31.1
32.7
.6

64.3
14.7
59.1
9.7

-34.2
26.5
-30.6
3.4

13.3
9.1'
93'

5.5
10.1
17.8

7.3
8.4
3.4

2.0
-4.4
-2.9

17.5r
2.2

8.8r
8.2

11.3
34.9

8.8
-7.6

-6.1
.2

QI

1.0
-1.4
1.9
5.1

11.3
11.4
12.8
7.6

6.7
8.1
6.2
5.9

34.0
28.1
32.8
4.1

5.3
2.8
4.5
5.1

53.0
48.0
49.9
3.4

Concepts of money*
5 Ml
6 M2
7 M3

4.9
7.0
7.8

7.5
6.4
5.6

9.2
8.5r
6.4r

8.9
9.0
9.9

20.3
18.l r
13. r

Nontransaction
8 In M2 5
9 In M3 only 6

7.6
9.5

6.0
3.9

8.4r
1.8

9.0
12.0

I
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base 3

Q2

Q3

Q4

May

June

Julyr

2

institutions

components

Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time 7
Large time8'9
Thrift institutions
13
Savings, including MMDAs
14
Small time 7
15
Large time 8

16.8
-7.4
-5.6

13.6
-7.1
-4.5

16.5
-8.6
2.1

20.5
-14.8
30.2

23.5
-10.2
7.0

21.5
-10.9
-6.6

28.3
-19.1
96.4

19.1
-16.6
-3.9

-7.3
-12.7
-2.3

20.0
-6.0
11.9

21.9
-6.6
8.9

24.6
-9.0
-2.1

21.0
-14.0
16.4

40.5
-11.8
-10.2

13.2
-13.2
11.3

21.5
-14.6
34.6

22.2
-16.8
16.8

10.5
-12.0
-2.9

Money market mutual funds
16 Retail
17 Institution-only

-6.3
2.1

-9.9'
-4.9

-1.2'
-14.7

-7.1
12.5

10.7r
-20.1

-6.2 r
20.3

-12.5
42.1

-6.3
-19.6

-12.2
6.1

Repurchase agreements and eurodollars
18 Repurchase agreements 10
19 Eurodollars 10

47.7
28.9

31.4
19.2

27.8
32.0r

-17.2
18.5

19.3
62.8 r

6.3
-1.8

-57.9
26.9

-8.5
26.7

4.9
-26.1

10
11
12

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 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 (including MMDAs), (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds.
Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination




time deposits, and retail money fund balances, each seasonally adjusted separately, and
adding this result to seasonally adjusted M1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all
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.
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

RESERVE BALANCES OF DEPOSITORY INSTITUTIONS 1
Millions of dollars

Factor

Average of
daily figures

Average of daily figures for week ending on date indicated

2003

2003

July

Aug.

Sept.

Aug. 13

Aug. 2 0

Aug. 2 7

Sept. 3

Sept. 10

Sept. 17

Sept. 24

716,576
652,630
652,620
239,480
398,853
12,814
1,473
10
24,153
114
5
0
109
147
39,532
11,044
2,200
35,104

718,212
653,374
653,364
240,227
398,853
12,814
1,470
10
25,774
330
168
15
147
346
38,387
11,043
2,200
35,188'

720,656
655,412
655,402
241,209
399,372
13,305
1,516
10
26,800
184
25
0
159
-13
38,273
11,043
2,200
35,268

711,824
653,072
653,062
239,927
398,853
12,814
1,467
10
17,679
145
7
0
138
595
40,334
11,043
2,200
35,168'

726,539
653,446
653,436
240,298
398,853
12,814
1,471
10
34,071
937
719
66
152
842
37,243
11,043
2,200
35,191'

715,403
653,644
653,634
240,492
398,853
12,814
1,474
10
24,607
157
1
0
156
160
36,834
11,043
2,200
35,214'

725,308
653,881
653,871
240,726
398,853
12,814
1,478
10
34,429
166
9
0
157
-490
37,323
11,043
2,200
35,237

715,281
654,525
654,515
240,969
398,959
13,089
1,499
10
22,821
158
3
0
155
308
37,468
11,043
2,200
35,251

721,655
655,767
655,757
241,183
399,595
13,454
1,525
10
27,893
162
4
0
158
-233
38,066
11,043
2,200
35,265

717,606
655,990
655,980
241,402
399,595
13,454
1,529
10
22,286
236
73
0
163
286
38,809
11,043
2,200
35,279

694,590
20,180
20,180
0
334

695,356R
19,541
19,541
0
354

697,197
20,312
20,312
0
337

694,989'
19,563
19,563
0
369

694,728'
20,106
20,106
0
355

694,765'
19,223
19,223
0
338

700,111
20,022
20,022
0
335

698,503
19,345
19,345
0
337

696,235
20,445
20,445
0
333

695,980
20,545
20,545
0
336

17,943
6,213
224
11,192
10,864
327
315
19,956
11,921

17,322
5,599
151
11,280
10,909
372
292
20,112
13,958

18,206
6,206
272
11,467
11,191
276
261
20,639
12,477

17,205
5,611
149
11,157
10,912
245
287
20,190
7,919

17,518
5,644
238
11,331
10,912
419
304
20,304
21,963

17,612
5,974
86
11,246
10,910
337
306
19,997
11,924

16,790
4,843
248
11,455
10,912
543
244
20,194
16,336

16,676
4,745
261
11,392
11,219
173
279
20,451
8,463

18,064
6,084
229
11,481
11,219
262
269
20,588
14,498

19,405
7,540
102
11,494
11,226
268
270
20,755
9,107

SUPPLYING RESERVE FUNDS
1
2
4
6
7
8
9
10
11
12
N
14
15
16
17
18

Reserve Bank credit outstanding
Securities held outright
U.S. Treasury 2
Bills3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans to depository institutions
Primary credit
Secondary credit
Seasonal credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account
Treasury currency outstanding
ABSORBING RESERVE FUNDS

19
20
21
22
23
24
25
26
27
28
29
30
31
32

Currency in circulation
Reverse repurchase agreements 6
Foreign official and international accounts
Dealers
Treasury cash holdings
Deposits with Federal Reserve Banks, other than
reserve balances
U.S. Treasury, general account
Foreign official
Service-related
Required clearing balances
Adjustments to compensate for float
Other
Other liabilities and capital
Reserve balances with Federal Reserve Banks 7 . . . .

End-of-month figures

Wednesday figures

July

Aug.

Sept.

Aug. 13

Aug. 2 0

Aug. 2 7

Sept. 3

Sept. 10

Sept. 17

Sept. 24

721,467
652,913
652,903
239,773
398,853
12,814
1,462
10
29,000
145
11
0
133
-195
39,605
11,043
2,200
35,145

726,172
653,909
653,899
240,754
398,853
12,814
1,478
10
35,000
158
0
0
158
-265
37,371
11,043
2,200
35,237'

732,550
656,126
656,116
241,533
399,595
13,454
1,533
10
37,500
174
21
0
154
-496
39,246
11,043
2,200
35,293

715,472
653,288
653,278
240,142
398,853
12,814
1,469
10
19,000
164
16
0
148
2,583
40,438
11,043
2,200
35,168'

730,576
653,526
653,516
240,376
398,853
12,814
1,472
10
39,500
262
105
0
157
499
36,789
11,043
2,200
35,191'

718,942
653,681
653,671
240,528
398,853
12,814
1,476
10
29,000
161
2
0
159
-458
36,558
11,043
2,200
35,214'

726,556
653,941
653,931
240,785
398,853
12,814
1,479
10
33,250
180
27
0
153
1,995
37,189
11,043
2,200
35,237

716,178
655,602
655,592
241,020
399,595
13,454
1,523
10
22,500
155
0
0
154
134
37,788
11,043
2,200
35,251

722,549
655,953
655,943
241,367
399,595
13,454
1,526
10
29,250
165
2
0
162
-1,048
38,229
11,043
2,200
35,265

720,499
656,003
655,993
241,414
399,595
13,454
1,530
10
26,000
341
172
0
170
-974
39,128
11,043
2,200
35,279

694,073
19,827
19,827
0
364

700,139'
20,190
20,190
0
335

698,144
24,983
24,983
0
341

695,939'
19,138
19,138
0
358

695,686'
20,344
20,344
0
338

697,414'
19,119
19,119
0
335

701,257
18,757
18,757
0
338

698,130
19,719
19,719
0
333

697,013
18,972
18,972
0
335

697,408
18,801
18,801
0
341

18,219
6,356
318
11,288
10,898
390
258
19,674
17,696

16,350
4,589
81
11,455
10,912
543
225
20,251
17,387

19,046
7,224
82
11,515
11,225
290
224
21,164
17,409

17,683
5,720
525
11,157
10,912
245
281
20,043
10,722

18,246
6,533
81
11,331
10,912
419
301
19,884
24,511

17,050
5,441
81
11,246
10,910
337
282
19,912
13,570

16,906
4,525
686
11,455
10,912
543
240
20,080
17,697

16,798
5,039
80
11,392
11,219
173
287
20,347
9,345

19,270
7,247
270
11,481
11,219
262
272
20,225
15,242

18,674
6,837
82
11,494
11,226
268
262
20,648
13,149

SUPPLYING RESERVE FUNDS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Reserve Bank credit outstanding
Securities held outright
U.S. Treasury 2
Bills3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans to depository institutions
Primary credit
Secondary credit
Seasonal credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account
Treasury currency outstanding

19
20
21
22
23
24

Currency in circulation
Reverse repurchase agreements 6
Foreign official and international accounts
Dealers
Treasury cash holdings
Deposits with Federal Reserve Banks, other than
reserve balances
U.S. Treasury, general account
Foreign official
Service-related
Required clearing balances
Adjustments to compensate for float
Other
Other liabilities and capital
Reserve balances with Federal Reserve Banks 7 . . . .

ABSORBING RESERVE FUNDS

25
26
27
28
29
30
31
32

1. Amounts of vault cash held as reserves are shown in table 1.12, line 2.
2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury
securities.
3. Face value of the securities.
4. Compensation that adjusts for the effect of inflation on the original face value of
inflation-indexed securities.




5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal
agency securities.
6. Cash value of agreements, which are fully collateralized by U.S. Treasury securities.
7. Excludes required clearing balances and adjustments to compensate for float.

A6
1.12

DomesticNonfinancialStatistics • December 2003
RESERVES A N D BORROWINGS

Depository Institutions 1

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

1 Reserve balances with Reserve Banks 2
2 Total vault cash 3
3
Applied vault cash4
4
Surplus vault cash 5
Total reserves 6
6
Required reserves
7
Excess reserve balances at Reserve Banks 7
8 Total borrowing at Reserve Banks
9
Primary
10
Secondary
1 1 Seasonal
12
Adjustment

2000

2001

2002

2003

Dec.

Dec.

Dec.

Mar.

Apr.

May

June

July

Aug.

Sept.

7,022
45,246
31,451
13,795
38,473
37,046
1,427
210

9,053
43,918
32,024
11,894
41,077
39,428
1,649
67

9,926
43,368
30,347
13,021
40,274
38,264
2,009
80

111
99

33
34

45
35

9,840
43,088
30,757
12,331
40,597
38,961
1,636
22
14
0
8

10,598
41,991
30,574
11,417
41,172
39,640
1,532
29
8
0
21

11,405
41,636
30,395
11,241
41,801
40,182
1,619
55
3
0
53

11,297
41,961
30,574
11,386
41,872
40,018
1,854
161
87
0
74

12,157
42,657
31,437
11,220
43,594
41,671
1,924
130
21
0
110

14,107
43,034
31,978 r
1 l,056 r
46,084 r
42,32 l r
3,763r
329
168
15
146

12,470
43,079
31,940
11,138
44,410
42,905
1,505
181
23
0
158

Biweekly averages of daily figures for two-week periods ending on dates indicated
2003

1
?,
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 cash5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Primary
Secondary
Seasonal
Adjustment

May 28

June 11

June 25

July 9

July 23

Aug. 6

Aug. 20

Sept. 3'

Sept. 17

Oct. 1

13,116
41,968
31,211
10,758
44,326
42,712
1,614
58
2
0
56

11,050
41,040
29,854
11,186
40,904
38,909
1,994
69
7
0
63

11,437
42,303
30,798
11,505
42,235
40,631
1,604
241
163
0
78

11,453
43,030
31,534
11,497
42,986
40,744
2,242
144
54
0
90

12,644
41,789
30,545
11,244
43,189
41,601
1,588
117
5
1
111

12,099
43,758
32,890
10,869
44,988
42,836
2,152
140
11
0
129

14,940
43,490
31,551r
1 l,939 r
46,491'
40,805'
5,686'
541
363
33
145

14,141
42,060
32,024
10,036
46,165
43,971
2,194
162
5
0
157

11,506
42,327
30,948
11,379
42,454
41,541
913
160
4
0
157

13,122
44,125
32,990
11,135
46,112
44,129
1,983
207
48
0
159

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).

Policy Instruments
1.14

A7

FEDERAL RESERVE BANK INTEREST RATES
Percent per year

Primary credit1
Federal Reserve
Bank

Secondary credit2

On
11/14/03

Seasonal credit
On
11/14/03

On
11/14/03

Boston
New York . . .
Philadelphia .
Cleveland . . .
Richmond . . .
Atlanta

6/25/03
6/25/03
6/26/03
6/26/03
6/26/03
6/26/03

6/25/03
6/25/03
6/26/03
6/26/03
6/26/03
6/26/03

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

6/26/03
6/26/03
6/26/03
6/25/03
6/26/03
6/25/03

6/26/03
6/26/03
6/26/03
6/25/03
6/26/03
6/25/03
Range of rates for primary credit

Effective date

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

2.25

2.25

2.00-2.25
2.00

2.00
2.00

2.00

2.00

In effect Jan. 9, 2003
(beginning of program)
2003—June 25
26
In effect November 14, 2003

....

Effective date

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

Effective date

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

3.25-3.50
3.25
3.00-3.25
3.00
2.50-3.00
2.50
2.00-2.50
2.00
1.50-2.00
1.50
1.25-1.50
1.25

3.25
3.25
3.00
3.00
2.50
2.50
2.00
2.00
1.50
1.50
1.25
1.25

0.75-1.25
0.75

0.75
0.75

0.75

0.75

Range of rates for adjustment credit in recent years4
Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

5.00-5.25
5.00

5.00
5.00

4.75-5.00
4.75
4.50-4.75
4.50

4.75
4.75
4.50
4.50

4.50-4.75
4.75
4.75-5.00
5.00

4.75
4.75
4.75
5.00

2000—Feb.

In effect Dec. 31, 1995.
1996—Jan. 31
1998—Oct. 15
16
Nov. 17
1999—Aug. 24
26
Nov. 16

....

2
4
Mar. 21
23
May 16
19

F.R. Bank
of
N.Y.

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

5.25
5.25
5.50
5.50
5.50
6.00

5.75-6.00
5.50-5.75
5.50
5.00-5.50
5.00
4.50-5.00
4.50
4.00^.50
4.00
3.50-4.00
3.50

5.75
5.50
5.50
5.00
5.00
4.50
4.50
4.00
4.00
3.50
3.50

2001—June 27 . . .
29 . . .
Aug. 21 . . .
23 . . .
Sept. 17 . . .
Oct.

2001—Jan.

Feb.
Mar.
Apr.
2001—May

3
4
5
31
1
20
21
18
20
15
17

1. Available for very short terms as a backup source of liquidity to depository institutions
that are in generally sound financial condition in the judgment of the lending Federal Reserve
Bank.
2. Available in appropriate circumstances to depository institutions that do not qualify for
primary credit.
3. 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




Range (or
level)—All
F.R. Banks

Nov.

18

. . .

2
4
6

...
...
...

8

...

Dec. 11 . . .
13 . . .
2002—Nov.

6 . ..

1 ...

In effect Jan. 8, 2003
(end of program)

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.
4. Was available until January 8, 2003, to help depository institutions meet temporary
needs for funds that could not be met through reasonable alternative sources. For earlier data,
see the following publications of the Board of Governors: Banking and Monetary Statistics,
1914-1941, and 1941-1970\ and the Statistical Digest, 1970-1979, 1980-1989, and
1990-1995. See also the Board's Statistics: Releases and Historical Data web pages
(http://www.federalreserve.gov/releases/H15/data.htm).

A8
1.15

DomesticNonfinancialStatistics • December 2003
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Requirement
Type of deposit

Net transaction accounts2
1 $0 million-$6.6 million 3
2 More than $6.6 million-$45.4 million 4
3 More than $45.4 million 5

12/25/03
12/25/03
12/25/03

4 Nonpersonal time deposits 6

12/27/90

5 Eurocurrency liabilities

7

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. 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 25, 2003, for depository institutions that report
weekly, and with the period beginning January 15, 2004. for institutions that report quarterly,
the exemption was raised from $6.0 million to $6.6 million.




12/27/90
4. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 25, 2003, for depository institutions that report weekly, and with the period
beginning January 15, 2004, for institutions that report quarterly, the amount was increased
from $42.1 million to $45.4 million.
5. The reserve requirement was reduced from 12 percent to 10 percent on April 2, 1992,
for institutions that report weekly, and on April 16, 1992, for institutions that report quarterly.
6. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1.5 years was reduced from 3 percent to 1.5 percent for
the maintenance period that began December 13, 1990, and to zero for the maintenance
period that began December 27, 1990. For institutions that report quarterly, the reserve
requirement on nonpersonal time deposits with an original maturity of less than 1.5 years was
reduced from 3 percent to zero on January 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1.5
years or more has been zero since October 6, 1983.
7. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1.5 years (see note 5).

Policy Instruments
1.17

A9

FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
2003

Type of transaction
and maturity

2000

2001

2002

Feb.

Mar.

Apr.

May

June

Aug.

July

U . S . TREASURY SECURITIES 2

23
24
25

Outright 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

26

Net change in U.S. Treasury securities

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

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

15,503
0
542,736
542,736
10,095

21,421
0
657,931
657,931
0

4,161
0
53.860
53,860
0

1,863
0
47,424
47,424
0

3,543
0
51,834
51,834
0

1,684
0
76.354
76.354
0

1,032
0
60,706
60,706
0

808
0
68.544
68,544
0

981
0
56,098
56,098
0

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

15,663
0
70,336
-72,004
16,802

12,720
0
89,108
-92,075
0

478
0
3,214
-13,313
0

1,318
0
8,334
-8,211
0

1,422
0
8,333
-7,293
0

786
0
7,228
-6,999
0

0
0
7,531
-6,700
0

0
0
6,662
^1,996
0

0
0
4,915
-9,776
0

14,482
0
-52,068
46,177

22,814
0
-45,211
64,519

12,748
0
-73,093
88,276

2,127
0
2,160
11,817

710
0
-8,334
8,211

733
0
-8,333
7,293

1,057
0
-1,513
6,747

0
0
-7,531
6,700

0
0
-6.662
4,996

0
0
-1,561
7,261

5,871
0
-6,801
6,585

6,003
0
-21,063
6,063

5,074
0
-11,588
3,800

769
0
-3,877
1,497

522
0
0
0

0
0
0
0

234
0
-5,463
252

0
0
0
0

0
0
0
0

0
0
2,202
2,515

5,833
0
-3,155
1,894

8,531
0
-4,062
1,423

2,280
0
-4,427
0

0
0
-1,497
0

50
0
0
0

0
0
0
0

0
0
-252
0

0
0
0
0

0
0
0
0

0
0
-5,556
0

43,670
0
28,301

68,513
0
26,897

54,242
0
0

7,534
0
0

4,463
0
0

5,699
0
0

3,761
0
0

1,032
0
0

808
0
0

981
0
0

15,369

41,616

54,242

7,534

4,463

5,699

3,761

1,032

808

981

0
0
51

0
0
120

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

-51

-120

0

0

0

0

0

0

0

0

890,236
987,501

1,497,713
1,490,838

1,143,126
1,153,876

121,896
119,746

95,001
90,151

112,251
106,500

124,741
132,002

90,500
88,990

145,750
148,500

156,250
150,250

4,415,905
4,397,835

4,722,667
4,724,743

4,981,624
4,958,437

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

231,272
252,363

343,748
343,395

388,069
389,469

451,149
452,545

441,555
443,025

456,652
456,447

445,346
443,093

410,913
411,276

-491

5,637

FEDERAL AGENCY OBLIGATIONS

27
28
29

Outright transactions
Gross purchases
Gross sales
Redemptions

30

Net change in federal agency obligations
TEMPORARY TRANSACTIONS

31
32

Repurchase agreements3
Gross purchases
Gross sales

33
34

Matched sale-purchase
Gross purchases
Gross sales

35
36

Reverse repurchase agreements4
Gross purchases
Gross sales

agreements

37

Net change in temporary transactions

-79,195

4,800

-8,653

2

2,200

2,104

-8,731

-6,535

38

Total net change in System Open Market Account . .

-63,877

46,295

45,589

7,537

6,664

7,803

-4,971

-5,504

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. Transactions include the rollover of inflation compensation into new securities.




311

6,617

3. Cash value of agreements, which are collateralized by U.S. government and federal
agency obligations.
4. Cash value of agreements, which are collateralized by U.S. Treasury securities.

A10
1.18

DomesticNonfinancialStatistics • December 2003
FEDERAL RESERVE BANKS

Condition and Federal Reserve Note Statements 1

Millions of dollars

Account
Aug. 27

Sept. 3

Wednesday

End of month

2003

2003

Sept. 10

Sept. 17

Sept. 24

July

Aug.

Sept.

Consolidated condition statement

ASSETS

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Gold certificate account
Special drawing rights certificate account
Coin
Securities, repurchase agreements, and loans
Securities held outright
U.S. Treasury 2
Bills 3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans
Items in process of collection
Bank premises
Other assets
Denominated in foreign currencies 6
All other7

19 Total assets

11,039
2,200
887
682,842
653,681
653,671
240,528
398,853
12,814
1,476
10
29,000
161
7,586
1,590
35,389
17,511
17,878

11,039
2,200
858
687,371
653,941
653,931
240,785
398,853
12,814
1,479
10
33,250
180
12,854
1,589
35,449
17,580
17,869

11,039
2,200
850
678,256
655,602
655,592
241,020
399,595
13,454
1,523
10
22,500
155
8,013
1,590
36,186
17,813
18,373

11,039
2,200
848
685,367
655,953
655,943
241,367
399,595
13,454
1,526
10
29,250
165
7,157
1,591
36,633
17,935
18,697

11,039
2,200
849
682,345
656,003
655,993
241,414
399,595
13,454
1,530
10
26,000
341
6,535
1,595
37,521
18,456
19,065

11,039
2,200
878
682,057
652,913
652,903
239,773
398,853
12,814
1,462
10
29,000
145
6,558
1,586
38,004
17,598
20,406

11,039
2,200
881
689,066
653,909
653,899
240,754
398,853
12,814
1,478
10
35,000
158
5,997
1,590
35,729
17,654
18,075

11,039
2,200
847
693,800
656,126
656,116
241,533
399,595
13,454
1,533
10
37,500
174
9,071
1,597
37,636
18,636
19,000

741,534

751,360

738,134

744,835

742,084

742,321

746,503

756,190

663,418
19,119
31,731
25,927
5,441
81
282
7,355
2,204

667,212
18,757
34,317
28,866
4,525
686
240
10,994
2,195

664,058
19,719
26,161
20,755
5,039
80
287
7,849
2,215

662,927
18,972
34,823
27,034
7,247
270
272
7,889
2,204

663,314
18,801
32,208
25,027
6,837
82
262
7,112
2,245

660,167
19,827
35,972
29,041
6,356
318
258
6,681
2,143

666,113
20,190
33,793
28,898
4,589
81
225
6,155
2,195

664,034
24,983
36,671
29,141
7,224
82
224
9,337
2,227

723,825

733,475

720,003

726,815

723,681

724,789

728,446

737,252

8,748
8,380
580

8,752
8,380
752

8,755
8,380
996

8,755
8,380
885

8,758
8,380
1,265

8,719
8,327
486

8,750
8,380
927

8,746
8,380
1,811

17,708

17,885

18,131

18,021

18,403

17,532

18,057

18,938

949,401
761,587
187,814
2,346

961,027
772,567
188,460
2,201

964,040
777,059
186,981
1,395

959,339
772,230
187,110
586

968,067
775,698
192,369
809

936,251
754,101
182,150
2,390

951,036
765,022
186,013
2,631

982,329
787,003
195,326
3,088

LIABILITIES

20
21
7.7
23
24
25
7.6
27
28

Federal Reserve notes, net of F.R. Bank holdings
Reverse repurchase agreements 8
Deposits
Depository institutions
U.S. Treasury, general account
Foreign official
Other
Deferred availability cash items
Other liabilities and accrued dividends 9

29 Total liabilities
CAPITAL ACCOUNTS

30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total capital
MEMO

.34 Marketable securities held in custody for foreign official
and international accounts 310
35
U.S. Treasury
36
Federal agency
37 Securities lent to dealers

Federal Reserve notes and collateral statement
.38 Federal Reserve notes outstanding
39
Less: Notes held by F.R. Banks not
subject to collateralization
40
Federal Reserve notes to be collateralized
41 Collateral held against Federal Reserve notes
Gold certificate account
42
43
Special drawing rights certificate account
44
U.S. Treasury and agency securities pledged 11
Other eligible assets
45

780,878

781,724

783,777

785,485

787,589

774,672

780,991

789,185

112,697
668,181
668,181
11,039
2,200
654,942
0

109,755
671,969
671,969
11,039
2,200
658,730
0

115,128
668.649
668,649
11,039
2,200
655,411
0

117,643
667,842
667,842
11,039
2,200
654,603
0

119,527
668,062
668,062
11,039
2,200
654,823
0

109,856
664,816
664,816
11,039
2,200
651,577
0

110,234
670,757
670,757
11,039
2,200
657,518
0

119,804
669,381
669,381
11,039
2,200
656,142
0

682,681

687,191

678,102

685,203

682,003

681,913

688,909

693,626

19,124

18,762

19,724

18,976

18,805

19,831

20,198

24,989

663,558

668,429

658,377

666,226

663,198

662,081

668,711

668,637

MEMO

46 Total U.S. Treasury and agency securities"
Less: face value of securities under reverse repurchase
47
agreements12
48 U.S. Treasury and agency securities eligible
to be pledged

1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury
securities.
3. Face value of the securities.
4. Compensation that adjusts for the effect of inflation on the original face value of
inflation-indexed securities.
5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal
agency securities.
6. Valued daily at market exchange rates.




7. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
8. Cash value of agreements, which are fully collateralized by U.S. Treasury securities.
9. Includes exchange-translation account reflecting the daily revaluation at market
exchange rates of foreign exchange commitments.
10. Includes U.S. Treasury STRIPS and other zero coupon bonds at face value.
11. Includes face value of U.S. Treasury and agency securities held outright, compensation
to adjust for the effect of inflation on the original face value of inflation-indexed securities,
and cash value of repurchase agreements.
12. Face value of agreements, which are fully collateralized by U.S. Treasury securities.

Federal Reserve Banks
1.19

FEDERAL RESERVE BANKS

All

Maturity Distribution of Loans and Securities

Millions of dollars

Type of holding and maturity

Wednesday

End of month

2003

2003

Aug. 27

Sept. 3

Sept. 10

Sept. 17

Sept. 24

1 Total loans

161

180

155

165

341

145

158

174

2 Within 15 days
3 16 days to 90 days
4 91 days to 1 year

138
23
0

35
145
0

30
125
0

163
2
0

311
30
0

99
45
0

109
48
0

126
49
0

653,671

653,931

655,592

655,943

655,993

652,903

653,899

656,116

50,191
135,304
160,830
180,033
50,384
76,929

45,481
140,939
162,179
178,017
50,385
76,931

45,911
141,474
161,449
178,018
51,655
77,085

52,664
135,948
160,569
178,019
51,656
77,086

52,428
137,309
159,492
178,020
51,658
77,088

36,979
134,047
172,745
184,345
44,823
79,965

35,599
138,773
172,179
180,033
50,384
76,930

30,538
153,565
158,709
184,556
51,659
77,089

10

10

10

10

10

10

10

10

0
0
10
0
0
0

0
0
10
0
0
0

0
0
10
0
0
0

0
10
0
0
0
0

0
10
0
0
0
0

0
0
10
0
0
0

0
0
10
0
0
0

0
10
0
0
0
0

19 Total repurchase agreements 2

29,000

33,250

22,500

29,250

26,000

29,000

35,000

37,500

20 Within 15 days
21 16 days to 90 days

24,000
5,000

29,250
4,000

18,500
4,000

24,250
5,000

26,000
0

24,000
5,000

26,000
9,000

37,500
0

22 Total reverse repurchase agreements 2

19,119

18,757

19,719

18,972

18,801

19,827

20,190

24,983

23 Within 15 days
24 16 days to 90 days

19,119
0

18,757
0

19,719
0

18,972
0

18,801
0

19,827
0

20,190
0

24,983
0

5 Total U.S. Treasury securities1
6
7
8
9
10
11

Within 15 days
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years

12 Total federal agency securities
13
14
15
16
17
18

Within 15 days
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years

Note. Components may not sum to totals because of rounding.
1. Includes the original face value of inflation-indexed securities and compensation that
adjusts for the effect of inflation on the original face value of such securities.




July

Aug.

Sept.

2. Cash value of agreements classified by remaining maturity of the agreements.

A12
1.20

DomesticNonfinancialStatistics • December 2003
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE'
Billions of dollars, averages of daily figures
2003
Item

1999
Dec.

2000
Dec.

2001
Dec.

2002
Dec.
Feb.

Mar.

Apr.

May

June

July

Aug. r

Sept.

40.99
40.93
39.37
701.18

42.80
42.63
40.94
703.17

43.93
43.80
42.00
703.53

46.28
45.95
42.52
709.22

44.96
44.78
43.46
711.20

Seasonally adjusted

ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2

1
2
3
4

Total reserves 3
Nonborrowed reserves 4
Required reserves
Monetary base 5

41.81
41.49
40.51
593.16

38.54
38.33
37.11
584.77

41.24
41.18
39.60
635.62

40.22
40.14
38.21
681.90

40.82
40.80
38.86
691.31

40.97
40.95
39.34
695.14

40.81
40.78
39.27
698.23

Not seasonally adjusted
5
6
7
8

6

Total reserves
Nonborrowed reserves
Required reserves 7
Monetary base 8

41.89
41.57
40.59
600.72

38.53
38.32
37.10
590.06

41.20
41.13
39.55
639.91

40.13
40.05
38.12
686.23

41.94
41.91
39.97
690.25

40.60
40.57
38.96
693.91

41.16
41.14
39.63
697.83

41.79
41.73
40.17
701.58

41.86
41.70
40.00
703.33

43.58
43.44
41.65
705.80

46.06
45.73
42.30
709.18

44.38
44.20
42.88
709.20

41.65
41.33
40.36
608.02
1.30
.32

38.47
38.26
37.05
596.98
1.43
.21

41.08
41.01
39.43
648.74
1.65
.07

40.27
40.19
38.26
697.15
2.01
.08

41.94
41.91
39.97
701.04
1.97
.03

40.60
40.58
38.96
705.04
1.64
.02

41.17
41.14
39.64
709.10
1.53
.03

41.80
41.75
40.18
712.76
1.62
.06

41.87
41.71
40.02
714.36
1.85
.16

43.59
43.46
41.67
717.021"
1.92
.13

46.08
45.76
42.32
720.49
3.76
.33

44.41
44.23
42.91
720.68
1.51
.18

NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 9

9
10
11
12
13
14

Total reserves 10
Nonborrowed reserves
Required reserves
Monetary base"
Excess reserves 12
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. 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.
6. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).
7. 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).
8. 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.
9. 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.
10. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
11. 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.
12. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

Monetary and Credit Aggregates
1.21

A13

MONEY STOCK MEASURES'
Billions of dollars, averages of daily figures
2003
1999
Dec.

2000
Dec.

2001
Dec.

2002
Dec.
June

July'

Aug.'

Sept.

Seasonally adjusted
Measures2
1 Ml
? M2
3 M3

1,121.4
4,649.9 r
6,535.0 r

1,084.7
4,931.5
7,099.4

1,172.9
5,444.4 r
8,004.3r

1,210.4
5,791.6'
8,522.6r

1,272.2
6,046.9'
8,775.4'

1,278.0
6,097.8
8,905.6

1,285.8
6,140.7
8,930.8

1,287.9
6,118.4
8,908.9

517.7
8.3
352.1
243.4

531.5
8.0
306.9
238.2

581.9
7.8
326.1
257.2

627.3
7.5
297.1
278.5

646.5
7.9
322.5
295.3

646.2
8.2
322.6
301.0

649.2
8.0
322.2
306.3

653.0
7.8
316.9
310.2

3,528.5r
1,885.1

3,846.8
2,167.9

4,271.5 r
2,559.9

4,581.3'
2,730.9

4,774.7'
2,728.5

4,819.8
2,807.8

4,855.0
2,790.1

4,830.5
2,790.5

Commercial banks
10 Savings deposits, including MMDAs
11 Small time deposits 9
12 Large time deposits' 011

1,288.8
634.6
652.2

1,422.9
699.5
718.3

1,734.6
634.2
671.1

2,047.9
591.0
676.6

2,227.6
566.4
687.3

2,280.1
557.4
742.5

2,316.4
549.7
740.1

2,302.3
543.9
738.7

Thrift institutions
13 Savings deposits, including MMDAs
14 Small time deposits 9
15 Large time deposits 10

452.0
319.5
91.9

454.3
344.8
103.0

572.4
339.1
114.9

714.5
302.2
117.3

802.0
288.5
118.0

816.4
285.0
121.4

831.5
281.0
123.1

838.8
278.2
122.8

Money market mutual funds
16 Retail
17 Institution-only

833.6r
634.8

925.4
788.8

991.3 r
1,190.3

925.8 r
1,234.5

890.2'
1,143.8

880.9
1,183.9

876.3
1,164.6

867.4
1,170.5

Repurchase agreements and eurodollars
18 Repurchase agreements 12
12
Eurodollars
19

335.7
170.5

363.5
194.3

375.0
208.6

474.6
227.9

520.2
259.1

495.1
264.9

491.6
270.8

493.6
264.9

MI components
3
4 Currency
Travelers checks 4
5
6 Demand deposits
7 Other checkable deposits 6
Nontransaction
8 In M2
8
9 In M3 only

components

Not seasonally adjusted
Measures2
20 Ml
21 M2
22 M3

1,147.8
4,676.9 r
6,577,6r

1,112.1
4,966.9
7,154.0

1,202.9
5,487.4 r
8,076.1'

1,240.3
5,841.0'
8,600.2'

1,269.4
6,015.9'
8,744.4'

1,274.4
6,063.7
8,846.9

1,279.6
6,119.9
8,880.8

1,275.5
6,092.9
8,830.4

521.7
8.4
371.7
246.0

535.6
8.1
326.7
241.6

585.4
7.9
348.1
261.5

630.6
7.7
317.5
284.5

647.7
7.7
318.8
295.2

648.7
7.8
320.1
297.8

650.4
7.8
321.2
300.2

651.0
7.7
312.7
304.1

3,529. l r
1,900.7

3,854.8
2,187.1

4,284.4r
2,588.7

4,600.7'
2,759.2

4,746.5'
2,728.5

4,789.2
2,783.2

4,840.3
2,760.9

4,817.4
2,737.5

Commercial banks
29 Savings deposits, including MMDAs
Small
time deposits 9
30
1011
31 Large time deposits

1,288.7
635.6
653.6

1,427.5
700.6
718.5

1,742.4
635.1
670.0

2,060.4
591.7
675.0

2,217.5
565.7'
691.8

2,264.2
557.2
742.4

2,307.9
550.1
739.0

2,297.6
544.4
739.8

Thrift institutions
32 Savings deposits, including MMDAs
9
33 Small time deposits
34 Large time deposits 10

451.9
320.0
92.1

455.8
345.4
103.0

575.0
339.6
114.7

718.9
302.5
117.0

798.3
288.1
118.8

810.7
284.9
121.4

828.4
281.2
122.9

837.1
278.4
123.0

Money market mutual funds
35 Retail
36 Institution-only

832.9r
648.6

925.5
806.1

992.3r
1,218.3

927.3'
1,262.3

876.8'
1,131.0

872.2
1,161.6

872.7
1,144.1

859.8
1,133.2

Repurchase agreements and eurodollars
37 Repurchase agreements 12
12
38 Eurodollars

334.7
171.7

364.2
195.2

376.5
209.1

476.4
228.5

529.5
257.4

496.6
261.3

488.1
266.8

479.3
262.3

23
24
25
26

Ml components
Currency 3
Travelers checks 4
Demand deposits5
Other checkable deposits 6

Nontransaction
27 In M27
In
M3 only8
28

components

Footnotes appear on following page.




A14

DomesticNonfinancialStatistics • December 2003

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 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 deposit-




ory 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.
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 Liabilities 1

A. All commercial banks
Billions of dollars
Wednesday figures

Monthly averages
Account

Sept.

2003

2003

2002
Mar.

Apr.

May

June'

July'

Aug.'

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
U.S. government securities
Other securities
4
Loans and leases in bank credit2 . . . .
5
6
Commercial and industrial
Real estate
7
8
Revolving home equity
9
Other
in
Consumer
II
Security3
1?
Other loans and leases
n Interbank loans
14 Cash assets 4
15 Other assets5

5,721. l r
1,642.6
962.7
679.9
4,078.5'
972.8 r
1,937.4
200.8
1,736.7'
582.9
180.9
404.4'
317.2
318.1
501.0

5,992.0'
1,766.1
1,072.2
693.9
4,225.9'
947.7'
2,095.1'
230.5
1,864.6'
586.9
193.6
402.6'
313.4'
323.6
525.0

6,026.5'
1,778.7
1,104.4
674.3
4,247.8'
946.8'
2,111.3'
234.8'
1,876.5'
584.6
190.6
414.5'
304.9'
319.7
528.7

6,133.6'
1,837.4
1,135.2
702.2
4,296.2'
938.5'
2,134.2'
238.4'
1,895.8'
589.9
210.3
423.2'
316.8'
318.3
546.1

6,189.8
1,862.0
1,151.6
710.4
4,327.8
926.6
2,157.1
244.8
1,912.3
595.8
212.2
436.1
320.2
331.5
549.8

6,201.7
1,815.3
1,115.7
699.6
4,386.4
929.7
2,195.0
248.9
1,946.1
596.3
214.8
450.7
321.7
336.4
555.5

6,188.9
1,773.9
1,077.2
696.7
4,415.0
921.8
2,240.0
253.2
1,986.8
597.0
207.0
449.3
327.0
343.7
566.6

6,194.4
1,778.9
1,060.6
718.3
4,415.5
910.6
2,255.4
258.4
1,997.0
602.0
202.2
445.3
308.0
331.0
552.9

6.203.7
1,781.0
1,081.1
699.9
4,422.7
919.8
2,258.8
255.2
2,003.7
599.8
199.2
445.1
307.7
353.8
575.0

6,230.3
1,788.8
1,078.5
710.3
4,441.5
915.7
2,278.1
256.9
2,021.2
601.0
201.5
445.2
300.6
316.2
566.3

6,190.7
1,764.1
1,052.5
711.5
4,426.6
911.5
2,266.0
258.2
2,007.8
605.5
197.5
446.1
302.7
334.0
534.6

6,157.0
1,765.3
1,046.5
718.7
4,391.8
908.0
2,234.9
259.6
1,975.2
603.7
198.6
446.6
308.6
319.8
541.5

16 Total assets6

6,782.0 r

7,077.5 r

7,104.6

7,239.4

7,315.8

7,340.1

7,350.2

7,310.4

7,363.9

7,337.5

7,285.9

7,250.7

4,478.4
582.7
3,895.7
1,044.0
2,851.7
1,325.8
415.9
909.9
92.7
431.2

4.585.6
619.4
3.966.3
1,001.6
2,964.7
1.389.8
397.3
992.6
135.8
430.0'

4,612.6
632.4
3,980.2
985.5
2,994.7
1,396.7
397.1
999.6
139.3
434.7'

4,643.4
634.1
4,009.3
999.2
3,010.2
1,438.2
389.8
1,048.4
146.5
459.6'

4,702.4
639.3
4,063.1
1,003.3
3,059.8
1,478.1
408.5
1,069.6
126.4
469.9

4,748.2
655.3
4,092.9
1,021.2
3,071.6
1,515.1
410.6
1,104.4
143.0
438.7

4,799.7
655.1
4,144.6
1,031.8
3,112.8
1,518.1
416.0
1,102.0
126.8
428.5

4,775.7
634.8
4,140.9
1,041.6
3,099.3
1,481.2
403.2
1,078.1
130.7
439.2

4,816.3
623.7
4,192.6
1,033.2
3,159.4
1,496.4
403.9
1,092.4
124.9
454.6

4,766.2
602.5
4,163.7
1,047.9
3,115.8
1,507.0
395.7
1,111.3
135.6
446.7

4,773.6
642.0
4,131.6
1,037.2
3,094.5
1,483.0
411.8
1,071.2
130.7
426.2

4,766.0
672.8
4,093.2
1,046.8
3,046.4
1,456.5
404.5
1,052.0
113.4
425.5

6,328.1 r

6,541.2r

6,583.2 r

6,687.7 r

6,776.9

6,844.9

6,873.0

6,826.8

6,892.2

6,855.5

6,813.6

6,761.4

453.9'

536.3'

521.4'

551.7'

538.9

495.2

477.1

483.6

471.8

481.9

472.3

489.4

17
18
19
20
21
22
73
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

Not seasonally adjusted

29
30
31
3?
33
34
35
36
37
38
39
40
41
42
43
44
45

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

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

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

57 Total liabilities
58 Residual (assets less liabilities)

7

Footnotes appear on p. A21.




5,717.8'
1.641.4
962.5
678.9
4,076.4'
971.2'
1,939.1'
201.4
1,737.7'
581.9
230.9
351.0
179.4
404.8'
309.6'
314.3
504.6

5,980.8'
1,771.1
1,077.2
693.9
4,209.7'
949.1'
2,086.1'
228.4
1,857.6
584.7
219.6
365.0
189.2
400.7'
319.9'
312.8
524.1

6,021.0'
1,776.5
1,104.3
672.2
4,244.5'
950.6'
2,107.6'
234.5'
1,873.2'
581.8
215.6
366.2
189.8
414.7'
316.0'
318.0
528.1

6,128.2'
1,835.1
1,133.2
702.0
4,293.1'
942.3'
2,138.0'
239.6'
1,898.4'
588.7
221.5
367.2
202.6
421.6'
312.6'
314.7
544.0

6,185.9
1,855.9
1,146.9
709.0
4,330.1
930.7
2,158.3
245.6
1,912.7
592.4
223.2
369.3
210.8
437.9
321.4
322.3
544.3

6,176.1
1,800.1
1,107.5
692.5
4,376.0
930.8
2,193.4
249.0
1,944.4
590.7
219.9
370.8
208.7
452.4
317.1
325.7
553.7

6,168.9
1,766.6
1,073.2
693.4
4,402.2
918.0
2,240.1
253.3
1,986.8
593.2
219.9
373.3
201.7
449.2
321.1
327.1
563.1

6,190.5
1,777.6
1,060.5
717.2
4,412.8
908.9
2,257.4
259.3
1,998.1
600.0
222.8
377.2
200.0
446.5
301.1
327.2
556.9

6,196.6
1,782.5
1,083.0
699.4
4,414.2
915.8
2,259.2
255.6
2,003.5
597.3
223.0
374.3
192.3
449.6
311.4
367.5
577.7

6,219.2
1,789.9
1,081.2
708.8
4,429.2
910.3
2,280.6
257.6
2,023.0
597.8
221.3
376.6
194.2
446.4
300.3
317.9
570.9

6,197.1
1,762.9
1,052.6
710.3
4,434.2
911.1
2,269.9
259.3
2,010.6
604.3
226.5
377.8
201.5
447.4
298.6
326.8
537.9

6,149.4
1,761.2
1,044.6
716.6
4,388.2
907.2
2,236.3
260.5
1,975.8
602.7
224.7
378.0
198.0
444.0
289.1
306.2
541.5

6,770.8 r

7,060.8r

7,108.0

7,223.8 r

7,298.3

7,297.7

7,303.9

7,299.7

7376.6

7,331.9

7,284.1

7,210.2

4,441.7
577.8
3,863.9
1,023.5
2,840.4
1,323.5
409.1
914.4
95.1'
433.5

4,592.8
611.0
3,981.8
1,004.3
2,977.4
1,386.2
400.7
985.5
133.9
426.6'

4,637.7
638.3
3,999.4
989.9
3,009.5
1,400.8
401.2
999.6
130.2
423.1'

4,636.4
623.9
4,012.5
1,002.8
3,009.6
1,443.9
392.2
1,051.8
146.0
458.8'

4,691.5
633.9
4,057.6
1,001.4
3,056.2
1,477.2
406.7
1,070.5
123.5
466.8

4,718.8
646.7
4,072.1
1,010.1
3,062.0
1,508.0
407.3
1,100.8
133.6
429.3

4,749.8
638.8
4,111.0
1,015.6
3,095.4
1,498.1
411.5
1,086.6
125.1
426.8

4,739.4
629.4
4,110.0
1,022.5
3,087.5
1,479.4
396.4
1,083.0
133.0
441.6

4,805.5
636.6
4,168.9
1,014.4
3,154.5
1,484.9
398.9
1,086.0
125.1
454.9

4,751.0
605.0
4,145.9
1,028.5
3,117.4
1,489.9
386.2
1,103.7
135.5
446.7

4,735.5
636.3
4,099.1
1,016.0
3,083.2
1,486.3
405.5
1,080.9
131.1
426.5

4,690.3
646.7
4,043.6
1,027.3
3,016.3
1,464.6
398.5
1,066.1
120.0
432.0

6,293.8 r

6,539.5r

6,591.8r

6,685.1 r

6,759.0

6,789.8

6,799.7

6,793.4

6,870.5

6,823.0

6,779.4

6,706.9

477.0'

521.3'

516.2'

538.7'

539.3

507.9

504.2

506.4

506.1

508.9

504.6

503.3

A16
1.26

Domestic Financial Statistics • December 2003
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
Account

2002
Sept.

Wednesday figures

2003
Mar.

Apr.

May

June'

2003
July'

Aug.'

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Seasonally adjusted

1
2
3
4
5
6
7
8
y
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 assets 5

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

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

27 Total liabilities
28 Residual (assets less liabilities)7

5,099.0 r
1.392.7
873.1'
519.6
3.706.3r
787.8 r
1,918.4'
200.8
l,717.7 r
582.9
85.7
331.4 r
296.0
271.5
474.2

5,328.5'
1,482.3
949.7
532.6
3,846.2'
776.0'
2,075.2'
230.5
1,844.7'
586.9
72.2
335.8'
286.2'
279.7
495.0

5,371.5'
1,501.4
980.2
521.1
3,870.1'
774.6'
2,092.3'
234.8'
1,857.5'
584.6
72.4
346.2'
282.5'
270.0
496.2

5,464.0'
1,548.8
1,007.8
541.0
3,915.2'
768.1'
2,114.9'
238.4'
1,876.5'
589.9
91.4
350.8'
292.3'
267.3
509.5

5,517.5
1,573.6
1,027.4
546.2
3,943.9
763.3
2,137.6
244.8
1,892.9
595.8
90.3
356.8
289.5
277.1
513.0

5,551.8
1,547.6
1,001.8
545.8
4,004.2
767.1
2,175.6
248.9
1,926.7
596.3
95.9
369.3
288.5
282.4
522.3

5,558.3
1,506.4
970.6
535.7
4,052.0
765.7
2,220.9
253.2
1,967.8
597.0
95.4
373.0
294.6
289.4
530.3

5,564.5
1,505.5
953.2
552.3
4,059.0
759.4
2,236.5
258.4
1,978.1
602.0
88.9
372.2
277.4
277.9
522.9

5,574.2
1,508.7
974.0
534.7
4,065.5
765.6
2,239.9
255.2
1,984.8
599.8
88.6
371.6
274.2
298.3
544.5

5,592.1
1,515.3
969.1
546.2
4,076.8
762.5
2,259.2
256.9
2,002.2
601.0
83.4
370.8
267.4
262.8
536.5

5,563.3
1,496.0
946.2
549.8
4,067.2
758.9
2,247.1
258.2
1,989.0
605.5
84.1
371.6
273.3
277.4
508.6

5,531.1
1,494.1
939.7
554.3
4,037.0
757.7
2,216.1
259.6
1,956.4
603.7
85.7
373.9
278.3
269.9
511.2

6,065.7 r

6,313.4 r

6,345.4

6,458.0

6,522.2

6,570.4

6,597.0

6,567.2

6,615.3

6,583.3

6,546.9

6,514.8

3,986.1
572.6
3,413.4
568.1
2,845.3
1,098.7
393.3
705.4
177.4
339.5r

4,137.2
607.9
3,529.4
583.6
2,945.8
1,096.7
363.6
733.1
219.6
335.3'

4,178.0
621.2
3,556.8
582.2
2,974.5
1,098.9
369.7
729.2
212.2
344.2'

4,210.0
623.3
3,586.7
595.7
2,991.0
1,133.1
358.5
774.6
224.3
352.8'

4,259.8
627.9
3,631.9
590.4
3,041.5
1,162.3
373.8
788.5
208.3
356.4

4,294.8
643.9
3,650.9
586.2
3,064.7
1,218.0
373.9
844.2
229.0
329.8

4,344.5
643.3
3,701.2
600.2
3,101.0
1,224.4
382.2
842.3
230.3
312.4

4,324.7
623.9
3,700.8
604.9
3,095.9
1,191.0
369.5
821.4
230.2
328.7

4,367.5
612.4
3,755.2
604.9
3,150.2
1,204.5
368.6
835.9
225.6
339.2

4,311.2
591.1
3,720.1
607.4
3,112.8
1,213.2
366.2
847.0
235.6
332.3

4,323.9
631.3
3,692.6
600.3
3,092.3
1,191.2
376.4
814.8
224.9
319.7

4,312.1
662.4
3,649.7
607.0
3.042.7
1,175.3
372.6
802.7
213.5
319.0

5,601.7 r

5,788.7r

5,833.2 r

5,920.2 r

5,986.9

6,071.7

6,111.7

6,074.6

6,136.7

6,092.3

6,059.6

6,020.0

464.0 r

524.7'

512.2'

537.8'

535.4

498.8

485.3

492.6

478.6

491.0

487.3

494.8

Not seasonally adjusted
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

5,099.3 r
1,391.5
873.0
518.6
3,707.7r
786.3'
1,920.0'
201.4
1,718.6'
581.9
230.9
351.0
87.1
332.5'
288.4
268.0
477.8

5,319.1'
1,487.3
954.7
532.6
3,831.8'
775.9'
2,066.2'
228.4
1,837.8'
584.7
219.6
365.0
71.9
333.1'
292.6'
270.1
493.4

5,366.2'
1,499.2
980.1
519.1
3,867.0'
779.3'
2.088.6'
234.5'
1,854.1'
581.8
215.6
366.2
71.3
345.9'
293.6'
270.4
495.8

5,463.4'
1,546.6
1,005.8
540.8
3,916.8'
773.7'
2,118.7'
239.6'
1,879.1'
588.7
221.5
367.2
86.0
349.7'
288.0'
265.3
507.3

5,517.1
1,567.5
1,022.7
544.8
3,949.6
767.9
2,138.9
245.6
1,893.3
592.4
223.2
369.3
91.4
359.0
290.8
270.5
509.1

5,533.6
1,532.4
993.7
538.7
4,001.3
769.2
2,174.0
249.0
1,925.0
590.7
219.9
370.8
94.6
372.7
284.0
274.7
521.6

5,544.8
1,499.1
966.7
532.4
4,045.7
763.1
2,221.0
253.3
1,967.7
593.2
219.9
373.3
94.2
374.2
288.7
275.0
527.3

5,564.7
1,504.3
953.1
551.2
4,060.4
757.8
2,238.5
259.3
1,979.3
600.0
222.8
377.2
90.1
374.0
270.5
274.5
527.0

5,576.6
1,510.1
976.0
534.2
4,066.5
762.8
2,240.3
255.6
1,984.6
597.3
223.0
374.3
89.5
376.5
277.8
313.8
547.1

5,589.3
1.516.4
971.7
544.7
4,072.9
758.1
2,261.6
257.6
2,004.0
597.8
221.3
376.6
82.6
372.7
267.1
266.1
540.9

5,571.0
1,494.9
946.3
548.6
4,076.1
758.5
2,251.0
259.3
1,991.7
604.3
226.5
377.8
88.7
373.6
269.2
271.3
511.9

5,525.4
1,490.0
937.8
552.2
4,035.4
756.5
2,217.5
260.5
1,957.0
602.7
224.7
378.0
86.5
372.2
258.7
255.7
511.4

6,058.4 r

6,299.0r

6,351.3

6,448.7P

6,512.3

6,539.4

6,560.0

6,561.1

6,639.2

6,587.5

6,547.4

6,475.7

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

3,967.6
567.5
3,400.1
565.7
2,834.4
1,096.4
386.5
709.9
178.2
340.9'

4,140.3
599.8
3,540.5
582.1
2,958.4
1,093.0
367.0
726.0
215.5
330.4'

4,197.1
627.7
3,569.4
580.4
2,989.1
1,103.1
373.8
729.3
203.5
332.8'

4,197.6
613.5
3,584.1
593.9
2,990.2
1,138.9
360.8
778.0
223.5
351.7'

4,250.7
622.9
3,627.9
589.9
3,037.9
1,161.4
372.0
789.4
207.3
354.9

4,275.1
635.3
3.639.8
584.6
3,055.2
1,211.0
370.5
840.5
222.9
323.1

4,310.0
627.3
3,682.7
598.8
3,084.0
1,204.5
377.6
826.8
230.0
311.9

4,304.9
618.3
3,686.6
602.3
3,084.2
1,189.1
362.8
826.3
231.3
330.0

4,375.0
625.3
3,749.7
604.0
3,145.6
1,193.0
363.6
829.5
226.0
339.7

4,315.4
593.8
3,721.6
607.2
3,114.5
1,196.1
356.8
839.3
235.4
332.2

4,305.1
625.6
3,679.4
598.4
3,081.1
1,194.5
370.1
824.4
224.5
319.3

4,250.3
635.9
3,614.4
601.7
3,012.7
1,183.4
366.7
816.8
216.7
322.6

57 Total liabilities

5,583.1 r

5,779.2 r

5,836.5r

5,911.7r

5,974.3

6,032.1

6,056.5

6,055.3

6,133.7

6,079.2

6,043.4

5,973.0

519.8'

514.7'

537.0'

538.0

507.3

503.6

505.8

505.5

508.3

504.0

502.7

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

46 Total assets 6
Liabilities

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




7

475.3'

Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A17

Assets and Liabilities 1 —Continued

C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures

Monthly averages
Account

2002
Sept.r

2003

2003
Mar.r

Apr.'

May'

June'

July'

Aug.'

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
?
U.S. government securities
Trading account
4
Investment account
Other securities
6
Trading account
7
Investment account
8
9
State and local government . .
Other
in
Loans and leases in bank credit2 . . . .
11
Commercial and industrial
17
Bankers acceptances
13
Other
14
Real estate
15
Revolving home equity
16
Other
17
Consumer
18
Security3
19
Federal funds sold to and
20
repurchase agreements
with broker-dealers
Other
71
State and local government
22
Agricultural
23
Federal funds sold to and
24
repurchase agreements with
others
All other loans
25
Lease-financing receivables
26
27 Interbank loans
Federal funds sold to and
28
repurchase agreements with
commercial banks
Other
29
30 Cash assets4
5
31 Other assets
32 Total assets6
33
34
35
36
37
38
39
40
41
42

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

43 Total liabilities
7
44 Residual (assets less liabilities)

Footnotes appear on p. A21.




2,800.6
745.5
432.7
42.4
390.3
312.8
171.3
141.5
28.4
113.1
2,055.1
496.8
.0
496.8
929.5
127.6
801.9
319.5
78.6

2,930.1
803.7
477.1
41.8
435.3
326.6
171.6
155.0
30.1
124.9
2,126.3
478.2
.0
478.2
1,038.3
147.8
890.5
314.2
64.1

2,950.2
810.6
493.8
40.7
453.1
316.8
161.5
155.3
30.9
124.4
2,139.6
476.0
.0
476.0
1,044.0
150.4
893.6
312.8
64.3

3,025.3
857.1
520.5
43.6
476.9
336.6
183.4
153.2
31.3
121.9
2,168.2
468.1
.0
468.1
1,058.8
152.9
906.0
313.0
82.6

3,054.9
880.8
536.7
38.8
497.9
344.0
187.9
156.1
32.2
123.9
2,174.2
461.5
.0
461.5
1,066.5
156.4
910.1
314.6
80.9

3,062.1
845.7
504.4
38.5
465.9
341.3
172.6
168.8
32.3
136.5
2,216.4
463.9
.0
463.9
1,090.5
160.1
930.4
312.1
86.6

3,049.8
801.2
469.4
34.7
434.7
331.8
162.3
169.6
31.4
138.2
2,248.6
458.6
.0
458.6
1,123.8
163.7
960.1
313.2
86.0

3,057.4
804.7
456.9
38.1
418.8
347.8
178.3
169.5
31.5
138.1
2,252.8
450.4
.0
450.4
1,139.5
168.1
971.3
316.5
79.6

3,064.2
805.3
473.7
43.6
430.1
331.6
163.3
168.3
31.2
137.1
2,258.9
457.6
n.a.
457.6
1,141.4
165.4
976.0
314.6
79.3

3,076.6
809.4
467.5
44.7
422.8
341.9
173.5
168.4
31.4
137.1
2,267.2
453.3
n.a.
453.3
1,157.0
166.9
990.1
316.6
74.3

3,055.5
797.3
451.5
39.1
412.4
345.8
176.7
169.1
31.4
137.7
2,258.2
449.8
n.a.
449.8
1,148.9
167.8
981.0
318.3
74.9

3,031.5
796.5
446.5
29.8
416.7
350.0
180.7
169.3
31.6
137.6
2,235.0
448.8
n.a.
448.8
1,123.1
169.4
953.8
318.2
76.4

68.6
9.9
13.1
8.3

52.6
11.4
12.5
7.9

52.4
11.8
12.4
7.7

63.0
19.5
12.4
7.5

63.5
17.4
12.7
7.4

68.7
17.9
13.0
7.3

66.8
19.2
13.3
7.4

62.1
17.6
13.4
7.5

61.7
17.6
13.3
7.5

56.7
17.7
13.3
7.5

58.7
16.2
13.3
7.5

58.4
18.0
13.5
7.4

20.5
68.9
120.0
197.4

23.6
77.1
110.5
171.9

24.7
88.2
109.4
171.2

26.5
89.5
109.8
171.1

28.0
91.8
110.7
165.2

25.9
107.2
109.9
168.9

24.3
112.6
109.4
178.5

26.6
110.1
109.3
164.4

25.1
110.6
109.5
160.3

24.7
111.0
109.5
159.7

26.1
110.1
109.4
159.8

28.5
109.9
109.2
163.1

101.8
95.6
148.6
329.2

100.4
71.5
148.4
347.6

99.2
72.0
135.9
347.3

100.8
70.2
132.9
356.6

97.8
67.4
140.4
359.3

97.8
71.1
142.1
364.2

99.0
79.5
146.8
367.6

95.6
68.8
139.4
358.3

94.2
66.1
157.5
376.0

90.6
69.1
130.7
375.6

94.9
64.9
139.0
345.9

97.4
65.7
131.0
347.2

3,431.9

3,553.0

3,560.5

3,641.6

3,675.6

3,693.7

3,698.6

3,675.7

3,713.8

3,698.9

3,656.4

3,628.6

1,932.1
274.5
1,657.6
267.8
1,389.8
744.8
269.4
475.4
168.8
273.2

2,016.6
291.2
1,725.5
269.1
1,456.3
699.8
208.1
491.7
208.9
255.6

2,041.2
296.4
1,744.8
267.2
1,477.5
697.5
212.4
485.2
199.3
264.7

2,047.9
297.5
1,750.4
279.2
1,471.3
723.0
203.6
519.4
211.9
272.7

2,077.3
300.4
1,776.9
271.1
1,505.8
746.8
216.7
530.1
196.3
277.0

2,095.0
307.4
1,787.7
269.0
1,518.7
794.4
213.9
580.5
217.2
249.2

2,129.4
304.3
1,825.1
283.3
1,541.9
786.2
213.4
572.8
218.3
231.7

2,114.8
291.0
1,823.8
286.4
1,537.4
751.1
204.7
546.4
216.2
248.7

2,144.3
284.6
1,859.7
288.1
1,571.6
772.8
212.9
559.9
211.9
257.5

2,107.5
273.1
1,834.4
288.0
1,546.4
773.4
210.3
563.1
221.5
252.4

2,113.7
297.3
1,816.4
281.9
1,534.5
749.1
208.0
541.1
209.7
240.7

2,107.8
312.9
1,794.9
289.0
1,505.8
728.5
201.0
527.5
200.5
239.7

3,118.9

3,180.9

3,202.7

3,255.6

3,297.4

3,355.8

3,365.6

3,330.7

3,386.4

3,354.8

3,313.2

3,276.5

313.0

372.0

357.8

386.1

378.3

337.9

333.0

344.9

327.4

344.0

343.2

352.1

A18
1.26

DomesticNonfinancialStatistics • December 2003
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

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

2002
Sept.'

Wednesday figures

2003
Mar.'

Apr.'

May'

June'

2003
July'

Aug.'

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
Trading account
48
Investment account
49
50
Mortgage-backed securities .
Other
51
One year or less
52
One to five years
53
More than five years . . . .
54
Other securities
55
Trading account
56
Investment account
57
State and local government .
58
Other
59
Loans and leases in bank credit2 . . .
60
Commercial and industrial
61
Bankers acceptances
62
Other
63
64
Real estate
Revolving home equity
65
Other
66
67
Commercial
Consumer
68
Credit cards and related plans .
69
Other
70
71
Security 3
72
Federal funds sold to and
repurchase agreements
with broker-dealers
Other
73
State and local government
74
Agricultural
75
Federal funds sold to and
76
repurchase agreements
with others
All other loans
77
78
Lease-financing receivables
79 Interbank loans
Federal funds sold to and
80
repurchase agreements
with commercial banks
81
Other
82 Cash assets 4
5
83 Other assets
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 Totalliabilities
96 Residual (assets less liabilities)7
Footnotes appear on p. A21.




2,798.5
744.2
432.5
42.4
390.1
310.2
79.8
20.0
46.8
13.0
311.7
170.7
141.0
28.4
112.7
2,054.3
497.0
.0
497.0
930.5
128.0
483.4
319.1
316.5
118.6
197.9
80.0

2,923.9
806.1
479.4
42.1
437.3
334.8
102.5
24.5
57.6
20.4
326.7
171.7
155.0
30.1
124.9
2,117.9
478.2
.0
478.2
1,031.5
146.2
561.3
323.9
314.8
105.9
208.9
63.5

2,946.7
807.0
492.2
40.6
451.6
354.4
97.2
24.7
55.5
17.0
314.7
160.5
154.3
30.7
123.6
2,139.7
478.6
.0
478.6
1,042.2
150.4
570.0
321.8
313.4
103.6
209.8
62.9

3,026.3
855.6
519.3
43.5
475.8
380.3
95.5
23.3
55.4
16.7
336.3
183.2
153.1
31.3
121.8
2,170.7
471.1
.0
471.1
1,063.2
154.0
588.5
320.7
313.9
103.9
210.0
77.3

3,056.8
875.1
532.5
38.5
493.9
389.5
104.4
24.4
57.6
22.4
342.6
187.2
155.4
32.1
123.4
2,181.8
463.8
.0
463.8
1,069.0
157.4
591.7
319.9
314.8
104.9
209.9
82.1

3,049.0
832.4
498.1
38.0
460.1
364.2
95.9
24.2
51.5
20.2
334.3
169.0
165.3
31.6
133.7
2,216.7
465.1
.0
465.1
1,090.6
160.6
613.2
316.8
310.2
100.0
210.3
85.4

3,039.5
795.7
467.2
34.6
432.6
335.5
97.1
24.5
52.8
19.8
328.5
160.6
167.9
31.1
136.8
2,243.7
457.3
.0
457.3
1,124.7
164.2
643.5
316.9
310.6
99.7
210.9
84.8

3,055.6
803.3
456.6
38.1
418.6
320.8
97.7
24.1
53.1
20.5
346.7
177.7
169.0
31.4
137.6
2,252.2
450.6
.0
450.6
1,140.8
168.7
654.7
317.5
312.8
99.2
213.6
81.0

3,067.3
807.7
476.6
43.9
432.7
334.2
98.5
24.6
54.4
19.6
331.1
163.1
168.0
31.1
136.9
2,259.6
456.8
n.a.
456.8
1,142.8
166.2
660.1
316.5
311.8
100.1
211.7
79.9

3,073.5
810.2
469.9
44.9
425.0
327.7
97.3
25.0
52.4
19.9
340.3
172.7
167.7
31.2
136.4
2,263.2
451.7
n.a.
451.7
1,160.0
167.5
675.5
317.0
312.8
99.5
213.3
73.2

3,059.5
795.8
451.1
39.1
412.0
316.9
95.2
24.0
52.1
19.0
344.6
176.1
168.5
31.3
137.2
2,263.8
451.1
n.a.
451.1
1,151.7
168.5
665.5
317.7
314.7
100.8
213.9
79.5

3,020.8
790.9
443.0
29.6
413.4
314.8
98.6
23.6
53.3
21.7
347.8
179.6
168.2
31.4
136.8
2,229.9
448.7
n.a.
448.7
1,122.4
169.6
634.6
318.1
314.4
100.4
214.0
77.8

69.9
10.1
13.1
8.3

52.2
11.3
12.5
7.8

51.4
11.6
12.4
7.7

59.0
18.3
12.4
7.6

64.5
17.6
12.7
7.5

67.8
17.6
13.0
7.4

65.9
18.9
13.3
7.5

63.1
17.9
13.4
7.4

62.2
17.7
13.3
7.5

55.8
17.4
13.3
7.5

62.3
17.2
13.3
7.4

59.5
18.3
13.5
7.4

20.5
70.0
118.5
191.5

23.6
74.9
111.2
171.9

24.7
88.0
109.8
174.5

26.5
88.9
109.8
171.8

28.0
93.6
110.3
169.4

25.9
109.7
109.4
169.0

24.3
112.9
108.4
173.4

26.6
111.8
107.8
159.0

25.1
114.2
108.3
158.4

24.7
112.1
107.9
151.6

26.1
112.2
107.8
157.3

28.5
109.8
107.5
155.4

99.0
92.5
145.5
332.8

100.4
71.5
143.4
346.0

101.0
73.4
138.6
346.8

101.3
70.5
132.0
354.4

100.3
69.1
136.0
355.3

97.9
71.1
136.7
363.6

96.3
77.1
137.1
364.6

92.4
66.5
136.5
362.3

93.1
65.3
163.5
378.6

86.0
65.6
129.9
380.1

93.4
63.9
136.0
349.2

92.8
62.6
122.7
347.3

3,424.4

3,540.0

3,562.6

3,640.1

3,673.2

3,674.8

3,670.3

3,669.4

3,723.3

3,690.8

3,657.8

3,602.2

1,924.5
270.1
1,654.4
265.4
1,388.9
742.5
262.6
479.9
169.6
274.6

2,014.7
286.8
1,727.9
267.7
1,460.2
696.1
211.5
484.6
204.8
250.7

2,048.6
302.5
1,746.1
265.4
1,480.7
701.7
216.5
485.2
190.7
253.3

2,043.6
293.2
1,750.4
277.3
1,473.1
728.8
205.9
522.8
211.0
271.7

2,077.7
297.6
1,780.2
270.7
1,509.5
745.9
214.8
531.0
195.2
275.5

2,089.1
301.4
1,787.6
267.4
1,520.3
787.3
210.5
576.8
211.1
242.4

2,113.0
292.1
1,820.9
281.8
1,539.1
766.2
208.9
557.4
218.0
231.2

2,106.3
286.2
1,820.1
283.8
1,536.3
749.3
197.9
551.4
217.3
250.0

2,152.6
288.7
1,863.9
287.2
1,576.6
761.4
207.9
553.5
212.2
258.0

2,111.1
270.0
1,841.1
287.8
1,553.3
756.3
200.8
555.5
221.3
252.4

2,107.8
293.9
1,813.8
279.9
1,533.9
752.4
201.6
550.8
209.3
240.4

2,073.0
296.9
1,776.2
283.7
1,492.5
736.6
195.0
541.5
203.7
243.3

3,111.1

3,166.4

3,194.3

3,255.1

3,294.4

3,330.0

3,328.4

3,322.8

3,384.1

3,341.2

3,309.9

3,256.6

313.2

373.6

368.3

385.0

378.8

344.9

341.8

346.7

339.2

349.6

347.9

345.6

Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A19

Assets and Liabilities 1 —Continued

D. Small domestically chartered commercial banks
Billions of dollars
Monthly averages
Account

2002
Sept.r

Wednesday figures
2003

2003
Mar.'

Apr.'

May'

June'

July'

Aug.'

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

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
Security3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5

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

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

27 Total liabilities
28 Residual (assets less liabilities)7

2,298.4
647.2
440.4
206.8
1,651.2
291.0
989.0
73.2
915.8
263.4
7.2
100.6
98.6
122.9
145.0

2,398.4
678.5
472.6
206.0
1,719.9
297.8
1,036.9
82.6
954.3
272.7
8.1
104.3
114.3
131.4
147.4

2,421.3
690.7
486.4
204.3
1,730.5
298.5
1,048.2
84.3
963.9
271.8
8.2
103.8
111.3
134.1
149.0

2,438.7
691.7
487.3
204.4
1,747.0
300.0
1,056.0
85.5
970.5
276.9
8.9
105.1
121.2
134.3
152.9

2,462.6
692.8
490.7
202.2
1,769.7
301.9
1,071.1
88.3
982.8
281.2
9.4
106.1
124.3
136.7
153.8

2,489.7
701.9
497.4
204.4
1,787.9
303.2
1,085.1
88.9
996.2
284.2
9.3
106.1
119.6
140.3
158.1

2,508.5
705.2
501.2
203.9
1,803.3
307.1
1,097.1
89.4
1,007.7
283.8
9.4
106.0
116.0
142.6
162.7

2,507.1
700.8
496.3
204.5
1,806.2
309.0
1,097.1
90.3
1,006.8
285.5
9.2
105.4
113.0
138.4
164.7

2,510.0
703.4
500.3
203.1
1,806.6
307.9
1,098.5
89.8
1,008.7
285.2
9.3
105.6
113.9
140.8
168.5

2,515.5
705.9
501.6
204.4
1,809.6
309.1
1,102.2
90.1
1,012.1
284.4
9.0
104.8
107.7
132.1
160.8

2,507.8
698.7
494.7
204.0
1,809.1
309.2
1,098.3
90.4
1,007.9
287.2
9.3
105.2
113.5
138.4
162.7

2,499.6
697.6
493.2
204.4
1,802.0
308.8
1,093.0
90.3
1,002.7
285.5
9.3
105.4
115.2
138.9
164.1

2,633.9

2,760.5

2,784.9

2,816.4

2,846.6

2,876.7

2,898.4

2,891.6

2,901.5

2,884.5

2,890.6

2,886.2

2,053.9
298.1
1,755.8
300.3
1,455.5
353.9
123.9
230.0
8.6
66.3

2,120.6
316.7
1,803.9
314.4
1,489.5
396.9
155.5
241.4
10.7
79.6

2,136.8
324.8
1,812.0
315.0
1,497.0
401.4
157.3
244.1
12.8
79.5

2,162.1
325.8
1,836.3
316.6
1,519.7
410.1
154.9
255.2
12.4
80.0

2,182.6
327.6
1,855.0
319.3
1,535.7
415.5
157.2
258.4
12.0
79.4

2,199.8
336.5
1,863.2
317.2
1,546.0
423.7
160.0
263.7
11.8
80.6

2,215.1
339.0
1,876.1
316.9
1,559.1
438.3
168.8
269.5
12.0
80.7

2,209.9
332.9
1,877.0
318.5
1,558.5
439.9
164.9
275.0
14.1
80.0

2,223.2
327.8
1,895.4
316.8
1,578.6
431.7
155.7
276.0
13.7
81.7

2,203.7
318.0
1,885.7
319.4
1,566.3
439.8
156.0
283.8
14.1
79.8

2,210.2
334.0
1,876.2
318.4
1,557.8
442.1
168.4
273.7
15.2
78.9

2,204.4
349.5
1,854.9
318.0
1,536.9
446.9
171.6
275.2
13.0
79.3

2,482.8

2,607.8

2,630.5

2,664.7

2,689.5

2,715.8

2,746.1

2,743.9

2,750.3

2,737.4

2,746.4

2,743.5

151.1

152.7

154.4

151.7

157.1

160.9

152.3

147.7

151.2

147.0

144.1

142.7

Not seasonally adjusted

29
30
31
32
33
34
35
36
37
38
39
40
41
42
4.3
44
45

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

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

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

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




2,300.8
647.3
440.5
206.8
1,653.4
289.3
989.5
73.4
916.1
265.4
112.3
153.1
7.1
102.1
96.9
122.5
145.0

2,395.2
681.2
475.3
206.0
1,713.9
297.7
1,034.8
82.3
952.5
269.9
113.7
156.2
8.4
103.2
120.7
126.7
147.4

2,419.5
692.2
487.9
204.3
1,727.3
300.7
1,046.4
84.1
962.3
268.4
112.1
156.3
8.4
103.3
119.1
131.8
149.0

2,437.1
690.9
486.5
204.4
1,746.2
302.6
1,055.5
85.5
969.9
274.8
117.7
157.2
8.7
104.6
116.2
133.2
152.9

2,460.3
692.4
490.2
202.2
1,767.9
304.1
1,070.0
88.3
981.7
277.7
118.3
159.4
9.3
106.8
121.4
134.4
153.8

2,484.6
700.0
495.6
204.4
1,784.6
304.1
1,083.4
88.4
995.0
280.5
120.0
160.5
9.2
107.4
115.0
138.0
158.1

2,505.3
703.4
499.5
203.9
1,801.9
305.8
1,096.3
89.1
1,007.3
282.6
120.3
162.4
9.4
107.8
115.3
137.9
162.7

2,509.2
701.0
496.4
204.5
1,808.2
307.3
1,097.7
90.6
1,007.1
287.2
123.6
163.6
9.1
106.9
111.6
137.9
164.7

2,509.3
702.5
499.4
203.1
1,806.9
306.1
1,097.5
89.4
1,008.1
285.5
122.9
162.7
9.7
108.1
119.4
150.2
168.5

2,515.8
706.2
501.8
204.4
1,809.7
306.4
1,101.6
90.1
1,011.5
285.1
121.8
163.3
9.4
107.2
115.5
136.2
160.8

2,511.5
699.1
495.2
204.0
1,812.3
307.5
1,099.3
90.8
1,008.5
289.6
125.7
163.9
9.2
106.8
111.9
135.3
162.7

2,504.6
699.1
494.8
204.4
1,805.5
307.7
1,095.1
90.9
1,004.2
288.3
124.3
164.0
8.7
105.7
103.3
133.0
164.1

2,634.0

2,759.0

2,788.7

2,808.7

2,839.1

2,864.6

2,889.8

2,891.7

2,915.9

2,896.7

2,889.6

2,873.5

2,043.1
297.4
1,745.7
300.3
1,445.4
353.9
123.9
230.0
8.6
66.3

2,125.6
313.1
1,812.6
314.4
1,498.1
396.9
155.5
241.4
10.7
79.6

2,148.5
325.1
1,823.4
315.0
1,508.4
401.4
157.3
244.1
12.8
79.5

2,154.0
320.3
1,833.7
316.6
1,517.1
410.1
154.9
255.2
12.4
80.0

2,173.0
325.3
1,847.7
319.3
1,528.4
415.5
157.2
258.4
12.0
79.4

2,186.1
333.9
1,852.2
317.2
1,535.0
423.7
160.0
263.7
11.8
80.6

2,197.0
335.2
1,861.8
316.9
1,544.9
438.3
168.8
269.5
12.0
80.7

2,198.6
332.1
1,866.5
318.5
1,548.0
439.9
164.9
275.0
14.1
80.0

2,222.4
336.6
1,885.8
316.8
1,569.0
431.7
155.7
276.0
13.7
81.7

2,204.3
323.7
1,880.5
319.4
1,561.2
439.8
156.0
283.8
14.1
79.8

2,197.3
331.7
1,865.6
318.4
1,547.2
442.1
168.4
273.7
15.2
78.9

2,177.2
339.0
1,838.2
318.0
1,520.2
446.9
171.6
275.2
13.0
79.3

2,471.9

2,612.8

2,642.2

2,656.6

2,679.9

2,702.2

2,728.0

2,732.6

2,749.6

2,738.0

2,733.6

2,716.4

162.1

146.2

146.4

152.1

159.2

162.5

161.8

159.1

166.3

158.7

156.1

157.1

A20
1.26

DomesticNonfinancialStatistics • December 2003
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

E. Foreign-related institutions
Billions of dollars
Monthly averages
Account

2002
Sept.

Wednesday figures

2003
Mar.

Apr.

May

June

2003
July

Aug.

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Seasonally adjusted

1
2
3
4
5
6
7
8
y
10
ii
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

622.1
249.8
89.5
160.3
372.2
185.0
19.0
95.2
73.0
21.2
46.6
26.8

663.5
283.8
122.5
161.3
379.7
171.7
19.8
121.4
66.7
27.2
43.9
30.0

655.0
277.3
124.2
153.1
377.7
172.2
19.0
118.1
68.3
22.4
49.7
32.5

669.6
288.5
127.4
161.2
381.0
170.4
19.3
118.9
72.4
24.6
51.1
36.6

672.3
288.4
124.2r
164.2'
383.9
163.3
19.4
121.8
79.3
30.7
54.3
36.7

649.9
267.7
113.9'
153.8'
382.2
162.6'
19.4
118.9
81.3'
33.1
54.0
33.2

630.6
267.5
106.5r
161.0'
363.1
156.1'
19.1
111.6
76.3'
32.4
54.3
36.3

629.9
273.4
107.4
166.0
356.6
151.2
18.8
113.4
73.2
30.6
53.2
29.9

629.5
272.3
107.1
165.2
357.2
154.2
18.9
110.5
73.5
33.6
55.5
30.5

638.2
273.5
109.4
164.1
364.7
153.2
18.9
118.1
74.4
33.2
53.4
29.8

627.4
268.0
106.3
161.7
359.4
152.6
18.9
113.4
74.5
29.4
56.6
26.0

625.9
271.2
106.8
164.4
354.7
150.3
18.8
112.8
72.8
30.4
49.9
30.2

716.3

764.1

759.2

781.4

793.5

769.7

753.2

743.1

748.6

754.2

739.0

735.9

492.3
10.1
482.2
227.1
22.6
204.5
-84.7
91.7

448.4
11.5
436.9
293.2
33.7
259.5
-83.8
94.7

434.6
11.2
423.4
297.7
27.4
270.3
-72.9
90.6

433.4
10.8
422.6
305.1
31.3
273.7
-77.9
106.8

442.6
11.4
431.2
315.8
34.7
281.1
-81.9
113.5

453.4
11.4
442.0
297.0
36.8
260.3
-86.0
108.9

455.2
11.8
443.4
293.6
33.8
259.8
-103.5
116.1

451.0
10.9
440.1
290.3
33.6
256.7
-99.6
110.5

448.8
11.3
437.5
291.9
35.3
256.6
-100.7
115.4

455.0
11.4
443.6
293.8
29.5
264.3
-100.0
114.4

449.7
10.7
439.0
291.8
35.4
256.4
-94.2
106.5

453.8
10.3
443.5
281.2
31.9
249.3
-100.1
106.5

22 Total liabilities

726.4

752.5

750.0

767.4

790.0

773.3

761.4

752.2

755.4

763.2

753.9

741.4

23 Residual (assets less liabilities)7

-10.1

11.6

9.2

13.9

3.5

-3.6

-8.2

-9.0

-6.8

-9.1

-15.0

-5.4

13 Total assets6
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 ofifices
Other liabilities

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
US. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 . . . .
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5

40 Total assets6
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
Footnotes appear on p. A21.




618.5
249.8
89.5
16.1
73.4
160.3
105.1
55.2
368.7
184.9
19.0
92.3
72.4
21.2
46.3
26.8

661.7
283.8
122.5
37.2
85.4
161.3
101.6
59.7
377.9
173.2
19.8
117.3
67.6
27.2
42.7
30.7

654.9
277.3
124.2
39.8
84.4
153.1
97.9
55.2
377.6
171.3
19.0
118.5
68.8
22.4
47.5
32.4

664.8
288.5
127.4
43.1
84.3
161.2
105.2
56.0
376.3
168.6
19.3
116.6
71.8
24.6
49.4
36.7

668.8
288.4
124.2'
43.1'
81.1
164.2'
105.9'
58.3
380.4
162.8
19.4
119.3
78.9
30.7
51.8
35.3

642.4
267.7
113.9'
39.9'
74.0
153.8'
96.5'
57.3
374.8
161.6'
19.4
114.1
79.7'
33.1
51.1
32.1

624.1'
267.5
106.5'
38.7'
67.9
161.0'
100.7'
60.3'
356.6
154.9'
19.1
107.5
75.1'
32.4
52.1
35.8

625.8
273.4
107.4
39.6
67.8
166.0
103.6
62.3
352.4
151.1
18.8
109.9
72.5
30.6
52.8
29.9

620.0
272.3
107.1
40.2
66.9
165.2
104.5
60.7
347.7
152.9
18.9
102.7
73.1
33.6
53.7
30.6

629.9
273.5
109.4
39.9
69.5
164.1
103.6
60.5
356.4
152.2
18.9
111.6
73.7
33.2
51.8
30.0

626.1
268.0
106.3
38.2
68.1
161.7
101.4
60.4
358.1
152.6
18.9
112.9
73.8
29.4
55.6
26.0

624.0
271.2
106.8
39.2
67.5
164.4
104.0
60.4
352.8
150.7
18.8
111.4
71.8
30.4
50.5
30.1

712.4

761.8

756.7

775.1

786.1

758.2

743.9

738.6

737.4

744.4

736.6

734.5

474.1
10.3
463.9
227.1
22.6
204.5
-83.1
92.6

452.4
11.1
441.3
293.2
33.7
259.5
-81.6
96.3

440.6
10.6
430.0
297.7
27.4
270.3
-73.3
90.3

438.8
10.4
428.4
305.1
31.3
273.7
-77.5
107.1

440.8
11.0
429.7
315.8
34.7
281.1
-83.7
111.9

443.7
11.4
432.3
297.0
36.8
260.3
-89.3
106.3

439.7
11.5
428.3
293.6
33.8
259.8
-104.9
114.9

434.5
11.1
423.4
290.3
33.6
256.7
-98.3
111.6

430.5
11.2
419.2
291.9
35.3
256.6
-100.8
115.3

435.5
11.3
424.3
293.8
29.5
264.3
-100.0
114.5

430.4
10.7
419.7
291.8
35.4
256.4
-93.4
107.2

440.0
10.8
429.2
281.2
31.9
249.3
-96.7
109.4

710.7

760.3

755.3

773.5

784.8

757.6

743.3

738.0

736.8

743.9

736.0

733.9

1.7

1.5

1.5

1.6

1.3

.6

.6

.6

.6

.6

.6

.6

Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A21

Assets and Liabilities 1 —Continued

F. Memo items
Billions of dollars
Wednesday figures

Monthly averages
Account

2002
Sept.

2003
Mar.

Apr.

May

June

2003
July

Aug.

Sept.

Sept. 3

Sept. 10

Sept. 17

Sept. 24

Not seasonally adjusted

MEMO

Large domestically chartered banks,
adjusted for mergers
1 Revaluation gains on off-balance-sheet
items8
2 Revaluation losses on off-balancesheet items8
3 Mortgage-backed securities9
4
Pass-through
5
CMO, REMIC, and other
6 Net unrealized gains (losses) on
available-for-sale securities' 0
7 Off-shore credit to U.S. residents" . . . .
8 Securitized consumer loans12
9
Credit cards and related plans
10
Other
11 Securitized business loans12

12
13
14
15

Small domestically chartered
commercial banks, adjusted for
mergers
Mortgage-backed securities9
Securitized consumer loans12
Credit cards and related plans
Other

Foreign-related institutions
16 Revaluation gains on oflf-balancesheet items8
17 Revaluation losses on off-balancesheet items8
18 Securitized business loans12

117.2

115.1

105.7

128.1

135.0

111.7'

95.2'

114.9

100.1

111.1

114.8

116.6

98.6
345.9
255.5r
90.4

91.3
381.4
276.3r
105.2'

81.4
400.8
288.6
112.2

105.1
427.2'
314.3
112.9

110.0
436.8'
324.8
112.0'

85.4'
412.7
301.6'
111.1

79.4
387.6
274.1
113.5

96.0
373.3
262.6
110.7

79.7
387.7
274.2
113.5

92.6
380.4
268.3
112.1

96.0
369.1
259.6
109.4

97.6
367.1
256.9
110.2

11.3r
19.0
142.3
125.0
17.3
17.8

11.7
18.2
152.9
136.7
16.1
15.8

10.1
17.5
154.6
138.7
15.9
10.0

11.3'
17.3
155.3
139.4
15.9
10.2

13.0'
16.6
157.3
140.6
16.6
9.9

6.7'
15.5
161.6
144.0
17.5
8.4

-.1'
14.7
162.5
144.5
18.0
7.2

2.5
14.3
160.8
144.3
16.5
7.9

-2.5
13.9
162.1
144.4
17.8
6.8

1.8
14.6
160.9
144.3
16.6
8.1

3.0
14.6
159.7
143.3
16.4
8.1

3.1
14.3
160.1
143.8
16.3
8.0

301.9r
199.5
195.9
3.6

325.4'
202.4
194.3
8.1

336.1
204.6
196.7
7.9

337.1
204.3
196.5
7.8

336.7'
204.0
196.3
7.7

331.8'
200.6
193.0
7.6

330.1'
201.8
194.2
7.6

328.2
202.9
195.3
7.6

330.7
202.7
195.1
7.6

330.5
202.7
195.1
7.6

325.1
201.9
194.3
7.6

329.2
203.2
195.7
7.6

63.0

65.4

64.9

73.6

72.6

65.3

65.9

67.8

68.0

67.1

64.9

68.8

61.7
8.1

63.6
4.1

62.4
3.3

72.6
3.0

72.6
2.5

64.9
1.5

64.9
1.4

66.9
1.3

67.0
1.3

66.3
1.3

64.0
1.3

67.8
1.3

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 2003
COMMERCIAL PAPER OUTSTANDING
Millions of dollars, seasonally adjusted, end of period
Year ending December

2003

Item

1 All issuers

2
3

Financial companies'
Dealer-placed paper, total2
Directly placed paper, total3

4 Nonfinancial companies 4

1998

1999

2000

2001

2002

Mar.

Apr.

May

June

July

Aug.

1,163,303

1,403,023

1,619,274

1,458,870

1,347,997

1,341,270

1,342,147

1,365,704

1,324,911

1,347,286

1,336,910

614,142
322,030

786,643
337,240

963,070
312,771

967,748
266,276

976,163
217,787

946,773
244,504

961,002
232,879

1,003,088
222,597

974,116
219,960

994,384
218,311

976,065
227,418

227,132

279,140

343,433

224,847

154,047

149,993

148,266

140,020

130,835

134,591

133,427

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.

1.33

PRIME RATE CHARGED B Y BANKS

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.

Short-Term Business Loans 1

Percent per year
Date of change

Rate

2000—Jan. 1
Feb. 3
Mar. 22
May 17

8.50
8.75
9.00
9.50

2001—Jan.
Feb.
Mar.
Apr.
May
June
Aug.
Sept.
Oct.
Nov.
Dec.

4
1
21
19
16
28
22
18
3
7
12

9.00
8.50
8.00
7.50
7.00
6.75
6.50
6.00
5.50
5.00
4.75

2002—Nov.

7

4.25

2003—June 27

4.00

Period

Average
rate

2000
2001
2002

9.23
6.91
4.67

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

8.50
8,73
8.83
9.00
9.24
9.50
9.50
9.50
9.50
9.50
9.50
9.50

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
2001—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

9.05
8.50
8.32
7.80
7.24
6.98
6.75
6.67
6.28
5.53
5.10
4.84

2002—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2003—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

Money and Capital Markets

Percent per year; figures are averages of business day data unless otherwise noted
2003
2000

Item

2001

2003, week ending

2002
June

July

Aug.

Sept.

Aug. 29

Sept. 5

Sept. 12

Sept. 19

Sept. 26

MONEY MARKET INSTRUMENTS

1 Federal funds 12 - 3
2 Discount window primary credit2-4

6.24
n.a.

3.88
n.a.

1.67
n.a.

1.22
2.20

1.01
2.00

1.03
2.00

1.01
2.00

1.00
2.00

1.01
2.00

0.96
2.00

1.02
2.00

1.00
2.00

3
4
5

Commercial paper*-5 6
Nonfinancial
1 -month
2-month
3-month

6.27
6.29
6.31

3.78
3.68
3.65

1.67
1.67
1.69

1.06
1.03
1.01

1.01
1.02
1.01

1.03
1.03
1.04

1.02
1.03
1.04

1.02
1.03
1.04

1.04
1.04
1.05

1.01
1.03
1.04

1.02
1.02
1.04

1.01
1.02
1.04

6
7
8

Financial
1-month
2-month
3-month

6.28
6.30
6.33

3.80
3.71
3.65

1.68
1.69
1.70

1.08
1.04
1.02

1.02
1.03
1.03

1.04
1.05
1.06

1.04
1.05
1.06

1.04
1.05
1.07

1.05
1.06
1.07

1.04
1.05
1.06

1.04
1.05
1.05

1.03
1.05
1.05

6.35
6.46
6.59

3.84
3.71
3.66

1.72
1.73
1.81

1.10
1.04
1.02

1.05
1.05
1.06

1.07
1.08
1.13

1.07
1.08
1.13

1.07
1.09
1.14

1.08
1.10
1.16

1.07
1.08
1.12

1.07
1.08
1.12

1.07
1.07
1.12

12 Eurodollar deposits, 3-month3-8

6.45

3.70

1.73

1.03

1.04

1.07

1.08

1.07

1.09

1.07

1.10

1.07

U.S. Treasury bills
Secondary market3-5
13
4-week
14
3-month
6-month
15

n.a.
5.82
5.90

2.43
3.40
3.34

1.60
1.61
1.68

0.96
0.92
0.92

0.88
0.90
0.95

0.93
0.95
1.03

0.89
0.94
1.01

0.97
0.98
1.04

0.95
0.95
1.03

0.92
0.94
1.01

0.88
0.93
1.00

0.86
0.93
1.01

16
17
18
19
20
21
22

Constant maturities5
1-year
2-year
3-year
5-year
7-year
10-year
20-year

6.11
6.26
6.22
6.16
6.20
6.03
6.23

3.49
3.83
4.09
4.56
4.88
5.02
5.63

2.00
2.64
3.10
3.82
4.30
4.61
5.43

1.01
1.23
1.51
2.27
2.84
3.33
4.34

1.12
1.47
1.93
2.87
3.45
3.98
4.92

1.31
1.86
2.44
3.37
3.96
4.45
5.39

1.24
1.71
2.23
3.18
3.74
4.27
5.21

1.35
1.98
2.55
3.49
4.04
4.49
5.38

1.33
1.92
2.51
3.51
4.05
4.52
5.42

1.22
1.69
2.25
3.23
3.79
4.34
5.27

1.21
1.65
2.16
3.10
3.68
4.23
5.18

1.22
1.66
2.15
3.07
3.63
4.16
5.09

23

Treasury long-term average'0-''
25 years and above

n.a.

n.a.

5.41

4.45

5.00

5.41

5.23

5.37

5.41

5.30

5.22

5.13

5.58
6.19
5.71

5.01
5.75
5.15

4.87
5.64
5.04

4.07
4.68
4.33

4.59
5.17
4.74

4.82
5.42
5.10

4.63
5.23
4.92

4.80
5.40
5.07

4.84
5.44
5.07

4.73
5.33
4.94

4.44
5.04
4.84

4.50
5.10
4.81

7.98

7.49

7.10

5.70

6.13

6.46

6.26

6.43

6.45

6.33

6.25

6.14

7.62
7.83
8.11
8.37

7.08
7.26
7.67
7.95

6.49
6.93
7.18
7.80

4.97
5.72
5.92
6.19

5.49
6.07
6.35
6.62

5.88
6.31
6.64
7.01

5.72
6.13
6.42
6.79

5.87
6.28
6.61
6.97

5.90
6.31
6.63
6.96

5.78
6.20
6.50
6.86

5.72
6.12
6.40
6.77

5.59
6.01
6.29
6.68

1.15

1.32

1.61

1.64

1.64

1.67

1.63

1.65

1.62

1.62

1.61

1.66

9
10
11

Certificates of deposit, secondary market3
1-month
3-month
6-month

7

U.S. TREASURY NOTES AND BONDS

STATE AND LOCAL NOTES AND BONDS

Moody's series'2
24 Aaa
25 Baa
26 Bond Buyer series13
CORPORATE BONDS

27 Seasoned issues, all industries14
28
29
30
31

Rating group
Aaa 15
Aa
A
Baa
MEMO

Dividend-price ratio16
32 Common stocks

NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly
statistical release. 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. The rate charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program, which became effective January 9, 2003.
This rate replaces that for adjustment credit, which was discontinued after January 8, 2003.
For further information, see http://www.federalreserve.gov/boarddocs/press/bcreg/2002/
200210312/default.htm. The rate reported is that for the Federal Reserve Bank of New York.
Historical series for the rate on adjustment credit is available at: http://
www.federalreserve.gov/releases/h 15/data.htm.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web
pages (http://www.federalreserve.gov/releases/cp) for more information.
7. An average of dealer offering rates on nationally traded certificates of deposit.




8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
9. Yields on actively traded issues adjusted to constant maturities.
10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon
securities with remaining terms to maturity of 25 years and over.
11. A factor for adjusting the daily long-term average in order to estimate a 30-year rate
can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/
ltcompositeindex.html.
12. General obligation bonds based on Thursday figures; Moody's Investors Service.
13. 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 Moody's
A1 rating. Based on Thursday figures.
14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors
Service. Based on yields to maturity on selected long-term bonds.
15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial
firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial.
16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
SOURCE: U.S. Department of the Treasury.

A24
1.36

DomesticNonfinancialStatistics • December 2003
STOCK MARKET

Selected Statistics
2003

Indicator

2000

2001

2002
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance

6,806.46
809.40
414.73
478.99
552.48

6,407.95
749.46
444.45
377.72
596.61

5,571.46
656.44
430.63
260.50
554.88

5,055.78
587.78
394.60
236.42
522.51

4,738.56
553.90
367.55
214.64
485.72

4,724.22
558.10
366.90
211.45
486.71

4,977.45
583.74
395.85
221.06
522.05

5,269.96
613.26
425.12
238.33
549.91

5,583.60
649.25
441.81
254.16
579.48

5,567.94
648.00
445.29
244.67
588.81

5,580.87
651.19
451.31
238.06
582.20

5,748.80
670.18
464.61
243.37
593.10

6 Standard & Poor's Corporation
(1941^13 - 10)1

1,427.22

1,194.18

993.94

895.84

837,62

846.62

890.03

935.96

988.00

992.54

989.53

1,019.44

922.22

879.08

860.11

824.64

818.84

822.34

837.92

894.74

962.46

959.26

960.50

990.40

1,026,867
51,437

1,216,529
68,074

1,411,689
n.a.

1,441,846
n.a.

1,302,011
n.a.

1,403,742
n.a.

1,472,560 1,412,818
n.a.
n.a.

1,175,615
n.a.

1,397,876
n.a.

7 American Stock Exchange
(Aug. 31, 1973 = 50)2
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange

1,381,580 1,455,858
n.a.
n.a.

Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers 3

198,790

150,450

134,380

134,910

134,030

135,910

140,450

146,380

148,550

148,450

149,660

155,870

Free credit balances at brokers4
11 Margin accounts 5
12 Cash accounts

100,680
84,400

101,640
78,040

95,690
73,340

96,430
66,200

95,400
67,260

90,830
68,860

88,770
70,080

88,540
71,270

87,920
74,350

91,210
76,170

88,040
72,000

88,620
74,760

Margin requirements (percent of market value and effective date) 6

13 Margin stocks
14 Convertible bonds
15 Short sales

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

1. 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.




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
1.40

A25

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
2001

2002

2003

Item
Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

5,834.5

5,970.3

6,032.4

6,153.3

6,255.4

6,433.0

6,487.7

6,697.1

6,810.3r

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

5,807.5
3,338.7
2,468.8

5,943.4
3,393.8
2,549.7

6,006.0
3,443.7
2,562,4

6,126.5
3,463.5
2,662.9

6,228.2
3,552.6
2,675.6

6,405.7
3,647.4
2,758.3

6,460.8
3,710.8
2,750.0

6,670.1
3,816.3
2,853.8

6,783.2r
3,923.9'
2,859.4'

27.0
27.0
.0

26.8
26.8
.0

26.4
26.4
.0

26.8
26.8
.0

27.2
27.2
.0

27.3
27.3
.0

26.9
26.9
.0

27.0
27.0
.0

27.0'
27.0'
.0'

5,732.6

5,871.4

5,935.1

6,058.3

6,161.4

6,359.4

6,400.0

6,625.5

6,737.6r

5,732.4
.2

5,871.2
.3

5,935.0
.2

6,058.1
.2

6,161.1
.3

6,359.1
.3

6,399.8
.2

6,625.3
.2

6,736.3'
.3'

5,950.0

5,950.0

5,950.0

6,400.0

6,400.0

6,400.0

6,400.0

7,384.0

7,384.0'

5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
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 Monthly Treasury Statement.

Types and Ownership

Billions of dollars, end of period
2002
Type and holder

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
15

By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds1
Nonmarketable2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series4
Non-interest-bearing

By holder5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks6
18 Private investors
Depository institutions
19
20
Mutual funds
21
Insurance companies
22
State and local treasuries7
Individuals
23
Savings bonds
24
Pension funds
Private
25
26
State and Local
27
Foreign and international8
28
Other miscellaneous investors7-9

1999

2001

2003

2002
Q4

Ql

Q2

Q3

5,776.1

5,662.2

5,943.4

6,405.7

6,405.7

6,460.8

6,670.1

6,783.2

5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2,078.7
10.0

5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2

5,930.8
2,982.9
811.3
1,413.9
602.7
140.1
2,947.9
146.3
15.4
15.4
.0
181.5
2,574.8
12.7

6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3

6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3

6,474.0
3,331.8
955.0
1,622.9
585.7
153.2
3,142.2
148.8
12.2
12.2
.0
187.3
2,763.8
13.8

6,656.5
3,379.0
927.8
1,713.7
582.4
155.0
3,277.6
140.5
11.7
11.7
.0
189.9
2,905.5
13.6

6,754.8
3,460.6
918.2
1,799.4
576.8
166.1
3,294.2
148.4
11.0
11.0
.0
192.6
2,912.2
13.4

2,064.2
478.0
3,233.9
248.7
228.6
123.4
266.8

2,270.1
511.7
2,880.4
201.5
220.8
110.2
236.2

2,572.2
551.7
2,819.5
181.5
257.5
105.7
256.5

2,757.8
629.4
3,018.5
222.6
279.0
133.9
274.2

2,757.8
629.4
3,018.5
222.6
279.0
133.9
274.2

2,763.3
641.5
3,056.0
153.1
296.3
151.2
306.2

2,853.3
652.1
3,164.7
144.8
298.5
161.7
318.5

n.a.
656.1
n.a.
n.a.
n.a.
n.a.
n.a.

186.4
321.0
109.8
211.2
1,268.7
590.3

184.8
304.1
108.4
195.7
1,034.2
588.7

190.3
281.6
104.2
177.4
1,053.1
493.3

194.9
289.9
113.6
176.3
1,212.7
433.8

194.9
289.9
113.6
176.3
1,212.7
433.8

196.9
244.2
66.9
177.2
1,254.6
443.4

199.1
254.5
69.1
185.4
1,355.3
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. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table
1.18.

7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State
and local treasuries." The data shown here have been revised accordingly.




2000

8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds.
Excludes Treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the
Public Debt of the United States', data by holder, Federal Reserve Board of Governors, Flow
of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin,
unless otherwise noted.

A26
1.42

Domestic Financial Statistics • December 2003
U.S. GOVERNMENT SECURITIES DEALERS

Transactions 1

Millions of dollars, daily averages
2003
June
By type of security
1 U.S. Treasury bills
Treasury coupon securities by maturity
2
Three years or less
More than three but less than or
3
equal to six years
4
More than six but less than or equal
to eleven years
5
More than eleven
6
Inflation-indexed 2

7
8
9
10
11
12

Federal agency and governmentsponsored enterprises
Discount notes
Coupon securities by maturity
Three years or less
More than three years but less than
or equal to six years
More than six years but less than
or equal to eleven years . . . .
More than eleven years
Mortgage-backed

Corporate securities
13
One year or less
14
More than one year

15
16
17
18
19
20
21
22

By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency and governmentsponsored enterprises
Mortgage-backed
Corporate
With other
U.S. Treasury
Federal agency and governmentsponsored enterprises
Mortgage-backed
Corporate

July

2003, week ending
Aug.

July 30

Aug. 13

Aug. 20

Aug. 27

Sept. 3

Sept. 10

Sept. 17

Sept. 24

50,058

38,948

39,860

40,126

40,435

34,249

34,815

44,759

53,104

41,609

34.290

32,770

152,654

143,806

140,206

164,430

207,652

137,279

105,718

130,553

122,982

147,173

142,976

162,411

131,546

137,381

130,035

155,688

195,179

140,241

92,726

114,815

105,559

161,479

159,283

125,444

106,432
31,439
2,949

131,663
31,296
6,157

124,686
28,018
3,269

152,760
36,986
3,707

183,990
47,739
4,420

156,274
28,541
3,029

94,188
22,577
3,318

93,774
20,017
2,843

80,634
20,878
2,507

113,108
26,733
2,930

116,465
23,054
3,054

125,122
23,571
2,919

62,416

52,616

56,242

52,289

62,536

60,422

56,696

47,979

52,731

54,862

55,197

51,199

13,029

11,854

11,450

13,121

13,116

11,799

11,489

11,299

7,521

12,588

9,160

10,934

10,171

8,078

4,614

7,761

6,465

5,548

3,768

3,642

3,118

8,657

7,463

6,569

9,211
1,486

6,822
1,048

5,213
808

6,657
1,039

8,628
1,478

6,174
897

3,564
625

4,190
469

2,663
546

4,188
653

6,996
927

10,417
1,057

228,360

242,916

195,712

199,351

239,283

311,505

167,495

104,888

116,685

278,078

229,370

131,204

140,708
21,940

129,914
20,616

134,241
15,874

118,830
20,597

127,184
19,707

130,215
16,832

148,655
15,134

129,006
14,020

135,471
12,296

140,254
20,419

124,492
24,220

130,534
27,170

219,499

222,140

211,840

251,770

302,845

227,331

162,456

186,503

177,908

234,443

225,718

228,500

11,148
62,176
581

8,211
64,153
587

6,959
51,205
568

8,357
55,577
776

9,182
57,774
676

7,809
75,236
592

6,301
51,455
601

5,980
27,525
466

4,484
36,569
469

8,260
64,171
581

8,848
60,806
770

11,649
38,334
655

255,580

267,111

254,234

301,927

376,570

272,282

190,886

220,258

207,756

258,588

253,404

243,737

85,166
166,185
162,067

72,207
178,763
149,944

71,367
144,506
149,546

72,511
143,774
138,652

83,039
181,508
146,214

77,031
236,269
146,455

69,841
116,041
163,188

61,598
77,363
142,561

62,096
80,116
147,298

72,689
213,906
160,092

70,896
168,564
147,942

68,526
92,870
157,050

NOTE. Major changes in the report form filed by primary dealers induced a break in the
dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the
Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics)
under the Primary Dealer heading.
1. The figures represent purchases and sales in the market by the primary U.S. government
securities dealers reporting to the Federal Reserve Bank of New York. Outright transactions
include all U.S. government, federal agency, government-sponsored enterprise, mortgage-




Aug. 6

backed, and corporate securities scheduled for immediate and forward delivery, as well as all
U.S. government securities traded on a when-issued basis between the announcement and
issue date. Data do not include transactions under repurchase and reverse repurchase (resale)
agreements. Averages are based on the number of trading days in the week.
2. Outright Treasury inflation-indexed securities (TIIS) transactions are reported at principal value, excluding accrued interest, where principal value reflects the original issuance par
amount (unadjusted for inflation) times the price times the index ratio.

Federal Finance
1.43

U.S. GOVERNMENT SECURITIES DEALERS

All

Positions and Financing 1

Millions of dollars
2003, week ending

2003
Item, by type of security
June

July

Aug.

July 30

Aug. 6

Aug. 13

Aug. 20

Aug. 27

Sept. 3

Sept. 10

Sept. 17

Net outright positions 2
1 U.S. Treasury bills
Treasury coupon securities by maturity
Three years or less
More than three years but less than
or equal to six years
4
More than six but less than
or equal to eleven years
5
More than eleven
Inflation-indexed
6
2
3

7
8
9
10
11

Federal agency and governmentsponsored enterprises
Discount notes
Coupon securities, by maturity
Three years or less
More than three years but less than
or equal to six years
More than six but less than
or equal to eleven years
More than eleven

12 Mortgage-backed
13
14

Corporate securities
One year or less
More than one year

9,882

10,596

20,019

11,936

19,935

21,752

21,314

12,316

28,330

26,500

6,328

-11,958

-18,548

-11,040

-17,454

-2,969

-9,011

-12,258

-13,423

-20,399

-20,614

-5,595

-45,702

-54,366

-41,247

-56,769

—14,503

-39,039

-42,893

-41,277

-37,292

-33,677

-30,494

-11,295
680
854

-18,655
4,869
911

-12,959
2,871
709

-17,893
6,455
1,085

-16,455
2,835
988

-13.698
1,742
622

-10,152
3,593
-30

-11,456
3,448
1,137

-13,963
2,631
986

-8,688
927
1,476

-2,718
^190
1,815

61,088

59,856

43,786

49,592

41,628

53,754

42,795

37,515

42,287

50,206

48,716

17,246

15,782

13,291

15,413

10,228

12,736

14,789

14,235

14,587

14,410

11,414

2,400

4,399

681

5,704

1,714

806

588

176

-37

1,933

22

4,057
2,748

5,336
2,204

2,787
1,476

4,137
1,771

3,262
1,569

3,304
1,635

2,470
1,545

2,709
1,363

1,858
1,137

3,609
1,174

3,081
1,528

55,930

57,244

20,020

45,610

22,725

19,517

19,391

20,432

17,225

8,864

10,705

33,054
58,821

32,644
65,577

31,645
80,204

32,083
79,440

33,190
80,653

40,351
81,434

29,484
80,703

24,991
78,508

29,517
79,473

31,462
80,780

33,417
86,674

Financing 3
Securities in, U.S. Treasury
15 Overnight and continuing
16 Term
Federal agency and governmentsponsored enterprises
17 Overnight and continuing
18 Term
Mortgage-backed securities
19 Overnight and continuing
20 Term
Corporate securities
21 Overnight and continuing
22 Term

739,231
944,185

726,387
937,832

726,152
928,602

714,798
997,897

756,459
1,017,424

688,920
1,021,876

724,763
849,260

723,335
873,617

753,204
867,209

759,982
935,107

744,634
983,104

151,751
254,853

147,727
245,668

161,323
233,519

140,723
244,102

154,493
240,508

162,483
244,190

158,073
230,255

166,970
227,890

165,344
219,924

176,133
222,302

160,763
223,068

36,223
249,278

37,704
253,576

37,545
247,185

37,599
256,505

34,959
256,354

41,193
250,742

44,250
242,453

32,481
246,566

32,165
236,573

36,958
239,084

33,998
236,000

71,329
28,474

76,154
30,092

76,406
30,044

76,580
29,804

77,312
29,791

76,186
29,847

75,442
30,339

76,512
29,529

76,930
31,154

79,705
31,014

80,912
31,149

510,880
1,297,890

472,181
1,288,014

473,738
1,264,124

465,221
1,343,545

491,999
1,359,981

448,293
1,364,600

471,250
1,179,112

473,573
1,209,353

495,517
1,189,124

506,823
1,253,067

478,313
1,295,598

711,222
849,957

686,520
832,743

678,081
848,932

683,907
889,446

707,630
935,844

647,169
939,314

685,678
762,225

664,142
802,880

698,951
792,725

704,956
854,923

687,425
907,685

295,952
195,981

286,946
190,018

278,201
179,519

277,779
184,957

270,689
183,815

285,503
190,915

273,716
178,610

285,717
171,018

271,384
169,600

294,768
172,032

287,945
171,935

356,571
141,975

372,739
160,896

358,960
162,755

368,093
171,387

359,630
161,045

382,491
171,184

360,126
175,097

355,273
153,065

321,189
145,930

313,464
154,472

348,854
149,538

156,474
26,437

159,712
27,191

153,915
31,618

160,971
27,500

158,525
32,432

163,204
31,792

152,417
31,862

143,717
32,042

151,213
28,927

143,654
29,719

157,240
27,748

1,305,120
1,163,284

1,276,928
1,164,237

1,235,582
1,178,163

1,257,702
1,226,689

1,261,321
1,264,172

1,248,439
1,282,554

1,237,390
1,104,971

1,216,190
1,118,035

1,205,246
1,099,772

1,224,407
1,167,228

1,250,787
1,214,144

MEMO

Reverse repurchase agreements
23 Overnight and continuing
24 Term
Securities out, U.S. Treasury
25 Overnight and continuing
26 Term
Federal agency and governmentsponsored enterprises
27 Overnight and continuing
28 Term
Mortgage-backed securities
29 Overnight and continuing
30 Term
Corporate securities
31 Overnight and continuing
32 Term
MEMO

Repurchase agreements
33 Overnight and continuing
34 Term

NOTE. Major changes in the report form filed by primary dealers included a break in many
series as of the week ending July 4, 2001. Current weekly data may be found at the Federal
Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the
Primary Dealer heading.
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. Net outright positions include all U.S. government, federal agency, governmentsponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and
forward delivery, as well as U.S. government securities traded on a when-issued basis
between the announcement and issue date.
3. Figures cover financing U.S. government, federal agency, government-sponsored enterprise, mortgage-backed, and corporate securities. Financing transactions for Treasury
inflation-indexed securities (TIIS) are reported in actual funds paid or received, except for
pledged securities. TIIS that are issued as pledged securities are reported at par value, which
is the value of the security at original issuance (unadjusted for inflation).

A28
1.44

DomesticNonfinancialStatistics • December 2003
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
2003
Agency

1999

2000

2001

2002
Mar.

1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
4
Export-Import Bank2-3
5
Federal Housing Administration 4
6
Government National Mortgage Association certificates of
participation5
7
Postal Service6
8
Tennessee Valley Authority
9
United States Railway Association 6
10 Federally sponsored agencies7
1 1 Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks 8
15
Student Loan Marketing Association 9
16
Financing Corporation 1 "
17
Farm Credit Financial Assistance Corporation''
18
Resolution Funding Corporation 12

n.a.

Apr.
n.a.

May

June

July

1,296,477

1,616,492

1,851,632

2,121,057

n.a.

n.a.

n.a.

26,502
6
n.a.
205

26,376
6
n.a.
126

25,666
6
n.a.
255

276
6
n.a.
26,828

26,886
6
n.a.
166

26,450
6
n.a.
195

26,500
6
n.a.
218

27,015
6
n.a.
227

26,992
6
n.a.
247

n.a.
n.a.
26,496
n.a.

n.a.
n.a.
26,370
n.a.

n.a.
n.a.
25,660
n.a.

n.a.
n.a.
270
n.a.

n.a.
n.a.
26,880
n.a.

n.a.
n.a.
26,444
n.a.

n.a.
n.a.
26,494
n.a.

n.a.
n.a.
27,009
n.a.

n.a.
n.a.
26,986
n.a.

1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996

1,590,116
529,005
360,711
547,619
68,883
41,988
8,170
1,261
29,996

1,825,966
594,404
426,899
642,700
74,181
45,375
8,170
1,261
29,996

2,120,781
623,740
565,071
763,500
76,673
48,350
8,170
1,261
29,996

n.a.
687,573
n.a.
873,900
86,802
49,100
8,170
1,261
29,996

n.a.
706,215
n.a.
871,500
87,591
51,200
8,170
1,261
29,996

n.a.
717,900
n.a.
876,200
89,007
54,200
8,170
1,261
29,996

n.a.
712,447
n.a.
884,100
89,130
52,700
8,170
1,261
29,996

n.a.
704,276
n.a.
894,855
90,020
55,100
8,170
1,261
29,996

44,129

42,152

40,575

39,096

35,780

35,808

36,383

36,361

36,522

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

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

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

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

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

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

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

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

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

9,500
14,091
20,538

6,665
14,085
21,402

5,275
13,126
22,174

n.a.
13,876
25,220

n.a.
14,793
21,590

n.a.
15,383
20,978

MEMO

19 Federal Financing Bank debt 13
20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank 3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6

Other lending'4
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal 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 Agriculture 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.




n.a.
14,750
21,030

n.a.
14,760
21,048

n.a.
15,419
21,103

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

A29

State and Local Governments

Millions of dollars
2003
Type of issue or issuer,
or use

2000

2001

2002
Feb.

Mar.

Apr.

May'

June'

July'

Aug.'

Sept.

I All issues, new and refunding'

180,403

292,027

364,073

30,171

28,268 r

34,917 r

36,052

48,346

33,139

26,076

25,621

By type of issue
2 General obligation
3 Revenue

64,475
115,928

118,554
170,047

145,323
214,788

12,772
17,399

9,794
18,475r

14,815
20,101'

13,067
22,985

23,690
24,656

12,626
20,513

7,151
18,925

6,688
18,934

By type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township

19,944
121,185
39,273

30,099
197,462
61,040

33,931
259,070
67,121

3,604
20,893
5,674

1,277
19,777
7,214'

5,521
23,917'
5,478

2,808
22,907
10,337

14,411
26,369
7,567

2,924
22,061
8,154

2,197
17,425
6,453

555
20,596
4,470

7 Issues for new capital

154,257

200,363

243,181 r

20,339

16,116r

24,714 r

21,273

35,927

21,906

18,704

20,035

38,665
19,730
11,917
n.a.
7,122
47,309

50,054
21,411
21,917
n.a.
6,607
55,733

57,894
22,093
33,404
n.a.
7,227
73,033

5,354
1,233
599
n.a.
1,602
3,724

7,591
3,479
842
n.a.
1,828
8,396

7,109
1,891
1,008
n.a.
3,209
5,603

6,128
2,049
2,016
n.a.
1,655
19,878

4,951
2,656
446
n.a.
2,317
6,685

6,992
3,089
746
n.a.
1,714
3,734

4,764
1,624
207
n.a.
2,272
8,352

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

7,067
1,625
183
n.a.
1,076r
7,232r

SOURCE. Securities Data Company beginning January 1990; Investment Dealer's
before then.

Digest

U.S. Corporations

Millions of dollars
2003
Type of issue, offering,
or issuer

2000

2001

2002
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

1,079,727

1,541,821

1,429,298

127,304

134,957

155,821

125,223

170,003

179,615

126,114

119,840

2 Bonds 2

944,810

1,413,267

1,318,863

120,177

127,818

149,928

116,861

161,265

163,726

116,806

110,158

By type of offering
3 Sold in the United States
4 Sold abroad

822,012
122,798

1,356,879
56,389

1,232,618
86,246

113,951
6,226

118,567
9,250

144,315
5,613

114,277
2,585

149,437
11,828

147,835
15,890

104,875
11,931

103,683
6,475

n.a.

n.a.

1 All issues'

MEMO

19,442

24,415

18,870

4,553

1,087

1,760

1,189

1,804

4,140

By industry group
6 Nonfinancial
7 Financial

258,804
686,006

459,560
953,707

282,484
1,036,379

28,461
91,716

26,991
100,826

27,514
122,414

22,153
94,708

48,353
112,912

52,139
111,587

28,425
88,381

17,556
92,603

8 Stocks3

311,941

230,049 r

170,794r

7,127

7,139

5,893

8,362

8,738

15,889

9,308

9,682

By type of offering
9 Public
10 Private placement 4

134,917
177,024

128,554
101,495'

110,435
60,359'

7,127
n.a.

7,139
n.a.

5,893
n.a.

8,362
n.a.

8,738
n.a.

15,889
n.a.

9,308
n.a.

9,682
n.a.

By industry group
11 Nonfinancial
12 Financial

118,369
16,548

77,577
50,977

62,115
48,320

3,793
3,334

2,679
4,460

1,053
4,840

1,592
6,770

3,075
5,663

4,727
11,162

3,333
5,975

1,988
7,694

5 Private placements, domestic

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, Yankee bonds, and private placements listed. 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 for private placements are not available at a monthly frequency.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.

A30
1.47

DomesticNonfinancialStatistics • December 2003
Net Sales and Assets 1

OPEN-END INVESTMENT COMPANIES
Millions of dollars

2003

Item

2002 R

2001

Feb.

Mar.

Apr.

June

May

July

Aug.'

Sept.

1 Sales of own shares 2

1,806,474

1,825,732

122,321

140,643

141,465

142,688

157,773

153,832

139,162

142,332

2 Redemptions of own shares
3 Net sales3

1,677,266
129,208

1,702,677
123,055

113,643
8,678

129,337
11,306

112,109
29,356

118,794
23,894

130,024
27,749

139,690
14,142

125,013
14,149

127,100
15,232

4 Assets 4

4,689,624

4,119,322

4,031,818

4,059,934

4,327,560

4,563,023

4,653,085

4,714,516

4,830,159

4,848,827

5 Cash 5
6 Other

219,620
4,470,004

208,479
3,910,843

199,546
3,832,272

214,146
3,845,788

230,032
4,097,528

232,836
4,330,187

236,547
4,416,538

220,372
4,494,144

226,089
4,604,070

231,898
4,616,929

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.

1.51

DOMESTIC FINANCE COMPANIES

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.

Assets and Liabilities 1

Billions of dollars, end of period; not seasonally adjusted
2002

Account

2000

2001

2003

2002

Qi

Q2

Q3

Q4

Ql

Q2

Q3

ASSETS

1 Accounts receivable, gross2
2
3
4

Consumer
Business
Real estate

5
6

LESS:

Reserves for unearned income
Reserves for losses

7
8

Accounts receivable, net
All other

9

Total assets

958.7
328.0
458.4
172.3

948.3
340.1
447.0
161.3

945.4
315.6
455.3
174.5

930.0
329.8
443.0
157.2

941.9
332.0
449.4
160.5

945.6
334.5
445.5
165.5

945.4
315.6
455.3
174.5

934.9
307.1
453.9
173.9

947.9
308.6
455.8
183.4

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

69.7
16.7

60.6
21.0

57.0
23.8

59.5
21.5

58.5
21.6

58.0
22.0

57.0
23.8

54.2
24.0

53.8
24.5

n.a.
n.a.

872.3
461.5

866.7
523.4

864.5
584.7

849.0
515.2

861.9
530.6

865.6
558.0

864.5
584.7

856.7
610.9

869.6
655.9

n.a.
n.a.

1,333.7

1,390.1

1,449.3

1,364.2

1,392.5

1,423.6

1,449.3

1,467.7

1,525.5

n.a.

LIABILITIES AND CAPITAL
10
11

Bank loans
Commercial paper

35.9
238.8

50.8
158.6

48.0
141.5

49.4
137.0

56.9
130.8

74.9
143.1

48.0
141.5

47.3
127.3

53.2
145.3

n.a.
n.a.

12
13
14
15

Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

102.5
502.2
301.8
152.5

99.2
567.4
325.5
188.6

88.2
624.9
339.0
207.6

82.6
574.4
329.1
191.7

83.3
597.2
331.5
192.9

82.9
584.9
343.4
194.5

88.2
624.9
339.0
207.6

87.7
639.1
344.4
221.9

96.6
657.9
359.1
213.5

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

16

Total liabilities and capital

1,333.7

1,390.1

1,449.3

1,364.2

1,392.5

1,423.6

1,449.3

1,467.7

1,525.5

n.a.

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 Markets and Corporate Finance
1.52

DOMESTIC FINANCE COMPANIES

A31

Owned and Managed Receivables 1

Billions of dollars, amounts outstanding
2003
Mar.

Apr.

May

June

July

Aug.

Seasonally adjusted
1 Total
2
3
4

Consumer
Real estate
Business

1,186.3

1,248.1

1,275.9

1,283.1

1,290.3

1,297.1

1,286.0

1,291.5

1,301.5

465.0
198.9
522.3

514.8
207.7
525.6

518.6
216.5
540.9

521.7
215.4
546.0

525.3
220.4
544.6

523.6
224.6
548.9

516.8
224.1
545.1

516.2
231.9
543.5

520.8
232.9
547.7

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 vehicle 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 assets 4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables 6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables 6

1,192.8

1,255.3

1,283.4

1,286.3

1,293.4

1,297.4

1,293.1

1,288.0

1,292.4

469.0
141.6
108.2
37.6
41.3

519.7
173.9
103.5
31.5
32.7

523.9
160.2
83.3
38.9
38.7

518.2
156.2
81.8
36.3
40.9

521.7
160.9
81.2
37.6
42.4

519.1
162.8
79.0
34.5
42.5

516.2
166.6
76.7
34.6
43.1

516.2
172.7
74.8
35.0
42.0

521.2
178.0
73.2
36.6
44.4

97.1
6.6
19.6
17.1
198.9
130.6
41.7

131.9
6.8
25.0
14.3
207.7
120.1
41.2

151.9
5.7
31.1
14.0
216.5
135.0
39.5

152.1
6.2
30.7
13.9
215.4
133.9
40.1

149.4
6.1
30.6
13.6
220.4
138.8
40.4

150.3
6.0
30.7
13.2
224.6
143.0
40.7

146.5
6.0
29.5
13.2
224.1
142.5
40.9

143.6
5.9
29.2
12.9
231.9
150.7
40.8

141.8
5.8
28.8
12.5
232.9
152.0
40.8

24.7
1.9
525.0
75.5
18.3
39.7
17.6
283.5
70.2
213.3
99.4

40.7
5.7
527.9
54.0
16.1
20.3
17.6
289.4
77.8
211.6
103.5

39.7
2.2
543.0
60.7
15.4
29.3
16.0
292.1
83.3
208.8
102.5

39.2
2.2
552.8
65.3
16.3
34.0
15.0
287.5
78.0
209.5
101.1

38.9
2.2
551.4
64.1
16.8
34.5
12.8
286.0
79.0
207.0
103.0

38.6
2.2
553.7
68.0
17.1
36.1
14.8
284.5
77.6
207.0
103.1

38.4
2.2
552.9
69.9
17.2
38.4
14.2
283.4
77.5
205.9
102.6

38.1
2.2
539.9
61.9
17.7
30.0
14.2
281.0
76.3
204.7
102.9

37.8
2.2
538.3
60.9
17.6
29.1
14.2
281.1
76.7
204.4
102.0

37.8
3.2
32.5
2.2
23.1
15.5
7.6
5.6

50.1
5.1
42.5
2.5
23.2
16.4
6.8
7.7

50.2
2.4
45.9
1.9
20.2
13.0
7.2
17.4

53.1
2.2
48.6
2.2
21.9
12.2
9.7
23.9

53.1
2.2
48.6
2.2
21.4
11.8
9.6
23.9

52.2
2.2
47.8
2.2
21.6
12.0
9.6
24.2

50.0
2.2
45.6
2.1
23.5
12.9
10.6
23.6

46.7
2.2
42.3
2.1
23.7
13.1
10.6
23.8

47.0
2.2
42.7
2.1
23.4
12.8
10.6
23.8

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.

A32
1.53

DomesticNonfinancialStatistics • December 2003
MORTGAGE MARKETS

Mortgages on New Homes

Millions of dollars except as noted
2003
Item

2000

2001

2002
Mar.

Apr.

May

June

July

Aug.

Sept.

Terms and yields in primary and secondary markets

PRIMARY MARKETS

1
2
3
4
5

Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars) . . .
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)'

Yield (percent per year)
6 Contract rate 1
7 Effective rate 1 ' 3
8 Contract rate (HUD series) 4

.67

261.1
197.0
77.8
28.9
.62

252.9
184.2
76.2
28.2
.40

266.0
205.0
78.8
29.0
.62

275.3
210.7
78.7
28.8
.61

283.3
213.7
78.0
28.8
.64

283.4
214.4
78.2
28.7
.62

280.1
212.1
78.0
28.5
.66

6.90
7.00

6.35
6.44

5.69
5.75

5.83
5.92
n.a.

5.66
5.75
n.a.

5.42
5.51

5.44
5.53

5.68
5.77

234.5
177.0
77.4
29.2
.70

245.0
184.2
77.3

7.41
7.52
n.a.

28.8

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (section 203) 5
10 G N M A securities 6

n.a.
5.48
Activity in secondary markets

FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total
12
FHA/VA insured
13
Conventional

610,122
61,539
548,583

707,015
n.a.
n.a.

790,800
n.a.
n.a.

815,964
n.a.
n.a.

817,894
n.a.
n.a.

815,560
n.a.
n.a.

812,467
n.a.
n.a.

836,104
n.a.
n.a.

863,170
n.a.
n.a.

917,123
n.a.
n.a.

14 Mortgage transactions purchased (during period)

154,231

270,384

370,641

34,304

43,028

43,749

41,182

72,447

82,656

98,804

Mortgage commitments
15 Issued 7
16 To sell 8

163,689
11,786

304,084
7,586

400,327
12,268

42,005
2,457

42,906
1,479

75,569
1,785

79,172
3,657

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

Mortgage holdings (end of period)8
17 Total
18
F H A / V A insured
19
Conventional

385,693
3,332
382,361

491,719
3,506
488,213

568,173
4,573
563,600

569,522
3,540
565,982

568,975
n.a.
n.a.

572,801
n.a.
n.a.

586,361
n.a.
n.a.

595,202
n.a.
n.a.

615,986
n.a.
n.a.

641,940
n.a.
n.a.

Mortgage transactions
20 Purchases
21

174,043
166,901

n.a.
389,611

n.a.
547,046

n.a.
59,065

n.a.
51,737

n.a.
66,175

n.a.
58,124

n.a.
70,269

n.a.
91,198

n.a.
83,982

169,231

417,434

620,981

69,200

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

(during

period)

FEDERAL HOME LOAN MORTGAGE CORPORATION

(during

period)

22 Mortgage commitments contracted (during period) 9

1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured by
the Federal Housing Administration (FHA) for immediate delivery in the private secondary
market. Based on transactions on first day of subsequent month.




6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for the Federal
National Mortgage Association exclude swap activity.

Real Estate
1.54

A33

MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
2002
Type of holder and property

2000

1999

2003

2001
Q2

Q3

Q4

Qi

Q2P

1 All holders

6,315,447

6,884,942

7,585,319

7,967,494

8,201,739

8,459,605

8,671,432

8,966,656

By type of property
2 One- to four-family residences
3 Multifamily residences
4 Nonfarm, nonresidential
5

4,787,225
368,742
1,056,516
102,964

5,205,428
403,724
1,166,933
108,858

5,738,111
449,704
1,281,168
116,336

6,049,571
468,374
1,329,097
120,452

6,247,731
476,708
1,353,685
123,614

6,459,308
488,428
1,387,110
124,759

6,641,409
496,475
1,407,138
126,410

6,888,328
509,340
1,439,720
129,268

2,394,271
1,495,420
879,576
67,665
516,333
31,846
668,064
548,222
59,309
60,063
470
230,787
5,934
32,818
179,048
12,987

2,618,969
1,660,054
965,635
77,803
582,577
34,039
722,974
594,221
61,258
66,965
529
235,941
4,903
33,681
183,757
13,600

2,791,076
1,789,819
1,023,851
84,851
645,619
35,498
758,236
620,579
64,592
72,534
531
243,021
4,931
35,631
188,376
14,083

2,861,224
1,873,362
1,070,513
90,745
675,119
36,985
742,744
599,377
66,016
76,799
552
245,118
5,162
35,818
190,050
14,088

2,981,790
1,962,198
1,143,985
90,930
689,481
37,802
773,652
625,402
68,668
79,022
560
245,939
5,176
35,921
190,698
14,144

3,089,824
2,058,426
1,222,056
94,178
704,167
38,025
781,378
631,392
68,679
80,730
577
250,019
4,657
36,816
195,040
13,506

3,166,701
2,099,352
1,244,823
96,830
718,996
38,704
815,873
662,858
69,757
82,669
589
251,476
4,684
36,975
196,232
13,585

3,279,551
2,192,983
1,320,685
100,130
732,508
39,660
833,625
676,168
72,712
84,150
595
252,943
4,710
37,191
197,377
13,665

320,054
7
7
0
73,871
16,506
11,741
41,355
4,268
3,712
1,851
1,861
0
0
0
0
0
152
25
29
98
0
149,422
141,195
8,227
34,187
2,012
32,175
56,676
44,321
12,355

344,225
6
6
0
73,323
16,372
11,733
41,070
4,148
3,507
1,308
2,199
0
0
0
0
0
45
7
9
29
0
155,626
144,150
11,476
36,326
2,137
34,189
59,240
42,871
16,369

376,999
8
8
0
72,452
15,824
11,712
40,965
3,952
3,290
1,260
2,031
0
0
0
0
0
13
2
3
8
0
169,908
155,060
14,848
40,885
2,406
38,479
62,792
40,309
22,483

396,091
8
8
0
71,970
15,273
11,692
41,188
3,817
3,473
1,254
2,218
0
0
0
0
0
22
4
4
14
0
180,491
164,038
16,453
42,951
2,527
40,424
58,872
34,062
24,810

412,014
8
8
0
72,030
15,139
11,686
41,439
3,766
2,973
1,252
1,721
0
0
0
0
0
13
2
2
8
0
184,191
167,006
17,185
44,782
2,635
42,147
60,934
34,616
26,318

432,790
5
5
0
72,377
14,908
11,669
42,101
3,700
3,854
1,262
2,592
0
0
0
0
0
46
7
9
30
0
185,797
172,226
13,571
46,257
2,722
43,535
63,887
35,851
28,036

455,606
6
6
0
69,988
14,652
11,654
40,093
3,590
3,824
1,255
2,569
0
0
0
0
0
118
19
23
76
0
195,633
180,829
14,804
46,974
2,764
44,210
64,388
35,880
28,508

489,676
7
7
0
69,930
14,413
11,641
40,352
3,525
4,006
1,247
2,760
0
0
0
0
0
47
8
9
30
0
211,146
195,079
16,067
48,490
2,853
45,637
65,672
36,941
28,732

2,946,546
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
654,319
455,021
41,952
157,346
0

3,226,058
611,553
592,624
18,929
822,310
816,602
5,708
1,057,750
1,016,398
41,352
0
0
0
0
0
734,445
499,834
47,529
187,082
0

3,700,582
591,368
569,460
21,908
948,409
940,933
7,476
1,290,351
1,238,125
52,226
0
0
0
0
0
870,454
591,200
53,537
225,717
0

3,971,458
583,745
559,549
24,196
1,053,261
1,045,981
7,280
1,404,594
1,349,442
55,152
0
0
0
0
0
929,858
638,300
55,234
236,324
0

4,052,418
567,386
542,208
25,178
1,058,176
1,050,899
1,458,945
1,402,929
56,016
0
0
0
0
0
967,911
669,300
56,582
242,029
0

4,161,020
537,888
512,098
25,790
1,082,062
1,072,990
9,072
1,538,287
1,478,610
59,677
0
0
0
0
0
1,002,783
691,600
59,034
252,149
0

4,265,292
515,822
489,063
26,759
1,073,016
1,064,114
8,902
1,637,474
1,576,495
60,979
0
0
0
0
0
1,038,980
725,100
59,169
254,711
0

4,386,908
487,929
460,430
27,499
1,051,141
1,042,417
8,724
1,749,896
1,687,263
62,633
0
0
0
0
0
1,097,942
767,800
61,448
268,694
0

654,576
456,009
75,076
102,274
21,217

695,691
492,429
75,457
105,453
22,352

716,662
506,669
78,252
107,949
23,792

738,721
525,893
78,639
109,604
24,585

755,517
540,187
79,127
111,008
25,194

775,971
558,434
79,228
112,894
25,415

783,833
564,262
79,478
114,361
25,733

810,522
587,991
79,735
116,609
26,187

By type of holder
6 Major financial institutions
7
Commercial banks 2
One- to four-family
8
9
Multifamily
10
Nonfarm, nonresidential
Farm
11
Savings institutions3
12
13
One- to four-family
14
Multifamily
Nonfarm, nonresidential
IS
Farm
16
Life insurance companies
17
One- to four-family
18
19
Multifamily
Nonfarm, nonresidential
20
Farm
21
22 Federal and related agencies
Government National Mortgage Association
23
One- to four-family
24
Multifamily
25
Farmers Home Administration 4
?6
One- to four-family
77
Multifamily
28
29
Nonfarm, nonresidential
Farm
30
31
Federal Housing Admin, and Dept. of Veterans Affairs
One- to four-family
32
Multifamily
.33
Resolution Trust Corporation
34
One- to four-family
35
Multifamily
36
Nonfarm, nonresidential
37
Farm
38
Federal Deposit Insurance Corporation
39
One- to four-family
40
Multifamily
41
Nonfarm, nonresidential
42
43
Farm
44
Federal National Mortgage Association
45
One- to four-family
Multifamily
46
Federal Land Banks
47
One- to four-family
48
49
Farm
Federal Home Loan Mortgage Corporation
50
51
One- to four-family
Multifamily
52
5.3 Mortgage pools or trusts5
Government National Mortgage Association
54
55
One- to four-family
Multifamily
56
Federal Home Loan Mortgage Corporation
57
58
One- to four-family
Multifamily
59
Federal National Mortgage Association
60
One- to four-family
61
Multifamily
62
Farmers Home Administration 4
63
One- to four-family
64
Multifamily
65
Nonfarm, nonresidential
66
Farm
67
Private mortgage conduits
68
69
One- to four-family 6
Multifamily
70
Nonfarm, nonresidential
71
Farm
72
73 Individuals and others7
One- to four-family
74
Multifamily
75
Nonfarm, nonresidential
76
Farm
77

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.




7,277

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.

A34
1.55

DomesticNonfinancialStatistics • December 2003
CONSUMER CREDIT 1
Millions of dollars, amounts outstanding, end of period
2003
Holder and type of credit

2000

2001

2002
Mar.'

Apr.'

May'

June'

July'

Aug.

Seasonally adjusted
1 Total

l,692,892 r

l,817,229 r

l,895,372 r

1,919,005

1,930,277

1,941,278

1,941,740

1,947,825

1,957,239

2 Revolving
3 Nonrevolving 2

667,395
1,025,498'

701,285
1,115,944'

712,002
1,183,370'

720,586
1,198,419

723,018
1,207,259

727,411
1,213,867

725,925
1,215,815

726,379
1,221,446

728,116
1,229,123

Not seasonally adjusted
l,727,666 r

l,853,675 r

l,932,865 r

1,908,216

1,917,514

1,928,137

1,931,626

1,935,577

1,956,014

By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets3

541,470
220,503'
184,434
64,557
82,662
530,013'

558,421
238,133'
189,570
69,070
67,955
611,006'

587,165
237,790'
195,744
68,494
56,894
657,202'

575,275
233,485
193,876
68,418
48.479
662,832

576,936
240,841
195,613
70,116
47,715
662,231

582,413
239,792
196,837
71,871
48,132
667,057

584,294
244,251
198,598
73,570
47,615
662,924

582,490
249,731
201,386
73,452
47,181
661,242

588,262
259,083
204,367
73,335
47,962
661,748

By major type of credit4
11 Revolving
12
Commercial banks
13
Finance companies
14
Credit unions
15
Savings institutions
16
Nonfinancial business
17
Pools of securitized assets'

693,020
218,063
37,627
22,226
16,560
42,430
356,114

727,297
224,878
31,538
22,265
17,767
29,790
401,059

737,993
230,990
38,948
22,228
16,225
19,221
410,381

713,458
212,452
36,334
20,722
15,980
13,666
414,304

719,216
213,069
37,609
20,883
17,022
13,112
417,520

722,972
217,685
34,498
20,964
18,099
13,293
418,432

722,771
217,453
34,608
21.076
19,141
12,912
417,581

720,543
214,854
35,047
21,200
18,919
12,678
417,844

725,838
216,424
36,623
21,264
18,697
13,208
419,622

18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets3

1,034,646'
323,407
182,876'
162,208
47,997
40,232
173,899'

1,126.378'
333,543
206,595'
167,305
51,303
38,165
209,947'

1,194,871'
356,175
198,842'
173,516
52,269
37,673
246,821'

1,194,758
362,823
197,151
173,154
52,438
34,813
248,528

1,198,298
363,866
203,232
174,730
53,094
34,603
244,711

1,205,165
364,728
205,294
175,873
53,773
34,839
248,625

1,208,855
366,841
209,643
177,522
54,429
34,703
245,343

1,215,034
367,635
214,684
180,186
54,533
34,503
243,398

1,230,176
371,838
222,460
183,103
54,638
34,753
242,127

4 Total

6
7
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 CONSUMER CREDIT 1
Percent per year except as noted
2003
Item

2000

2001

2002
Mar.

Feb.

Apr.

May

June

July

Aug.

INTEREST RATES

Commercial banks2
7.05
12.19

9.34
13.90

8.50
13.22

7.62'
12.54'

7.11
11.70

6.77
11.94

15.71
14.91

14.89
14.44

13.42
13.09

13.20
12.85

6.61
13.55

5.65
12.18

4.29
10.74

3.99
10.43

3.83
10.16

2.51
9.91

2.40
9.82

2.93
9.81

3.28
9.77

3.56
9.57

54.9
57.0

55.1
57.5

56.8
57.5

59.2
57.7

59.5
57.8

60.1
57.7

60.7
57.7

62.4
57.8

62.7
57.8

63.0
57.9

92
99

91
100

94
100

97
99

96
99

97
99

97
99

97
100

95
100

93
100

20,923
14,058

22,822
14,416

24,747
14,532

24,864
14,231

25,152
14,253

27,540
14,475

27,920
14,568

26,945
14,567

26,129
14,632

25,407
14,623

Credit card plan
n.a.
n.a.

12.90
12.82

n.a.

12.49
13.11

Auto finance companies

OTHER TERMS 3

Maturity

(months)

Loan-to-value

ratio

Amount financed (dollars)

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

A35

FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
2002

2001

2003

Transaction category or sector
Q4

Q1

Q2

Q3

Q4

QL

Q2

Nonfinancial sectors

1

788.1

1,041.9

1,030.9

853.5

1,114.4

1,163.5

992.5

1,628.8

1,338.3

1,539.0

1,243.4

2,523.8

23.1
23.2
-.1

-52.6
-54.6
2.0

-71.2
-71.0
-.2

-295.9
-294.9
-1.0

-5.6
-5.0
-.5

43.4
44.2
-.7

39.8
41.6
-1.8

526.0
524.2
1.8

265.7
264.2
1.6

198.5
198.1
.4

79.9
81.5
-1.6

888.2
887.7
.5

765.0

1,094.5

1,102.1

1,149.3

1,120.0

1,120.1

952.6

1,102.8

1,072.5

1,340.5

1,163.5

1,635.6

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

13.7
56.9
150.5
106.4
43.1
322.4
258.3
7.2
53.8
3.1
72.0

24.4
84.2
235.2
109.8
68.5
485.8
384.6
23.3
71.3
6.5
86.7

37.4
54.4
217.8
82.9
26.1
563.3
424.4
35.2
98.0
5.8
120.2

48.1
23.6
161.3
101.8
84.5
563.9
418.2
32.9
106.2
6.5
166.2

-88.3
122.9
340.5
-82.0
1.8
699.1
532.7
45.6
113.4
7.5
126.0

45.5
174.6
325.0
-165.5
-119.7
725.7
533.1
54.3
131.6
6.8
134.5

-144.4
76.8
253.6
-16.4
-38.0
702.8
602.4
28.5
65.0
6.9
118.1

-81.7
196.1
191.4
-192.1
65.1
825.8
658.6
41.7
116.5
9.1
98.2

-17.4
154.2
-29.0
-124.5
61.2
920.4
780.4
31.7
95.2
13.1
107.6

-13.2
216.1
114.4
-15.3
-.3
1,045.9
843.5
67.1
130.8
4.6
-7.1

-15.2
90.3
178.6
-55.3
-14.5
886.7
763.8
33.3
83.2
6.4
93.0

-87.3
189.4
309.6
-63.9
80.7
1,141.0
951.4
50.5
127.8
11.3
66.2

By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government

330.8
392.7
291.8
94.7
6.2
41.5

450.8
576.1
408.4
159.7
8.0
67.7

498.6
565.0
377.2
182.4
5.5
38.5

558.8
575.1
380.1
184.1
10.9
15.5

614.6
399.6
235.3
156.8
7.5
105.8

596.7
381.2
231.8
141.1
8.3
142.1

720.9
162.9
47.3
110.3
5.3
68.9

689.7
229.7
88.5
132.7
8.5
183.4

791.0
140.2
-2.9
128.8
14.2
141.3

885.6
267.2
107.6
156.3
3.4
187.7

837.2
252.1
134.2
113.4
4.6
74.2

1,000.2
460.3
311.5
146.0
2.8
175.1

71.8
3.7
61.4
8.5
-1.8

31.2
7.8
22.8
6.6
-6.0

13.0
16.3
1.9
.5
-5.7

57.0
31.7
15.2
11.4
-1.3

-49.7
-14.2
-24.5
-7.3
-3.7

3.3
5.9
17.0
-16.3
-3.3

65.1
66.8
-14.5
13.9
-1.2

2.1

36.5
-54.0
22.0
-2.4

-44.0
3.9
-35.3
-11.7
-1.0

1.1
37.3
-30.1
-2.9
-3.2

18.4
52.6
-29.4
-4.0
-.8

-48.4
73.5
-93.5
-31.4
3.0

859.9

1,073.1

1,043.9

910.5

1,064.6

1,166.9

1,057.5

1,630.9

1,294.2

1,540.0

1,261.8

2,475.4

Total net borrowing by domestic nonfinancial sectors . .

By sector and instrument
2 Federal government
Treasury securities
Budget agency securities and mortgages
4
5 Nonfederal
6
7
8
9
10
11

1?
13

14
15

16
17
18
19

20
21
22

23 Foreign net borrowing in United States
Commercial paper
24
25
Bonds
26
Bank loans n.e.c
27
Other loans and advances
28 Total domestic plus foreign

Financial sectors
662.2

1,085.6

1,073.5

821.8

934.0

964.4

866.1

867.2

858.5

1,102.7

1,002.6

871.8

212.9
98.4
114.6
.0

470.9
278.3
192.6
.0

592.0
318.2
273.8
.0

433.5
234.1
199.4
.0

629.3
290.8
338.5
.0

591.8
306.5
285.3
.0

691.1
191.3
499.8
.0

487.8
141.7
346.1
.0

420.8
249.1
171.6
.0

616.4
321.5
294.9
.0

452.0
179.7
272.3
.0

460.4
209.8
250.6
.0

34 Private
35
Open market paper
36
Corporate bonds
37
Bank loans n.e.c
38
Other loans and advances
Mortgages
39

449.3
166.7
218.9
13.3
35.6
14.9

614.7
161.0
310.2
28.5
90.2
24.8

481.6
176.2
207.5
-14.4
107.1
5.1

388.3
127.7
212.3
-.4
42.5
6.2

304.7
-61.9
317.3
13.1
34.9
1.3

372.6
-13.6
361.1
17.7
8.9
-1.6

175.0
-178.3
351.1
-.6
-3.8
6.6

379.4
-109.1
434.6
31.2
15.8
7.0

437.7
84.3
194.4
81.9
71.9
5.3

486.4
-77.3
684.4
-107.9
-17.4
4.7

550.6
58.8
432.5
-42.7
105.5
-3.5

411.4
-93.6
497.7
21.0
-17.0
3.3

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
4 9 Real estate investment trusts (REITs)
50 Brokers and dealers
51 Funding corporations

46.1
19.7
.1
.2
98.4
114.6
202.2
57.8
-4.6
39.6
8.1
79.9

72.9
52.2
.6
.7
278.3
192.6
321.4
57.1
.0
62.7
7.2
40.0

67.2
48.0
2.2
.7
318.2
273.8
212.3
70.7
.0
6.3
-17.2
91.5

60.0
27.3
.0
-.7
234.1
199.4
201.9
81.9
.0
2.7
15.6
-.4

52.9
7.4
1.5
.6
290.8
338.5
292.3
1.3
.0
2.5
1.4
-55.2

44.1
-68.6
4.4
1.4
306.5
285.3
416.8
-23.6
.0
7.8
-18.9
9.1

24.4
-33.1
2.4
2.4
191.3
499.8
258.3
-28.9
.0
7.4
-15.7
-42.2

12.6
-12.2
2.0
1.2
141.7
346.1
230.6
83.9
.0
25.3
17.5
18.5

62.3
37.1
3.1
2.0
249.1
171.6
195.8
110.9
.0
27.7
15.2
-16.4

100.3
-46.7
.4
2.5
321.5
294.9
389.9
7.4
.0
18.6
-24.0
37.8

76.1
48.2
2.8
4.4
179.7
272.3
315.2
-.2
.0
17.5
38.4
48.0

85.1
-30.3
1.6
1.5
209.8
250.6
286.7
153.8
.0
12.9
-16.2
-83.6

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

40
41
47
43
44
45
46
47
48




A36
1.57

DomesticNonfinancialStatistics • December 2003
FUNDS RAISED IN U.S. CREDIT MARKETS 1 —Continued
Billions of dollars; quarterly data at seasonally adjusted annual rates
2002

2001
Transaction category or sector

1997

1998

1999

2000

2003

2001
Q4

QI

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

1,522.2

2,158.7

2,117.4

1,732.3

1,998.7

2,131.2

1,923.6

2,498.1

2,152.7

2,642.7

2,264.4

3.347.2

184.1
236.0
56.9
430.8
128.2
76.9
337.3
72.0

193.1
418.3
84.2
568.2
145.0
152.7
510.6
86.7

229.9
520.7
54.4
427.3
69.0
127.5
568.5
120.2

207.6
137.6
23.6
388.7
112.8
125.6
570.1
166.2

-164.4
623.8
122.9
633.3
-76.2
32.9
700.4
126.0

37.8
635.2
174.6
703.2
-164.0
-114.2
724.1
134.5

-255.9
730.9
76.8
590.2
-3.0

-154.3
1,013.8
196.1
572.0
-139.0
78.6
832.8
98.2

70.8
686.5
154.2
130.0
-54.4
132.2
925.7
107.6

-53.3
814.9
216.1
768.6
-126.1
-20.9
1,050.6
-7.1

96.3
531.9
90.3
581.7
-102.0
90.1
883.2
93.0

-107.5
1,348.6
189.4
713.7
-74.3
66.7
1.144.3
66.2

709.4
118.1

Funds raised through mutual funds and corporate equities
61 Total net issues

218.7

166.1

191.5

238.4

305.0

406.4

437.0

276.5

-83.6

291.0

288.7

400.4

62 Corporate equities
Nonfinancial corporations
63
64
Foreign shares purchased by U.S. residents
Financial corporations
65
66 Mutual fund shares

-46.5
-77.4
57.6
-26.7
265.1

-113.4
-215.5
101.4
.8
279.5

.2
-110.4
114.3
-3.7
191.2

3.4
-118.2
106.7
14.9
235.0

103.6
-47.4
109.1
41.9
201.4

150.5
-4.2
83.9
70.9
255.9

50.1

176.5
15.5
77.4
83.6
100.0

-120.7
-141.2
-51.3
71.8
37.1

84.1
-30.9
51.6
63.4
206.9

99.6
-80.1
132.5
47.2
189.1

52.0
-57.6
56.0
53.6
348.4

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F4. For ordering address, see inside front cover.




-11.0
-7.0
68.1
386.9

Flow of Funds
1.58

A37

S U M M A R Y OF FINANCIAL TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
2002

2001

Transaction category or sector

1997

1998

1999

2000

2003

2001
Q4

Qt

Q2

Q3

Q4

Ql

Q2

N E T LENDING IN CREDIT MARKETS 2

1 Total net lending in credit markets
2

3
4
5
6
7
8
9
10

11
12
13
14
IS
16
17
18
19
20
21
22
2.3
24
25
26
27
28
29
30

31
32
33

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

1,522.2

2,158.7

2,117.4

1,732.3

1,998.7

2,131.2

1,923.6

2,498.1

2,152.7

2,642.7

2,264.4

3,347.2

15.5
25.5
-12.7
2.6
.1
3.2
259.6
1,243.9
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
-25.0
104.8
25.2
45.7
67.1
87.5
80.9
-2.9
106.3
114.6
163.8
23.1
-9.1
20.2
14.9
50.4

250.9
119.1
-16.0
13.3
134.5
11.7
167.7
1,728.4
21.1
305.6
312.1
-11.6
-.9
6.0
36.2
18.9
-12.8
76.9
5.8
-26.1
72.1
244.0
127.3
5.2
314.0
192.6
281.7
77.3
.0
-5.1
6.8
-15.8

257.1
247.1
-15.6
-2.9
28.4
6.5
96.6
1,757.3
25.7
312.2
318.6
-17.0
6.2
4.4
67.7
27.5
27.8
53.5
-3.0
14.1
46.9
182.0
48.4
8.5
291.3
273.8
194.1
97.1
.0
-2.6
-34.7
124.0

-13.7
-33.6
19.4
1.3
-.8
11.6
129.5
1,604.8
33.7
357.9
339.5
23.9
-12.2
6.7
56.2
28.0
.8
57.9
-8.7
31.3
54.6
143.0
21.0
-6.3
256.4
199.4
172.1
108.6
.0
-7.1
68.9
35.0

27.1
-.7
-12.4
2.0
38.1
6.0
234.6
1,731.0
39.9
205.2
191.6
-.6
4.2
10.0
42.8
41.5
-28.1
130.9
9.0
6.7
-17.7
246.0
126.0
6.9
309.0
338.5
266.2
-4.8
.0
6.7
92.4
-95.8

172.6
145.3
-17.1
2.0
42.4
-1.5
274.7
1,685.4
85.1
314.6
275.0
-7.8
13.6
33.9
73.1
60.5
-28.1
81.3
28.5
-20.9
-2.7
49.1
139.3
16.3
335.3
285.3
394.1
-99.6
.0
14.0
-110.5
60.4

100.4
48.9
69.3
3.3

6.1

292.0
257.6
-11.4
3.3
42.5
-3.7
458.0
1,751.8
43.4
384.3
343.8
33.7
1.9
4.9
-23.5
61.8
.9
206.6
35.4
22.1
-54.5
-87.5
41.9
-2.6
130.1
346.1
208.4
42.2
.0
31.8
402.8
-45.0

-116.4
-170.5
33.5
2.8
17.8
31.1
393.9
1,844.1
67.3
624.0
599.9
21.8
-1.6
4.0
80.3
6.1
.8
279.0
21.7
40.2
-10.4
-75.7
162.7
-1.7
203.5
171.6
173.2
83.9
.0
27.7
-208.6
165.2

132.6
127.2
-42.4
4.0
43.8
3.1
351.0
2,156.0
118.7
420.4
463.3
-32.8
.2
-10.2
72.5
44.4
.8
168.2
65.6
.2
60.7
301.2
118.4
17.0
277.8
294.9
368.1
-14.8
.0
6.7
138.8
-324.3

-353.9
-326.4
54.9
-.2
-82.1
-18.3
359.5
2,277.1
32.3
349.0
305.6
23.3
20.8
-.7
189.4
43.5
-19.3
276.0
57.7
7.3
.1
-187.0
220.2
31.1
302.7
272.3
291.4
-2.4
.0
-8.6
19.6
374.5

20.1
-67.5
34.4
4.1
49.1
-1.4
1,055.8
2,272.7
25.0
616.3
547.7
12.2
39.7
16.8
88.0
71.2
-17.6
216.0
42.9
39.5
62.7
214.0
213.0
24.1
112.6
250.6
266.1
56.6
.0
31.0
1.3
^3.3

1,522.2

2,158.7

2,117.4

1,732.3

1,998.7

2,131.2

1,923.6

2,498.1

2,152.7

2,642.7

2,264.4

3,347.2

.7
-.5
.5
107.7
-19.7
41.2
97.1
122.5
155.9
120.9
-46.5
265.1
139.8
111.0
59.3
201.4
22.3
-53.0
-40.7
496.9

6.6
.0
.6
6.5
-31.8
47.3
152.4
91.8
287.2
91.3
-113.4
279.5
106.4
103.2
48.0
217.4
19.6
—46.1
-57.8
953.3

-8.7
-3.0
1.0
61.1
15.0
151.2
45.1
131.1
249.1
169.8
.2
191.2
268.5
104.4
50.8
181.8
30.7

-.4
-4.0
2.4
134.2
15.1
-71.4
188.8

.2
.0
.0
9.6
24.5
278.1
329.7
77.8
379.8
-138.3
150.5
255.9
-126.1
-383.7
119.6
158.0
-55.2
-57.7
8.4
200.5

-3.0
.0
.9
-43.8
3.3
-200.5
288.3
270.0
-312.5
119.4
50.1
386.9
194.8
-190.7
54.0
148.8
7.2
-3.7
1.5
120.3

12.9
.0
.6
66.1
-166.5
210.2
215.6
34.8
104.2
362.4
176.5
100.0
48.9
-131.9
71.4
191.7
40.5
-2.4
-32.9
641.9

24.6
.0
2.4
53.0
62.4
208.0
323.4
36.8
-196.6
-91.1
-120.7
37.1
126.2
-69.6
60.8
287.2
53.8

-62.4
1,125.5

233.3
113.2
3.4
235.0
419.5
146.1
50.2
209.0
32.8
56.6
-11.5
1,371.8

4.3
.0
1.3
30.7
-28.0
204.3
267.2
68.6
428.6
22.3
103.6
201.4
-73.4
3.1
77.2
210.8
17.4
-59.9
-18.6
683.1

-83.9
876.1

4.9
.0
.0
20.3
170.0
-43.7
257.2
-140.2
337.6
29.2
84.1
206.9
157.1
44.1
54.2
232.7
7.2
-1.3
-40.9
160.6

4.9
.0
.6
-73.7
-4.1
271.3
261.6
191.6
-441.4
-50.4
99.6
189.1
141.4
229.8
94.0
269.5
55.2
-79.9
-22.1
789.2

.6
.0
1.6
78.6
-123.5
94.2
437.6
43.4
186.0
564.3
52.0
348.4
202.4
641.8
70.0
245.5
45.1
-43.7
8.0
908.8

-21.1
9.3
248.0
1,565.9
81.6
188.9
168.2
2.1
12.0
6.6
12.3
58.3
1.0
278.1
36.7
47.1
70.5
-239.1
243.3
24.4
236.7
499.8
234.1
-26.5
.0
26.3
-219.5

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
52
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

-8.1

116.2

-2.1

55

Total financial sources

3,304.2

4,320.6

4,811.9

4,972.6

4,142.8

3,362.7

2,815.1

4,442.2

3,740.4

4,182.8

4,190.5

7,108.5

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
106.2
-19.9
63.2
28.0
-285.5

-.1

-.7
42.8
.1
35.7
11.7
-279.7

-1.2
78.5
20.4
122.6
26.2
-527.2

-.1
11.1
17.2
-53.9
22.0
-341.2

.0

-.9
99.1
-13.0
227.6
-52.2
15.2

1.1
23.9
16.7
-291.8
21.5
98.9

36.7
-15.1
-62.0
-55.6
75.3

-.2
-70.4

22.6
-166.2
34.6
-278.7

-1.5
-87.1
39.8
156.9
17.9
-336.8

-1.1

-8.5
3.8
57.7
19.7
-208.5

112.2
-20.2
-329.2

.5
112.7
-42.2
292.4
-12.4
129.1

62
63
64

Floats not included in assets (-)
Federal government checkable deposits
Other checkable deposits
Trade credit

-2.7
-3.9
-25.5

2.6
-3.1
-43.3

-7.4
-.8
6.8

9.0
1.7
22.4

5.7
4.5
-6.5

-91.8
5.7
73.6

15.1
6.1
-26.6

77.1
7.1
-53.6

^10.3
7.6
-14.8

-51.7
8.4
18.5

153.1
9.0
-3.8

-104.9
9.7
24.3

65

Total identified to sectors as assets

3,397.9

4,452.4

4,955.0

5,192.2

4,414.1

3,749.3

2,987.9

4,097.1

3,865.4

4,181.8

4,291.9

6,649.1

1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
F. 1 and F.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

6.1

A81

DomesticNonfinancialStatistics • December 2003

1.59

S U M M A R Y OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
2001

2002

Q4

Ql

2003

Q2

Q3

Q4

Ql

Q2

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
5 Nonfederal

16,240.8

17,306.5

18,171.0

19,286.0

19,286.0

19,530.4

19,842.6

20,182.9

20,655.2

20,953.2

21,486.6

3,752.2
3,723.7
28.5

3,681.0
3,652.7
28.3

3,385.1
3,357.8
27.3

3,379.5
3,352.7
26.8

3,379.5
3,352.7
26.8

3,430.3
3,404.0
26.3

3,451.4
3,424.6
26.8

3,540.8
3,513.6
27.2

3,637.0
3,609.8
27.3

3,700.6
3,673.7
26.9

3,806.9
3,779.9
27.0

12,488.7

13,625.5

14,785.9

15,906.5

15,906.5

16,100.1

16,391.2

16,642.1

17,018.1

17,252.7

17,679.7

6
7
8
y
10
n
12
13
14
IS
16

By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit

193.0
1,402.9
1,846.0
1,150.2
826.1
5,640.4
4,362.9
307.9
873.0
96.6
1,430.1

230.3
1,457.2
2,063.9
1,233.2
852.4
6,238.1
4,787.2
343.4
1,005.1
102.3
1,550.4

278.4
1,480.9
2,225.1
1,335.0
936.9
6,802.0
5,205.4
376.4
1,111.4
108.9
1,727.7

190.1
1,603.7
2,565.6
1,253.5
938.7
7,501.1
5,738.1
421.9
1,224.7
116.3
1,853.7

190.1
1,603.7
2,565.6
1,253.5
938.7
7,501.1
5,738.1
421.9
1,224.7
116.3
1,853.7

167.5
1,627.5
2,629.0
1,240.1
934.7
7,665.4
5,877.2
429.1
1,241.0
118.1
1,835.8

148.4
1,682.0
2,676.9
1,195.0
948.1
7,879.6
6,049.6
439.5
1,270.1
120.4
1,861.1

142.2
1,707.9
2,669.6
1,162.2
955.0
8,112.8
6,247.9
447.4
1,293.9
123.6
1,892.5

126.0
1,764.5
2,698.2
1,166.5
960.7
8,369.4
6,459.3
458.7
1,326.6
124.8
1,932.9

127.1
1,791.8
2,742.9
1,141.8
962.3
8,578.9
6,638.0
467.1
1,347.4
126.4
1,907.8

107.5
1,844.9
2,820.3
1,129.5
979.8
8,872.6
6,884.2
479.7
1,379.4
129.3
1,925.1

17
18
iy
20
21
22

By borrowing sector
Households
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government

6,012.0
5,338.3
3,790.7
1,383.7
163.9
1,138.3

6,511.0
5,937.7
4,202.2
1,566.1
169.4
1,176.9

7,080.8
6,512.8
4,582.4
1.750.2
180.2
1,192.3

7,695.4
6,913.0
4,818.3
1,907.0
187.7
1,298.1

7,695.4
6,913.0
4,818.3
1,907.0
187.7
1,298.1

7,812.5
6,967.6
4,845.7
1,934.7
187.1
1,320.0

7,996.6
7,024.0
4,864.2
1,968.0
191.8
1,370.6

8,200.1
7,048.0
4,854.1
1,999.0
194.9
1,394.0

8,467.2
7,107.5
4,872.9
2,039.0
195.6
1,443.4

8,610.8
7,175.0
4,912.5
2,067.5
194.9
1,466.9

8,874.2
7,289.8
4,987.7
2,104.1
198.1
1,515.7

23 Foreign credit market debt held in
United States

639.3

652.5

709.5

659.7

659.7

675.9

674.1

665.7

665.8

669.8

656.9

24
25
26
27

72.9
450.6
58.7
57.1

89.2
452.5
59.2
51.6

120.9
467.7
70.5
50.3

106.7
443.2
63.2
46.6

106.7
443.2
63.2
46.6

123.6
439.6
66.7
46.0

130.2
426.1
72.2
45.5

134.0
417.3
69.3
45.1

142.8
409.8
68.6
44.6

155.7
402.4
67.6
44.1

173.1
379.0
59.7
45.0

16,880.1

17,958.9

18,880.5

19,945.7

19,945.7

20,206.3

20,516.6

20,848.6

21,320.9

21,623.0

22,143.5

Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances

28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign

Financial scctors
29 Total credit market debt owed by
financial sectors

6,543.6

7,617.2

8,439.0

9,370.3

9,370.3

9,565.8

9,778.0

9,982.6

10,293.9

10,520.9

10,734.1

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

3,292.0
1,273.6
2,018.4
.0
3,251.6
906.7
1,878.7
105.8
288.7
71.6

3,884.0
1,591.7
2,292.2
.0
3,733.2
1,082.9
2,086.3
91.5
395.8
76.7

4,317.4
1,825.8
2,491.6
.0
4,121.5
1,210.7
2,298.5
91.1
438.3
82.9

4,944.1
2,114.0
2,830.1
.0
4,426.2
1,148.8
2,615.8
104.2
473.2
84.2

4,944.1
2,114.0
2,830.1
.0
4,426.2
1,148.8
2,615.8
104.2
473.2
84.2

5,116.9
2,161.8
2,955.1
.0
4,448.9
1,090.9
2,707.4
102.3
462.4
85.9

5,238.8
2,197.2
3,041.6
.0
4,539.2
1,046.9
2,823.6
110.6
470.6
87.6

5,344.0
2,259.5
3,084.5
.0
4,638.6
1,049.5
2,878.9
130.3
491.0
88.9

5,498.1
2,339.9
3,158.2
.0
4,795.8
1,078.7
3,031.9
105.3
489.8
90.1

5,611.1
2,384.8
3,226.3
.0
4,909.8
1,076.5
3,144.7
92.9
506.5
89.2

5,726.2
2,437.2
3,289.0
.0
5,007.8
1,036.5
3,276.2
98.7
506.5
90.1

40
41
42
43
44
45
46
47
48
49
50
51
52

By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations

188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
625.5
16.0
158.8
412.6

230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.2
1.610.3
25.3
696.1
16.0
165.1
504.0

266.7
242.5
287.7
3.4
2.5
1,825.8
2,491.6
1,812.3
40.9
778.0
16.0
167.8
503.7

296.0
266.1
295.1
4.9
3.1
2,114.0
2,830.1
2,104.6
42.3
779.2
16.0
170.2
448.4

296.0
266.1
295.1
4.9
3.1
2,114.0
2,830.1
2,104.6
42.3
779.2
16.0
170.2
448.4

295.8
269.0
280.5
5.5
3.7
2,161.8
2,955.1
2,161.4
38.4
763.8
16.0
172.1
442.6

310.2
264.2
275.3
6.0
4.0
2,197.2
3,041.6
2,220.6
42.8
788.9
16.0
178.4
432.8

318.7
271.8
286.3
6.8
4.5
2,259.5
3,084.5
2,272.8
46.6
808.0
16.0
185.3
421.5

325.6
286.4
281.4
6.9
5.1
2,339.9
3,158.2
2,373.2
40.6
822.6
16.0
190.0
447.9

324.8
302.8
287.2
7.6
6.3
2,384.8
3,226.3
2,444.1
50.2
813.6
16.0
194.4
462.7

336.7
319.0
277.1
8.0
6.6
2,437.2
3,289.0
2,517.5
46.2
856.3
16.0
197.6
426.8

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

23,423.8

25,576.1

27,319.4

29,316.0

29,316.0

29,772.1

30,294.7

30,831.2

31,614.9

32,143.9

32,877.5

1,172.6
7,044.2
1,402.9
4,175.4
1,314.8
1,171.9
5,712.0
1,430.1

1,402.4
7,564.9
1,457.2
4,602.6
1,383.8
1,299.9
6,314.8
1,550.4

1,610.0
7,702.5
1,480.9
4,991.4
1,496.6
1,425.5
6,884.9
1,727.7

1,445.6
8,323.6
1,603.7
5,624.7
1,421.0
1,458.4
7,585.3
1,853.7

1,445.6
8,323.6
1,603.7
5,624.7
1,421.0
1,458.4
7,585.3
1,853.7

1,382.0
8,547.2
1,627.5
5,776.1
1,409.1
1,443.1
7,751.3
1,835.8

1,325.5
8,690.2
1,682.0
5,926.6
1,377.8
1,464.3
7,967.2
1,861.1

1,325.7
8,884.8
1,707.9
5,965.8
1,361.7
1,491.1
8,201.7
1,892.5

1,347.5
9,135.1
1,764.5
6,139.9
1,340.4
1,495.1
8,459.5
1,932.9

1,359.2
9,311.7
1,791.8
6,290.0
1,302.3
1,512.9
8,668.2
1,907.8

1,317.1
9,533.1
1,844.9
6,475.5
1,287.9
1,531.3
8,962.6
1,925.1

1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2
through L.4. For ordering address, see inside front cover.




Flow of Funds
1.60

A39

SUMMARY OF FINANCIAL ASSETS A N D LIABILITIES 1
Billions of dollars except as noted, end of period
2002

2001

Transaction category or sector

1998

1999

2000

2003

2001
Q4

QL

Q2

Q3

Q4

QL

Q2

CREDIT MARKET DEBT OUTSTANDING 2
1

Total credit market assets

23,423.8

25,576.1

27,319.4

29,316.0

29,316.0

29,772.1

30,294.7

30,831.2

31,614.9

32,143.9

32,877.5

2

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 (ABSs) issuers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations

3,304.8
2,256.3
241.5
67.5
739.4
221.5
2,273.5
17,624.1
452.5
4,336.1
3,761.4
504.5
26.5
43.8
964.7
324.2
194.1
1,828.0
521.1
621.1
704.6
965.9
1,028.4
98.4
1,252.3
2,018.4
1,219.4
645.5
32.1
45.5
189.4
152.3

3,622.8
2,564.4
226.0
64.6
767.8
261.1
2,306.8
19,385.4
478.1
4,648.3
4,080.0
487.4
32.7
48.3
1,032.4
351.7
222.0
1,886.0
518.2
635.2
751.4
1,147.8
1,076.8
106.9
1,543.5
2,292.2
1,413.6
742.6
32.1
42.9
154.7
276.0

3,572.5
2,490.1
249.4
65.9
767.0
272.7
2,476.9
20,997.4
511.8
5,006.3
4,419.5
511.3
20.5
55.0
1,088.6
379.7
222.8
1,943.9
509.4
666.5
806.0
1,290.9
1,097.8
100.6
1,807.1
2,491.6
1,585.7
851.2
32.1
35.8
223.6
311.0

3,585.9
2,475.8
237.1
67.9
805.1
278.7
2,724.3
22,727.1
551.7
5,210.5
4,610.1
510.7
24.7
65.0
1,131.4
421.2
194.7
2,074.8
518.4
673.1
788.4
1,536.9
1,223.8
107.4
2,114.3
2,830.1
1,851.9
846.4
32.1
42.5
316.0
216.7

3,585.9
2,475.8
237.1
67.9
805.1
278.7
2,724.3
22,727.1
551.7
5,210.5
4,610.1
510.7
24.7
65.0
1,131.4
421.2
194.7
2,074.8
518.4
673.1
788.4
1,536.9
1,223.8
107.4
2,114.3
2,830.1
1,851.9
846.4
32.1
42.5
316.0
216.7

3,594.8
2,493.8
231.6
68.7
800.6
281.0
2,789.5
23,106.8
575.4
5,231.3
4,629.3
507.7
27.7
66.6
1,134.7
434.3
195.0
2,141.2
527.6
684.9
806.0
1,496.9
1,276.8
113.5
2,163.8
2,955.1
1,902.6
834.4
32.1
49.1
299.6
206.3

3,652.9
2,539.0
229.5
69.6
814.7
280.1
2,900.9
23,460.8
590.7
5,328.3
4,719.7
512.6
28.1
67.9
1,130.9
452.9
195.2
2,192.3
536.4
690.4
792.4
1,419.6
1,291.6
112.9
2,200.2
3,041.6
1,956.2
848.2
32.1
57.0
352.6
191.2

3,601.4
2,477.1
238.9
70.3
815.1
287.9
3,003.2
23,938.7
604.2
5,476.2
4,858.4
521.2
27.7
68.8
1,153.8
455.3
195.4
2,265.7
541.9
700.5
789.8
1,405.7
1,334.5
112.4
2,253.0
3,084.5
2,002.9
860.8
32.1
63.9
335.2
214.6

3,644.0
2,497.6
249.3
71.3
825.9
288.7
3,131.0
24,551.1
629.4
5,614.9
5,003.9
516.9
27.8
66.3
1,166.8
463.9
195.6
2,307.8
558.3
700.5
804.9
1,511.6
1,365.4
116.7
2,320.9
3,158.2
2,097.8
867.6
32.1
65.6
344.4
167.2

3,539.0
2,422.1
239.5
71.2
806.2
284.1
3,223.9
25,096.9
641.5
5,673.6
5,055.6
519.0
33.0
66.1
1,214.4
473.2
190.8
2,373.0
572.7
702.3
805.0
1,485.5
1,412.0
124.5
2,387.0
3,226.3
2,162.8
861.1
32.1
63.5
390.9
236.2

3,528.7
2,384.9
249.4
72.2
822.2
283.7
3,484.7
25,580.3
652.1
5,829.1
5,198.1
517.9
42.9
70.3
1,238.8
494.2
186.4
2,426.7
583.4
712.2
820.6
1,480.3
1,469.8
130.5
2,419.0
3,289.0
2,231.0
879.2
32.1
71.2
340.2
225.5

23,423.8

25,576.1

27,319.4

29,316.0

29,316.0

29,772.1

30,294.7

30,831.2

31,614.9

32,143.9

32,877.5

60.1
9.2
19.9
624.9
189.4
1,333.3
2,626.5
805.3
1,329.7
913.8
3,613.1
572.2
718.3
8,210.5
2,073.8
170.7
1,001.0
8,298.5

50.1
6.2
20.9
686.1
202.4
1,484.5
2,671.6
936.4
1,578.8
1,083.6
4,538.5
676.6
783.9
9,067.6
2,342.3
201.4
1,130.4
9,294.9

46.1
2.2
23.2
820.3
221.2
1,413.1
2,860.4
1,052.6
1.812.1
1,196.8
4,434.6
822.7
819.1
9,070.9
2,761.8
234.2
1,095.8
10,470.7

46.8
2.2
24.5
851.0
191.4
1,603.2
3,127.6
1,121.1
2,240.7
1,231.8
4,135.5
825.9
880.0
8,681.1
2,688.4
251.6
960.7
11,177.0

46.8
2.2
24.5
851.0
191.4
1,603.2
3,127.6
1,121.1
2,240.7
1,231.8
4,135.5
825.9
880.0
8,681.1
2,688.4
251.6
960.7
11,177.0

45.7
2.2
24.7
840.1
162.4
1,518.1
3,236.7
1,178.9
2,203.3
1,262.4
4,247.0
778.0
894.2
8,812.9
2,715.3
259.7
963.2
11,267.0

47.2
2.2
24.8
856.6
131.4
1,571.9
3,256.4
1,188.7
2,151.2
1,343.1
3,926.6
745.6
901.2
8,329.4
2,717.9
265.8
893.5
11,556.2

53.1
2.2
25.5
869.8
150.7
1,610.7
3,336.8
1,199.9
2,105.9
1,313.7
3,452.3
726.3
902.9
7,725.4
2,767.1
281.7
811.6
12,003.5

55.8
2.2
25.5
874.9
205.9
1,646.7
3,398.7
1,171.5
2,223.9
1,336.8
3,639.4
738.8
920.9
8,005.7
2,820.1
278.8
840.9
11,704.3

57.6
2.2
25.6
856.5
175.5
1,680.4
3,502.5
1,209.1
2,156.2
1,323.1
3,591.0
796.6
941.2
7,923.8
2,834.2
298.6
806.3
11,952.4

58.9
2.2
26.0
876.1
155.6
1,703.5
3,575.0
1,222.4
2,120.8
1,453.5
4,072.6
957.4
975.2
8,562.9
2,874.4
306.4
858.4
11,837.6

4
6
7
8
9
10
11
17
13
14
IS
16
17
18
19
20
21
22
73
7.4
75
26
27
28
29
30
31
3?
33

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

55,993.9

62,332.2

66,477.2

69,356.5

69,356.5

70,183.9

70,204.6

70,170.3

71,505.6

72,276.6

74,516.6

54
55
56

Financial assets not included in liabilities (+)
Gold and special drawing rights
Corporate equities
Household equity in noncorporate business

21.6
15,547.3
4,279.4

21.4
19,522.8
4,510.0

21.6
17,627.0
4,743.3

21.8
15,316.0
4,824.6

21.8
15,316.0
4,824.6

21.9
15,243.6
4,848.0

22.3
13,344.2
4,912.8

22.8
10,951.6
4,974.3

23.2
11,875.2
5,020.1

22.4
11,422.2
5,069.5

22.8
13,253.6
5,105.0

57
58
59
60
61
62

Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous

-6.4
525.5
-26.5
230.6
121.2
-1,934.5

-7.1
568.2
-28.5
266.4
129.4
-2,331.6

-8.5
646.6
-4.3
388.9
146.3
-3,422.0

-8.6
657.7
11.1
348.6
121.7
-3,594.1

-8.6
657.7
11.1
348.6
121.7
-3,594.1

-8.9
636.0
21.9
401.4
110.7
-3,472.3

-9.1
660.7
17.5
463.9
163.6
-3,502.4

-8.9
666.7
16.5
380.7
155.0
-3,396.0

-9.1
675.9
15.3
356.2
154.9
-3,504.0

-9.2
658.3
19.3
397.6
144.8
-3,520.5

-9.1
686.5
6.9
477.1
152.4
-3,787.7

63
64
65

Floats not included in assets (-)
Federal government checkable deposits
Other checkable deposits
Trade credit

-3.9
23.1
84.8

-9.8
22.3
95.6

-2.3
24.0
122.0

-12.3
28.6
115.5

-12.3
28.6
115.5

-9.6
26.3
61.0

-9.3
31.4
15.0

-14.8
25.8
9.8

-11.7
35.9
96.4

27.4
34.2
47.1

-17.1
40.1
19.7

66

Totals identified to sectors as assets

76,110.3

86,905.3

90,179.0

90,988.8

90,988.8

91,677.9

89,795.0

87,418.1

89,717.7

90,106.5

94,422.0

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.l and L.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A40
2.12

Domestic Nonfinancial Statistics • December 2003
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
2002
Q4'

2002

2003

Qlr

Q2r

Q3

Output (1997=100)

Q4r

2003

Qir

Q2r

2002

Q3

Capacity (percent of 1997 output)

Q4r

2003

Q!r

Q2r

Q3

Capacity utilization rate (percent) 2

1 Total industry

110.9

111.2

110.0

111.1

147.5

148.0

148.4

148.8

75.2

75.1

74.1

74.7

2 Manufacturing
3
Manufacturing (NAICS)

111.7
112.3

112.0
112.3

111.1
111.3

112.0
112.5

152.0
153.5

152.4
154.0

152.8
154.5

153.2
154.9

73.5
73.2

73.5
72.9

72.7
72.0

73.2
72.6

4
5

Durable manufacturing
Primary metal

123.9
87.0

124.3
86.6

123.1
82.9

125.5
83.1

175.7
112.8

176.9
112.8

178.0
112.9

179.1
113.0

70.5
77.1

70.3
76.8

69.1
73.4

70.1
73.5

6
7
8
9

Fabricated metal products
Machinery
Computer and electronic products
Electrical equipment, appliances,
and components
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
Nondurable manufacturing
Food, beverage, and tobacco products . . . .
Textile and product mills

96.9
86.1
245.9

95.6
86.0
253.1

93.5
86.0
257.7

93.8
86.5
271.1

139.0
129.0
390.0

139.1
128.7
400.5

139.3
128.3
409.7

139.5
128.0
417.9

69.7
66.7
63.1

68.8
66.8
63.2

67.2
67.0
62.9

67.3
67.6
64.9

94.6
116.2

93.7
116.4

92.9
113.0

93.2
118.0

127.7
143.0

127.4
143.9

127.1
145.0

126.8
146.2

74.1
81.3

73.5
80.9

73.1
77.9

73.5
80.7

95.1
97.9
98.4
82.6

94.4
97.5
98.3
80.1

94.0
96.7
98.0
77.8

94.2
96.6
97.6
75.8

147.8
127.6
127.2
110.2

147.8
127.4
127.0
109.5

147.8
127.1
126.7
108.6

147.8
126.9
126.4
107.7

64.3
76.7
77.3
74.9

63.8
76.5
77.4
73.2

63.6
76.1
77.3
71.7

63.8
76.2
77.2
70.4

94.6
100.5
104.4
104.0
101.6

92.8
101.1
104.9
103.7
105.6

92.7
100.4
104.5
102.6
106.4

91.9
101.1
105.5
103.2
104.9

111.4
114.1
143.2
130.7
128.9

111.0
114.3
143.6
130.3
128.3

110.6
114.7
144.0
129.6
127.8

110.3
115.1
144.4
128.9
127.4

84.9
88.1
72.9
79.5
78.9

83.6
88.4
73.1
79.6
82.3

83.8
87.6
72.6
79.1
83.2

83.3
87.8
73.0
80.1
82.3

20 Mining
21 Electric and gas utilities

93.3
113.0

93.3
113.1

93.1
109.2

93.5
111.9

110.3
129.5

110.1
131.2

110.0
132.6

109.8
133.9

84.6
87.2

84.7
86.3

84.7
82.4

85.1
83.5

MEMOS
22 Computers, communications equipment, and
semiconductors

331.0

341.9

353.6

377.5

536.2

554.2

570.2

584.8

61.7

61.7

62.0

64.5

23 Total excluding computers, communications
equipment, and semiconductors

100.1

100.2

98.9

99.6

131.3

131.3

131.4

131.4

76.3

76.3

75.3

75.7

99.1

99.1

98.0

98.5

132.8

132.8

132.7

132.6

74.6

74.7

73.9

74.3

10
11
12
13
14
15
16
17
18
19

Paper
Petroleum and coal products
Chemical
Plastics and rubber products
Other manufacturing (non-NAICS)

24 Manufacturing excluding computers,
communications equipment, and
semiconductors




Selected Measures
2.12

A41

OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1 —Continued
Seasonally adjusted
1973

1975

Previous cycle 3

High

Low

High

Latest cycle 4

2002

2003

series
Low

High

Low

Sept.

Apr.

May

June'

July'

Aug.'

Sept.P

Capacity utilization rate (percent) 2
74.1 r

74.0

74.5

74.6

74.9

68.7
68.0

85.6
85.5

77.2
77.0

74.2
73.9

72.7
72. l r

72.6'
llff

72.7
72.0

73.0
72.5

73.0
72.4

73.5
73.0

89.0
100.8

69.6
69.0

86.9
91.1

63.2
47.2

84.5
95.3

73.4
75.2

70.8
76.9

69. l r
74.2 r

69.0'
72.8'

69.3
73.3

69.8
73.4

69.8
73.0

70.7
74.2

91.8
94.3

70.3
74.4

83.3
93.1

62.0
58.4

80.3
84.6

71.1
72.8

70.1
67.2

67.5'
66.5'

(>1.0f
61.2'

67.0
67.3

67.6
67.0

66.8
67.6

67.4
68.1

86.9

66.7

89.5

77.3

81.1

76.3

63.1

62.6'

(tiff

63.1

64.2

65.2

65.2

99.2
95.7

68.5
55.6

91.9
96.3

64.5
45.3

87.4
89.7

75.0
56.5

73.3
82.1

73.0'
78.2'

72.7'
77.2'

73.7
78.3

73.2
80.0

73.4
78.6

74.0
83.5

74.9
87.5

65.9
72.4

84.2
85.7

69.6
75.6

88.9
87.0

81.9
81.8

65.2
77.9

63.4 r
76.2'

63.8'
76.1'

63.6
75.8

63.4
76.2

64.0
76.1

63.9
76.2

85.9
89.8

77.9
62.7

84.3
90.2

80.4
72.4

85.5
91.4

81.3
77.2

79.8
75.1

77.2'
72.1'

77.3'
71.6'

77.4
71.3

77.7
71.1

77.0
70.5

76.8
69.7

97.3
93.2
84.8
96.4
85.5

74.4
81.0
68.8
61.6
75.0

95.4
92.3
83.1
89.9
88.2

81.3
71.2
68.1
70.5
85.7

93.7
88.9
85.6
91.3
90.7

85.2
82.5
80.8
77.2
79.1

84.7
87.0
74.2
80.2
79.3

83.2'
87.8'
73.4'
78.7'
82.8'

83.8 r
88.6'
72.5'
79.4'
83^

84.3
86.3
71.8
79.2
83.8

84.3
87.0
72.4
79.6
82.3

82.9
88.4
73.2
80.1
82.5

82.6
87.9
73.5
80.5
82.2

20 Mining
21 Electric and gas utilities

93.6
96.3

87.6
82.7

94.2
88.1

78.6
77.6

85.6
92.8

83.4
84.1

82.7
86.9

84.9'
82.8'

84.3'
83.1'

84.8
81.1

85.0
83.4

84.7
84.6

85.6
82.7

MEMOS
22 Computers, communications
equipment, and semiconductors .

84.4

63.1

89.4

75.4

79.9

74.5

61.8

61.6'

61.9'

62.5

63.6

65.0

65.0

23 Total excluding computers,
communications equipment,
and semiconductors

89.1

74.3

86.7

70.7

85.6

78.8

76.7

75.4'

75.3 r

75.1

75.6

75.6

76.0

24 Manufacturing excluding computers
communications
equipment, and semiconductors .

88.4

71.8

86.3

68.2

86.1

77.3

75.3

73.9

73.8'

73.9

74.2

74.0

74.6

4
5

Durable manufacturing
Primary metal

6
7
8

14

Fabricated metal products . . . .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts
Aerospace and
miscellaneous
transportation equipment.
Nondurable manufacturing
Food, beverage, and tobacco
products
Textile and product mills . . . .

15
16
17
18
19

Paper
Petroleum and coal products . .
Chemical
Plastics and rubber products . .
Other manufacturing (non-NAICS).

9

10
11

12
13

86.6

Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book, and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. The




78.6

r

86.3
86.3

74.0

85.2

74.2 r

71.5
71.3

2 Manufacturing
Manufacturing (NAICS)
3

88.8

70.9

75.7

88.1
88.1

1 Total industry

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 2003. The recent annual revision will be described in an
upcoming issue of the Bulletin.
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. Monthly highs, 1978-80; monthly lows, 1982.
4. Monthly highs, 1988-89; monthly lows, 1990-91.

A42
2.13

Domestic Nonfinancial Statistics • December 2003
INDUSTRIAL PRODUCTION

Indexes and Gross Value 1

Monthly data seasonally adjusted

r
uroup

2002
proportion

2002
2002
avg.
Sept.

r

Oct.'

2003

Nov.

r

Dec.

r

Jan.'

Feb/

Mar/

Apr.'

May'

June'

July'

Aug.'

Sept.P

Index(1997= 100)
MAJOR MARKETS

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

Market groups
Final products and nonindustrial supplies
Consumer goods
Durable
Automotive products
Home electronics
Appliances, furniture, carpeting
Miscellaneous goods
Nondurable
Non-energy
Foods and tobacco
Clothing
Chemical products
Paper products
Energy

100.0

110.9

111.3

111.0

111.2

110.6

111.2

111.6

110.8

110.1

110.0

110.0

110.8

111.0

111.5

58.9
31.1
8.1
4.0
0.3
1.4
2.3
23.0
18.6
10.4
1.0
4.6
2.1
4.4

107.9
106.8
115.7
124.1
148.4
110.8
100.3
103.4
102.0
100.7
70.9
115.6
103.9
110.0

108.2
107.3
117.0
127.1
150.6
109.7
100.6
103.6
102.6
101.2
72.1
116.3
104.7
108.6

108.0
106.7
115.9
124.9
151.2
109.0
100.7
103.2
101.6
99.8
70.3
115.5
105.5
110.8

107.8
106.6
118.8
129.5
163.9
110.8
100.8
102.1
99.7
96.9
71.1
114.7
104.6
113.5

107.3
105.6
116.8
124.9
166.2
111.1
100.9
101.5
98.8
96.0
69.4
113.9
102.8
114.3

108.1
106.6
119.4
129.5
184.7
111.0
100.3
101.9
100.1
97.6
68.0
114.6
106.3
110.7

108.6
107.0
117.2
127.1
167.2
110.4
99.2
103.2
100.2
97.1
66.6
115.3
108.5
117.6

107.9
106.3
116.4
125.7
170.8
109.8
98.6
102.6
100.6
97.6
65.7
115.7
109.6
112.1

106.9
105.3
115.5
124.4
172.7
110.0
97.5
101.4
100.1
96.9
64.0
116.3
108.6
108.5

107.1
105.5
115.3
123.5
168.8
111.7
97.5
101.8
100.0
97.1
64.1
115.6
109.0
110.4

106.8
105.0
116.2
125.7
169.4
110.8
97.7
100.9
99.8
97.1
62.2
114.4
110.2
107.1

107.5
105.8
118.2
129.1
170.7
112.2
97.8
101.3
99.6
97.3
61.6
114.4
108.4
109.8

107.8
105.9
117.3
127.3
176.6
111.9
97.5
101.7
99.4
96.3
59.7
116.6
108.8
112.3

108.1
106.2
120.6
135.1
176.4
110.6
97.1
101.1
99.1
95.8
59.7
116.5
108.4
110.5

16
17
18
19
20

Business equipment
Transit
Information processing
Industrial and other
Defense and space equipment

10.0
1.8
3.2
5.1
1.9

109.5
84.5
159.6
90.5
105.7

109.3
82.1
160.7
90.6
107.2

108.8
80.4
161.5
90.2
107.9

109.6
80.1
164.3
90.5
107.1

109.2
77.9
167.0
89.7
109.7

109.8
78.1
169.0
89.8
110.3

110.6
76.7
172.1
90.6
111.0

110.0
76.2
172.3
89.8
111.0

108.7
75.0
170.0
88.9
110.3

108.6
74.3
170.8
88.8
111.8

109.0
74.0
170.9
89.4
111.8

109.3
73.9
172.5
89.5
112.1

110.0
74.0
174.8
89.8
112.8

110.8
75.9
175.1
90.2
113.3

21
22

Construction supplies
Business supplies

4.3
11.2

103.1
110.7

103.4
111.1

103.2
111.7

102.8
111.0

102.1
110.9

102.7
111.8

101.9
112.6

101.2
111.9

100.6
111.1

100.8
111.0

100.8
110.6

101.5
111.5

101.9
111.8

102.2
111.5

23 Materials
24
Non-energy
25
Durable
26
Consumer parts
27
Equipment parts
Other
28
29
Nondurable
30
Textile
Paper
31
32
Chemical
Energy
33

41.1
30.5
19.2
4.0
6.8
8.4
11.3
0.8
2.7
4.2
10.6

115.1
118.9
132.5
105.9
199.4
96.9
96.6
78.2
92.7
100.1
100.5

115.7
120.0
134.1
106.7
203.8
97.5
96.9
77.8
93.3
100.5
99.7

115.3
119.5
134.0
106.3
203.2
97.7
96.0
77.0
93.1
98.9
99.8

115.9
119.8
134.3
108.8
203.5
96.9
96.3
77.4
93.8
99.2
100.9

115.3
119.0
133.0
106.1
203.0
96.1
96.2
75.7
93.1
99.6
101.0

115.5
119.4
134.0
108.8
203.9
96.3
95.7
74.4
91.5
99.5
100.6

115.8
119.3
133.7
107.1
205.2
96.0
96.0
74.3
91.3
100.1
101.7

114.7
118.7
132.7
106.0
205.1
94.9
95.9
73.2
91.8
99.6
99.8

114.5
118.3
132.2
104.8
206.0
94.1
95.5
71.8
90.6
100.2
100.2

114.1
117.9
132.1
103.9
207.9
93.8
94.8
70.4
90.5
98.1
99.6

114.4
118.3
133.1
105.0
210.5
94.0
94.5
69.9
90.7
97.0
99.6

115.4
119.2
134.6
105.9
214.2
94.6
94.8
67.8
90.9
98.5
100.9

115.5
119.3
134.9
105.1
217.1
94.3
94.5
67.0
89.2
99.3
101.0

116.5
120.6
136.8
109.4
219.4
94.8
95.1
67.4
89.6
100.7
101.1

94.8
93.3

100.5
110.6

100.7
110.9

100.3
110.8

100.3
110.6

99.8
110.3

100.3
110.6

100.5
111.3

99.7
110.5

99.0
109.9

98.9
109.9

98.7
109.7

99.4
110.4

99.4
110.7

99.9
110.8

SPECIAL AGGREGATES

34 Total excluding computers, communication
equipment, and semiconductors
35 Total excluding motor vehicles and parts

Gross value (billions of 1996 dollars, annual rates)
36 Final products and nonindustrial
supplies

58.9

2,726.7 2,738.9 2,728.0 2,741.3 2,723.8 2,742.2 2,749.6 2,730.1 2,704.8 2,708.8 2,700.9 2,729.6 2,734.4 2,752.1

37 Final products
38
Consumer goods
39
Equipment total

43.4
31.1
12.3

2,054.0 2,064.4 2,050.9 2,068.2 2,053.0 2,066.7 2,072.7 2,058.7 2,038.0 2,041.0 2,037.6 2,059.6 2,061.1 2,080.3
1,398.9 1,406.1 1,396.4 1,409.5 1,397.2 1,407.8 1,410.6 1,400.6 1,386.5 1,388.5 1,383.9 1,401.2 1,399.2 1,411.4
649.4
652.5
648.8
652.5
650.2
652.9
656.7
652.8
646.3
647.4
649.6
653.2
657.9
665.4

40 Nonindustrial supplies

15.5




672.6

674.4

677.0

673.0

670.8

675.4

676.8

671.3

666.8

667.7

663.3

669.9

673.3

671.7

Selected Measures
2.13

INDUSTRIAL PRODUCTION

A43

Indexes and Gross Value 1 —Continued

Monthly data seasonally adjusted

Group

NAICS
code 2

2002
propor-

2002

2002
avg.
Sept.'

Oct.'

Nov.'

Apr.'

Dec

May'

June'

July'

Aug.'

Sept

Index (1997=100)

INDUSTRY GROUPS

83.5
78.4

111.8
112.5

112.5
113.1

111.9
112.4

111.9
112.6

111.3
111.9

112.0
112.6

112.1
112.4

111.8
112.0

111.1
111.3

111.0
111.2

111.2
111.4

111.8
112.2

111.8
112.2

112.6
113.1

321

42.6
1.4

122.9
100.6

123.8
99.5

123.5
100.1

124.5
98.4

123.6
97.5

124.8
98.5

124.5
98.4

123.6
97.0

122.8
97.1

122.8
97.0

123.6
97.7

124.8
99.6

124.9
99.3

126.8
99.0

327
331
332
333

2.3
2.2
5.9
5.2

99.9
86.5
97.4
86.8

101.4
86.7
97.4
86.8

101.1
87.9
97.7
86.1

100.9
88.8
96.5
86.5

101.2
84.3
96.6
85.6

101.4
88.3
96.2
85.2

99.8
88.0
95.7
86.5

100.3
83.5
95.0
86.3

99.9
83.8
94.0
85.4

99.3
82.2
93.2
86.2

100.0
82.7
93.3
86.3

100.8
82.9
94.2
85.9

101.2
82.5
93.2
86.5

100.9
83.9
94.1
87.1

334

8.1

234.7

241.2

242.4

246.5

248.9

251.1

253.6

254.6

254.6

258.0

260.5

266.7

272.4

274.2

335
3361-3

2.3
6.7

96.4
114.5

93.8
117.0

94.1
115.1

94.8
118.9

94.8
114.6

93.5
118.7

94.6
116.0

93.0
114.4

92.8
113.0

92.4
112.0

93.6
113.8

92.9
116.6

93.1
115.0

93.7
122.5

3364-9

3.6

97.5

96.4

95.7

94.6

94.8

94.7

94.1

94.3

93.7

94.2

94.0

93.8

94.5

94.4

337
339

1.7
3.2

103.4
116.0

104.1
115.9

103.1
116.0

103.8
116.8

102.0
119.0

103.9
119.1

103.1
118.9

101.5
118.8

101.0
117.1

100.8
116.6

100.3
117.2

101.2
116.6

100.6
115.5

100.5
115.8

41 Manufacturing
42
Manufacturing (NAICS)
43
44
45
46
47
48
49
50

51
52

53
54
55
56
57
58
59
60
61
62
63

64

Durable manufacturing
Wood products
Nonmetallic mineral
products
Primary metal
Fabricated metal products .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts . .
Aerospace and
miscellaneous
transportation
equipment
Furniture and related
products
Miscellaneous
Nondurable manufacturing . .
Food, beverage, and
tobacco products . . . .
Textile and product mills . .
Apparel and leather
Paper
Printing and support
Petroleum and coal
products
Chemical
Plastics and rubber
products
Other manufacturing
(non-NAICS)

65 Mining
66 Utilities
67
Electric
68
Natural gas
69 Manufacturing excluding
computers, communications
equipment, and
semiconductors
70 Manufacturing excluding motor
vehicles and parts

35.8

99.2

99.5

98.5

97.8

97.4

97.5

97.5

97.5

97.0

96.8

96.3

96.7

96.6

96.6

311,2
313,4
315,6
322
323

11.9
1.3
1.1
3.1
2.5

101.3
83.9
70.8
93.5
93.7

101.7
83.2
71.9
94.7
92.9

100.4
82.3
70.3
94.2
92.6

97.7
83.2
71.1
95.3
92.7

97.1
82.3
69.4
94.2
93.0

98.4
79.8
68.1
92.4
92.7

98.0
80.4
66.7
92.5
92.3

98.4
80.1
65.9
93.4
90.3

97.8
78.5
64.2
92.2
90.3

98.0
77.7
64.2
92.7
88.8

98.0
77.2
62.5
93.1
88.8

98.3
76.7
62.0
93.0
89.0

97.3
75.9
60.2
91.5
88.7

97.0
74.9
60.2
91.1
89.5

324
325

2.2
10.0

100.6
105.3

99.3
105.9

97.1
104.7

101.3
104.3

103.0
104.0

100.8
104.5

100.4
105.3

102.1
105.0

100.5
105.6

101.6
104.4

99.1
103.5

100.0
104.5

101.8
105.6

101.4
106.3

326

3.8

104.3

105.1

104.7

103.9

103.4

103.4

103.8

103.9

102.2

103.0

102.5

102.8

103.2

103.5

1133,5111

5.1

102.0

102.5

102.8

101.6

100.5

103.7

106.0

107.0

106.0

106.1

107.0

105.0

105.1

104.6

21
2211,2
2211
2212

6.8
9.8
8.3
1.5

93.0
111.3
113.3
99.9

91.3
114.3
96.3

91.8
113.4
115.5
101.5

93.8
112.8
113.8
106.5

94.2
112.8
114.0
105.2

93.4
112.3
113.9
102.6

93.3
116.4
117.2
110.8

93.1
110.8
112.9
99.4

93.4
109.4
111.9
96.5

92.7
110.2
112.4
98.0

93.2
107.9
109.8
97.5

93.4
111.3
114.1
96.7

93.0
113.3
116.4
97.6

78.2

99.7

100.0

99.4

99.3

98.6

99.3

99.2

98.8

98.1

97.9

98.0

98.4

98.2

98.9

76.8

111.6

112.1

111.6

111.3

111.0

111.5

111.8

111.6

110.9

110.9

110.9

111.4

111.5

111.8

111.6

Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book, and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.




94.0
111.0

113.7
97.0

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 2003. The recent annual revision will be described in an upcoming
issue of the Bulletin.
2. North American Industry Classification System.

A44
3.10

International Statistics • December 2003
U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted1
2002
Item credits or debits

2000

1 Balance on current account
2
3
4
5
6
7
8
9
10

-411,458
-375,384
1,070,054
-1,445,438
19,605
24,191
94,929
-70,738
-4,586
-55,679

Balance on goods and services
Exports
Imports
Income, net
Investment, net
Direct
Portfolio
Compensation of employees
Unilateral current transfers, net

11 Change in U.S. government assets other than official
reserve assets, net (increase, - )

2003

2002

2001

-393,745
-357,819
1,007,580
-1,365.399
10,689
15,701
106,485
-90,784
-5,012
-46.615

-480,861
^118,038
974,107
-1,392,145
-3,970
1,271
93,475
-92,204
-5,241
-58,853

Q2

Q3

Q4

Ql

Q2P

-122,827
-104,888
243,696
-348,584
-4,458
-3,106
21,410
-24,516
-1,352
-13,481

-122,724
-106,980
247,815
-354,795
-1,747
-481
21,914
-22,395
-1,266
-13,997

-128,586
-116,116
246,151
-362,267
2,966
4,306
26,225
-21,919
-1,340
-15,436

-138,707
-121,629
247,377
-369,006
191
1,567
22,077
-20,510
-1,376
-17,269

-138,671
-123,408
247,991
-371,399
1,679
2,984
22,823
-19,839
-1,305
-16,942

-32

42

-27

-180

-70

-323

-3,681
0

-1,843

^175
-2,632
-574

-107
-1,607
-129

-1,416
0
-132
-1,136
-148

-812
0
-127
-541
-144

83
0
897
-644
-170

-170
0
-102
86
-154

-344,542
-134,945
-4,997
-84,637
-119,963

-175,272
-21,357
-31,880
15,801
-137,836

-126,766
-69,254
-16,210
-5,843
-35,459

31,155
52,999
-11,862
21,641
-31,623

-43,910
-4,954
-1,922
-5,364
-31,670

-101,344
-27,795
-11,998
-27,146
-34,405

-106,172
-60,603
-22,789
9,240
-32,020

37,724
-10,233
40,909
-1,825
5,746
3,127

5,104
10,745
20,920
-2,309
-29,978
5,726

94,860
43,144
30,377
137
17,594
3,608

47,552
15,138
6,568
365
24,575
906

8,992
1,415
10,885
464
-4,607
835

32,210
27,630
5,628
-95
-2,094
1,141

40,978
22,288
9,480
—437
8,321
1,326

57,580
33,232
3,290
-32
20,385
705

28 Change in foreign private assets in United States (increase, +)
29
U.S. bank-reported liabilities4
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
U.S. currency flows
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in United States, net

988,415
116,971
170,672
-76,949
1,129
455,318
321,274

760,427
118,379
67,489
-7,438
23,783
406,633
151,581

612,123
91,126
72,142
96,217
21,513
291,492
39,633

173,690
23,948
24,610
14,218
7,183
104,187
-456

132,486
20,448
-8,102
57,505
2,556
45,880
14,199

165,238
54,176
8,863
12,705
7,249
66,964
15,281

201,026
16,723
74,848
14,568
4,927
55,574
34,386

197,693
33,245
3,189
61,139
1,458
86,525
12,137

35 Capital account transactions, net 5
36 Discrepancy
37
Due to seasonal adjustment
38
Before seasonal adjustment

-799
-44,084

-1,062
-20,785

-1,285
-45,852

-44.084

-20,785

-45,852

-286
30,438
2,091
28,347

-364
-48,102
-12,409
-35,693

-358
-23,602
1,744
-25,346

-388
-1,578
9,479
-11,057

-325
-9,612
702
-10,314

-941

12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16
Foreign currencies

-486

-290
0
-722
2,308
-1,876

-4,911
0
-630
-3,600
-681

-568.567
-148,657
-138,790
-121,908
-159,212

22 Change in foreign official assets in United States (increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities2
26
Other U.S. liabilities reported by U.S. banks 2
27
Other foreign official assets3

17 Change in U.S. private assets abroad (increase, - )
18
Bank-reported claims2
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net

0

MEMO

Changes in official assets
39 U.S. official reserve assets (increase, - )
40 Foreign official assets in United States, excluding line 25
(increase, +)

-290

-4,911

-3,681

-1,843

-1,416

-812

83

-170

39,549

7,413

94,723

47,187

8,528

32,305

41,415

57,612

41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)

12,000

-1,725

-8,132

838

-1,289

851

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.

1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-41.
2. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
3. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
4. Reporting banks included all types of depository institutions as well as some brokers
and dealers.

3.12

U.S. RESERVE ASSETS
Millions of dollars, end of period
2003
Asset

2000

2001

2002
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct. p

1 Total

67,647

68,654

79,006

80,049

80,405

82,287

81,660

80,620

80,422

84,431

84,150

2 Gold stock1
3 Special drawing rights2-3
4 Reserve position in International Monetary
Fund 2
5 Foreign currencies 4

11,046
10,539

11.045
10,774

11,043
12,166

11,043
11,392

11,043
11,476

11,044
11,880

11,044
11,720

11,043
11,646

11,043
11,619

11,043
12,062

11,043
12,079

14,824
31,238

17,854
28,981

21,979
33,818

22,858
34,756

22,738
35,148

23,214
36,149

23,210
35,686

22,746
35,185

22,463
35,297

24,067
37,259

23,595
37,433

1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.




SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.

Summary Statistics
3.13

A45

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
2003
Asset

2000

2001

2002
Mar.

June

July

Aug.

Sept.'

Oct. p

61

136

254

313

79

898

318

81

82c

155

594,094
9,451

592,630
9,099

678,106
9,045

710,955
9,045

702,041
9,040

727,142
9,031

747,089
9,004

743,308
9,004

754,469
8,977

772,222°
8,971

788,734
8,971

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.

3.15

May

215

1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold 3

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.

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
2003
Item

1 Total
2
3
4
5
6

1

By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities5
By area
Europe'
Canada
Latin America and Caribbean

7
8
9
10
11 Africa
12 Other countries

2001

2002'
Mar.'

Apr.'

May'

June'

July'

Aug.P

984,713

1,078,908

1,108,621

1,117,862

1,116,151

1,167,826

1,172,851

1,181,513

1,190,755

120,571
161,719

144,478
190,372

152,065
196,368

149,795
206,043

150,983
200,352

175,052
210,065

167,423
209,957

167,540
205,807

168,089
214,185

454,306
3,411
244,706

464,415
2,769
276,874

469,440
2,803
287,945

471,451
2,821
287,752

471,085
2,839
290,892

486,334
2,857
293,518

500,804
2,876
291,791

513,142
2,894
292,130

512,095
2,913
293,473

243,307
13,440
71,103
632,466
15,167
9,228

271,168
11,120
63,321
704,598
15,338
13,361

281,418
9,837
63,237
725,568
15,939
12,620

278,555
10,154
62.988
740,110
15,215
10,838

275,313
9,746
62,859
739,764
15,834
12,633

290,588
9,942
65.311
774,704
15,656
11,623

279,053
9,998
71,055
781,904
15,829
15,010

279,875
9,791
72,976
789,049
15,788
14,032

277,132
10,412
72,989
800,776
15,712
13,732

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 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity
issue; Argentina, beginning April 1993, 30-year maturity issue.

3.16

Feb.'

LIABILITIES TO, A N D CLAIMS ON, FOREIGNERS

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
Treasury by banks (including Federal Reserve Banks) and securities dealers in the United
States, and in periodic benchmark surveys of foreign portfolio investment in the United
States.

Reported by Banks in the United States 1

Payable in Foreign Currencies
Millions of dollars, end of period
2002
Item

1999

2000

2003

2001
Sept.

Dec.

Mar.

June

1 Banks' own liabilities
2
Deposits
3
Other liabilities

88,537
n.a.
n.a.

77,779
n.a.
n.a.

79,363
n.a.
n.a.

81,719
n.a.
n.a.

80,543
n.a.
n.a.

88,566
50,582
37,984

74,441
43,505
30,936

4 Banks' own claims
5
Deposits
6
Other claims

67,365
34,426
32,939

56,912
23,315
33,597

74,640
44,094
30,546

82,647
47,779
34,868

71,724
34,287
37,437

81,239
36,710
44,529

90,927
42,129
48,798

7 Claims of banks' domestic customers 2
8
Deposits
9
Other claims

20,826
n.a.
n.a.

24,411
n.a.
n.a.

17,631
n.a.
n.a.

20,475
n.a.
n.a.

35,923
n.a.
n.a.

27,706
5,065
22,641

33,984
4,742
29,242

1. Data on claims exclude foreign currencies held by U.S. monetary authorities.




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.

A46
3.17

International Statistics • December 2003
LIABILITIES TO FOREIGNERS

Reported by Banks in the United States 1

Payable in U.S. dollars
Millions of dollars, end of period
2003

Item

2000

2002'

2001

Feb.'

Mar.'

Apr.'

May'

June'

July'

Aug.P

BY HOLDER AND TYPE OF LIABILITY
1

Total, all foreigners

1,511,410

1,630,417

1,975,993

2,073,501

2,138,944

2,194,839

2,215,245

2,208,494

2,273,809

2,251,386

2

Banks' own liabilities
By type of liability
Deposits 2
Other
Of which: repurchase agreements 3
Banks' custody liabilities4
By type of liability
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Of which: negotiable time
certificates of deposit held in custody
for foreigners
Of which: short-term agency securities7
Other

1,077,636

1,174,976

1,400,467

1,491,269

1,558,708

1,613,567

1,613,181

1,600,569

1,679,131

1,647,633

221,248
171,401
0
433,774

188,005
194,680
151,071
455,441

175,231
246,623
190,134
575,526

793,940
697,329
306,051
582,232

813,917
744,791
339,673
580,236

829,641
783,926
378,842
581,272

812,890
800.291
390,974
602,064

853,304
747,265
361,754
607,925

867,154
811,977
410,221
594,678

833,339
814,294
412,308
603,753

3
4
5
6
7
8
9

10
11

177,846

186,115

235,316

238,514

249,925

244,246

252,646

251,684

249,145

257,395

145,840

139,807

189,382

194,437

190,523

193,306

207,493

209,033

204,911

203,057

34,217
0
110,088

20,440
59,781
129,519

37,701
74,417
150,828

41,118
76,846
149,281

40,235
75,863
139,788

40,918
76,645
143,720

44,007
84,830
141,925

43,221
83,423
147,208

43,784
80,667
140,622

43,455
80,943
143,301

12,543
12,140
6,287
5,853
403
252

10,830
10,169
3,791
6,378
661
600

13,467
12,362
5,769
6,593
1,105
1,089

12,485
11,839
4,244
7,595
646
621

10,311
10,265
3,574
6,691
46
4

10,587
10,534
4,670
5,864
53
33

9,666
9,650
3,901
5,749
16
3

11,961
11,858
4,704
7,154
103
13

15,127
15,079
4,778
10,301
48
13

11,513
11,434
4,690
6,744
79
11

149
2

61
0

16
0

25
0

30
12

20
0

13
0

70
20

35
0

68
0

297,603
96,989
39,525
57,464

282,290
80,970
21,987
58,983

334,850
93,884
20,733
73,151

348.433
100,285
25,762
74,523

355,838
95,918
22,532
73,386

351,335
95,449
24,026
71,423

385,117
111,092
22,586
88,506

377,380
105,022
23,046
81,976

373,347
109,868
22,190
87,678

382,274
108,537
21,366
87,171

200,614
153,010

201,320
161,719

240,966
190,372

248,148
196,368

259,920
206,043

255,886
200,352

274,025
210,065

272,358
209,957

263,479
205,807

273,737
214,185

47,366
238

38,531
1,070

50.530
64

51,258
522

52,992
885

55,380
154

63,296
664

57,321
5,080

55,456
2,216

56,905
2,647

Banks 10
Banks' own liabilities
Deposits 2
Other
Banks' custody liabilities4
U.S. Treasury bills and certificates5
Other negotiable and readily
transferable instruments 6
Other

972,932
821,306
82,426
53,893
151,626
16,023

1,052,626
914,034
68,218
53,525
138,592
11,541

1,302,447
1,093,055
56,020
58,422
209,392
25,031

1,253,696
1,048,089
654,965
393,124
205,607
21,278

1,288,406
1,094,707
678,722
415,985
193,699
23,535

1,330,054
1,131,109
690,506
440,603
198,945
23,103

1,320,142
1,119,846
677,685
442,161
200,296
20,509

1,331,776
1,125,280
712,723
412,557
206,496
20,295

1,374,806
1,170,282
726,959
443,323
204,524
22,486

1,333,574
1,127,908
688,907
439,001
205,666
23,469

36,036
99,567

24,059
102,992

57,562
126,799

60.927
123.402

56,917
113,247

58,086
117,756

64,234
115,553

68,907
117,294

68,296
113,742

66,432
115,765

Other foreigners "
Banks' own liabilities
Deposits2
Other

228,332
147,201

284,671
169,803

325,229
201,166

458,887
331,056

484,389
357,818

502,863
376,475

510,529
383,902

524,025
399,754

94,009
75,794

92,709
108,457

108,969
222,087

109,089
248,729

110,439
266,036

500,320
372,593
108,718

487,377
358,409

93,010
54,191

263,875

112,831
245,578

113,227
270,675

118,376
281,378

81,131
8.561

114,868
12,255

124,063
18,824

127,831
20,247

126,571
20,343

126,388
20,758

127,727
22,069

128,968
21,419

126,627
20,839

124,271
19,730

62,289
10,281

77,156
25,457

81,274
23,965

82,227
25,357

80,584
25,644

79,820
25,810

79,950
25,708

82,735
24,814

81,124
24,664

79,652
24,889

684,987

792,291

978,613

1,010,971

1,050,165

1,106,721

1,096,575

1,095,521

1,156,282

1,123,504

Nonmonetary international and regional organizations8
Banks' own liabilities
Deposits2
Other
Banks' custody liabilities4
U.S. Treasury bills and certificates5
Other negotiable and readily transferable
instruments 6
Other
19

12
13
14
15
16
17
18

20
21
22
23
24
25
26
27
28
29

30
31
32
33
34
35
36
37

38
39
40

41
42
43

Official institutions9
Banks' own liabilities
Deposits 2
Other
Banks' custody liabilities4
U.S. Treasury bills and certificates 5
Other negotiable and readily transferable
instruments 6
Other

Banks' custodial liabilities
U.S. Treasury bills and certificates5
Other negotiable and readily
transferable instruments 6
Other
MEMO

44 Own foreign offices12

1. Reporting banks include all types of depository institutions as well as some banks/
financial holding companies and brokers and dealers. Excludes bonds and notes of maturities
longer than one year. Effective February 2003, coverage is expanded to includc liabilities of
brokers and dealers to affiliated foreign offices.
2. Non-negotiable deposits and brokerage balances.
3. Data available beginning January 2001.
4. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers. Effective February 2003, also includes
loans to U.S. residents in managed foreign offices of U.S. reporting institutions.
5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
6. Principally bankers acceptances, commercial paper, negotiable time certificates of
deposit, and short-term agency securities.
7. Data available beginning January 2001.
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." Includes positions with affiliated banking offices also included in memo line (44) below.
11. As of February 2003, includes positions with affiliated non-banking offices also
included in memo line (44) below.
12. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in the 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 office, and to
foreign branches, agencies, or wholly owned subsidiaries of the head office or parent foreign
bank. Effective February 2003, includes amounts owed to affiliated foreign offices of U.S.
brokers and dealers.

Nonbank-Reported
3.17

LIABILITIES TO FOREIGNERS

Data

Reported by Banks in the United States 1 —Continued

Payable in U.S. dollars
Millions of dollars, end of period
2003
Item

2000

2001

2002 R
Feb.'

Mar.'

Apr.'

May'

June

July'

Aug.p

AREA OR COUNTRY
4 5 T o t a l , all f o r e i g n e r s

1,511,410

1,630,417

1,975,993

2,073,501

2,138,944

2,194,839

2,215,245

2,208,494r

2,273,809

2,251,386

46 Foreign countries

1,498,867

1,619,587

1,962,526

4,122,032

4,257,266

4,368,504

4,411,158

4,393,066r

4,517,364

4,479,746

446,788
2,692
33,399
3,000
1,411
37,833
35,519
2,011
5,072
0
7,047
2,305
2,403
19,018
7,787
6,497
74,635
7,548
167,757
0
276
30,578

520,438
2,922
6,546
3,618
1,446
49,056
22,318
2,307
6,215
16,667
12,363
3,727
4,033
20,800
8,811
3,375
66,382
7,474
204.107
36.024
309
41,938

653,512
2,818
9,536
5,037
1,693
40,399
34,650
2,975
5,568
31,825
10,839
18,879
3,574
23,146
14,038
4,647
132,700
12,131
185,970
47,539
301
65,247

728,613
2,975
6,925
6,684
1,861
38,849
39,683
2,925
5,409
39,372
16,398
10,941
2,901
27,643
15,900
4,004
118,907
11,973
280,855
24,741
337
69,330

749,307
3,074
8,817
6,840
845
40,489
43,682
2,019
5,761
36,334
13,734
14,168
2,802
28,901
13,821
4,611
114,833
10,996
305,481
24,235
332
67,532

732,663
3,079
8,290
5,172
1,007
41,668
42,616
1,397
6,775
37,040
15,235
13,866
2,906
30,641
14,012
6,811
99,747
11,214
305,906
21,528
237
63,516

771,746
3,691
5,974
7,302
2,291
46,808
44.146
1,634
6,275
38,649
16,086
15,479
2,736
35,048
15,786
6,309
112,824
12,253
310,539
23,864
183
63,869

734,382'
4,427
4,572'
5,040
2,159
44,936'
45,255'
2,096
6,760'
37,699'
15,529'
14,987'
2,168
34,316
11,973
5,736'
119,604'
12,540
275,581'
21,740
183
67,081'

785,337
4,330
5,402
2,595
3,315
45,147
51,707
1,965
6,896
37,868
13,242
20,945
2,145
33,505
8,878
4,088
134,124
13,937
316,114
21,640
157
57,337

761,210
5,023
6,519
1,418
3,641
48,421
50,572
1,740
5,840
37,377
13,306
17,884
1,834
31,282
8,634
5,120
118,494
15,598
302,302
23,334
182
62,689

47 Europe
48
Austria
49
Belgium13
50
Denmark
51
Finland
5?
France
53
Germany
Greece
54
55
Italy
56
Luxembourg13
Netherlands
57
Norway
58
59
Portugal
60
Russia
61
Spain
6?
Sweden
63
Switzerland
Turkey
64
65
United Kingdom
C h a n n e l I s l a n d s and Isle of M a n 1 4
66
Yugoslavia15
67
Other Europe and other former U.S.S.R.16
68

30,982

27,240

27,323

30,046

32,318

30,839

33,397

37,456'

38,338

35,224

70 Latin America
Argentina
71
7?
Brazil
73
Chile
Colombia
74
75
Ecuador
76
Guatemala
Mexico
77
78
Panama
79
Peru
80
Uruguay
81
Venezuela
Other Latin America17
82

120,041
19,451
10,852
5,892
4,542
2,112
1,601
32,166
4,240
1,427
3,003
24,730
10,025

118,025
10,704
14,169
4,939
4,695
2,390
1,882
39,871
3,610
1,359
3,172
24,974
6,260

107,051
10,874
10,040
6,064
4,158
2,299
1,379
36,109
3,864
1,363
2,807
21,939
6,155

104,504
10,611
10,977
5,808
4,897
2,247
1,475
34,823
4,172
1,368
2,460
19,702
5,964

105,266
10,711
12,152
5,749
4,458
2,377
1,400
36,172
3,768
1,340
2,752
18,295
6,092

106,979
10,002
11,261
5,098
4,726
2,256
1,530
38,594
3,741
1,382
2,880
19,160
6,349

105,816
9,769
12,693
5,535
4,653
2,296
1,498
34,972
3,725
1,619
2,885
20,153
6,018

107,766'
9,884
16,251'
4,725
4,617
2,217
1,546
33,732'
4,283'
1,512
3,136'
19,778'
6,085

106,750
10,473
15,599
4,589
4,539
2,379
1,399
32,751
4,152
1,533
3,226
20,448
5,662

105,700
9,888
19,966
4,754
4,424
2,393
1,499
28,904
3,954
1,432
3,051
19,902
5,533

83 Caribbean
Bahamas
84
85
Bermuda
86
British West Indies18
C a y m a n Islands18
87
88
Cuba
89
Jamaica
90
Netherlands Antilles
91
Trinidad and Tobago
Other Caribbean17
92

573,337
189,298
9,636
367,197
0
90
794
5,428
894
0

194,744
178,472
10,469
0
439,190
88
1,182
3,264
1,269
12,113

195,115
163,120
24,666
0
622,244
91
829
5,004
1,405
11,674

211,440
165,881
38,572
0
624,922
207
855
4,541
1,384
12,187

223,892
175,743
41,253
0
654,114
91
1,000
4,432
1,373
12,218

212,423
161,247
44,230
0
741,310
91
929
4,606
1,320
12,423

222,685
169,524
45,958
0
689,266
92
837
5,071
1,203
13,162

228,704'
174,221'
43,887'
0
703,750'
93
790
8,309'
1,404
15,799'

210,510
156,239
43,569
0
738,598
93
707
8,941
961
16,614

205,564
155,949
39,531
0
743,399
94
680
8,115
1,195
16,002

93

305,554

290,923

319,307

321,223

326,620

319,474

342,108

337,839'

333,934

343,107

16,531
17,352
26,462
4,530
8,514
8,053
150,415
7,955
2,316
3,117
23,763
36,546

10,486
17,561
26,003
3,676
12,383
7,870
154,887
8,997
1,772
4,743
18,095
24,450

15,483
18,693
33,066
7,951
14,123
7,477
161,487
8,940
1,811
7,605
16,365
26,306

13,698
24,147
35,796
8,844
12,419
10,496
166,524
7,065
1,596
5,035
12,204
23,399

17,616
20,203
32,971
8,683
11,938
12,076
175,184
6,953
1,789
5,289
9,864
24,054

14,968
21,392
34,479
9,279
12,029
10,892
165,973
6,873
1,560
5,741
10,511
25,777

15,609
23,500
33,705
9,394
11,891
10,282
179,813
7,878
1,878
5,293
14,447
28,418

17,511'
20,784'
35,193
7,942
10,478
9,706
175,754'
9,152
1,575
5,534
15,784
28,426'

19,287
20,839
35,799
8,347
8,857
10,030
174,496
9,394
1,980
4,729
13,763
26,413

20,879
21,311
39,543
10,773
9,647
10,122
173,360
12,811
1,491
4,575
13,779
24,816

10,824
2,621
139
1,010
4
4,052
2,998

11,233
2,778
274
711
4
4,377
3,089

12,251
2,655
306
1,114
2
4,370
3,804

14,410
3,624
346
2,405
5
4,552
3,478

12,998
3,549
283
1,806
3
3,987
3,370

13,603
3,607
210
2,018
4
4,146
3,618

13,191
3,536
281
2,172
4
3,701
3,497

13,063
3,295
234
2,028
6
3,581
3,919

12,849
2,966
350
2,067
7
3,577
3,882

12,853
2,966
305
2,178
5
3,362
4,037

113 O t h e r countries
Australia
114
115
N e w Zealand21
116
All other

11,341
10,070
0
1,271

5,681
5,037
232
412

14,049
11,991
1,796
262

13,671
11,254
1,940
477

11,900
9,165
2,175
560

14,538
11,917
2,123
498

14,208
11,603
2,039
566

17,774
14,351
2,959
464

15,752
13,199
2,252
301

16,814
14,631
1,889
294

117 N o n m o n e t a r y i n t e r n a t i o n a l a n d r e g i o n a l o r g a n i z a t i o n s
International22
118
119
Latin American regional23
Other regional24
120

12,543
11,270
740
533

10,830
9,331
480
935

13,467
11,282
507
1,611

12,485
10,617
547
1,216

10,311
8,889
686
633

10,587
9.503
296
614

9,666
8,486
339
693

11,961'
10,906'
373
621

15,127
12,908
1,616
553

11,513
10,005
538
836

69 Canada

China
Mainland
Taiwan
Hong Kong

94
95
96
97
98
99
100
101
10?
103
104
105

Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting c o u n t r i e s "
Other

106
107
108
109
110
111
112

Egypt
Morocco
South Africa
C o n g o (formerly Zaire)
Oil exporting countries20
Other

13. B e f o r e J a n u a r y 2 0 0 1 , d a t a f o r B e l g i u m - L u x e m b o u r g w e r e c o m b i n e d .
14. B e f o r e J a n u a r y 2 0 0 1 , t h e s e d a t a w e r e i n c l u d e d i n d a t a r e p o r t e d f o r t h e U n i t e d
Kingdom.
15. In F e b r u a r y 2 0 0 3 , Y u g o s l a v i a c h a n g e d its n a m e t o S e r b i a a n d M o n t e n e g r o . D a t a f o r
o t h e r entities of the f o r m e r Y u g o s l a v i a r e c o g n i z e d as i n d e p e n d e n t states b y the U n i t e d States
are r e p o r t e d u n d e r " O t h e r E u r o p e . "
16. I n c l u d e s t h e B a n k f o r I n t e r n a t i o n a l S e t t l e m e n t s a n d t h e E u r o p e a n C e n t r a l B a n k .
17. B e f o r e J a n u a r y 2 0 0 1 , d a t a f o r " O t h e r L a t i n A m e r i c a " a n d " O t h e r C a r i b b e a n " w e r e
c o m b i n e d in " O t h e r L a t i n A m e r i c a a n d C a r i b b e a n . "
18. B e g i n n i n g J a n u a r y 2 0 0 1 , d a t a f o r t h e C a y m a n I s l a n d s r e p l a c e d d a t a f o r t h e B r i t i s h
West Indies.




19. C o m p r i s e s B a h r a i n , I r a n , I r a q , K u w a i t , O m a n , Q a t a r , S a u d i A r a b i a , a n d U n i t e d A r a b
Emirates (Trucial States).
20. C o m p r i s e s Algeria, G a b o n , L i b y a , and Nigeria.
21. B e f o r e J a n u a r y 2 0 0 1 , t h e s e d a t a w e r e i n c l u d e d in "All o t h e r . "
22. Principally the International B a n k for R e c o n s t r u c t i o n a n d D e v e l o p m e n t . E x c l u d e s
" h o l d i n g s of d o l l a r s " of the I n t e r n a t i o n a l M o n e t a r y F u n d .
23. Principally the Inter-American D e v e l o p m e n t Bank.
24. Asian, A f r i c a n , M i d d l e Eastern, and E u r o p e a n regional organizations, except the B a n k
f o r I n t e r n a t i o n a l S e t t l e m e n t s , w h i c h is i n c l u d e d in " O t h e r E u r o p e . "

A47

A48
3.18

International Statistics • December 2003
BANKS' OWN CLAIMS ON FOREIGNERS

Reported by Banks in the United States 1

Payable in U.S. dollars
Millions of dollars, end of period
2003
Area or country

2000

2001

2002
Feb.
r

Mar.
r

Apr.
r

1,332,089

June'

May
r

r

July'

Aug.P

1 Total, all foreigners

904,642

1,052,066

l,185,445

1,359,858

1380,877

1,339,061

2 Foreign countries

899,956

1,047,120

l,181,768 r

2,445,470 r

2,606,276 r

2,654,926 r

2,649,540 r

2,708,854

2,754,714

2,672,012

378,115
2,926
5,399
3,272
7,382
40,035
36,834
646
7,629
0
17,043
5,012
1,382
517
2,603
9,226
82,085
3,059
144,938
0
50
8,077

462,418
5,280
6,491
1,105
10,350
60,866
30,044
367
4,205
1,323
16,039
6,236
1,603
594
3,260
12,756
87,350
2,124
201,185
4,478
0
6,762

487,004 r
3,603
6,044
1,109
8,518
47,705
22,481
477
3,753
3,407
23,133
13,885
2,226
877
5,371
15,889
126,958
2,112
176,953'
17,457
0
5,046

522,032'
4,142
6,286
428
9,191
48,395
22,526
295
3,011
4,360
16,031
9,809
2,342
729
3,258
15,458
100,799'
2,069
238,646'
27,785
0
6,472'

542,168'
4,538
7,653
748
9,462
46,458
22,260
314
4,022
3,149
21,169
11,091
1,929
1,107
2,485
16,310
106,937
2,280
238,433'
35,018
0
6,805

540,057'
4,875
8,120
648
11,893
54,726
19,908
234
4,536
4,472
18,128
11,672
2,260
699
2,916
16,860
80,950'
2,441
247,491'
38,641
0
8,586'

570,453'
4,165
4,722
495
8,130
52,852
20,453
214
4,133
6,436
19,769
11,039
2,457
755
2,374
16,184
97,913'
2,531
262,411'
44,454
0
8,966'

588,933
4,339
6,741
1,737
9,191
55,435
22,985
207
6,251
6,214
18,731
15,866
2,406
815
2,117
15,615
103,025
2,196
262,939
44,692
0
7,431

611,942
5,898
6,987
1,314
7,447
56,055
27,264
190
6,101
6,132
20,556
21,058
2,331
863
1,626
14,721
102,683
2,379
274,601
45,857
0
7,879

609,875
6,221
7,399
1,993
7,136
58,406
28,401
214
6,199
5,801
22,903
8,716
2,150
829
1,884
18,753
91,470
3,085
278,546
47,778
0
11,991

3 Europe
4
Austria
5
Belgium 2
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Luxembourg 2
13
Netherlands
14
Norway
Ii
Portugal
16
Russia
17
Spain
18
Sweden
19
Switzerland
20
Turkey
21
United Kingdom
22
Channel Islands and Isle of Man 3
23
Yugoslavia 4
24
Other Europe and other former U.S.S.R.5

l,226,096

l,307,168

1328,450

25 Canada

39,837

54,421

60,521

65,990

57,348

58,995

53,892

50,109

53,733

51,466

26 Latin America
27
Argentina
Brazil
28
29
Chile
30
Colombia
31
Ecuador
32
Guatemala
33
Mexico
34
Panama
35
Peru
36
Uruguay
37
Venezuela
38
Other Latin America 6

76,561
11,519
20,567
5,815
4,370
635
1,244
17,415
2,933
2,807
673
3,518
5,065

69,762
10,763
19,434
5,317
3,602
495
1,495
16,522
3,061
2,185
447
3,077
3,364

56,642
6,783
15,419
5,250
2,614
457
892
15,658
1,915
1,411
255
3,254
2,734

55,547
6,625
15,358
5,290
2,712
434
831
14,994
1,861
1,438
308
3,175
2,521

56,091'
6,153'
15,922'
5,299
2,650
491
970
14,792
1,887
1,400
324
3,301
2,902

54,765
6,082'
15,341
5,342
2,586'
482
841
14,629
1,964
1,448
321'
3,196
2,533

56,185'
5,924'
16,393'
5,301
2,484'
485
799
15,416
1,903
1,493
313
3,127
2,547

55,632
6,005
16,547
.5,276
2,421
479
773
14,640
1,986
1,541
335
3,201
2,428

54,815
5,493
16,620
5,751
2,309
441
770
14,331
1,696
1,479
328
3,052
2,545

55,654
5,341
17,387
5,844
2,409
434
781
14,269
1,793
1,447
416
3,045
2,488

39 Caribbean
40
Bahamas
41
Bermuda
42
British West Indies7
43
Cayman Islands7
44
Cuba
45
Jamaica
Netherlands Antilles
46
47
Trinidad and Tobago
48
Other Caribbean 6

319,403
114,090
9,260
189,289
0
0
355
5,801
608
0

366,319
101,034
7,900
0
245,750
0
418
6,729
931
3,557

475,896'
95,584
9,902
0
359,259'
0
321
6,690
889
3,251

470,012
86,312
17,034
0
354,238
0
349
7,658
966
3,455

524,385
92,186
23,343
0
397,575
0
381
6,751
884
3,265

547,903'
86,032'
21,351
0
429,181
0
376
7,009
848
3,106

521,751
91,506
21,552
0
396,974
0
309
7,104
852
3,454

541,028
96,660
21,734
0
409,954
0
327
7,134
837
4,382

537,759
89,217
23,973
0
411,299
0
377
6,736
796
5,361

498,537
74,036
20,649
0
391,895
0
380
7,204
772
3,596

77,829

85,990

93,551'

101,607

114,350

117,240

115,304

109,509

110,761

111,357

1,606
2,247
6,669
2,178
1,914
2,729
34,974
7,776
1,784
1,381
9,346
5,225

2,073
4,433
10,035
1,348
1,752
4,396
34,136
10,653
2,587
2,499
7,882
4,196

1,057
3,766'
7,258
1,235
1,270
4,660
47,600
11,118
2,137
1,167
7,952
4,331'

1,884
5,703
5,683
1,194
1,064
3,328
56,269
13,938
1,536
707
6,405
3,896

9,419
8,272
5,020
974
1,028
3,110
58,395
13,047
2,040
1,393
7,110
4,542

7,819
5,349
4,788
1,077
997
4,014
63,247
14,841
1,862
1,263
6,871
5,112

4,731
5,689
5,549
1,187
993
3,971
62,399
13,237
1,651
1,658
7,271
6,968

6,988
5,395
7,056
1,375
935
4,333
62,048
7,058
1,502
1,222
6,019
5,578

10,860
6,452
5,070
1,432
970
4,722
54,784
12,988
1,343
1,317
5,551
5,272

11,635
6,150
6,505
1,410
909
4,604
51,966
12,437
1,296
1,601
6,709
6,135

2,094
201
204
309
0
471
909

2,146
416
106
761
0
167
696

1,977
487
53
617
0
222
598

1,992
544
45
577
0
224
602

2,051
558
49
565
0
257
622

1,850
551
42
47 l r
0
215
571'

1,777
446
41
546
0
129
558

1,743
412
43
526
0
218
544

1,565
411
43
381
0
182
548

1,688
369
37
534
0
170
578

69 Other countries
Australia
70
71
New Zealand 10
72
All other

6,117
5,868
0
249

6,064
5,677
349
38

6,177
5,566
569
42

5,555
5,033
507
15

6,745
5,944
705
96

6,653
5,892
640
121

5,408
4,594
668
146

7,473
6,583
794
96

6,782
6,023
641
118

7,429
6,740
587
102

73 Nonmonetary international and regional organizations" . .

4,686

4,946

3,677

3,361

4,030

4,626

3,680

5,431

3,520

3,055

49 Asia
China
50
Mainland
51
Taiwan
52
Hong Kong
53
India
54
Indonesia
Israel
55
56
Japan
57
Korea (South)
58
Philippines
59
Thailand
60
Middle Eastern oil-exporting countries 8
61
Other
62
63
64
65
66
67
68

Egypt
Morocco
South Africa
Congo (formerly Zaire)
Oil-exporting countries'
Other

1. Reporting banks include all types of depository institutions as well as bank/financial
holding companies and brokers and dealers. Effective February 2003, coverage is expanded to
include claims of brokers and dealers on affiliated foreign offices and cross-border brokerage
balances.
2. Before January 2001, combined data reported for Belgium-Luxembourg.
3. Before January 2001, data included in United Kingdom.
4. In February 2003, Yugoslavia changed its name to Serbia and Montenegro. Data for
other entities of the former Yugoslavia recognized as independent states by the United States
are reported under "Other Europe."




5. Includes the Bank for International Settlements and the European Central Bank.
6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as
combined "Other Latin America and Caribbean."
7. Beginning 2001, Cayman Islands replaced British West Indies in the data series.
8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
9. Comprises Algeria, Gabon, Libya, and Nigeria.
10. Before January 2001, included in "All other."
11. Excludes the Bank for International Settlements, which is included in "Other Europe."

Nonbank-Reported
3.19

BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS

Data

Reported by Banks in the United States 1

Payable in U.S. dollars
Millions of dollars, end of period
2003
Feb.
1 Total claims reported by banks

1,095,869

1,259,328

l,403,586 r

2 Banks' own claims on foreigners
3
Foreign official institutions 2
4
Foreign banks3
5
Other foreigners 4

904,642
37,907
725,380
141,355

1,052,066
50,618
844,865
156,583

1,185,445'
52,198
970,357'
162,890

191,227
100,352

207,262
82,566

218,141
80,269

78,147
12,728

114,287
10,409

13i,780
6,092

6 Claims on banks' domestic customers 5
7
Non-negotiable deposits
8
Negotiable CDs
9
Other short-term negotiable instruments6 . .
10
Otherclaims

Mar.'

Apr.'

May'

1,332,089
47,722
987,415
296,952

1,328,450
49,048
977,873
301,529

1,575,053
1,226,096'
39,636'
923,512'
262,948'

1,307,168
48,472
964,810
293,886

June'

July'

Aug/

1,380,877
55,365
1,020,658
304,854

1,339,061
57,353
959,471
322,237

1,656,867

267,885
107,789
83,845
58,025
18,226

1,359,858
43,233
1,005,884
310,741
297,009
121,784
88,511
71,454
15,260

MEMO

11 Non-negotiable deposits 7
12 Negotiable CDs7
13 Other short-term negotiable
instruments 7
14 Otherclaims 7
15 Own foreign offices 8
16 Loans collateralized by repurchase
agreements 9

n.a.
630,137

466,014
2,621

497,269
1,741

463,085
2,198

476,342
771

481,820
1,456

466,628
1,368

n.a.
744,498

n.a.
892,340'

9,810'
766,226'
898,051

13,513
825,020
940,502

13,853
819,226
956,930

13,210
849,957
951,671

15,562
867,183
973,628

11,493
886,108
976,926

12,282
858,783
941,120

137,979

161,585

245,798

287,043

311,728

319,597

310,325

345,043

359,671

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for the quarter ending with the month indicated.
Reporting banks include all types of depository institutions as well as banks/financial
holding companies and brokers and dealers. Effective February 2003, coverage is expanded to
include claims of brokers and dealers on affiliated foreign offices and cross-border balances,
dealers.
2. Prior to February 2003, reflects claims on all foreign public borrowers.
3. Includes positions with affiliated banking offices also included in memo line (15) below.
4. As of February 2003, includes positions with affiliated non-banking offices also included
in memo line (15) below.
5. Assets held by reporting banks in the accounts of their domestic customers. Effective
March 2003, includes balances in off-shore sweep accounts.




447,839'
2,221

6. Primarily bankers acceptances and commercial paper. Prior to February 2003, also
includes negotiable certificates of deposit.
7. Data available beginning February 2003.
8. 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 minority-owned subsidiaries of foreign banks, consists
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.
Effective February 2003, includes amounts due from affiliated foreign offices of U.S. brokers
and dealers.
9. Data available beginning January 2001.

A49

A50
3.22

International Statistics • December 2003
LIABILITIES TO UNAFFILIATED FOREIGNERS
the United States

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
2002
Type of liability, and area or country

1999

2000

Mar.
1 Total

53,020

By type
2 Financial liabilities
3
Short-term negotiable securities'
4 Other liabilities'
Of which:
5
Borrowings'
6
Repurchase agreements'
By currency
1 U.S. dollars
8 Foreign currency 2
y
Canadian dollars
10
Euros
n
United Kingdom pounds sterling
12
Japanese yen
All other currencies
13

14
15
16
17
18
19
20

By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switerzerland
United Kingdom

73,904

2003

2001

66,679

74,887

June
70,431

Sept.
68,225

Dec.

Mar.

June?
r

70,700

39,561
n.a.

r

45,455
21,428 r

42,251
18,242

67,664

73,828

27,980
n.a.

47,419
n.a.

41,034
n.a.

46,408
n.a.

42,826
n.a.

41,311
n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

24,027'

24,009

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.

5,502'
23,276'

3,287
22,397

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

25,246
22,173
n.a.
n.a.
n.a.
n.a.
n.a.

18,763
22,271
n.a.
n.a.
n.a.
n.a.
n.a.

20,454
25,954
n.a.
n.a.
n.a.
n.a.
n.a.

22.050
20,776
n.a.
n.a.
n.a.
n.a.
n.a.

18,913
22,398
n.a.
n.a.
n.a.
n.a.
n.a.

18,844
20,717
n.a.
n.a.
n.a.
n.a.
n.a.

18,698'
26,757'
527
12,337'
7,209
2,880
3,804

17,510
24,741
738
10,019
6,919
2,745
4,320

23,241
31
1,659
1,974
1,996
147
16,521

34,172
147
1,480
2,168
2,016
104
26,362

31,806
154
2,841
2,344
1,954
94
22,852

39,379
119
3,531
2,982
1,946
84
28,694

35,004
120
4,071
2,622
1,935
61
24,338

34,809
232
3,517
2,865
1,915
61
24,303

34,335
144
5,243
2,923
1,825
61
22,531

36,138'
1,164
2,782
3,343
1,797
19
25,878 r

32,639
410
3,376
2,901
1,790
167
22,903

n.a.

9,485

MEMO:

21

Euro area 3

22

Canada

23
24
25
26
2/
28
29
30

7,587

8,798

9,991

10,107

10,369

11,211

10,100

284

411

955

1,067

1,078

583

591

493'

1,012

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies4
Cayman Islands
Mexico
Venezuela

892
1
5
126
492
n.a.
25
0

4,125
6
1,739
148
406
n.a.
26
2

2,858
157
960
35
1,627
n.a.
36
2

1,547
5
836
35
612
n.a.
27
1

1,832
5
626
38
1,000
n.a.
25
5

1,088
0
588
65
377
n.a.
26
1

1,504
23
990
65
365
n.a.
31
1

3,816
334
3,046
127
n.a.
25
29
0

4,495
4
4,244
129

31
32
33

Asia
Japan
Middle Eastern oil-exporting countries 5

3,437
3,142
4

7,965
6,216
12

5,042
3,269
10

4,020
3,299
15

4,498
2,387
14

4,450
2,447
16

2,932
1,832
14

4,302'
2,043
17

3,412
1,909
32

34
35

Africa
Oil-exporting countries 6

28
0

52
0

53
5

122
91

120
91

128
91

131
91

114'
91

112
91

98

694

320

273

294

253

68

592

581

36

Another

7




37
27
0

Nonbank-Reported Data
3.22

LIABILITIES TO UNAFFILIATED FOREIGNERS
the United States—Continued

A51

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
2002
Type of liability, and area or country

1999

2000

2003

2001
Mar.

June

Sept.

Dec.

Mar.

June p

37 Commercial liabilities
38
Trade payables
Advance payments and other liabilities
39

25,040
12,834
n.a.

26,485
14,293
12,192

25,645
11,781
13,864

28,479
15,119
13,360

27,605
14,205
13,400

26,914
13,819
13,095

28,103
14,699
13,404

28,373r
15
14

28,449
15
13

By currency
40 Payable in U.S. dollars
41 Payable in foreign currencies 2
42
Canadian dollars
43
Euros
44
United Kingdom pounds sterling
45
Japanese yen
All other currencies
46

23,722
1,318
n.a.
n.a.
n.a.
n.a.
n.a.

23,685
2,800
n.a.
n.a.
n.a.
n.a.
n.a.

24,162
1,483
n.a.
n.a.
n.a.
n.a.
n.a.

26,715
1,764
n.a.
n.a.
n.a.
n.a.
n.a.

26,004
1,601
n.a.
n.a.
n.a.
n.a.
n.a.

25,621
1,293
n.a.
n.a.
n.a.
n.a.
n.a.

26,243
1,860
n.a.
n.a.
n.a.
n.a.
n.a.

24,813'
3,560
114
1,074
661
242
1,469

25,190
3,259
146
940
668
154
1,351

9,262
140
672
1,131
507
626
3,071

9,629
293
979
1,047
300
502
2,847

9,219
99
734
905
1,163
790
2,279

8,168
105
713
584
236
648
2,747

8,015
94
827
570
312
749
2,551

8,065
134
718
855
506
592
2,317

8,257
141
765
807
590
433
2,649

8,773'
186
873r
n.a.
729'
521'
2,892'

9,853
202
1,027
n.a.
1,317
464
3,304
5,018

47
48
49
50
51
52
53

By area or country
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
MEMO

54

Euro area 3

n.a.

4,518

5,141

3,673

3,718

4,258

4,200

4,359'

55

Canada

1,775

1,933

1,622

1,802

2,027

1,570

1,588

1,721'

1,749

56
57
58
59
60
61
62
63

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies4
Cayman Islands
Mexico
Venezuela

2,310
22
152
145
48
n.a.
887
305

2.381
31
281
114
76
n.a.
841
284

2,727
52
591
290
45
n.a.
899
166

3,515
23
433
277
67
n.a.
1,518
281

2,817
12
422
320
46
n.a.
1,015
204

2,923
14
468
290
47
n.a.
1,070
327

3,073
51
538
253
36
n.a.
1,170
177

3,046'
59
525'
246
n.a.
80
1,095'
143

3,249
11
559
267
n.a.
20
906
456

64
65
66

Asia
Japan
Middle Eastern oil-exporting countries 5

9,886
2,609
2,493

10,983
2,757
2,832

10,517
2,581
2,639

13,116
4,281
3,289

12,866
4,143
3,432

12,462
4,031
3,857

13,382
4,292
3,979

13,119'
4,137
3,546

12,321
3,954
3,062

67
68

Africa
Oil-exporting countries 6

950
499

948
483

836
436

1,000
454

916
349

876
445

827
405

927
423

631
184

69

All other7

881

611

724

878

964

1,018

976

787'

646

11,598'

11,428

MEMO

70

Financial liabilities to foreign affiliates

8

n.a.

n.a.

1. Data available beginning March 2003.
2. Foreign currency detail available beginning March 2003.
3. Comprises Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Portugal, and Spain. As of December 2001, also includes Greece.
4. Beginning March 2003, data for the Cayman Islands replaced data for the British West
Indies.
5. Comprises Bahrain. Iran, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).




n.a.

n.a.

n.a.

n.a.

n.a.

6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Includes nonmonetary international and regional organizations.
8. Data available beginning March 2003. Includes financial liabilities to foreign affiliates
of insurance underwriting subsidiaries of Bank/Financial Holding Companies and other
financial intermediaries. These data are not included in lines 1-6 above.

A52
3.23

International Statistics • December 2003
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
2002
Type of claim, and area or country

1 Total
2
3
4
5
6
7
8

By type
Financial claims
Non-negotiable deposits
Negotiable securities
Of which:
Negotiable CDs'
Other claims
Of which:
Loans'
Repurchase agreements'

By currency
y U.S. dollars
1U Foreign currency 2
11
Canadian dollars
12
Euros
13
United Kingdom pounds sterling
14
Japanese yen
15
All other currencies

16
1/
18
iy
20
21
22

By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switerzerland
United Kingdom

1999

2000

2003

2001
Mar.

June

Sept.

Dec.

Mar.r

June p

76,642

90,157

113,082

115,969

116,608

112,784

102,566

112,472

115,521

40,231
n.a.
n.a.

53,031
23,374
29,657

81,287
29,801
51,486

85,359
41,813
43,546

87,331
42,136
45,195

84,038
38,074
45,964

71,389
27,064
44,325

83,023
45,828
3,767

83,464
49,490
3,197

n.a.
21,665

n.a.
29,657

n.a.
51,486

n.a.
43,568

n.a.
45,188

n.a.
45,959

n.a.
44,064

241
33,428

133
30,777

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

12,674
6,599

15,638
3,010

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

46.157
6,874
n.a.
n.a.
n.a.
n.a.
n.a.

74,471
6,816
n.a.
n.a.
n.a.
n.a.
n.a.

79,722
5,637
n.a.
n.a.
n.a.
n.a.
n.a.

82,353
4,978
n.a.
n.a.
n.a.
n.a.
n.a.

79,307
4,731
n.a.
n.a.
n.a.
n.a.
n.a.

65,070
6,319
n.a.
n.a.
n.a.
n.a.
n.a.

75,944
7,079
605
3,054
2,083
880
457

71,755
11,709
597
2,383
2,560
875
5,294

13,023
529
967
504
1,229
643
7,561

23,136
296
1,206
848
1,396
699
15,900

26,118
625
1,450
1,068
2,138
589
16,510

36,032
751
3,489
4,114
3,253
308
17,982

37,003
797
3.921
3,972
3,995
1,010
16,133

32,139
656
3,854
4,292
4,024
1,135
11,454

29,018
722
3,247
4,245
3,648
383
10,663

34,749
1,494
3,402
6,240
4,355
1,497
11,204

33,386
352
4,445
4,425
3,655
1,178
13,437
17,301

MEMO:

23

Euro area 3

n.a.

5,580

8,626

16,903

18,689

18,542

17,281

20,494

24

Canada

2,553

4,576

6,193

5,471

5,537

5,485

5,013

5,643

5,879

25
26
27
28

18,206
1,593
11
1,476
12,099
n.a.
1,798
48

19,317
1,353
19
1,827
12,596
n.a.
2,448
87

41,201
976
918
2,127
32,965
n.a.
3,075
83

34,979
1,197
611
1,892
27,328
n.a.
2,777
79

37,489
1,332
704
2,036
29,569
n.a.
2,823
60

38,800
715
1,157
2,226
30,837
n.a.
2,871
71

29,612
1,038
724
2,286
21,528
n.a.
2,921
104

32,405
757
387
2,324
n.a.
25,848
1,780
161

37,340
598
699
2,104

30
31
32

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies4
Cayman Islands
Mexico
Venezuela

33
34
35

Asia
Japan
Middle Eastern oil-exporting countries 5

5,457
3,262
23

4,697
1,631
80

6,430
1,604
135

6,414
2,051
79

5,754
1,146
78

6,041
1,481
88

5,358
1,277
79

7,596
1,226
68

5,361
1,246
166

36
37

Africa
Oil-exporting countries 6

286
15

411
57

414
49

390
51

431
64

379
29

395
25

358
26

486
35

38

All other7

706

894

931

2,073

1,117

1,194

1,993

2,272

1,012

2Y




30,734
1,906
169

A53
3.23

CLAIMS ON UNAFFILIATED FOREIGNERS
the United States—Continued

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
2003

2002
Type of claim, and area or country

1999

2000

2001
Mar.

June

Sept.

Dec.

Mar.r

June p

39 Commercial claims
40
Trade receivables
41
Advance payments and other claims

36,411
32,602
3,809

37,126
33,104
4,022

31,795
27,513
4,282

30,610
25,845
4,765

29,277
24,716
4,561

28,746
24,171
4,575

31,177
26,385
4,792

29,449
24,740
4,709

32,057
25,824
6,233

By currency
42 Payable in U.S. dollars
43 Payable in foreign currencies 2
44
Canadian dollars
45
Euros
46
United Kingdom pounds sterling
47
Japanese yen
48
All other currencies

34,204
2,207
n.a.
n.a.
n.a.
n.a.
n.a.

33,401
3,725
n.a.
n.a.
n.a.
n.a.
n.a.

29,393
2,402
n.a.
n.a.
n.a.
n.a.
n.a.

26,864
3,746
n.a.
n.a.
n.a.
n.a.
n.a.

25,361
3,916
n.a.
n.a.
n.a.
n.a.
n.a.

25,441
3,305
n.a.
n.a.
n.a.
n.a.
n.a.

26,481
4,696
n.a.
n.a.
n.a.
n.a.
n.a.

19,806
9,643
1,351
1,803
1,451
545
4,493

21,885
10,172
1,279
1,753
1,549
537
5,054

16,389
316
2,236
1,960
1,429
610
5,827

15,938
452
3,095
1,982
1,729
763
4,502

14,022
268
2,921
1,658
529
611
3,833

12,935
272
2,883
1,198
642
436
3,579

12,314
207
2,828
1,163
832
472
3,387

12,680
254
2,972
1,158
1,089
404
3,236

14,187
269
3,164
1,202
1,490
503
3,727

13,314
228
2,804
1,300
1,135
448
3,718

15,229
240
3,065
1,185
1,376
530
4,480

Euro area3

n.a.

8,819

7,961

7,237

7,106

7,707

8,580

8,105

8,988

57

Canada

2,757

3,502

2,818

2,760

2,752

2,623

2,790

2,564

2,913

58
59
60
61
62
63
64
65

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies4
Cayman Islands
Mexico
Venezuela

5,959
20
390
905
181
n.a.
1,678
439

5,851
37
376
957
137
n.a.
1,507
328

4,859
42
369
954
95
n.a.
1,391
288

4,912
42
422
837
73
n.a.
1,225
312

4,530
28
214
829
26
n.a.
1,283
316

4,324
35
270
862
12
n.a.
1,184
340

4,346
31
287
750
19
n.a.
1,259
288

4,794
61
551
734
n.a.
59
1,095
232

4,619
28
461
781
n.a.
16
1,093
238

66
67
68

Asia
Japan
Middle Eastern oil-exporting countries 5

9,165
2,074
1,573

9,630
2,796
1,024

7,849
2,006
850

7,513
1,975
657

7,309
2,064
889

6,778
2,083
819

7,324
2,341
818

5,996
1,436
617

6,349
1,717
742

69
70

Africa
Oil-exporting countries6

631
171

672
180

645
88

630
109

605
94

637
107

584
95

636
139

432
97

71

Allother 7

1,537

1,533

1,602

1,860

1,767

1,704

1,946

2,145

2,515

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

11,915

14,033

49
50
51
52
53
54
55

By area or country
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
MEMO

56

MEMO

72

Financial claims on foreign affiliates

8

1. Data available beginning March 2003.
2. Foreign currency detail available beginning March 2003.
3. Comprises Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Portugal, and Spain. As of December 2001, also includes Greece.
4. Beginning March 2003, data for the Cayman Islands replaced data for the British West
Indies.
5. Comprises Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).




6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Includes nonmonetary international and regional organizations.
8. Data available beginning March 2003. Includes financial liabilities to foreign affiliates
of insurance underwriting subsidiaries of Bank/Financial Holding Companies and other
financial intermediaries. These data are not included in lines 1-8 above.

A54
3.24

International Statistics • December 2003
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
2003
Transaction, and area or country

2001

2003

2002'
Jan.Aug.

Feb.

Mar.'

Apr.'

May'

June'

July'

Aug. p

273,263
266,670

311,954
301,646

267,033
274,888

253,119
241,534

U.S. corporate securities

STOCKS

1 Foreign purchases
2 Foreign sales

3,051,332
2,934,942

3,209,760
3,159,571

1,993,451
1,970,497

201,408
203,486

236,668
233,828

233,275
228,918

3 Net purchases, or sales ( - )

116,390

50,189

22,954

-2,078

2,840

4,357

6,593

10,308

-7,855

11,585

4 Foreign countries

116,187

50,253

23,004

-2,080

2,860

4360

6,597

10,325

-7,865

11,580

88,099
5,914
8,415
10,919
3,456
38,493
-698
10,984
-5,154
1,789
20,726
6,788
-366
109

32,909
2,127
-129
4,307
2,787
15,172
-255
8,207
-15,419
-1,309
22,676
12,336
-72
3,261

14,885
4,006
1,540
774
-2,733
-2,483
-27
4,505
-807
-450
6,101
-1,638
114
-1,344

1,900
270
-65
-75
-990
1,938
-17
-1,594
-2,253
-21
2,774
1,008
-9
-2,877

1,360
1,816
-780
651
-22
-258
-42
2,376
-1,538
-51
478
-60
-29
264

250
-1,647
-118
-1,090
98
777
46
2,540
1,230
-7
-73
-1,093
68
352

1,526
642
-260
262
-901
-1,181
-30
-435
4,575
29
612
-677
-37
327

8,129
-882
4,452
921
-562
1,928
-65
2,385
-1,198
-68
770
-597
101
206

-5,502
1,555
-830
-31
238
-7,864
-35
-1,440
870
-150
801
228
-35
591

9,408
2,046
-796
-230
130
4,938
118
2,192
611
-110
-548
-1,008
17
10

203

-64

-50

2

-20

-3

-A

-17

10

5

1,942,690
1,556,745

2,548,697
2,171,260

2,404,550
2,092,775

206,552'
183,904'

306,789
262,898

305,997
264,263

381,880
322,432

351,934
322,061

323,913
285,661

299,675
271,168

r

5
6
7
8
9
10
11
12
13
14
15
16
17
18

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands and Isle of Man1
Canada
Latin America and Caribbean
Middle East 2
Other Asia
Japan
Other countries

19 Nonmonetary international and
regional organizations
BONDS'

20 Foreign purchases
21 Foreign sales
22 Net purchases, or sales ( - )

385,945

377,437

311,775

22,648

43,891

41,734

59,448

29,873

38,252

28,507

23 Foreign countries

385,379

377,174

312,229

22,813 r

43,960

41,324

59,684

30,368

37,988

28,526

195,412
5,028
12,362
1,538
5,721
152,772
2,000
4,595
77,019
2,337
106,400
33,687
760
-1,144

167,168
3,762
5,125
-421
8,621
109,913
11,173
-1,040
82,985
2,263
121,440
48,578
860
3,498

142,644
1,314
1,095
1,585
6,672
88,208
19,646
2,029
80,254
1,336
82,958
22,806
1,855
1,153

16,235'
63
930'
6W
800'
6,820'
1,533
193
-6,445'
36'
12,669'
4,499'
80
45

20,539
153
-233
-3
1,034
14,772
4,138
1,169
10,227
-23
10,841
1,364
779
428

25,438
116
-68
-614
1,263
16,951
3,091
-894
1,725
29
15,497
8,540
147
-618

21,452
112
143
317
366
13,911
3,320
1,428
25,924
-277
10,929
3,885
110
118

4,897
-77
-726
74
346
4,991
9
-236
12,430
170
12,311
4,712
241
555

16,969
306
263
1,133
802
10,988
884
344
16,864
510
3,441
-1,268
143
-283

9,396
-437
244
-45
907
3,815
1,251
878
12,910
289
3,832
-2,844
302
919

566

263

-454

-69

410

-236

-495

264

-19

-5,231
116,975
122,206
11,738
209,730
197,992

-4,721
129,487
134,208
3,006
207,675
204,669

-13,402
112,562
125,964
1,021
159,275
158,254

24
25
26
27
28
29
30
31
32
33
34
35
36
37

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands and Isle of Man 1
Canada
Latin America and Caribbean
Middle East2
Other Asia
Japan
Africa
Other countries

38 Nonmonetary international and
regional organizations

-165

Foreign securities
-50,113
1,397,664
1,447,777
30,502
1,160,102
1,129,600

-1,512
1,267,633
1,269,145
28,446
1,372,042
1,343,596

45 Net purchases, or sales (-), of stocks and bonds

-19,611

46 Foreign countries

-19,024

39 Stocks, net purchases, or sales (-)
Foreign purchases
40
41
Foreign sales
42 Bonds, net purchases, or sales ( - )
Foreign purchases
43
44
Foreign sales

47
48
49
50
51
52
53

Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries

54 Nonmonetary international and
regional organizations

-48,811
828,256
877,067
37,023
1,359,556
1,322,533

-4,474
83,683
88,157
4,297'
118,683'
114,386'

-5,363
91,096
96,459
7,332
162,101
154,769

2,073
100,054
97,981
-2,416
135,970
138,386

-10,800
99,777
110,577
14,049
230,256
216,207

26,934

-11,788

-177'

1,969

-343

3,249

6,507

-1,715

-12,381

26,964

-11,744

-273 r

1,988

-256

3,270

6,485

-1,679

-12,361

-12,108
2,943
4,315
-11,869
-20,116
-558
-1,747

14,592
4,854
4,484
2,631
-10,060
-377
780

-1,259
10,384
-13,110
-7,215
-9,093
152
-696

-I^SO1
603
724'
194
-1,447
-34
-110

6,259
-302
-3,353
-971
1,557
27
328

4,409
-600
-7,450
3,456
2,218
-11
-60

1,593
2,106
1,289
-649
1,509
5
-1,074

3,575
651
4,438
-1,456
-4,009
139
-862

-4,379
3,319
-4,767
3,298
-2,776
153
697

-5,977
717
3,985
-10,826
-4,912
-72
-188

-587

-30

-44

96

-19

-87

-21

22

-36

-20

1. Before January 2001, data included in United Kingdom.
2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).




3. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.

Securities Holdings and Transactions
3.25

MARKETABLE U.S. TREASURY BONDS A N D NOTES

A55

Foreign Transactions 1

Millions of dollars; net purchases, or sales (-) during period
2003

2003
Area or country

2001

2002'
Jan.Aug.

Feb.

Mar.'

Apr.'

May'

June'

July'

Aug.p

1 Total estimated

18,514

119,918

192,320

-957 r

26,949

9,792

41,109

44,027

44,686

25,246

2 Foreign countries

19,200

117,907

192,608

-713 r

27,000

9,844

40,793

44,124

45,626

24,849

6
7
8
9
10
11
17
13

Europe
Belgium 2
Germany
Luxembourg 2
Netherlands
Sweden
Switzerland
United Kingdom
Channel Islands and Isle of Man 3
Other Europe and former U.S.S.R
Canada

-20,604
-598
-1,668
462
-6,728
-1,190
1,412
-7,279
-179
-4,836
-1,634

43,678
2,046
-3,931
-1,609
-17,020
2,923
-448
61,606
724
-613
-5,197

69,429
1,299
9,199
1,524
5,424
2,214
4,581
37,709
1,888
5,591
8,056

-4,914 r
-1,379
-211'
358
1,360
190
-1,050
-2,631'
6'
-1,557
-1,871

253
-2,722
-268
83
959
522
1,067
2,845
37
-2,270
1,782

7,739
218
1,148
33
4,425
-240
-784
571
140
2,228
820

6,132
77
3,449
-2
2,216
482
749
-523
550
-866
-1,317

20,629
-82
874
127
659
608
1,700
8,439
973
7,331
4,102

21,886
267
3,124
482
364
-163
1,382
19,554
124
-3,248
4,011

15,954
1,549
2,258
368
^•74
393
1,603
8,358
69
1,830
1,227

14
1S
16
17
18
19
20
21

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other

4,272
290
14,726
-10,744
36,332
16,114
-880
1,714

20,020
-59
20,859
-780
55,656
30,498
841
2,909

25,423
242
23,664
1,517
85,028
60,820
212
4,462

4,680'
97
3,619'
964
2,131'
5,425'
-43
-696

12,476
23
9,847
2,606
11,904
-1,322
-16
601

-6,109
13
^t,809
-1,313
7,178
5,532
127
89

10,705
37
7,234
3,434
25,236
25,097
-59
96

-1,690
9
1,219
-2,918
18,693
11,698
86
2,304

7,971
34
6,011
1,926
9,590
1,444
80
2,088

157
9
-1,257
1,405
7,931
9,667
-47
-373

-686
-290
41

2,011
1,642
-3

-288
-174
-107

-244
-130
-38

-51
-109
-28

-52
85
-37

316
381
-6

-97
177
-3

-940
-1,128
4

397
380
16

19,200
3,474
15,726

117,907
10,109
107,798

192,608
47,680
144,928

-713'
4,832'
-5,545'

27,000
2,011
24,989

9,844
-366
10,210

40,793
15,249
25,544

44,124
14,470
29,654

45,626
12,338
33,288

24,849
-1,047
25,896

865

-3,880
29

-6,960
52

-4,253'
0

-113
0

-2,772
0

-1,018
0

55
1

395
0

271
51

3
4

22 Nonmonetary international and regional organizations
23
International
24
Latin American Caribbean regional
MEMO

25 Foreign countries
26
Official institutions
27
Other foreign
Oil-exporting countries
28 Middle East 4
29 Africa 5

-2

1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
2. Before January 2001, combined data reported for Belgium and Luxembourg.




3. Before January 2001, these data were included in the data reported for the United
Kingdom.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.

A56
3.28

International Statistics • December 2003
FOREIGN EXCHANGE RATES A N D INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR 1
Currency units per U.S. dollar except as noted
2003
May

June

July

Aug.

Sept.

Oct.

Exchange rates
COUNTRY/CURRENCY U N I T

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

Australia/dollar 2
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro 3
Greece/drachma
Hong Kong/dollar
India/rupee
Japan/yen
Malaysia/ringgit
Mexico/peso

13
14
15
16
17
18
19
20
21
21
23
24

New Zealand/dollar2
Norway/krone
Singapore/dollar
South Africa/rand
South Korea/won
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2
Venezuela/bolivar

58.15
1.8301
1.4855
8.2784
8.0953
0.9232
365.92
7.7924
45.00
107.80
3.8000
9.459

51.69
2.3527
1.5487
8.2770
8.3323
0.8952
n.a.
7.7997
47.22
121.57
3.8000
9.337

54.37
2.9213
1.5704
8.2770
7.8862
0.9454
n.a.
7.7997
48.63
125.22
3.8000
9.663

64.68
2.9517
1.3840
8.2769
6.4268
1.1556
n.a.
7.7991
47.11
117.37
3.8000
10.253

66.52
2.8887
1.3525
8.2771
6.3620
1.1674
n.a.
7.7988
46.70
118.33
3.8000
10.503

66.07
2.8833
1.3821
8.2773
6.5425
1.1365
n.a.
7.7990
46.22
118.70
3.8000
10.458

65.18
3.0053
1.3963
8.2770
6.6653
1.1155
n.a.
7.7990
45.96
118.66
3.8000
10.783

66.35
2.9204
1.3634
8.2772
6.5953
1.1267
n.a.
7.7850
45.85
114.80
3.8000
10.923

69.48
2.8628
1.3221
8.2768
6.3449
1.1714
n.a.
7.7427
45.40
109.50
3.8000
11.180

45.68
8.8131
1.7250
6.9468
1,130.90
76.964
9.1735
1.6904
31.260
40.210
151.56
680.52

42.02
8.9964
1.7930
8.6093
1,292.01
89.602
10.3425
1.6891
33.824
44.532
143.96
724.10

46.45
7.9839
1.7908
10.5176
1,250.31
95.773
9.7233
1.5567
34.536
43.019
150.25
1,161.19

57.56
6.8145
1.7357
7.6604
1,201.23
97.231
7.9213
1.3111
34.697
42.217
162.24
1,600.00

58.15
7.0093
1.7351
7.8588
1,194.14
97.236
7.8116
1.3196
34.633
41.675
166.09
1,600.00

58.64
7.2924
1.7551
7.5458
1,181.16
97.153
8.0929
1.3611
34.396
41.808
162.21
1,600.00

58.29
7.4096
1.7533
7.3945
1,178.60
96.975
8.2821
1.3811
34.318
41.656
159.39
1,600.00

58.43
7.2782
1.7466
7.3060
1,165.40
95.284
8.0426
1.3743
33.995
40.483
161.55
1,600.00

60.20
7.0331
1.7345
6.9644
1,169.34
94.560
7.6957
1.3222
33.875
39.761
167.92
1,600.00

Indexes 4
NOMINAL

25 Broad (January 1997-100) 5
26 Major currencies (March 1973= 100)6
27 Other important trading partners (January
1997-100)

119.68
98.31

126.08
104.28

127.19
102.85

118.54
89.67

117.93
88.68

119.11
90.42

120.43
91.48

119.03
89.68

116.66
86.29

130.34

136.36

141.42

142.75

143.07

142.84

144.32

144.06

144.35

104.47r
103.29

110.50'
110.73

110.88'
109.36

103.11'
95.60'

102.83'
94.63'

104.05'
9673'

105.35'
98.01'

104.11'
96.21'

101.86
92.54

114.81r

119.47'

122.29'

122.43'

123.21'

123.16'

124.58'

124.10'

123.96

REAL

28 Broad (March 1973-100) 5
29 Major currencies (March 1973=100) 6
30 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. The euro is reported in place of the individual euro area currencies. By convention, the
rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the
euro rate by using the fixed conversion rates (in currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564

Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds




1,936.27
40.3399
2.20371
200.482
166.386
340.750

I t a l i a n lire

Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
Greek drachmas

4. Starting with the March 2003 Bulletin, revised index values resulting from the periodic
revision of data that underlie the calculated trade weights are reported. For more information
on the indexes of the foreign exchange value of the dollar, see Federal Reserve Bulletin, vol.
84 (October 1998), pp. 811-818.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.

A57

Guide to Special Tables and Statistical Releases
SPECIAL TABLES—Data Published

Irregularly,

with Latest Bulletin

Reference

Title and Date
Assets and liabilities

of commercial

of foreign

Pro forma financial statements for Federal Reserve priced
March 3 1 , 2 0 0 1
June 3 0 , 2 0 0 1
September 3 0 , 2 0 0 1
Residential lending reported under the Home Mortgage
1989-2001
1990-2002

Small loans to businesses
1996-2001
1996-2002
Community development
2001
2002

February
May
August
November

2003
2003
2003
2003

A58
A58
A58
A58

February
May
August
November

2003
2003
2003
2003

A60
A60
A60
A60

February
May
August
November

2003
2003
2003
2003

A66
A66
A66
A66

August 2001
October 2001
January 2002

A76
A64
A64

September 2 0 0 2
September 2003

A58
A58

September 2 0 0 2
September 2003

A67
A67

September 2002
September 2003

A70
A70

September 2002
September 2003

A73
A73

Issue
December 2003

Page
A66

banks

Assets and liabilities of U.S. branches and agencies
September 30, 2002
December 31, 2002
March 31, 2003
June 30, 2003

Disposition of applications
1998-2001
1999-2002

Page

banks

September 30, 2002
December 3 1 , 2 0 0 2
March 3 1 , 2 0 0 3
June 30, 2003
Terms of lending at commercial
November 2002
February 2003
May 2003
August 2003

Issue

for private

mortgage

banks

services

Disclosure

Act

insurance

and farms

lending reported

under the Community

Reinvestment

Act

STATISTICAL RELEASES—A List of Statistical Releases Published by the Federal
is Printed Semiannually in the Bulletin
Schedule of anticipated release dates for periodic releases




Reserve

101

Federal Reserve Bulletin • December 2003

Index to Statistical Tables
References are to pages A3-A56, although the prefix 'A" is omitted in this index.
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21
Domestic finance companies, 30, 31
Federal Reserve Banks, 10
Foreign-related institutions, 20
Automobiles
Consumer credit, 34
Production, 42, 43
BANKERS acceptances, 5, 10
Bankers balances, 15-21 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 29
Rates, 23
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 40, 41
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, 34
Real estate mortgages held, by holder and property, 33
Time and savings deposits, 4
Commercial paper, 22, 23, 30
Condition statements (See Assets and liabilities)
Consumer credit, 34
Corporations
Security issues, 29, 55
Credit unions, 34
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)
EURO, 56
FARM mortgage loans, 33
Federal agency obligations, 5, 9-11, 26, 27
Federal credit agencies, 28
Federal finance
Debt subject to statutory limitation, and types and ownership of
gross debt, 25
Federal Financing Bank, 28
Federal funds, 23
Federal Home Loan Banks, 28
Federal Home Loan Mortgage Corporation, 28, 32, 33
Federal Housing Administration, 28, 32, 33
Federal Land Banks, 33
Federal National Mortgage Association, 28, 32, 33




Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 25
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 28
Finance companies
Assets and liabilities, 30
Business credit, 31
Loans, 34
Paper, 22, 23
Float, 5
Flow of funds, 35-39
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 56
Foreign-related institutions, 20
Foreigners
Claims on, 46, 49-51, 53
Liabilities to, 45-^18, 52, 54, 55
GOLD
Certificate account, 10
Stock, 5, 45
Government National Mortgage Association, 28, 32, 33
INDUSTRIAL production, 42, 43
Insurance companies, 25, 33
Interest rates
Bonds, 23
Consumer credit, 34
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 32
Prime rate, 22
International capital transactions of United States, 44-55
International organizations, 46, 47, 49, 52, 53
Investment companies, issues and assets, 30
Investments (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 10, 11
Financial institutions, 33
LIFE insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21
Federal Reserve Banks, 5-7, 10, 11
Financial institutions, 33
Insured or guaranteed by United States, 32, 33
MANUFACTURING
Capacity utilization, 40, 41
Production, 42, 43
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 43
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, 30
Mutual savings banks (See Thrift institutions)
OPEN market transactions, 9

A59

PRICES
Stock market, 24
Prime rate, 22
Production, 42, 43
REAL estate loans
Banks, 15-21, 33
Terms, yields, and activity, 32
Type and holder and property mortgaged, 33
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4 - 6
Federal Reserve Banks, 10
U.S. reserve assets, 45
Residential mortgage loans, 32, 33
Retail credit and retail sales, 34
SAVING
Flow of funds, 33, 34, 35-39
Savings deposits (See Time and savings deposits)
Savings institutions, 33, 34, 35-39
Securities {See also specific types)
Federal and federally sponsored credit agencies, 28
Foreign transactions, 54
New issues, 29
Prices, 24
Special drawing rights, 5, 10, 44, 45
State and local governments
Holdings of U.S. government securities, 25
New security issues, 29
Rates on securities, 23




Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 29
Prices, 24
Student Loan Marketing Association, 28
THRIFT institutions, 4 (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10
U.S. GOVERNMENT balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10
U.S. government securities
Bank holdings, 15-21, 25
Dealer transactions, positions, and financing, 27
Federal Reserve Bank holdings, 5, 10, 11, 25
Foreign and international holdings and transactions, 10, 25, 55
Open market transactions, 9
Outstanding, by type and holder, 25, 26
Rates, 23
U.S. international transactions, 4 4 - 5 5
Utilities, production, 43
VETERANS Affairs, Department of, 32, 33
WEEKLY reporting banks, 17, 18
YIELDS (See Interest rates)

103

Federal Reserve Bulletin • December 2003

Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN,

Chairman
Vice Chairman

E D W A R D M . GRAMLICH

ROGER W . F E R G U S O N , JR.,

S U S A N SCHMIDT B I E S

OFFICE OF BOARD MEMBERS

DIVISION OF INTERNATIONAL FINANCE

MICHELLE A . SMITH,

Director

KAREN H . JOHNSON,

WINTHROP P. HAMBLEY, Assistant to the Board and
Director for Congressional
Liaison
ROSANNA PI AN ALTO-CAMERON, Special Assistant to the Board
DAVID W. SKIDMORE, Special Assistant to the Board
LARICKE D. BLANCHARD, Special Assistant to the Board
for Congressional
Liaison

LEGAL DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General
Counsel
RICHARD M. ASHTON, Associate General
Counsel
STEPHANIE MARTIN, Associate General
Counsel
KATHLEEN M. O'DAY, Associate General
Counsel
ANN E. MISBACK, Assistant General
Counsel
STEPHEN L. SICILIANO, Assistant General
Counsel
KATHERINE H. WHEATLEY, Assistant General
Counsel
CARY K. WILLIAMS, Assistant General
Counsel
OFFICE

OF THE

JENNIFER J. J O H N S O N ,

SECRETARY
Secretary

ROBERT DEV. FRIERSON, Deputy
Secretary
MARGARET M. SHANKS, Assistant
Secretary

DIVISION OF BANKING SUPERVISION
AND

REGULATION

RICHARD SPILLENKOTHEN,

Director

STEPHEN M. HOFFMAN, JR., Deputy
Director
HERBERT A. BIERN, Senior Associate
Director
MICHAEL G. MARTINSON, Senior Adviser
STEPHEN C. SCHEMERING, Senior Adviser
ROGER T. COLE, Senior Associate
Director
DEBORAH P. BAILEY, Associate
Director
NORAH M. BARGER, Associate
Director
BETSY CROSS, Associate
Director
GERALD A. EDWARDS, JR., Associate
Director
JAMES V. HOUPT, Associate
Director
JACK P. JENNINGS, Associate
Director
MOLLY S. WASSOM, Associate
Director
DAVID M. WRIGHT, Associate
Director
PETER J. PURCELL, Associate Director and
Officer
Chief Technology
HOWARD A. AMER, Deputy Associate
Director
BARBARA J. BOUCHARD, Deputy Associate
Director
ANGELA DESMOND, Deputy Associate
Director
JAMES A. EMBERSIT, Deputy Associate
Director
CHARLES H. HOLM, Deputy Associate
Director
WILLIAM G. SPANIEL, Deputy Associate
Director
JON D. GREENLEE, Assistant
Director
WALT H. MILES, Assistant
Director
WILLIAM F. TREACY, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Project
Director,
National Information
Center




Director

DAVID H. HOWARD, Deputy
Director
THOMAS A. CONNORS, Associate
Director
DALE W. HENDERSON, Senior Adviser
RICHARD T. FREEMAN, Deputy Associate
Director
STEVEN B. KAMIN, Deputy Associate
Director
WILLIAM L. HELKIE, Senior Adviser
JON W. FAUST, Assistant
Director
JOSEPH E. GAGNON, Assistant
Director
W I L L E N E A . JOHNSON,

Adviser

MICHAEL P. LEAHY, Assistant
Director
D. NATHAN SHEETS, Assistant
Director
RALPH W. TRYON, Assistant
Director
DIVISION

OF RESEARCH

D A V I D J. STOCKTON,

AND

STATISTICS

Director

EDWARD C. ETTIN, Deputy
Director
DAVID W. WILCOX, Deputy
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
JOYCE K. ZICKLER, Deputy Associate
Director
J. NELLIE LIANG, Assistant
Director
S. WAYNE PASSMORE, Assistant
Director
DAVID L. REIFSCHNEIDER, Assistant
Director
JANICE SHACK-MARQUEZ, Assistant
Director
WILLIAM L. WASCHER III, Assistant
Director
MARY M. WEST, Assistant
Director
A L I C E PATRICIA W H I T E , Assistant

Director

GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
THOMAS D. SIMPSON, Senior Adviser

DIVISION OF MONETARY AFFAIRS
VINCENT R . REINHART,

Director

BRIAN F. MADIGAN, Deputy
Director
JAMES A. CLOUSE, Deputy Associate
Director
WILLIAM C. WHITESELL, Deputy Associate
Director
CHERYL L. EDWARDS, Assistant
Director
WILLIAM B. ENGLISH, Assistant
Director
RICHARD D. PORTER, Senior Adviser
ATHANASIOS ORPHANIDES,

Adviser

NORMAND R.V. BERNARD, Special Assistant

to the

Board

A61

DONALD L. KOHN

MARK W . OLSON
B E N S. BERNANKE

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS

DOLORES S . SMITH,

LOUISE L . R O S E M A N ,

Director

GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Senior Associate
ADRIENNE D. HURT, Associate
Director
IRENE S H A W N M C N U L T Y , Associate

Director

Director

JAMES A. MICHAELS, Assistant
Director
TONDA E. PRICE, Assistant
Director

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
STEPHEN R. MALPHRUS, Staff
SHEILA CLARK, EEO Programs
LYNN S. FOX, Senior Adviser

Director
Director

MANAGEMENT DIVISION
H. FAY PETERS, Acting
Director
STEPHEN J. CLARK, Associate
Director
DARRELL R. PAULEY, Associate
Director
CHRISTINE M. FIELDS, Assistant
Director
BILLY J. SAULS, Assistant
Director
DONALD A. SPICER, Assistant
Director

DIVISION OF INFORMATION TECHNOLOGY
M A R I A N N E M . EMERSON,

Director

MAUREEN T. HANNAN, Deputy
Director
TILLENA G. CLARK, Assistant
Director
GEARY L. CUNNINGHAM, Assistant
Director
WAYNE A. EDMONDSON, Assistant
Director
P o KYUNG KIM, Assistant
Director
SUSAN F. MARYCZ, Assistant
Director
SHARON L. MOWRY, Assistant
Director
RAYMOND ROMERO, Assistant
Director




Director

PAUL W. BETTGE, Associate
Director
JEFFREY C. MARQUARDT, Associate
Director
KENNETH D. BUCKLEY, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
LISA HOSKINS, Assistant
Director
DOROTHY LACHAPELLE, Assistant
Director
EDGAR A. MARTINDALE III, Assistant
Director
MARSHA W. REIDHILL, Assistant
Director
JEFF J. STEHM, Assistant
Director
Director
JACK K. WALTON II, Assistant

OFFICE OF THE INSPECTOR GENERAL
BARRY R. SNYDER, Inspector
General
DONALD L. ROBINSON, Deputy Inspector

General

105

Federal Reserve Bulletin • December 2003

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET

COMMITTEE
MEMBERS

A L A N GREENSPAN,

TIMOTHY F. GEITHNER, Vice

Chairman

Chairman

S U S A N SCHMIDT B I E S

E D W A R D M . GRAMLICH

MICHAEL H . MOSKOW

B E N S. BERNANKE

JACK G U Y N N

MARK W. OLSON

J. A L F R E D B R O A D D U S , JR.

DONALD L. KOHN

ROBERT T. PARRY

ROGER W . FERGUSON, JR.

ALTERNATE MEMBERS
T H O M A S M . HOENIG

S A N D R A PI AN ALTO

CATHY E . M I N E H A N

WILLIAM POOLE

JAMIE B . STEWART, JR.

STAFF
ROBERT A. EISENBEIS, Associate
Economist
CHARLES L. EVANS, Associate
Economist
MARVIN S. GOODFRIEND, Associate
Economist
DAVID H. HOWARD, Associate
Economist
JOHN P. JUDD, Associate
Economist
BRIAN F. MADIGAN, Associate
Economist
CHARLES S. STRUCKMEYER, Associate
Economist
DAVID W. WILCOX, Associate
Economist

VINCENT R. REINHART, Secretary and Economist
NORMAND R.V. BERNARD, Deputy
Secretary
MICHELLE A. SMITH, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
K A R E N H . JOHNSON,

Economist

D A V I D J. STOCKTON,

Economist

THOMAS A. CONNORS, Associate
Economist
CHRISTINE M. CUMMING, Associate
Economist

DINO KOS, Manager, System Open Market

FEDERAL ADVISORY

COUNCIL

L . PHILLIP H U M A N N ,

President

ALAN G. MCNALLY, Vice

President

ALAN G. MCNALLY, Seventh District
DAVID W. KEMPER, Eighth District
JERRY A. GRUNDHOFER, Ninth District
BYRON G. THOMPSON, Tenth District
GAYLE M. EARLS, Eleventh District
MICHAEL E. O'NEILL, Twelfth District

DAVID A. SPINA, First District
DAVID A. COULTER, Second District
RUFUS A. FULTON, JR., Third District
MARTIN G. MCGUINN, Fourth District
FRED L. GREEN III, Fifth District
L. PHILLIP HUMANN, Sixth District




Account

JAMES A N N A B L E ,
WILLIAM J. KORSVIK,

Co-Secretary
Co-Secretary

A63

CONSUMER ADVISORY

COUNCIL

RONALD A. REITER, San Francisco, California,

Chairman

A G N E S B U N D Y S C A N L A N , B o s t o n , M a s s a c h u s e t t s , Vice

Chairman

A N T H O N Y S . ABBATE, S a d d l e b r o o k , N e w J e r s e y

J. PATRICK LIDDY, C i n c i n n a t i , O h i o

JANIE BARRERA, S a n A n t o n i o , T e x a s

RUHI MAKER, R o c h e s t e r , N e w Y o r k

KENNETH P. BORDELON, Baton Rouge, Louisiana
SUSAN BREDEHOFT, Cherry Hill, N e w Jersey

OSCAR MARQUIS, Washington, District of Columbia
ELSIE MEEKS, Kyle, South Dakota

CONSTANCE K . CHAMBERLIN, R i c h m o n d , V i r g i n i a

PATRICIA M C C O Y , H a r t f o r d , C o n n e c t i c u t

ROBIN COFFEY, C h i c a g o , I l l i n o i s

M A R K PINSKY, P h i l a d e l p h i a , P e n n s y l v a n i a

DAN DIXON, Washington, District of Columbia

ELIZABETH R E N U A R T , B o s t o n , M a s s a c h u s e t t s

THOMAS FITZGIBBON, C h i c a g o , I l l i n o i s

D E B R A S . REYES, T a m p a , F l o r i d a

JAMES GARNER, B a l t i m o r e , M a r y l a n d

BENSON ROBERTS, Washington, District of Columbia

CHARLES GATSON, Kansas City, Missouri

B E N J A M I N ROBINSON III, C h a r l o t t e , N o r t h C a r o l i n a

LARRY HAWKINS, H o u s t o n , T e x a s
W . JAMES K I N G , C i n c i n n a t i , O h i o

DIANE THOMPSON, East St. Louis, Illinois
HUBERT VAN TOL, Sparta, Wisconsin

EARL JAROLIMEK, Fargo, North Dakota

C L I N T WALKER, W i l m i n g t o n , D e l a w a r e

THRIFT INSTITUTIONS

ADVISORY

COUNCIL

KAREN L. MCCORMICK, Port Angeles, Washington, President
WILLIAM J. SMALL, Defiance, Ohio, Vice President

MICHAEL J. B R O W N , S R . , F t . P i e r c e , F l o r i d a

KIRK KORDELESKI, B e t h p a g e , N e w Y o r k

JOHN B . D I C U S , T o p e k a , K a n s a s

D. TAD LOWREY, Brea, California

RICHARD J. DRISCOLL, A r l i n g t o n , T e x a s

GEORGE W . N I S E , P h i l a d e l p h i a , P e n n s y l v a n i a

CURTIS L. HAGE, Sioux Falls, South Dakota

K E V I N E . PIETRINI, V i r g i n i a , M i n n e s o t a

O L A N O . JONES, JR., K i n g s p o r t , T e n n e s s e e




107

Federal Reserve Bulletin • December 2003

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS, M S - 1 2 7 , Board
of Governors of the Federal Reserve System, Washington, D C
20551, or telephone (202) 4 5 2 - 3 2 4 4 , or F A X (202) 7 2 8 - 5 8 8 6 . You
may also use the publications
order form available on the Board's
World Wide Web site (http://www.federalreserve.gov). When a
charge is indicated, payment should accompany
request and be
made payable to the Board of Governors of the Federal
Reserve
System or may be ordered via Mastercard,
Visa, or
American
Express. Payment from foreign residents should be drawn on a
U.S. bank.

BOOKS AND MISCELLANEOUS PUBLICATIONS
T H E FEDERAL

RESERVE

SYSTEM—PURPOSES

AND

FUNCTIONS.

1994. 157 pp.

STATISTICAL SUPPLEMENT TO THE FEDERAL RESERVE BULLETIN.

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TABLES

(Truth

in

Lending—

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use. Multiple

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are

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Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
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Series on the Structure of the Federal Reserve
System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
H o m e Mortgages: Understanding the Process and Your Right
to Fair Lending
H o w to File a Consumer Complaint about a Bank (also available
in Spanish)
In Plain English: Making Sense of the Federal Reserve
Making Sense of Savings
W e l c o m e to the Federal Reserve
W h e n Your H o m e is on the Line: What You Should K n o w
About H o m e Equity Lines of Credit (also available in Spanish)
Keys to Vehicle Leasing (also available in Spanish)
Looking for the Best Mortgage (also available in Spanish)
Privacy Choices for Your Personal Financial Information
W h e n Is Your Check Not a Check? (also available in Spanish)
Putting Your H o m e on the Loan Line Is Risky Business

A65

STAFF STUDIES: Only Summaries
BULLETIN

Printed

in the

167.

Studies and papers on economic and financial subjects that are of
general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and
169 are out of print, but photocopies
of them are available. Staff
Studies 165-174 are available on line at
www.federalreserve.gov/
pubs/staffstudies.
Requests to obtain single copies of any paper or
to be added to the mailing list for the series may be sent to
Publications.

PERFORMANCE"

N E W DATA ON THE PERFORMANCE OF N O N B A N K

VICES

BY

MARKETS
SMALL

AND

AND

THE

USE

171.

SER-

BUSINESSES,

1 6 2 . EVIDENCE ON THE S I Z E OF B A N K I N G MARKETS FROM M O R T GAGE L O A N

RATES IN T W E N T Y

CITIES, b y

Stephen

A.

FOR R E A L

ESTATE,

by

Rhoades. February 1992. 11 pp.
164.

THE

1989-92

CREDIT

CRUNCH

T H E COST OF B A N K REGULATION: A R E V I E W OF THE E V I U S I N G SUBORDINATED D E B T AS AN INSTRUMENT OF M A R -

1 7 3 . IMPROVING

PUBLIC DISCLOSURE

IN

BANKING,

by

Study

Group on Disclosure, Federal Reserve System. March 2000.
3 5 pp.
174.

B A N K MERGERS A N D B A N K I N G STRUCTURE IN THE U N I T E D

STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp.
1 7 5 . T H E F U T U R E OF RETAIL ELECTRONIC PAYMENTS SYSTEMS:
INDUSTRY

James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.




T H E COST OF IMPLEMENTING CONSUMER FINANCIAL R E G U -

KET DISCIPLINE, by Study Group on Subordinated Notes
and Debentures, Federal Reserve System. December 1999.
6 9 pp.

by

Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.

"OPERATING

METHODOLOGIES,

DENCE, by Gregory Elliehausen. April 1998. 35 pp.

SUBSIDI-

OF F I N A N C I A L

MEDIUM-SIZED

STUDY"

LATIONS: A N A N A L Y S I S OF EXPERIENCE WITH THE T R U T H

Donald Savage. February 1990. 12 pp.
BANKING

"EVENT

IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey. December 1997. 17 pp.

ARIES OF B A N K HOLDING COMPANIES, b y N e l l i e L i a n g a n d
160.

AND

by Stephen A. Rhoades. July 1994. 37 pp.
170.

172.
159.

A SUMMARY OF M E R G E R PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , A N D AN ASSESSMENT OF THE

INTERVIEWS

AND

ANALYSIS,

Federal

Reserve

Staff, for the Payments System Development Committee,
Federal Reserve System. December 2002. 27 pp.

109

Federal Reserve Bulletin • December 2003

Maps of the Federal Reserve System

ii '*f*'.f

-A i . i i i s

^
w

^^

. . . ..

a f

^

f

TMjjg^^

Bos ION

Jh;-,

.MRETAN^' .."PHILADELPHIA

4

J

RICHMOND

pais
\L \SK \
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.

A67

2-B

1-A

3-C

4-D

;t

VT

\

NH

"

H F - * " WV

•

C h a r i o t ie

st

BOSTON

N E W YORK

6-F

PHILADELPHIA

—*•

RICHMOND

CLEVELAND

7-G

8-H

•Nashville

I-

m

Birmingham-^- ^

Licksom i lie
New Orleans
Miami
ATLANTA

m

sville

CHICAGO

ST. LOUIS

9-1

MINNEAPOLIS
1 0 - J

MD

wv -

Cincinnati

RI

TN

N ,.
Baltimafig

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Bullulo
CT

5-E
Pittsburgh

ME

12-L

-

KANSAS CITY
11-K

•
NM

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\ mm

KL

DALLAS



S A N FRANCISCO

111

Federal Reserve Bulletin • December 2003

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE B A N K
branch, or facility

Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

James J. Norton
Samuel O. Thier

Cathy E. Minehan
Paul M. Connolly

NEW YORK*

10045

Peter G. Peterson
John E. Sexton
Marguerite D. Hambleton

Timothy F. Geithner
Jamie B. Stewart, Jr.

Buffalo

14240

Barbara L. Walter 1

PHILADELPHIA

19105

Glenn A. Schaeffer
Ronald J. Naples

Anthony M. Santomero
William H. Stone, Jr.

CLEVELAND*

44101

Sandra Pianalto
Robert Christy Moore

Cincinnati
Pittsburgh

45201
15230

Robert W. Mahoney
Charles E. Bunch
Dennis C. Cuneo
Roy W. Haley

RICHMOND*

23219

J. Alfred Broaddus, Jr.
Walter A. Varvel

Baltimore
Charlotte

21203
28230

Wesley S. Williams, Jr.
Thomas J. Mackell, Jr.
Owen E. Herrnstadt
Michael A. Almond
Paula Lovell
David M. Ratcliffe
W. Miller Welborn
William E. Flaherty
Brian E. Keeley
Whitney Johns Martin
Dave Dennis

Jack Guynn
Patrick K. Barron

Robert J. Darnall
W. James Farrell
Timothy D. Leuliette

Michael H. Moskow
Gordon R. G. Werkema

Charles W. Mueller
Walter L. Metcalfe, Jr.
Vick M. Crawley
Norman Pfau, Jr.
Gregory M. Duckett

William Poole
W. LeGrande Rives

Ronald N. Zwieg
Linda Hall Whitman
Thomas O. Markle

Gary H. Stern
James M. Lyon

Richard H. Bard
Robert A. Funk
Robert M. Murphy
Patricia B. Fennell
A.F. Raimondo

Thomas M. Hoenig
Richard K. Rasdall

Ray L. Hunt
Patricia M. Patterson
Gail Darling
Lupe Fraga
Ron R. Harris

Robert D. McTeer, Jr.
Helen E. Holcomb

George M. Scalise
Sheila D. Harris
William D. Jones
Karla S. Chambers
H. Roger Boyer
Mic R. Dinsmore

Robert T. Parry
John F. Moore

ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35242
32231
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40232
38101

MINNEAPOLIS

55480

Helena
K A N S A S CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75201
79999
77252
78295

S A N FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Vice President
in charge of branch

Barbara B. Henshaw
Robert B. Schaub

William J. Tignanelli 1
Jeffrey S. Kane 1
James M. McKee 1
Lee C. Jones
Christopher L. Oakley
James T. Curry III
Melvyn K. Purcell 1
Robert J. Musso 1

Glenn Hansen'

Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard

Samuel H. Gane

Pamela L. Weinstein
Dwayne E. Boggs
Steven D. Evans

Robert W. Gilmer 3
Robert Smith III 1
James L. Stull 1

Mark L. Mullinix 2
Richard B. Hornsby
Andrea P. Wolcott
Mark Gould

* 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
3. Acting




A69

Index to Volume 89
GUIDE

TO PAGE REFERENCES

Issue

January
February
March
April
May
June

IN MONTHLY

Text

1 - 46
4 7 - 92
93-150
151-190
191-242
243-308

ISSUES
Issue

"A" Pages

1-70
1-86
1-74
1-68
1-80
1-74

Index to
tables
58
70
58
58
70
58

The "A" pages consist of statistical tables and reference information.

Pages
ACCOUNTANTS and accounting firms
77, 407
Adjustable rate mortgages, Spanish-language brochure
382
Aizcorbe, Ana M., article
1-32
Annual Report, Budget Review, 2002
272
Annual Report, 89th, 2002
272
Anti-tying restrictions, comments sought
407
Articles
An overview of consumer data and credit reporting
47-73
Capital standards for banks: The evolving Basel
Accord
395-105
Global integration in the banking industry
451-60
Household financial management: The connection
between knowledge and behavior
309-22
Industrial production and capacity utilization:
The 2002 historical and annual revision
151-76
Monetary policy reports to the Congress
93-124, 351-78
Profits and balance sheet developments at U.S.
commercial banks in 2002
243-70
Recent changes in U.S. family finances: Evidence from the
1998 and 2001 Survey of Consumer Finances
1-32
Recent changes to a measure of U.S. household debt
service
417-26
Recent developments in business lending by
commercial banks
477-92
U.S. international transactions in 2002
191-203
Assets, family, 1998-2001 survey
8-21
Audit services to institutions
205
Automobile market
421
Availability of Funds and Collection of Checks
(Reg. CC)
323, 333, 407, 435
Avery, Robert B., article
47-73
BAILEY, Deborah P., Associate Director, Division of Banking
Supervision and Regulation, promotion
Bank check services, Federal Reserve Banks
Bank data reporting
Bank Holding Companies and Change in Bank Control
(Reg. Y)
178, 379,
Bank Holding Company Act of 1956
Applications approved under
ABM Holding Company
Adams Bank & Trust
Adbanc, Inc
Afin, Ltd
AIM Bancshares, Inc
Alapaha Holding Company
Almancora, CVA, Belgium
Almanij, N.V., Belgium




495
126
380
385

240
42
42
391
391
413
240
240

July
August
September
October
November
December

Text

309-350
351-394
395-416
417-450
451-476
477-516

"A" pages

1-74
1-80
1-86
1-74
1-82
1-76

Index to
tables
58
70
74
58
70
58

Statistical tables are indexed separately (see p. A58 of this issue).

Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Alpha Financial Group, Inc., Employee Stock
Ownership Plan
Ambanc Financial Services, Inc
American Eagle Financial Corporation
American Heartland Bancshares, Inc
American Trust BanCorp
Amtrust, Inc
Arthur Financial Corporation
Arvest Bank Group, Inc
Arvest Holdings, Inc
Avest, Inc
Backlund Investment Co
BancFirst Corporation
Bancorp V, Inc
Bancroft State Bancshares, Inc
Bancshares of Florida, Inc
Bancsouth Financial Corporation
Bank Capital Corporation
BankFIRST Bancorp, Inc
Bank of Commerce Holdings, Inc
Bank of Granite Corporation
Bank of Hawaii Corporation
Bank of the San Juans Bancorporation
Bank One Corporation
Bank West Nevada Corporation
Bay View Capital Corporation
BB&T Corporation
BCAC, Inc
Bethlehem Financial Corporation
Bitterroot Holding Company
Blackhawk Bancorp, Inc
BNC Bancorp
BNW Bancorp, Inc
Boston Private Financial Holdings, Inc
Bridge Street Financial, Inc
Bridgewater Financial, MHC
BSA Bankshares, Inc
BSA Delaware, Inc
BTC Financial Corporation
Buffalo Acquiror Sub, Inc
Buford Banking Group, Inc
Business Bancshares, Inc
CalWest Bancorp
Campbell Hill Bancshares, Inc
Campbell State Company
Carver Financial Corporation

446
89
188
348
348
188
446
305
305
391
42
473
305
190
190
514
305
42
240
240
448
348
393
43
306
91
473
305
189
446
43
240
91
89
188
305
305
43
43
188
391
391
446
188
446

113

Federal Reserve Bulletin • December 2003

Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Cass Information Systems, Inc
349
Castle Creek Capital, LLC
91
Castle Creek Capital Partners Fund Ila, LP
91
Castle Creek Capital Partners Fund lib, LP
91
CBS Banc Corp, Inc
305
CenterState Banks of Florida, Inc
89
Central Financial Corporation
305
Central Georgia Banking Company
392
Central Missouri Shares, Inc
89
Centra Ventures, Inc
392
Cera Beheersmaatschappij, N.V., Belgium
240
Cera Holding, CVBA, Belgium
240
Cera Stichting, VZW, Belgium
240
Citizens Bancorp
188
Citizens Bancshares Employee Stock Ownership Plan
348
Citizens Union Bancorp of Shelby ville, Inc
189
Coastal Financial Corporation
446
Coast Financial Holdings, Inc
188
446
Coffeyville Bancorp, Inc
Colonial BancGroup, Inc., The
473
Commerce Bancorp
89
Commerce Bancorp, Inc
43
Commerzbank Aktiengesellschaft, Frankfurt, Germany . . . . 393
Community Bancshares of Mississippi, Inc
305
Community Bancshares of West Georgia, Inc
148
Community Bankshares, Inc
43
Community Financial Corporation
89
Community Guaranty Corporation
473
Cornerstone Bancshares, Inc
446
Country Bank Holding Company, Inc
446
Crockett Delaware Bancshares, Inc
392
Danran Holding, Ltd., Tel Aviv, Israel
393
Davis Bancorporation
43, 44
Davis Trust Financial Corporation
188
DB Acquisition Corp
188
Denison Bancshares, Inc., of Holton
392
DnB Holding ASA, Oslo, Norway
306
Eagle Community Bancshares, Inc
43
Eagle Investment Company, Inc
91
East Penn Financial Corporation
392, 473
Eden Financial Corporation
392
Eggemeyer Advisory Corp
91
Elran (D.D.) Holdings, Ltd., Tel Aviv, Israel
393
Elran (D.D.) Investments, Ltd., Tel Aviv, Israel
393
Equity Bancshares, Inc
392
Farmers Bancorp, Inc
43
Farmers & Merchants Financial Services, Inc
474
Farmers State Bank of Fort Morgan, The, Colorado
Employee Stock Ownership Plan
348
FBOP Corporation
89
FBR Ashton, Limited Partnership
43
FBR Opportunity Fund, Ltd
43
FBR Small Cap Financial Fund
43
FEB Bancshares, Inc
148
Financial Investors of the South, Inc
305
Finlayson Bancshares, Inc
188
First American Bancshares, Inc
305
First BanCorp, San Juan, Puerto Rico
189
First Bancorp, Troy, North Carolina
89
First Bancorp, Inc
240
First Banks, Inc
240
First Carroll Bankshares, Inc
448
First Crockett Bancshares, Inc
392
First Federal Financial Corporation of Kentucky
89
First Interstate Bancsystem, Inc
90
First Merchants Corporation
148
First Mutual Bancorp of Illinois, Inc
189
First National Bancorp, Inc
240
First National Bank of Berryville Employee Stock
Ownership Plan
448
First Okmulgee Corporation
189
First Olathe Bancshares, Inc
148
First Southern Bancorp, Inc
189
First State Associates, Inc
90
First State Bancorp
90
348
Five Star Bancorp
F.N.B. Corporation
189, 240




Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
FNB Corp
241
FNB Corporation
393
FOJ Management Company, LLC
447
FOJ Partners, LP
447
FOJ Partners II, LP
447
Foundation Bancorp, Inc
240
Founders Group, Inc
348
Frances W. Arthur Irrevocable Trust #2 for the
Benefit of Frances Oxner Jorgenson
447
Freedom Bancshares, Inc
473
Friedman Billings Ramsey Group, Inc
43
Frontenac Bancshares, Inc
189
FT Bancshares, Inc
148
GB&T Bancshares, Inc
43
Gemini Bancshares, Inc
392
240
Georgia Commerce Bancshares, Inc
Gravett Bancshares, Inc
43
Guaranty Corporation
305
Guaranty Federal Bancshares, Inc
392
HAO Management Company, LLC
447
HAO Partners, LP
447
HAO Partners II, LP
447
Harrodsburg First Financial Bancorp, Inc
90
Hazelhurst Investors, Inc
43
Healthcare Bancorp, Inc
240
Heartland Financial USA, Inc
393, 447
Heritage Bancshares, Inc
240
Heritage Oaks Bancorp
447
Herky Hawk Financial Corp
90
Hinsbrook Bancshares, Inc
448
Hometown Bancorp, Inc
189
Hume Bancshares Acquisition Corp
447
IBERIABANK Corporation
189
Independent Bank Corporation
349
Independent Holdings, Inc
90
Industry Bancshares, Inc
447
Industry Holdings, Inc
447
InfiCorp Holdings, Inc
473
Integra Bank Corporation
241
Interchange Financial Services Corporation
240
International Brotherhood of Boilermakers, Iron Ship
Builders, Blacksmiths, Forgers & Helpers
305
Inwood Bancshares, Inc
392, 393
Inwood Delaware
393
Inwood Delaware, Inc
392
Iroquois Bancorp, Inc
305
ITLA Capital Corporation
45
JCO Partners, LP
447
JCO Partners II, LP
447
JCO Ventures, LLC
447
JDOB, Inc
392
Jere J. Ruff Family, Limited Partnership II
348
JW Bancorp, Inc
305
Kankakee Bancorp, Inc
474
KBC Bank, N.V., Belgium
240
KBC Bankverzekeringsholding, N.V., Belgium
240
KeyCorp
43
KSB Bancorp, Inc
473
Lakeland Bancorp
447
Lauritzen Corporation
447
Lea M. McMullan Trust
189
Liberty Bancshares, Inc
348, 392
Liberty Financial Group, Inc
90
Liberty Financial Services, Inc
241
Liberty Shares, Inc
473
Liberty State Bank
392
Mahaska Investment Company
44
Mahaska Investment Company ESOP
44
MainSource Financial Group, Inc
348
Main Street Banks, Inc
348
Main Street Financial Services Corp
306
Marco Community Bancorp, Inc
447
Marshfield Investment Company Emplyee Stock
Ownership Plan and Trust
90
MB Financial, Inc
148
McCreary National Bancorp, Inc
306
Meadgen & White, Ltd
90

Index to Volume 89

Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Mechanics Banc Holding Company
Mercantile Bancorp, Inc
90,
Merchants and Manufacturers Bancorporation, Inc. ...
Merchants Merger Corp
Merchants New Merger Corp
Midwest Banc Holdings, Inc
Minnwest Corporation
MNB Holdings Corporation
Morton Bancorp, Inc
Mountain Bancshares, Inc
MountainBank Financial Corporation
Mount Hope Bankshares, Inc
Munchener Ruckversicherungs-Gesellschaft
Aktiengesellschaft, Munich, Germany
Neighbors Bancshares, Inc
New CCB, Inc
New Century Bancorp, Inc
New City Bancorp, Inc
New West Banks of Colorado, Inc
North American Bancshares, Inc
North Field Holdings Corp
North Field Savings Bank
North Georgia Bancorp, Inc
Northview Financial Corporation
Northwest Equity Corporation
Ocean Bankshares, Inc
Old O'Brien Banc Shares, Inc
Olmsted Holding Corporation
One Rich Hill Land, Ltd. Partnership
One Rich Hill Mining, L.L.C
OSB Delaware Financial Services, Inc
OSB Financial Services, Inc
Oswego Community Bank Employee Stock
Ownership Plan
Ozarks Heritage Financial Group, Inc
Page Bancshares, Inc
Pebblespring Holding Company
Peoples Bancshares Corp
Peotone Bancorp, Inc
Pinnacle S-Corp, Inc
Plains Capital Corporation
PNB Bancshares, Inc
Prairieland Bancorp Employee Stock Ownership Plan
and Trust
Premier Bancshares, Inc
Premier Delaware Bancshares
Prosperity Bancshares, Inc
PSB Group, Inc
PSB Holdings, Inc
Pulaski Investment Corporation
Putnam Bancorp, MHC, Inc
Quality Bankshares, Inc
RAM Security Holdings, Ltd
RAM Security Holdings GP, Inc
Ravalli County Bankshares, Inc
Red River Bancshares, Inc
Reliance Bancshares, Inc
Reynolds,Teague, Thurman Financial Corp
Rio Delaware Corporation
Rio Financial Services, Inc
River Bailey Bancorp, Inc
Royal Palm Bancorp, Inc
RTT Delaware Holdings, Inc
Ruff Management, LLC
Ruff Partners, Ltd
Scott County Bancorp, Inc
Security First Bancshares, Inc
Service 1st Bancorp
Shamdar Holdings, Ltd., Tel Aviv, Israel
Shorebank Corporation
Sky Financial Group
Sleepy Hollow Bancorp, Inc
South Financial Group, Inc., The
South Shore Mutual Holding Company
South Texas Bancorp, Inc
Southwest Bancorp, Inc
Southwest Bancorporation of Texas, Inc




241
392, 447
447, 448
447
448
44
91
392
241
306
91, 306
473
392
90
90
473
473
90
473
44
44
306
393
473
241
90
148
391
391
189
189
448
189
473
448
448
348
90
90
348
90
306, 348
348
474
306
241
348
241
474
348
348
189
448
306
90
474
474
44
348
90
241, 349
349
306
306
349
393
393
190
349
448
392
392
448
349

A71

Pages
Bank Holding Company Act of 1956—Continued
Applications approved under—Continued
Southwest Community Bancorp
189
Southwest Florida Community Bancorp, Inc
44
SSB Holding Co., Inc
241
Standard Bancshares, Inc
306
State Bankshares, Inc
91
Steele Street Bank Corporation
392
Sun Financial Corporation
44
Surrey Bancorp
241
Synergy, MHC
44
Synergy Financial Group, Inc
44
Synovus Financial Corp
44, 91
Tate Interim, Inc
91
TCB S-Corp, Inc
91
TCF Financial Corporation
44, 306
TeamCo, Inc
448
Tidelands Bancshares, Inc
392
Total Bancshares Corp
474
Tradition Bancshares, Inc
448
Tradition Bancshares of Delaware, Inc
448
Triangle Financial Group, Inc
349
Tropical Bancshares of Florida, Inc
148
UCB Financial Group, Inc
349
Union Financial Bancshares, Inc
392
United Bankshares, Inc
448
United Community Banks, Inc
189, 241
Utah Community Bancorp
189
Uwharrie Capital Corp
241
Valley Commerce Bancorp
474
Vision Bancshares, Inc
91
VSB Bancorp, Inc
241
Waumandee Bancshares, Ltd
241
Wayne Bancorp, Inc
306
Wells Capital Management, Incorporated
89
Wells Fargo & Company
89, 188
Wells Fargo Financial, Inc
188
Wells Fargo Financial Services, Inc
188
Wells Fargo Funds Managment, LLC
89
West Bancorporation, Inc
448
WJR Corp
91
Orders issued under
Allied Irish Banks, p.l.c., Dublin, Ireland
208-11
Arvest Bank Group, Inc
439-43
BB&T Corporation
335-44
Cathay Bancorp, Inc
468-73
Charles Schwab Corporation
300-02
Citizens Financial Group, Inc
386-91
Cooperatieve Centrale Raiffeisen-Boerenleebank B.A.,
Rabobank Nederland, Utrecht, The Netherlands . . . . 81-85
FBR TRS Holdings, Inc
219-22
Forest Merger Corporation
219-22
Illini Corporation
85-87
Mizuho Financial Group, Inc. Tokyo, Japan
181-85
M&T Bank Corporation
222-34
RBC Centura Bank
139-45
RBC Centura Banks, Inc
139-45
RBSG International Holdings, Ltd., Edinburg,
Scotland
386-91
Royal Bank of Canada, Montreal, Canada
139-45
Royal Bank of Scotland, pic, The, Edinburgh,
Scotland
386-91
Royal Bank of Scotland Group, pic, The, Edinburgh
Scotland
386-91
SouthTrust Bank
211-17
SouthTrust Corporation
211-17
SouthTrust of Alabama, Inc
211-17
Wakashio Bank, Limited, The, Tokyo, Japan
217-19
Woori Bank, Seoul, Korea
436-39
Woori Finance Holdings Co., Ltd., Seoul, Korea
436-39
Bank Holding Company Supervision Manual
130, 381
Banking industry, profits
253-58
Banking organizations
206, 431, 451-60
Bank Merger Act
Applications approved under
Arvest Bank
307
Bay lake Bank
474
Bridge View Bank
242
Central California Bank
349

115

Federal Reserve Bulletin • December 2003

Pages
Bank Merger Act—Continued
Applications approved under—Continued
Chippewa Valley Bank
307
Citizens Banking Company
45
Citizens Bank New Hampshire
393
Citizens Bank of Massachusetts
393
Comerica Bank
349
Dallas Investment Company
449
East Penn Bank
393
Farmers Bank & Trust Company
45
First Bank
242
First Bank and Trust Company, The
242
First Interstate Bank
92
First State Bank Southwest
307
FNB Southeast
148
Heritage Bank of Commerce
45
IBERIABANK
190
JPMorgan Chase Bank
393
Midwest Bank & Trust Company
45
M&I Marshall Ilsley Bank
92
Planters Bank and Trust Company of Virginia
449
PNG Financial Bank
92
Ravenna Bank, The
474
Red River Bank
449
Second Bank & Trust
449
Security Bank Minnesota
307
Sky Bank
190
State Bank of La Crosse
242
Suburban Community Bank
449
UnionBank
190
United Bank
449
Univest Corporation of Pennsylvania
449
Univest National Bank
449
Order issued under, Bank of Hawaii
87
Banks, U.S., new Basel Accord
400
Banks' Own Claims on Unaffiliated Foreigners, Bulletin table,
number 3.20, discontinued
383
Barger, Norah M., Associate Director, Division of Banking
Supervision and Regulation
495
Basel Capital Accord
Advance notice of proposed rulemaking for
379
Article
395-105
Basel I
395, 396
Basel II
397^105, 408, 494
Consultative Paper
272
Bassett, William F., article
477-92
Beneficial ownership reports, electronic filing system
409
Berger, Allen N., article
451-60
Bernanke, Governor Ben S
427, 493
Beverly, Sondra G., University of Kansas, article
309-22
Blanchard, Laricke, Special Assistant to the Board,
appointment
433
Board of Governors
Consumer Advisory Council
Meetings
178, 328, 467
New member nominations and appointments
7 5 - 7 7 , 323
Credit management meeting
327
Discount rate meetings, minutes
37, 78, 128, 206,
328, 383, 432, 467, 494
Final enforcement decisions or orders (See Litigation,
Final enforcement decisions or orders issued by
Board of Governors)
Index of orders or actions taken
61, 187, 347, 445
Mail, negative anthrax test results
128
Members
Bernanke, Governor Ben S
427, 493
Ferguson, Vice Chairman Roger W., Jr
427, 493
Greenspan, Chairman Alan
271, 273
Official staif changes
Bailey, Deborah P.
495
Barger, Norah M
495
Blanchard, Laricke
433
Bouchard, Barbara J
495
Braunstein, Sandra F
80, 273
Clouse, James A
383
Cross, Betsy
495
Desmond, Angela
495
Division of Banking Supervision and Regulation
495
Edwards, Cheryl L
383




Pages
Board of Governors—Continued
Official staff changes—Continued
Embersit, James A
495
Emerson, Marianne
207
English, Maureen P.
80, 207
Faust, Jon
129
Fox, Lynn
384
Gillum, Gary
433
Greenlee, Jon D
495, 496
Hambley, Winthrop P.
433
Hannan, Maureen
207
Henderson, Dale
129
Hoffman, Stephen M
495
Holm, Charles H
495
Hoskins, Lisa
384
Hurt, Adrienne D
80
Johnson, Willene A
129
Jones, William R
384
LaChapelle, Dorothy B
384
Leahy, Michael
129
Lindsey, David E
410
Lopez, John H
384
Martin, Stephanie
129
Martinson, Michael G
495
McNulty, Irene Shawn
80
Michaels, James A
80
Miles, Walt
495, 4 9 6
Orphanides, Athanasios
383, 384
Peters, H. Fay
207, 4 1 0
Price, Tonda E
80, 273
Ryback, William A
273
Schemering, Steven C
495
Smith, Michelle A
384, 433
Spaniel, William G
495, 496
Taylor, Robert F.
329
Treacy, William F.
495, 4 9 6
Williams, David L
329
Winn, Donald J
433
Wright, David M
495
National Flood Insurance, guidance
77, 125
Rules for Collecting and Reporting Information
323
Rules of Organization
331
Rules Regarding Equal Opportunity for Staff
275-300
Thrift Institution and Advisory Councils
34
Bostic, Raphael W., article
47-73
Bouchard, Barbara J., Deputy Associate Director,
Division of Banking Supervision and Regulation
495
Braunstein, Sandra F„ Senior Associate Director,
Division of Consumer and Community Affairs
80, 273
Bulletin tables, discontinued
Banks' Own Claims on Unaffiliated Foreginers,
number 3.20
383
Claims on Foreign Countries held by U.S. and Foreign
Offices of U.S. Banks, number 3.21
131
Business sector, economic developments
101-06, 3 5 8 - 6 2
CALEM, Paul S„ article
47-73
Canner, Glenn B., article
47-73
Capital, commercial banks
251, 431
Capital accounts, U.S
200, 202
Capital standards for banks: The evolving Basel Accord,
article
395-405
Carlson, Mark, article
243-70
Cash-flow management
312-15
Cash services policy, comments sought
461
Check processing, Availability of Funds and Collection of
Checks (Reg. CC)
323
Check services, Federal Reserve Banks
126
Claims on Foreign Countries held by U.S. and Foreign
Offices of U.S. Banks, Bulletin table 3.21, discontinued . . . 131
Clouse, James A., Deputy Associate Director, Division of
Monetary Affairs
383
Collection agency records
68-70
Commercial and industrial loans
256, 4 7 7 - 9 2
Commercial Bank Examination Manual
78, 380
Commercial bank
Balance sheet developments
245-49
Income and expenses, tables
260-70
Interest income and expense
254

Index to Volume 89

Pages
Commercial bank—Continued
International operations
258
Liabilities
251
Loans
245^17, 2 4 9 - 5 0 , 2 5 5 - 5 8
Profitability
253-58
Recent developments in lending, articles
243-70, 4 7 7 - 9 2
Securities holdings
250
Commercial real estate
362
Consumer Advisory Council
Meetings
178, 328, 467
Members, officers, and nominations
7 5 - 7 7 , 323
Consumer data, credit reporting, article
47-73
Consumer Finances, comparison of 1998 and 2001
surveys on
1-32
Consumer Handbook on Adjustable Rate Mortgages, Spanish .. 382
Consumer rights, summary, Fair Credit Reporting Act
48
Consumer spending
98, 355
Corporate profits
102-06, 3 5 9 - 6 2
Corrado, Carol, article
151-76
Counterfeiting
204, 327, 430, 4 6 4
Credit card account management, guidance on
35, 55, 127, 409
Credit management meeting and survey results
315, 327
Credit reporting, consumer data, article
47-73
Cross, Betsy, Associate Director, Division of Banking
Supervision and Regulation
495
Currency redesign and issuance
326, 4 2 9 - 3 1 , 4 6 3 - 6 5
Current accounts, U.S
193, 199, 366
Customer identification program, final rules
271, 332
DATA, credit reporting and consumers survey
70-73, 321
Debt
Corporate
116-18
Financial intermediation
372-74
Household, article
417-26
Shorter-term
372
Debt service ratio, article
417-26
Depository institutions
Discount window, guidelines on appropriate use
406
Exemption thresholds
74, 461
Derivatives
252, 490
Desmond, Angela, Deputy Associate Director, Division of
Banking Supervision and Regulation
495
Disciplinary action, accountants and accounting
firms
77, 407
Disclosure requirements, mortgage loans, annual fee-based
trigger amounts announced
407
Discount rate meetings, minutes
37, 78, 128, 206, 328,
383, 432, 467, 494
Discount rates, primary and secondary lending
74
Discount window, guidance on appropriate use and
amendment to Reg. A
119, 406
Dynan, Karen, article
417-26
ECONOMIC developments, by sector
Business
101-06, 3 5 8 - 6 2
Financial markets
9 4 - 9 6 , 113-20, 3 5 4 - 7 8 , 3 7 0 - 7 5
Foreign
107-10, 120-24, 365, 3 7 5 - 7 8
Government
106, 3 6 2 - 6 5
Household
98-101, 355-58
Labor
110-13, 3 6 6 - 6 8
Prices
112, 3 6 8 - 7 0
Economy, U.S. Monetary policy reports
93-124, 351-78
Edwards, Cheryl L., Assistant Director, Division of
Monetary Affairs
383
Electronic filing system, beneficial ownership reports
409
Electronic payments systems, retail, staff study summary
33
Embersit, James A., Deputy Associate Director, Division of
Banking Supervision and Regulation
495
Emerging-market economies, developments
122-24, 377
Emerson, Marianne, Director, Division of Information
Technology
207
Employment
110, 366
Enforcement actions (See Litigation, Final enforcement
decisions or orders issued by Board of Governors)
English, Maureen P., Associate Director, Division of
Consumer and Community Affairs
80, 207
Equal Credit Opportunity Act (Reg. B)
177
Equal opportunity, final rule amending
275-300
Equity markets
115
Europe, international integration
452




A73

Pages
Export developments
108, 197
Extensions of Credit by Federal Reserve Banks
(Reg. A), revisions
38-41, 119, 136, 411
FAMILY finances, U.S., 1998 and 2001 Survey of
Consumer Finances, article
1-32
Faust, Jon, Assistant Director, Division of International
Finance
129
Federal flood insurance authority, guidance on lapse in
77
Federal government, economic developments
106, 3 6 2 - 6 5
Federal Open Market Committee
Discount rate change
379
Discount rate meetings, minutes
37, 78, 128, 206, 328,
383, 432, 467, 494
Meeting schedule, 2004
326
Rules of procedure, amendment
181
Statements
34, 125, 204, 271, 379, 406, 427, 493
Federal Reserve Banks
Bank check services
126
Chairmen and deputy chairmen
462
Cleveland, Sandra Pianalto appointed President
34
Data collection, contract award to modernize
380
Fee schedules
493
Income, preliminary
figures
74
N e w York, President William J. McDonough, retirement — 125
N e w York, Timothy F. Geithner appointed president
462
Priced-service income, imputing method
324
Federal Reserve Bulletin
Legal Developments Section
450, 475, 516
New publication schedule
433, 466
Federal Reserve System, financial education and literacy
initiative
324
Fedwire Funds Service, expansion of online
operating hours
36, 325
Ferguson, Vice Chairman Roger W., Jr
427, 493
Finance, business and household
100, 102-06, 3 5 5 - 5 8 , 3 5 8 - 6 2
Household
100, 3 5 5 - 5 8
Financial accounts, final rules to identify new account
customers
271, 332
Financial education, online resource and literacy
initiative
206, 324
Financial management of households, practices
310-12
Financial markets, economic developments
94-96, 113-20,
354-78, 3 7 0 - 7 5
Financial obligations ratios
421, 424
Financial system, white paper on sound practices
206
Foreign banking organizations, online applications
431
Foreign sector, economic developments
107-10, 120-24,
365, 3 7 5 - 7 8
Fox, Lynn, Senior Adviser, Office of the Staff Director
384
GEITHNER, Timothy F., President, Federal Reserve Bank
of N e w York
462
Gillum, Gary, Senior Economist, Division of Monetary
Affairs
433
GlobalCash-Europe96 survey
453-58
Global counterfeiting, report
204
Global integration in the banking industry, article
451-60
Government sector, economic developments
106, 3 6 2 - 6 5
Government securities, U.S
36
Greenlee, Jon D., Assistant Director, Division of Banking
495, 496
Supervision and Regulation
Greenspan, Chairman Alan
McDonough retirement
125
Statement on term in office
271
Successful surgery
273
Vice Chairman Ferguson and Governor Bernanke
nominations, statements
427
HAMBLEY, Winthrop P., Assistant to the Board,
Congressional Liaison Office
433
Hannan, Maureen, Deputy Director, Division of Information
Technology
207
Henderson, Dale, Senior Adviser, Division of International
Finance
129
Hilfert, Marianne A., article
309-22
Hoffman, Stephen M., Deputy Director, Division of
Banking Supervision and Regulation
495
Hogarth, Jeanne M., article
309-22

117

Federal Reserve Bulletin • December 2003

Pages
Holm, Charles H., Deputy Associate Director, Division of
Banking Supervision and Regulation
495
Home equity lines of credit, Spanish-language brochure
383
Home Mortgage Disclosure Act (Reg. C), amendments ... 178, 331
Homeowners, financial obligations and income
423
Hoskins, Lisa, Assistant Director, Division of Reserve Bank
Operations and Payment Systems
384
Household debt service, changes to measure of, article
417-26
Household financial management
100, 257, 309-22, 356-58
Household sector, economic developments — 98-101, 355-58, 421
Hurt, Adrienne D., Associate Director, Division of Consumer
and Community Affairs
80
IDENTITY theft
129, 408
Import developments
108, 198
Income
Commercial banks
260-70
Family, 1998-2001 survey
3-6
Federal Reserve Banks, preliminary
figures
74
Industrial and commercial loans
256, 477-92
Industrial economies, developments
121, 376
Industrial production and capacity utilization
Annual revision, change in publication date
37
Article
151-76
Information security risks, guidance on
128
"Interagency Paper on Sound Practices to Strengthen the
Resilience of the U.S. Financial System"
206
Interbank Liabilities (Reg. F)
468
Interest income and expense, commercial banks
254
Interest rates
114, 419
Internal auditing, policy statement on
205
International Banking Act of 1978
Orders issued under
Bancolombia, S.A., Medellin, Colombia
234-36
BBVA Bancomer, S.A., Mexico City, Mexico
146
CITIC Ka Wah Bank Limited, Hong Kong Special
Administrative Region, People's Republic of
China
443-45
Daiwa Bank, Limited, The, Osaka, Japan
185-87
DEPFA BANK, pic, Dublin, Ireland
236
HSH Nordbank Aktiengesellschaft, Hamburg/Kiel,
Germany
344
Union Bank of Israel, Ltd., Tel Aviv, Israel
302-04
Wakashio Bank, Limited, The, Tokyo, Japan
237-39
International Banking Operations (Reg. K) .. 125, 137-39, 178, 324
International monetary policy developments
120-24, 375-78
International transactions, U.S., article
191-203
Investment income
199-201
Investments
Fixed
101, 358
Household
317
Inventory
102, 359
Residential
356
Iraq war, effect on U.S. financial markets
370
JOHNSON, Kathleen, article
Johnson, Willene A., Adviser, Division of International
Finance
Jones, William R., Director, Management Division
KAMIN, Steven B„ article
Kennickell, Arthur B., article

417-26
129
384
191-203
1-32

LABOR markets, economic developments
110-12, 366-68
LaChapelle, Dorothy B., Assistant Director, Division of
Reserve Bank Operations and Payment Systems
384
Leahy, Michael, Assistant Director, Financial Markets and
International Banking Sections oversight, Division of
International Finance
129
Legal Developments Section, Bulletin
450, 475, 516
Liabilities, commercial banks
251
Liabilities, family, 1998-2001 survey
21-28
Lindsey, David E., Deputy Director, Division of Monetary
Affairs
410
Litigation
Final enforcement decisions or orders issued by the
Board of Governors
Agee, James C
179
Arneson, Robert C
432




Pages
Litigation—Continued
Final enforcement decisions or orders issued by the
Board of Governors—Continued
Bank of Yellville
128
Butler, Marian L
179
Centennial Bank of the West
383
Central State Bank
128
Citizens Bank and Trust Company
329
Community First Bank & Trust
383
Community State Bank
432
Del Rio, Eduardo
37
First Bank, Creve Coeur
179
First Farmers Bank and Trust
272
Frierson, Terry
179
Gulf Bank
495
LaSalle State Bank
129
McCarthy, Susan Diehl
467
Rowe, Cynthia
179
Sahlgren, Michael
179
Simmons First Bank of Russellville
129
Skrobot, Dale and Betty
179
Staples, Lori H
329
Ulrich, Gene
467
Van Stone, Craig
432
WestLB AG, Dusseldorf, Germany
432
Index of orders or actions taken
42, 187, 347, 445
Pending cases involving the Board of Governors,
lists of
45, 92, 149, 190, 242,
307, 350, 394, 449, 475
Termination of enforcement actions issued by Board of
Governors
Allfirst Bank, The
433
Allfirst Financial, Inc
433
Allied Irish Banks, p.l.c
433
79
Banco Bilbao Vizcaya Argentario, S.A.
79
Banco Popular de Puerto Rico
80
Bank of Rogers
79
Belmont Bancorp
Cerritos Valley Bancorp
80
Cerritos Valley Bank
80
CSB Bancorp, Inc.
80
Daiwa Bank, Limited, The, Osaka, Japan
180, 273
Daiwa Bank and Trust Company
180
First Security Bancshares, Inc
180
Grimes Capital Corporation
Guaranty Bank
180
Guaranty Financial Corporation
Olathe Bancorporation, Inc
432
PNC Financial Services Group, Inc., The
432
ShoreBank Cleveland
432
United Central Bank
432
United States Trust Corporation
329
U.S. Trust Corporation
329
Valley Independent Bank
180
Written agreements approved by Federal Reserve Banks
BANKFIRST
272
BANKFIRST Corporation
272
Bank of Gassaway
495
Barnes Banking Company
207
Brickyard Bancorp, Inc
329
Citigroup, Inc
410
Consolidated Bank and Trust Company
432
Fifth Third Bancorp
207
Fifth Third Bank
207
First American Bank
467
First Charter Bank
467
First PREMIER Bank
467
First State Bank of West Manchester, The
273
Gold Banc Corporation
432
Gold Bank
432
HSBC Bank USA
273
LP. Morgan Chase & Co
409
Legacy Bank
206
Marathon Bank, The
329
Metamora Bancorp, Inc
79
Metamora State Bank
79
Midstate Bancorp, Inc
206
NAB Bank
329
Premier Bank
272

Index to Volume 89

Pages
Litigation—Continued
Written agreements approved by Federal Reserve
Banks—Continued
PREMIER Bankcard, Inc
Premier Financial Bancorp, Inc
Ridgedale State Bank
Southern Commercial Bank
United National Corporation
Loans
Charge-offs of
Commercial and industrial at commercial banks, article ..
Commercial bank
245-47, 249-50,
Commercial real estate
International fees for
125,
Mortgage, disclosure requirements for
Syndicated
427-29,
Loan-to-deposit ratios issued, host state
Lopez, John H., Special Assistant to the Board, Office of
Board Members

467
129
432
383
467
257
477-92
255-58
362
137-39
407
487-89
327
384

MANAGEMENT of cash flow by households
312-15
Market structure and developments, commercial banks
487-92
Martin, Stephanie, Associate General Counsel, Monetary
and Reserve Bank Affairs, Legal Division
129
Martinson, Michael G., Senior Adviser, Division of Banking
Supervision and Regulation
495
McNulty, Irene Shawn, Associate Director, Division of
Consumer and Community Affairs
80
Michaels, James A., Assistant Director, Division of
Consumer and Community Affairs
80
Miles, Walt, Assistant Director, Division of Banking
Supervision and Regulation
495, 496
Monetary aggregates
118, 132-35, 374
Monetary policy reports to the Congress
93-124, 351-78
Money stock data, revision
132-35
Moore, Kevin B., article
1-32
Mortgage banking activities and loans
178, 407
NATIONAL Communications System (NCS)
36
National Flood Insurance Program
77, 125
Net worth, family, 1998-2001, survey
6-8
Note, new 20 dollar
326, 327, 429, 430, 463, 464
ORPHANIDES, Athanasios, Adviser, Division of
Monetary Affairs

383, 384

PENCE, Karen, article
417-26
Perli, Roberto, article
243-70
Personal financial education and management
206, 409
Peters, H. Fay, Deputy Director and Acting Director,
Management Division
207, 410
Pianolto, Sandra, appointed president, Federal Reserve
Bank of Cleveland
34
Price, Tonda E„ Assistant Director, Division of
Consumer and Community Affairs
80, 273
Priced-service income, imputing method
324, 494
Prices, economic developments
112, 195, 368-70
Publications
Annual Report, 2002
272
Annual Report, Budget Review, 2002
272
Bank Holding Company Supervision Manual
130, 381
Commercial Bank Examination Manual
78, 380
Federal Reserve Bulletin
433
Putting Your Home on the Loan Line Is Risky Business
465
Statistical Supplement to the Federal Reserve Bulletin .. 433, 466
Public records, types available
66-68
REAL estate loans and receivables
Regulations, Board of Governors (See also Rules)
A, Extensions of Credit by Federal Reserve Banks .. 38-41,
136,
B, Equal Credit Opportunity Act
C, Home Mortgage Disclosure Act
178,
D, Reserve Requirements of Depository Institutions .. 38-41,
F, Interbank Liabilities
H, Reporting and Disclosure Requirements for State
Member Banks with Securities Registered under the
Securities and Exchange Act of 1934
K, International Banking Operations
125, 137-39, 178,




362
119,
411
177
331
497
468

136
324

A75

Pages
Regulations, Board of Governors—Continued
W, Transactions between Banks and Their Affiliates
35
Y, Bank Holding Companies and Change in Bank
Control
178, 379, 385
Z, Truth in Lending
36, 204, 435
CC, Availability of Funds and Collection of
Checks
323, 333, 407, 435
Regulatory burden, comments sought
328
Renters, financial obligations and income
423
Reporting and Disclosure Requirements for State Member
Banks with Securities Registered under the Securities
and Exchange Act of 1934 (Reg. H)
136
Reserve Requirements of Depository Institutions,
(Reg. D)
38-41, 461, 497
Residential investment
99, 356
Retail electronic payments systems
33
Risk-based capital standards
431
Rules
Rules for Collecting and Reporting Information
323
Rules of Organization, amendment
331
Rules Regarding Equal Opportunity
275-300
Ryback, William A., Senior Associate Director, Division of
Banking Supervision and Regulation
273
SARBANES-OXLEY Act, final rule implementing
125
Saving by households
316
Schemering, Steven C., Senior Adviser, Division of Banking
Supervision and Regulation
495
Secondary loan market, commercial banks
489
Securities, U.S. government
36
Securitized loans
257
Security features, new $20 note
430, 464
Shared National Credit, syndicated bank loans review
427-29
Smith, David C., article
451-60
Smith, Michelle A., Assistant to the Board and Director,
Office of Board Members
384, 433
Spaniel, William G., Deputy Associate Director,
Division of Banking Supervision and Regulation
495, 496
Staff Study summary, The future of retail electronic
payments systems: Industry interviews and analysis
33
State member banks, reporting and disclosure
136
requirements (Reg. H)
Statements, Federal Open Market Committee . . . . 34, 125, 204, 271,
379, 406, 427, 493
Statistical Bulletin tables, discontinued
131, 383,
Statistical Supplement to the Federal Reserve Bulletin
433, 466
Student loan data, new sources for DSR
420
Survey on Consumer Finances (SCF), comparison of family
finances using 1998 and 2001
1-32
Syndicated loan market, commercial banks
427-29, 487-89
TAYLOR, Robert F., Assistant Director, Division of
Information Technology
329
Telecommunications service priority, for national security
and emergency preparedness
35
Thrift Institutions Advisory Council, new members,
officers, and appointments
34
Trade
107-10, 193, 196-99
Transactions between Banks and Their Affiliates (Reg. W)
35
Treacy, William F., Assistant Director, Division of Banking
Supervision and Regulation
495, 496
Truth in Lending (Reg. Z)
36, 204, 435
Twenty dollar note, redesign and issuance — 326, 429-31, 464-65
UNEMPLOYMENT
U.S. international transactions in 2002, article
USA PATRIOT Act, customer identification rules
Use and Counterfeiting of United States Currency
Abroad, Part II,
WHAT You Should Know about Home Equity Lines of
Credit, brochure in Spanish
Williams, David L., Associate Director, Management
Division
Winn, Donald J., Director, Office of Board Members
Wright, David M., Associate Director, Division of Banking
Supervision and Regulation
ZAKRAJSEK, Egon, article

110, 366
191-203
332
204

383
329
433
495
477-92

119

Federal Reserve Bulletin • December 2003

Publications of Interest
FEDERAL RESERVE REGULATORY

SERVICE

To promote public understanding of its regulatory functions, 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.
Requirements
The Monetary Policy and Reserve
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, G, M, P, Z, A A, BB, and
DD, and associated materials.

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
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, mail stop 127, Board of Governors of the Federal Reserve System, Washington, DC
20551.

GUIDE TO THE FLOW OF FUNDS




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, Mail Stop 127, Board
of Governors of the Federal Reserve System, Washington, DC 20551.