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VOLUME 78 •

NUMBER 2 •

FEBRUARY 1992

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman

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




Table of Contents
107 ASSET-BACKED

COMMERCIAL

decreased 0.5 percentage point in November,
to 79.1 percent.

PAPER

PROGRAMS

In existence since 1983, asset-backed commercial paper programs, which involve the securitization of assets, have grown substantially
over the past two years. This article examines
the benefits and risks of asset-backed commercial paper programs, including the risk-based
capital treatment of the liquidity facilities and
other supporting arrangements for these programs provided by banking organizations, and
how the existing guidance on securitization
activities that the Federal Reserve has provided
its examiners pertains to asset-backed commercial paper programs.

122 STATEMENT TO THE

Alan Greenspan, Chairman, Board of Governors, says that an analysis both of the special
factors affecting the economy at present and of
the requirements for healthy growth of productivity and for international competitiveness
over the longer run suggests that any changes
made to the tax code should give considerable
emphasis to the encouragement of long-term
economic growth through incentives for saving
and investment, before the House Committee
on Ways and Means, December 18, 1991.
125

117 STAFF STUDY

SUMMARY

AND

CAPACITY

UTILIZATION

The index of industrial production decreased
0.4 percent in November, after three months
of little overall change. At 107.8 percent of
its 1987 annual average, total industrial
production was 0.5 percent below its year-ago
level. Total industrial capacity utilization




ANNOUNCEMENTS

Change in the discount rate.

In "Evidence on the Size of Banking Markets
from Mortgage Loan Rates in Twenty Cities,"
the author considers whether financial innovation and a surge in bank mergers over the past
decade have broadened the geographic market
for banking services. The study focuses on the
market for mortgage loans, considered by
some to have become national in scope. The
data consist of more than 13,500 observations
of mortgage loan terms covering a sixteenweek period for twenty U.S. cities from late
1987 through early 1988. Results of two
statistical tests indicate that local market
conditions still influence mortgage rates.

1 1 9 INDUSTRIAL PRODUCTION

CONGRESS

Ratings in Community Reinvestment Act
examinations now available on a weekly basis.
Appointments to the Thrift Institutions Advisory Council.
Delay in the effective date of the regulation on
real estate appraisals.
Proposed revisions to the staff commentary
on Regulation B; proposed revisions to Truth
in Lending regulations; proposal to resolve a
conflict between the home equity rules and
provisions of the Federal Reserve Act and
Regulation O.
Public meetings on the application of BankAmerica Corporation to acquire Security
Pacific Corporation.
Changes in Board staff.
128 RECORD

OF POLICY ACTIONS

FEDERAL OPEN MARKET

OF THE

COMMITTEE

At its meeting on November 5, 1991, the
Committee adopted a directive that called for

an immediate slight easing in the degree of
pressure on reserve positions and that provided
for giving special weight to potential developments that might require some additional
easing during the intermeeting period. The
reserve conditions contemplated at this meeting were expected to be consistent with
growth of M2 and M3 at annual rates of
around 3 percent and 1 percent respectively
over the three-month period from September
through December.
135 LEGAL

DEVELOPMENTS

Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
Al

FINANCIAL AND BUSINESS

STATISTICS

These tables reflect data available as of
December 29, 1991.
A 3 GUIDE TO TABULAR

PRESENTATION

A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics




A 6 9 GUIDE TO STATISTICAL RELEASES
SPECIAL TABLES
All

INDEX TO STATISTICAL

TABLES

A 8 6 BOARD OF GOVERNORS

AND STAFF

A 8 8 FEDERAL OPEN MARKET
STAFF; ADVISORY

AND

COMMITTEE

AND

COUNCILS

A 9 0 FEDERAL RESERVE BOARD

PUBLICATIONS

A 9 2 FEDERAL RESERVE BANKS,
AND OFFICES

BRANCHES,

A 9 3 MAP OF THE FEDERAL RESERVE

SYSTEM

Asset-Backed Commercial Paper Programs
Barbara Kavanagh, of the Federal Reserve Bank of
Chicago, and Thomas R. Boemio and Gerald A.
Edwards, Jr., of the Board's Division of Banking
Supervision and Regulation, prepared this article.
In existence since 1983, asset-backed commercial
paper programs have grown substantially over the
past two years. These programs involve the securitization of assets and are attractive to companies
because they provide a stable source of funding. At
the same time, they appeal to banking organizations
because they provide a means of earning fee income and meeting customers' needs for credit and,
at the same time, eliminate the need to maintain the
amount of capital that would be required if loans
were extended directly to the companies.
Further incentive for participation in these
programs has been provided by recent revisions to
the Securities and Exchange Commission's rules
limiting the amount that money market mutual
funds may invest in commercial paper issues rated
less than the highest quality. Through these
programs, companies whose own commercial paper
is rated below Al/Pl can continue to have access to
the commercial paper market, despite the lower
demand for commercial paper with such ratings.
This article examines the benefits and the risks of
asset-backed commercial paper programs. First, it
provides an overview of the commercial paper
market and asset-backed commercial paper programs. Next, it discusses the mechanics of the
securitization process, the role of banking organizations in the process, and the incentives for banks
and customers to participate in such programs.
Then it outlines the risks to which asset-backed
commercial paper programs may expose banking
organizations. It also addresses the risk-based capital
treatment of the liquidity facilities and other
supporting arrangements provided by banking
organizations. Last, the article discusses how
existing guidance on securitization activities that
the Federal Reserve has provided its examiners
pertains to asset-backed commercial paper.




OVERVIEW OF THE
PAPER MARKET

COMMERCIAL

Commercial paper, one of the oldest money market
instruments, is used to raise short-term funds.
Typically, commercial paper is an unsecured, shortterm promissory note issued in bearer form by a
financial or nonfinancial company to satisfy its
funding needs. Its popularity as a funding mechanism stems from (1) its availability as an alternative
to short-term bank loans and (2) its lower relative
costs when compared with bank loans or debt
issuance.1 To be exempt from securities registration
requirements of the Securities and Exchange
Commission (SEC), commercial paper must have a
maturity of 270 or fewer days.2 In practice, most
commercial paper issues mature in 30 days or less,
and the maturities of longer-term issues rarely
exceed 90 days. While it is sometimes sold in
denominations as small as $10,000, commercial
paper is generally issued in denominations of
millions of dollars to meet the requirements of
money market funds and other institutional investors, which are the major purchasers.
The origins of commercial paper can be traced
back to the 1800s. Because banking organizations
were restricted to operating in one state, and often
in only one location, companies in one area of the
country might not be able to borrow needed funds
from banking organizations in other regions. Thus,
regions of the country with problems regarding the
availability of credit often had interest rates higher
than those in other regions. During times of high
seasonal demand, companies in areas with relatively
higher rates found the issuance of commercial

1. By issuing commercial paper, companies are able to secure
funding directly from investors in the market instead of using banks
as intermediaries and paying for their services.
2. Other conditions that commercial paper must meet to be
exempt from registration requirements include the following: The
proceeds of the notes are to be used for current transactions, and the
notes are not ordinarily to be advertised for sale to the general
public.

108

Federal Reserve Bulletin • February 1992

paper to be a more cost-effective means of obtaining
financing than borrowing under bank lines of credit.3
The growth of the market, however, essentially
ceased from the Great Depression through World
War II because of prevailing economic conditions.
In the postwar economic boom, commercial paper
again became a source of funding. During the
1960s and 1970s, growth in the commercial paper
markets accelerated. One cause of the acceleration
was the inability of banks to raise funds sufficient
to meet corporate loan demand, which forced
borrowers to look to the commercial paper market
for credit.4
Many commercial and financial companies also
discovered the commercial paper market to be a
viable, cost-effective alternative to bank credit.
Rates on commercial paper, Treasury bills, and
certificates of deposit tend to move closely together,
and all three generally change more quickly than
the prime rate. During periods of falling interest
rates, obtaining funds through the issuance of
commercial paper may be cheaper because rates on
such paper tend to move downward more quickly
than the prime rate. Conversely, many commercial
paper issuers have relied on bank loans during
periods of rising interest rates because rates on
these loans tend to change more slowly than rates
on commercial paper.5
The growth of the commercial paper market
continued to accelerate during the early 1980s as
investors, because of their uncertainty regarding
future rates, favored shorter maturities and as
corporations waited for lower interest rates before
issuing bonds. During this period, money market
mutual funds grew exponentially and became the
largest purchasers of commercial paper. The net
effect of these events was a continued increase, not
only in the dollar volume of the commercial paper
market, but also in the number and type of issuers.
The amount of commercial paper outstanding in
today's market is well above $500 billion (table 1).
This amount represents obligations of domestic

3. Marcia Stigum, The Money Market, rev. ed. (Dow JonesIrwin, 1983), p. 626.
4. Timothy D. Rowe, "Commercial Paper," in Timothy Q.
Cook and Timothy D. Rowe, eds., Instruments of the Money Market
(Federal Reserve Bank of Richmond, 1986), pp. 111-35.
5. Evelyn Hurley, "The Commercial Paper Market," Federal
Reserve Bulletin, vol. 63 (June 1977), p. 530.




1. Outstanding amount of commercial paper, selected
years, 1960-91
Billions of dollars
Year
1960
1965
1970
1975
1980
1985
1990
1991 (to October)
SOURCE.

Outstanding amount
4.5
9.3
33.4
48.4
124.4
298.8
566.9
528.3

Federal Reserve Bulletin.

financial and nonfinancial companies as well as
of multinational corporations and foreign firms and
shows a growth in volume of more than 90 percent
from 1985 to 1990. Although commercial paper
issues are generally unsecured, the liquidity of most
issues is fully supported by bank lines of credit.
Most borrowers in the market reissue or "roll
over" commercial paper as the primary method of
financing maturing paper. Although some secondary
market activity is associated with commercial paper
issues, original purchasers generally hold the paper
to maturity.

OVERVIEW OF ASSET-BACKED
PAPER

COMMERCIAL

PROGRAMS

Like other securitization programs, asset-backed
commercial paper programs segregate assets into
pools and transform these pools into market
instruments. The payment of principal and interest
on these instruments stems from the cash flows
collected on the underlying assets in the pool. In
such programs, the underlying assets are the
receivables of corporations, and the market instrument that is issued is commercial paper.
Asset securitization began in 1970 when the
federal government through the Government National Mortgage Association (GNMA) stimulated
the securitization of residential mortgages by
guaranteeing investors the timely receipt of principal
and interest on the securities issued under the
GNMA program. Soon after, the Federal Home
Loan Mortgage Corporation (FHLMC) and the
Federal National Mortgage Association (FNMA)
also began issuing mortgage-backed securities. In
1985, securities backed by computer leases, credit

Asset-Backed Commercial Paper Programs

card receivables, automobile loans, and other types
of loans began to be issued.6
Asset-backed commercial paper programs use a
vehicle called a special purpose entity (SPE) to
issue commercial paper. The programs provide a
service basically similar to that offered by a
factoring company in that the SPE finances the
receivables of corporate clients. In other respects,
however, the SPE differs from a factoring company. Typically, a factor assumes the role of a
credit department for its clients to evaluate the
creditworthiness of the clients' customers. While it
finances a client's receivables by purchasing them,
the SPE does not perform a credit evaluation of
each obligor associated with the receivables in the
pool as a factor would, but relies instead on an
actuarial review of the past performance of the
client's portfolio of receivables. Also, with an
SPE, the corporate client usually performs the
servicing function whereas in a factoring arrangement the factor generally services the receivables.
Unlike the more familiar mortgage or credit card
securitizations, asset-backed commercial paper
programs are ongoing activities that do not wind
down by themselves after a few years. Generally, in
the more traditional securitizations, the SPE holds a
definitive pool of assets that back a specific issue of
securities. Once the securities have been paid off,
the transaction unwinds. In asset-backed commercial
paper programs, the SPE continually purchases
new receivables and usually rolls over the outstanding commercial paper.
Asset-backed commercial paper programs may
differ from the more traditional securitization
programs in several other ways. First, these
programs issue short-term commercial paper as the
instrument to fund the purchase of the underlying
assets. Most other asset-backed instruments have
maturities of more than two years. Second, the
banking organization advising the program may
provide credit enhancements or guarantees because
the commercial paper is backed by assets sold to
the SPE by nonrelated third parties. Generally, in
the more traditional securitizations, in which the
acquired assets are sold by the advising banking
organization, credit enhancements are obtained from

6. Thomas R. Boemio and Gerald A. Edwards, Jr., "Asset
Securitization: A Supervisory Perspective," Federal
Reserve
Bulletin, vol. 75 (October 1989), pp. 659-69.




109

1. Asset-backed commercial paper programs rated
by Standard & Poor's, selected years, 1983-91
Number of programs

t

60

20

40

1991

nonrelated third parties to ensure that, for accounting
purposes, the selling institution can treat the
transaction as a sale. Third, the commercial paper
issued by these programs is less liquid than
mortgage-backed securities and other types of assetbacked securities because no active secondary
market exists.
At present, more than seventy asset-backed
commercial paper programs are in operation, and
estimates of the size of the market for this paper
currently range from $50 billion to $70 billion. In
the 1980s, programs advised by domestic banking
organizations dominated the asset-backed commercial paper market. Currently, participants in this
market also include foreign banking organizations,
retail companies, and finance companies, which are
estimated to account for one-half of the outstanding
commercial paper issued by asset-backed commercial paper programs.
Standard & Poor's Corporation rated the first
commercial paper program backed by pooled
receivables in April 1983 and the second in January
1985 (chart 1). By year-end 1988, Standard &
Poor's had rated eleven programs with the total
capacity of issuing more than $16 billion of
commercial paper. By November 1991, Standard &
Poor's had rated sixty such programs, which have
the capacity of issuing more than $48 billion of
commercial paper.7 (See table 2 for the various
credit ratings and their definitions.)

THE SECURITIZATION

PROCESS

Asset-backed commercial paper programs use an
SPE to acquire legal title to receivables directly
7. Avi Oster and Barry Wood, "Commercial Paper: Pooled
Receivables' Robust Growth," Standard & Poor's
Creditweek
(March 27, 1989), p. 90.

110

2.

Federal Reserve Bulletin • February 1992

Definitions of commercial paper credit ratings
Standard & Poor's Corporation
Definition

Moody's Investors Service
Definition

Rating

Rating

Ability for repayment

Capacity for timely payment
Extremely strong

A1+

1

Strong

A1

J

Superior

Prime 1 (PI)

Satisfactory

A2

Strong

Prime 2 (P2)

Adequate

A3

Acceptable

Prime 3 (P3)

Speculative

B

Doubtful capacity for payment

C

Debt in payment default

D
Not of prime quality

from corporations. To date, the type of receivables
that have been included in such programs are trade
receivables, installment sales contracts, financing
leases, noncancelable portions of operating leases,
and credit card receivables. By using these programs, a bank can help arrange the financing of
receivables for its corporate customers without
having to make loans or purchase assets, which
could inflate its balance sheet and increase its
capital requirements. In some instances, these
programs are designed to remove assets (typically
credit card receivables originated by the bank) from
the advising bank's books.
To avoid having to consolidate an SPE on its
balance sheet, the advising bank does not own any
of the capital stock.8 Employees of an investment
banking firm or some other third party generally
own the equity of the SPE. As previously noted, to
obtain funding the SPE issues commercial paper,
which is ultimately repaid from the cash flow of the
underlying pools of receivables. The rating agencies
require that the entire amount of outstanding
commercial paper be covered by liquidity and
credit enhancements before the program can receive
the highest investment rating (see chart 2).
Bank involvement in an asset-backed commercial
paper program can range from advising the program
8. Under generally accepted accounting standards and SEC
reporting requirements, consolidation of the SPE is usually expected
if the banking organization has a controlling financial interest in the
SPE. A controlling financial interest would generally be presumed
if the banking organization had a majority ownership interest in the
outstanding voting shares of the SPE, although control might also
be deemed to exist in certain situations involving minority
ownership.




NP

to advising and providing all of the required credit
or liquidity enhancements needed to support the
SPE's commercial paper. In most cases, the advising
bank or an affiliate performs a review to determine
whether the receivables of potential participants in
the program—that is, the corporate sellers—are
eligible for purchase by the SPE. The review is
somewhat similar in scope to the review used in
structuring securitizations backed by credit card
receivables or automobile loans. It covers the credit
origination standards of the corporation and the
current and historical quality and performance of
its portfolio. Ideally, the bank traces the performance of the corporation's portfolio through a
complete business cycle and evaluates the current
portfolio's expected performance. The bank reviews
the receivables in the portfolio to make sure that
they are widely distributed across regions of the
country and among obligors and industries. Once a
bank or its affiliate determines that a corporation's
portfolio has an acceptable credit-risk profile, the
bank or an affiliate approves the purchase of the
company's receivables portfolio by the SPE.
The bank or an affiliate may also act as the
operating agent for the SPE. Acting as operating
agent entails structuring the sales of pools of the
corporate client's receivables to the SPE and
continuously monitoring the performance of the
pools. The SPE then issues commercial paper in an
amount equal to the discounted purchase price of
the receivables and uses the proceeds of the sale to
buy the receivables from the seller. A company that
sells its receivables to an SPE traditionally acts as
the servicer for the receivables and, as such, is

Asset-Backed Commercial Paper Programs

111

2. An asset-backed commercial paper program: structure and cash flows

Transfer of interests in pools of
receivables and initial credit enhancement

Purchase price
of receivables

| Payment of principal and
i interest on receivables
Capital
investment

Additional credit \'
enhancement
Credit enhancer

Dividends

Fee
Liquidity support
•

Liquidity provider

Special purpose entity
(SPE)
Referral fee

Fee

Issuance of commercial
paper notes

Distribution of commercial
paper notes

Payment of principal and
interest on commercial paper

1 Cash purchase
I of commercial
I paper notes
|

Structure
Cash flows —

Investors

responsible for collecting interest and principal
payments on the accounts from the obligors and for
periodically passing these funds to the SPE.

Facilities

Asset-backed commercial paper programs typically
have several levels of credit enhancement to protect
investors from loss. The first level of protection in
these programs is generally the difference between
the face value of the receivables purchased and the
discounted price paid, known as a holdback or
overcollateralization. In some cases, the terms of




Advising
institution

4 Cash proceeds from
I commercial paper
I notes

Investment bank

Credit Enhancements and Liquidity

Owner

the sale also give the SPE recourse back to the
seller if there are defaults on the receivables. The
amount of overcollateralization varies from pool to
pool and depends mainly on the asset quality of the
receivables originated by the corporate client and
the desired credit rating for the commercial paper
issued by the SPE. Usually, the level of credit
protection provided by overcollateralization is
specified as a multiple of historical losses.
The second level of credit safeguards is designed
to absorb any losses that exceed the sum of the
overcollateralization and recourse. Secondary credit
enhancements include letters of credit, surety
bonds, or other backup facilities, such as agreements
that obligate a third party to purchase pools of

112

Federal Reserve Bulletin • February 1992

receivables from the SPE at a specific price. The
loss protection provided by the overcollateralization
and secondary credit enhancements may range
from 15 percent to 35 percent of the amount of
commercial paper outstanding.
Besides the support provided by these credit
enhancements, asset-backed commercial paper
programs usually have support from a liquidity
facility. The general purpose of the liquidity facility
(sometimes referred to as a liquidity backup line) is
to provide funds to the SPE to retire maturing
commercial paper when a mismatch occurs in the
maturities of the underlying receivables and the
commercial paper obligations or when a disruption
occurs in the commercial paper market. Thus, in its
purest sense, the liquidity facility's purpose is to
cover temporary shortfalls in the cash flows of the
SPE that do not result from credit losses on the
underlying receivables.
The credit enhancements and liquidity facility of
an asset-backed commercial paper program may be
provided separately or they may be provided
together under a single arrangement with a bank. In
a combined arrangement, a bank may be required to
purchase pools of receivables to provide funds to
the SPE to pay off maturing commercial paper,
regardless of whether the funding shortfall resulted
from credit deterioration in the particular pool or a
liquidity problem in the overall commercial paper
market.
When one bank provides both the credit and the
liquidity support enhancements, whether in separate
facilities or in a combined arrangement, the
commercial paper's rating is integrally tied to the
bank's own short-term rating. Recently, Standard
& Poor's placed several asset-backed commercial
paper programs on "Creditwatch," with negative
implications, after the short-term deposit rating of
the bank that provided the credit and liquidity
enhancements was downgraded from A1+ to Al.
The reason for the close scrutiny of these programs
was their reliance on just one bank for both
liquidity and credit support. In other asset-backed
commercial paper programs, the A1+ ratings for
the commercial paper were maintained, despite the
deterioration of one bank's short-term rating
because the bank was part of a diversified group of
banks providing credit and liquidity support.
In rating the commercial paper issued through
these programs, the rating agencies consider the




protection provided investors by credit enhancements and backup liquidity facilities. Two criteria
used by rating agencies are of particular importance.
First, to obtain the highest credit rating, commercial paper issued by the SPE must generally have
100 percent liquidity support, which may be
provided by a combination of the liquidity and
credit enhancements. For example, if the program
is protected by a 15 percent credit enhancement, a
liquidity backup line of 85 percent will be necessary.
Second, the rating on the commercial paper is
integrally tied to the rating on direct obligations of
the bank providing the enhancements. Thus, if the
short-term deposit rating of the bank providing the
enhancements is A2/P2, the commercial paper of
the SPE will be given a similar rating at best and
never a higher one.

Incentives for Banking

Organizations

Through asset-backed commercial paper programs,
banking organizations can help arrange short-term
financing support for their customers without having
to extend them credit directly. Thus, by keeping
these potential loans off their books, banking
organizations effectively reduce their capital requirements. Banking organizations also earn fee
income for the service of packaging and monitoring
pools of receivables as well as for providing
liquidity facilities and credit enhancements. The
programs therefore improve the performance measures of banks involved, not only because the fees
earned add to revenue but also because revenue is
increased without a corresponding increase in the
banks' asset levels. Banks also contend that these
vehicles allow them to help meet the financing
needs of investment-grade customers that have
relied on commercial paper in lieu of bank
borrowing, and thus enable the banks to regain
market share.

Incentives for Participating

Companies

Companies wishing to obtain financing choose
asset-backed commercial paper programs for several
reasons. First, these programs provide participating
companies with an additional, reliable source of
funding at a relatively stable cost. This stability of

Asset-Backed Commercial Paper Programs

funding costs results from the diversified pool of
assets that back the commercial paper issued by the
SPE and the extensive credit and liquidity support
involved. Also, unlike traditional commercial paper
programs, the cost of funding associated with these
asset-backed programs is considered relatively
stable because adverse conditions experienced by
an individual participant generally do not affect the
overall program's cost. Second, companies may
want to clean up their balance sheets by reducing
their total assets to improve performance ratios or
by limiting the amount of their own paper outstanding in the market and, instead, issuing new
paper through the SPE. Third, the funding costs
associated with these asset-backed programs may
be less than the direct funding costs for customers
with a commercial paper rating below Al/Pl.
Finally, these arrangements may provide indirect
access to the commercial paper market for companies that are unable to gain direct access.

Risks Associated with These

Programs

Three fundamental models, with variants of each
type, seem to underlie the structuring of the credit
and liquidity support of these programs. First, a
program can combine the credit and liquidity
support into one arrangement; such a combination
generally results in an effective guarantee of the
entire amount of outstanding commercial paper.
Second, a bank can provide separate credit and
liquidity enhancements. Third, some programs have
separate credit and liquidity support mechanisms
provided by one or more third-party institutions.
This last model is generally used when a bank is
selling its own assets, typically credit card receivables, to the SPE. The bank uses this model to
ensure that the transfer will be treated as a true sale
of assets, that is, without any recourse to the bank.
The resulting sales treatment allows the bank to
remove the assets from its books and thus reduce its
capital requirements.
The banking organization providing credit or
liquidity support to one of these programs may
have to raise funds itself in connection with these
obligations to provide funds to the SPE. For example, the downgrading of the short-term deposit
rating of a bank providing the credit or liquidity
support could result in a simultaneous downgrading




113

of the commercial paper issued by the SPE. In such
an event, the SPE may be unable to roll over, or pay
off, some or all of its outstanding commercial paper
at maturity. In this circumstance, the credit deterioration in the bank providing credit or liquidity
support could create a liquidity problem for the
SPE. Furthermore, if cash inflows from the
underlying receivables are insufficient to pay off
the maturing commercial paper issued by the SPE,
then the liquidity facility could be drawn down.
These potential liquidity problems are exacerbated
because the SEC now restricts money market
mutual funds, which are major purchasers of assetbacked commercial paper, to investing no more
than 5 percent of their assets in paper rated A2/P2
or worse at the time of purchase.9
Finally, a significant deterioration in asset quality—one exhausting the overcollateralization or recourse credit enhancements—could result in losses
being absorbed by the secondary credit enhancements, usually letters of credit or cash collateral.
The liquidity or credit problems previously
mentioned, in effect, could bring some portion of
the SPE's assets onto the balance sheets of the
banking organizations providing the credit and
liquidity support enhancements. In such a case, the
banking organizations providing the enhancements
would have to acquire some portion of the assets of
the SPE or extend credit to the SPE, both of which
actions would increase the total assets of the
banking organizations. This increase would adversely affect their capital ratios and certain performance ratios. Because the structures of assetbacked commercial paper programs usually differ,
a case-by-case analysis of these programs is necessary to ascertain the exact nature and the extent of
the risks in any credit or liquidity enhancements
supporting an SPE's commercial paper.

RISK-BASED
ASSET-BACKED

CAPITAL

IMPLICATIONS

COMMERCIAL

FOR

PAPER

A question arises as to whether the liquidity and
credit enhancements supporting asset-backed com9. In June 1991, the SEC adopted amendments to its rule 2a-7
that essentially require a money market fund to limit its total
investment in securities rated A2/P2 or below to 5 percent of its
assets and to limit investment in such securities of any one issuer to
1 percent of its assets.

114

Federal Reserve Bulletin • February 1992

mercial paper constitute a commitment or a direct
credit substitute, that is, a guarantee of the banks
providing these enhancements. The Board's riskbased capital guidelines require banks to hold less
capital to support a commitment than to support a
guarantee. Therefore, determining whether liquidity
and credit enhancements are commitments or
guarantees may affect the pricing of these offbalance-sheet obligations and, in turn, the profitability of these programs.
Under the risk-based capital guidelines, direct
credit substitutes include any irrevocable arrangements that guarantee repayment of financial obligations, including commercial paper. These guidelines contain the following definition of a financial
guarantee:
the combination of irrevocability with the fact that
funding is triggered by some failure to repay or perform
an obligation. Thus, any commitment (by whatever
name) that involves an irrevocable obligation to make a
payment to the customer or to a third party in the event
the customer fails to repay an outstanding debt obligation
. . . is treated, for risk-based capital purposes, as . . . a
financial guarantee.10

Such off-balance-sheet guarantees are converted
at 100 percent to a credit equivalent amount on the
balance sheet and then weighted according to the
risk of the counterparty, after taking into account
any eligible collateral or guarantees.
These direct credit substitutes or guarantees must
be supported by the same amount of capital as if the
obligation were held directly—as a loan—on the
bank's balance sheet. The reason for this treatment is that the bank providing the guarantee
faces the same credit risk as if it had a direct
on-balance-sheet loan to the beneficiary of the
guarantee. Thus, assuming that a loan to a borrower
would be assigned a risk weight of 100 percent, a
guarantee of the borrower's financial obligations
would generally be assigned the same risk weight
of 100 percent.
A guarantee, or direct credit substitute, is
normally drawn down when the primary obligor
has experienced some difficulties and therefore is
unable to pay its financial obligations. A distin10. Board of Governors of the Federal Reserve System, Capital
Adequacy Guidelines (Board of Governors, 1989), p. 13 and p. 41
(12 C.F.R. pt. 208, app. A, sec. III.D.l and 12 C.F.R. pt. 225,
app. A, sec. III.D.l.).




guishing feature of an irrevocable guarantee arrangement is that it does not customarily contain a
"material adverse change" (MAC) clause or similar
provision that would enable the bank providing the
guarantee to escape its obligation.
In contrast to a financial guarantee, a commitment
is defined for risk-based capital purposes as an
arrangement that obligates a bank to extend credit
in the form of loans or leases, or to purchase loans
or other assets. The important difference between a
financial guarantee and a commitment is that the
latter is usually drawn down in the normal course
of business rather than when a party cannot meet its
obligations. A commitment generally will contain
provisions abrogating the lender's obligation and
thus helping to limit its risk if the borrower's condition worsens. However, the presence or absence
of a MAC clause or other escape mechanism has no
bearing on the appropriate capital treatment.
Under the risk-based capital guidelines, if the
original maturity of a commitment exceeds one
year, then it is considered "long term" and is
converted at 50 percent to a credit equivalent
amount on the balance sheet. Alternatively, if the
original maturity of the commitment is one year or
less, it is considered to be "short term" and the
conversion factor becomes 0 percent. Thus, a bank
is not required to hold capital in support of a
short-term commitment.
Backup facilities under asset-backed commercial
paper programs that meet the definition of guarantees for risk-based capital purposes are to be treated
as guarantees. For example, there are "commitments" that obligate a banking organization to loan
against or to acquire the underlying receivables at
the price paid by the SPE, regardless of the quality
of the receivables or any losses on them. In this
structure, the SPE would use the proceeds to retire
the commercial paper. Under these arrangements,
banks cannot revoke their obligation to purchase
the underlying receivables, regardless of any
deterioration in quality; likewise, there is generally
no limit on the amount of credit loss the bank may
be subject to, that is, 100 percent of the enhancement
is available to absorb credit losses. Consequently,
the banks providing these enhancements ultimately
protect the commercial paper investors against loss
by guaranteeing that the SPEs will have funds to
redeem their commercial paper. Arrangements that
have characteristics of a financial guarantee are

Asset-Backed Commercial Paper Programs

regarded as direct credit substitutes for purposes of
the risk-based capital guidelines. Such an agreement, even when called a commitment, should be
converted at 100 percent to a credit equivalent
amount on the balance sheet and generally is risk
weighted at 100 percent.
In contrast, other facilities differentiate between
what is potentially available to absorb credit losses
and what is available to facilitate liquidity. These
liquidity facilities are most commonly characterized
by, at the very least, a test for some minimum asset
quality that must be met before funds will be extended to the SPE. For example, funds may not be
drawn against receivables of lesser quality, in other
words, those in default. Therefore, these facilities
could be considered commitments and may be
treated as such for purposes of risk-based capital.

EXAMINER

GUIDANCE

In 1990, to ensure consistency during examinations,
the Federal Reserve provided guidance to its
examiners to use when reviewing an institution's
involvement with asset securitization transactions.
Although not specifically directed toward assetbacked commercial paper programs, many aspects
of these existing examination guidelines are applicable to these vehicles. For example, the guidance
instructs examiners to check that a banking
organization participating in a securitization transaction—whether an asset-backed commercial paper
program or some other type—has clearly and
logically integrated these activities into its overall
strategic objectives. In addition, it states that
examiners should determine that the management
of the organization understands the risks associated
with the various roles that the institution can
assume in such programs.
Examiners are also instructed to determine that
appropriate policies, procedures, and controls,
including well-developed management information
systems, are in place before the banking organization participates in these programs. They should
ascertain that the banking organization's board of
directors periodically reviews significant policies
and procedures relating to these programs before
approving them.
Based on this guidance, a banking organization
involved in asset-backed commercial paper pro-




115

grams should establish overall limits on the actual
amount of credit and liquidity commitments.
Institutions involved in these programs should also
analyze the underlying pools of receivables and the
structure of the commercial paper program. This
analysis should include a review of the following:
• The characteristics, credit quality, and expected
performance of the underlying receivables
• The banking organization's ability to meet its
obligations under the securitization arrangement
• The ability of the other participants in the
arrangement to meet their obligations.
A banking organization involved in an assetbacked commercial paper program needs to have
established policies and procedures to ensure that it
follows prudent standards of credit assessment and
approval. Such policies and procedures would be
applicable to all pools of receivables to be purchased
by the SPE as well as the extension of any credit
enhancements and liquidity facilities. Procedures
should include an initial, thorough credit assessment
of each pool for which the bank has assumed credit
risk, followed by periodic credit reviews to monitor
performance throughout the duration of the exposure. Furthermore, the policies and procedures
should outline the credit approval process and
establish "in-house" exposure limits, on a consolidated basis, with respect to particular industries or
organizations, that is, the companies from which
the SPE purchased the receivables as well as the
receivable obligors.
For those banking organizations providing credit
enhancements and liquidity facilities, an analysis of
the institution's funding capabilities should be
performed to ensure that these institutions are
capable of meeting their obligations under all
foreseeable circumstances. In addition, an analysis
should be completed to determine the effects of the
fulfillment of these obligations on the banking
organization's interest rate exposure, asset quality,
liquidity position, and capital adequacy.
Examiners, in reviewing backup lines supporting
this type of commercial paper, will distinguish
between guarantees and commitments. A backup
arrangement is considered a direct credit substitute
and, thus, is risk weighted at 100 percent if it
provides credit enhancement to the asset-backed
commercial paper program. In contrast, if the

116

Federal Reserve Bulletin • February 1992

facility is determined to be solely for liquidity
support and meets the definition of a short-term
commitment with a maturity of one year or less, as
outlined in the Federal Reserve Board's risk-based
capital guidelines, a zero conversion factor applies.

CONCLUSION

In recent years, commercial and investment bankers
have become involved with new asset securitization
programs at an increasing rate, and this trend is
likely to continue. A relatively new form of
securitization, asset-backed commercial paper appears to be growing in popularity, from the
perspective both of the investor and of the companies using these programs for financing. To date,
there are no indications that investors are reaching
a point of saturation with these commercial paper
issues. Rather, these issues appear to be a favored
means of providing investors with a method of
achieving even greater diversification of credit risk.
The market appears to be evolving in the direction
of programs that involve an SPE that accommodates
referrals of corporate customers from multiple
banks rather than from just one institution. Also,
the market seems to be moving toward having
several parties provide credit and liquidity enhancements. Mechanisms such as cash collateral, which
minimize the effects of a downgrade of the ratings
of the associated instruments of one party, seem to
be growing in popularity. These developments may
limit the risks associated with asset-backed commercial paper programs.
Asset securitization activities should remain
beneficial to banking organizations when conducted
in a prudent manner. Banking organizations, however, must carefully evaluate the risks inherent in
any new form of asset securitization and maintain
appropriate controls, systems, and other measures
to minimize these risks. Banking regulators will
continue to review new asset-backed security
structures as they develop in order to assess the
associated risks to banking organizations and to the
financial system.




SELECTED

BIBLIOGRAPHY

Board of Governors of the Federal Reserve System,
Capital Adequacy Guidelines. Washington: Board
of Governors, 1989.
Boemio, Thomas R., and Gerald A. Edwards, Jr.
'Asset Securitization: A Supervisory Perspective." Federal Reserve Bulletin, vol. 75 (October
1989), pp. 659-69.
Cook, Timothy Q., and Timothy D. Rowe, eds.
Instruments of the Money Market, 6th ed.
Richmond: Federal Reserve Bank of Richmond,
1986.
Duff & Phelps Credit Rating Agency, Performance
Trend Report. Chicago: D&PCRA, Second
Quarter 1991.
Duff & Phelps, Inc. Rating Approach for AssetBacked Commercial Paper. Chicago: D&PI,
March 1990.
Hurley, Evelyn M. "The Commercial Paper Market
since the Mid-Seventies," Federal Reserve
Bulletin, vol. 68 (June 1982), pp. 327-34.
"The Commercial Paper Market,"
Federal Reserve Bulletin, vol. 63 (June 1977),
pp. 523-36.
Kravitt, Jason H.P., ed. Securitization of Financial
Assets. Englewood Cliffs, N.J.: Prentice Hall
Law & Business, 1991.
Kuhn, Robert Lawrence, ed. Mortgage and Asset
Securitization. Homewood, 111.: Dow JonesIrwin, 1990.
Oster, Avi, and Barry Wood. "Commercial Paper:
Pooled Receivables' Robust Growth," Standard
& Poor's Creditweek (March 27, 1989),
pp. 89-91.
Stigum, Marcia. The Money Market, rev. ed.
Homewood, 111.: Dow Jones-Irwin, 1983.

117

Staff Studies
The staff members of the Board of Governors of the
Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range of
economic and financial subjects. From time to time
the studies that are of general interest are published
in the Staff Studies series and summarized in the
FEDERAL RESERVE BULLETIN. The analyses and
conclusions set forth are those of the authors and

STUDY

do not necessarily indicate concurrence by the
Board of Governors, by the Federal Reserve Banks,
or by members of their staffs.
Single copies of the full text of each study are
available without charge. The titles available are
shown under ''Staff Studies'' in the list of Federal
Reserve Board publications at the back of each
BULLETIN.

SUMMARY

EVIDENCE

ON THE SIZE OF BANKING

MARKETS

Stephen A. Rhoades—Staff, Board of

FROM MORTGAGE

LOAN RATES IN TWENTY

CITIES

Governors

Prepared as a staff study in the winter of 1990-91

Financial innovation and a surge in bank mergers
over the past decade have intensified the debate
over whether banking markets are still local. That
is, have the decade's developments caused banking
markets to grow beyond cities and rural localities to
become regional or national in scope? This question
is particularly important with respect to bank
mergers and acquisitions: If banking markets are
nonlocal, then supply and demand conditions in a
locality should not affect prices in that locality;
therefore, such local conditions would not be
relevant in the evaluation of the competitive effects
of any given merger.
This study conducts an empirical test of the issue
by examining whether local market concentration
and other local market conditions have a systematic
influence on mortgage interest rates, that is, on the
price of mortgages. A by-product of this analysis is
a test of the price-concentration relationship, which
is a hotly debated element in general antitrust
analysis. The study analyzes more than 13,500
observations of mortgage interest rate terms and
non-interest-rate terms covering a sixteen-week
period for twenty U.S. cities from late 1987 through
early 1988.




It has been argued that, of all banking services,
mortgage lending has been the most affected by the
developments tending to widen geographic markets.
A prominent claim in this regard is based on the
fact that such loans represent by far the largest and
longest-term financial service purchased by most
consumers. Consumers, therefore, presumably
would be willing to incur greater transactions costs
in searching for a low-cost mortgage than they
would in obtaining other financial services because
the returns to searching would likely be the greatest
in the case of the mortgage. This behavior should
generally expand the size of the geographic market
and drive mortgage interest rates toward a competitive level. Furthermore, in recent years, mortgages
have been packaged as the basis for mortgagebacked securities, which are sold in national
markets, as are mortgages themselves—for many
years, they have been sold off by local originators
to large "permanent investors" located in major
cities.
These arguments suggest that mortgage rates
should provide a relatively stringent test of the
proposition that the market for banking services is
local. That is, mortgage loans have probably been

118

Federal Reserve Bulletin • February 1992

subject to more forces conducive to a geographic
broadening of the market than most other bank
services; consequently, a finding that mortgage
rates are still determined by local market factors is
probably a good indication that the market for
consumer-oriented banking services in general is
local in nature. A finding that the mortgage market
is local would also be particularly striking because
of the nature of this study's statistical sample,
which consists entirely of urban areas. Urban locations typically have far more competitors than
nonurban areas, and competition is generally one of
the factors determining price differences between
markets. Thus, a sample characterized by a relatively high degree of competition should bias the
result of a test for price differentiation toward
uniformity of prices.
Data on the interest rates (prices) banks charge
for their loans are not generally available. Listings
of mortgage rates, however, are fairly common in
newspapers throughout the country. Therefore, to
construct a sample, this study recorded mortgage
rates for the sixteen weeks from September 20,
1987, through January 9, 1988, as they appeared in
weekly listings published in newspapers in twenty
cities. The twenty cities were selected more or less
randomly, although some choices were made to
achieve a degree of geographic diversity.
The listings covered 1,039 lending institutions,
which, over the sixteen weeks, produced 15,286
interest rate observations for fixed-rate, conventional
mortgages. The sample included all the major types




of mortgage originators in the United States—commercial banks, savings and loan associations,
savings banks, credit unions, and mortgage banks;
873 observations were not classified by type of
firm. Most of the newspaper listings of rates also
showed other loan terms: the percentage downpayment required, the length of the loan, points charged
(fee in terms of percentage points of the loan
amount), and the maximum loan to which the terms
apply. The exclusion of observations with missing
items left 13,525 observations available for the
statistical tests.
Both an ordinary-least-squares fixed-marketeffects model and an OLS model containing specific
market variables indicate that local market conditions influence mortgage interest rates. Market
growth and per capita income are the most important
variables, but the Herfindahl index, a measure of
market concentration, also plays a role after controlling for costs.
These results for mortgage loans suggest that
analyzing bank competition within local geographic
markets is still appropriate. That is, local market
conditions still make a difference. Moreover, the
results suggest that market concentration, as measured by the Herfindahl index, affects the prices
charged in local markets for mortgages. This would
appear to support the traditional market-power
explanation for the market structure-performance
relationship rather than the Demsetz efficiency
explanation.

119

Industrial Production and Capacity Utilization
Released for publication

on December

16

The index of industrial production decreased
0.4 percent in November, after three months of
little overall change. A drop in the output of motor
vehicles and parts and a strike at a major producer
of construction and mining equipment accounted
for much of the November decline. Industrial

output in other industries edged down, on balance,
last month. At 107.8 percent of its 1987 annual
average, total industrial production was 0.5 percent
below its year-ago level. Total industrial capacity
utilization decreased 0.5 percentage point in November, to 79.1 percent.
When analyzed by market group, the data show
that the production of consumer goods declined

Industrial production indexes
Twelve-month percent change

Twelve-month percent change
Products

J
1986

1987

1988

1989

1990

1991

1986

1987

1988

L

1989

1990

1991

Capacity and industrial production
Ratio scale, 1987 production =100
— Total industry
_

Capacity

—

^
—

^

^^
1

^ ^ N /
1

Ratio scale, 1987 production =100

— 140
_
120

Production

— Manufacturing

140
Capacity

120

100

" " "

/

— 80

1

1

1

1

1

Production
1

1

1

1

Percent of capacity

1979

1981

1983

1985

1987

1989

1991

1981

1983

1985

All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production.




— 80
1

1

1

1

Percent of capacity

1979

1987

100

1989

1991

120

Federal Reserve Bulletin • February 1992

Industrial production and capacity utilization
Industrial production, index, 1987=100'
Percentage change
Category

1991
19912
Aug.'

r

r

Sept.

Oct.?

NOV.P

Aug.

Total

108.0

108.2

108.2

107.8

-.1

.2

.0

-.1

.2

Nov. 1990
to
Nov. 1991

.0

Sept.'

Oct. P

NOV.P

-.4

-.5

Previous estimate

108.0

108.2

108.2

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

108.5
108.4
121.3
96.7
107.2

108.8
109.2
122.3
96.4
107.3

108.9
109.3
122.5
95.4
107.2

108.4
108.8
121.7
95.5
106.8

-.2
.1
-.9
-.2
.1

.3
.7
.8
-.3
.1

.0
.1
.2
-1.1
-.1

-.4
.5
-.7
.1
-.4

-.7
2.1
-1.0
-6.2
.0

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

108.4
107.8
109.0
101.3
110.7

108.9
108.4
109.5
100.8
108.9

108.9
108.2
109.7
100.3
109.0

108.3
107.3
109.6
100.3
109.9

.0
-.2
.4
-1.3
-.2

.5
.5
.4
-.5
-1.5

.0
-.1
.1
-.6
.1

-.5
-.9
.0
.0
.9

-.6
-2.4
1.7
-2.9
2.8
MEMO

Capacity utilization, percent
1990
Average,
1967-90

Low,
1982

High,
1988-89

1991

Nov.

Aug.r

Sept.r

Oct/

NOV.P

Capacity,
percentage
change,
Nov. 1990
to
Nov. 1991

Total

82.2

71.8

85.0

81.6

79.8

79.8

79.6

79.1

2.6

Manufacturing
Advanced processing
Primary processing
Mining
Utilities

81.5
81.1
82.4
87.4
86.8

70.0
71.4
66.8
80.6
76.2

85.1
83.6
89.0
87.2
92.3

80.7
79.6
83.2
90.6
83.8

78.6
77.5
81.2
88.5
85.9

78.8
77.7
81.2
88.0
84.5

78.6
77.5
81.1
87.5
84.5

78.0
76.9
80.7
87.5
85.1

2.9
3.2
2.1
.6
1.2

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

0.5 percent in November, reflecting a curtailment in
the output of autos and trucks and a small decrease
in the production of nondurable consumer goods,
such as food and clothing. The output of other
consumer durables, which include appliances and
other goods for the home, has changed little on
balance since July. The output of business equipment fell 0.7 percent in November, with the drop in
motor vehicles and the strike-related decline in
construction and mining equipment more than
accounting for the loss.
Elsewhere in business equipment, overall production has increased a bit in recent months because
of a pickup in the output of information processing
equipment, particularly computers; however, the
production of industrial equipment, even after
allowing for the effect of the strike, has continued to fall. The output of construction supplies
changed little in November after having fallen
since June. The output of materials decreased




r Revised,
p Preliminary.

0.4 percent in November, mainly because of a cut
in production of motor vehicle parts and supplies;
the production of other materials was little changed,
on average.
When analyzed by industry group, the data show
that manufacturing production decreased 0.5 percent in November, and capacity utilization at
factories fell 0.6 percentage point to 78.0 percent.
Operating rates for both primary and advancedprocessing industries decreased last month, and
declines were widespread. The utilization rate for
advanced-processing industries recovered only 1
percentage point between March (its trough) and
July, and in November it fell back to near its March
level; much of the recent weakness has been
concentrated in transportation equipment, electrical
machinery, instruments, and furniture.
Despite the recent declines, the operating rate for
primary-processing industries has remained well
above its spring trough. The output of iron and steel

Industrial Production and Capacity Utilization

increased for the fifth consecutive month, but
production in most other primary-processing industries held steady or fell last month.




121

Output at mines was unchanged in November,
and an increase of more than 1 percent in the output
of electric utilities boosted utilities production.

122

Statement to the Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Ways and Means, U.S.
House of Representatives, December 18, 1991
I appreciate the invitation to participate in these
important hearings on tax policy. In your announcement, you made it clear that you intended
to engage in a comprehensive review of the
economic issues surrounding fiscal policy today,
involving not only short-run, cyclical considerations but also the implications of taxation for the
longer-range growth of the economy. I applaud
this broad scope; I believe that it is essential if we
are to have the assurance that any action taken
will truly serve the interests of the nation.
I would like to devote a few minutes to an
assessment of the current economic situation.
Obviously, we must know the nature of the
problems we confront before we formulate a
solution.
The upturn in business activity that began
earlier this year clearly has faltered. It is apparent that the economy is struggling and that some
strong forces have been working against moderate cyclical revival. Now that we are well past
the period of gyrations associated with the crisis
in the Persian Gulf, we can better gauge the
strength of the underlying disinflationary forces
that were active well before the economy tilted
into recession in the autumn of 1990.
During the 1980s, large stocks of physical
assets were amassed in a number of sectors,
largely financed by huge increases in indebtedness. In the business sector, commercial real
estate is the most obvious example, with the
accumulation of vast amounts of office and other
commercial space—space that goes well beyond
the plausible needs in most locales well into the
future. Our financial intermediaries, not just depository institutions but other lenders as well,
lavished credit upon developers, and they are
paying the price today in the form of loan losses




and impaired capital positions. The 1980s were
also characterized by a wave of mergers and
buyouts—purchases of corporate assets, often
involving substitution of debt for equity and
anticipating the sale of assets at higher prices. I
need not recount for you the subsequent disappointments and the fallout for holders of "below
investment grade" bonds and related loans.
In the household sector, purchases of motor
vehicles and other consumer durables ran for
several years at remarkably high levels and were
often paid for with installment or other debt that
carried extended maturities. In some parts of the
United States, the household spending boom
reached to the purchase of homes, not simply for
essential shelter but as speculative investments—and often involving borrowing that constituted a heavy call on current and expected
family incomes. The aftermath of all this activity
is a considerable degree of financial stress in the
household sector.
The bottom line of this brief account is that the
national balance sheet has been severely
stretched. Although most analysts, of course,
were aware of the increasingly disturbing trends
of rising debt and elevated corporate leverage, it
was not clear that these burdens had as yet
reached a magnitude that would restrain the U.S.
economy from a moderate cyclical recovery in
1991.
Indeed, as inventory liquidation abated at midyear, output moved up and closed the gap with
the consumption of goods and services in much
the same manner evident in the early stages of
recoveries in other recent business cycles. A
range of leading indicators still were flashing
positive signals on the economy's prospects.
By late summer, however, with half the recession losses recovered, it became clear that the
cumulative upward momentum that had characterized previous recoveries was absent. The
growing propensity of households to pare debt
and of businesses to reduce leverage was a signal

123

that the balance sheet restraints, feared by many
for a long time, had indeed taken hold, working
against the normal forces of economic growth.
These events do not necessarily mean that a
prolonged period of economic weakness is inevitable, but they do mean that policymakers must
consider these unusual forces when shaping their
response in the current situation. It is essential
that the direction of public policy be well targeted to the nature of the problem that it is
seeking to ameliorate.
For example, lower interest rates can reduce
debt service burdens and their claim on current
spendable incomes. Moreover, severely stretched
private sector balance sheets must be reliquified
if the economy is to return to normal growth. But
only in the context of prudent, noninflationary
expansion of money and credit are such improvements likely to be lasting.
In concept, private balance sheet liquification
also could be facilitated by tax cuts for individuals or corporations if they are largely saved by
the recipients. In effect, public debt would displace private debt on our nation's balance sheet.
But if the markets were to perceive such policy
initiatives as undermining long-term fiscal discipline, long-term interest rates would rise and
debt service burdens again would mount. The
heavy demand that the government is already
placing on the credit markets is a significant
factor in the persistence of historically high real
bond yields and mortgage rates, which is making
the process of private balance sheet adjustment
all the more difficult.
The inference I draw from this is that the
Congress should approach with great caution any
proposal that would expand the structural budget
deficit. At a minimum, care should be taken to
ensure that any short-run stimulative action does
not imply a widening of the deficit over the longer
term.
Obviously, any policy that bolstered the asset
side of the nation's private balance sheet or
eased debt pressures without violating the goals
of long-term federal budget balance or involving
imprudent money creation could be of significant
assistance in our current difficulties.
But there appears to be more that is required.
It is certainly the case that stretched balance
sheets are restraining expansion, and some relief




is necessary to foster a resumption of sustained
growth. But I have a suspicion that there is more
to the story than that. Consumer confidence,
which rebounded in a normal fashion as the
cyclical recovery began in the spring, fell back as
the recovery stalled, exacerbating the problems.
Consumers appear to be more apprehensive
than one might expect, given the broad macroeconomic circumstances. For example, the level
of unemployment and particularly the layoff rate
are well below those levels and rates experienced
in periods of economic weakness; this fact would
not seem to square with the deep concerns
expressed in surveys about perceived labor market conditions.
It is true that homeowners sense some contraction, however small, in the market value of their
most important asset, the equity in their homes.
But it surely is no worse a concern today than it
was in the spring. If anything, the data on home
prices suggest it would be less so.
I suspect that what concerns consumers, and
indeed everyone, is that the current pause may
be underscoring a retardation in long-term
growth and living standards. So long as the
recovery proceeded, this latent concern did not
surface, but as balance sheet constraints held the
recovery in check, earlier worries about whether
the current generation will live as well as previous ones resurfaced.
Such anticipations certainly need not be realized if we follow appropriate policies, and this
suggests strongly that any current policy initiatives should focus on some key fundamentals.
Indeed, firm reliance on policies directed toward
longer-term stability and incentives is likely to do
as much, or more, for short-term economic expansion as a "quick fix."
What are the current restraints on growth and
how can they be addressed? I, and others, have
long argued before this committee that the
essential shortcoming of this economy is the
lack of saving and investment. It is here that our
major policy focus should rest. Investment is
the key to enhance productivity and higher
living standards. Although we have seen some
improvement in productivity trends in the past
decade, our performance leaves much to be
desired—a fact reflected in our loss of international competitiveness in many industries and

124

Federal Reserve Bulletin • February 1992

in the disappointing real incomes of too many
U.S. families.
Bolstering the supply of saving available to
support productive private investment must be a
priority for fiscal policy, and in that regard, reducing the call of the federal government on the
nation's pool of saving is essential. Federal expenditure restraint is, in turn, crucial to this goal.
We also must recognize that private decisions
about saving and investing can be powerfully
affected by how various economic and financial
transactions are taxed. Establishing the optimal
structure of taxation is no simple matter, and
there are inevitable conflicts among goals.
I would hope that any changes in taxation
passed by the Congress in the coming months
would give a heavy weight to promoting the
capital formation process. In general, special
attention should be given to the issue of the
taxation of capital income. Our current system
already does provide some incentives for saving
in certain forms, such as retirement accounts or
home equity, through favorable treatment of
capital income. But in other areas the incentives
are nonexistent or, worse, negative. As a more
general matter, the structure of corporate taxation has long been recognized as distortive and as
an ingredient in the movement toward excessive
leverage that we witnessed in the past decade.
As I have argued previously before this committee, a reduction in the capital gains tax would
be quite helpful. It is especially important considering our current difficulties with weak real
estate property values. A cut in the capital gains
tax would buoy property values, which would
alleviate, in part, the collateral shortfalls that
plague our financial institutions. This could induce greater financial intermediation and balance
sheet liquification.
How far, and how fast, we can move toward a
tax structure that is more conducive to capital
formation is ultimately a political decision. My
purpose this morning is not to advocate a particular agenda but rather to suggest some principles




that I thank are relevant to your deliberations.
Although I believe those principles—which relate basically to how fiscal policy can best contribute to the achievement of productivity,
growth, and higher living standards—are germane at all times, they may be particularly
important in today's economic circumstances.
Traditional fiscal stimuli might temporarily boost
aggregate demand. But, if you accept the view
that the concern of the American people for our
long-term future is at the root of our problem,
then other instruments of policy might well be
more effective.
Market forces are already addressing our
stretched balance sheets. Record issuance of
equity in our capital markets recently is contributing to deleveraging. And large bond issues are
funding short-term debt and removing some of
that strain. Finally, lower interest rates, as I
indicated earlier, are lowering the debt service
burden.
We have made a good deal of progress in the
balance sheet adjustment process, and the payoff
in the form of an easing of unusual restraint
should begin to become evident in the reasonably
near future. U.S. industry is striving to enhance
efficiency and competitiveness. The resulting increases in productivity, more than anything else,
should dissipate the concerns of the American
people about our economic future. Tax policy, in
my judgment, should endeavor to reinforce these
underlying trends.
In summary, then, an analysis of both the
special factors affecting the economy at present
and of the requirements for healthy growth of
productivity and for international competitiveness over the longer run suggests that any
changes made to the tax code should give considerable emphasis to the encouragement of longterm economic growth through incentives for
saving and investment. Above all, we must not
lose sight of the crucial need to eliminate the
structural deficit in the federal budget over the
coming years.
•

125

Announcements
CHANGE IN THE DISCOUNT

RATE

The Federal Reserve Board announced on December 20, 1991, a reduction in the discount rate of
1 percentage point from AVi percent to Vh percent,
effective immediately.
The reduction was made on the basis of
cumulating evidence, notably monetary and credit
conditions, as well as current economic conditions,
that point to a receding of inflationary pressures.
This action, together with the cumulative effects
already in train from previous actions, should
provide the basis for a resumption of sustained
economic expansion.
This reduction, in part, will realign the discount
rate with short-term market interest rates.
In making the change, the Board voted on recommendations submitted by the boards of directors
of the Federal Reserve Banks of New York and
Chicago. The Board subsequently approved similar
actions by the boards of directors of the Federal
Reserve Banks of Boston, Philadelphia, Cleveland,
Richmond, Atlanta, Kansas City, Dallas, and San
Francisco, also effective December 20, and by the
boards of directors of the Federal Reserve Banks of
Minneapolis, effective December 23, and of St.
Louis, effective December 24.

CRA EXAMINATION RATINGS NOW
ON A WEEKLY BASIS

AVAILABLE

The Federal Reserve Board announced on December 10, 1991, that it will publish its Community
Reinvestment Act (CRA) examination ratings of
state member banks on a weekly basis.
This action is in accord with a recommendation
to bank regulatory agencies made by the Federal
Financial Institutions Examination Council. The
CRA ratings now appear in a weekly Board release
entitled, "Actions of the Board: Applications and
Reports Received" (H.2), beginning with the release
for the week ending November 22, 1991.



In addition, this release will continue to provide
the names of the institutions, their city and state,
and the date of each examination. Information will
appear on this release only for those financial
institutions whose CRA examinations became
available during the week indicated on the H.2.
Only CRA examinations conducted on or after July
1, 1990, the effective date of public disclosure
mandated by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA),
have appeared on the release.

APPOINTMENTS TO THE
THRIFT INSTITUTIONS ADVISORY

COUNCIL

The Federal Reserve Board announced on December 19, 1991, the names of four new members
appointed to its Thrift Institutions Advisory Council
(TIAC) and designated a new President of the
Council for 1992.
The Council is an advisory group made up of
twelve representatives from thrift institutions. The
panel was established by the Board in 1980 and
includes representatives from savings and loans,
savings banks, and credit unions. The Council
meets at least four times each year with the Board
of Governors to discuss developments relating to
thrift institutions, the housing industry, mortgage
finance, and certain regulatory issues.
Lynn W. Hodge, President and CEO of United
Savings Bank, Inc., Greenwood, South Carolina,
will serve as President.
The four new members, named for two-year
terms that began January 1, are the following:
Vance W. Cheek, President and CEO, Home Federal
Bank, FSB, Johnson City, Tennessee.
Beatrice D'Agostino, President and CEO, New Jersey
Savings Bank, Somerville, New Jersey.
Thomas J. Hughes, President, Navy Federal Credit
Union, Merrifield, Virginia.

126

Federal Reserve Bulletin • February 1992

Thomas R. Ricketts, Chairman, President, and CEO,
Standard Federal Bank, Troy, Michigan.

Edmond M. Shanahan, President and CEO, Bell
Federal S&L Association, Chicago, Illinois.

to its staff commentary to Regulation B (Equal
Credit Opportunity). The proposed interpretations
address an issue involving the relationship between
Regulation B and Regulation C (Home Mortgage
Disclosure) with regard to data collection on loan
applications received by creditors through brokers
or other persons. Comment is requested by February 14, 1992.
The Federal Reserve Board on December 26,
1991, requested public comment on whether to
revise its Truth in Lending regulations dealing with
the disclosure of any discounted initial rate and the
payment examples for home equity lines of credit.
Comment should be received by February 28.
The Board also is seeking comment on a separate
proposal to resolve a conflict between the home
equity rules and provisions of the Federal Reserve
Act and Regulation O (Loans to Executive Officers
of Member Banks).

Woodbury C. Titcomb, President and CEO, Peoples
Bancorp of Worcester, Inc. and Peoples Savings Bank,
Worcester, Massachusetts.

MEETING

The other members of the Council are the following:
Daniel C. Arnold, Chairman and President, Farm &
Home Financial Corporation, Houston, Texas.
James L. Bryan, President and CEO, TEXINS Credit
Union, Richardson, Texas.
Richard A. Larson, Chairman and CEO, West Bend
Savings Bank, West Bend, Wisconsin.
Preston Martin, Chairman and CEO, WestFed Holdings, Inc., San Francisco, California.
Richard D. Parsons, President and CEO, The Dime
Savings Bank of New York, FSB, New York City.

ON APPLICATION

BANKAMERICA

SECURITY PACIFIC
DELAY IN THE EFFECTIVE DATE OF THE
REAL ESTATE APPRAISAL

REGULATION

The Federal Reserve announced on December 26,
1991, a delay in the effective date of its real estate
appraisal regulation regarding the mandatory use of
state-licensed or certified appraisers in federally
related transactions for financial institutions regulated by the Board.
The change in the effective date to December 31,
1992, conforms to recent amendments made by the
Federal Deposit Insurance Corporation Improvement Act of 1991 to the real estate appraisal
provisions contained in Title XI of the Financial
Institutions Reform, Recovery, and Enforcement
Act of 1989.
Any requirements of state law regarding the use
of certified or licensed appraisers remain unaffected
by the Board's action.

PROPOSED

ACTIONS

The Federal Reserve Board issued for public
comment on December 23,1991, proposed revisions




OF

CORPORATION

TO

ACQUIRE

CORPORATION

The Federal Reserve Board announced on December 23, 1991, that a public meeting would be held
in Phoenix, Arizona, on January 15, 1992, in
connection with the application of BankAmerica
Corporation, San Francisco, California, to acquire
Security Pacific Corporation, Los Angeles, California. The Board had announced on December 20,
1991, that public meetings would be held in Los
Angeles, San Francisco, and Seattle, Washington,
during the week of January 13, 1992.
The purpose of the meeting was to collect
information concerning the convenience and needs
of the communities to be served by the proposal,
including the records of performance of the institutions under the Community Reinvestment Act.

CHANGES IN BOARD

STAFF

The Board of Governors approved the following
changes in the Division of International Finance,
effective December 6, 1991:
David H. Howard, formerly Deputy Associate
Director, became Senior Adviser.

Announcements

Dale W. Henderson, formerly Assistant Director,
became Associate Director.
The Board also announced on December 20,
1991, the appointment of John J. Mingo as Adviser




127

in the Division of Research and Statistics. Before
leaving the Board in 1979, Mr. Mingo had been a
Senior Research Division Officer in the Division of
Research and Statistics.

128

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON NOVEMBER 5,

1. Domestic Policy

1991

Directive

The information reviewed at this meeting suggested
that economic activity had turned sluggish after
registering considerable gains around midyear.
Consumer spending for goods had been lackluster
recently, and businesses remained cautious about
investing in increased production capacity or
inventories. Industrial production had flattened out,
nonresidential construction had moved sharply
lower, and housing construction had lost much of
its forward momentum. Price inflation evidently
remained on a gradual downtrend.
After falling sharply in the first half of the year,
total nonfarm payroll employment rose slightly in
the third quarter and was unchanged in October.
Sizable job gains in the services sector, notably in
health and business services, were offset by losses
elsewhere. Manufacturing employment declined
further; durable goods industries bore all of the
loss. Job cutbacks in construction and retail trade
were larger in October than they had been in recent
months. Also, the small September increase in
average weekly hours worked by production or
nonsupervisory workers was reversed in October.
The civilian unemployment rate edged back up to
6.8 percent.
Industrial production was little changed over
August and September after sizable gains in earlier
months; available data indicated that production
would remain flat in October. Sluggishness had
been evident in most components of the index since
July; abstracting from the output of motor vehicles
and parts, which had been subject to wide swings,
the production of consumer goods and construction
supplies had been rising much less rapidly since
midyear while the output of business equipment
had not expanded much since reaching its low last




March. Total industrial capacity utilization edged
lower in September.
Real personal consumption expenditures advanced considerably further in the third quarter,
partly reflecting a sharp rise in purchases of motor
vehicles. However, outlays for non-auto goods
weakened in August and September, and partial
data for October suggested a slowing in sales of
motor vehicles in that month. In addition, indicators
of consumer confidence, which had remained at
subdued levels since the end of the war in the
Persian Gulf, had deteriorated significantly in
October. Housing starts declined in September after
rising substantially on balance in earlier months of
this year. Sales of both new and existing houses had
dropped recently despite lower mortgage rates and
favorable price developments.
Shipments of nondefense capital goods rose for a
second straight month in September. For the third
quarter as a whole, real business spending for
computers, aircraft, and motor vehicles registered a
sizable gain while outlays for industrial machinery
fell further. Recent data on orders pointed to some
further moderate expansion in business spending
for equipment in the near term. Nonresidential
construction continued to contract at a rapid rate as
outlays for all major types of structures, but
particularly for commercial buildings, fell sharply.
Available information on new contracts and commitments suggested that the rate of decline for
non-office construction activity might slow in
coming months.
The pace of inventory liquidation by businesses
slowed in July and August from the substantial
second-quarter rate. Ratios of inventories to sales
edged down at manufacturing and non-auto retail
firms. In September, stocks held by manufacturers
increased.
The nominal U.S. merchandise trade deficit
widened appreciably in August. For the July-August
period, the trade deficit was significantly larger

129

than its average rate in the second quarter, reflecting
a strong expansion in the value of imports and a
small reduction in the value of exports. The increase
in imports was entirely in consumer goods and
automotive products; other major trade categories
registered small declines. Part of the drop in exports
resulted from a partial reversal of a sharp secondquarter increase in exports of aircraft and parts.
Indicators of economic activity in the major foreign
industrial countries suggested continued weak
growth on balance in the third quarter. The rate
of growth in western Germany and Japan was
considerably slower in the second and third quarters
than earlier in the year, although capacity utilization
rates remained high in both countries. In some
other major countries, economic activity was slowly
and unevenly recovering from a period of recession.
Producer prices of finished goods were little
changed in September; a firming of prices of
finished energy goods was offset by lower food
prices. For finished goods other than food and
energy, producer prices had advanced thus far in
1991 at a pace appreciably below that for 1990. At
the consumer level, the September rise in prices
was larger than the increases in the prior few
months. Excluding food and energy items, consumer
prices advanced in September at the same elevated
rate as in the previous three months; however, for
1991 to date, nonfood, non-energy consumer prices
had increased at a slightly slower pace than in
1990. Total hourly compensation for private industry workers rose at a somewhat slower rate in the
third quarter than in the first half of the year. For
the year to date, wage increases had slowed appreciably, but benefit costs had continued their rapid
rise.
At its meeting on October 1,1991, the Committee
adopted a directive that called for maintaining the
existing degree of pressure on reserve positions and
for giving special weight to potential developments
that might require some easing during the intermeeting period. Accordingly, the directive indicated
that slightly greater reserve restraint might be
acceptable or slightly lesser reserve restraint would
be acceptable during the intermeeting period depending on progress toward price stability, trends
in economic activity, the behavior of the monetary
aggregates, and developments in foreign exchange
and domestic financial markets. The reserve conditions contemplated at this meeting were expected to




be consistent with a resumption in the growth of
both M2 and M3; these aggregates were expected
to expand at annual rates of around 3 percent and
1V2 percent respectively over the three-month period
from September through December.
Over most of the intermeeting period, open
market operations were directed toward maintaining
the existing degree of pressure on reserve positions.
At the end of October, however, a slight easing of
reserve conditions was implemented; this action
was taken in response to signs of a weaker-thanexpected economic recovery and flagging consumer
and business confidence. Just before the intermeeting period, adjustment plus seasonal borrowing had
averaged around $340 million. During the period,
several technical decreases were made to expected
levels of adjustment plus seasonal borrowing to
reflect the usual autumn pattern of ebbing seasonal
credit needs. By the end of the intermeeting period,
following the slackening of seasonal funding needs
and the easing of reserve conditions, the volume of
borrowing had declined to around $125 million.
The federal funds rate remained near 5XA percent
during most of the intermeeting period but slipped
to about 5 percent after the easing of reserve
conditions.
Over the early weeks of the intermeeting period,
other short-term interest rates declined somewhat
as market participants interpreted incoming data as
indicating a sluggish economy. At the same time,
long-term rates moved considerably higher in
response to the release of disappointing statistics on
consumer prices and concerns stemming from
discussions of possible measures of fiscal stimulus
that would increase the federal deficit and borrowing
needs. Subsequently, short-term rates fell further
and long-term rates retraced a portion of their rise
as markets reacted to information suggesting
additional economic weakness and reduced pressure
on labor costs, and to actual as well as prospective
further easing of monetary policy. The prime rate
remained unchanged at 8 percent over the period,
but primary-market yields on mortgages fell to
their lowest levels since 1977. Most stock price
indexes were slightly higher on balance.
The trade-weighted value of the dollar in terms
of the other G-10 currencies fluctuated in a fairly
narrow range over the intermeeting period but
declined slightly on balance. The dollar was
generally higher over the first half of the period but

130

Federal Reserve Bulletin • February 1992

then weakened in response to growing evidence of
a sluggish U.S. economy and consequent market
anticipation of an easing of U.S. monetary policy.
The dollar was up a little against the mark, in large
part reflecting concerns that the Soviet Union might
default on its foreign debt, much of which is owed
to or guaranteed by the German government. The
yen was strong on balance, in part because of
continuing indications of growing Japanese trade
surpluses.
M2 expanded slowly in October after shrinking
on balance over the previous three months. The
turnaround was consistent with the Committee's
expectations for the fourth quarter and reflected in
part the rapid growth in the liquid-deposit components of this monetary aggregate. As the Committee
also had expected, the pickup in M2 showed
through to M3, which posted its first monthly
increase since May. For the year through October,
expansion of both M2 and M3 was estimated to
have been at the lower ends of the Committee's
annual growth ranges.
The staff projection prepared for this meeting
pointed to a continuing recovery in economic
activity, but recent reports on business and consumer
confidence combined with other information had
led to an appreciable markdown in the projected
rate of expansion for the current quarter and to a
lesser markdown for the first quarter of 1992.
Economic growth was projected to pick up by the
spring of next year, but as in earlier staff forecasts,
it was expected to remain subdued in comparison
with past cyclical experience and the risks of a
different outcome continued to be seen as predominantly on the downside. Increases in the construction of single-family housing and in business
spending for equipment, along with a shift from
inventory liquidation to limited accumulation, were
expected to give impetus to the expansion during
1992. As in earlier forecasts, real federal government purchases were projected to fall somewhat
next year, with defense expenditures more than
accounting for the decline, and fiscal adjustments at
the state and local levels and a continuing decline
in commercial construction were expected to be
persisting sources of restraint on aggregate demand.
Significant though diminishing slack in labor and
product markets was projected to induce a further
decline in the underlying rate of inflation over the
next several quarters.




In the Committee's discussion of current and
prospective economic developments, the members
commented on widespread indications of deteriorating business and consumer confidence and on
evidence that the recovery in business activity had
weakened since early summer. Nonetheless, despite
quite negative anecdotal reports from many parts of
the country, the members generally concluded that
the available economic data appeared consistent
with continuing, albeit sluggish, expansion in overall
economic activity. Views differed to some extent
with regard to the risks to a continuing recovery. A
number of members expressed concern about the
potential for some further softening, especially in
light of the vulnerability of the expansion stemming
from the troubled condition of many financial
institutions and the heavy debt burdens of numerous
business firms and individual households; other
members saw the risks as more evenly balanced
and perhaps even tilted marginally to the upside.
While the performance of the economy was likely
to remain relatively lackluster over the nearer term
and the risks of a downturn would be greatest
during the next quarter or two, many of the members
judged a resumption of growth next year at a pace
broadly in line with the staff forecast to be a
reasonable expectation. In this regard, some noted
that much of the stimulus from the easing in
monetary policy over the course of recent months
had not yet been felt in the economy. Many of the
members emphasized that the prospects for appreciable progress toward price stability were quite
favorable, though some expressed reservations about
the extent of the progress that could be expected
over the forecast horizon.
Several members referred to the continuing
adjustments by financial institutions and many
business firms to the financial excesses of the past
decade and the greater-than-expected downward
pressure that these adjustments appeared to be
exerting on the expansion. The efforts to reduce
debt exposure and rebuild equity positions were
necessitated by the effects on balance sheets of the
contraction in the value of a variety of assets,
notably in the structurally troubled sectors of the
economy such as commercial real estate, and the
failure of other assets to appreciate as expected.
The rebuilding of balance sheets augured well for
the future financial health and stability of the
economy, but members commented that an ex-

Record of Policy Actions of the Federal Open Market Committee

tended period would be required before that process
could be completed. In the interim, the retrenchment
that was involved implied reduced propensities to
spend and constrained growth in business activity.
One facet of the adjustment process was greater
caution on the part of institutional lenders. Many
business borrowers continued to complain about
the difficulty of obtaining credit, while institutional
lenders stressed the lack of demand from qualified
borrowers.
In the course of the Committee's review of
business developments in different regions, members continued to report uneven conditions ranging
from modest growth to some further decline in
regional activity, but business and consumer
sentiment was described as almost universally
negative. It was unclear to what extent the drop in
confidence reflected the disappointing pace of the
economic recovery so far or was a harbinger of
further weakening in economic activity. Members
commented that surveys of consumer confidence
had to be viewed with caution because they had
tended in the past to be coincident rather than
leading indicators of economic activity. More
generally, bearish sentiment, though perhaps more
muted, had not been an unusual occurrence in the
early stages of past business recoveries.
While the potential sources of economic stimulus
were subject to uncertainty and recent developments
heightened concerns that the rate of economic
expansion would remain below a desirable pace for
an extended period, the members generally anticipated that improvement in key areas of the economy, notably certain interest-sensitive sectors and
business inventories, eventually would provide the
impetus needed to promote at least moderate growth
in overall business activity. In the critical area of
consumer demand, members observed that consumer caution reflected not only concerns about
employment prospects and, in the case of many
households, relatively heavy debt burdens, but also
appeared to stem from actual or perceived declines
in the market value of residences. Consumer
expenditures on services were continuing to grow,
though at a relatively slow pace, but spending on
goods had edged lower over the course of recent
months and many retailers reported that they
expected very weak sales during the approaching
holiday season. With regard to the longer-term
outlook for consumer expenditures, some pickup in




131

interest-sensitive spending for durable goods was
seen as a likely prospect that would have feedback
effects on the demand for inventories and production.
According to available data and reports from
around the country, inventories generally appeared
to be near acceptable levels, and members continued
to anticipate that a further swing from inventory
liquidation to modest accumulation would provide
some stimulus to the economy over the year ahead.
The members recognized that a number of developments argued against a typical surge in inventory
investment during the recovery, including the now
widespread practice of "just-in-time" inventory
management. Nonetheless, despite sluggish demand,
the pace of inventory liquidation appeared to have
slowed in the third quarter, and there were scattered
reports of efforts by some manufacturers to increase
their inventories.
The construction of new housing also appeared
likely to play a positive, though possibly limited,
role in helping to sustain the recovery. Recent
indicators of home sales and housing starts were
disappointing, but the demand for new singlefamily homes would respond over time to the
declines that had occurred in mortgage interest
rates. Some of that demand might be postponed,
however, until borrowers were persuaded that
interest rates had bottomed out. On the negative
side, commercial construction activity would probably remain depressed for an extended period as
excess capacity in many parts of the country
gradually was absorbed. With regard to business
spending for new equipment, real outlays were
indicated to have risen, especially for computers,
and this sector could be expected to provide ongoing
strength, especially once the expansion was well
under way.
In their comments concerning the outlook for
inflation, members observed that many of the
recent statistical indicators and especially the
anecdotal evidence from around the country provided the basis for considerable optimism that
progress was being made toward price stability.
Developments on the financial side, including low
levels of business and consumer borrowing and an
extended period of limited monetary growth,
reinforced expectations of an ongoing movement
toward stable prices. Members also noted that the
information on wages was consistent with a
downtrend in labor costs despite still substantial

132

Federal Reserve Bulletin • February 1992

upward pressures on employee benefit costs. Some
members cautioned, however, that an appreciable
inflationary risk remained in the economy. While
inflationary expectations might well be waning, as
evidenced in part by the behavior of equity markets,
the level of long-term interest rates suggested that
inflation concerns had not disappeared.
In the Committee's discussion of an appropriate
policy for the intermeeting period ahead, a majority
of the members indicated that they could support a
proposal to ease reserve conditions slightly at this
time and to bias the directive toward possible
further easing later in the intermeeting period. The
members recognized that monetary policy had been
eased considerably over the course of recent months,
including a decision to reduce reserve pressures at
the end of October, and that all of the stimulus from
the earlier actions had not yet been felt in the
economy. Nonetheless, in the view of many
members further modest easing was desirable at
this point to provide some added insurance against
the downside risks in the economy. Such a policy
move would help counter the deterioration in
business and consumer confidence, and it might
also encourage some decline in longer-term interest
rates. Under current economic and financial conditions, this easing would pose negligible risks of
deflecting inflation from its downward path. Continuing weakness in the monetary aggregates
reinforced the need for easier reserve conditions.
There was considerable discussion regarding the
possible advantages of a somewhat stronger move
at this juncture. A ¥z percentage point reduction of
the discount rate was pending at several Federal
Reserve Banks, but the Board of Governors had not
yet made a decision with regard to those proposals.
It was noted during this discussion that the Federal
Reserve had tended to implement its easing of
monetary policy since the spring of 1989 through
a series of small policy actions. That approach
generally appeared to have been appropriate, but
a number of members expressed concern that
further small moves would lack the visibility that
was needed in present circumstances. If reserve
pressures were to be reduced only modestly, this
action should be accompanied in the view of
many members by Board approval of the pending
discount rate proposals to signal clearly that
monetary policy was moving against the weakening
tendencies in the economy. An accompanying




reduction in the discount rate also was seen as
providing further encouragement to a drop in the
prime rate.
Other members expressed reservations about the
need for substantial easing, and two indicated that
they could not support any easing through open
market operations at this time. Some questioned
whether monetary policy actions could have a
constructive influence on business and consumer
confidence under prevailing circumstances. Indeed,
appreciable further easing, or any easing, would
incur too much risk of reviving inflationary concerns
with adverse consequences for longer-term debt
markets. While none of these members wanted to
rule out the potential need to ease monetary policy
significantly further, they preferred to pause and
wait for additional evidence before such action was
taken, especially given the further stimulus that
could be anticipated from previous easing moves.
Concern also was expressed that the Committee
might not recognize the need to reverse its course
and tighten policy on a timely basis should
inflationary pressures tend to revive later.
Members noted that the expansion of M2
appeared to have resumed in October, though at a
pace that kept the aggregate only at the bottom of
the Committee's range for the year. According to
an analysis prepared by the staff for this meeting,
M2 was likely to continue to expand slowly over
the balance of the year, despite the effects of earlier
policy easing actions, and for the year as a whole
M2 growth was expected to average close to the
lower end of the Committee's range. Some members
commented that an easing in reserve conditions
would not only improve slightly the odds that M2
growth would end the year within the Committee's
range but would also help to put M2 on a desirable
growth path by early next year. While the relationship between money growth and economic
activity was subject to substantial uncertainty in the
short run, they saw a marked advantage, in terms of
the continuity of monetary policy and its credibility,
for the Committee to more aggressively foster
growth of M2 within the annual range.
With regard to possible adjustments to the degree
of reserve pressure during the intermeeting period,
most of the members who favored some immediate
easing of reserve conditions also supported a
directive that remained biased toward further easing.
However, some also indicated that if the Board

Record of Policy Actions of the Federal Open Market Committee

were to approve the pending proposals to reduce
the discount rate, the intermeeting instruction should
then be viewed as symmetrical.
The members discussed at some length the
appropriate timing of the Committee's easing action.
Starting that afternoon and continuing over the next
two days, the Treasury would be conducting its
quarterly auctions of notes and bonds. In view of
this, an immediate policy move would come as a
surprise to many participants in financial markets,
although such a move shortly after the auctions was
widely anticipated. An immediate move, even in
the easing direction, could have an adverse effect
on some Treasury market participants, with potentially unsettling consequences for current and future
Treasury financings. The members agreed that in
general it was preferable to avoid policy moves
during Treasury refundings, but most felt that the
contemplated easing move should not be delayed
for any significant period. They concluded that, on
balance, it would be less misleading to take action
immediately rather than to wait until the Treasury
auctions were completed later in the week. It was
noted in this connection that a prompt easing of
reserve conditions, and any accompanying Board
action to approve a lower discount rate, would
become known to outside observers after the auction
of the shorter-term Treasury note but before the
auctions of the intermediate- and long-term Treasury
issues.
At the conclusion of the Committee's discussion,
all but two of the members indicated that they
favored or could accept a directive that called for
an immediate slight easing in the degree of pressure
on reserve positions. These members also noted
their acceptance of a directive that included a bias
toward possible easing during the intermeeting
period. Accordingly, the Committee decided that
slightly greater reserve restraint might be acceptable
during the intermeeting period or slightly lesser
reserve restraint would be acceptable depending on
progress toward price stability, trends in economic
activity, the behavior of the monetary aggregates,
and developments in foreign exchange and domestic
financial markets. The reserve conditions contemplated at this meeting were expected to be consistent
with growth of M2 and M3 at annual rates of
around 3 percent and 1 percent respectively over
the three-month period from September through
December.




133

At the conclusion of the meeting the following
domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting portrays a
sluggish economy and a marked deterioration in business
and consumer confidence. Total nonfarm payroll employment was unchanged in October after rising slightly over
the third quarter, and the civilian unemployment rate
edged back up to 6.8 percent. Industrial production has
been flat in recent months. Consumer spending increased
considerably through the summer, in part because of a
sizable rise in expenditures on motor vehicles; sales of
motor vehicles slowed in October, however. Real outlays
for business equipment—especially for computers—
have been rising, but nonresidential construction has
continued to decline. Housing starts and home sales have
weakened recently. The nominal U.S. merchandise trade
deficit in July-August was significantly above its average
rate in the second quarter. Wage and price increases have
continued to trend downward.
Short-term interest rates have declined somewhat further
since the Committee meeting on October 1, while bond
yields are about unchanged to slightly higher on balance.
The trade-weighted value of the dollar in terms of the other
G-10 currencies declined on balance over the intermeeting
period.
Expansion in M2 and M3 resumed in October, albeit at a
slow pace. For the year through October, expansion of both
M2 and M3 is estimated to have been at the lower ends of
the Committee's ranges.
The Federal Open Market Committee seeks monetary and
financial conditions that will foster price stability and
promote sustainable growth in output. In furtherance of
these objectives, the Committee at its meeting in July
reaffirmed the ranges it had established in February for
growth of M2 and M3 of Vh to 6V2 percent and 1 to
5 percent, respectively, measured from the fourth quarter of
1990 to the fourth quarter of 1991. The monitoring range for
growth of total domestic nonfinancial debt also was
maintained at 41/2 to 8V2 percent for the year. For 1992, on
a tentative basis, the Committee agreed in July to use the
same ranges as in 1991 for growth in each of the monetary
aggregates and debt, measured from the fourth quarter of
1991 to the fourth quarter of 1992. With regard to M3, the
Committee anticipated that the ongoing restructuring of
thrift depository institutions would continue to depress the
growth of this aggregate relative to spending and total
credit. The behavior of the monetary aggregates will continue
to be evaluated in the light of progress toward price level
stability, movements in their velocities, and developments
in the economy and financial markets.
In the implementation of policy for the immediate future,
the Committee seeks to decrease somewhat the existing
degree of pressure on reserve positions. Depending upon
progress toward price stability, trends in economic activity,
the behavior of the monetary aggregates, and developments
in foreign exchange and domestic financial markets, slightly
greater reserve restraint might or slightly lesser reserve

134

Federal Reserve Bulletin • February 1992

restraint would be acceptable in the intermeeting period.
The contemplated reserve conditions are expected to be
consistent with growth of M2 and M3 over the period from
September through December at annual rates of about 3 and
1 percent, respectively.
Votes for this action: Messrs. Greenspan, Corrigan,
Black, Forrestal, Keehn, LaWare, Mullins, and Parry.
Votes against this action: Messrs. Angell and Kelley.

Mr. Angell dissented because he was concerned
about the impact of further easing on inflation
expectations and consequently on long-term interest
rates. In his view, the prospect for a robust and
long-lasting recovery is dependent on the completion of adjustments in business pricing practices,
household savings, and balance sheets more generally. Monetary policy actions that are perceived as
a shift from a focus on price-level stability to one
on short-term economic growth may well abort the
needed adjustments. In his view, credible pricelevel targeting would provide assurance, particularly
given the somewhat precarious short-term business
outlook, that monetary policy would act to counter
either deflation or inflation. The consequence would
be to foster a considerable downward thrust in
long-term interest rates and to set the stage for
sustained expansion.
Mr. Kelley dissented because he believed that a
steady policy course was appropriate, at least for
now, in the context of the ongoing stimulus that
could be anticipated from the System's earlier
easing actions. In his view, the outlook for
continuing expansion in economic activity remained
favorable, and he saw considerable risks in further
easing at this time. In particular, he was concerned
that a policy easing move would stimulate inflation




expectations with adverse implications for longterm interest rates and the performance of interestsensitive sectors of the economy. Further, he did
not believe that many of the factors that are
importantly inhibiting economic expansion could
be constructively addressed by a more accommodative position. He also feared that the dollar would
come under downward pressure in foreign exchange
markets with only slight benefits for exports but
added inflation pressures in the domestic economy.

2. Authorization for Domestic Open Market
Operations
The Committee approved a temporary increase of
$2 billion, to a level of $10 billion, in the limit on
changes between Committee meetings in System
Account holdings of U.S. government and federal
agency securities. The increase amended paragraph
1(a) of the Authorization for Domestic Open Market
Operations and was effective for the intermeeting
period ending with the close of business on
December 17, 1991.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Black, Forrestal, Keehn, Kelley, LaWare,
Mullins, and Parry. Votes against this action: None.

The Manager for Domestic Operations advised
the Committee that the current leeway of $8 billion
for changes in System Account holdings might not
be sufficient to accommodate the potentially large
need to add reserves over the intermeeting period
ahead to meet an anticipated seasonal bulge in
currency in circulation and required reserves.

135

Legal Developments
FINAL RULE - AMENDMENT

TO REGULATION

A

The Board of Governors is amending 12 C.F.R. Parts
201, its Regulation A (Extensions of Credit by Federal
Reserve Banks) to reflect its recent approval of a
reduction in discount rates at each Federal Reserve
Bank. The discount rate is the interest rate that is
charged depository institutions when they borrow
from their district Federal Reserve Banks. The Board
acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks.
The amendments to Regulation A were effective
November 13, 1991. The discount rate changes were
effective on the dates specified in sections 201.51 and
201.52. The Board of Governors is amending
12 C.F.R. Part 201 as follows:
1. The authority citation for 12 C.F.R. Part 201 continues to read as follows:
Authority: Sections 10(a), 10(b), 13, 13a, 14(d) and 19
of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343
et seq., 1Alz, 348 et seq., 357, 374, 374a, and 461); and
section 7(b) of the International Banking Act of 1978
(12 U.S.C. 347d).
2. Section 201.51 is revised to read as follows:

Section 201.51—Short-term adjustment credit
for depository institutions.
The rates for short-term adjustment credit provided to
depository institutions under section 201.3(a) of Regulation A are:

3. Section 201.52 is revised to read as follows:

Section 201.52—Extended credit for depository
institutions.
(a) Seasonal credit. The rates for seasonal credit
extended to depository institutions under section
201.3(b)(1) of Regulation A are:

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

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




Rate

Federal
Reserve Bank

New York
Philadelphia
Clev sland

3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5

Minneapolis
Kansas City
Dallas
San Francisco

Effective
December
December
December
December
December
December
December
December
December
December
December
December

20,
20,
20,
20,
20,
20,
20,
24,
23,
20,
20,
20,

1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991

3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5

Effective
December
December
December
December
December
December
December
December
December
December
December
December

20,
20,
20,
20,
20,
20,
20,
24,
23,
20,
20,
20,

1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991

(b) Other extended credit. The rates for other extended
credit provided to depository institutions under sustained
liquidity pressures or where there are exceptional circumstances or practices involving a particular institution under section 201.3(b)(2) of Regulation A are:

Atlanta
Chicago
Federal
Reserve Bank

Rate

Rate
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5
3.5

Effective
December
December
December
December
December
December
December
December
December
December
December
December

20,
20,
20,
20,
20,
20,
20,
24,
23,
20,
20,
20,

1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991
1991

These rates apply for the first 30 days of borrowing. For
credit outstanding for more than 30 days, a flexible rate
will be charged which takes into account rates on market
sources of funds, but in no cases will the rate changed be
less than the basic discount rate plus one-half percentage
point. Where extended credit provided to a particular
depository institution is anticipated to be outstanding for

136

Federal Reserve Bulletin • February 1992

an unusually prolonged period and in relatively large
amounts, the 30-day time period may be shortened.

ORDERS ISSUED UNDER BANK
COMPANY ACT

HOLDING

Orders Issued Under Section 3 of the Bank
Holding Company Act
First Bancshares of St. Landry, Inc.
Opelousas, Louisiana
Order Approving the Merger of Bank Holding
Companies
First Bancshares of St. Landry, Inc., Opelousas,
Louisiana ("Bancshares"), a bank holding company
within the meaning of the Bank Holding Company
Act ("BHC Act"), has applied under section 3(a)(5)
of the BHC Act (12 U.S.C. 1842(a)(5)) to merge with
Iberia Bancshares Corporation, New Iberia, Louisiana ("Iberia"), and thereby acquire all of the voting
shares of Bank of Iberia, New Iberia, Louisiana
("Bank").
Notice of the application, affording interested persons an opportunity to comment, has been published
(56 Federal Register 41,848 (1991)). The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in section 3(c) of the BHC Act.
Bancshares, which operates one bank subsidiary,
First Acadiana National Bank ("Acadiana Bank"), is
the 27th largest banking organization in Louisiana,
with total deposits of $143.1 million, representing less
than 1 percent of the total deposits in commercial
banks in Louisiana. 1 Iberia, which operates one bank
subsidiary, Bank of Iberia, is the 127th largest commercial banking organization in Louisiana, with total
deposits of $27.8 million, representing less than
1 percent of the total deposits in commercial banks in
Louisiana. Upon consummation of this proposal,
Bancshares would become the 21st largest commercial
banking organization in Louisiana, with total deposits
of $170.9 million, representing less than 1 percent of
total deposits in the state.
Bancshares does not compete directly with Bank of
Iberia in any relevant banking market. Based on all
facts of record, the Board concludes that consummation of the proposal would not have any significantly
adverse effect on competition in any relevant banking

1. State data are as of December 31, 1990, and market deposit data
are as of June 30, 1990.




market. The Board also concludes that considerations
relating to the financial and managerial resources and
future prospects of Bancshares and Iberia and supervisory factors are consistent with approval.
In connection with this application, the Board has
received comments from the Plaisance Development
Corporation, Opelousas, Louisiana ("Protestant"),
critical of the performance of Acadiana Bank, under
the Community Reinvestment Act (12 U.S.C. 2901
et seq.) ("CRA"). The CRA requires the federal
financial supervisory agencies to encourage financial
institutions to help meet the credit needs of the local
communities in which they operate consistent with the
safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's record in meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record
into account in its evaluation of bank holding company
applications.2
Protestant contends that Acadiana Bank has failed
to meet the credit needs of its entire community,
including minority neighborhoods. Specifically, Protestant alleges that Acadiana Bank has failed:
(1) to develop and implement CRA policies;
(2) to provide funds, grants and loans to minority
community organizations;
(3) to participate in community development
projects and to establish businesses and provide
jobs within the minority community;
(4) to provide capital to existing minority owned
businesses in the community ;
(5) to locate a branch office in the Plaisance community; and
(6) to provide capital and financing to minority
homeowners in the community. 3

2. 12 U.S.C. § 2903.
3. Protestant has also raised issues regarding Acadiana Bank's
minority hiring practices and Protestant's request for financing for a
sewer project. While the Board fully supports affirmative programs
designed to promote equal opportunity in every aspect of a bank's
personnel policies and practices in the employment, development,
advancement, and treatment of employees and applicants for employment, the Board believes that a bank's general personnel practices are
beyond the scope of factors that may be assessed under the CRA.
Acadiana Bank has also provided information regarding Protestant's
request for a loan to cover start-up expenses for obtaining government-sponsored financing for a proposed sewer project, including the
circumstances surrounding the Protestant's request and the requirements of government-sponsored loan programs. After careful consideration of the comments and all the evidence in the record, the Board
concludes that Protestant's comments regarding his request for a loan
from Acadiana Bank do not reflect so adversely on the factors
considered by the Board under the BHC Act as to warrant denial of
this application.

Legal Developments

The Board has carefully reviewed the CRA performance record of Acadiana Bank, as well as Protestant's comments and Bancshares response to those
comments, in light of the CRA, the Board's regulations and the Statement of the Federal Financial
Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement"). 4 Initially, the Board notes that Acadiana Bank has received satisfactory ratings from its primary
supervisor, the Office of the Comptroller of the Currency ("OCC") in the most recent examination of its
CRA performance. The Agency CRA Statement provides that a CRA examination is an important and
often controlling factor in the consideration of an
institution's CRA record and that these reports will be
given great weight in the applications process.
Acadiana Bank has in place the type of policies
outlined in the Agency CRA Statement that contribute
to an effective CRA program. In particular, Acadiana
Bank has developed a program that establishes standards that the bank must meet in ascertaining community credit needs, responding to those needs through
the development and delivery of products and services, and monitoring and evaluating the bank's success in meeting those needs and its responsibilities
under the CRA. Results are monitored at Acadiana
Bank by a CRA Board Committee, composed of four
members from the bank's board of directors. Responsibilities of this committee include reviewing Acadiana
Bank's CRA Statement annually, reviewing the bank's
geocoded Home Mortgage Disclosure Act ("HMDA")
data, assessing the bank's community outreach efforts, and reviewing participation in special programs
designed to meet the credit needs of low- and moderate-income areas of the community. Acadiana Bank
also has a CRA Officer Committee, composed of the
CRA officer, the marketing officer and various loan
officers. The primary responsibility of the Officer
Committee is to ensure that all CRA policies, procedures and programs are implemented. 5

4. The Agency CRA Statement provides guidance regarding the
types of policies and procedures that the supervisory agencies believe
financial institutions should have in place in order to fulfill their
responsibilities under the CRA on an ongoing basis and the procedures that the supervisory agencies will use during the application
process to review an institution's CRA compliance and performance.
The Agency CRA Statement also explains that decisions by agencies
to allow financial institutions to expand will be made pursuant to an
analysis of the institution's overall CRA performance and will be
based on the actual record of performance of the institution. 54
Federal Register 13,742 (1989).
5. CRA reports are prepared by Acadiana Bank's CRA officer and
reviewed on a regular basis by the full board of directors. These
reports show that the CRA committees review the geographic distribution of loans, the types of loan products offered, and marketing and
community development options.




137

Acadiana Bank participates in several programs and
offers a variety of products targeted to individuals and
small businesses in low- and moderate-income and
minority communities. Acadiana Bank originates
loans for small businesses, agricultural purposes,
home improvements and residential, and other purposes. Since 1987, approximately 43 percent of the
bank's home improvement loans were made to lowand moderate-income customers, for a total of
$131,915. This amount represents 42 percent of the
total dollars loaned by Acadiana Bank during this
period. In addition, the bank's investment portfolio
contains locally issued bonds, including bonds issued
by the Parish's housing financing agency. The value of
these bonds is approximately $1.3 million. Furthermore, the bank is the only Small Business Administration ("SBA"), Federal Housing Administration
("FHA") and Veteran's Administration ("VA")
lender in the Parish. Two of the five outstanding SBA
loans originated by Acadiana Bank are to minority
borrowers.
Most recently, Acadiana Bank commissioned an
assessment of community credit needs in an attempt
to further meet the credit needs of its delineated
community. Based on that assessment, the bank's
CRA Committee reviewed its product mix, which
consists of home improvement, home equity, adjustable rate mortgage, automobile, student and Small
Business Administration loans. As a result, the bank
changed its products to make them more affordable
to low- and moderate-income and minority borrowers. Acadiana Bank increased the maximum term of
its home improvement loan from five years to eight
years, increased the debt-to-income ratio for its
home equity line of credit from 32 percent to 40
percent and expanded its product line to include VA
and FHA adjustable rate mortgages. Products including home equity loans and adjustable rate mortgages
are advertised in media that reach low- and moderate-income and minority areas, such as a minorityowned radio station, church bulletins and local news
publications.
In addition, Acadiana Bank sponsors a variety of
community development projects. For example, the
bank has a three-year funding commitment to the
Greater Opelousas Economic Industrial Development
Council, Opelousas, Louisiana, a private, non-profit
corporation whose objective is to promote economic
development and job opportunities in St. Landry Parish. The organization has attracted several businesses
to the community, and these companies employ over
1,000 individuals, a majority of which are from lowand moderate-income and minority neighborhoods
within the bank's delineated community. Acadiana
Bank also has sponsored seminars for local business

138

Federal Reserve Bulletin • February 1992

owners, real estate brokers and other individuals seeking to establish new businesses in an effort to foster
economic development. The bank has established an
advisory board composed of business owners, farmers
and community leaders to communicate the credit
needs in their particular areas of the Parish.
Acadiana Bank has also provided funding for minority community organizations. For example, Acadiana
Bank has committed funds and personnel for a threeyear period to Neighborhood Housing Services, Lafayette, Louisiana ("NHS"), a private corporation
which provides comprehensive improvement services
to low-income neighborhoods. NHS also administers a
loan fund to homeowners who do not meet conventional lending criteria, and one of the bank's officers
serves on the NHS Board of Directors and its loan
committee. 6
Acadiana Bank currently operates a branch within
12 blocks of the southern boundary of Plaisance, and
Bancshares has committed to establish a greater presence in Plaisance through the establishment of a loan
office and loan officer visits to local churches. Overall,
Acadiana Bank operates 10 branches throughout its
delineated community and the geographic distribution
of these branches has been found to be satisfactory by
the OCC.
The Board also has reviewed the 1991 HMD A data
for Acadiana Bank. As a general matter, these data
show that Acadiana Bank receives fewer loan applicants from minority borrowers than non-minority borrowers, and that minority applicants are denied loans
at a higher rate than non-minority applicants. 7
All banks have an obligation to ensure that their
lending practices are based on criteria that ensure safe
and sound lending and equal access to credit for
creditworthy applicants regardless of gender, race or
national origin. The Board is concerned when the
lending record of an institution indicates disparities in
lending to minority applicants. The Board also recognizes that HMDA data provide only a limited measure
of any given institution's lending in the communities
served, and that HMDA data have limitations that
provide an inadequate basis, absent other information,
for determining whether an institution is engaged in
illegal discrimination.

6. Acadiana Bank also has made donations to civic and religious
organizations located in low- and moderate-income areas of its delineated community.
7. Recent amendments to the HMDA for the first time require
banking organizations to collect certain information regarding applicants for bank mortgage loans and to report the information regarding
both loan approvals and denials to the banking agencies and the
public. The information includes data on race, gender, and income of
individual applicants, in addition to the location of the property
receiving the potential loan and the disposition of the application.




The Board notes that the HMDA data cited by the
Protestant covers only a nine-month period in 1991
and is based on a loan pool of fewer than 90 loan
applications. After accounting for withdrawn or incomplete loan applications, 52 non-minority and 19
minority applications were considered by Acadiana
Bank. In addition to constituting a statistically small
number of loans, these loan data significantly underestimate Acadiana Bank's lending activities by failing
to capture loans made in approximately half of the
bank's service area. 8
The most recent examination for CRA compliance
conducted by the OCC found no evidence of illegal
discrimination or other illegal credit practices in Acadiana Bank's housing-related lending activities. In
addition, Bancshares and Acadiana Bank have committed to review all housing-related loan denials in
order to ensure that Acadiana Bank's lending criteria
are being applied on a uniform basis to minority and
non-minority loan applicants.
For the reasons discussed above, the Board believes that, on balance, and subject to the commitments made, the CRA record of Acadiana Bank, and
the convenience and needs considerations under the
BHC Act are consistent with approval of this application.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. Approval of this proposal is
specifically conditioned on compliance with the commitments discussed in this application. The commitments relied on in reaching this decision are conditions
imposed in writing by the Board in connection with its
findings and decision and may be enforced in proceedings under applicable law. This transaction shall not be
consummated before the thirtieth calendar day following the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
December 24, 1991.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, LaWare, and Phillips. A b s e n t and not voting: Governors Kelley and Lindsey.
JENNIFER J. JOHNSON

Associate Secretary of the Board

8. Acadiana Bank's service area includes the city of Lafayette,
which is in a metropolitan statistical area ("MSA") and St. Landry
Parish, which is outside of a MSA. Under HMDA reporting guidelines, loans made in areas outside of a MSA are not reported.

Legal Developments

Interbank Holding Corporation
Miami, Florida
Order Approving Formation of a Bank Holding
Company
Interbank Holding Corporation, Miami, Florida ("Interbank"), has applied under section 3(a)(1) of the
Bank Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring a majority of the voting shares of Grovegate
Bank, Miami, Florida ("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 23,295, 26,094). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Interbank is a non-operating corporation formed for
the purpose of acquiring Bank. Bank controls deposits
of approximately $14.6 million and is the 310th largest
commercial banking organization in Florida, representing less than 1 percent of the total deposits in
commercial banking organizations in the state. 1 Bank
operates in the Miami, Florida, banking market, 2 and
controls less than 1 percent of the total deposits in
commercial banks in that market. Interbank and its
principals are not affiliated with any other depository
institution in the Miami, Florida, banking market.
Based on all the facts of record, the Board concludes
that consummation of the proposed transaction would
not result in any significantly adverse effects on competition or the concentration of banking resources in
any relevant banking market. Accordingly, the Board
concludes that competitive considerations are consistent with approval of the application.
In assessing the financial factors and future prospects in this case, the Board has considered that, as
part of the proposal, Interbank proposes to provide
substantial additional capital to Bank and thereby
make it a more viable competitor. In light of this and
the other facts of record, the Board concludes that the
financial and managerial resources and future prospects of Interbank and Bank are consistent with approval. Supervisory factors and factors relating to the
convenience and needs of the community to be served
are also consistent with approval.
Based on all the facts of record, including the
commitments made by Interbank and its principals,
the Board has determined to approve Interbank's
1. Data are as of June 30, 1991.
2. The Miami, Florida, banking market is approximated by Dade
and Broward Counties.




139

application. The Board's decision is specifically conditioned on compliance with all of the commitments
made in this case. Further, these commitments are
conditions imposed in writing by the Board in connection with its findings and decision, and may be enforced in proceedings under applicable law.
By letter dated December 18, 1991, the Comptroller
of the State of Florida requested that the Board act
expeditiously on this application and shorten the postapproval waiting period in this case. Based on the facts
of record, the Board finds that conditions satisfy
expeditious action. In accordance with sections 3(b)
and 11(b) of the BHC Act (12 U.S.C. §§ 1842(b)(1) and
1849(b)(1)), the acquisition of Bank may be consummated on or after the fifth calendar day following the
effective date of this Order, but no later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Board or
the Federal Reserve Bank of Atlanta, acting pursuant
to delegated authority.
By order of the Board of Governors, effective December 23, 1991.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, LaWare, and Phillips. A b s e n t and not voting: Governors Kelley and Lindsey.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Laredo National Bancshares, Inc.
Laredo, Texas
Order Approving Acquisition of a Bank Holding
Company
Laredo National Bancshares, Inc., Laredo, Texas
("Laredo"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the voting shares
of Southshares, Inc., Laredo, Texas ("Southshares"), a
registered bank holding company, and thereby acquire
Southshares's subsidiary bank, South Texas National
Bank of Laredo, Laredo, Texas ("Bank"). 1

1. Laredo's shell subsidiary holding company, LNB Acquisition
Co., Inc., will be merged with and into Southshares, and Southshares
will be the surviving entity. Immediately following this merger,
Southshares will be merged into Laredo and Bank will become a
wholly owned subsidiary of Laredo. LNB Acquisition will be formed
solely for the purpose of facilitating this acquisition.
In connection with this transaction, certain shareholders of Southshares have granted Laredo options to purchase up to 68.6 percent of
the outstanding common stock of Southshares, and Laredo has
applied to exercise these options if any of several preconditions occur.
These options will become moot upon consummation of the Laredo
application to acquire Southshares.

140

Federal Reserve Bulletin • February 1992

Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 55,311 (1991)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Laredo, with deposits of $1.1 billion, is the tenth
largest commercial banking organization in Texas. 2
Laredo's subsidiary bank, Laredo National Bank,
Laredo, Texas, operates offices in Laredo and
McAllen, Texas. Southshares, with deposits of $93.9
million, is the 205th largest commercial banking organization in Texas and operates one office in Laredo,
Texas. Upon consummation of the proposed transaction, Laredo would remain the tenth largest commercial banking organization, with deposits of approximately $1.2 billion. Consummation of this proposal
would not result in any significantly adverse effect on
the concentration of banking resources in Texas.
Laredo and Southshares compete directly in the
Laredo market. 3 Laredo is the largest depository institution in that market, controlling $1.1 billion in deposits, representing approximately 45.6 percent of market
deposits. 4 Bank is the fourth largest depository institution in the market, controlling $93.9 million in deposits,
representing approximately 3.7 percent of the market
deposits. Upon consummation of this proposal, Laredo
would remain the largest depository institution in the
market, controlling approximately $1.2 billion in deposits, representing approximately 49 percent of market
deposits. On this basis, consummation of the transaction would cause the Herfindahl-Hirschman Index
("HHI") to increase by 337 points to 3631.5
A number of unique and important characteristics of
the Laredo banking market indicate that the competitive effects of this proposal are not as significant as

2. Deposit and ranking data are as of June 30, 1990.
3. The Laredo banking market is approximated by Webb County,
Texas.
4. Market deposit data are calculated on the basis of deposit data for
commercial banks operating in the market as well as data for thrift
institutions in the market weighted at 50 percent. The Board previously has indicated that thrift institutions have become, or have the
potential to become, major competitors of commercial banks. See
Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989);
National City Corporation, 70 Federal Reserve Bulletin 743 (1984).
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered highly concentrated. In
such markets, the Justice Department is likely to challenge a merger
that increases the HHI by more than 50 points. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by at least 200 points. The
Justice Department has stated that the higher than normal HHI
threshold for screening bank mergers for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.




represented by these market HHI figures.6 For example, so-called "maquiladora" plants have been established in Laredo, Texas, and the nearby community of
Nuevo Laredo, Mexico. 7 The dual-plant "maquiladora" economy has the effect of stimulating economic
growth in these communities. This economic opportunity has created characteristics that make the Laredo
banking market a particularly attractive market for
potential banking competitors to enter. During the
period 1980-89, the population of Laredo increased by
27.2 percent, representing the sixth largest increase
among the 28 Metropolitan Statistical Areas ("MSA")
within Texas. 8 The amount of deposits in depository
institutions in the Laredo market has also increased
substantially in recent years. During the period from
1987 to 1990, Laredo's total market deposits increased
by 27.1 percent, representing the second largest increase of any MSA in Texas. 9 Laredo also ranks
second in population per banking office among the 28
MSAs, with a ratio of 14,033 per office, compared to
an average of 9,438 in other Texas MSAs. 10 Texas has
statewide branch banking and nationwide interstate
banking, which facilitates entry into the market for
potential competitors. 11 In 1986 two commercial banks
entered the Laredo market.
In addition, commercial banks in the Laredo market have a substantial portion of their deposit accounts in amounts greater than $100,000 and these
deposits are largely short-term deposits. In the case
of Laredo, almost 50 percent of its deposits are
short-term deposits in amounts of over $100,000
from investors with whom the bank has developed
long-standing deposit or commercial relationships.
These types of deposits do not serve as a base for
significant lending by banks in this market, 12 and

6. The Board has previously taken into account the unique characteristics of banking markets. Hartford National Corporation, 73
Federal Reserve Bulletin 720 (1987).
7. "Maquiladora" describes the manufacturing process whereby
parts or raw materials are shipped duty-free from the United States to
a plant in Mexico. Finished products are then shipped back to the
United States and are subject to payment of a reduced duty.
8. Laredo is the ninth largest MSA in Texas. The population of
Texas increased 19.4 percent during this same period.
9. Texas MSAs as a whole lost 3.8 percent of total market deposits
during this same period.
10. Commercial bank deposits per capita in the Laredo market are
approximately $19,800 while the state average is approximately $7,100.
11. There are more than 70 banking institutions operating in Texas
with deposits of over $100 million that could be considered potential
entrants into the Laredo market.
12. As of June 1991, Laredo held approximately 33.7 percent of its
average assets as loans compared to its peer group average of 63
percent. The loan-to-assets ratio of all other commercial banks in the
Laredo market, including Southshares, has also been below its peer
group average since 1988. The record indicates, however, that the
market for loans is very competitive despite the relatively low volume
of loans in area banks. For example, a comparison of mortgage loan
rates for banks in the San Antonio market, a relatively unconcentrated
market, with Laredo's rates shows that these rates are almost identical.

Legal Developments

tend to overstate the competitive influence of banks
in the market. 13
The Board also has taken into account the fact that
five commercial banks and two thrifts would remain as
competitors in the market after consummation of the
proposal. Two of these depository institution competitors represent offices or subsidiaries of relatively large
institutions with over $1 billion in deposits and two
commercial banking institutions have a substantial
presence in the Laredo market. 14 In addition, the
Board has considered the competitive influence from
the Mexican financial institutions in the contiguous
Mexican community of Nuevo Laredo. Thirteen Mexican banking institutions maintain 32 offices in Nuevo
Laredo. Ten of these banks have consolidated assets
equivalent to greater than $1 billion.
Based on all of the facts of record in this case, in
particular the unique characteristics of the Laredo
banking market, the Board concludes that consummation of this proposal would not have a significantly
adverse effect on competition or concentration of
banking resources in the Laredo banking market or in
any other relevant banking markets. The Board has
sought comments from the United States Attorney
General, the Office of the Comptroller of the Currency,
and the Federal Deposit Insurance Corporation on the
competitive effects of this proposal. None of these
agencies has provided any objection to consummation
of this proposal or indicated that the proposal would
have any significantly adverse competitive effect.
The Board also concludes that the financial and
managerial resources and future prospects of Laredo,
Southshares, and Bank are consistent with approval of
this proposal. Convenience and needs considerations
and supervisory factors are also consistent with approval.
Based on the foregoing and other facts of record,
and subject to the commitments made by Laredo, the
Board has determined that the application should be,
and hereby is, approved. Approval of this proposal is
specifically conditioned on compliance by Laredo with
the commitments made in connection with its application, as supplemented. The commitments relied on in
reaching this decision are conditions imposed in writing by the Board in connection with its findings and
decision and may be enforced in proceedings under
applicable law.

13. If these deposits were subtracted from the deposits of commercial
banks in the Laredo market, Laredo's post-merger market share would be
44.5 percent and the HHI would increase by 234 points to 3436.
14. International Bancshares Corporation controls $817.5 million in
deposits, representing 32.5 percent of total market deposits, and
Union of Texas Corporation, both of Laredo, Texas, controls $287.6
million in deposits, representing 11.4 percent of total market deposits.
In addition, International Bancshares Corporation and First Gibraltar,
FSB, Dallas, Texas, each have over $1 billion in total deposits.




141

The transaction shall not be consummated before
the thirtieth calendar day following the effective date
of this Order, or later than three months following the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Dallas, acting pursuant to
delegated authority.
By order of the Board of Governors, effective December 24, 1991.
Voting for this action: Vice Chairman Mullins and Governors LaWare and Phillips. Voting against this action: Governor Angell. Absent and not voting: Chairman Greenspan and
Governors Kelley and Lindsey.
JENNIFER J. JOHNSON

Associate Secretary of the Board
Dissenting Statement of Governor Angell
I have dissented from the Board's action in this case
because I have concerns about certain minority shareholder interests in this bank holding company. While
the Applicant has proposed several measures that will
address these concerns, I believe that these issues
should be resolved before consummation of the proposal.
December 24, 1991

Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Statement by the Board of Governors of the
Federal Reserve System Regarding the
Application by NCNB Corporation to Acquire
C&S/Sovran Corporation
By Order dated November 29, 1991, the Board approved the applications of NCNB Corporation, Charlotte, North Carolina ("NCNB"), pursuant to sections
3 and 4(c)(8) of the Bank Holding Company Act
(12 U.S.C. §§ 1842, 1843(c)(8)) ("BHC Act") to acquire C&S/Sovran Corporation, Atlanta, Georgia, and
Norfolk, Virginia ("C&S/Sovran"), and thereby to
acquire the banking and nonbanking subsidiaries of
C&S/Sovran; the application pursuant to section
4(c)(14) of the BHC Act (12 U.S.C. § 1843(c)(14)), to
acquire indirectly Commerce Trading Corporation, an
export trading company; and the proposal to acquire
indirectly the shares of Citizens and Southern International Bank and Citizens and Southern International
Bank of Atlanta, which are corporations chartered
pursuant to section 25(a) of the Federal Reserve Act

142

Federal Reserve Bulletin • February 1992

(12 U.S.C. § 611 et seq.) ("Edge Act").» Upon
consummation of these acquisitions, NCNB proposes
to change its name to "NationsBank Corporation"
("NationsBank"). The Board hereby issues this Statement regarding its approval Order.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 46,182 (1991)). Because
of the size and geographic scope of the resulting
organization and the extensive public interest in this
proposal, the Board held public meetings regarding
these applications at four sites to permit interested
persons an opportunity to present written information
and oral testimony directly to members of the System's staff. These meetings were held during the week
of October 7, 1991, in Richmond, Virginia; Charlotte,
North Carolina; Atlanta, Georgia; and Dallas, Texas.
Over 100 people presented testimony at these meetings. The Board also extended the public comment
period in this case, providing interested persons over
75 days to submit written comments.
The Board considered the applications and all comments received in light of the factors set forth in
sections 3(c) and 4 of the BHC Act and section 25(a) of
the Federal Reserve Act.
NCNB, with approximately $69.1 billion in consolidated assets, controls a total of eight banking subsidiaries located in Delaware, Florida, Georgia, Maryland, South Carolina, North Carolina, Texas, and
Virginia, with approximately $48.8 billion in total
deposits. 2 C&S/Sovran, with $49.1 billion in consolidated assets, controls a total of eight banking subsidiaries and three trust companies located in Florida,
Georgia, Kentucky, Maryland, South Carolina, Tennessee, Virginia, and the District of Columbia, with
approximately $38.8 billion in total deposits. Upon
consummation of this proposal, NationsBank would
be the fourth largest commercial banking organization
in the United States based on total deposits ($87.6
billion), and the third largest commercial banking
organization in the United States based on consolidated assets ($118.2 billion).

1. NCNB's shell subsidiary holding company, C&S/Sovran Merger
Corporation, Wilmington, Delaware ("Merger Corporation"), will be
merged with and into C&S/Sovran, and C&S/Sovran will be the
surviving entity. C&S/Sovran will be a wholly owned second tier
holding company subsidiary of NCNB. Merger Corporation has been
formed solely for the purpose of facilitating this acquisition.
In connection with this transaction, NCNB and C&S/Sovran have
granted each other an option to purchase up to 19.9 percent of the
outstanding common stock of each other's organization, and both
organizations have applied to exercise the options if any of several
preconditions occur. These options will become moot upon consummation of the NCNB application to acquire C&S/Sovran.
2. Asset and deposit data are as of June 30, 1991.




Douglas

Amendment

Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)), the
Douglas Amendment, prohibits the Board from approving an application by a bank holding company to
acquire control of any bank located outside of the
holding company's home state, unless such acquisition
is "specifically authorized by the statute laws of the
State in which [the] bank is located, by language to
that effect and not merely by implication." For purposes of the Douglas Amendment, the home state of
NCNB is North Carolina. 3 The Board has previously
determined that the interstate banking statutes of
Florida, Georgia, Maryland, South Carolina and Virginia permit NCNB to acquire banking organizations
in those states. 4 Tennessee, 5 Kentucky, 6 and the District of Columbia7 have each enacted a reciprocal
interstate banking statute that permits an out-of-state
bank holding company to acquire a bank in these
jurisdictions if certain conditions are satisfied. In considering this proposal, the Board has analyzed the
interstate banking statutes of all of the states involved
and of the District of Columbia and has concluded that
NCNB is authorized under these statutes to acquire
the banking subsidiaries of C&S/Sovran located in
these states and the District of Columbia. 8 The appro-

3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. The
operations of a bank holding company are considered principally
conducted in that state in which the total deposits of all such banking
subsidiaries are largest.
4. See NCNB Corporation, 70 Federal Reserve Bulletin 225 (1984)
(Florida); NCNB Corporation, 72 Federal Reserve Bulletin 61 (1986)
(Georgia); NCNB Corporation, 73 Federal Reserve Bulletin 666 (1987)
(Maryland); NCNB Corporation, 72 Federal Reserve Bulletin 57
(1986) (South Carolina); NCNB Corporation, 72 Federal Reserve
Bulletin 849 (1986) (Virginia).
5. See Tenn. Code Ann. § 45-12-102, 103. The Tennessee statute
conditions entry on the requirement that the out-of-state bank holding
company not hold more than I6V2 percent of the total deposits held by
all federally insured financial institutions located in Tennessee. Upon
consummation of this proposal, NationsBank will hold approximately
5 percent of the federally-insured deposits in Tennessee.
6. See Ky. Rev. Stat. Ann. § 287.900(6)(b),(c). Kentucky prohibits
any bank holding company from engaging in a transaction that would
result in the holding company controlling more than 15 percent of all
bank deposits in Kentucky. Ky. Rev. Stat. Ann. § 287.900(3). Upon
consummation of this transaction, NCNB will control less than 1
percent of the bank deposits in Kentucky.
7. See D.C. Code Ann. §§ 26-801, 802(a)(1).
8. Each of these statutes permits a bank holding company located in
North Carolina to acquire a bank in each respective jurisdiction.
However, the affected states (other than Kentucky) and the District of
Columbia have statutory provisions requiring that:
(1) more than 80 percent of the total deposits held by the banking
subsidiaries of the out-of-state bank holding company be held by
banks located in a particular region; and
(2) the "principal place of business" of the out-of-state bank holding
company, as defined under state law, authorize the acquisition of a
bank in the affected state on a reciprocal basis.

Legal Developments

priate bank supervisors in each of these states and the
District of Columbia agree with this conclusion. In
light of the foregoing, the Board has determined that
its approval of this proposal is not prohibited by the
Douglas Amendment. However, approval of this proposal is conditioned upon NCNB's receiving all required state regulatory approvals. 9
Financial and Managerial

Considerations

In evaluating an application under section 3 of the
BHC Act, the Board is required to consider the
financial and managerial resources and future prospects of the companies and banks involved and the
effect of the proposed acquisition on those resources.
The Board regards capital adequacy as an especially
important factor in the analysis of bank holding company expansion proposals, particularly in transactions
involving a significant acquisition, such as in this case.

The relevant state statutes generally provide that a bank holding
company's principal place of business is considered to be that state in
which the total deposits of all the bank holding company's subsidiary
banks are largest on the date of the proposed acquisition. The deposits
of NCNB's subsidiary bank in Texas exceed the deposits of NCNB's
other subsidiary banks and exceed 20 percent of the total deposits in
NCNB's subsidiary banks. Because deposits of NCNB's subsidiary
bank in Texas are larger than deposits of NCNB's deposits in any
other state, Texas is the principal place of business for purposes of
these statutes.
Under these state and District of Columbia statutes, NCNB would
be precluded from acquiring banks in the affected states (other than
Kentucky) and the District of Columbia. However, NCNB acquired
NCNB Texas National Bank pursuant to section 13(f)(2) of the
Federal Deposit Insurance Act (12 U.S.C. § 1823(f)(2)), which authorizes assisted emergency interstate acquisitions. Section 13(f) specifically provides that any bank holding company that acquires a bank
through an assisted emergency interstate acquisition under that provision may not be prevented by any state law from acquiring any other
bank or bank holding company by reason of the emergency acquisition. 12 U.S.C. § 1823(f)(4)(E). This provision was enacted in order to
prevent emergency interstate acquisitions from disqualifying the acquiring bank holding company from future acquisitions under various
regional interstate banking statutes that require that bank holding
companies maintain at least a given ratio of deposits within the region.
See H.R. Rep. No. 261, 100th Cong., 1st Sess. 172 (1987). Thus,
NCNB's deposits in Texas do not preclude the proposed acquisition
even though Texas may be deemed under state law to be NCNB's
principal place of business and over 20 percent of deposits in NCNB's
banks are in Texas. When NCNB's Texas deposits are excluded, the
applicable reciprocity requirements of the interstate banking statutes
in the affected states and the District of Columbia are satisfied.
There is no need to rely on the exemption of section 1823(f)(4)(E) for
NCNB to acquire banking institutions in Kentucky because such an
acquisition is permissible even though Texas maybe deemed to be
NCNB's principal place of business under Kentucky law. See Ky.
Rev. Stat. Ann. § 287.900(6)(b),(c); Tex. Rev. Civ. Stat. Ann. art.
342-916.
9. To date, the state banking supervisors in Georgia, Maryland,
Tennessee, Virginia, and the District of Columbia have approved this
proposal, and the Florida State Comptroller has indicated that no
application is necessary for NCNB to make the proposed acquisition
in Florida. The appropriate state banking supervisors in Kentucky and
South Carolina have each indicated preliminarily that NCNB's proposed acquisition of banking institutions in its state is not prohibited
by the relevant state banking statutes.




143

In this regard, the Board expects banking organizations contemplating expansion proposals to maintain
strong capital levels substantially above the minimum
levels specified in the Board's Risk-Based Capital
Guidelines.10 The Board carefully analyzes the effect
of expansion proposals on the preservation or achievement of strong capital levels and has adopted a policy
that there should be no significant diminution of financial strength below these levels for the purpose of
effecting major expansion proposals. 11
In this case, NCNB proposes to acquire all of the
outstanding common and preferred shares of C&S/
Sovran through a share exchange. NCNB will incur no
debt as a result of the transaction. Upon consummation of the proposal, NCNB will remain well capitalized, with capital ratios significantly above the minimum levels specified in the Board's Risk-Based
Capital Guidelines. In addition, NCNB has recently
raised capital and intends to raise additional capital
following consummation of this transaction. The proceeds of these capital issuances will be available for
capital contributions to subsidiary banks as necessary
to ensure that the subsidiary banks have acceptable
capital ratios.
The facts of record also demonstrate that NCNB has
competent and experienced management. 12 NCNB
proposes that NationsBank will provide C&S/
Sovran's subsidiary banks with new management officials with demonstrated management capability, to
the extent necessary. NCNB projects that combining
the operations of NCNB and C&S/Sovran will enable
the subsidiary banks of NationsBank to provide more

10. Risk-Based Capital Guidelines, 12 C.F.R. 225, Appendices A,
B, and D. (1991).
11. The Bank of New York Company, Inc., 74 Federal Reserve
Bulletin 257 (1988); Chemical New York Corporation, 73 Federal
Reserve Bulletin 378 (1987); Citicorp, 72 Federal Reserve Bulletin 497
(1986); National City Corporation, 70 Federal Reserve Bulletin 743
(1984).
12. In addressing the managerial considerations of this proposal, the
Board has carefully considered several comments that related to the
operations of the subsidiary banks of NCNB and C&S/Sovran. Some
comments related to particular consumer and business dealings,
including loan transactions, involving certain of NCNB's and C&S/
Sovran's subsidiary banks. One comment alleged that one of C&S/
Sovran's subsidiary banks engaged in discrimination in selecting
appraisers to perform real estate appraisal work involving federallyrelated transactions in Florida. Another comment alleged that one of
C&S/Sovran's subsidiary banks had mishandled, as trustee, an employee stock ownership plan that is currently the subject of litigation.
Still another comment alleged that NCNB has denied family inheritance rights to a checking account that was established at a bank
acquired by NCNB. Finally, a commenter alleged that NCNB has
violated certain federal securities laws. The Board has reviewed these
comments in light of all of the facts of record in this case, including
information responding to these comments provided by NCNB and
information provided by other federal regulatory agencies. Based on
this review, the Board concludes that these comments do not reflect so
adversely upon the managerial resources of NCNB as to warrant
denial of these applications.

144

Federal Reserve Bulletin • February 1992

efficiently a full range of services to their customers
and the communities they serve.
Based on the entire record, the Board concludes
that the financial and managerial resources and future
prospects of NationsBank and its subsidiaries are
consistent with approval of these applications. 13
Competitive

Factors

NCNB and C&S/Sovran compete directly in 33 banking markets in Florida, Georgia, Maryland, South
Carolina, and Virginia. The relative size of NationsBank in Florida, Georgia, Maryland, and Virginia
following consummation of this proposal is described
in the Appendix to this Statement. After considering
the relatively small increase in concentration that
consummation would cause, the number of competitors that would remain following consummation of the
proposal, the attractiveness for entry by other competitors of the markets involved, and the competition
offered by thrifts 14 in 28 of these banking markets, 15 as
well as other facts of record, 16 the Board concludes
that consummation of this proposal would not result in
significantly adverse effects on competition or the
13. The Board has received comments from individuals who questioned the viability of NationsBank in light of the financial condition of
NCNB and C&S/Sovran, and who voiced concern about the potential
loss to the Federal Deposit Insurance Corporation ("FDIC") that
could result from the failure of NationsBank. Another commenter
questioned the effectiveness of the due diligence review process used
by NCNB in evaluating the financial condition of C&S/Sovran. The
Board has carefully considered these comments and, based on all the
facts of record, including review of relevant examination reports, and
for the reasons discussed in this Statement, concludes that these
objections do not warrant denial of these applications.
14. The Board previously has indicated that thrift institutions have
become, or have the potential to become, significant competitors of
commercial banks. See, e.g., First Union Corporation, 76 Federal
Reserve Bulletin 83 (1990). In considering the competition offered by
thrifts in all banking markets in this case, thrift deposits are weighted
at 50 percent, unless otherwise noted. See, e.g., Fleet!Norstar Financial Group, Inc., 77 Federal Reserve Bulletin 751 (1991).
15. These banking markets are: the Fort Myers, Hernando County,
Jacksonville, Leon County, Miami, Naples, North Brevard, Orlando,
Port Charlotte, St. Petersburg, Sarasota, South/Central Brevard,
Tampa and Venice banking markets in Florida; the Anderson County,
Charleston, Florence County, Georgetown County, Greenville, Horry
County, Oconee County, Orangeburg County, Spartansburg and
Sumter County banking markets in South Carolina; the Atlanta and
Augusta banking markets in Georgia; and the Baltimore, Maryland,
and Washington, D.C. banking markets.
16. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
Herfindahl-Hirschman Index ("HHI"), is above 1800 is considered to
be highly concentrated. In such markets, the Department is likely to
challenge a merger that increases the HHI by more than 50 points. The
Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by more than 200 points.
The Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognize the competitive effect of limited-purpose lenders
and other non-depository financial entities.




concentration of banking resources in any of these 28
banking markets. 17
South Carolina Banking Markets
NCNB owns the third largest depository institution in
South Carolina, holding $2.4 billion in deposits, representing approximately 12.4 percent of the total deposits in commercial banking organizations in the state.
C&S/Sovran owns the second largest depository institution in South Carolina, with $2.9 billion in deposits,
representing approximately 15.6 percent of the total
deposits in commercial banking organizations in the
state. Upon consummation of this proposal, NationsBank would become the second largest depository
organization in South Carolina, with deposits of $5.3
billion, representing approximately 28 percent of total
deposits in commercial banking organizations in South
Carolina.
NCNB and C&S/Sovran compete in a total of 15
banking markets in South Carolina. For the reasons
noted above, consummation of the proposal would not
have a significantly adverse effect on competition in 10
of these banking markets. 18 In five of the markets in
South Carolina, the increase in market concentration,
as measured by the resulting HHI calculation for each
market, indicates that further analysis is necessary to
determine whether consummation of this proposal
would result in significantly adverse effects on competition in any of these markets. These markets are the
Beaufort County, Darlington County, Newberry
County, Greenwood County and Columbia, South
Carolina, banking markets. NCNB has proposed divestitures to mitigate the anticompetitive effects of the
proposed mergers in four of these markets. 19

17. The Board has received and carefully considered several comments regarding the competitive effects of this proposal in particular
banking markets as well as comments generally alleging that the
proposal would result in substantially anticompetitive effects in Florida, the Southeast, or in other broadly defined geographic regions. The
Board continues to believe that the appropriate geographic market for
reviewing the competitive effects of bank acquisition proposals is local
in nature. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin
52 (1991); United States v. Philadelphia National Bank, 374 U.S. 321
(1963). Based on the facts of record, and for the reasons discussed in
this Statement, the Board concludes that this proposal would not
substantially lessen competition for banking services, or result in an
undue concentration of resources, in any relevant banking market.
18. See supra note 15.
19. In each market in which NCNB has committed to divest branch
offices to mitigate possible anticompetitive effects of its proposal, NCNB
has executed sale agreements which require consummation of these
divestitures within six months of consummation of the proposal. If
NationsBank is unsuccessful in divesting these branches within 180 days
of consummation, NationsBank has agreed to transfer these branches to
an independent trustee authorized to sell these branches promptly and to
remit the proceeds to NationsBank. See, e.g., United New Mexico
Financial Corporation, 77 Federal Reserve Bulletin 484, 485 (1991); First
Union Corporation, 76 Federal Reserve Bulletin 83 (1990).

Legal Developments

In the Beaufort County banking market, 20 NCNB is
the third largest of ten depository institutions, holding
$148.9 million in deposits. 21 C&S/Sovran is the second
largest depository institution in the market, with approximately $167.1 million in deposits. The Board has
previously determined that thrifts are fully competitive
with commercial banks in this market and, as a result,
that the market share of thrifts operating in this market
should be fully weighted in considering the competitive effects of transactions in this market. 22 With the
market share of thrift competitors weighted at 100
percent, NationsBank would become the largest depository institution in this market upon consummation
of this transaction, holding $316.0 million in deposits,
representing approximately 38.8 percent of market
share. Upon consummation of this proposal, the HHI
in this market would increase by 752 points to 2552.
NCNB has committed to divest five branches in this
market, representing approximately $74.8 million in
deposits, to the two banks having the smallest market
shares in this market. Following the proposed divestiture in Beaufort County, NationsBank would be the
largest depository institution in this market, holding
$241.3 million in deposits, representing approximately
29.4 percent of market share. The HHI in this market,
after giving effect to consummation of this proposal
and all divestitures, would increase by 187 points to
1987. There would be one fewer independent competitor in the Beaufort County banking market following
the proposal and divestitures, but nine depository
institutions would remain in this market.
In the Darlington County banking market, 23 NCNB
is the second largest of eight depository institutions,
with $70.6 million in deposits, which represents approximately 22.8 percent of the total deposits in that
market. 24 C&S/Sovran is the third largest depository
institution in the market, with $43.9 million in deposits, which represents approximately 14.2 percent of
market deposits. Upon consummation of this transaction, the HHI in this market would increase by 644
points to 2527.
NCNB has committed to divest one branch in this
market, representing approximately $23.3 million in
market deposits, to a bank not currently operating in
this market. With this divestiture, the number of
competitors remaining in the Darlington County bank20. The Beaufort County banking market is approximated by all of
Beaufort County.
21. Market deposit data are as of June 30, 1990.
22. See South Carolina National Corporation, 76 Federal Reserve
Bulletin 1060, 1061 n.6 (1990) ("SCNC")•
23. The Darlington County banking market is approximated by all of
Darlington County.
24. Thrift deposits are weighted at 50 percent in the remaining South
Carolina banking markets, except the Columbia, South Carolina
banking market discussed below. See supra, footnote 14.




145

ing market following consummation of this proposal
will not change, and the HHI in this market would
increase by 202 points to 2086.25
In the Newberry County banking market, 26 NCNB
is the third largest of seven depository institutions,
holding $47.2 million in deposits, which represents
approximately 19.7 percent of the total deposits in that
market. C&S/Sovran is the fifth largest depository
institution in the market, with $18.4 million in deposits, which represents approximately 7.7 percent of
market deposits. Upon consummation of this transaction, the HHI in this market would increase by 302
points to 2203.
NCNB has committed to divest one branch in this
market, representing approximately $15.3 million in
market deposits, to a bank not currently operating in
this market. As a result of this divestiture, the number
of depository institutions remaining in the Newberry
County banking market will not change following
consummation of the proposal, and the HHI in this
market would increase by 35 points to 1935.27
In the Greenwood County banking market, 28 NCNB
is the largest of ten depository institutions, with $148.2
million in deposits, which represents approximately
32.2 percent of the total deposits in that market.
C&S/Sovran is the seventh largest depository institution in the market, with $14.7 million in deposits,
which represents approximately 3.2 percent of deposits in the market. Upon consummation of this transaction, the HHI in this market would increase by 205
points to 2205.
NCNB has committed to divest one branch in this
market, representing approximately $25.2 million in
market deposits, to a bank not currently operating in
this market. With this divestiture, the number of
competitors remaining in the Greenwood County
banking market following consummation of NCNB's
acquisition of C&S/Sovran will not change, and the
HHI in this market would decrease by 122 points to
1877.29

25. Following this proposed divestiture in Darlington County,
NationsBank would be the second largest depository institution in the
market, controlling approximately $91.3 million in deposits, representing approximately 29.4 percent of market share.
26. The Newberry County banking market is approximated by all of
Newberry County.
27. Following this divestiture in Newberry County, NationsBank
would be the third largest depository institution in this market,
controlling approximately $50.2 million in deposits, representing approximately 21 percent of market share.
28. The Greenwood County banking market is approximated by all
of Greenwood County.
29. Following this proposed divestiture in Greenwood County,
NationsBank would be the largest depository institution, controlling
approximately $137.7 million in deposits, representing approximately
29.9 percent of market share.

146

Federal Reserve Bulletin • February 1992

In the Columbia banking market, 30 NCNB is the
third largest of 22 depository institutions, with $507.7
million in deposits, which represents approximately
11.8 percent of the total deposits in that market.
C&S/Sovran is the second largest depository institution in the market, holding $725.3 million in deposits,
which represents approximately 16.9 percent of market deposits. Upon consummation of this transaction,
the HHI in this market would increase by 401 points to
2159.
The record indicates that thrift institutions in the
Columbia banking market compete actively in the full
range of banking products and services, providing
transaction as well as traditional savings accounts, and
engaging actively in commercial and consumer lending.31 Thrift institutions in the Columbia market also
maintain on average a significantly higher percentage
of assets in commercial loans and consumer loans than
thrift institutions generally. 32 The Board believes that
the provision of these products and services by thrifts
in the Columbia banking market as well as the prospect that these institutions will exercise their existing
authority to expand these activities justify including
thrift institutions as full competitors of banks in the
calculation of market share in this market. 33
With thrift deposits weighted at 100 percent, NationsBank would control approximately 25.9 percent
of market deposits upon consummation of the proposal. The resulting HHI for the Columbia banking
market would be 1820, representing an increase of 324
points. However, the Board notes that this resulting
HHI is only slightly above the level of a moderately
concentrated market, and there are several mitigating
factors. In particular, twelve commercial banks and
nine thrifts would remain as competitors in the market
30. The Columbia banking market is approximated by Richmond
and Lexington Counties.
31. Thrifts in this banking market offer FDIC-insured transaction
accounts, consumer loans, commercial real estate loans and other
commercial loans, as well as mortgage and home improvement loans.
32. On average, commercial loans account for approximately 5.4
percent of the assets of thrifts in the Columbia market, compared to a
national average of 2.6 percent of thrift assets.
33. The Board has recognized in other decisions that thrifts in
certain markets compete fully with banks and should be fully weighted
in analyzing the competitive effect of bank expansion proposals. See,
e.g., SCNC; BanPonce Corporation, 77 Federal Reserve Bulletin 43
(1991); Fleet Financial Group, Inc., 74 Federal Reserve Bulletin 62
(1988). The Board received one comment asserting that inclusion of
thrift deposits in calculating HHI figures in banking markets overemphasizes the competition that thrifts pose to banks and, therefore,
thrift deposits should not be accounted for at all in calculating these
figures. In particular, this commenter challenged NCNB's assertion
that thrifts in Columbia are fully competitive with banks. As noted in
this Statement, the Board has reviewed data from thrift institutions in
the Columbia banking market, and has concluded, based on those
data, that thrift institutions are active competitors of banks in providing the cluster of banking products and services in the Columbia
banking market, and should be weighted fully in determining the
relevant market share in this case. See id.




after consummation of the proposal. In addition, the
record indicates that the market is very attractive for
entry. 34
Based on all of the facts of record in this case, and
subject to the divestiture proposals made by NCNB in
this case, the Board concludes that consummation of
this proposal would not have a significantly adverse
effect on competition or the concentration of banking
resources in the Beaufort County, Darlington County,
Newberry County, Greenwood County, or Columbia
South Carolina banking markets, or in any other
relevant banking market. The Board has sought comments from the United States Attorney General, the
Office of the Comptroller of the Currency ("OCC"),
and the FDIC on the competitive effects of this proposal. The Attorney General has indicated that, subject to consummation by NCNB of the proposed
divestitures in the Beaufort County, Darlington
County, Newberry County and Greenwood County
banking markets, the proposal would not have significantly adverse effects on competition in any relevant
banking market. Neither the OCC nor the FDIC has
provided any objection to consummation of this proposal or indicated that the proposal would have any
significantly adverse competitive effects.
Convenience and Needs

Considerations

In analyzing the effect of this merger on the convenience and needs of the communities served by NCNB
and C&S/Sovran, the Board has taken into account the
record of the subsidiary banks of NCNB and C&S/
Sovran under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of such institution," and to
take that record into account in its evaluation of bank
holding company applications. 35

34. In this regard, the record indicates that per capita income,
population per banking office, total deposits per banking office, and
total deposits are higher in the Columbia market than in other urban
markets in South Carolina. Since 1986, four commercial banks and
one thrift institution have entered the market on a de novo basis.
35. 12 U.S.C. § 2903.

Legal Developments

Public Comments on Convenience and Needs
In order to collect information concerning the convenience and needs of the communities to be served by
the proposed acquisition, including the records of
performance of the affected institutions under the
CRA, and in view of the widespread public interest in
the proposal, the Board held public meetings regarding
this proposal. These public meetings were held on
October 7-9, 1991, in Richmond, Virginia; Dallas,
Texas; Charlotte, North Carolina; and Atlanta, Georgia. In addition, the Board provided an extended
period for interested persons to submit written comments regarding this proposal. Over 100 individuals
testified at the public meetings; many of these commenters also submitted written comments. Over 50
additional commenters submitted written comments
but did not appear at the public meetings.36 The Board
has considered all testimony and written comments in
its evaluation of the convenience and needs factors in
this case.
Approximately 60 commenters indicated that the
convenience and needs factor warranted approval of
this proposal, primarily in light of the CRA performance records of NCNB or C&S/Sovran. These commenters noted positive business or community relationships with the institutions and identified specific
programs provided by the institutions that benefitted
the community, including participation in programs to
finance low- and moderate-income housing, provision
of financial and technical assistance to community
organizations, and assistance in community development projects. A number of commenters maintained
that the merger would result in financially stronger
banks that would be better able to serve their communities.
Approximately 100 commenters were critical of the
CRA performance records of NCNB or C&S/Sovran
or had concerns relating to the future effects of the
proposed merger (collectively, "Protestants"). 37 Protestants made a variety of claims, including that:

36. The Board also has considered additional comments filed after
the close of the public comment period. Under the Board's rules, the
Board may in its discretion take into consideration the substance of
such comments. 12 C.F.R. 262.3(e).
37. Several Protestants alleged NCNB and C&S/Sovran have not
employed minorities in decision-making positions. NCNB and C&S/
Sovran dispute this allegation, and note that each organization follows
a policy of equal employment opportunity throughout their respective
organizations and has directors that reflect racial diversity. While the
Board fully supports affirmative programs designed to promote equal
opportunity in every aspect of a bank's personnel policies and
practices in the employment, development, advancement, and treatment of employees and applicants for employment, the Board believes
that the banks' general personnel practices are beyond the scope of
factors that may be assessed under the CRA.




147

(1) the institutions' ascertainment and assessment of
the credit needs of minority and low- and moderateincome communities, small cities and rural areas,
are inadequate; 38
(2) the institutions' efforts to market and advertise
their products and services, particularly to minorities and to low- and moderate-income communities,
small cities and rural areas, are inadequate;
(3) the institutions fail to offer consumer services
that meet the credit needs of low- and moderateincome persons and, in particular, charge excessive
fees for checking accounts, 39 and have an insufficient number of bank branches in minority and lowand moderate-income communities;
(4) the institutions are failing to meet the housing
and small business credit needs of their communities, particularly with respect to minorities and lowand moderate-income communities, small cities and
rural areas;
(5) 1990 Home Mortgage Disclosure Act
("HMDA") data indicate illegal discriminatory
lending practices by the institutions; 40

38. Some Protestants alleged that NCNB and C&S/Sovran are not
in some instances accurately representing certain aspects of their
CRA programs and performance, including outreach to community
groups. NCNB has responded to these comments by providing
documentation of CRA performance and outreach efforts. The Board
notes that recent regulatory examinations found no evidence of
misrepresentations regarding these areas and that NCNB's and C&S/
Sovran's CRA statements generally complied with applicable requirements. The Board has carefully considered these allegations, and
based on all the facts of record, has concluded that they do not
warrant denial of the applications. The Board expects that all aspects
of CRA performance and outreach will be accurately represented in
the CRA statements of the NCNB and C&S/Sovran subsidiary banks,
and intends to consider this issue in future applications.
39. Both NCNB and C&S/Sovran offer a variety of affordable
checking and check cashing services. For example, NCNB's Economy Checking product features no required minimum balance, a
minimum of $25 to open an account, and nine free checks per month,
with a monthly service charge of $3. NCNB also offers regular
checking requiring a minimum of $100 to open an account, free
unlimited checks and no monthly service charge with a minimum $500
balance, and free ATM accessibility on all NCNB machines. NCNB's
basic savings product features a $25 minimum to open an account, no
monthly service charge with a minimum $250 balance, free ATM
accessibility on NCNB machines, and provides direct deposit services. Further, government check cashing services are available to
non-depositors as well as depositors at all NCNB and C&S/Sovran
branches.
40. Several Protestants alleged that their individual loan denials
evidence a failure by the institutions to comply with the CRA. Some
Protestants alleged that the classification or non-renewal of their loans
by NCNB's bank subsidiary in Texas, following NCNB's acquisition
of the bank subsidiaries of First RepublicBank Corporation, evidence
a failure by NCNB to meet the credit needs of small businesses
throughout Texas. NCNB has provided information regarding these
loan transactions and its role as agent in managing the assets of First
RepublicBank. After careful consideration of the comments and all
the evidence in the record, including small business and other loan
programs in which NCNB-TX participates, the Board concludes that
these comments do not reflect so adversely on the factors considered
by the Board under the BHC Act as to warrant denial of the
applications.

148

Federal Reserve Bulletin • February 1992

(6) the proposal would result in a large centralized
organization that will reduce activities in, and will
not be responsive to, local communities; and
(7) the proposal would result in substantial job loss
and relocation for the institutions' employees. 41

A. CRA Performance

Examinations

The Board has carefully reviewed the CRA performance records of NCNB, C&S/Sovran, and their subsidiary banks, the comments and evidence presented at
the public meetings and in written submissions, and
NCNB's responses to those comments, in light of the
CRA, the Board's regulations, and the Statement of the
Federal Financial Supervisory Agencies Regarding the
Community Reinvestment Act ("Agency CRA Statement"). 42 The Agency CRA Statement provides guidance regarding the types of policies and procedures that
the supervisory agencies believe financial institutions
should have in place in order to fulfill their responsibilities under the CRA on an ongoing basis, and the
procedures that the supervisory agencies will use during the application process to review an institution's
CRA compliance and performance. The Agency CRA
Statement explains that decisions by agencies to allow
financial institutions to expand will be made pursuant to
an analysis of the institution's overall CRA performance and will be based on the actual record of
performance of the institution.43
Initially, the Board notes that all of NCNB's eight
subsidiary banks, as well as C&S/Sovran's subsidiary
banks, have received a satisfactory rating from their
primary supervisors during the most recent examination of each bank's CRA performance. 44 The Agency

41. NCNB has indicated that 8,000 to 9,000 personnel reductions
may occur over a three-year period, in significant part through
attrition. NCNB states that NationsBank will offer a variety of
services to assist employees of the merging institutions whose jobs
may be eliminated, including placement services for available positions within NationsBank, outplacement services, and relocation
financial assistance. In connection with NCNB's plans concerning the
possible consolidation of branch and other facilities, NCNB may be
subject in some circumstances to the Worker Adjustment and Retraining Notification Act of 1988 (29 U.S.C. § 2101), requiring advance
notice to employees for closings of certain facilities. NCNB has stated
that it and NationsBank will fully comply with the provisions of this
statute where applicable and with all requirements of law.
42. 54 Federal Register 13,742 (1989).
43. Id.
44. The OCC has rated the performance of the following NCNB
banks as satisfactory under the CRA as of November 15, 1991: NCNB
National Bank, Atlanta, Georgia; NCNB National Bank of Florida,
Tampa, Florida; NCNB National Bank of South Carolina, Columbia,
South Carolina; NCNB Texas National Bank, Dallas, Texas; NationsBank, N.A., Dover, Delaware; NCNB National Bank of North
Carolina, Charlotte, North Carolina; and NCNB National Bank of
Maryland, Baltimore, Maryland. In addition, the FDIC has rated
NCNB Virginia, McLean, Virginia, satisfactory during the most
recent examination of the bank's CRA performance.




CRA Statement provides that a CRA examination is an
important and often controlling factor in the consideration of an institution's CRA record and that, although
CRA examination reports do not provide conclusive
evidence of an institution's CRA record, these reports
will be given great weight in the applications process. 45
The Board notes that the preliminary results of
recently conducted compliance examinations by bank
supervisory agencies have identified areas for improvement in the otherwise satisfactory CRA performance of NCNB and C&S/Sovran. In particular, the
preliminary results of these examinations suggested
the need to improve:
(1) documented ascertainment efforts to determine
the unmet credit needs of all communities;
(2) involvement at the local level with product
development and CRA goal setting;
(3) systems to analyze and test for geographical
distributions of loan application data and the linkage
between ascertainment efforts, design and marketing
of products, and measurement of performance; and
(4) extended CRA training to include all personnel
with customer contact.
The Board expects NCNB and NationsBank to take
immediate steps to address the regulatory concerns
noted in the recently conducted CRA performance
examinations.
The Board has also considered the individual aspects of the CRA programs and records of NCNB and
C&S/Sovran as well as the proposed NationsBank
community investment program.

B. Corporate Program and Policies
Both NCNB and C&S/Sovran and their subsidiary
banks have in place the type of policies outlined in the
Agency CRA Statement that contribute to an effective
CRA program. The NCNB corporate CRA policy sets
out CRA-related goals for all NCNB banks, and
NCNB has established comprehensive community de-

The OCC has rated the CRA performance of the following C&S/
Sovran banks as satisfactory as of October 11, 1991: The Citizens and
Southern National Bank of Georgia, Savannah, Georgia; Sovran/DC
National Bank, Washington, D.C.; The Citizens & Southern National
Bank of South Carolina, Columbia, South Carolina; The Citizens &
Southern National Bank of Florida, Fort Lauderdale, Florida; and
Sovran Bank, N.A., Richmond, Virginia. The FDIC has rated Sovran
Bank/Maryland, Bethesda, Maryland, satisfactory during the most
recent examination of the bank's CRA performance. The Federal
Reserve Bank of Atlanta has rated Sovran Bank/Tennessee, Nashville, Tennessee, satisfactory during the most recent examination of
the bank's CRA performance, and the Federal Reserve Bank of St.
Louis has rated Sovran Bank/Kentucky, Hopkinsville, Kentucky,
satisfactory during the most recent examination of the bank's CRA
performance.
45. 54 Federal Register at 13,745.

Legal Developments

velopment programs in each of the states in which it
currently operates. The NCNB Community Investment Policy is designed to implement those goals
through initiatives in the following areas: community
needs assessment, product development, target marketing, internal assessment and review, management
involvement, employee training, and community education and community economic development activities. The C&S/Sovran corporate program includes an
annual review of each bank's CRA statement and a
self-assessment by each bank of its CRA performance
to determine whether each bank is addressing its
responsibilities to the community under the CRA. 46
As part of their CRA programs, NCNB's and C&S/
Sovran's boards of directors are involved in formulating policies and reviewing the institutions' performance under the CRA. CRA committees of the boards
of directors of NCNB subsidiary banks monitor performance under the goals set in the NCNB Community
Investment Policy and in the CRA policies of each
subsidiary bank. These committees make full reports
periodically to their respective boards. Reports on
CRA developments at all of the NCNB banks are also
reported quarterly to the CRA subcommittee of the
parent holding company's board of directors.
C&S/Sovran's subsidiary banks have also each established a board of directors' committee to monitor,
on an ongoing basis, the CRA performance of the bank
as well as progress in meeting targeted goals. Each
bank's CRA officer reviews quarterly assessments of
CRA performance and progress toward meeting established goals for each delineated community and reports the results to senior management of the bank, its
board of directors, and to the Corporate CRA officer.
NCNB states that NationsBank will adopt a corporate community investment policy statement that will
combine elements of the existing NCNB and C&S/
Sovran corporate policies, programs and commitments. The proposed NationsBank Corporate Community Investment Policy establishes program goals at
three levels: national corporate, local community, and
targeted neighborhoods.
Several Protestants have raised concerns that NationsBank would operate under centralized decisionmaking authority away from local bank and branch
management and, therefore, would not be responsive

46. The C&S/Sovran self-assessment program requires each bank
to:
(1) establish annual CRA goals, with special attention to low- and
moderate-income neighborhoods;
(2) conduct quarterly evaluations of bank activities in each city,
county, or region in the bank's delineated service area and evaluate
annually the bank's performance under its CRA goals; and
(3) conduct an annual geographic analysis of credit applications,
denials and approvals.




149

to the local communities in which its banks operate. 47
NCNB has stated that, while broad policy goals will be
developed through centralized decision-making functions, 48 each bank will also establish local goals annually for the extension of community development
credit in each local community served by the bank. 49
NCNB proposes that each bank will define a neighborhood or geographic region within its community delineation to receive concentrated emphasis, under the
"NationsBank Neighborhood" designation, in the implementation of the NationsBank community development program. In addition, under the proposal, each
banking subsidiary will maintain a board of directors
CRA Committee which will have ultimate oversight
responsibility for community investment strategy and
performance and will meet prior to each regularly
scheduled board of directors meeting to review initiatives and performance measures. NCNB states that a
CRA Management Committee will be established for
certain geographic regions currently anticipated to be
defined by states. The regional CRA committees are
intended to serve as a source of strategic direction and
support to the community investment process and will
meet formally on a quarterly basis.

C. Ascertainment and Outreach Efforts
NCNB's activities to ascertain the credit needs of the
communities it serves are formalized in its Community
47. Some Protestants have also commented that the proposal would
result in fewer branch banking offices and could adversely affect
senior citizens and minority and low- and moderate-income communities. NCNB states that the NationsBank Branch Opening/Closing
Policy will at a minimum include the elements governing NCNB's
branch policy. NCNB performs periodic analyses of branch dispersion to identify underserved areas and to target areas for expansion,
and its branch development efforts have emphasized expansion in
low- and moderate-income areas. Since January 1990, NCNB has
targeted for development four branches specifically for low- and
moderate-income areas. Two of these branches have opened, one is
under construction, and one site is being acquired. In addition, NCNB
assesses the potential impact on the community prior to closing an
office by considering information from members of the community in
order to minimize the adverse impact of an office closing. NCNB's
branch closing policy requires approval from the Community Investment Executive, written notice to the branch's customers at least 30
days prior to the closure and meetings with key neighborhood and
political leaders to assess the impact of the closure.
48. Corporate-wide goals setting forth minimum standards will be
established for the areas of needs assessment activity, general credit
extension, residential mortgage credit extension, program development such as public/private partnerships, business development/
outreach activity such as calls on community development organizations, and targeted marketing.
49. Under the proposal, each NationsBank subsidiary bank will
adopt its own community investment policy modeled on the corporate
format. NationsBank will coordinate the review of each subsidiary
bank's CRA Statement and develop a consistent format subject to
review by the bank's board of directors. NCNB intends that these CRA
Statements will contain both consistent corporate goals and initiatives
as well as unique local programs and initiatives, all of which would be
implemented by each bank according to local community needs.

150

Federal Reserve Bulletin • February 1992

Needs Assessment Initiative Summary. This policy
includes:
(1) an annual survey of government and community
leaders, with results compiled on a community basis
and summarized on a statewide basis;
(2) targeted community outreach efforts compiled
for each community and summarized for each state
on a quarterly basis; and
(3) an assessment survey of individuals in these
communities.
The needs assessment process is the responsibility of
the Community Investment Coordinator in the major
markets and of the senior banking executive in the
community banks. 50 In addition, NCNB maintains
contact with individuals and groups representing civic,
governmental, religious, neighborhood, minority,
small business, and commercial and residential real
estate development organizations. In 1990, NCNB
made over 25,000 calls on minority-owned firms, small
businesses, community groups and governmental
agencies to assess community needs and to market
NCNB products and services. 51 NCNB also sponsored or participated in more than 170 programs
targeted at educating consumers and small business
owners. 52
C&S/Sovran also ascertains community credit
needs through various means, 53 including direct forms
of community contact. Through its officer call program, consumer and commercial officers call on a
variety of consumer and community organizations,
small and minority business, government agencies,
local elected officials, non-profit organizations, hous-

50. NCNB's state CRA Management Committees and the state
board of director CRA Committees review the results of the needs
assessment process and NCNB's response to the needs identified.
51. NCNB's Mortgage Corporation has established internal goals
regarding calls to brokers and agents operating in or specializing in
low- and moderate-income areas. That program resulted in 2142
business development calls in 1990. In addition, NCNB's Corporate
Goals statement provides that not less than 10 percent of total
business development calls by consumer and commercial units are to
be made on minority-owned firms.
52. NCNB generally conducts consumer counseling and education
programs in conjunction with local community groups. For example,
programs are conducted with the Urban League in several markets,
including Charlotte, North Carolina, Columbia, South Carolina, and
Houston and Dallas, Texas. NCNB has other educational program
efforts underway in conjunction with ACORN, the NAACP, local
Chambers of Commerce, local churches, and local educational institutions and counseling centers.
53. In selected service areas, C&S/Sovran has instituted an "Adopta-Tract" program as one method of improving its ascertainment
efforts, particularly in low- and moderate-income census tracts. Under
this program, the low- and moderate-income census tracts of a
particular community are divided into small cluster groups of 4 - 6
tracts. Specific account officers, crossing functional lines, are assigned
responsibility for these tracts, including community outreach, loan
monitoring, and for recommending products or services that will fit
the needs of residents of these areas.




ing and real estate groups and educational organizations. C&S/Sovran mortgage originators also meet
with community representatives to discuss low- and
moderate-income housing needs. Finally, C&S/Sovran
officers and directors serve on numerous public and
private sector boards and commissions through which
the credit and banking needs of all segments of the
community may be identified and appropriate responses developed.

D. Advertising and Marketing Programs
NCNB maintains a specific marketing program targeted at reaching low-income and minority consumers.
The CRA Marketing Plan is created annually, distinct
from general marketing efforts, and emphasizes specially targeted media and the need for bilingual advertising. In certain tracts that need additional emphasis
to advertise services such as Free Checking, Base
Line Checking, Government Check Cashing, and Special Mortgage Programs/Products, NCNB marketing
efforts include targeted print media, direct mail, outdoor billboard advertising and radio and television
advertising.
C&S/Sovran conducts regional marketing efforts in
response to specific community needs, with targeted
advertising and educational marketing for low- and
moderate-income and minority consumers. C&S/
Sovran advertises in local newspapers, on billboards,
on radio stations and in civic, school and sports
publications in order to communicate information on
services and products to all members of the community. C&S/Sovran also makes special efforts to place
advertisements in publications directed to minority
and low- and moderate-income individuals, including
minority-owned media and multilingual advertising, in
order to communicate more effectively with targeted
audiences and to provide information regarding credit
availability, how to apply for credit, and C&S/
Sovran's willingness to make loans.

E. Lending and Other Activities
NCNB has made a variety of efforts to meet the
housing and other credit needs of communities in
which it operates, including low- and moderateincome and minority communities. The NCNB Community Investment Policy states as a corporate goal
the origination of 8 or more CRA loans (defined by
NCNB as a commercial, consumer or real estate loan
made to areas with income levels below 80 percent of
the median for the area) per consumer branch per
quarter, with goals measured on an aggregate basis for
each state.

Legal Developments

NCNB extended over $95 million in mortgage loans
to low- and moderate-income areas in 1990. NCNB
also offers various mortgage and residential lending
products, including products specifically designed for
the needs of low- and moderate-income consumers.
NCNB has developed a Community Investment Mortgage Product targeted to low- and moderate-income
families, which features flexible underwriting guidelines that allow the use of non-traditional sources of
income and credit history and the waiver of origination
and point fees. In order to provide flexibility with
respect to this product, NCNB has committed to hold
these mortgages in its own portfolio and not to sell
them in the secondary market. NCNB also offers FHA
and VA mortgage products and FHA Title I Home
Improvement Loans. NCNB Mortgage Corporation's
funding of FHA-insured and VA-guaranteed programs
increased from $87 million in 1988 to $267 million in
1990.
NCNB also participated in 29 multi-bank loan pools
designed to make credit more accessible to low- and
moderate-income consumers and small businesses in
1990 and currently participates in over 200 public/
private partnerships emphasizing innovative techniques for meeting local housing, small business and
education credit needs. 54 NCNB has designed a variety of products for the small business market, including Small Business Administration ("SBA") lending
products and a lending product for minority subcontractors. NCNB is involved with the SBA in improving
the delivery of government-guaranteed loans to small
businesses and the Farmers Home Administration in
its guarantee and subordination programs for small
farms. 55 NCNB also supports small businesses
through its investment in community development
corporations. In addition, NCNB intends for NationsBank to provide below-market interest rate loans for
day care centers.
NCNB states that NationsBank will establish a
residential mortgage lending goal at a level no less than
NCNB's existing goal and will conduct single-family
mortgage lending primarily through NationsBank

54. Examples of these programs include the Tampa Challenge Fund,
Homes for South Florida, Central Florida Community Reinvestment
Funds, and First Housing Development Corporation in Florida; the
Charlotte/Mecklenburg Housing Partnership, Greensboro Community
Home Lending Program, and Wilmington Housing Partnership in
North Carolina; the Spartanburg Residential Mortgage Pool and
Greenville West Brandon Neighborhood Project in South Carolina;
the Dallas Affordable Housing Partnership, Houston Affordable
Housing Partnership, and Midland Housing Partnership in Texas; and
the Baltimore Regional Community Development Corporation in
Maryland.
55. NCNB's South Carolina bank is a preferred lender with the
SBA. In addition, lending to agricultural and rural markets will be a
targeted lending area under the NationsBank Community Investment
Program.




151

Mortgage, which will continue to offer NCNB's community development products. NCNB plans for NationsBank, in conjunction with community groups, to
develop and make available nationwide a combination
purchase/rehabilitation single-family mortgage product, which will utilize flexible underwriting and terms
similar to the Community Investment Mortgage Product. 56 NCNB also plans for NationsBank to offer
consumers in low- and moderate-income categories
home improvement financing products for expansion,
renovation, or improvement of a home. 57 In addition,
the proposed NationsBank community investment
program contains policies for the implementation of
special products for affordable multi-family residential
lending, small business lending, and rural and agricultural lending.
The NationsBank community investment policy,
program, and strategic plan contain other elements of
an effective CRA program, as outlined in the Agency
CRA Statement. These community development initiatives include:
(1) providing economic development loans, including loans to non-profit and government agencies and
other programs serving low- and moderate-income
neighborhoods, and loans made under mortgage
bond programs and multi-bank loan pools;
(2) providing affordable depository and transaction
services, including "lifeline" checking products and
government check cashing services; and
(3) participating in and sponsoring educational and
counseling programs for consumers and small businesses in conjunction with local and national community-based organizations.

F. CRA Activities in Selected

States

Community investment activities and initiatives for
NCNB and C&S/Sovran in each state have also been
reviewed in light of the comments received by the
Board. The following discussion provides examples of
programs initiated in certain states by NCNB and
C&S/Sovran.
North Carolina. NCNB's 1990 CRA record reflects
a significant number of CRA-related activities and
initiatives in North Carolina by NCNB-NC. These
activities include:

56. NCNB intends to have this product fully operational and
available within 18 months after the consummation of the proposed
transaction.
57. NCNB states that specific features of the home improvement
product will include: flexible underwriting criteria, a loan/value ratio
of up to 80 percent, extended terms, and no title search requirement
for loans under $5,000. This product has been designed to permit the
use of government or other programs that provide equity grants or
subordinated financing.

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Federal Reserve Bulletin • February 1992

(1) extension of approximately $70 million in new
community development, consumer, and mortgage
loans;
(2) participation in 16 public/private partnerships
designed to make banking services more accessible
to low- to moderate-income consumers and small
businesses, and commitments of $10.3 million to
programs including the Charlotte-Mecklenburg
Housing Partnership, the Asheville-Buncombe
County Minority Business Loan Pool and the
Greensboro Community Home Lending Program;
(3) participation in nine multi-bank loan pools involving funding commitments by NCNB-NC of $7.2
million to address affordable housing needs, small
business loans, downtown redevelopment, creation
of a small business "incubator" and similar programs;
(4) commitment of $4 million to mortgage bond
programs for affordable local housing; and
(5) outreach efforts that included 397 calls on minority-owned businesses and community groups to assess community needs and to market NCNB-NC's
products and services, and 163 meetings with community groups, agencies and local government officials to discuss community needs assessment.
NCNB-NC also developed a home purchase mortgage loan designed to make home purchase credit
more available throughout its communities, including
low- and moderate-income areas. In addition,
NCNB-NC engaged in capital lending and credit education for small businesses controlled by minorities
and women. 58 NCNB-NC also markets and advertises
its products through a program designed to reach all
segments of the community, including low- and moderate-income areas. 59 NCNB-NC uses its community
development corporation ("CDC") to promote community growth and development, particularly in Charlotte and Raleigh,60 and NCNB works with several
organizations to address to some extent the credit
needs in rural and small markets. 61

58. NCNB-NC has a small business call program, including targeted
calls on minority-owned firms, and also participates in the Business
Consortium Fund which provides minority-owned businesses with
contract financing to fill purchase orders.
59. NCNB-NC supplements traditional media communications,
including newspapers, radio, brochures, pamphlets, and billboards,
with personal outreach efforts by bank officers, employees and
directors.
60. These projects include Greenville Affordable Housing in Charlotte and Downtown East Redevelopment Area in Raleigh. Both
projects provide new housing for low- and moderate-income residents.
61. These organizations include the Community Investment Corporation of North Carolina (a state CDC specializing in multi-family
lending for rural and small markets), the North Carolina Enterprise
Corporation (a Small Business Investment Corporation providing
mezzanine financing for rural businesses) and the North Carolina




Texas. NCNB-TX implements the NCNB CRA program in Texas. That program includes the following
activities and initiatives by NCNB-TX:
(1) extension of approximately $389 million in new
consumer, small business and community development loans in low- and moderate-income areas;
(2) participation in 123 public/private partnerships
designed to make banking services more accessible
to low- to moderate-income consumers and small
businesses;
(3) an active call program for minority-owned firms
and small businesses to assess community needs
and market NCNB products and services; and
(4) participation in four multi-bank loan pools with
an aggregate funding commitment by NCNB-TX of
$18 million for affordable housing programs.
NCNB-TX has responded to identified community
credit needs by participating in the Dallas Affordable
Housing Partnership, the Houston Housing Partnership, and the Midland Economic Development Company. 62 In response to comments regarding NCNBTX's small business lending, the bank has taken steps
to increase its SBA lending program by establishing
small business lending centers in major markets. 63
Virginia. NCNB-VA has engaged in outreach efforts
to various governmental, business and community
groups and participated in community development
lending activities consistent with its asset size.64 In
addition, NCNB-VA's board of directors has adopted
a formal CRA program and appointed a community
reinvestment oversight committee to monitor its CRA
programs and initiatives.65
The CRA program implemented by Sovran-VA includes oversight by the board of directors and central
coordination through a community reinvestment office.66 Sovran-VA also has an active officer call program and a comprehensive plan to market its products
and services throughout all segments of its delineated
community. Sovran-VA employs focus groups to ob-

Association of CDCs (an association providing financial assistance to
its 14 CDC members to help carry out economic development
projects, with an emphasis on projects for rural areas).
62. NCNB-TX has also participated in the Austin Double Down
Program for lower income home buyers, the Southern Oaks Affordable Housing program in the Oak Cliff section of Dallas, and the
Tarrant County Affordable Housing Partnership.
63. The center in San Antonio is operating, and other centers are
currently at the staffing and implementation stage.
64. NCNB-VA has assets of $8 million as of June 1991.
65. NCNB-VA's entry into northern Virginia has been recent, and
it has not yet fully implemented its planned marketing and advertising
campaigns.
66. Sovran-VA has also established 50 advisory boards statewide,
consisting of approximately 500 members. These boards have a
racially diverse membership that includes business owners, religious
leaders, and community organizations.

Legal Developments

tain feedback on current or proposed bank products,
and conducts educational seminars for consumers.
In 1990, Sovran-VA introduced several programs
emphasizing small business lending in low- and moderate-income communities. 67 Sovran-VA and its mortgage subsidiary, Sovran Mortgage Company, extended on a state-wide basis 18 percent of its
mortgages and 20 percent of its home improvement
loans in low- and moderate-income neighborhoods. 68
In addition, Sovran-VA's CDC participates in programs designed to revitalize low- and moderate-income areas. 69
Georgia. C&S-GA's participation in community development and redevelopment programs throughout
the state is substantial. In addition, C&S-GA plans to
implement an automated system for tracking the geographic distribution of its loan applications and denials.
Outreach efforts to minority organizations have assisted C&S-GA in identifying and meeting the need for
educational programs for minority small business owners.70 As a result, C&S-GA has developed a program to
sponsor small business seminars targeted to the minority
community, including communities in Atlanta, Savannah
and other areas. C&S-GA is also conducting a direct mail
campaign to targeted low- and moderate-income census
tracts in order to increase its market penetration in those
areas after reviewing 1989 lending results.
C&S-GA and other local financial institutions have
created the Atlanta Mortgage Consortium ("AMC")

67. Under Sovran-VA's small business specialist program (targeting
companies with annual sales under $1 million), 30 business centers
assisted in generating approximately $47 million in loans in 1990. A
similar program focusing on businesses with annual revenues under
$10 million generated $59 million in loans in 1990. Sovran-VA also had
$18 million in loans to farmers outstanding as of December 31, 1990.
68. As of December 31, 1990, Sovran-VA and Sovran Mortgage
Corporation originated 7,829 housing-related loans totalling $461
million. In April 1991, Sovran began offering its Home Mortgage Edge
program that provides closing costs assistance to low- and moderateincome first-time home buyers. Sovran-VA has committed $10 million
to this program for 1991 and has promoted the program through
newspaper advertisements, seminars, targeted mailings and meetings
with realtors. Sovran-VA also actively participates in a variety of
governmentally subsidized, guaranteed, or insured loan programs.
One Protestant argued that low-income individuals may not be
benefiting significantly from the Home Mortgage Edge program. This
program has a maximum income eligibility requirement for borrowers,
and Protestant acknowledges that moderate-income, and some lowincome individuals, would benefit from this program. Even if the
allegation is correct that moderate-income and, only to a lesser extent,
low-income individuals, benefit from this program, the Board notes that
the CRA seeks to encourage lending in both low- and moderate-income
areas, and that this program is only one of a number of programs in
which Sovran-VA participates as a means of helping to meet the credit
needs of various segments of Sovran-VA's community.
69. Sovran-VA also has a sponsorship role in the Virginia Economic
Development Corporation, which promotes economic development of
depressed rural areas.
70. These organizations include the National Association for the
Advancement of Colored People, the Southern Christian Leadership
Council, the Atlanta Business League, and minority leaders within
Georgia communities.




153

which offers reduced rate mortgage loans to low- and
moderate-income individuals who might not qualify
for conventional mortgage financing. C&S-GA has
committed approximately $5 million to AMC's loan
pool. 71 In addition, C&S-GA participates in the Atlanta Equity Fund ("AEF"), which was established to
assist in meeting the need for multi-family housing.72
C&S-GA also works with the Housing Resource Center to support affordable housing. In Savannah,
C&S-GA participated with the Community Housing
Services Agency in a $1.1 million loan to renovate 49
low-income rental units. 73
Florida. NCNB-FL has engaged in a variety of
CRA-related activities, including:
(1) extension of more than $35.5 million in mortgage
loans in low- to moderate-income areas;
(2) commitments of $10 million to the Florida State
Bond Issue to provide mortgage financing to low- to
moderate-income families; and
(3) participation in 25 public/private partnerships
designed to make banking services more accessible
to low- to moderate-income consumers and small
businesses by committing more than $26 million to
programs, including First Housing Development
Corporation, Homes for South Florida, Central
Florida Community Re-Investment and Tampa
Challenge Fund.
NCNB-FL also maintains extensive contact with a
variety of community members to determine community credit needs and to develop products that satisfactorily address those needs. In addition, NCNB-FL
participates in community development and redevelopment projects. The following are examples of the
types of projects in which NCNB-FL has participated
throughout Florida:
(1) Hillsborough County—City of Tampa Challenge
Fund II (financing for rehabilitation housing in lowand moderate income areas) and First Housing
Development Corporation (construction and reha-

71. Since 1988, AMC has made over 600 loans totalling over $30 million
to home buyers in low-income neighborhoods in the Atlanta area.
72. Some Protestants have criticized the funding and progress made
by this program. The Board notes that the AEF is one of a number of
programs in which C&S/Sovran participates in an effort to help meet
the credit needs of the Atlanta community. The Board also notes that
C&S/Sovran has continued its commitment throughout the development of the AEF from the formation of its structure to its corporate
fund raising. Recently, the City of Atlanta and the Atlanta Chamber of
Commerce have made a major commitment to sponsor the AEF, and
the Enterprise Foundation has pledged to invest up to $1 million in the
AEF to match corporate investment commitments.
73. Some Protestants questioned C&S-GA's branch closing policy.
Under C&S-GA's written policy covering branch closings, reductions in
service, and changes in hours, C&S-GA discusses the changes with
community leaders, assesses the impact of the changes, and attempts to
minimize the adverse effects of these changes on the communities served.

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Federal Reserve Bulletin • February 1992

bilitation of low- to moderate-income multi-family
rental housing projects);
(2) Pinellas County—ACTION Fund (low interest
home rehabilitation loans with lower closing costs
and flexible underwriting criteria for low- and moderate-income families);
(3) Dade County—Homes for South Florida (financing for affordable housing developments in South
Florida);
(4) Orange County—Central Florida Community
Reinvestment Corporation (loan pool for financing
low- to moderate-income housing, including single
family homes, apartments and condominiums); and
(5) Sarasota County—Downtown Venice Association (redevelopment loans to small businesses in
downtown Venice).74
C&S-FL has taken steps to address specifically
identified credit needs of its communities, including
low- and moderate-income areas, through special programs. For example, C&S-FL has developed two
special home improvement products targeted to lowand moderate-income areas. In addition, C&S-FL has
created an Enterprise Banking Division to target the
needs of small businesses. This division also coordinates other government funded programs in which the
bank participates. C&S-FL's bank officers actively
participate in various CDCs across the state, and the
bank has participated in several consortiums designed
to rehabilitate or provide affordable housing, including
the Dunbar Industrial Action Development and the
Southwest Florida Coalition for Affordable Housing.
South Carolina. NCNB-SC has implemented its
CRA program through participation in a variety of
programs, including:
(1) extension of approximately $69 million in community development loans, mortgage loans and consumer loans;
(2) participation in six public/private partnerships 75
and commitments of more than $1.8 million to fund
programs, including the West Brandon Neighborhood in Greenville and the Residential Mortgage
Pool in Spartanburg;

74. Some Protestants raised issues regarding NCNB-FL's branch
closing policies. NCNB-FL has established a written policy that
provides guidelines for opening and closing branches, taking into
consideration the impact on low- and moderate-income neighborhoods and input from neighborhood leaders. In response to a comment regarding the closing of its branch in Sulphur Springs, Florida,
NCNB explained that a fire in the building resulted in structural
damage that was too extensive to economically rehabilitate. According to NCNB, customer records for this branch were transferred to a
branch located within approximately one mile of the damaged branch.
75. The primary focus of these private/public partnerships is to
make affordable housing loans through a combination of bank financing and funds from private or public entities.




(3) commitments of more than $897,000 to mortgage
bond programs advancing affordability in local housing;
(4) commitments of $39.1 million to the South Carolina Student Loan Corporation for the 1990-91
school year;
(5) small business loans as a preferred lender designated by the Small Business Administration; and
(6) contributions of more than $830,000 to not-forprofit organizations, with emphasis on those that
support housing, education, small business or economic development.
NCNB-SC offers to low- and moderate-income persons a variety of loan products and services through
the bank and its affiliate, NCNB Mortgage Corporation.76 In addition, NCNB-SC's advertising program
includes a marketing program targeted at low- and
moderate-income neighborhoods. NCNB-SC participates in a full array of community development and
redevelopment programs, including government and
private sector projects that promote economic revitalization and growth. 77
C&S-SC also offers a variety of loan products designed to meet the needs of its communities. For
example, C&S-SC has developed a home improvement program call "Homeline" that may be used to
finance the alteration, repair, conversion, or modernization of an existing owner-occupied, single-family or
duplex dwelling for lower-income individuals. In addition, C&S-SC is actively involved in community development programs.
Tennessee. Sovran-TN's CRA program includes a
community reinvestment department to provide direct
contact with members of the community, government
officials, and community-based organizations in order
to ascertain the credit needs of Sovran-TN's communities.78 Sovran-TN has organized a marketing program and also developed an extensive officer call
program for all small business lending officers, with
special emphasis on identifying the credit needs of

76. In 1990, NCNB-SC and NCNB Mortgage Corporation made 159
housing-related loans totalling $3.5 million to persons of low- and
moderate-income, representing 15.4 percent of all mortgage lending
by these institutions in the state. NCNB-SC has also developed a
special mortgage program to meet the credit needs of low- and
moderate-income borrowers, including a program that provides for a
lower downpayment and a more liberal debt/income ratio. In addition,
NCNB-SC has a total of $55 million of consumer loans outstanding in
low- and moderate-income communities.
77. In 1990, NCNB-SC and NCNB Mortgage Corporation originated $7.4 million in FHA and VA home loans. In addition, NCNB-SC
has $10.8 million in outstanding SBA loans and a total of $5.4 million
in agricultural loans.
78. The credit needs of Sovran-TN's communities are monitored by
a CRA Steering Committee which, in turn, receives input from five
regional CRA committees.

Legal Developments

businesses serving low- and moderate-income areas
through products, services and employment. The
board of directors of Sovran-TN participates in the
formulation of CRA policies and reviewing the bank's
performance. Sovran-TN actively supports partnerships with government and non-profit organizations
involved in affordable housing and economic development. For example, in the Nashville area, Sovran-TN
participates in a consortium of 10 banks in providing
funding for the Metropolitan Development Housing
Authority to build affordable housing, and has committed $2.5 million to Affordable Housing of Nashville's revolving loan fund. Sovran-TN also supports
the Chattanooga Neighborhoods Enterprise program
for low- and moderate-income housing, and in the
Memphis area, actively lends to the Facility Development Corporation for financing its affordable housing
development program.
District of Columbia. Sovran-DC has activities to
ascertain the credit needs of its communities 79 and
CRA performance is a regular consideration in its
board of directors planning and review process.
Sovran-DC's marketing programs, including advertisements targeted for low- and moderate-income areas, inform all segments of its communities on the
financial products and services offered by the bank.
These products include a variety of loans designed to
meet the needs of small businesses and individuals.80
NCNB has also targeted $140 million over a 10-year
period for community development lending in the
District of Columbia market. This program envisions
the offering of a variety of credit products, including
flexible credit terms, flexible underwriting standards,
and pooling of credit resources. NCNB intends to
direct this program toward low- and moderate-income
communities and other markets that have been historically underserved.
The Board notes that the District of Columbia
Superintendent of Banking and Financial Institutions
("Superintendent"), is charged under the laws of the
District to assess the impact of proposed acquisitions
on the availability of credit to all segments of the

79. Sovran-DC identifies community credit needs through contacts
made by bank officials with a variety of individuals, community
groups, government representatives and private and non-profit developers. Sovran-DC has also formed a committee of local District of
Columbia residents and community leaders to advise it on community
needs.
80. Sovran-DC has identified affordable housing and small business
lending as primary credit needs in the community. With the District of
Columbia Department of Housing and Community Development,
Sovran-DC has developed an affordable mortgage loan program that
permits individuals with certain income levels to use government
subsidies to purchase homes within the District of Columbia.
Sovran-DC has committed $10 million to this program. In addition,
Sovran-DC offers SBA loans and currently has a number of small
business loans outstanding.




155

community, including low- and moderate-income areas, and to convey a recommendation to the Council
of the District of Columbia ("Council") based on this
assessment. In carrying out its responsibility to consider fully the Superintendent's recommendation, the
Council held a public hearing in the District and
reviewed the CRA performance of Sovran-DC and the
CRA performance plan of NCNB. Based on this
review, the Council approved NCNB's acquisition of
Sovran-DC. 81
G. HMDA Data and Lending Practices
The Board has reviewed the 1990 HMDA data reported by NCNB and C&S/Sovran. Recent amendments to the HMDA for the first time require banking
organizations to collect certain information regarding
applicants for bank mortgage loans and to report the
information regarding both loan approvals and denials
to the banking agencies and the public. The information includes data on the race, gender and income of
individual applicants, in addition to the location of the
property securing the potential loan and the disposition of the application.
NCNB's 1990 HMDA data show rates for housing
loan approvals and denials that vary for different
groups when compared by income levels or by race or
national origin. As a general matter, NCNB's housingrelated loan denial rates were greater for minority loan
applicants as compared to non-minority applicants in a
substantial number of NCNB's service communities.
On the basis of these data, several Protestants have
alleged illegal discriminatory lending practices by
NCNB and C&S/Sovran. 82 In addition, several Protestants contend that these data demonstrate areas of
weakness in the loan penetration by these institutions
in low- and moderate-income neighborhoods.
All banks have an obligation to ensure that their
lending practices are based on criteria that assure safe
and sound lending and equal access to credit for
creditworthy applicants regardless of gender, race or
national origin. The Board is concerned when the
lending record of an institution indicates disparities in
81. The Superintendent noted a concern that lending decisions
continue to be made locally following this acquisition, and that
Sovran-DC's management reflect a representation of local interests.
NCNB stated in hearings held by the District of Columbia government
that lending decisions up to Sovran-DC's authorized lending limit of
$50 million will be made locally. In addition, NCNB's senior management is currently evaluating potential local candidates for corporatelevel as well as bank-level (including Sovran-DC) boards of directors.
NCNB also intends to maintain a citizens advisory body comparable
to Sovran-DC's current citizens advisory board.
82. Protestants' allegations of illegal discrimination concern NCNB
and C&S/Sovran HMDA data for particular communities in various
states, including Florida, Georgia, North Carolina, South Carolina,
Texas, and Virginia.

156

Federal Reserve Bulletin • February 1992

lending to minority applicants. The Board also recognizes that HMDA data provide only a limited measure
of any given institution's lending in the communities
served, and that HMDA data have limitations that
provide an inadequate basis, absent other information,
for determining whether an institution has engaged in
illegal discrimination on the basis of gender, race or
national origin.
The most recent examinations for CRA compliance
conducted by bank supervisory agencies found no
evidence of illegal discrimination or other illegal credit
practices in any subsidiary banks of NCNB or C&S/
Sovran. In the case of NCNB's seven subsidiary
national banks, the OCC reviewed and sampled loan
documentation for loans granted as well as loans
denied in light of the 1990 HMDA data.
NCNB has also taken steps designed to improve its
lending to minorities and low- and moderate-income
neighborhoods. For example, NationsBank and Association of Community Organizations for Reform Now
('ACORN") have agreed to establish a program to
provide loans, counseling, consumer education, and
housing opportunities to low- and moderate-income and
minority communities. Under this program, ACORN
will have special loan counseling offices for low- and
moderate-income home buyers in Texas and Washington, D.C. Participants will receive loan counseling,
attend budgeting and homeownership workshops, and
qualify to obtain mortgage interest rates one point
below market. In addition, loan approval standards will
assess the creditworthiness of low- and moderate-income home buyers under criteria which include:
(1) alternate sources of income such as part-time
jobs, self-employment and voluntary child support;
(2) credit histories of paying rent and utilities; and
(3) third- party contributions toward settlement
costs and downpayments.
NCNB currently participates in a variety of local
community credit counseling programs and proposes
to expand those activities through the development of
programs that will coordinate and expand upon the
counseling efforts of local organizations. NCNB also
states that NationsBank will recognize participation in
credit counseling programs as an offset for weakness
in a loan applicant's credit history.
NationsBank Community Investment Program also
contains a $10-billion, 10-year commitment to community-development lending in the banking markets
served by NationsBank. Loans made under this program will be made for the purpose of extending credit
to economically underserved areas, low- and moderate-income consumers, and small businesses. NCNB
has stated that the $10 billion lending target is structured as a minimum, and there will be no limit on the




level of funds to be lent in any community or region.
Lending areas to be targeted under the program include single-family residential mortgage, home improvement, combination rehabilitation/mortgage financing, and multi-family affordable housing; small
business emphasizing the needs of minority-owned
small businesses and agriculture/rural markets; and
general consumer lending. As part of this program,
NationsBank intends to utilize flexible credit terms
and flexible underwriting standards.
Several commenters requested that a mechanism be
established to ensure effective monitoring of the proposed NationsBank CRA program and lending goal. In
particular, some commenters stated that NCNB
should be required to incorporate input from members
of the communities to be served by NationsBank in the
decision-making process for allocating the $10 billion,
10-year lending goal and recommended that this goal
be monitored by a community-based task force in
addition to regulatory oversight.
The NationsBank Community Investment Program
contains elements designed to assess and monitor the
local impact of the lending target. NCNB intends to
assure the local impact of the lending goal through a
combination of the NationsBank corporate goals, local
community goals to be established based on local
needs assessment analyses, the concept of neighborhood targeting, and the incorporation of ideas solicited
from the local community.
In each local community, NationsBank will define a
neighborhood or geographic region within its community delineation to receive concentrated emphasis in
the delivery of the NationsBank Community Development Program. The targeting of "NationsBank Neighborhoods" will supplement the NationsBank local
community goals and initiatives. Progress in the targeted neighborhoods will be specifically monitored in
addition to NCNB's local, state, and national performance measurement. 83 NCNB states that it will monitor its performance in meeting the lending target
through internal geocoding systems. Performance results will be published as part of local CRA Statements, at the county and MSA levels, no less than
annually, and will be reviewed quarterly for internal
purposes. The availability of results will be announced
publicly, and a breakdown by loan type will be provided. In addition, performance reports will be made a
part of the NationsBank quarterly and annual reports.

83. NCNB states that performance oversight will be the responsibility of the NationsBank boards of directors CRA committees, the
state CRA management committees, the president of the bank, the
principal community investment officer, and the community investment coordinators.

Legal Developments

These mechanisms established by NCNB are designed to assure local input and accountability in
carrying out this lending program, while leaving flexibility to respond to the different types and level of
credit needs in different communities. The efforts by
NationsBank to implement this program will be monitored by the federal banking agencies through the
examination process and will be taken into account in
future applications by NationsBank to expand its
deposit-taking facilities.

H. Conclusion Regarding Convenience and
Needs Factors
In considering the overall CRA performance records
of NCNB and C&S/Sovran and the effect of the
proposal on the convenience and needs of the communities served by these institutions, the Board has
carefully considered the entire record, including the
substantial public comment in this case. The Board
notes that a number of commenters raised both specific and general concerns about the adequacy of
existing CRA programs in certain areas. Other commenters indicated that these programs were very productive in their community and expected that the
proposed merger would add financial strength to these
existing programs. Based on a review of the entire
record of performance, including information provided
by the commenters, the Board believes that the efforts
made by NCNB and C&S/Sovran to meet the credit
needs of all segments of the communities served by
these banks, including low- and moderate-income
neighborhoods, are substantial and, on balance, satisfactory. This conclusion is confirmed by the most
recent CRA-examination reports for the subsidiary
banks of NCNB and C&S/Sovran.
The Board recognizes, however, that there are areas of
weakness in the CRA programs established by NCNB
and C&S/Sovran. As indicated in its $10 billion lending
program, NationsBank will expand existing programs and
implement other initiatives targeting affordable housing,
some of which have been discussed in this Statement, to
improve the lending patterns reflected in the 1990 HMDA
data. These initiatives — in the areas of innovative product development, proactive consumer education and
counseling, branch development, targeted marketing, and
participation in public/private partnerships and non-traditional ways of serving low-income and minority credit
needs — are designed to increase housing-related and
other types of credit by geographic area and among
demographic sectors of the communities served by these
institutions.
The Board believes that these initiatives, and other
steps proposed by NCNB, will help NationsBank to
draw on the corporate programs and existing CRA




157

initiatives of NCNB and C&S/Sovran and to address
weaknesses in the CRA performance record of NCNB
and C&S/Sovran that have been described by commenters and in the examination process.
In this light, after carefully considering all the facts of
record, including the testimony at the public meetings, the
comments received, and relevant examination reports,
the Board concludes that, on balance, the convenience
and needs considerations, including the CRA records of
performance of NCNB and C&S/Sovran, are consistent
with approval of these applications. The Board expects
NCNB to implement fully its CRA initiatives announced
for NationsBank and to continue to improve its CRA
performance, including its housing-related lending, and to
implement immediately steps to address areas for improvement noted in its CRA performance examinations.
The Board will consider the progress made in these areas
in future applications by NationsBank.84

Acquisition of Nonbanking

Companies

NCNB has applied under section 4(c)(8) of the BHC
Act to acquire the nonbanking subsidiaries of C&S/
Sovran. The Board has determined by regulation or
order that each of the activities of these companies is
closely related to banking and generally permissible
for bank holding companies under section 4(c)(8) of
the BHC Act, and has approved applications by C&S/
Sovran to own shares in each of these companies. 85
NCNB has committed to abide by all of the parameters, conditions and commitments relied on by the
Board in the relevant orders and regulations regarding
these companies.
NCNB operates subsidiaries engaged in nonbanking
activities that compete with many of the nonbanking
84. Several Protestants have requested that the Board hold a formal
public evidentiary hearing on the application. Generally, under the
Board's rules, the Board may, in its discretion, hold a public hearing
or meeting on an application to clarify factual issues related to the
application and to provide an opportunity for testimony, if appropriate. 12 U.S.C. §§ 263.3(e) and 262.25(d).
The Board has carefully considered requests for a formal public
hearing in this case. The Board has provided an extended period for
public comment in this case, permitting interested persons a substantial period to provide written comments, and commenters have
submitted substantial written and oral comments that have been
considered by the Board. The Board also notes that it held four public
meetings on this application. The Protestants requesting a formal
public evidentiary hearing have indicated general disagreement regarding the appropriate conclusions to be drawn from the facts of
record, but have not identified facts that are material to the Board's
decision and that are in dispute. In light of this, the Board has
determined that a public hearing is not necessary to clarify the factual
record in these applications, or otherwise warranted in this case.
Accordingly, these requests for a formal public hearing on this
application are hereby denied.
85. The Board previously approved the acquisition by C&S/Sovran
of C&S and Sovran and all of the banking and nonbanking subsidiaries
of both C&S and Sovran. C&S/Sovran Corporation!Avantor Financial Corporation, 76 Federal Reserve Bulletin 779 (1990).

158

Federal Reserve Bulletin • February 1992

subsidiaries of C&S/Sovran. In each case, the markets
for these nonbanking services are unconcentrated and
there are numerous providers of these services. In
light of these facts and the shares of each of these
markets controlled by NCNB and C&S/Sovran, the
Board concludes that consummation of this proposal
would not have a significantly adverse effect on competition for these services in any relevant market.
There is no evidence in the record to indicate that
approval of the proposed acquisition of shares of any
of the nonbanking companies of C&S/Sovran, within
the parameters, conditions and commitments relied on
by the Board in its orders governing these companies,
would result in any significantly adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices that are not outweighed by public
benefits. Accordingly, the Board has determined that
the balance of public interest factors that the Board
must consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval. 86
Insurance Agency Subsidiaries. NCNB has also requested Board approval to permit Citizens and Southern Insurance Services, Inc., C&S/Sovran Insurance
Services, Inc., and Sovran Insurance Inc., (the "Insurance Subsidiaries") to continue, following acquisition
of these companies by NCNB, to conduct insurance
agency activities pursuant to section 4(c)(8)(D) of the
BHC Act ("Exemption D"). 87 The Board has previously determined that the Insurance Subsidiaries were
entitled to the privileges of Exemption D after their

86. NCNB has also applied to merge its securities subsidiary,
NCNB Capital Markets, inc., with C&S/Sovran's securities subsidiary, Sovran Investment Corporation, under the name NationsBank
Capital Markets, Inc. ("NCMI"). NCNB Capital Markets, Inc., and
Sovran Investment Corporation engage in substantially the same
securities activities, including limited securities underwriting and
dealing activities. See NCNB Corporation, 75 Federal Reserve Bulletin 520 (1989); NCNB Corporation, 76 Federal Reserve Bulletin 864
(1990); Sovran Financial Corporation, 76 Federal Reserve Bulletin
256 and 857 (1990). NCNB has committed that the activities of NCMI
will be conducted pursuant to the commitments made by NCNB and
Sovran as well as the conditions and limitations imposed by the Board
in the Orders approving these activities.
87. 12 U.S.C. § 1843(c)(8)(D). Exemption D permits a bank holding
company to engage in "any insurance activity which was engaged in
by the bank holding company or any of its subsidiaries on May 1,
1982." Such activities may be conducted in the grandfathered company's home state, states adjacent thereto, or any state where the
company was authorized to operate an insurance business before the
grandfather date. The Board has previously determined that an
insurance agency which is entitled to continue to sell insurance under
Exemption D does not lose its grandfathered rights if the agency is
acquired by another bank holding company, provided the agency
maintains its separate corporate structure and its insurance activities
are not extended to other subsidiaries within the acquiror's organization. Sovran Financial Corporation, 73 Federal Reserve Bulletin 672
(1987) ("Sovran"). This determination has been upheld by the courts.
National Ass'n of Casualty and Surety Agents v. Board of Governors,
856 F.2d 282, reh'g denied en banc, 862 F.2d 351 (D.C. Cir. 1988),
cert, denied, 490 U.S. 1090 (1989).




acquisition by C&S/Sovran.88 The Insurance Subsidiaries will remain separate subsidiaries of NationsBank,
and the grandfathered insurance activities of the Insurance Subsidiaries will not be conducted by any of
NationsBank's other subsidiaries. For the reasons
stated in the Board's previous orders regarding the
Insurance Subsidiaries and in the Board's Sovran decision, the Board has determined that the Insurance
Subsidiaries may continue to engage in insurance activities pursuant to Exemption D following the acquisition
of these subsidiaries by NCNB. 89
Export Trading and Edge Act Companies. The
Board has also considered NCNB's proposal to
acquire Commerce Trading Corporation pursuant
to section 4(c)(14) of the BHC Act (12 U.S.C.
§ 1843(c)(14)), and to acquire indirectly the shares of
Citizens and Southern International Bank and Citizens and Southern International Bank of Atlanta
under the Edge Act. After consideration of all the
factors specified in the Board's Regulation K and
based on all of the facts of record, the Board has
determined that disapproval of these proposed investments is not warranted.
Conclusion
Based on all of the facts of record, including the
commitments made by NCNB in this case, and for the
reasons discussed in this Statement, the Board has
determined that the applications should be, and hereby
are, approved. As noted in the Board's Order in this
case, the Board's approval is expressly conditioned
upon compliance with the commitments made by
NCNB in connection with these applications, including the commitments to divest certain bank offices,
and the commitments and initiatives relating to its
performance under the Community Reinvestment Act.
The determination as to the nonbanking activities
approved in this case is also subject to all of the
conditions contained in Regulation Y, including those
in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
225.4(d) and 225.23(b)(3)), and to the Board's authority to require such notification or termination of the

88. See C&S/Sovran Corporation, 76 Federal Reserve Bulletin 853
(1990). C&S/Sovran Insurance Services, Inc., was known at that time
as "Sovran Insurance Agency, Inc."
89. Pursuant to Exemption D, the insurance agency activities of
Citizens and Southern Insurance Services, Inc., may be conducted
only in Georgia, states adjacent to Georgia, or states in which this
company lawfully engaged in insurance activities on May 1, 1982; the
insurance agency activities of Sovran Insurance, Inc., may be conducted only in Maryland, states adjacent to Maryland, and states in
which this company lawfully engaged in insurance activities on May 1,
1982; and the insurance agency activities of C&S/Sovran Insurance
Services, Inc., may be conducted only in Virginia, states adjacent to
Virginia, or states in which this company lawfully engaged in insurance activities on May 1, 1982.

Legal Developments

activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance
with, or to prevent evasion of, the provisions and
purposes of the BHC Act and the Board's regulations
and orders issued thereunder. All of the commitments
and conditions relied on by the Board in reaching its
decision in this case are conditions imposed in writing
by the Board in connection with its findings and
decision and may be enforced under applicable laws.
December 4, 1991
JENNIFER J. JOHNSON

Associate Secretary of the Board

Appendix
Deposit information for states in which NCNB and
C&S/Sovran compete. Deposit data are as of June 30,
199J.
1. Virginia
NCNB is the 139th largest depository organization in
Virginia, holding $7.2 million in deposits, representing
less than one percent of the total deposits in commercial
banking organizations in the state. C&S/Sovran is the
largest depository organization in Virginia, holding $11.4
billion in deposits, representing approximately 20.8 percent of the total deposits in commercial banking organizations in the state. Upon consummation of this proposal,
NationsBank would be the largest depository organization in Virginia, with deposits of $11.4 billion, representing approximately 21 percent of state deposits.
2. Georgia
NCNB is the 83rd largest depository organization in
Georgia, holding $69 million in deposits, representing less
than one percent of the total deposits in commercial
banking organizations in the state. C&S/Sovran is the
largest depository organization in Georgia, holding $9.2
billion in deposits, representing approximately 18.1 percent of the total deposits in commercial banking organizations in the state. Upon consummation of this proposal,
NationsBank would be the largest depository organization in Georgia, with deposits of $9.3 billion, representing
approximately 18.2 percent of state deposits.
3. Florida
NCNB is the 4th largest depository organization in
Florida, holding $10 billion in deposits, representing
approximately 8.6 percent of the total deposits in
commercial banking organizations in the state. C&S/
Sovran is the 6th largest depository organization in
Florida, holding $6.1 billion in deposits, representing
approximately 5.2 percent of the total deposits in




159

commercial banking organizations in the state. Upon
consummation of this proposal, NationsBank would
be the 2nd largest depository organization in Florida,
with deposits of $16.1 billion, representing approximately 14.0 percent of state deposits.
4. Maryland
NCNB is the 21st largest depository organization in
Maryland, holding $284.8 million in deposits, representing less than one percent of the total deposits in
commercial banking organizations in the state. C&S/
Sovran is the 4th largest depository organization in
Maryland, holding $3.5 billion in deposits, representing approximately 8 percent of the total deposits in
commercial banking organizations in the state. Upon
consummation of this proposal, NationsBank would
be the fourth largest depository organization in Maryland, holding deposits of $3.8 billion, representing
approximately 8.7 percent of state deposits.
5. South Carolina
NCNB is the third largest depository organization in
South Carolina, holding $2.4 billion in deposits, representing approximately 12.4 percent of the total deposits
in commercial banking organizations in the state. C&S/
Sovran is the second largest depository organization in
South Carolina, with $2.9 billion in deposits, representing approximately 15.6 percent of the total deposits in
commercial banking organizations in the state. Upon
consummation of this proposal, NationsBank would be
the second largest depository organization in South
Carolina, with deposits of $5.3 billion, representing
approximately 28 percent of total deposits in commercial banking organizations in South Carolina.

Banc One Corporation
Columbus, Ohio
Order Approving Acquisition of a Bank
Holding Company and Banking and
Nonbanking Subsidiaries
Banc One Corporation, Columbus, Ohio ("Banc
One"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 3(a) of
the BHC Act (12 U.S.C. § 1842(a)(3)) to acquire
Premier Bancorp, Inc., Baton Rouge, Louisiana
("Premier"), thereby indirectly acquiring Premier
Bank, N.A., Baton Rouge, Louisiana ("Bank"). 1

1. Banc One has entered into an agreement with Premier under
which Banc One will purchase a $65 million 15-year subordinated
capital note, amounting to approximately 26 percent of Premier's total
capital, and will have an option to acquire all of Premier's outstanding
stock, exercisable any time during the fourth or fifth year after the

160

Federal Reserve Bulletin • February 1992

Banc One has also applied for the Board's approval
under section 4(c)(8) of the BHC Act to acquire
Premier Securities Corporation, Baton Rouge, Louisiana ("PSC"), and thereby engage in securities brokerage services, and Premier Investment Advisors, Inc.,
Baton Rouge, Louisiana ("PIA"), and thereby engage
in investment advisory services. These activities are
authorized for bank holding companies pursuant to the
Board's Regulation Y (12 C.F.R. 225.25(b)(4) and
(b)(15)), and Banc One proposes to conduct these
activities nationwide.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
duly published (56 Federal Register 37,553 (1991)).
The time for filing comments has expired, and the
Board has considered the applications and all the
comments received in light of the factors set forth in
sections 3(c) and 4(c)(8) of the BHC Act.
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in
which [the] bank is located, by language to that effect
and not merely by implication." Banc One's home
state is Ohio, and Premier's home state is Louisiana. 2
The statute laws of Louisiana expressly authorize
any out-of-state bank holding company to acquire a
bank holding company or bank in Louisiana if the
Commissioner of Financial Institutions for the state of
Louisiana determines that the law of the state in which
the out-of-state bank holding company has its principal
place of business permits Louisiana bank holding
companies to acquire banks and bank holding companies in that state. 3 Ohio law expressly authorizes the
acquisition of an Ohio bank or bank holding company
by any bank holding company in another state if the
Superintendent of Banks determines that the laws of
such other state permit an Ohio bank or bank holding

effective date of the option. Premier may cancel the option only upon
Banc One giving notice of their intent to exercise the option and only
upon paying a substantial cancellation fee and accelerating the repayment of the capital note. The agreements between Banc One and
Premier place significant restrictions on the operations of Premier,
including on its ability to redeem stock, make investments or acquisitions, incur indebtedness, engage in a merger, or sell its bank
subsidiary. In addition, Premier is required to designate representatives to confer on a regular and frequent basis with Banc One. In light
of the option and other management restrictions and relationships
placed on Premier, Banc One has applied to acquire control of Premier
within the meaning of the BHC Act.
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
3. La. Rev. Stat. Ann. § 6:533.A(3) (West Supp. 1991).




company to acquire a bank or bank holding company
having its principal place of business in such other
state on terms that are, on the whole, substantially no
more restrictive than those established by Ohio law. 4
The Louisiana Commissioner has determined that
Banc One's proposed acquisition of Premier is specifically authorized by Louisiana law and that Banc One
has complied with all the pertinent provisions of
Louisiana law. Based on a review of the state statutes
and all the facts of record, the Board concludes that
the proposed acquisition is not barred by the Douglas
Amendment.
Banc One, with total consolidated assets of $46.3
billion,5 controls 51 banking subsidiaries in Ohio,
Kentucky, Indiana, Michigan, Wisconsin, Illinois, and
Texas. 6 Banc One is the second largest banking organization in Ohio, controlling approximately $11.7 billion in deposits, representing approximately 13.8 percent of total deposits in commercial banks in the state.
Premier, a one-bank holding company that operates in
nine banking markets, is the third largest banking
organization in Louisiana, controlling deposits of $3.5
billion, representing approximately 10.7 percent of
total deposits in commercial banks in the state. Consummation of this proposal would not result in any
significantly adverse effect on the concentration of
banking resources in Ohio or Louisiana.
Banc One does not compete directly with Premier in
any banking market. Accordingly, consummation of
this proposal would not result in any significantly
adverse effect on the concentration of resources or on
competition in any relevant banking market.
The financial and managerial resources and future
prospects of Banc One, Premier, and their subsidiary
banks are consistent with approval. In this regard, the
Board notes that Bank's operating results for the first
three quarters of this year reflect a strengthening of the
bank's capital and reserve accounts. Considerations
relating to the convenience and needs of the communities to be served also are consistent with approval of
this application.

4. Ohio Rev. Code Ann. § 1105.01 (Page Supp. 1990).
5. Asset data are as of June 30, 1991. Ohio deposit data are as of
June 30, 1990, and Louisiana deposit data are as of December 31,
1990.
6. In addition, Banc One indirectly holds through its Texas subsidiary bank 74.1 percent of the voting shares of The State Bank and
Trust Company of Golden Meadow, Golden Meadow, Louisiana
("Golden Meadow"). Banc One acquired the shares of Golden
Meadow through the collection of a debt previously contracted in
good faith, is presently not exercising operating control over the bank,
and intends to divest of its shares. Accordingly, Banc One's holding of
Golden Meadow has no competitive effect on this proposal.

Legal Developments

Financial

Responsibility

In connection with this application, Banc One has
requested that the Board waive any requirement of
the Board that Banc One serve as a source of
financial strength to Bank until such time as Banc
One exercises the option and acquires actual ownership of all of the shares of Premier. 7 The Board has
considered this request and determined that it is not
appropriate to waive this requirement given the facts
of this case. The Board notes that the option agreement and capital note agreement together provide a
mechanism for Banc One to exert control over the
future ownership of Premier and many of the most
important management decisions of Premier. For
example, the agreements require management of
Premier to consult actively with Banc One representatives, and subjects expansion proposals and a
number of other matters to Banc One's express
approval. In addition, the option agreement has been
structured to permit Banc One to benefit from the
continued improved performance of Bank, while
prohibiting the acquisition of Premier by other parties without a substantial penalty. On the other hand,
the option agreement permits Banc One to terminate
the option in the event that Bank should experience
difficulties in the future. Because of the significant
involvement Banc One would have in the management and policies of Premier under the agreements
and the manner in which the option preserves solely
for Banc One the benefits of this involvement, the
Board believes that it would not be appropriate to
relieve Banc One of the responsibility to serve as a
source of financial strength to Bank in this case.
Nonbanking

Activities

Banc One has also applied, pursuant to section 4(c)(8)
of the BHC Act, to engage through PSC in securities
brokerage services and through PIA in investment advisory services. As noted above, these activities are permissible for bank holding companies under the Board's

7. 12 C.F.R. 225.4(a)(1). Also see Policy Statement; Responsibility
of Bank Holding Companies to Act as Sources of Strength to Their
Subsidiary Banks, 52 Federal Register 15,707 (1987).




161

Regulation Y and Banc One proposes to conduct these
activities in accordance with the Board's regulations.
In light of the facts of record, the Board concludes
that Banc One's acquisition of PSC and PIA would not
significantly affect competition in any relevant market.
Furthermore, there is no evidence in the record to
indicate that consummation of this proposal is likely to
result in any significantly adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices. Accordingly, the Board has determined that
the balance of public interest factors it must consider
under section 4(c)(8) of the BHC Act is favorable and
consistent with approval of Banc One's application to
acquire PSC and PIA.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval is
expressly conditioned upon compliance with the commitments made by Banc One in connection with these
applications. The acquisition of Bank shall not be
consummated before the thirtieth calendar day following the effective date of this Order, and the acquisitions of Bank, PSC, and PIA shall not be consummated later than three months after the effective date
of this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Cleveland, pursuant to delegated authority. The determinations as to the nonbanking activities are subject to
all of the conditions contained in the Board's Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and
to the Board's authority to require such modification or
termination of the activities of a holding company or
any of its subsidiaries as the Board finds necessary to
assure compliance with, or prevent evasions of, the
provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder.
By order of the Board of Governors, effective
December 23, 1991.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, LaWare, and Phillips. A b s e n t and not voting: Governors Kelley and L i n d s e y .
JENNIFER J. JOHNSON

Associate Secretary of the Board

162

Federal Reserve Bulletin • February 1992

ORDERS ISSUED UNDER THE FINANCIAL
ACT CTIRREA
ORDERS")

INSTITUTIONS

REFORM, RECOVERY,

AND

ENFORCEMENT

Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and
the General Counsel of the Board as listed below. Copies are available upon request to the Freedom of
Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.

Citizens Financial Services, Inc.,
Mansfield, Pennsylvania

APPLICATIONS

APPROVED

Surviving
Bank(s)

Acquired
Thrift

Bank Holding Company

Star Savings and Loan
Association,
Sayre, Pennsylvania

UNDER BANK

HOLDING

First Citizens
National Bank,
Mansfield,
Pennsylvania

COMPANY

Approval
Date
November 29, 1991

ACT

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

Section 3

Applicant(s)
SunTrust Banks, Inc.,
Atlanta, Georgia
Sun Banks, Inc.,
Orlando, Florida

Bank(s)
Florida WestCoast Banks, Inc.,
Venice, Florida

Effective
Date
December 18, 1991

Section 4

Applicant(s)
First of America Bank Corporation,
Kalamazoo, Michigan

Bank(s)
Champion Federal Savings and Loan
Association,
Bloomington, Illinois

Effective

December 26, 1991

Sections 3 and 4

Applicant(s)
NCNB Corporation,
Charlotte, North Carolina




Bank(s)
C&S/Sovran Corporation,
Atlanta, Georgia, and
Norfolk, Virginia

Effective
V^xe.
December 4, 1991

Legal Developments

APPLICATIONS

APPROVED

UNDER BANK HOLDING

COMPANY

163

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)
AmFirst Financial Services, Inc.,
McCook, Nebraska
Banco de Santander, S.A. de
Credito,
Santander, Spain
Belleville Bancshares
Corporation,
Belleville, Wisconsin
Boatmen's Bancshares, Inc.,
St. Louis, Missouri

State Bancshares, Inc.,
Benkelman, Nebraska
Santander National Bank,
Bayamon, Puerto Rico

Reserve
Bank

Bank(s)

CBOC, Inc.,
Oconto Falls, Wisconsin

Community Financial of
Kentucky, Inc.,
Louisville, Kentucky
Cowlitz Bancorporation,
Longview, Washington
Farmersville Bancshares, Inc.,
Farmersville, Texas
First Beardstown Bancorp, Inc.,
Beardstown, Illinois
First Citizens Financial Corp.,
Charles City, Iowa
First Holding Company of Park
River Inc.,
Park River, North Dakota
First National Bancorp,
Gainesville, Georgia

The First National Bank of
Artesia Employee Stock
Ownership Plan,
Artesia, New Mexico




Effective
Date

Kansas City

November 26, 1991

New York

November 27, 1991

Belleville State Bank,
Belleville, Wisconsin

Chicago

November 22, 1991

Founders Bancorporation,
Inc.,
Oklahoma City,
Oklahoma
Community Bank of
Oconto County,
Oconto Falls,
Wisconsin
Security Bancshares of
Marion County, Inc.,
Springfield, Kentucky
The Cowlitz Bank,
Longview, Washington
First Bank,
McKinney, Texas
First State Bank of
Beardstown,
Beardstown, Illinois
Alta Vista Bancshares,
Inc.,
Alta Vista, Iowa
Security State Bank of
Adams,
Adams, North Dakota
First National Bancshares
of Paulding County,
Inc.,
Dallas, Georgia
First Artesia Bancshares,
Inc.,
Artesia, New Mexico

St. Louis

December 12, 1991

Chicago

November 29, 1991

St. Louis

November 22, 1991

San Francisco

November 25, 1991

Dallas

November 27, 1991

Chicago

November 27, 1991

Chicago

November 27, 1991

Minneapolis

December 6, 1991

Atlanta

December 16, 1991

Dallas

December 6, 1991

164

Federal Reserve Bulletin • February 1992

Section 3—Continued

Applicant(s)
Flatonia Bancshares, Inc.,
Flatonia, Texas
Flatonia Bancshares - Delaware,
Inc.,
Wilmington, Delaware
FNB Bancorporation, Inc.,
Ft. Mitchell, Kentucky
Georgia Bank Financial
Corporation,
Augusta, Georgia
Henning Bancshares, Inc.,
Henning, Minnesota
Kansas Bank Corporation,
Liberal, Kansas
Lindoe, Inc.,
Ordway, Colorado
The Merchants Holding
Company,
Winona, Minnesota
NBD Bancorp, Inc.,
Detroit, Michigan
Old Second Bancorp, Inc.,
Aurora, Illinois
Prairie Bancshares, Inc.,
Lester Prairie, Minnesota
Republic Financial Corporation,
Wichita, Kansas
Sky Valley Bank Corp.,
Alamosa, Colorado
Southwest Bancshares, Inc.,
Trumann, Arkansas
State National Bancshares, Inc.,
Wayne, Nebraska
Union Bancshares, Inc.,
Blairsville, Georgia
United Missouri Bancshares,
Inc.,
Kansas City, Missouri




Reserve
Bank

Bank(s)

Effective
Date

Flatonia State Bank,
Flatonia, Texas

Dallas

December 23, 1991

First National Bank of
Northern Kentucky,
Ft. Mitchell, Kentucky
Georgia Bank & Trust
Company of Augusta,
Augusta, Georgia
Battle Lake Bancshares,
Inc.,
Battle Lake, Minnesota
Syracuse Financial
Company,
Syracuse, Kansas
The Gunnison Bank and
Trust Company,
Gunnison, Colorado
Bank of Melrose,
Melrose, Wisconsin

Cleveland

December 16, 1991

Atlanta

December 19, 1991

Minneapolis

November 29, 1991

Kansas City

December 26, 1991

Kansas City

November 27, 1991

Minneapolis

December 4, 1991

Chicago

December 19, 1991

Chicago

December 17, 1991

Minneapolis

December 4, 1991

Kansas City

December 6, 1991

Kansas City

December 18, 1991

St. Louis

December 4, 1991

Kansas City

December 11, 1991

Atlanta

November 27, 1991

Kansas City

December 6, 1991

Gainer Corporation,
Merrillville, Indiana
Kane County Bancshares,
Inc.,
Elburn, Illinois
Silver Lake
Bancorporation, Inc.,
Silver Lake, Minnesota
The Southwest National
Bank of Wichita,
Wichita, Kansas
The First National Bank
in Alamosa,
Alamosa, Colorado
Dover Bancshares, Inc.,
Russellville, Arkansas
The State National Bank
& Trust Company,
Wayne, Nebraska
Fannin Bancshares, Inc.,
Blue Ridge, Georgia
Village Corporation,
Denver, Colorado

Legal Developments

165

Section 3—Continued
Applicant(s)
Wabasso Bancshares, Inc.,
Wabasso, Minnesota
Whitaker Bank Corporation of
Kentucky,
Lexington, Kentucky

Bank(s)
Wabasso State Bank,
Wabasso, Minnesota
Whitaker Bancorp, Inc.,
Lexington, Kentucky
Whitaker Bancshares,
Inc.,
Lexington, Kentucky

Reserve
Bank

Effective
Date

Minneapolis

December 13, 1991

Cleveland

December 12, 1991

Section 4

Applicant(s)
The Chase Manhattan
Corporation,
New York, New York
Fifth Third Bancorp,
Cincinnati, Ohio
Firstar Corporation,
Milwaukee, Wisconsin

First Busey Corporation,
Urbana, Illinois

First Community Bancshares,
Inc.,
Fort Morgan, Colorado
Marine Corporation,
Springfield, Illinois

Norwest Corporation,
Minneapolis, Minnesota
Union Bancorporation,
Defiance, Iowa
Union Savings Bancshares, Inc.,
Sedalia, Missouri
Wes-Tenn Bancorp, Inc.,
Covington, Tennessee




Nonbanking
Activity/Company
Florida Federal Savings
Bank,
St. Petersburg, Florida
Pinnacle Bancorp,
Middletown, Ohio
Chancellor Mortgage
Corporation,
Brooklyn Center,
Minnesota
Busey Interim Federal
Savings and Loan
Association,
Urbana, Illinois
The First of Burlington
Agency, Inc.,
Burlington, Colorado
MT Interim Federal
Savings and Loan
Association,
Taylorville, Illinois
MIG Insurance Brokers,
Inc.,
Minneapolis, Minnesota
Defiance Insurance
Agency,
Defiance, Iowa
Sedalia Computer
Services, Inc.,
Sedalia, Missouri
Tri-County Federal
Savings Bank,
Covington, Tennessee

Reserve
Bank

Effective
Date

New York

November 27, 1991

Cleveland

November 26, 1991

Chicago

December 20, 1991

Chicago

December 17, 1991

Kansas City

November 27, 1991

Chicago

November 29, 1991

Minneapolis

November 27, 1991

Chicago

December 13, 1991

Kansas City

November 27, 1991

St. Louis

December 13, 1991

166

Federal Reserve Bulletin • February 1992

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.

1st United Bank,
Boca Raton, Florida
Chemical Bank Michigan,
Clare, Michigan
Citizens Fidelity Bank and Trust
Company,
Louisville, Kentucky
Commonwealth Bank,
Williamsport, Pennsylvania

Fifth Third Bank,
Cincinnati, Ohio
Lorain County Bank,
Elyria, Ohio
Old Kent Bank - Chicago,
Chicago, Illinois

PENDING CASES INVOLVING
GOVERNORS

Mizner Bank,
Boca Raton, Florida
Chemical Bank Gladwin
County,
Beaverton, Michigan
Citizens Fidelity Bank
and Trust Company
Lexington,
Lexington, Kentucky
County Bank,
Montrose, Pennsylvania
First Bank of Troy,
Troy, Pennsylvania
Liberty State Bank,
Mount Carmel,
Pennsylvania
First Bank of Greater
Pittston,
Pittston, Pennsylvania
Chase Bank of Ohio,
Columbus, Ohio
Society Bank and Trust
Company,
Toledo, Ohio
Old Kent Bank, N.A.,
Elmhurst, Illinois

THE BOARD OF

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.
Greenberg v. Board of Governors, No. 91-4200 (2d
Cir., filed November 22, 1991). Petition for review
of Board order prohibiting former national bank
officials from banking.
First Interstate BancSystem of Montana, Inc. v.
Board of Governors, No. 91-1525 (D.C. Cir., filed
November 1, 1991). Petition for review of Board's
order denying on Community Reinvestment Act
grounds the petitioner's application under section 3




Reserve
Bank

Bank(s)

Applicant(s)

Effective
Date

Atlanta

December 17, 1991

Chicago

December 9, 1991

St. Louis

Philadelphia

November 29, 1991

November 29, 1991

Cleveland

November 29, 1991

Cleveland

December 9, 1991

Chicago

December 24, 1991

of the Bank Holding Company Act to merge with
Commerce BancShares of Wyoming, Inc.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, the court issued a preliminary injunction restraining the transfer or disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991. Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, the
court issued an order temporarily restraining the
transfer or disposition of the individual's assets. In

Legal Developments

re Smouha, No. 91-B-13569 (Bkr. S.D. New York,
filed August 2, 1991). Ancillary proceeding under
the U.S. Bankruptcy Code brought by provisional
liquidators of BCCI Holdings (Luxembourg) S.A.
and affiliated companies. On August 15, 1991, the
bankruptcy court issued a temporary restraining
order staying certain judicial and administrative
actions, which has been continued by consent.
Hanson v. Greenspan, No. 91-1599 (D.D.C., filed
June 28, 1991). Suit for return of funds and financial
instruments allegedly owned by plaintiffs. On November 25, 1991, the court dismissed the complaint.
Fields v. Board of Governors, No. 3:91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act.
Citicorp v. Board of Governors, No. 90-4124 (2d
Circuit, filed October 4, 1990). Petition for review of
Board order requiring Citicorp to terminate certain
insurance activities conducted pursuant to Delaware
law by an indirect nonbank subsidiary. On June 10,
1991, the court of appeals granted the petition and
vacated the Board's order. The Independent Insurance Agents of America and others filed a petition
for certiorari on October 8, 1991; briefs opposing
certiorari were filed on December 7, 1991.
Consumers Union of U.S., Inc. v. Board of Governors, No. 90-5186 (D.C. Circuit, filed June 29,
1990). Appeal of District Court decision upholding
amendments to Regulation Z implementing the
Home Equity Loan Consumer Protection Act. On
July 12, 1991, the court of appeals affirmed the
majority of district court decision upholding the
Board's regulations, but remanded two issues to the
Board for further action.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Circuit, filed June 21, 1989). Petition
for review of Board order permitting relocation of a
bank holding company's national bank subsidiary
from Alabama to Georgia. On December 20, 1991,
the Court of Appeals vacated the Board's order,
ruling that the Board has no authority over interstate
relocations of national banks.
MCorp v. Board of Governors, No. 89-2816 (5th
Circuit, filed May 2, 1989). Appeal of preliminary
injunction against the Board enjoining pending and
future enforcement actions against a bank holding
company now in bankruptcy. On May 15, 1990, the




167

Fifth Circuit vacated the district court's order enjoining the Board from proceeding with enforcement
actions based on section 23A of the Federal Reserve
Act, but upheld the district court's order enjoining
such actions based on the Board's source-ofstrength doctrine. 900 F.2d 852 (5th Cir. 1990). On
cross-petitions for certiorari, Nos. 90-913, 90-914,
the Supreme Court, on December 3, 1991, reversed
that part of the Court of Appeals decision enjoining
the Board's enforcement action, on the ground that
the courts have no jurisdiction to affect such proceedings until final orders are issued by the Board.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Texas, filed October 10, 1988). Application
for injunction to set aside temporary cease and
desist orders. Stayed pending outcome of MCorp v.
Board of Governors, 900 F.2d 852 (5th Cir. 1990).

WRITTEN AGREEMENTS
RESERVE
BANKS

APPROVED

BY

FEDERAL

First New York Business Bank Corp.
New York, New York
The Federal Reserve Board announced on December 18, 1991, the execution of a Written Agreement
among the Federal Reserve Bank of New York and the
First New York Business Bank Corp., New York,
New York.

First Prairie Bankshares, Inc.
Georgetown, Illinois
The Federal Reserve Board announced on December 27, 1991, the execution of a Written Agreement
between the Federal Reserve Bank of Chicago and
First Prairie Bankshares, Inc., Georgetown, Illinois.

Presidential Holdings, Inc.
Bourbonnais, Illinois
The Federal Reserve Board announced on December 3, 1991, the execution of a Written Agreement
between the Federal Reserve Bank of Chicago and
Presidential Holdings, Inc., Bourbonnais, Illinois, Joseph A. Ferrante, James E. Malecha, and Anthony J.
Unruh.

A1

Financial and Business Statistics
WEEKLY REPORTING COMMERCIAL BANKS

CONTENTS

Domestic Financial

Statistics

Assets and liabilities
A20 All reporting banks
A22 Branches and agencies of foreign banks

MONEY STOCK AND BANK CREDIT

A4
A5
A6
A7

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

FINANCIAL MARKETS

A23 Commercial paper and bankers dollar
acceptances outstanding
A23 Prime rate charged by banks on short-term
business loans
A24 Interest rates—money and capital markets
A25 Stock market—Selected statistics
A26 Selected financial institutions—Selected assets
and liabilities

POLICY INSTRUMENTS

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

FEDERAL RESERVE BANKS

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

FEDERAL FINANCE

A26
All
A28
A28

Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A29 U.S. government securities
dealers—Transactions
A30 U.S. government securities dealers—Positions
and financing
A31 Federal and federally sponsored credit
agencies—Debt outstanding

MONETARY AND CREDIT AGGREGATES

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

COMMERCIAL BANKING INSTITUTIONS

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




SECURITIES MARKETS AND
CORPORATE FINANCE

A32 New security issues—State and local
governments and corporations
A33 Open-end investment companies—Net sales
and asset position
A33 Corporate profits and their distribution
A33 Total nonfarm business expenditures on new
plant and equipment
A34 Domestic finance companies—Assets and
liabilities and business credit

2

Federal Reserve Bulletin • February 1992

Domestic Financial

Statistics—Continued

A57 Selected U.S. liabilities to foreign official
institutions

REAL ESTATE

A35 Mortgage markets
A36 Mortgage debt outstanding

CONSUMER INSTALLMENT CREDIT

A37 Total outstanding and net change
A3 8 Terms

FLOW OF FUNDS

A39 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
A42 Summary of credit market debt outstanding
A43 Summary of credit market claims, by holder

Domestic Nonfinancial Statistics
SELECTED MEASURES

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

International Statistics

REPORTED BY BANKS
IN THE UNITED STATES

A57
A58
A60
A61

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

REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES

A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners

SECURITIES HOLDINGS AND TRANSACTIONS

A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions

INTEREST AND EXCHANGE RATES

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

A69 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables

SUMMARY STATISTICS
SPECIAL TABLES

A53
A54
A54
A54

U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data




A70 Assets and liabilities of commercial banks,
September 30, 1991
A76 Terms of lending at commmercial banks,
November 1991
A80 Assets and liabilities of U.S. branches and agencies
of foreign banks, September 30, 1991

A3

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

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

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

GNP
HUD
IMF
IO
IPCs
IRA
MMDA
n.a.
n.e.c.
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SMSA
VA

Gross national product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Not available
Not elsewhere classified
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard metropolitan statistical area
Veterans Administration

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




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

A4

DomesticNonfinancialStatistics • February 1992

1.10

R E S E R V E S , M O N E Y STOCK, L I Q U I D A S S E T S , A N D D E B T M E A S U R E S
Percent annual rate of change, seasonally adjusted1
1990

1991

1991

Monetary and credit aggregate
Q4
institutions2

1
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base3

5
6
7
8
9

Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt

Nontransaction
10 In M2 y
11 In M3 only 6

Q2

Q1

Q3r

Julyr

Aug.r

Sept.r

Oct/

Nov.

3.9
1.7
7.8
9.9

9. l r
4.5r
8.9*
14.4r

3.0r
i.9
3.4r
3.8r

7.4
7.9
4.3
5.8

1.6
4.1
-4.8
5.5

11.3
7.1
7.7
9.1

6.2
10.1
9.1
6.4

15.7
12.3
25.0
9.9

20.3
25.3
24.0
6.5

3.4
2.0
.9
1.8
5.6r

5.9
3.4
4.0
3.3
4.8r

7.3
4.7r
1.8
-2.4
3.9r

6.8
-.5
-2.5
.3
5.2

1.5
-4.0
-5.1
1.0
4.7

9.2
-.1
-.8
-2.0
5.8

5.4
.0
-1.9
-2.4
6.0

12.4
2.4
1.2
1.9
6.0

15.4
4.6
2.9
n.a.
n.a.

1.5
-3.6

2.6
6.4

3.9
-10.5

-3.0
-11.1

-5.9
-9.7

-3.2
-4.1

-1.9
-10.3

-1.1
-4.2

.8
-4.3

4.1
11.5
-8.5

7.5
8.8
12.0

16.6
-1.7
.2

12.9
.8
-8.5

11.8
-1.4
-13.3

10.4
8.0
-7.9

9.1
-.8
-14.7

14.7
-7.5
-19.0

14.5
-14.0
-13.6

-7.3
-8.6
-26.3

-.7
-9.9 r
-31.9

18.4
—14.7r
-35.1

9.7
-24.5
-40.9

10.0
-24.2
-38.1

2.6
-29.6
-46.7

5.6
-18.9
-42.2

8.8
-22.4
-46.4

13.6
-17.8
-35.8

9.8
30.4

18.5r
49.9

s.o 1
23.0

-10.9
.7

-16.1
-12.6

-21.3
25.4

-11.5
37.3

-4.4
49.0

-5.1
43.2

11.6
3.7r

12.0
2.6r

5.6r
3.4r

13.6
2.4

12.0
2.2

15.8
2.5

13.8
3.4

14.3
3.2

n.a.
n.a.

components

Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time 8,9
Thrift institutions
15
Savings, including MMDAs
16
Small time 7
17
Large time •
12
13
14

Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
4

Debt components
20
21 Nonfederal

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




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

Money Stock and Bank Credit
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT

A5

1

Millions of dollars
Monthly averages of
daily figures

Weekly averages of daily figures for week ending

1991

1991

Factor

Sept.

Oct.

Nov.

Oct. 16

Oct. 23

Oct. 30

Nov. 6

Nov. 13

Nov. 20

Nov. 27

1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright-system account
3
Held under repurchase agreements . . .
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements . . .
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10
Float
11 Other Federal Reserve assets

297,531

295,971

300,929

295,899

295,313

296,258

300,400

302,351

299,754

300,893

260,562
2,720

262,465
0

262,310
1,350

12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding

SUPPLYING RESERVE FUNDS

256,689
2,099

256,524
401

261,764
1,004

256,366
531

256,345
0

256,431
0

260,168
1,245

6,155
203
0

6,148
23
0

6,130
15
0

6,150
99
0

6,146
0
0

6,140
0
0

6,140
3
0

6,140
44
0

6,140
0
0

6,118
21
0

57
285
309
523
31,212

38
210
9
691
31,926

18
86
1
635
31,276

100
213
8
573
31,857

24
207
15
467
32,108

16
175
12
1,292
32,192

18
104
0
774
31,948

10
92
3
490
32,290

14
91
1
620
30,423

21
77
2
633
30,362

11,062
10,018
20,866

11,061
10,018
20,914

11,059
10,018
20,965

11,062
10,018
20,917

11,061
10,018
20,931

11,060
10,018
20,945

11,059
10,018
20,940

11,059
10,018
20,954

11,059
10,018
20,968

11,059
10,018
20,982

294,675
607

295,745
617

299,098
633

296,584
610

296,354
624

295,474
626

296,909
631

299,032
632

299,288
633

299,681
637

7,855
254

5,907
222

5,731
209

4,486
214

6,493
196

5,130
231

7,908
215

5,832
178

5,596
189

5,281
205

3,328
245

3,456
267

3,456
220

3,338
261

3,467
273

3,606
278

3,4%
226

3,762
208

3,760
228

3,665
219

ABSORBING RESERVE FUNDS

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

8,656

8,692

8,580

8,514

8,362

8,522

8,344

8,433

8,432

8,635

23,855

23,058

24,785

23,889

21,555

24,414

24,688

26,304

23,671

24,630

Nov. 27

End-of-month figures

Wednesday figures

1991

1991

Sept.

Oct.

Nov.

Oct. 16

Oct. 23

Oct. 30

Nov. 6

Nov. 13

Nov. 20

296,876

306,804

304,408

301,227

295,308

296,078

300,621

313,077

298,415

301,410

256,689
0

258,961
8,714

265,212
0

256,894
3,718

256,129
0

257,042
0

262,231
0

263,015
9,100

261,324
0

262,928
1,627

6,154
0
0

6,140
19
0

6,090
0
0

6,150
695
0

6,140
0
0

6,140
0
0

6,140
0
0

6,140
108
0

6,140
0
0

6,090
5
0

38
276
0
232
31,621

30
123
0
604
32,212

59
45
1
660
32,341

216
214
9
1,496
31,834

20
197
18
654
32,151

16
156
1
583
32,140

2
90
0
188
31,970

24
97
0
1,721
32,872

13
83
1
659
30,195

25
64
2
453
30,217

11,062
20,889

11,059
10,018
20,940

11,058
10,018
20,996

11,061
10,018
20,917

11,061
10,018
20,931

11,060
10,018
20,945

11,059
10,018
20,940

11,059
10,018
20,954

11,058
10,018
20,968

11,058
10,018
20,982

293,512
607

296,522
631

301,830
636

297,019
623

296,013
626

295,899
630

297,914
632

299,628
633

299,303
637

301,424
636

7,928
385

18,111
223

6,317
346

5,356
220

6,269
209

4,566
339

6,168
205

4,278
191

5,377
185

5,104
301

3,380
283

3,504
213

4,033
221

3,338
258

3,467
282

3,606
220

3,496
215

3,762
213

3,760
242

3,665
208

SUPPLYING RESERVE FUNDS

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

10,018

ABSORBING RESERVE FUNDS

15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18
Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks3

9,522

8,354

10,156

8,211

8,181

8,337

8,211

8,439

8,237

8,519

23,229

21,264

22,942

28,199

22,271

24,504

25,798

37,964

22,748

23,613

1. For amounts of cash held as reserves, see table 1.12. Components may not
sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and




scheduled to be bought back under matched sale-purchase transactions.
3. Excludes required clearing balances and adjustments to compensate for
float,

A6

DomesticNonfinancialStatistics • February 1992

1.12 RESERVES AND BORROWINGS

Depository Institutions 1

Millions of dollars
Prorated monthly averages of biweekly averages

1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks2
Total vault cash'
Applied vault cash ,
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks . . .
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9

1988

1989

1990

Dec.

Reserve classification

1991

Dec.

Dec.

May

June

July

Aug.

Sept.

Oct.

Nov

37,837
28,204
25,909
2,295
63,746
62,699
1,047
1,716
130
1,244

35,436
29,822
27,374
2,448
62,810
61,887
923
265
84
20

30,237
31,777
28,884
2,893
59,120
57,456
1,664
326
76
23

22,287
30,720
26,776
3,944
49,063
48,033
1,030
303
151
88

23,685
30,524
26,722
3,801
50,407
49,399
1,008
340
222
8

23,271
31,322
27,389
3,933
50,660
49,754
906
607
317
46

22,810
31,779
27,798
3,981
50,607
49,521
1,086
764
331
300

23,447
31,549
27,680
3,869
51,127
50,198
929
645
287
302

23,197r
32,305
28,386
3,919
51,584r
50,501r
l,083 r
261
211
12

25,004
31,717
28,053
3,663
53,058
52,164
893
108
86
1

Biweekly averages of daily figures for weeks ending
1991
Aug. 7
1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks2
Total vault cash 1
Applied vault cash ^
Surplus vault cash5
Total reserves
Required reserves
Excess reserve balances at Reserve Banks . . .
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9

Aug. 21

Sept. 4

Sept. 18

Oct. 2

Oct. 16

Oct. 30

Nov. 13r

Nov. 27

Dec. 11

23,029
31,257
27,234
4,023
50,262
49,393
870
892
351
188

22,508
32,499
28,469
4,030
50,977
49,917
1,061
679
330
281

23,077
31,137
27,254
3,883
50,331
49,058
1,273
795
320
406

24,771
31,015
27,408
3,608
52,179
51,447
732
828
269
4%

22,024
32,310
28,141
4,169
50,165
49,122
1,044
383
296
41

23,418
32,333
28,506
3,827
51,924
50,908
1,016
290
228
7

22,980""
32,381
28,377
4,004
51,357r
50,191r
l,167 r
225
191
14

25,494
30,841
27,326
3,515
52,820
51,907
913
114
98
2

24,155
32,664
28,825
3,840
52,979
52,045
934
103
84
2

26,847
31,092
27,604
3,488
54,451
53,840
611
110
45
1

1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover. Components may not sum to
totals because of rounding.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet "as-of' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. Under contemporaneous reserve
requirements, maintenance periods end thirty days after the lagged computation
periods during which the balances are held.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"




institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.

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

A7

Large Banks 1

Millions of dollars, averages of daily figures
1991, week ending Monday
Source and maturity
June 3

1
2
3
4

Federal funds purchased, repurchase agreements, and
other selected borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities

June 10

June 17

June 24

July 1

July 8

July 15

July 22

July 29

77,969
16,406

79,824
16,378

75,265
15,697

71,226
15,771

74,884
15,712

80,113
16,449

76,311
15,355

70,188
15,105

68,116
15,045

32,237
21,602

29,605
22,362

25,318
22,743

25,374
21,089

26,764
21,745

24,123
22,351

25,018
22,469

23,858
22,401

22,168
22,225

Repurchase agreements on U.S. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities

11,754
16,935

11,261
17,975

11,382
18,586

10,644
18,013

9,440
17,312

8,766
17,381

9,186
18,381

8,431
17,923

8,282
17,926

23,764
11,081

22,568
11,068

23,721
11,095

23,853
11,362

24,686
10,878

23,768
12,638

25,600
11,935

24,260
12,293

24,984
12,149

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

49,608
17,298

45,070
17,507

43,044
18,887

41,625
18,498

49,315
18,542

47,321
18,789

41,751
19,972

38,866
18,810

38,099
17,011

5
6
7
8

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




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

A8

DomesticNonfinancialStatistics • February 1992

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit2

Adjustment credit
and
seasonal credit1

Federal Reserve
Bank

After 30 days of borrowing3

First 30 days of borrowing

On
12/31/91

Effective
date

Previous
rate

On
12/31/91

Effective
date

Previous
rate

On
12/31/91

Effective
date

Previous
rate

3.5

12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91

4.5

3.5

12/20/91
12/20/91
12/20/91
12/20/91
12/20/91
12/20/91

4.5

4.85

12/26/91
12/26/91
12/26/91
12/26/91
12/26/91
12/26/91

5.20

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

3.5

12/20/91
12/24/91
12/23/91
12/20/91
12/20/91
12/20/91

4.5

12/20/91
12/24/91
12/23/91
12/20/91
12/20/91
12/20/91

3.5

4.5

4.85

Range of rates for adjustment credit in recent years

Effective date

In effect Dec. 31, 1977
1978—Jan.

9
20
May 11
12

July
Aug.
Sept.
Oct.
Nov.

3
10
21
22
16
20
1
3

1979—July 20
Aug. 17
20
Sept. 19
21

Oct.

8
10

1980—Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5

Range(or
level)—
All F.R.
Banks
6

F.R.
Bank
of
N.Y.
6

6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5

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

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

10
10.5
10.5
11
11
12
12

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

13
13
13
12
11
11
10
10
11
12
13

Effective

1981-—May

5

Nov.

7
6
4

Dec.

?0
73
7
3
16
77
30
Oct. 17
13
Nov. 77
7ft
Dec. 14
15
17

13-14
14
13-14
13
12

-July
1982--July

F.R.
Bank
of
N.Y.
14
14
13
13
12
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5

1984-—Apr.
—Apr.

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985-—May 70 ..
—May
74

7.5-8
7.5

7.5
7.5

. .
.

. .
. .
..

. .

9 .
13 . .
Nov. 71
76
Dec. 74

12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91
12/12/91

5.20

4

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

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

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

7
7
6.5
6
5.5
5.5

1987—Sept. 4
11

5.5-6
6

6
6

1988—Aug.

9
11

6-6.5
6.5

6.5
6.5

1989—Feb. 24
27

6.5-7
7

7
7

1990—Dec. 19

6.5

6.5

1
4
Apr. 30
May 2
Sept. 13
Sept. 17
Nov. 6
7
Dec. 20
24

6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

In effect Dec. 31, 1991

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

Aug.

1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. The highest rate established for loans to depository
institutions may be charged on adjustment-credit loans of unusual size that result
from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans.
2. Extended credit is available to depository institutions when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution, or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than thirty days, a flexible rate
somewhat above rates on market sources of funds ordinarily is chained, but in no
case is the rate charged less than the basic discount rate plus 50 basis points. The




Range (or
level)—
All F.R.
Banks

12/26/91
12/26/91
12/26/91
12/26/91
12/26/91
12/26/91

Effective date

3.5

3.5

1991—Feb.

flexible rate is reestablished on the first business day of each two-week reserve
maintenance period. At the discretion of the Federal Reserve Bank, the time
period for which the basic discount rate is applied may be shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the
formula for applying the surcharge was changed from a calendar quarter to a
moving thirteen week period. The surcharge was eliminated on Nov. 17, 1981.

Policy Instruments

A9

1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1

Type of deposit2

Net transaction accounts3
1 $0 million-$42.2 million
2 More than $42.2 million . . .

12/17/91
12/17/91

3

Nonpersonal time deposits 4

12/27/90

4

Eurocurrency liabilities5 . . .

12/27/90

1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garrv-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4
million to $3.6 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Transaction accounts include all deposits against which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
three per month for the purpose of making payments to third persons or others.




However, money market deposit accounts (MMDAs) and similar accounts subject
to the rules that permit no more than six preauthorized, automatic, or other
transfers per month, of which no more than three may be checks, are not
transaction accounts (such accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 17,
1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions
reporting weekly, the amount was increased from $41.1 million to $42.2 million.
4. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to IVi percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of 1 Vi years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
5. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as were the reserve
requirement on nonpersonal time deposits with an original maturity of less than
IV2 years (see note 4).

A10

Domestic Financial Statistics • February 1992

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1991
Type of transaction

1988

1989

1990
Apr.

May

June

July

Aug.

Sept.

Oct.

U . S . TREASURY SECURITIES

Outright transactions (excluding matched
transactions)
1
2
3
4

Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions

8,223
587
241,876
2,200

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

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

908
0
21,981
0

3,411
0
27,548
0

37
0
19,680
0

1,359
0
22,280
0

5,776
0
28,009
0

529
0
19,508
0

2,198
0
25,409
0

5
6
7
8
9

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

2,176
0
23,854
-24,588
0

327
0
28,848
-25,783
500

425
0
25,638
-27,424
0

700
0
4,324
-993
0

200
0
5,175
-4,887
0

0
0
0
0
0

625
0
1,478
-3,136
0

340
0
3,425
-2,443
0

200
0
1,131
-2,202
0

0
0
2,002
-2,034
0

10
11
12
13

One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges

5,485
800
-17,720
22,515

1,436
490
-25,534
23,250

250
200
-21,770
25,410

550
0
-4,214
777

0
0
-3,410
4,287

0
0
0
0

0
0
-1,192
2,601

0
0
-3,425
1,993

650
0
-1,131
2,202

0
0
-1,877
1,686

14
15
16
17

Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

1,579
175
-5,946
1,797

287
29
-2,231
1,934

0
100
-2,186
789

0
0
-110
216

0
0
-1,605
400

0
0
0
0

0
0
-286
534

0
0
688
300

0
0
0
0

0
0
-126
347

18
19
20
21

More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

1,398
0
-188
275

284
0
-1,086
600

0
0
-1,681
1,226

0
0
0
0

0
0
-160
200

0
0
0
0

0
0
0
0

0
0
-688
150

0
0
0
0

0
0
0
0

22
23
24

All maturities
Gross purchases
Gross sales
Redemptions

18,863
1,562
2,200

16,617
13,337
13,230

25,414
7,591
4,400

2,158
0
0

3,611
0
0

37
0
0

1,984
0
0

6,116
0
0

1,379
0
0

2,198
0
0

1,168,484
1,168,142

1,323,480
1,326,542

1,369,052
1,363,434

185,662
187,032

147,7%
147,803

118,903
118,239

120,292
121,803

112,414
110,280

116,266
118,481

137,073
135,281

152,613
151,497

129,518
132,688

219,632
202,551

16,173
16,173

9,241
9,241

9,440
8,478

35,149
36,111

16,847
16,847

40,447
40,447

12,432
3,718

15,872

-10,055

24,886

3,528

3,618

335

2,532

3,981

3,595

9,121

0
0
587

0
0
442

0
0
183

0
0
91

0
0
0

0
0
0

0
0
55

0
0
0

0
5
0

0
0
14

57,259
56,471

38,835
40,411

41,836
40,461

640
640

885
885

1,225
748

3,245
3,722

537
537

3,061
3,061

714
695

35 Net change in federal agency obligations

198

-2,018

1,192

-91

0

477

-532

0

-5

5

36 Total net change in System Open Market
Account

16,070

-12,073

26,078

3,437

3,618

812

2,000

3,981

3,590

9,126

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

Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements2
33 Gross purchases
34 Gross sales

1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not sum to
totals because of rounding.




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

Federal Reserve Banks
1.18 FEDERAL RESERVE BANKS

A11

Condition and Federal Reserve Note Statements 1

Millions of dollars
Wednesday
1991

Account
Oct. 30

Nov. 6

End of month
1991

Nov. 13

Nov. 20

Nov. 27

Sept. 30

Oct. 31

Nov. 29

Consolidated condition statement

1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements ,
Federal agency obligations
1 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities.
2

11,060
10,018
585

11,059
10,018
578

11,059
10,018
569

11,058
10,018
567

11,058
10,018
560

11,062
10,018
579

11,059
10,018
579

11,058
10,018
557

172
0
0

93
0
0

121
0
0

97
0
0

91
0
0

315
0
0

153
0
0

106
0
0

6,140
0

6,140
0

6,140
108

6,140
0

6,090
5

6,154
0

6,140
19

6,090
0

257,042

262,231

272,115

261,324

264,555

258,554

267,675

265,213

261,324
130,489
99,072
31,763
0

262,928
131,693
99,472
31,763
1,627

258,554
128,569
98,372
31,613
0

258,961
128,976
98,372
31,613
8,714

265,213
131,661
101,220
32,332
0

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

257,042
127,058
98,372
31,613
0

262,231
132,146
98,472
31,613
0

263,015
132,580
98,822
31,613
9,100

15 Total loans and securities

263,355

268,463

278,483

267,561

270,740

265,022

273,987

271,407

5,256
965

6,084
965

9,772
970

6,048
970

5,798
973

2,591
953

4,949
%5

4,059
976

25,758
5,894

25,557
6,001

25,580
6,946

25,660
4,138

25,244
4,474

25,939
5,473

25,557
6,243

26,739
4,705

322,891

328,725

343,396

326,021

328,865

321,636

333,357

329,519

282,027

16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other4
20 Total assets
LIABILITIES

276,170

278,183

279,875

279,539

281,638

273,809

276,792

22 Total deposits

33,903

37,056

47,243

33,199

33,621

36,000

44,061

34,129

23
24
25
26

28,778
4,566
339
220

30,468
6,168
205
215

42,561
4,278
191
213

27,426
5,377
185
211

28,008
5,104
301
208

27,404
7,928
385
283

25,513
18,111
223
213

27,246
6,317
346
221

4,481
2,774

5,274
2,760

7,838
2,789

5,045
2,584

5,088
2,857

2,306
2,902

4,151
2,912

3,207
2,947

317,327

323,274

337,746

320,367

323,204

315,016

327,915

322,310

2,606
2,423
535

2,625
2,423
403

2,632
2,423
595

2,633
2,423
598

2,645
2,423
594

2,565
2,423
1,632

2,606
2,413
423

2,642
2,423
2,144

33 Total liabilities and capital accounts

322,891

328,725

343,3%

326,021

328,865

321,636

333,357

329,519

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

245,777

247,259

247,748

251,761

253,026

250,232

252,020

254,484

21 Federal Reserve notes

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

27 Deferred credit items
28 Other liabilities and accrued dividends5.
29 Total liabilities.
CAPITAL ACCOUNTS

30 Capital paid in
31 Surplus
32 Other capital accounts.

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

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

42 Total collateral.

368,290
92,120
276,170

376,719
89,536
278,183

369,759
89,884
279,875

370,822
91,283
279,539

371,379
89,742
281,638

366,144
92,335
273,809

368,108
91,316
276,792

371,067
89,040
282,027

11,060
10,018
0
255,092

11,059
10,018
0
257,106

11,059
10,018
0
258,799

11,058
10,018
0
258,463

11,058
10,018
0
260,562

11,062
10,018
0
252,729

11,059
10,018
0
255,715

11,058
10,018
0
260,951

276,170

278,183

279,875

279,539

281,638

273,809

276,792

282,027

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. Components may
not sum to totals because of rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.




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

A12

DomesticNonfinancialStatistics • February 1992

1.19 FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holding 1

Millions of dollars
Wednesday
1991

Type and maturity grouping

End of month
1991

Oct. 30

Nov. 6

Nov. 13

Nov. 20

Nov. 27

Sept. 30

Oct. 31

Nov. 29

1 Total loans

172

93

121

97

91

315

153

106

2
3
4

143
29
0

23
70
0

48
73
0

86
12
0

84
7
0

163
152
0

72
82
0

84
22
0

5 Total acceptances

0

0

0

0

0

0

0

0

6
7
8

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

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

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

257,042

262,231

263,024

261,324

264,555

258,554

258,961

265,212

Within fifteen days2
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years

10,669
62,862
84,600
60,692
14,042
24,178

18,052
58,427
85,894
61,539
14,142
24,178

12,731
64,259
85,975
61,739
14,142
24,178

14,226
62,996
85,104
60,744
14,089
24,165

12,200
64,151
88,806
61,144
14,089
24,165

5,257
65,857
88,778
60,664
13,820
24,178

6,709
61,051
91,443
61,539
14,042
24,178

5,174
69,572
88,931
62,527
14,469
24,540

16 Total Federal agency obligations

6,140

6,140

6,140

6,140

6,095

6,154

6,140

6,090

158
759
1,431
2,605
1,000
188

59
867
1,422
2,605
1,000
189

105
762
1,422
2,663
1,000
188

383
484
1,422
2,663
1,000
188

313
565
1,430
2,608
990
188

283
669
1,479
2,485
1,050
188

158
759
1,431
2,605
1,000
188

308
565
1,430
2,608
990
188

9 Total U.S. Treasury securities
10
11
12
13
14
15

17
18
19
20
21
22

2

Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years

1. Components may not sum to totals because of rounding.
fifteen
2. Holdings under repurchase agreements are classified as maturing within




days in accordance with the maximum possible maturity of the agreements.

Monetary and Credit Aggregates

A13

1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1991r
Item

1987
Dec.

1988
Dec.

1989
Dec.

1990
Dec.
Apr.

Total reserves3
Nonborrowed reserves 4
^
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base 6

June

July

Aug.

Sept.

Oct.

Nov.

50.41
49.80
49.85
49.50
313.84

50.89
50.12
50.42
49.80
316.23

51.15
50.50
50.80
50.22
317.93

51.82
51.56
51.57
50.73
320.55

52.70
52.59
52.59
51.80
322.29

Seasonally adjusted

ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1

1
2
3
4
5

May

45.81
45.03
45.52
44.77
246.28

47.60
45.88
47.12
46.55
263.46

47.73
47.46
47.48
46.81
274.17

49.10
48.78
48.80
47.44
299.78

49.34
49.11
49.20
48.31
310.57

50.00
49.70
49.79
48.97
311.43

50.35
50.01
50.01
49.34
312.41

Not seasonally adjusted
6
7
8
9
10

Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit .
Required reserves
Monetary base 9

47.04
46.26
46.75
46.00
249.93

49.00
47.29
48.53
47.%
267.46

49.18
48.91
48.93
48.26
278.30

50.58
50.25
50.28
48.91
304.04

50.25
50.02
50.10
49.22
310.82

49.00
48.69
48.78
47.97
310.97

50.32
49.98
49.99
49.31
314.00

50.56
49.95
50.00
49.65
316.14

50.49
49.73
50.03
49.41
316.68

50.99
50.35
50.65
50.07
317.28

51.43
51.17
51.18
50.35
319.14

52.89
52.78
52.78
51.99
323.06

62.14
61.36
61.85
61.09
266.06
1.05
.78

63.75
62.03
63.27
62.70
283.00
1.05
1.72

62.81

62.54
62.56
61.89
292.55
.92
.27

59.12
58.79
58.82
57.46
313.70
1.66
.33

50.30
50.07
50.16
49.27
313.95
1.03
.23

49.06
48.76
48.85
48.03
314.25
1.03
.30

50.41
50.07
50.08
49.40
317.25
.34

.61

50.61
49.84
50.14
49.52
320.07
1.09
.76

51.13
50.48
50.78
50.20
320.70
.93
.65

51.58
51.32
51.33
50.50
322.71

1.01

50.66
50.05
50.10
49.75
319.46
.91

53.06
52.95
52.95
52.16
326.89
.89
.11

N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS

11
12
13
14
15
16
17

Total reserves11
Nonborrowed reserves
Nonborrowed reserves plus extended credit5.
Required reserves
Monetary base 12
Excess reserves
Borrowings from the Federal Reserve

1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break-adjusted total reserves equal seasonally
adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory




1.08

.26

changes in reserve requirements, a multiplicative procedure is used to estimate
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all weekly reporters whose vault cash exceeds
their required reserves) the break-adjusted difference between current vault cash
and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

A14

DomesticNonfinancialStatistics • February 1992

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1991r
1987
Dec.

1988
Dec.

1989
Dec.

1990
Dec.
Sept.

Oct.

Nov.

866.1
3,389.0
4,144.7
4,975.0
10,755.8

870.0
3,389.0
4,138.1
4,965.1
10,809.6

879.0
3,395.7
4,142.2
4,972.9
10,863.6

890.3
3,408.6
4,152.3
n.a.
n.a.

Aug.
Seasonally adjusted

1
2
3
4
5

Measures2
Ml
M2
M3
L
Debt

6
7
8
9

Ml components
Currency
Travelers checks
Demand deposits
Other checkable deposits

749.7
2,910.1
3,677.4
4,337.0
8,345.1

786.4
3,069.9
3,919.1 r
4,675.9
9,107.6

793.6
3,223.1
4,055.2
4,889.9
9,790.4

196.8
7.0
286.5
259.3

212.0
7.5
286.3
280.7

222.2
7.4
278.7
285.2

246.4
8.4
276.9
293.8

260.8
7.7
279.8
317.8

262.4
7.8
279.3
320.5

264.4
7.9
282.6
324.1

265.3
8.1
287.4
329.5

2,160.4
767.3

2,283.5
849.3

2,429.5
832.1

2,502.4
783.4

2,522.9
755.6

2,518.9
749.1

2,516.6
746.5

2,518.3
743.8

Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits •

534.8
388.0
326.6

542.2
447.5
368.0

540.7
531.4
401.9

577.7
598.1
386.1

631.0
605.0
390.8

635.8
604.6
386.0

643.6
600.8
379.9

651.4
593.8
375.6

Thrift institutions
15 Savings deposits, iiicluding MMDAs
16 Small time deposits
17 Large time deposits 10

402.3
529.7
162.6

383.5
584.3
174.3

349.5
614.5
161.6

339.0
566.1
121.0

365.2
501.6
93.9

366.9
493.7
90.6

369.6
484.5
87.1

373.8
477.3
84.5

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

221.7
88.9

241.1
86.9

313.6
101.9

345.4
125.7

355.0
144.8

351.6
149.3

350.3
155.4

348.8
161.0

1,957.9
6,387.2

2,114.2
6,993.4

2,268.1
7,522.3

2,534.3
7,897.8r

2,707.0
8,048.8

2,738.1
8,071.5

2,770.8
8,092.8

Nontrgnsaction
10 In M2
11 In M38

825.4
3,327.8
4,111.2
4,966.6
10,432. l r

components

Debt components
20 Federal debt
21 Nonfederal debt

n.a.
n.a.

Not seasonally adjusted
2

22
23
24
25
26

Measures
Ml
M2
M3
L
Debt

27
28
29
30

Ml components
Currency3
Travelers checks
Demand deposits5
Other checkable deposits

766.2
2,923.0
3,690.3
4,352.8
8,329.1

804.2
3,083.3
3,931.5
4,691.8
9,093.2

811.9
3,236.6
4,067.0
4,907.4
9,775.9

199.3
6.5
298.6
261.8

214.8
6.9
298.9
283.5

225.3
6.9
291.5
288.2

864.0
3,389.8
4,149.8
4,973.5
10,708.5

867.0
3,383.9
4,135.7
4,963.2
10,761.4

875.0
3,392.6
4,138.8
4,968.2
10,824.9

893.5
3,412.5
4,159.2
n.a.
n.a.

249.6
7.8
289.9
297.0

262.0
8.6
278.6
314.8

261.8
8.3
278.5
318.4

263.2
8.0
283.6
320.3

266.3
7.7
290.9
328.5

2,156.8
767.3

2,279.1
848.2

2,424.7
830.4

2,497.6
781.4

2,525.8
760.0

2,517.0
751.8

2,517.6
746.2

2,519.1
746.7

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

535.8
387.2
325.8

543.8
446.0
366.8

542.9
529.2
400.4

579.3
596.1
386.1

630.1
606.1
391.8

634.2
604.4
387.8

643.2
600.7
382.3

653.8
592.5
378.1

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

399.9
529.5
163.3

381.5
583.8
175.2

347.9
613.8
162.6

338.3
564.1
121.1

365.4
502.5
94.1

366.1
493.6
91.1

369.8
484.4
87.6

374.4
476.3
85.0

Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only

221.1
89.6

240.7
87.6

313.5
102.8

345.5
127.0

353.7
143.9

351.6
145.9

350.1
152.4

350.6
161.6

Repurchase agreements and eurodollars
41 Overnight
42 Term

83.2
197.1

83.4
227.7

77.3
179.8

74.3
160.8

67.9
145.2

67.1
141.9

69.4
139.9

71.5
138.3

1,955.6
6,373.5

2,111.8
6,981.4

2,265.9
7,509.9

2,532.1
7,887.2r

2,691.4
8,017.1

2,722.0
8,039.4

2,756.7
8,068.2

Nontrgnsaction
31 In M2
32 In M38

844.3
3,341.9
4,123.3
4,985.2
10,419.3r

components

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




n.a.
n.a.

Monetary and Credit Aggregates

A15

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




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

A16
1.22

DomesticNonfinancialStatistics • February 1992
BANK DEBITS AND DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1991

Bank group, or type of customer
Apr.

Demand deposits3
All insured banks
Major New York City banks
Other banks

4
5

ATS-NOW accounts4
Savings deposits

6
7
8

Demand deposits3
All insured banks
Major New York City banks
Other banks

July

Aug.

Sept.

Seasonally adjusted

DEBITS TO

1
2
3

June

May

219,795.7
115,475.6
104,320.2

256,150.4
129,319.9
126,830.5

277,916.3
131,784.0
146,132.3

294,433.5
146,499.3
147,934.2

295,559.0
148,074.9
147,484.1

266,704.2
133,761.4
132,942.8

284,872.2
139,089.0
145,783.2

275,915.9
136,906.9
139,009.0

283,671.3
142,138.2
141,533.1

2,478.1
537.0

2,910.5
547.5

3,349.6
558.8

3,820.3
577.1

3,620.2
548.6

3,460.1
519.9

3,822.8
552.6

3,659.4
516.7

3,687.9
2,970.9

622.9
2,897.2
333.3

735.1
3,421.5
408.3

800.6
3,804.1
467.7

870.3
4,533.4
483.4

867.0
4,702.8
476.6

768.4
4,141.9
422.3

833.4
4,413.3
469.8

798.0
4,448.0
441.4

823.1
4,490.8
452.2

13.2
2.9

15.2
3.0

16.5
2.9

17.8
2.8

16.4
2.6

15.5
2.4

16.9
2.5

15.9
2.3

15.7
4.8

DEPOSIT TURNOVER

9
10

ATS-NOW accounts4
Savings deposits

Not seasonally adjusted

DEBITS TO

11
12
13

Demand deposits3
All insured banks
Major New York City banks
Other banks

14
15
16

ATS-NOW accounts4
MMDAs
Savings deposits

17
18
19

Demand deposits3
All insured banks
Major New York City banks
Other banks

20
21
22

ATS-NOW accounts4
MMDAs 6
Savings deposits5

219,790.4
115,460.7
104,329.7

256,133.2
129,400.1
126,733.0

277,400.0
131,784.7
145,615.3

294,492.4
145,700.2
148,792.2

292,012.3
145,073.9
146,938.4

270,144.7
133,851.7
136,293.0

286,068.7
139,527.4
146,541.3

289,049.5
146,342.8
142,706.6

274,111.5
137,659.5
136,452.1

2,477.3
2,342.7
536.3

2,910.7
2,677.1
546.9

3,342.2
2,923.8
557.9

3,967.1
2,994.5
623.9

3,549.9
2,978.6
545.5

3,446.1
2,714.5
516.4

3,729.0
2,868.0
558.2

3,693.2
2,751.7
537.0

3,183.9

622.8
2,896.7
333.2

735.4
3,426.2
408.0

799.6
3,810.0
466.3

864.8
4,565.4
482.1

875.5
4,742.5
485.0

781.7
4,154.4
434.9

831.4
4,334.6
469.8

849.5
4,771.4
460.9

795.2
4,305.8
436.3

13.2
6.6
2.9

15.2
7.9
2.9

16.4
8.0
2.9

17.8
7.7
3.0

16.3
7.6
2.6

15.5
6.8
2.4

16.7
7.2
2.5

16.3
6.8
2.4

15.9

3,688.2

n.a

DEPOSIT TURNOVER

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




n.a
5.1

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

Commercial Banking Institutions
1.23 LOANS AND SECURITIES

All

All Commercial Banks 1

Billions of dollars, averages of Wednesday figures
1991

1990
Item
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Seasonally adjusted
1 Total loans and securities2
2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5 Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4
.
9
Non-U.S. addressees
10 Real estate
11
Individual
12 Security
n
Nonbank financial
institutions
14 Agricultural
15
State and political
subdivisions
16
Foreign banks
17
Foreign official institutions
18
Lease-financing receivables
19 All other loans

2,723.6

2,721.2

2,735.1

2,751.0

2,751.8

2,750.5

2,763.2

2,763.3

2,761.6

2,768.9

2,784.5

2,799.3

454.2
175.6
2,093.8
648.1
7.5

454.1
177.7
2,089.4
644.3
7.7

458.0
177.6
2,099.5
643.9
6.9

471.4
177.6
2,102.0
646.0
6.7

479.2
175.7
2,096.9
640.0
6.8

485.1
173.9
2,091.5
633.2
6.9

495.2
173.1
2,094.8
630.4
6.6

505.3
172.0
2,086.0
626.7
6.6

512.6
169.9
2,079.1
620.5
7.1

522.1
170.8
2,076.0
623.8
6.9

538.2
172.2
2,074.1
623.8
6.5

549.3
172.3
2,077.6
620.2
7.0

640.5
635.3
5.3
836.5
378.9
40.6

636.6
631.1
5.5
837.3
375.9
43.1

637.0
631.5
5.5
842.6
377.7
43.2

639.3
633.6
5.7
846.3
375.5
38.9

633.2
627.7
5.5
850.9
374.1
39.8

626.4
620.6
5.8
855.1
373.5
39.8

623.8
617.9
5.9
859.5
372.0
38.3

620.0
614.3
5.7
857.0
369.6
41.6

613.4
607.7
5.7
853.9
368.9
42.6

616.8
611.0
5.9
853.4
365.3
43.9

617.3
611.2
6.2
854.2
362.7
43.8

613.2
607.0
6.2
856.3
361.7
46.4

34.8
33.0

34.8
33.5

35.9
33.5

36.7
34.0

35.9
33.9

36.9
33.6

37.1
33.0

37.1
32.5

36.3
32.3

36. l r
32.2

36.6
32.r

38.9
32.2

34.3
7.2
3.2
32.7
44.7

33.2r
6.0
3.0
32.4
45.9

33. r
6.1
3.1
32.8
47.6

32.7
7.2
3.2
33.0
48.6

32. r
6.8
3.0
32.7
47.6r

31.7
6.4
3.0
32.7
45.7

31.0
6.0
3.0
32.8
51.8r

30.5
6.2
3.1
32.0
49.6r

30.0
6.3
3.1
31.4
53.8r

29.5
6.5
3.2
31.2
50.9

29.3
6.1
3.3
31.1
51.0"^

28.8
6.7
3.5
30.9
52.0

Not seasonally adjusted
20 Total loans and securities2

2,730.5

2,721.0

2,737.3

2,748.4

2,751.5

2,749.7

2,763.8

2,757.2

2,756.6

2,767.3

2,785.3

2,802.6

71 U.S. government securities
77 Other securities
71 Total loans and leases 2
74
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
7ft
Other commercial and
industrial
77
U.S. addressees 4
78
Non-U.S. addressees
79
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease-financing receivables
38
All other loans

451.5
176.3
2,102.7
648.0
7.7

455.8
177.9
2,087.3
641.1
7.6

463.9
177.3
2,096.1
643.0
7.0

475.8
176.9
2,095.7
648.3
6.7

480.5
175.1
2,095.9
644.7
6.7

485.2
173.8
2,090.6
637.1
6.8

493.7
173.2
2,096.9
632.7
6.7

501.8
171.3
2,084.1
627.0
6.3

510.4
170.1
2,076.0
619.2
6.9

519.6
171.0
2,076.7
620.3
6.9

535.2
172.4
2,078.2
621.5
6.6

549.4
173.0
2,080.2
618.1
7.1

640.3
635.1
5.2
837.9
383.8
40.0

633.4
628.2
5.3
837.1
380.1
41.0

636.0
630.5
5.5
839.5
377.1
44.7

641.6
636.1
5.4
842.6
372.8
40.2

638.1
632.2
5.9
848.3
371.5
41.3

630.3
624.5
5.9
854.2
371.8
39.0

626.0
620.0
6.0
859.6
369.9
40.5

620.6
614.8
5.8
857.5
367.4
41.3

612.3
606.4
5.9
855.9
368.1
42.0

613.4
607.4
6.0
855.2
367.0
42.9

614.9
608.7
6.2
856.9
363.6
42.9

611.0
604.8
6.1
858.4
362.8
45.2

36.2
32.9

35.3
32.8

35.5
32.6

36.0
32.6

35.5
32.8

36.5
33.1

37.2
33.3

36.9
33.4

36.3r
33.3

35.8r
33.3

36.5
33.l r

39.3
32.6

34.0
7.4
3.2
32.8
46.6

33.8
6.0
3.0
32.8
44. r

33.2
6.0
3.1
32.9
48.4

32.7
6.8
3.2
32.9
47.7r

32.0
6.7
3.0
32.7
47.4

31.7r
6.3
3.0
32.6
45.4

30.9
6.1
3.0
32.6
51.1

30.3
6.3
3.1
31.8
49.2r

29.9
6.2
3.1
31.3
so^

29.5
6.5
3.2
31.2
51.9

29.2
6.4
3.3
31.2
53.7r

28.8
6.8
3.5
31.0
53.9

1. Components may not sum to totals because of rounding.
2. Adjusted to exclude loans to commercial banks in the United States.




3. Includes nonfinancial commercial paper held.
4. United States includes the fifty states and the District of Columbia.

A18

Domestic Financial Statistics • February 1992

1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1990

1991

Source of funds
Dec.
Seasonally adjusted
1 Total nondeposit funds
2 Net balances due to related foreign offices3
3 Borrowings from other than commercial banks
in United States
4
Domestically chartered banks
5
Foreign-related banks
Not seasonally adjusted
6 Total nondeposit funds
7 Net balances due to related foreign o f f i c e s 3 . . . .
8
Domestically chartered banks
9
Foreign-related banks
10 Borrowings from other than commercial banks
in United States
11
Domestically chartered banks
Federal funds and security RP
12
borrowings
13
Other6
14 Foreign-related banks6

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct/

Nov.

288.6
34.6

278.2
33.5

266.2
24.9

265.8r
30.4r

265.7r
31.01

263.6r
26.3r

254.5r
19.3r

254.5r
19.5r

249.2r
17.l r

254.3r
19.97

268.0
30.8

270.4
32.8

254.0
187.8
66.2

244.7
183.0
61.7

241.3
178.0
63.3

235.4
172.5
62.9

234.7
172.4
62.2

237.3
171.8
65.5

235.2
170.6
64.6

235.0
169.6
65.4

232.1
163.9
68.2

234.4
165.4
69.0

237.2
163.8
73.4

237.6
161.6
76.0

283.0
37.2
-4.1
41.3

273.5
33.2
-15.3
48.4

269.3r
24.9r
-15.2
40.T

271. r
29.9
-6.0
35.9*

266.4r
29.l r
-3.6 r
32.7r

271.7r
28^
-.7
29.5r

257.6r
19.6r
-3.5
23.r

251.2r
17. l r
-7.2
24.3r

247.7r
16.5r
-7.5
24.0"

250.3r
20. l r
-9.1
29.2r

265.0
30.3
-7.7
38.0

271.1
33.5
-5.0
38.5

245.9
183.5

240.4
178.5

244.4
180.3

241.2
176.9

237.3
173.2

242.8
176.6

237.9r
171.6

234.1
167.5

231.2
163.5

230.2
162.6

234.8
162.2

237.6
163.9

180.7
2.8
62.3

175.2
3.2
61.9

177.5
2.8
64.1

173.6
3.2
64.3

170.3r
2.8r
64.1

173.8
2.8
66.2

168.7
2.8
66.4

164.3
3.2
66.6

159.8
3.7
67.7

159.1
3.5
67.7r

159.0
3.2
72.6

160.7
3.2
73.7

431.8
431.8

441.0
439.3

450.6
449.2

451.0
450.5

451.3
449.0

453.0
452.6

451.9
451.4

447.6
446.4

447.2
448.2

443.9
445.7

435.1
437.5

432.4
434.9

24.4
23.0

25.7
29.4

33.4
39.3

33.8
28.4

21.7
20.4

15.1
19.8

23.2
23.6

20.5
20.7

23.8
17.2

21.9
26.9

31.1
28.7

37.6
28.6

MEMO

Gross large time deposits1
Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks'
17 Seasonally adjusted
18 Not seasonally adjusted

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




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

Commercial Banking Institutions
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS

A19

Last-Wednesday-of-Month Series 1

Billions of dollars
1991r
Account
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

A L L COMMERCIAL BANKING
INSTITUTIONS 2

Total assets

3,357.8

3,388.9

3,380.1

3,368.5

3,410.3

3,409.2

3,438.5

3,397.3

3,423.0

3,461.6

3,499.6

7
3
4
5
6
7
8
9
10
11
1?
13

Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets

2,908.7
612.8
447.6
165.2
24.1
2,271.8
193.3
2,078.6
637.2
836.9
378.6
225.9

2,924.9
614.0
449.5
164.5
26.9
2,283.9
185.0
2,099.0
645.1
840.1
376.4
237.4

2,910.9
628.3
463.3
165.1
23.5
2,259.1
171.8
2,087.3
648.5
842.5
371.5
224.8

2,907.3
628.5
465.1
163.4
24.9
2,253.8
160.7
2,093.1
643.6
849.2
372.0
228.3

2,921.8
634.1
471.8
162.2
24.3
2,263.4
172.5
2,090.9
635.1
855.4
370.7
229.6

2,936.3
640.8
480.1
160.7
27.5
2,268.0
166.8
2,101.3
632.4
859.3
369.8
239.8

2,937.7
648.7
489.9
158.8
30.2
2,258.8
175.9
2,082.9
624.2
856.0
368.3
234.3

2,921.0
650.9
492.8
158.1
28.5
2,241.5
167.5
2,074.1
617.8
854.8
368.2
233.3

2,939.3
657.6
498.8
158.8
29.9
2,251.8
172.4
2,079.4
620.0
854.7
366.7
238.0

2,970.5
681.9
522.1
159.8
32.6
2,255.9
178.6
2,077.4
618.5
858.8
363.7
236.3

2,984.5
692.0
531.5
160.5
33.2
2,259.2
178.8
2,080.4
617.7
857.9
361.8
243.0

14
15
16
17
18

199.2
16.5
30.4
74.7

204.5
18.1
29.8
79.9

206.1
25.0
28.9
76.9

201.0
23.1
29.1
74.3

224.3
26.2
31.1
87.2

212.3
29.1
29.8
78.3

214.1
24.8
29.7
87.8

200.1
23.0
31.1
71.7

207.1
25.7
30.1
75.3

210.3
25.6
30.7
75.2

228.1
24.4
29.5
90.3

19

Total cash assets
Reserves with Federal Reserve Banks . .
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets

28.1
49.6

27.7
49.0

27.6
47.7

26.4
48.1

30.8
49.0

28.3
46.8

26.9
45.0

27.7
46.5

26.9
49.2

28.8
50.1

32.3
51.5

20

Other assets

249.9

259.6

263.1

260.1

264.2

260.6

286.7

276.2

276.5

280.9

287.1

3,269.1

1

Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other

21

Total liabilities

3,133.2

3,162.7

3,153.1

3,140.4

3,180.7

3,180.3

3,210.6

3,168.9

3,194.0

3,232.7

77
23
24

Total deposits
Transaction accounts
Savings deposits (excluding
checkable)
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)3

2,334.6
587.9

2,365.0
594.1

2,382.5
602.8

2,381.9
601.3

2,413.3
617.6

2,406.1
611.2

2,448.8
639.4

2,430.9
612.0

2,430.3
613.7

2,443.7
628.0

2,485.0
669.8

573.9
1,172.8
529.8
268.8
224.6

583.5
1,187.3
515.4
282.3
226.2

594.1
1,185.6
492.3
278.2
227.0

595.4
1,185.3
494.6
263.9
228.1

606.2
1,189.5
499.8
267.6
229.6

610.7
1,184.2
510.4
263.8
228.9

619.9
1,189.5
503.5
258.4
227.9

624.1
1,194.7
480.9
257.1
228.4

628.2
1,188.4
498.5
265.2
229.0

640.0
1,175.7
512.6
276.4
228.9

647.7
1,167.6
498.0
286.0
230.5

2,961.4

2,986.3

2,980.4

2,962.4

2,993.7

2,989.4

3,009.9

2,973.4

2,985.2

3,011.6

3,038.2

2,637.8
612.1
470.2
141.9
28.5
1,997.1
146.4
1,850.7
475.3
806.9
67.6
739.4
368.2
200.2

2,645.4
618.1
475.6
142.5
29.9
1,997.4
148.0
1,849.3
472.6
806.9
68.7
738.2
366.7
203.1

2,660.9
636.2
492.9
143.3
32.6
1,992.1
149.2
1,842.9
470.7
810.3
69.3
741.1
363.7
198.1

2,674.2
643.2
499.6
143.6
33.2
1,997.8
156.0
1,841.8
467.9
809.5
69.6
739.9
361.8
202.6

75
76
77
28

DOMESTICALLY CHARTERED
COMMERCIAL BANKS 4
29

Total assets

Loans and securities
Investment securities
U.S. government securities
33
Other
34
Trading account assets
35
Total loans
36
Interbank loans
37
Loans excluding interbank
38
Commercial and industrial
39
Real estate
40
Revolving home equity
41
Other real estate
30
31
37

47
43
44
45
46
47
48
49

All other
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets

50

Other assets

51

Total liabilities

57, Deposits
Transaction accounts
Savings deposits (excluding

53

2,628.0
575.3
426.5
148.7
24.1
2,028.6
151.7
1,876.9
504.2
794.0
62.9
731.1
378.6
200.2

2,642.3
577.4
429.3
148.2
26.9
2,038.0
150.9
1,887.0
508.4
797.1
63.3
733.8
376.4
205.1

2,635.6
588.6
440.2
148.5
23.5
2,023.5
148.3
1,875.2
506.3
799.7
63.6
736.1
371.5
197.7

2,629.1
592.3
445.5
146.8
24.9
2,011.9
134.2
1,877.7
502.4
804.9
64.4
740.3
372.0
198.4

2,638.0
595.7
449.2
146.5
24.3
2,018.0
144.5
1,873.5
495.0
808.9
65.7
743.0
370.7
198.8

2,645.8
602.7
457.8
144.9
27.5
2,015.6
139.0
1,876.6
491.2
812.1
66.6
743.7
369.8
203.6

2,653.4
611.0
467.9
143.0
30.2
2,012.3
150.4
1,861.8
482.6
808.2
67.0
741.2
368.3
202.6

166.6
15.3
30.3
72.9

172.7
17.0
29.8
78.2

177.0
24.0
28.8
74.9

171.6
21.9
29.1
72.6

193.6
25.8
31.1
85.5

184.3
28.3
29.8
76.2

187.6
23.9
29.7
86.1

172.3
22.1
31.0
70.1

177.0
24.9
30.1
73.8

179.7
25.0
30.6
73.4

197.8
23.9
29.5
88.1

26.2
22.0

25.8
21.9

25.8
23.4

24.8
23.2

28.8
22.4

26.5
23.6

25.2
22.8

25.9
23.2

24.9
23.4

27.0
23.8

30.3
26.0

166.9

171.3

167.9

161.6

162.1

159.3

168.9

163.4

162.9

170.9

166.2

2,770.5

2,763.7

2,757.0

2,737.9

2,767.7

2,764.1

2,785.7

2,748.6

2,759.8

2,786.3

2,811.3

2,236.2
577.4

2,255.2
583.8

2,266.2
592.2

2,258.8
591.4

2,280.8
607.5

2,271.3
600.9

2,308.6
629.3

2,284.9
602.1

2,282.0
604.0

2,296.5
618.1

2,336.3
659.2

570.6
1,088.1
380.1

580.2
1,091.2
371.8

590.6
1,083.4
354.9

591.9
1,075.6
346.5

607.1
1,063.4
364.4

624.5
1,053.5
355.6

636.2

1,042.2

643.8
1,033.4

136.8
222.6

136.0
223.4

132.6
224.5

616.2
1,063.1
352.2
124.9

620.4
1,062.5
338.8

124.2

602.5
1,070.8
355.1
131.9

125.0
224.8

122.3
225.4

359.9
129.9

343.3
131.7

225.3

226.9

54

55 Time deposits
56 Borrowings
57 Other liabilities
58 Residual (assets less liabilities)3

220.9

1. Back data are available from the Banking and Monetary Statistics Section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
Data in this table also appear in the Board's H.8 (510) weekly statistical release.
Data are partly estimated. They include all bank-premises subsidiaries and
other significant maiority-owned domestic subsidiaries. Components may not sum
to totals because of rounding.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge act and agreement corporations, and New York




226.0

128.4
225.3

224.2

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

A20

DomesticNonfinancialStatistics • February 1992

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY-REPORTING COMMERCIAL BANKS 1
Millions of dollars, Wednesday figures
1991
Account
Oct. 2

Oct. 9

104,048'
213,614
19,214
194,400
78,496

97,617r
216,267r
21,312
194,955r
78,326

125,152'
218,260
21,133
197,126'
78,736

97,373
217,673
20,376
197,298
77,228

102,694
219,807
18,924
200,883
78,344

101,196
221,943
21,246
200,698
77,222

127,512
223,643
21,461
202,182
77,076

107,506
225,674
22,663
203,011
77,640

114,730
223,523
20,094
203,429
76,636

25,328
47,942
42,634
56,655
1,350
55,305
24,020
2,998
21,022
31,285
10,673

25,736
48,391
42,503
56,623
1,285
55,338
23,986
3,009
20,977
31,353
11,148

25,892
49,753
42,745
56,423
1,216
55,207
23,942
2,968
20,973
31,265
12,109

25,721
49,847
44,502
56,330
1,289
55,041
23,694
2,935
20,759
31,347
11,738

26,016
50,796
45,726
56,399
1,313
55,086
23,630
2,951
20,679
31,456
12,383

26,330
51,410
45,736
56,097
1,267
54,830
23,497
2,999
20,498
31,333
11,476

26,901
52,145
46,061
55,930
1,330
54,599
23,217
2,948
20,269
31,382
11,849

26,029
53,499
45,843
55,798
1,296
54,502
22,977
2,918
20,060
31,525
12,230

25,932
54,545
46,316
56,338
1,544
54,795
23,033
3,015
20,018
31,762
11,570

73,452
49,200
20,095
4,157
1,001,285
296,430
1,684
294,746
293,052
1,694

79,855
55,329
20,108
4,418
1,002,949
295,476
1,715
293,761
292,172
1,589

82,502
58,156
20,191
4,155
1,003,238
296,157
1,741
294,416
292,962
1,453

83,649
60,326
19,791
3,533
1,006,363
295,478
2,228
293,250
291,885
1,365

80,930
52,792
24,091
4,047
1,000,754
295,216
2,247
292,969
291,617
1,352

82,619
56,629
21,862
4,128
1,000,915
294,339
2,272
292,067
290,758
1,309

396,066'
39,264'
356,802'
181,737'
43,849'
18,870'
2,348'
22,631
13,772'
6,176'
18,210'
1,005
22,471'
25,788'
3,518
36,383'
968,192'
153,063'

395,696
39,323
356,373
181,799
43,497
19,281
2,177
22,039
12,359
6,131
18,155
956
20,892
25,368
3,401
36,368
961,515
152,152

395,806
39,365
356,441
182,237
44,067
19,808
1,681
22,577
13,733
6,118
18,091
1,006
21,017
25,399
3,415
36,419
963,115
155,654

396,107
39,266
356,841
181,909
44,671
19,671
2,058
22,941
12,818
6,076
17,968
1,019
21,062
25,452
3,368
37,029
962,842
157,103

396,730
39,351
357,379
181,935
45,555
20,183
2,130
23,242
14,186
6,025
17,8%
1,407
21,732
25,420
3,363
36,980
966,021
153,284

395,979
39,427
356,553
180,692
43,166
18,966
1,686
22,513
14,388
6,001
17,851
930
21,165
25,366
3,358
36,977
960,419
152,997

395,470
39,513
355,958
180,056
44,223
18,998
2,164
23,060
14,351
5,945
17,866
1,109
22,263
25,293
3,341
36,754
960,820
152,029

l,599,800 r 1,581,573' 1,623,837'

1,570,234

1,589,906

1,593,160

1,621,886

1,595,555

1,601,631

Oct. 16

Oct. 23'

Oct. 30'

Nov. 6

Nov. 13

Nov. 20

Nov. 27

ASSETS

1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
3 Trading account
4
Investment account
5
Mortgage-backed securities
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10 Trading account
11
Investment account
12
State and political subdivisions, by maturity
13
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17 Federal funds sold3
18 To commercial banks in the United States
19 To nonbank brokers and dealers
20
To others
21 Other loans and leases, gross
22
Commercial and industrial
23
Bankers acceptances and commercial paper
24
All other
25
U.S. addressees
26
Non-U.S. addressees
27
Real estate loans
28
Revolving, home equity
29
All other
30 To individuals for personal expenditures
31
To financial institutions
32
Commercial banks in the United States
33
Banks in foreign countries
34
Nonbank financial institutions
35
For purchasing and carrying securities
36 To finance agricultural production
37
To states and political subdivisions
38 To foreign governments and official institutions
39
All other loans
40
Lease-financing receivables
41 LESS: Unearned income
42
Loan and lease reserve6
43 Other loans and leases, net
44 Other assets
45 Total assets
Footnotes appear on the following page.




92,205
83,169
90,638
64,828
55,866
66,658
22,869
20,252
23,603
4,508
3,728
3,700
r
l,007,745 1,003,419"^ 1,008,093'
299,715r
297,852r
299,020'
1,630
1,659
1,643
298,085r
297,361'
296,209r
296,407r
294,61 l r
295,673'
1,679
1,688
1,597
395,944r
39,15l r
356,793r
182,437r
45,589r
20,669r
l,896 r
23,024r
ll,122 r
6,208r
18,23lr
979
21,812r
25,707r
3,521
37,487
966,737r
155,868r

396,068r
39,173r
356,895r
181,785r
44,264r
19,598r
2,003r
22,664
11,598
6,210r
18,182
1,053
20,703r
25,703r
3,519
37,165
962,735r
154,013r

Weekly Reporting Commercial Banks

A21

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1991
Oct. 2

Oct. 9

Oct. 23"

Oct. 30"

Nov. 6

Nov. 13

Nov. 20

Nov. 27

1,087,015
213,596
172,711
40,885
7,109
1,392
18,520
4,739
615
8,510
91,527
781,891
750,069
31,821
26,395
1,141
3,873
412

1,093,752
221,894
178,008
43,886
6,995
1,634
20,594
4,572
594
9,498
91,735
780,122
748,659
31,464
26,025
1,152
3,876
411

1,103,034
223,312
. 181,219
42,093
7,328
1,373
18,903
5,373
679
8,437
96,312
783,410
752,019
31,391
25,827
1,183
3,959
420

1,121,361
244,310
193,712
50,598
7,176
1,548
25,370
5,187
709
10,606
94,621
782,430
751,168
31,262
25,843
1,181
3,822
416

1,105,399
230,353
182,847
47,506
7,459
1,630
19,657
5,156
569
13,035
94,311
780,735
749,661
31,074
25,662
1,176
3,834
402

1,118,098
244,247
194,383
49,865
8,311
3,405
22,495
5,349
740
9,565
%,1%
777,655
746,637
31,018
25,570
1,177
3,849
422

282,732"
90
17,751"
264,891"

269,875
10
23,318
246,547

280,993
0
28,034
252,959

275,888
0
20,274
255,614

285,358
0
23,543
261,815

272,825
0
18,020
254,805

264,571
5
15,114
249,452

99,530"

Oct. 16

LIABILITIES

46 Deposits
47
Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
54
Foreign governments and official institutions . .
55
Certified and officers' checks
56
Transaction balances other than demand deposits5 .
57
Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U.S. government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .

279,473r
0
25,240
254,233r

99,625r

1,485,409' l,466,162

69 Total liabilities

114,391r

70 Residual (total assets less total liabilities)8
MEMO

265,889"
0
14,474r
251,415r

94,428r

64 Liabilities for borrowed money 6
65
Borrowings from Federal Reserve Banks
66 Treasury tax and loan notes
67
Other liabilities for borrowed money
68 Other liabilities (including subordinated notes and
debentures)

71
72
73
74
75
76
77

r
r
1,111,508r l,100,648 l,126,656 r
247,168
219,438
231,452
195,651r
178,993
186,121
51,518
40,445
45,331
7,417
6,563
7,252
1,344
2,583
2,213
24,830
18,522
21,033
5,399
4,851
4,862
674
473
575
10,615
8,692
9,396
r
93,888r
93,750
94,273
787,46c
785,600"
785,783r
753,617r
755,02 l r
753,529r
r
31,983r
32,438r
32,254
r
26,440"
26,820"
26,755
1,156
1,148
1,101
3,973
4,052
3,975
415
419
423

,

Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents 11 ...
Net due to related institutions abroad

98,029

100,818

99,054

99,495

101,2%

103,620

1,508,919" 1,454,919

1,475,563

1,477,976

1,506,214

1,479,520

1,486,289

115,41 r

114,918"

115,315

114,344

115,185

115,673

116,035

115,343

l,295,395r l,295,163r
177,949
177,268
1,470
1,491
799
821
671
670
24,274
24,122
-6,573 r
—ll,810 r

1,299,994"
175,607
1,490
826
664
24,239
-4,769

1,291,9%
174,614
1,472
805
667
23,881
-6,571

1,2%,255
172,697
1,465
798
666
23,981
-4,929

1,297,430
172,824
1,431
787
644
24,307
-7,334

1,300,924
170,972
1,388
759
629
24,115
-5,149

1,303,628
170,806
1,363
735
628
24,204
-3,867

1,299,338
170,673
1,323
705
618
24,572
-3,901

1. Components may not sum to totals because of rounding.
2. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
3. Includes securities purchased under agreements to resell.
4. Includes allocated transfer risk reserve.
5. Includes negotiable order of withdrawal (NOW), automatic transfer service
(ATS), and telephone and preauthorized transfer savings deposits.
6. includes borrowings only from other-than-directly-related institutions.
7. Includes federal funds purchased and securities sold under agreements to
repurchase.
8. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
9. Excludes loans to and federal funds transactions with commercial banks in




r

the United States.
10. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
11. Credit extended by foreign branches of domestically chartered weeklyreporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address see inside
front cover.

A22

DomesticNonfinancialStatistics • February 1992

1.30 LARGE WEEKLY-REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities 1

Assets and

Millions of dollars, Wednesday figures
1991
Account
Nov. 13

Nov. 20

16,154

19,818

17,590

16,932

18,944
7,615
9,947
2,546
7,402
146,655
87,492

20,067
7,666
10,656
4,007
6,649
146,284
87,675

18,835
7,847
8,788
2,746
6,042
148,761
88,697

20,441
7,847
10,076
4,080
5,9%
150,400
89,207

1,862
84,725r
82,438r
2,288
33,321
19,05 l r
8,093
1,930
9,028r
3,853r

1,818
85,674
83,332
2,342
33,287
19,017
7,739
2,003
9,275
4,491

1,868
85,807
83,409
2,398
33,244
19,171
7,816
2,292
9,063
3,767

2,036
86,661
84,198
2,463
33,317
19,363
7,945
2,262
9,156
4,864

2,252
86,955
84,483
2,472
33,430
19,937
8,205
2,265
9,467
5,166

395
2,027r
30,572

394
1,974
30,955

409
2,018
31,556

421
2,100
32,377

421
2,238
31,620

269,027

270,752

274,403

273,220

275,973

90,106
3,760

93,755
3,464

92,319
3,356

93,611
3,693

95,240
4,203

94,950
3,895

2,366
1,323
85,457

2,180
1,580
86,346

2,221
1,243
90,291

2,138
1,217
88,963

2,369
1,324
89,919

2,284
1,919
91,037

2,332
1,563
91,055

63,539r
25,099"^

62,417r
23,041r

62,974r
23,372r

65,562
24,729

64,176
24,787

65,567
24,351

65,678
25,359

65,256
25,799

93,470
48,691

93,593
50,862

98,135
54,398

95,691
53,269

94,461
50,231

97,987
53,628

95,197
47,938

94,777
51,335

95,466
49,240

21,151
27,540
44,780

18,869
31,993
42,731

23,172
31,226
43,736

17,210
36,058
42,422

18,867
31,364
44,230

22,018
31,610
44,359

19,620
28,317
47,259

18,226
33,109
43,442

19,151
30,090
46,225

14,559
30,221
27,754r

13,115
29,615
29,050r

13,660
30,076
28,250r

12,452r
29,970"^
29,247

13,302
30,928
30,027

13,214
31,145
30,071

13,450
33,809
30,659

13,088
30,354
30,413

14,138
32,087
30,064

262,629r

259,589r

263,294r

262,248

269,027

270,752

274,403

273,220

275,973

164,37c
5,220r

r

169,781
12,181

170,484
13,786

172,877
9,894

172,850
16,580

173,540
13,767

176,478
16,836

Oct. 2
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold1
5 To commercial banks in the United States . . .
6
To others
7 Other loans and leases, eross
8
Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
12
Non-U.S. addressees
13
Loans secured by real estate
14 To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18 For purchasing and carrying securities
19 To foreign governments and official
institutions
20
All other
21 Other assets (claims on nonrelated parties) ..
22 Total assets3
23 Deposits or credit balances due to other
than directly related institutions
24 Demand deposits 4
25
Individuals, partnerships, and
corporations
7,6 Other
27 Nontransaction accounts
28
Individuals, partnerships, and
corporations
29
Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased
32
From commercial banks in the
United States
33
From others
34 Other liabilities for borrowed money
35
To commercial banks in the
United States
36 To others
37 Other liabilities to nonrelated parties
38 Total liabilities6
MEMO

39 Total loans (gross) and securities, adjusted 7 ..
40 Net due to related institutions abroad

Oct. 9

Oct. 16

Oct. 23

Oct. 30

Nov. 6

15,862

16,473

15,934

16,820

16,898

16,398r
7,496
7,925
3,420
4,505
143,905r
86,57l r

16,682r
7,361
7,746
2,448
5,299
143,lll r
86,514r

17,496r
7,537
11,604
4,607
6,998
145,210r
87,248r

18,138
7,426
10,974
3,794
7,180
144,542
86,946r

18,880
7,589
12,858
5,983
6,874
145,233
86,587r

l,904 r
84,667r
82,460r
2,207
32,722r
18,949*"
8,546
2,113
8,29c
3,347r

2,134r
84,380r
82,158r
2,222
32,738
18,382r
8,084
2,018
8,280r
3,238r

2,104r
85,144r
82,860r
2,284
33,049
18,418r
7,603
1,894
8,921r
4,015r

1,824
85,121r
82,913r
2,208
33,166
18,144r
7,506
1,894
8,744r
3,872r

378
1,938
28,681r

394
1,847
29,078r

398
2,083r
29,066r

409
2,006r
29,325

262,629'

259,589r

263,294r

262,248

96,490
3,545

92,589
3,951

89,147
3,689

2,291
1,254
92,945

2,121
1,830
88,638

66,765r
26, ISC

163,758r
r
2,553

169,637
ll,315 r

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




Nov. 27

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

Financial Markets

A23

1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING 1
Millions of dollars, end of period
1991
1986
Dec.

Item

1987
Dec.

1988
Dec.

1989
Dec.

1990
Dec.
May

June

July

Aug.

Sept.

Oct.

Commercial paper (seasonally adjusted unless noted otherwise)
331,316

2
3
4
5

458,464

530,123

566,688

534,097

534,561

544,048

536,936

531,886

528,275

102,742

159,777

186,343

218,953

206,500

203,139

205,099

208,159

211,821

219,028

2,265

1,428

1,248

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

151,897

Financial companies2
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)

358,997

101,707

1 All issuers

174,332

194,931

212,640

201,862

183,383

189,512

193,699

190,659

188,382

178,834

40,860

43,173

43,155

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

77,712

6 Nonfinancial companies6

81,923

103,756

131,140

145,873

144,214

141,910

145,250

138,118

131,683

130,413

Bankers dollar acceptances (not seasonally adjusted)7
64,974

11
12
13

62,972

54,771

46,438

45,539

44,756

44,228

43,462

44,910

10,943
9,464
1,479

9,086
8,022
1,064

9,433
8,510
924

9,017
7,930
1,087

10,138
8,179
1,959

10,028
8,414
1,613

9,081
7,906
1,175

9,622
7,826
1,795

10,174
8,237
1,937

9,876
8,306
1,570

0
965
58,658

0
1,493
56,052

0
1,066
52,473

0
918
44,836

0
1,053
35,247

0
1,203
34,308

0
1,274
34,401

0
1,665
32,941

0
1,678
31,610

0
1,862
33,172

14,670
12,960
37,344

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

8
9
10

66,631

0
1,317
50,234

Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others

70,565

13,423
11,707
1,716

7 Total

16,483
15,227
38,855

14,984
14,410
37,237

15,651
13,683
33,638

13,096
12,703
28,973

12,821
11,511
22,106

13,431
11,416
20,691

12,728
11,468
20,561

12,968
11,044
20,215

12,876
10,966
19,620

13,265
11,105
20,541

1. Components may not sum to totals because of rounding.
2. 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.
3. Includes all financial-company paper sold by dealers in the open market.
4. Bank-related series were discontinued in January 1989.
5. As reported by financial companies that place their paper directly with
investors.

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

1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Date of change

Period

Rate

1989— Jan. 1
Feb. 10
24
June 5
July 31

10.50
11.00
11.50
11.00
10.50

1990— Jan.

8

10.00

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

9.50
9.00
8.50
8.00
7.50
6.50

Average
rate

1989
1990
1991

10.87
10.01
8.46

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

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

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




Period

1990- • Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Average
rate
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00

Period

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

A24
1.35

DomesticNonfinancialStatistics • February 1992
I N T E R E S T R A T E S M o n e y and Capital M a r k e t s
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1991
Item

1988

1989

1991, week ending

1990
Aug.

Sept.

Oct.

Nov.

Nov. 1

Nov. 8

Nov. 15 Nov. 22 Nov. 29

MONEY MARKET INSTRUMENTS

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

7.57
6.20

9.21
6.93

8.10
6.98

5.66
5.50

5.45
5.20

5.21
5.00

4.81
4.58

5.10
5.00

5.05
4.93

4.74
4.50

4.89
4.50

4.68
4.50

7.58
7.66
7.68

9.11
8.99
8.80

8.15
8.06
7.95

5.72
5.72
5.76

5.57
5.57
5.59

5.29
5.35
5.33

4.95
4.98
4.93

5.19
5.26
5.21

4.98
5.00
4.98

4.99
5.00
4.94

4.92
4.96
4.91

4.91
4.94
4.84

7.44
7.38
7.14

,4

8.99
8.72
8.16

8.00
7.87
7.53

5.58
5.56
5.50

5.43
5.33
5.34

5.18
5.19
5.12

4.80
4.87
4.76

5.09
5.12
5.04

4.86
4.90
4.82

4.81
4.89
4.74

4.74
4.85
4.73

4.74
4.80
4.71

paper3,5,6

3
4
5

Commercial
1-month
3-month
6-month

6
7
8

Finance paper, directly
1-month
3-month
6-month

placed3,5,7

9
10

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

7.56
7.60

8.87
8.67

7.93
7.80

5.54
5.55

5.38
5.42

5.21
5.15

4.85
4.76

5.09
5.01

4.88
4.83

4.87
4.79

4.84
4.73

4.78
4.65

11
12
13

Certificates qf deposit,
marker•
1-month
3-month
6-month

7.59
7.73
7.91

9.11
9.09
9.08

8.15
8.15
8.17

5.64
5.65
5.79

5.47
5.47
5.60

5.23
5.33
5.32

4.86
4.94
4.92

5.12
5.21
5.19

4.93
4.98
4.97

4.87
4.98
4.97

4.79
4.90
4.90

4.82
4.86
4.83

7.85

9.16

8.16

5.65

5.50

5.34

4.%

5.25

5.01

4.98

4.90

4.90

6.67
6.91
7.13

8.11
8.03
7.92

7.50
7.46
7.35

5.33
5.39
5.45

5.22
5.25
5.26

4.99
5.04
5.04

4.56
4.61
4.64

4.85
4.88
4.87

4.68
4.74
4.74

4.62
4.67
4.70

4.49
4.55
4.57

4.39
4.45
4.50

6.68
6.92
7.17

8.12
8.04
7.91

7.51
7.47
7.36

5.39
5.47
5.62

5.25
5.29
5.26

5.03
5.08
5.12

4.60
4.66
4.72

4.99
5.04
n.a.

4.74
4.80
n.a.

4.64
4.71
n.a.

4.58
4.62
4.72

4.44
4.50
n.a.

secondary

14 Eurodollar deposits, 3-month3,10

18
19
20

U.S. Treasury bills
Secondary market '
3-month
6-month
1-year
Auction average3, , u
3-month
6-month
1-year

21
22
23
24
25
26
27

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

7.65
8.10
8.26
8.47
8.71
8.85
8.96

8.53
8.57
8.55
8.50
8.52
8.49
8.45

7.89
8.16
8.26
8.37
8.52
8.55
8.61

5.78
6.43
6.80
7.43
7.74
7.90
8.14

5.57
6.18
6.50
7.14
7.48
7.65
7.95

5.33
5.91
6.23
6.87
7.25
7.53
7.93

4.89
5.56
5.90
6.62
7.06
7.42
7.92

5.15
5.75
6.12
6.79
7.20
7.52
7.94

5.00
5.64
5.99
6.71
7.14
7.48
7.96

4.96
5.61
5.95
6.64
7.04
7.37
7.84

4.82
5.51
5.84
6.56
7.00
7.38
7.92

4.74
5.44
5.81
6.54
7.03
7.42
7.96

Composite13
28 Over 10 years (long-term)

8.98

8.58

8.74

8.17

7.96

7.88

7.83

7.87

7.87

7.76

7.82

7.86

7.36
7.83
7.68

7.00
7.40
7.23

6.96
7.29
7.27

6.62
6.95
6.90

6.51
6.87
6.80

6.28
6.70
6.68

6.24
6.58
6.73

6.32
6.68
6.69

6.24
6.54
6.71

6.32
6.69
6.69

6.20
6.55
6.75

6.20
6.55
6.78

10.18

9.66

9.77

9.16

9.03

8.99

8.93

9.00

8.98

8.89

8.92

8.93

9.71
9.94
10.24
10.83

9.26
9.46
9.74
10.18

9.32
9.56
9.82
10.36

8.75
8.99
9.26
9.65

8.61
8.86
9.11
9.51

8.55
8.83
9.08
9.49

8.48
8.78
9.01
9.45

8.58
8.83
9.07
9.52

8.55
8.81
9.05
9.50

8.43
8.74
8.97
9.42

8.46
8.78
8.99
9.44

8.46
8.79
9.00
9.46

10.20

9.79

10.01

9.25

9.05

9.02

8.95

8.98

8.92

8.87

9.04

8.98

9.23
3.64

9.05
3.45

8.96
3.61

8.04
3.10

7.88
3.15

7.84
3.14

7.81
3.15

7.93
3.09

7.84
3.11

7.73
3.05

7.83
3.20

7.85
3.22

15
16
17

U . S . TREASURY NOTES AND BONDS

STATE AND LOCAL NOTES AND BONDS

Moody's series14
29 Aaa
30 Baa
31 Bond Buyer series15
CORPORATE BONDS

32 Seasoned issues, all industries16
33
34
35
36

Rating group
Aaa
Aa
A
Baa

37 A-rated, recently offered utility bonds17
MEMO: Dividend-price ratio18
38 Preferred stocks
39 Common stocks

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




12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower"bond.
14. General obligations based on Thursday figures; Moody's Investors Service.
15. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H.15 (519) and G. 13 (415) releases.
For address, see inside front cover.

Financial Markets
1.36 STOCK MARKET

A25

Selected Statistics
1991

Indicator

1989

1990
Mar.

Apr.

May

July

June

Aug.

Sept.

Oct.

Nov.

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
Utility
4
5
Finance

149.96
180.83
134.07
72.22
127.41

180.13
228.04
174.90
94.33
162.01

183.58
225.89
158.88
90.71
133.36

203.56
255.36
166.26
92.29
145.41

207.71
260.16
166.90
92.92
152.64

207.07
260.13
170.77
90.73
151.32

207.32
261.16
177.05
89.01
152.30

208.29
262.48
177.15
90.05
151.69

213.33
268.22
178.42
92.38
157.70

212.55
266.21
177.99
93.72
157.69

213.10
265.68
187.45
95.25
158.94

213.25
264.89
188.52
96.78
159.78

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

265.86

323.05

334.83

372.28

379.68

378.27

378.29

380.23

389.40

387.20

386.88

385.87

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

295.06

356.67

338.58

353.98

365.02

362.67

366.06

364.33

367.38

369.55

376.82

382.38

161,509
9,955

165,568
13,124

156,777
13,155

196,343
15,326

182,510
13,140

170,337
10,995

162,154
11,477r

157,871
10,883

171,490
12,514r

163,242
n.a.

177,502
13,764

187,191
14,487

Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange

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

32,740

34,320

28,210

29,660

30,020

29,980

31,280

30,600

32,240

33,170

33,360

34,840

Free credit balances at brokers4
11 Margin accounts
12 Cash accounts

5,660
16,595

7,040
18,505

8,050
19,285

7,320
19,555

6,975
17,830

7,200
16,650

6,690
18,110

6,545
16,945

7,040
17,040

6,950
17,595

6,965
17,100

7,040
17,780

Margin requirements (percent of market value and effective date)6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

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




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

A26

DomesticNonfinancialStatistics • February 1992

1.37 SELECTED FINANCIAL INSTITUTIONS

Selected Assets and Liabilities

Millions of dollars, end of period
1990
Account

1988

1991

1989
Dec.

Jan.

Mar.

Feb.

Apr.

May

June

July

Aug.

Sept.

SAIF-insured institutions
1 Assets

1,350,500

1,249,055

1,084,821

1,065,993

1,054,654

1,041,977

1,027,568

1,020,716

1,001,240

984,979

972,546

949,098

764,513

733,729

633,385

624,707

619,720

610,618

608,857

605,915

5%,029

586,255

578,259

566,152

214,587

170,532

155,228

151,422

149,318

147,431

143,968

141,532

139,532

137,078

135,732

135,490

37,950
33,889
61,922

25,457
32,150
58,685

16,897
24,125
48,753

15,211
23,669
48,129

14,872
23,205
47,729

14,592
22,294
47,653

14,338
21,903
46,702

14,388
21,724
45,827

14,610
20,647
45,178

14,187
20,301
44,349

13,998
20,398
43,248

13,354
18,511
42,437

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

3,056

3,592

1,939

1,700

1,876

1,827

1,742

1,739

1,745

1,674

1,535

1,392

186,986
129,610

166,053
116,955

146,644
95,522

140,502
94,474

138,884
92,546

138,976
91,424

132,884
89,334

134,029
87,766

130,453
85,756

130,268
82,589

132,016
78,426

125,658
75,597

10 Liabilities and net worth . 1,350,500

1,249,055

1,084,821

1,065,993

1,054,654

1,041,977

1,027,568

1,020,716

1,001,240

984,979

972,546

949,098

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

835,4%
197,353
100,391
%,%2
21,332
30,640

823,515
188,900
95,819
93,081
22,178
31,400

816,477
183,660
94,658
89,002
23,355
31,162

816,991
169,412
90,555
78,857
20,350
35,223

806,269
164,274
86,779
77,495
21,730
35,295

801,681
159,636
82,312
77,324
23,647
35,751

792,936
151,474
78,966
72,508
20,468
36,728

775,448
146,902
76,104
70,798
21,639
40,989

763,767
142,908
74,424
68,484
22,645
43,226

749,423
132,728
68,787
63,941
19,011
47,937

11
12
13
14
15
16

Savings capital
Borrowed money
FHLBB
Other
Other
Net worth

971,700
299,400
134,168
165,232
24,216
n.a.

1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.

3. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.
NOTE. Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. They will
be shown in a separate table which will appear quarterly, starting in the December
issue.
SOURCE. Savings Association Insurance Fund (SAIF)-insured institutions:
Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by
the SAIF and based on the OTS thrift institution Financial Report.

1.38 FEDERAL FISCAL AND FINANCING OPERATIONS 1
Millions of dollars
Calendar year
Type of account or operation

Fiscal
year
1989

Fiscal
year
1990

Fiscal
year
1991

1991
May

U.S. budget2
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
On-budget
5
6
Off-budget
7 Surplus or deficit ( - ) , total
8 On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 Other

June

July

Aug.

1,054,260
760,377r
293,883r
1,322,989
l,081,303r
241,685r
-268,729
-320,926
52,198

63,560
41,958
21,602
116,906
95,903
21,003
-53,346
-53,945
599

103,389
76,322
27,067
105,849
90,901
14,948
-2,460
-14,579
12,119

78,593
56,327
22,266
119,384
99,532
19,852
-40,791
-43,205
2,414

76,426
54,651
21,775
120,071
97,247
22,824
-43,645
-42,5%
-1,049

Sept.

109,345
83,130"
26,215r
116,174
91,516r
24,658r
-6,829
-8,386
1,557

Oct.

990,701
727,035
263,666
1,144,020
933,107
210,911
-153,319
-206,072
52,753

1,031,308
749,652
281,656
1,251,766
1,026,711
225,065
-220,469
-277,059
56,590

78,068
57,216
20,852
114,045
94,062
19,983
-35,976
-36,846
869

141,806
3,425
8,088

220,101
818
-451

276,802
-1,329
-6,744

41,742
20,362
-8,758

10,715
-15,730
7,475

34,434
6,728
-371

32,574
18,504
-7,433

27,970
-23,133
1,992

40,657
-11,235
6,554

40,973
13,452
27,521

40,155
7,638
32,517

41,484
7,928
33,556

27,853
6,619
21,234

43,538
11,822
31,761

36,855
5,831
31,024

18,351
6,745
11,606

41,484
7,928
33,556

52,719
18,111
34,608

MEMO

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

1. Components may not sum to totals because of rounding.
2. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act also moved two
social security trust funds (federal old-age survivors insurance and federal
disability insurance trust fund) off-budget. The Postal Service is included as an
off-budget item in the Monthly Treasury Statement beginning in 1990.
3. Includes special drawing rights (SDRs); reserve position on the U.S. quota




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

Federal Finance

All

1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Source or type

Fiscal
year
1990

Fiscal
year
1991

1991

1990
H2

HI

H2

HI

Sept.

Oct.

Nov.

RECEIPTS

1,031,308

1 All sources
2 Individual income taxes, net
3 Withheld
Presidential Election Campaign Fund
4
5 Nonwithheld
6
Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions2
11
Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts
14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts

1,054,260

470,276

548,861

503,123

540,504

109,345

78,068

73,194

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

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

218,706
193,296
3
33,303
7,898

243,087
190,219
30
117,675
64,838

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

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

47,979
30,758
0
19,145
1,924

39,332
37,291
0
3,725
1,684

31,987
32,448
0
1,743
2,205

110,017
16,510

113,599
15,513

52,269
6,842

58,830
8,326

54,044
7,603

58,903
7,904

19,514
934

3,613
2,442

2.411
895

380,047

3%,011

162,574

210,476

178,468

214,303

34,042

28,435

31,502

167,224

199,727

33,439

27,022

28,835

353,891

370,526

152,407

195,269

21,795
21,635
4,522

25,457
20,922
4,563

1,947
7,909
2,260

19,017
12,929
2,278

2,638
8,9%
2,249

22,150
12,2%
2,279

3,119
234
370

0
971
443

0
2,293
374

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

42,430
15,921
11,138
22,847

16,799
8,667
4,451
13,651

18,153
8,096
6,442
12,106

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

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

4,038
1,322
939
2,446

3,640
1,607
923
2,%2

4,200
1.412
984
1,593

1,251,776

1,322,989

587,394

640,867

647,218

631,737

116,174

114,045

118,660

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

272,514
16,167
15,946
1,750
18,708
14,864

149,613
5,971
7,091
1,449
9,183
4,132

152,733
6,770
6,974

149,497
8,943

7,343
7,450

979
9,933
6,878

122,089
7,592
7,4%
816
8,324
7,684

21,929
1,026
1,365
-573
1,597
227

23,792
1,842
1,562
640
3,179
1,615

25,794
1,836
1,293
667
1,829
2,291

67,160
29,485
8,498

75,639
31,531
7,432

22,295
14,982
4,879

38,672
13,754
3,987

37,491

3,939

17,992
14,748
3,552

20,097
2,764
616

29
2,891
802

2,099
2,882
664

38,497

41,479

18,663

19,537

18,988

21,234

3,086

3,983

3,581

7,031
30,884
12,189

7,194
32,659
13,695

7,283
32,186
15,778

1,322
966
1,181
15,838
-5,369

3,086
1,129
2,056
16,847
-2,956

4,060
1,124
1,303
16,557
-2,566

OUTLAYS

18 All types
19
20
21
22
23
24

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

25
26
27
28

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

1,216

8,081

16,218

29 Health
30 Social security and medicare
31 Income security

57,716
346,383
147,314

71,183
373,495
171,618

25,339
162,322
67,950

29,488
175,997
78,475

31,424
176,353
75,948

35,608
190,247
88,778

32
33
34
35
36

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

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

14,864
4,909
4,760
87,927
-18,935

15,217
4,868
4,916
91,155
-17,688

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

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

Veterans benefits and services
Administration of justice
General government
Net interest6
i
Undistributed offsetting receipts

1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.




5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf, U.S. government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.

A28

DomesticNonfinancialStatistics • February 1992

1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION 1
Billions of dollars, end of month
1989

1990

1991

Item
Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

2881.1

2975.5

3081.9

3175.5

3266.1

3397.3

3491.7

3562.9

3598.9

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

2857.4
2180.7
676.7

2953.0
2245.2
707.8

3052.0
2329.3
722.7

3143.8
2368.8
775.0

3233.3
2437.6
795.8

3364.8
2536.6
828.3

3465.2
2598.4
866.8

3538.0
2642.9
895.1

3665.3
n.a.
n.a.

23.7
23.5
.1

22.5
22.4
.1

29.9
29.8
.2

31.7
31.6
.2

32.8
32.6
.2

32.5
32.4
.1

26.5
26.4
.1

25.0
24.8
.1

5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit

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

2829.8

2921.7

2988.9

3077.0

3161.2

3281.7

3377.1

3450.3

3569.3

9 Public debt securities
10 Other debt2

2829.5
.3

2921.4
.3

2988.6
.3

3076.6
.4

3160.9
.4

3281.3
.4

3376.7
.4

3449.8
.4

3569.0
.3

11 MEMO: Statutory debt limit

2870.0

3122.7

3122.7

3122.7

3195.0

4145.0

4145.0

4145.0

4145.0

1. Components may not sum to totals because of rounding.
2. Consists of guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District

1.41 GROSS PUBLIC DEBT OF U.S. TREASURY

of Columbia stadium bonds.
SOURCES. Treasury Bulletin and Monthly Statement of the Public Debt of the
United States.

Types and Ownership 1

Billions of dollars, end of period
1990
Type and holder

1987

1988

1989

1991

1990
Q4

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

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

By holder5
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19
Money market funds
20
Insurance companies
21
Other companies
22
State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25
Foreign and international6
26
Other miscellaneous investors

Q2

Q3

2431.7

2684.4

2953.0

3364.8

3364.8

3465.2

3538.0

3665.3

2428.9
1724.7
389.5
1037.9
282.5
704.2
139.3
4.0
4.0
.0
99.2
461.3
2.8

2663.1
1821.3
414.0
1083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
21.3

2931.8
1945.4
430.6
1151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2

3362.0
2195.8
527.4
1265.2
388.2
1166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8

3362.0
2195.8
527.4
1265.2
388.2
1166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8

3441.4
2227.9
533.3
1280.4
399.3
1213.5
159.4
42.8
42.8
.0
127.7
853.1
23.8

3516.1
2268.1
521.5
1320.3
411.2
1248.0
161.0
42.1
42.1
.0
131.3
883.2
21.9

3662.8
2390.7
564.6
1387.7
423.4
1272.1
158.1
41.6
41.6
.0
133.5
908.4
2.5

477.6
222.6
n.a.
201.5
14.6
104.9
84.6
284.6

589.2
238.4
n.a.
193.8
11.8
107.3
87.1
313.6

707.8
228.4
n.a.
174.8
14.9
130.1
93.4
338.7

828.3
259.8
n.a.
188.2
45.4
149.7
108.9
329.6

828.3
259.8
n.a.
188.2
45.4
149.7
108.9
329.6

866.8
247.3
n.a.
194.8
65.7
149.2
114.9
329.3

895.1
255.1
n.a.
200.0
55.5
152.0
130.8
329.0

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

101.1
71.3
299.7
569.1

109.6
79.2
362.2
593.4

117.7
98.7
392.9
654.6

126.2
107.6
425.1
807.6

126.2
107.6
425.1
807.6

129.7
108.6
430.3
838.1

133.2
110.3
441.6
845.5

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

1. Components may not sum to totals because of rounding.
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




Q1

funds are actual holdings; data for other groups are Treasury estimates.
6. Consists of investments of foreign balances and international accounts in the
United States.
7. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.

Federal Finance All
1.42 U.S. GOVERNMENT SECURITIES DEALERS

Transactions 1

Millions of dollars, daily averages, par value
1991, week ending

1991
Item
Aug.

Sept.

Oct.

Oct. 2

Oct. 9

Oct. 16

Oct. 23

Oct. 30

Nov. 6

Nov. 13

Nov. 20

Nov. 27

IMMEDIATE TRANSACTIONS 2

1
2
3
4
5
6
7
8
9
10

11
12
13
14
15
16

By type of security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed securities
Pass-throughs
All others
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed

33,421

31,075

35,137

34,310

35,891

32,143

32,270

41,013

32,939

36,867

43,054

33,172

43,814
32,184
17,292
17,076

36,102
28,216
13,490
13,580

37,973
35,346
16,120
15,732

38,802
33,414
14,265
14,071

36,533
37,857
15,842
15,902

31,117
32,910
13,898
16,287

38,517
34,330
16,091
14,888

43,925
37,930
18,244
15,822

45,321
30,990
21,859
19,192

40,130
33,303
24,781
27,845

40,957
33,703
18,278
17,930

43,682
35,448
13,000
12,646

4,380
666
649

4,381
674
601

4,429
563
720

4,995
759
634

3,794
534
490

4,539
431
780

4,256
609
888

5,087
563
686

3,503
738
1,061

4,090
737
943

3,977
683
698

4,624
527
618

10,345
2,022

12,321
2,314

11,947r
2,657r

11,532
2,772

11,763r
2,149

11,851
3,091

12,067
2,546

12,543
2,831

10,604
2,489

14,232
3,336

16,805
2,752

15,129
3,249

88,207

74,769

87,563

81,282

87,282

77,700

86,372

99,807

95,580

100,895

97,438

87,085

1,432
5,988

1,957
7,867

1,224
5,756

1,542
7,960

1,237
10,429

1,251
8,865

1,424
5,506

1,457
6,736

1,583
6,818r

1,677
6,368

1,281
6,667r

1,695
7,141

55,580

47,696

52,745

53,580

54,743

48,655

49,724

57,128

54,721

62,031

56,484

50,863

4,272
6,862

4,200
7,899

4,129
7,787r

4,711
7,936

3,538
7,245

4,055
7,800

4,321
8,625

4,378
7,507

4,078
7,336

4,228
9,609

4,122
9,128

4,518
9,513

5,004

3,616

3,051

2,803

2,879

2,572

3,153

3,810

2,498

4,714

4,770

2,851

1,426
529
1,145
9,267

996
541
881
8,235

1,327
82 l r
941
9,300

868
673
690
7,862

810
708
815
8,049

1,673
1,023
925
9,901

1,478
785
1,054
10,090

1,332
758
1,041
9,757

2,329
1,171
1,079
9,199

1,451
646
1,434
12,835

1,429
764
1,384
10,724

1,667
890
1,101
9,707

41
51
12

45
51
33

88
37
24

45
210
17

27
34
7

5
26
10

164
14
12

181
10
74

60
12
8

30
24
11

142
83
72

139
140
142

11,939
1,742

11,134
2,012

12,172
2,337r

9,623
2,837

12,713
2,620

14,294
1,956

12,425
1,935

10,945
2,737

8,836
1,840

15,672
1,205

13,419
2,483

12,541
1,525

4,977
162
487
2,792

1,725
340
337
2,551

1,016
411
382
2,213

1,371
1,008
310
2,471

1,252
220
553
1,602

811
205
403
2,396

915
475
325
2,027

886
346
263
2,334

1,302
1,206
453
4,168

1,353
668
578
4,140

726
488
862
4,247

693
319
174
1,962

379

603

0

1,444

692

509

382

222

296

585

371

127

FUTURE AND FORWARD
TRANSACTIONS 4

By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
Less than 3.5 years
18
19 3.5 to 7.5 years
7.5 to 15 years
20
21
15 years or more
Federal agency securities
Debt, maturing in
22
Less than 3.5 years
3.5 to 7.5 years
23
7.5 years or more
24
Mortgage-backed
Pass-throughs
25
26
Others
OPTION TRANSACTIONS5

27
28
29
30
31

By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only securities (IOs),
and principal only securities (POs).




4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, the term "n.a." refers to data that are not
published because of insufficient activity.
Data formerly shown under option transactions for U.S. Treasury securities,
bills; Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs are no longer available because of insufficient activity.

A30
1.43

DomesticNonfinancialStatistics • February 1992
U.S. G O V E R N M E N T SECURITIES DEALERS

Positions and Financing 1

Millions of dollars
1991

1991, week ending

Item
Aug.

Sept.

Oct.

Sept. 25

Oct. 2

Oct. 9

Oct. 16

Oct. 23

Oct. 30

Nov. 6

Nov. 13

Nov. 20

Positions2
NET IMMEDIATE TRANSACTIONS3

By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2 Less than 3.5 years
3 3.5 to 7.5 years
4 7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, maturing in
6
Less than 3.5 years
7
3.5 to 7.5 years
8
7.5 years or more
Mortgage-backed securities
9 Pass-throughs
10 All others
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers acceptances

15,391

15,937

15,720r

21,374

15,848

13,836

13,013

18,827

16,581

19,828

16,398

15,573

1,488
2,988
-4,055
-13,686

4,092
589
-4,912
-12,134

6,434r
-2,979 r
-3,659 r
-8,142 r

7,184
1,308
-5,304
-11,624

7,838
-3,439
-3,726
-9,650

6,483
-1,950
-3,484
-7,331

4,967
-1,803
-2,856
-7,732

9,058
-5,109
-4,268
-8,447

4,256
-2,462
-4,322
-7,919

10,430
-6,208
-1,467
-13,093

9,382
-8,067
-4,034
-9,280

5,765
-10,225
-3,466
-3,637

5,726
1,853
5,036

4,762
1,883
5,082

4,032r
1,926r
5,033r

5,194
1,817
5,078

3,615
1,774
5,155

3,743
1,908
5,158

4,665
1,943
5,106

5,061
1,853
4,827

2,877
2,026
5,043

3,332
2,034
4,762

3,994
2,127
4,319

4,653
2,349
4,195

31,145
11,274

29,377
12,611

25,712r
14,41r

28,865
13,572

16,851
14,413

24,405
13,349

28,460
15,825

28,443
14,143

23,981
14,299

26,339
14,610

30,512
13,735

35,559
15,918

3,115
6,300
1,319

3,020
5,912
1,575

3,355r
6,48 r
l,495r

3,014
5,572
1,489

3,320
5,955
1,339

2,825
5,462
1,488

3,485
7,108
1,696

3,346
6,080
1,140

3,849
7,381
1,692

2,838
6,792
1,542

3,456
7,204
1,676

3,481
5,404
1,331

-12,840

-7,828

-8,523

-8,445

-5,909

-7,549

-9,161

-8,621

-9,506

-8,532

-10,164

-12,389

984
-1,113
-2,316
-5,214

1,615
-868
-1,892
-5,582

l,195r
-l,553 r
-l,061 r
-3,551 r

1,602
-1,241
-1,502
-5,442

1,790
-952
-2,081
-5,275

1,291
-766
-1,430
-4,689

1,071
-1,924
-856
-4,103

967
-2,019
-437
-2,344

1,384
-1,677
-1,429
-3,148

463
-1,551
345
455

1,005
-1,356
-712
-275

86
-1,994
-1,005
-4,383

-41
68
29

-41
-1
-26

35r
-18 r

-55
-58
-92

54
5
-11

-64
-102
-56

21
-121
-2

101
-52
-37

80
-2
15

20
63
11

54
-59
0

-1
28
30

FUTURE AND FORWARD TRANSACTIONS5

14
15
16
17
18
19
20
21
22
23
24

By type of deliverable security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed securities
Pass-throughs
All others
Certificates of deposit

-18,722 -18,899 -15,336 r -18,369
-8,804 -13,466 -20,329 -17,278 -12,342 -13,903 -18,225 -21,511
1,934
1,994
l,275r
12
2,582
1,693
491
2,707
1,657
1,667
1,988
1,878
r
-102,587 -128,658 -153,645 -140,293 -148,460 -158,034 -151,897 -151,431 -152,339 -170,176 -164,723 -184,690
Financing6

Reverse repurchase agreements
25 Overnight and continuing
26 Term

194,528
244,421

189,584
247,564

182,835r
251,079r

172,721
255,320

185,101
232,936

183,560
252,760

190,921
245,959

173,955
257,128

182,466
252,322

181,381
260,401

180,831
270,775

193,464
243,308

Repurchase agreements
27 Overnight and continuing
28 Term

306,936
224,357

296,224
227,932

287,307r
234,937r

284,569
244,141

291,072
207,237

286,352
232,550

294,489
228,455

283,271
243,006

284,866
242,167

281,537
245,312

275,784
260,551

300,749
237,837

Securities borrowed
29 Overnight and continuing
30 Term

62,248
22,568

61,963
22,150

59,052r
23,690"^

61,686
24,294

57,729
22,191

58,548
25,008

57,695
24,023

59,490
21,843

60,827
24,119

59,239
25,057

60,457
25,908

63,251
27,247

Securities loaned
31 Overnight and continuing
32 Term

7,995
791

8,725
1,416

9,304r
742r

10,264
3,900

8,640
804

8,346
816

10,135
817

9,620
865

9,327
479

9,137
554

9,256
511

10,129
632

Collateralized loans
33 Overnight and continuing

8,588

8,520

8,547

8,632

8,238

8,311

9,343

8,370

8,051

9,941

10,805

9,642

MEMO: Matched book7
Reverse repurchases
34 Overnight and continuing
35 Term

129,272
198,749

127,648
197,099

124,310r
205,104r

117,395
205,340

123,571
189,269

125,865
205,723

130,327
199,229

117,562
209,371

123,866
209,807

123,131
210,788

122,262
214,846

134,835
197,454

Repurchases
36 Overnight and continuing
37 Term

159,234
166,164

149,490
169,284

143,450r
181,206T

135,033
178,568

148,434
158,834

145,581
180,559

144,501
175,047

135,493
186,484

147,118
187,542

141,217
192,282

133,231
200,9%

151,640
179,090

1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data. Data for positions and
financing are averages of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest only (IOs), and principal
only (POs).
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
FRASERdelayed delivery. All futures positions are included regardless of time to
specify

Digitized for


delivery. Forward contracts for U.S. Treasury securities and for federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed securities are included when the
time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day .
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or types of collateralization.
NOTE. Data for future and forward commercial paper and bankers' acceptances
and term financing of collateralized loans are no longer available because of
insufficient activity.

Federal Finance All
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
1991
Agency

1987

1988

1989

1990
May

1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department1
Export-Import Bank2'
4
5 Federal Housing Administration
6 Government National Mortgage Association participation
certificates
7 Postal Service6
8 Tennessee Valley Authority
United States Railway Association
9
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation11
18 Resolution Funding Corporation12

20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6

Other Lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

Aug.

Sept.

381,498

411,805

434,668

432,306

429,179

432,587

437,892'

436,139

37,981
13
11,978
183

35,668
8
11,033
150

35,664
7
10,985
328

42,159
7
11,376
393

41,031
7

40,380
7
11,244
300

40,923r
7
11,244
315

42,409
7

407

40,591
7
11,244
428

1,615
6,103
18,089
0

0
6,142
18,335
0

0
6,445
17,899
0

0
6,948
23,435
0

0
6,651
22,780
0

0
6,651
22,261
0

0

22,208
0

0
6,621
22,745r
0

0
8,420
22,378
0

303,405
115,727
17,645
97,057
55,275
16,503

375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522

392,509
117,895
30,941
123,403
53,590
34,194
8,170

391,275
108,981
29,016

0
0

345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0

23,055

51,485
35,560
8,170
1,261
29,9%

388,588
105,775
28,836
126,606
51,712
36,232
8,170
1,261
29,9%

392,207
106,397
29,559r
128,764
51,318r
36,742
8,17c
1,261
29,9%

3%,%9r
107,469'
31,650r
128,589
52,056'
37,778
8,170
1,261
29,9%

393,730
106,510
31,502
127,460
52,010
36,821
8,170
1,261
29,9%

152,417

142,850

134,873

179,083

182,582

185,129

186,752

188,920

194,234

11,972
5,853
4,940
16,709
0

11,027
5,892
4,910
16,955
0

10,979
6,195
4,880
16,519
0

11,370
6,698
4,850
14,055
0

11,180

6,401
4,850
13,400
0

11,238
6,401
4,850

11,238
6,401
4,850

12,881

12,828

0

0

11,238
6,401
4,850
12,373
0

11,262
8,200
4,850
11,875
0

59,674
21,191
32,078

58,4%
19,246
26,324

53,311
19,265
23,724

52,324
18,890
70,8%

52,669
18,878
75,204

52,254
18,894
78,611

51,334
18,832
81,269

51,334
18,846
83,878

50,694
18,597
88,756

1,200

1. Consists of mortgages assumed by the Defense Department between 1957
and 1%3 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget after 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 1%9 by the Government
National Mortgage Association acting as trustee for the Fanners Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is




July

341,386

MEMO

19 Federal Financing Bank debt13

June

1,261

11,186

126,806

6,621

11,268

336

shown on line 22.
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.

A32

DomesticNonfinancialStatistics • February 1992

1.45 NEW SECURITY ISSUES

Tax-Exempt State and Local Governments

Millions of dollars
1991
Type of issue or issuer,
or use

1988

1989

1990
Apr.

1 All issues, new and refunding1

May

June

July

Aug.

Sept.

Oct.

Nov.

114,522

113,646

120,339

10,916

14,753

13,804

11,629

15,744

13,240

11,357

17,734

By type of issue
2 General obligation
3 Revenue

30,312
84,210

35,774
77,873

39,610
81,295

3,771
7,145

4,946
9,807

4,442
9,362

3,900
7,729

5,919
9,825

5,253
7,987

3,088
8,269

6,510
11,224

By Type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township

8,830
74,409
31,193

11,819
71,022
30,805

15,149
72,661
32,510

1,199
6,604
3,113

1,890
9,549
3,314

1,529
5,057
7,218

650
7,320
3,659

2,328
8,890
4,526

3,371
6,272
3,597

7,195
605
3,557

1,171
10,817
5,746

7 Issues for new capital, total

79,665

84,062

103,235

6,919

11,191

10,008

9,513

12,164

9,586

8,%7

13,495

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

15,021
6,825
8,4%
19,027
5,624
24,672

15,133
6,870
11,427
16,703
5,036
28,894

17,042
11,650
11,739
23,099
6,117
34,607

2,001
1,305
n.a.
n.a.
n.a.
n.a.

2,462
1,642
n.a.
n.a.
n.a.
n.a.

2,684
1,829
n.a.
n.a.
n.a.
n.a.

2,214
621
n.a.
n.a.
n.a.
n.a.

1,826
1,498
n.a.
n.a.
n.a.
n.a.

1,244
1,249
n.a.
n.a.
n.a.
n.a.

1,524
1,476
n.a.
n.a.
n.a.
n.a.

1,297
2,682
1,915
2,621
349
4,631

8
9
10
11
12
13

1. Par amounts of long-term issues based on date of sale.
2. Since 1986, has included school districts.

1.46 NEW SECURITY ISSUES

SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data1
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.

U.S. Corporations

Millions of dollars
1991
Type of issue, offering,
or issuer

1988

1989

1990
Mar.

1 All issues'
2 Bonds

2

410,898

379,535

Apr.

June

May

July

Aug.

Sept.

Oct.

339,551

36,451r

34,058r

37,480r

31,938r

23,070r

36,056r

32,087r

n.a.

r

r

r

26,320'

20,388

r

r

26,666r

n.a.

353,097

321,664

299,313

32,502

202,215
127,704
23,178

181,393
117,420
22,851

189,271
86,988
23,054

29,999"^
n.a.
2,503

24,888r
n.a.
3,857

27,231r
n.a.
2,830

23,899r
n.a.
2,421

18,833r
n.a.
1,555

27,456r
n.a.
1,870

23,770r
n.a.
2,897

24,000
n.a.
2,300

70,306
62,794
10,275
20,834
5,593
183,294

76,656
49,744
10,032
18,688
8,461
158,083

53,110
40,019
12,706
17,521
6,664
169,287

7,240
l,764r
992
506
988
21,012r

7,613
2,%l r
502
2,115
845
14,7^

6,609
UHT
665
2,682
337
18,559r

4,238
l,773 r
567
1,706
1,838
16,198r

3,827
UOC
697
1,420
715
12,230^

8,240
l,388r
959
1,947
668
16,124r

6,873
l,012 r
231
1,370
408
16,773

4,347
n.a.
n.a.
n.a.
n.a.
15,727

12 Stocks2

57,802

57,870

40,165

3,949

5,313

7,418

5,618

2,682

6,730

5,421

8,864

By type of offering
13 Public preferred
14 Common
15 Private placement3

6,544
35,911
15,346

6,194
26,030
25,647

3,998
19,443
16,736

1,233
2,716
n.a.

543
4,771
n.a.

1,392
6,027
n.a.

1,731
3,887
n.a.

203
2,479
n.a.

1,952
4,778
n.a.

666
4,755
n.a.

3,527
5,337
n.a.

7,608
8,449
1,535
1,898
515
37,798

9,308
7,446
1,929
3,090
1,904
34,028

5,649
10,171
369
416
3,822
19,738

564
1,096
249
354
0
1,686

1,7%
1,521
416
71
0
1,510

2,291
1,563
277
573
0
2,714

1,909
851
0
471
295
2,091

685
1,427
18
143
46
350

3,167
2,050
56
150
8
1,298

1,842
858
0
55
0
2,666

3,623
2,095
16
320
25
2,622

By type of offering
3 Public, domestic
4 Private placement, domestic3
5 Sold abroad
6
7
8
9
10
11

16
17
18
19
20
21

By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.




28,745

30,062

29,326

2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and, before 1989, the U.S. Securities and Exchange
Commission.

Securities Market and Corporate Finance
1.47 OPEN-END INVESTMENT COMPANIES

A33

Net Sales and Assets

Millions of dollars
1991
Item1

1989

1990
Mar.

Apr.

May

June

July

Aug.

Sept. r

Oct.

1 Sales of own shares 2

306,445

345,780

31,597

40,356

36,719

33,922

39,329

38,014

37,316

45,220

3 Net sales 3

272,165
34,280

289,573
56,207

25,372
6,226

32,895
7,461

26,972
9,747

27,629
6,293

28,767
10,562

28,128
9,886

26,319
10,997

27,957
17,263

4 Assets4

553,871

570,744

632,052

647,053

671,852

661,643

690,486

712,782

730,426

755,332

44,780
509,091

48,638
522,106

52,895
579,154

52,982
594,071

55,450
616,402

55,057
606,586

55,293
635,193

52,791
659,992

53,884
676,543

59,842
695,490

5

5 Cash
6 Other

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 underwritmgs of new
companies.

1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of dividends. Excludes reinvestment of capital gains
distributions.
3. Does not includes sales or redemptions resulting from transfers of shares
into or out of money market mutual funds within the same fund family.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990R

1989
1988R

Account

1989R

1991R

1990R
Q4R

1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits

Q1

Q2

Q3

Q4

Q1

Q2

Q3

365.0
347.5
137.0
210.5
115.3
95.2

319.0
332.3
135.3
197.0
133.7
63.3

334.7
332.8
129.8
203.0
130.7
72.3

340.2
336.6
137.6
199.1
132.3
66.7

339.8
331.6
137.9
193.7
132.5
61.2

299.8
335.1
138.8
196.3
133.8
62.5

296.1
326.1
127.1
199.0
136.2
62.8

302.1
309.1
119.4
189.7
137.8
51.9

303.5
306.2
123.5
182.7
136.7
46.1

306.1
318.2
128.6
189.6
138. R
51.5

n.a.
n.a.

7 Inventory valuation
8 Capital consumption adjustment

351.7
344.5
138.0
206.6
127.9
78.7
n.a.
n.a.

n.a.
n.a.

-13.5
15.4

-6.6
10.2

3.8
4.4

-32.6
-2.7

-21.2
-8.8

6.7
-13.6

9.9
-12.6

-4.8 R
-7.3 R

SOURCE. Survey of Current Business (U.S. Department of Commerce).

1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990
Industry

1990

1991

1991

1992

19921
Q2

Q3

Q4

Q1

Q2

Q3

Q4

Ql'

1 Total nonfarm business

532.61

529.97

558.60

534.55

534.11

530.13

535.50

524.57

527.86

531.96

563.31

Manufacturing
2 Durable goods industries
3 Nondurable goods industries

82.58
110.04

77.04
107.27

79.38
104.68

84.15
110.87

82.48
111.57

79.03
110.69

81.24
109.90

79.69
107.66

74.51
102.54

72.74
108.98

80.58
107.52

9.88

10.06

9.50

9.77

9.97

10.12

9.89

10.09

10.09

10.15

10.58

6.40
8.87
6.20

5.84
9.84
6.50

6.78
12.34
7.12

6.67
9.37
5.90

5.66
9.55
5.87

6.81
7.54
6.82

5.59
11.18
6.48

6.27
10.10
6.68

6.50
9.81
6.52

5.02
8.27
6.32

5.52
12.88
6.41

44.10
23.11
241.43

43.56
22.42
247.44

47.34
24.10
267.35

42.83
21.80
243.18

43.80
23.88
241.32

45.88
24.36
238.87

43.36
23.68
244.19

42.87
21.71
239.50

43.09
23.38
251.42

44.90
20.92
254.66

48.54
22.98
268.28

Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2

1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and




insurance, personal and business services, and communication.
SOURCE. Survey of Current Business (U.S. Department of Commerce).

A34

DomesticNonfinancialStatistics • February 1992

1.51 DOMESTIC FINANCE COMPANIES

Assets and Liabilities

Billions of dollars, end of period; not seasonally adjusted
1989
Account

1987

1988

1990

1991

1989
Q4

Q1

Q2

Q3

Q4

Q1

Q2

ASSETS

Accounts receivable, gross1
Consumer
Business
Real estate

388.1
141.1
207.4
39.5

426.2
146.2
236.5
43.5

445.7
140.8
256.0
48.9

445.7
140.8
256.0
48.9

452.8
137.9
262.9
52.1

468.8
138.6
274.8
55.4

474.0
140.9
275.4
57.7

486.7
136.0
290.8
59.9

478.9
131.6
290.0
57.3

487.9
133.9
295.5
58.5

45.3
6.8

50.0
7.3

52.0
7.7

52.0
7.7

51.9
7.9

54.3
8.2

55.1
8.6

56.6
9.2

57.0
10.3

58.7
10.8

7 Accounts receivable, net
8 All other

336.0
58.3

368.9
72.4

386.1
91.6

386.1
91.6

393.0
92.5

406.3
95.5

410.3
102.8

420.9
99.6

411.6
103.4

418.4
106.1

9 Total assets

394.2

441.3

477.6

477.6

485.5

501.9

513.1

520.6

515.0

524.5

16.4
128.4

15.4
142.0

14.5
149.5

14.5
149.5

13.9
152.9

15.8
152.4

15.6
148.6

19.4
152.7

22.0
141.2

22.7
140.6

28.0
137.1
n.a.
n.a.
52.8
31.5

n.a.
n.a.
50.6
137.9
59.8
35.6

n.a.
n.a.
63.8
147.8
62.6
39.4

n.a.
n.a.
63.8
147.8
62.6
39.4

n.a.
n.a.
70.5
145.7
61.7
40.7

n.a.
n.a.
72.8
153.0
66.1
41.8

n.a.
n.a.
82.0
156.6
68.7
41.6

n.a.
n.a.
82.7
157.0
66.0
42.8

n.a.
n.a.
77.8
162.4
68.0
43.7

n.a.
n.a.
81.7
164.2
72.2
43.0

394.2

441.3

477.6

477.6

485.5

501.9

513.1

520.6

515.0

524.5

1
2
3
4

5 LESS: Reserves for unearned income
Reserves for losses
6

LIABILITIES AND CAPITAL

10 Bank loans
11 Commercial paper
Debt
Other short-term
Long-term
Due to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

12
13
14
15
16
17

18 Total liabilities and capital
1. Excludes pools of securitized assets.

1.52 DOMESTIC FINANCE COMPANIES

Business Credit Outstanding and Net Change 1

Millions of dollars, end of period; seasonally adjusted, except as noted
1991
Type of credit
May

June

July

Aug.

Sept.

Oct.

234,891

258,957

292,638

297,171

298,228

300,161

305,024

307,599

310,876

37,210
28,185
n.a.

39,479
29,627
698

38,110
31,784
951

36,005
32,690
737

35,390
32,189
707

35,491
32,194
793

34,665
33,146
833

34,119
34,822
797

34,167
33,989
769

32,953
5,971
9,357
n.a.

33,814
6,928
9,985
0

32,283
11,569
9,126
2,950

30,055
11,000
8,620
2,855

29,305
10,427
8,851
2,805

29,454
11,344
8,807
2,843

30,637
10,631
8,712
3,508

30,072
10,594
8,695
4,053

31,831
11,075
8,407
4,458

Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets 2

24,693
57,658
n.a.

26,804
68,240
1,247

39,129
75,626
1,849

40,738
84,126
1,700

41,603
83,961
1,725

43,024
84,311
1,750

44,628
86,145
1,679

45,387
86,732
1,844

45,837
87,701
1,803

12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit

17,687
21,176

18,511
23,623

22,475
26,784

21,772
26,873

24,040
27,225

23,125
27,025

23,366
27,073

23,204
27,279

23,295
27,544

1 Total
Retail financing of installment sales
2 Automotive
3 Equipment
4 Pools of securitized assets
5
6
7
8

Wholesale
Automotive
Equipment
All other
Pools of securitized assets

Net change (during period)
1 Total
Retail financing of installment sales
2 Automotive
3 Equipment
4 Pools of securitized assets
5
6
7
8

Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2

Leasing
9 Automotive
10 Equipment
11 Pools of securitized assets
12 Loans on commercial accounts receivable and factored
commercial accounts receivable
13 All other business credit

 in this table also appear in the Board's G.20 (422)
1. Data
release. For ordering address, see inside front cover.


28,899

24,066

33,681

2,601

1,057

1,933

4,862

2,576

3,277

1,071
3,111
n.a.

2,269
1,442
-26

-1,369
2,157
253

-647
656
-40

-615
-501
-30

100
4
86

-825
952
40

-547
1,676
-36

48
-833
-28

2,883
393
1,028
n.a.

861
957
628
0

-1,532
4,641
-859
2,950

-11
63
-47
-50

-750
-573
231
-50

149
917
-44
38

1,183
-713
-95
665

-564
-37
-17
545

1,759
481
-289
405

2,596
14,166
n.a.

2,111
10,581
526

12,325
7,386
602

1,031
1,377
-65

865
-165
25

1,421
350
25

1,604
1,834
-71

759
587
165

450
969
-41

-483
4,135

825
2,446

3,964
3,161

506
-173

2,268
352

-914
-199

240
47

-162
207

91
264

monthly statistical

2. Data on pools of securitized assets are not seasonally adjusted,

Real Estate

A35

1.53 MORTGAGE MARKETS Conventional Mortgages on New Homes
Millions of dollars, except as noted
1991
Item
May

June

July

Aug.

Sept.

Oct.

Nov.

Terms and yields in primary and secondary markets
PRIMARY MARKETS
1

1
2
3
4
5
6

Terms
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)

Yield (percent per year)
1 OTS series3
8 HUD series4

150.0
110.5
75.5
28.0
2.19
8.81

159.6
117.0
74.5
28.1
2.06
9.76

153.2
112.4
74.8
27.3
1.93
9.68

146.8
109.2
75.2
26.1
1.54
9.26

166.7
121.9
74.2
26.8
1.69
9.18

165.1
121.6
75.0
27.0
1.85
9.12

159.0
115.7
74.6
27.1
1.74
9.19

157.8
114.3
73.3
25.9
1.86
9.00

153.4
115.0
76.5
27.5
1.61
8.78

162.6
116.0
73.5
26.4
1.53
8.38

9.18
10.30

10.11
10.21

10.01
10.08

9.52
9.46

9.46
9.60

9.43
9.46

9.48
9.22

9.30
8.88

9.04
8.76

8.64
n.a.

10.49
9.83

10.24
9.71

10.17
9.51

9.62
8.65

9.71
9.04

9.59
8.93

9.14
8.69

9.06
8.60

8.71
8.34

n.a.
8.09

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

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

101,329
19,762
81,567

104,974
19,640
85,335

113,329
21,028
92,302

121,798
21,609
100,189

122,806
21,474
101,332

123,770
21,511
102,259

124,230
21,529
102,701

124,954
21,636
103,318

125,884
21,576
104,308

126,624
21,547
105,077

Mortgage transactions (during period)
14 Purchases

23,110

22,518

23,959

4,450

3,145

3,183

3,069

3,032

3,408

3,299

Mortgage commitments (during period)1
15 Issued8
16 To sell9

n.a.
n.a.

n.a.
n.a.

23,689
5,270

3,506
1,066

3,032
841

2,975
1,374

3,453
1,051

3,196
762

4,122
917

3,806
569

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

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

FEDERAL HOME LOAN MORTGAGE CORPORATION

Mortgage holdings (end of period f
17 Total
18
FHA/VA-insured
19 Conventional

15,105
620
14,485

20,105
590
19,516

20,419
547
19,871

24,525
491
21,843

23,649
486
23,164

24,061
481
23,581

24,217
475
23,742

23,906
471
23,435

Mortgage transactions (during period)
20 Purchases
21 Sales

44,077
39,780

78,588
73,446

75,517
73,817

8,562
7,692

10,052
10,694

8,649
8,057

9,191
8,803

9,155
9,305

n.a.
7,433

n.a.
8,517

Mortgage commitments (during period)10
22 Contracted

66,026

88,519

102,401

11,334

9,008

8,890

12,430

7,468

n.a.

n.a.

1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Housing Finance
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at
the end of ten years; from Office of Thrift Supervision (OTS).
4. Average contract rates on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD).
5. Average gross yields on thirty-year, minimum-downpayment, first mortgages insured by the Federal Housing Administration (FHA) for immediate
delivery in the private secondary market. Based on transactions on first day of
subsequent month. Large monthly movements in average yields may reflect
market adjustments to changes in maximum permissible contract rates.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage




Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly
figures are averages of Friday figures from the Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to one- to four-family loan commitments accepted in the Federal National
Mortgage Association's (FNMA's) free market auction system, and through the
FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, while the
corresponding data for FNMA exclude swap activity.

A36

DomesticNonfinancialStatistics • February 1992

1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1990
Type of holder and property

1987

1988

1991

1989
Q2

1 All holders
2
3
4
5

By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm

By type of holder
6 Major financial institutions
7
Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12
Savings institutions
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17
Life insurance companies
18
One- to four-family
Multifamily
19
Commercial
20
21
Farm
Finance companies4

Q3

Q4

Q1

Q2P

2,986,425

3,270,118

3,556,370

3,760,480

3,816,690

3,857,665

3,876,700

3,925,086

1,962,958
278,899
657,036
87,532

2,201,231
291,405
692,236
85,247

2,429,689
303,416
739,240
84,025

2,619,522
301,789
755,212
83,957

2,669,9%
305,903
756,507
84,284

2,709,998
307,378
756,303
83,987

2,730,239
307,932
754,879
83,650

2,781,005
308,457
751,751
83,873

1,665,291
592,449
275,613
32,756
269,648
14,432
860,467
602,408
106,359
150,943
757
212,375
13,226
22,524
166,722
9,903

1,831,472
674,003
334,367
33,912
290,254
15,470
924,606
671,722
110,775
141,433
676
232,863
11,164
24,560
187,549
9,590

1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604

1,940,366
814,598
431,115
38,420
327,930
17,133
860,903
642,110
97,359
120,866
568
264,865
12,740
28,027
214,024
10,075

1,933,303
831,193
445,882
37,900
330,086
17,326
836,047
626,297
94,790
114,430
530
266,063
12,773
28,100
214,585
10,605

1,913,322
844,359
456,010
37,092
334,026
17,231
801,628
600,154
91,806
109,168
500
267,335
12,052
29,406
215,121
10,756

1,895,544
855,889
463,7%
37,993
336,606
17,493
776,551
583,694
88,743
103,647
468
263,105
11,480
28,847
212,018
10,760

1,884,850
870,797
476,744
37,930
338,057
18,066
754,834
570,151
85,688
98,557
439
259,218
11,280
28,314
208,838
10,787

29,716

37,846

45,476

47,104

49,784

48,777

48,187

48,972

23 Federal and related agencies
24
Government National Mortgage Association
25
One- to four-family
26
Multifamily
^
Farmers Home Administration5
27
28
One- to four-family
29
Multifamily
Commercial
30
31
Farm
32
Federal Housing and Veterans Administration
33
One- to four-family
34
Multifamily
35
Federal National Mortgage Association
36
One- to four-family
37
Multifamily
38
Federal Land Banks
39
One- to four-family
40
Farm
41
Federal Home Loan Mortgage Corporation
42
One- to four-family
Multifamily
43

192,721
444
25
419
43,051
18,169
8,044
6,603
10,235
5,574
2,557
3,017
96,649
89,666
6,983
34,131
2,008
32,123
12,872
11,430
1,442

200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348

209,498
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603

227,818
21
21
0
41,175
18,434
9,361
4,545
8,835
6,792
3,054
3,738
112,855
103,431
9,424
29,595
1,741
27,854
19,979
17,316
2,663

242,695
21
21
0
41,269
18,476
9,477
4,608
8,708
7,938
3,248
4,690
113,718
103,722
9,9%
29,441
1,766
27,675
20,508
17,810
2,697

250,761
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672

263,079
20
20
0
41,307
18,522
9,720
4,715
8,350
9,492
3,600
5,891
119,1%
108,348
10,848
29,253
1,884
27,368
22,111
19,460
2,651

275,394
20
20
0
41,430
18,521
9,898
4,750
8,261
10,210
3,729
6,480
122,806
111,560
11,246
29,086
1,936
27,150
22,312
19,655
2,658

44 Mortgage pools or trusts6
45
Government National Mortgage Association
46
One- to four-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation
49
One- to four-family
Multifamily
50
51
Federal National Mortgage Association
52
One- to four-family
Multifamily
53
Farmers Home Administration
54
55
One- to four-family
Multifamily
56
Commercial
57
58
Farm

718,297
317,555
309,806
7,749
212,634
205,977
6,657
139,960
137,988
1,972
245
121
0
63
61

811,847
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40

946,766
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33

1,024,893
385,456
374,960
10,496
295,340
287,232
8,108
263,330
254,811
8,519
72
19
0
24
30

1,062,729
394,859
384,474
10,385
301,797
293,721
8,077
281,806
273,335
8,471
70
18
0
24
29

1,106,634
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26

1,139,730
409,929
397,631
12,298
328,305
319,978
8,327
312,101
303,554
8,547
62
14
0
23
24

1,182,594
418,421
405,877
12,544
341,132
332,624
8,509
331,089
322,444
8,645
13
13
0
0
0

59 Individuals and others7
60
One- to four-family
61
Multifamily
Commercial
62
Farm
63

410,116
246,061
80,977
63,057
20,021

426,229
259,971
79,209
67,618
19,431

468,569
294,517
81,634
73,023
19,395

567,403
382,343
82,040
83,557
19,463

577,964
390,657
83,544
84,350
19,412

586,948
398,889
84,205
84,538
19,316

578,347
391,623
82,355
85,182
19,187

582,248
395,483
81,906
85,690
19,170

22

1. Based on data from various institutional and governmental sources, with
figures for some quarters estimated in part by the Federal Reserve. Multifamily
debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by institutions insured by the Federal Savings and Loan Insurance
Corporation include loans in process and other contra-assets (credit balance
accounts that must be subtracted from the corresponding gross asset categories to
yield net asset levels).




4. Assumed to be entirely loans on one- to four-family residences.
5. Securities guaranteed by the Farmers Home Administration (FmHA) sold to
the Federal Financing Bank were reallocated from FmHA mortgage pools to
FmHA mortgage holdings in 1986:4 because of accounting changes by the FmHA.
6. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated. Includes private pools, which are not shown
as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.

Consumer Installment Credit

A37

1.55 CONSUMER INSTALLMENT CREDIT Total Outstanding and Net Change 1
Millions of dollars, amounts outstanding, end of period
1991
Holder and type of credit

1989

1990
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.r

Oct.

Seasonally adjusted
1 Total

718,863

735,102

732,762

732,442

733,621

732,289

730,591

729,962

729,108

729,151

729,953

2
3
4
5

290,676
199,082
22,471
206,633

284,585
220,110
20,919
209,487

282,626
221,556
20,200
208,379

280,689
224,817
20,123
206,813

279,746
225,994
20,098
207,782

276,494
227,301
19,7%
208,697

274,4%
227,737
19,907
208,451

273,565
228,199
19,615
208,582

271,906
229,453
19,495
208,253

270,223
232,070
18,892
207,966

270,051
233,412
18,764
207,725

Automobile
Revolving
Mobile home
Other

Not seasonally adjusted
730,901

748,300

729,264

725,462

727,907

727,717

728,023

727,754

731,531

732,183

730,359

By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets

342,770
140,832
93,114
44,154
57,253
3,935
48,843

347,466
137,450
92,911
43,552
45,616
4,822
76,483

339,282
133,021
91,131
38,864
43,875
4,404
78,687

335,754
131,552
90,772
38,497
42,491
4,2%
82,100

336,425
133,462
91,413
37,817
41,707
4,357
82,726

334,746
134,045
91,549
36,782
40,764
4,507
85,324

333,442
133,903
91,924
36,702
39,827
4,591
87,634

334,273
134,120
92,017
36,392
39,012
4,712
87,228

335,662
135,509
92,843
37,2%
37,893
4,857
87,471

335,509
132,471
93,305
37,281
37,036
4,753
91,828

335,403
131,778
93,388
37,359
35,774
4,529
92,128

By major type of credit*
14 Automobile
15 Commercial banks
16 Finance companies
17 Pools of securitized assets 2

290,705
126,288
82,721
18,235

284,813
126,259
74,3%
24,537

279,913
124,745
70,287
26,872

277,798
123,411
69,233
27,755

277,508
122,710
70,500
26,875

275,582
121,631
69,689
27,085

275,018
121,605
70,304
26,039

274,222
121,319
70,444
25,609

274,190
120,577
71,571
25,071

273,358
119,730
69,853
26,812

272,130
119,276
69,364
26,803

18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
22
Pools of securitized assets 2

210,310
130,811
39,583
3,935
23,477

232,370
132,433
39,029
4,822
44,335

220,714
125,673
34,509
4,404
44,451

221,400
124,619
34,179
4,2%
46,722

222,627
126,009
33,513
4,357
47,116

224,301
126,047
32,458
4,507
49,667

225,5%
124,106
32,381
4,591
52,897

226,145
124,645
32,076
4,712
53,094

229,224
125,787
32,%2
4,857
54,017

231,281
125,524
32,964
4,753
56,438

231,615
126,235
33,055
4,529
56,290

22,240
9,112
4,716

20,666
9,763
5,252

20,362
9,730
5,330

20,030
9,632
5,328

20,052
9,565
5,573

19,721
9,386
5,595

19,875
9,652
5,652

19,639
9,552
5,669

19,468
9,534
5,700

18,996
9,614
5,300

18,847
9,600
5,358

207,646
76,559
53,395
4,571
7,131

210,451
79,011
57,801
4,523
7,611

208,275
79,134
57,404
4,355
7,364

206,234
78,092
56,991
4,318
7,603

207,720
78,141
57,388
4,304
8,735

208,113
77,682
58,761
4,324
8,572

207,534
78,079
57,947
4,321
8,698

207,748
78,757
58,007
4,316
8,525

208,649
79,764
58,238
4,334
8,383

208,548
80,641
57,318
4,317
8,578

207,767
80,292
57,056
4,304
9,035

6 Total
7
8
9
10
11
12
13

23 Mobile home
24
Commercial banks
25
Finance companies
26 Other
27
Commercial banks
28
Finance companies
29
Retailers
30 Pools of securitized assets 2

1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.




2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.

A38

DomesticNonfinancialStatistics • February 1992

1.56 TERMS OF CONSUMER INSTALLMENT CREDIT 1
Percent per year, except as noted
1991
Item

1988

1989

1990
Apr.

May

June

July

Aug.

Sept.

Oct.

INTEREST RATES

Commercial banks?
48-month new car3
24-month personal
120-month mobile home3
Credit card

10.85
14.68
13.54
17.78

12.07
15.44
14.11
18.02

11.78
15.46
14.02
18.17

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

11.28
15.16
13.80
18.22

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

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

11.06
15.24
13.73
18.24

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

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

Auto finance companies
5 New car
6 Used car

12.60
15.11

12.62
16.18

12.54
15.99

13.14
15.82

12.95
15.85

12.77
15.74

12.55
15.66

12.40
15.63

12.38
15.60

n.a.
n.a.

56.2
46.7

54.2
46.6

54.6
46.1

55.4
47.3

55.5
47.3

55.5
47.3

55.5
47.4

55.4
47.2

55.4
47.2

n.a.
n.a.

94
98

91
97

87
95

87
97

87
%

88
97

88
96

88
97

87
%

n.a.
n.a.

11,663
7,824

12,001
7,954

12,071
8,289

11,993
8,751

12,204
8,873

12,343
8,916

12,572
8,989

12,518
8,902

12,460
8,9%

n.a.
n.a.

1
2
3
4

OTHER TERMS 4

Maturity (months)
7 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
12 Used car

1. Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Data are available only for the second month of each quarter.




3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.

Flow of Funds
1.57

A39

F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data at seasonally adjusted annual rates
1989
Instrument or sector

1986

1987

1988

1989

1991

1990

1990
Q4

Ql

Q2

Q3

Q4

Ql

Q2

Nonfinancial sectors
639.3

620.2

803.4

596.9

657.7

499.3

272.5
264.4
8.2

185.0
189.6
-4.6

247.3
217.8
29.6

228.2
222.9
5.4

286.1

1.6

287.5
-1.3

328.4
329.4
-1.0

603.3

526.6

366.8

435.2

368.7

371.6

170.9

459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
144.1
50.2
39.8
11.9
42.2

379.8
30.4
73.7
275.7

298.2
20.1
49.7
228.3
212.6
6.5
9.3
.0
68.7
14.3
1.3
9.7
43.4

347.0
19.1
87.4
240.5
214.3
9.5
19.9
-3.2
88.2
44.1
7.7
-6.9
43.3

391.0
12.4
30.2
348.4
298.7
22.7
26.5
.5
165.1
30.4
16.3
69.6
48.8

309.3
24.5
68.8

275.5
30.0
32.8
212.7
184.7

216.8

316.3
218.7
33.5
73.6
-9.5
156.1
58.0
66.9
-9.3
40.5

453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
88.9
33.5
10.0
2.3
43.2

36;2
293.0
292.7
-16.3
99.2
209.7

48.8
302.2
191.0
-10.6
77.9
123.7

45.6
314.9
242.8
-7.5
65.7
184.6

29.6
285.0
211.9
50.8
159.5

17.2
254.0
95.6
2.6
13.7
79.4

16.5
291.8
126.9
8.9
35.0
83.1

377.2
162.9
6.2
45.5
111.2

25 Foreign net borrowing in United States
26
Bonds
27
Bank loans n.e.c
28
Open market paper
29
U.S. government loans

9.7
3.1
-1.0
11.5
-3.9

4.5
7.4
-3.6
2.1
-1.4

6.3
6.9
-1.8
8.7
-7.5

10.9
5.3
-.1
13.3
-7.5

23.5
-2.9
12.3
-7.5

16.9
-1.0
-4.3
22.2

30 Total domestic plus foreign

846.6

691.5

767.1

689.1

662.8

1 Total net borrowing by domestic nonfinancial sectors
By lending sector and instrument
2 U.S. government
3
Treasury securities
4
Agency issues and mortgages

215.0
214.7
.4

144.9
143.4
1.5

157.5
140.0
17.4

151.6
150.0

5 Private

621.9

542.1

465.8
22.7

6
7
8
9
10
11
12
13
14
15
16
17
18

By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other

19
20
21
22
23
24

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

126.8

218.0

16.4
42.7
-1.5
146.8
39.1
39.9
20.4
47.4

1.6

21.6

16.0

2.0

216.0

220.0
-15.5
13.4
-1.9
59.4
2.8

15.4
-6.2

47.4
17.2
257.5
94.0
-10.8

3.5
101.3

16.2

9.9
2.0
96.0
21.3
-2.5
17.3
60.0
28.1

227.3
116.2

11.7
19.6
84.8

13.5
67.1
136.3
147.1
2.7
-12.8
-.7
-45.9
2.5
-24.2
-41.7
17.5
7.6
154.0
9.4
3.1
-14.0
20.2
21.1

1.2

1.9
27.3

26.5
-4.7
15.3

.1

41.2
25.8
-1.8
23.1
-5.9

29.7

32.7
-6.9
-16.4
-7.3

-.8

-16.0

637.1

805.5

638.1

687.3

520.4

Financial sectors

31 Total net borrowing by financial sectors

285.1

300.2

247.6

205.5

202.1

187.3

190.2

170.4

180.0

267.7

102.6

95.4

By instrument
32 U.S. government-related
33
Sponsored-credit-agency securities
34
Mortgage pool securities
35
Loans from U.S. government

154.1
15.2
139.2
-.4

171.8
30.2
142.3
-.8

119.8
44.9
74.9
.0

151.0
25.2
125.8
.0

167.4
17.1
150.3
-.1

156.4
-4.7
161.1
.0

171.7
9.7
162.0
.0

184.0
17.1
166.8
.0

139.2
22.3
116.9
.0

174.6
19.5
155.5
-.5

155.8
14.5
141.3
.0

150.6
-22.4
173.0
.0

36 Private
37
Corporate bonds
38
Mortgages
39
Bank loans n.e.c
40
Open market paper
41
Loans from Federal Home Loan Banks . .

131.0
82.9
.1
4.0
24.2
19.8

128.4
78.9
.4
-3.2
27.9
24.4

127.8
51.7
.3
1.4
54.8
19.7

54.5
36.8
.0
1.8
26.9
-11.0

34.7
49.8
.3
.7
8.6
-24.7

30.9
39.6
-.4
4.2
36.3
-48.8

18.5
33.5
.1
-2.3
9.2
-22.0

-13.5
71.2
.2
-.6
-53.4
-30.9

40.8
18.0
.3
2.0
51.0
-30.5

93.1
76.7
.5
3.8
27.6
-15.5

-53.2
39.5
.1
1.0
-65.9
-27.9

-55.2
63.2
-.1
-5.8
-59.7
-52.9

By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private
45
Commercial banks
46
Bank affiliates
47
Savings and loan associations
48
Mutual savings banks
49
Finance companies
50
Real estate investment trusts (REITs)
51
Securitized credit obligation (SCO) issuers

14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0

29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1

44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5

25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8

17.0
150.3
34.7
-1.1
-27.7
-31.2
-.5
57.1
-1.9
40.1

-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2

9.7
162.0
18.5
-5.7
-8.0
-15.8
-8.3
28.2
-3.8
32.1

17.1
166.8
-13.5
-13.9
-32.1
-53.5
6.5
27.0
-2.7
55.1

22.3
116.9
40.8
-5.6
-40.4
-31.9
-4.2
97.3
-1.8
27.5

19.0
155.5
93.1
20.9
-30.2
-23.4
4.0
75.7
.6
45.6

14.5
141.3
-53.2
-22.0
-18.5
-29.5
-2.2
-9.2
-.7
28.9

-22.4
173.0
-55.2
-16.6
-7.1
-55.6
-1.4
-11.7
-.2
37.3




A40

DomesticNonfinancialStatistics • February 1992

1.57—Continued
1989
Transaction category or sector

1986

1987

1988

1989

1991

1990

1990
Q4

Q1

Q2

Q3

Q4

Q1

Q2

All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

61 MEMO: U.S. government, cash balance
Totals net of changes in U.S. government cash balances
62 Net borrowing by domestic nonflnancial sectors
63 Net borrowing by U.S. government

1,131.7

991.7

1,014.7

894.5

864.9

824.4

995.7

808.5

867.3

788.1

564.7

505.1

369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1

317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5

277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4

302.6
30.4
115.8
275.7
39.1
41.5
60.6
28.9

440.0
20.1
121.1
228.6
14.3
-.9
30.7
11.1

341.4
19.1
125.9
240.1
44.1
7.5
51.6
-5.4

419.0
12.4
96.4
348.5
30.4
7.1
62.3
19.5

412.2
24.5
165.8
216.2
2.8
13.0
-36.6
10.6

425.4
30.0
52.0
213.0
21.3
1.4
95.7
28.6

503.4
13.5
170.3
136.7
2.5
-25.1
1.2
-14.5

360.5
11.3
129.0
138.7
-23.6
25.6
-15.2
-61.6

392.4
27.5
180.5
169.8
-20.4
-64.5
-134.3
-46.0

.0

-7.9

10.4

-5.9

8.3

-7.3

22.9

-38.1

21.1

27.4

51.6

-64.3

836.9
215.0

694.9
152.8

750.4
147.1

684.1
157.5

631.0
264.2

627.6
192.4

780.5
224.4

635.0
266.3

636.6
265.1

471.9
301.0

359.8
153.1

526.9
306.1

External corporate equity funds raised in United States
64 Total net share issues
65 Mutual funds
66 All other
67 Nonflnancial corporations
68 Financial corporations
69 Foreign shares purchased in United States




86.8

10.9

-124.2

-63.7

9.6

14.9

-9.2

48.0

-24.1

23.6

108.0

173.9

159.0
-72.2
-85.0
11.6
1.2

73.9
-63.0
-75.5
14.6
-2.1

1.1
-125.3
-129.5
3.3
.9

41.3
-105.1
-124.2
2.4
16.7

61.4
-51.7
-63.0
4.3
6.9

72.4
-57.6
-79.3
4.5
17.2

47.8
-57.0
-69.0
10.3
1.7

71.0
-22.9
-48.0
1.3
23.8

46.1
-70.2
-74.0
4.8
-1.0

80.6
-56.9
-61.0
.9
3.2

87.8
20.2
-12.0
3.4
28.8

122.2
51.7
11.0
4.3
36.4

Flow of Funds
1.58

A41

DIRECT A N D INDIRECT SOURCES O F FUNDS TO CREDIT MARKETS
Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates

1986

1987

1988

1989

1990
Q4

1 Total funds advanced in credit markets to domestic
nonfinancial sectors

1991

1990

1989
Transaction category or sector

Q1

Q2

Q3

Q4

Q1

Q2

3
4
5
6
7
8
9
10

By lender
U.S. government
Sponsored credit agencies and mortgage pools
Monetary authority
Foreign

687.0

760.8

678.2

639.3

620.2

803.4

596.9

657.7

499.3

411.4

462.6

248.8

210.7

187.6

261.7

203.8

221.8

299.4

325.6

200.0

274.7

251.0

69.4
136.3
19.8
54.7

70.1
139.1
24.4
15.1

85.2
86.3
19.7
19.4

30.7
137.9
-11.0
30.0

74.4
184.1
-24.7
27.8

27.1
178.3
-48.8
47.1

4.4
197.5
-22.0
41.8

111.9
191.5
-30.9
26.8

139.1
160.8
-30.5
56.1

42.1
186.7
-15.5
-13.3

122.6
176.0
-27.9
4.0

74.4
211.4
-52.9
18.1

9.7
153.3
19.4
97.8

-7.9
169.3
24.7
62.7

-9.4
112.0
10.5
97.6

-2.4
125.3
-7.3
72.1

33.6
166.7
8.1
53.2

5.7
158.4
-4.6
44.2

37.7
187.4
-6.3
3.0

36.2
163.1
40.4
59.8

63.3
165.6
24.4
72.3

-2.7
150.8
-25.9
77.9

30.3
158.7
53.3
32.4

32.1
149.0
12.2
57.7

154.1
9.7

171.8
4.5

119.8
6.3

151.0
10.9

167.4
23.5

156.4
16.9

171.7
2.0

184.0
41.2

139.2
29.7

174.6
21.1

155.8
50.6

150.6
-53.0
309.2

Total net advances by federal agencies and foreign
By instrument
U.S. government securities
Residential mortgages
Federal Home Loan Bank advances to thrifts
Other loans and securities

836.9

280.2

2

Agency and foreign borrowing not included in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
13 Total private domestic funds advanced

720.5

614.5

676.2

652.5

568.5

589.7

755.3

522.7

501.0

495.0

343.2

14
15
16
17
18
19

300.1
22.7
89.7
115.9
212.0
19.8

247.4
49.3
66.9
120.2
155.2
24.4

192.1
49.8
91.3
161.3
201.4
19.7

271.9
30.4
66.1
96.5
176.6
-11.0

365.6
20.1
65.4
35.0
57.7
-24.7

314.3
19.1
70.6
45.5
91.5
-48.8

414.6
12.4
53.4
123.8
129.2
-22.0

300.3
24.5
82.6
13.0
71.4
-30.9

286.2
30.0
31.8
40.0
82.4
-30.5

461.4
13.5
93.8
-37.0
-52.2
-15.5

237.8
317.9
27.5
11.3
94.1
66.0
-34.5
-32.0
34.6 -151.2
-27.9
-52.9

730.0

528.4

562.3

511.1

394.6

561.9

444.8

266.4

366.7

500.4

198.1
107.6
160.1
264.2

135.4
136.8
179.7
76.6

156.3
120.4
198.7
86.9

118.7
177.3
184.3
-90.9 -153.4 -201.9
177.9
182.4
205.1
246.9
374.5
246.8

184.1
-56.6
160.0
157.3

277.1
131.0
321.8
12.9
1.7
119.9
187.3

162.8
128.4
237.1
43.7
-5.8
135.4
63.9

229.2
127.8
205.3
9.3
7.3
177.6

11.0

225.2
54.5
231.4
-9.9
-3.4
140.5
104.2

60.5
34.7
299.4
24.0
5.3
159.9
110.2

208.0
30.9
323.1
-20.6
5.0
193.9
144.7

120.2
18.5
306.1
39.9
13.1
137.9
115.2

28.4
-13.5
251.6
7.8
-13.4
211.9
45.3

60.1
40.8
265.9
103.5
18.2
144.2
.0

33.2
216.7 - 7 4 . 0
-55.2
93.1 -53.2
374.1
220.8
22.3
-55.1
43.8 -124.7
3.4
-39.2
30.1
145.6
60.1
118.8
280.2 -111.7
265.8

121.5
27.0
-19.9
52.9
9.9
51.7

214.6
86.0
61.8
23.3
15.8
27.6

241.7
129.0
53.5
-9.4
36.4
32.2

195.9
134.3
28.4
.7
5.4
27.1

208.6
148.1
-1.0
17.5
18.2
25.7

58.7
65.8
12.8
14.6
-64.6
30.1

329.0
198.0
-1.5
38.9
60.6
33.0

242.8
154.0
10.0
19.7
33.8
25.2

175.0
165.2
15.6
-74.7
16.8
52.1

87.7
75.3
-27.9
86.1
-38.4
-7.4

104.2
85.2
1.8
9.1
-7.7
15.9

162.4
156.4
13.2
57.4
-67.8
3.3

38 Deposits and currency
39
Currency
40
Checkable deposits
41
Small time and savings accounts
4?
Money market fund shares
43
Large time deposits
44
Security repurchase agreements
45
Deposits in foreign countries

297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9

179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5

232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2

241.3
11.7
1.5
100.5
85.2
23.1
14.9
4.4

90.1
22.6
.6
59.4
61.8
-46.8
-14.5
7.0

230.6
10.1
65.8
109.1
65.6
-13.4
-19.2
12.4

137.3
26.1
1.4
107.7
72.2
-26.4
-34.7
-8.9

64.3
23.0
-18.9
21.5
4.7
-1.8
22.8
12.8

95.9
32.2
13.4
59.6
110.9
-97.9
-25.8
3.6

62.9
9.1
6.4
48.9
59.3
-61.2
-20.1
20.6

236.2
46.1
31.9
101.0
128.5
-2.3
-42.4
-26.6

-41.8
5.7
-7.3
16.7
-29.8
-52.5
-1.1
26.5

46 Total of credit market instruments, deposits, and
currency

419.0

393.9

474.5

437.2

298.7

289.3

466.3

307.0

270.9

150.6

340.4

120.6

33.1
101.3
110.7

36.0
86.0
106.4

27.5
83.2
106.9

27.2
78.3
62.2

39.5
69.4
77.2

32.0
95.3
23.6

27.5
58.9
42.9

46.9
51.0
67.5

47.4
73.2
175.8

38.4
101.1
22.8

59.4
54.1
76.2

61.3
29.6
-66.9

86.8

10.9

-124.2

-63.7

9.6

14.9

-9.2

48.0

-24.1

23.6

108.0

173.9

159.0
-72.2
50.9
35.9

73.9
-63.0
32.0
-21.2

1.1
41.3
-125.3 -105.1
-2.9
17.2
-121.4 -80.9

61.4
-51.7
31.9
-22.3

72.4
-57.6
76.9
-62.1

47.8
-57.0
41.1
-50.3

71.0
-22.9
72.8
-24.8

46.1
-70.2
-48.2
24.1

80.6
-56.9
61.9
-38.3

87.8
20.2
44.0
64.1

122.2
51.7
73.4
100.6

U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances

20 Total credit market funds advanced by private financial
institutions
?1
77
73
24

By lending institution
Commercial banks
Savings institutions
Insurance and pension funds
Other financial institutions

By source of funds
25 Private domestic deposits and repurchase agreements . . .
76 Credit market borrowing
71 Other sources
78
Foreign funds
79
Treasury balances
30
Insurance and pension reserves
31 Other, net
3?
33
34
35
36
37

Private domestic nonfinancial investors
Direct lending in credit markets
U.S. government securities
State and local obligations
Corporate and foreign bonds
Open market paper
Other loans and mortgages

MEMO

47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds

185.8

91.6

101.7
134.2
15.7
56.9
132.1
-210.4 -168.6 -178.0 -154.8 -147.6
187.5
150.6
125.4
134.9
231.6
88.6
246.1
470.9
80.9
113.1

Corporate equities not included above
50
51

Mutual fund shares
Other equities
Acquisitions by financial institutions
54 Other net purchases
5?
53

NOTES BY LINE NUMBER.

1. Line 1 of table 1.57.
2. Sum of lines 3 - 6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool secunties.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
branches, plus liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking institutions in foreign banks.
29. Demand deposits and note balances at commercial banks.




30. Excludes investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by line 1.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.

A42
1.59

DomesticNonfinancialStatistics • February 1992
S U M M A R Y OF CREDIT MARKET D E B T OUTSTANDING
Billions of dollars, end of period
1989
Transaction category or sector

1986

1990

1991

1989
Q4

Q2

Q1

Q3

Q4

Q1

Q2

Nonflnancial sectors
1 Total credit market debt owed by
domestic nonflnancial sectors

7,646.3

8,343.9

9,0%.0

9,805.2

9,805.2

10,073.3

10,226.8

10,386.9

10,557.3

10,615.5

10,735.3

By lending sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages

1,815.4
1,811.7
3.6

1,960.3
1,955.2
5.2

2,117.8
2,095.2
22.6

2,269.4
2,245.2
24.2

2,269.4
2,245.2
24.2

2,360.9
2,329.3
31.6

2,401.7
2,368.8
32.9

2,470.2
2,437.6
32.6

2,568.9
2,536.5
32.4

2,624.7
2,598.4
26.4

2,667.7
2,642.9
24.8

5 Private

5,831.0

6,383.6

6,978.2

7,535.8

7,535.8

7,712.5

7,825.1

7,916.7

7,988.4

7,990.8

8,067.7

6
7
8
9
10
11
12
13
14
15
16
17
18

By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other

3,962.7
679.1
669.4
2,614.2
1,720.8
246.2
551.4
95.8
1,868.2
659.8
666.0
62.9
479.6

4,427.9
728.4
748.8
2,950.7
1,943.1
270.0
648.7
88.9
1,955.7
693.2
673.3
73.8
515.3

4,886.4
790.8
851.7
3,243.8
2,173.9
286.7
6%.4
86.8
2,091.9
743.5
713.1
85.7
549.6

5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
2,252.6
790.6
763.0
107.1
591.9

5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
2,252.6
790.6
763.0
107.1
591.9

5,451.9
822.2
933.0
3,696.7
2,558.3
304.5
750.0
83.9
2,260.6
782.3
748.5
126.0
603.7

5,533.8
827.2
950.2
3,756.4
2,619.5
300.5
752.5
84.0
2,291.3
789.4
756.1
128.7
617.1

5,608.8
837.9
958.4
3,812.6
2,670.0
304.5
753.8
84.3
2,307.9
798.7
753.6
131.8
623.8

5,669.9
841.3
975.1
3,853.4
2,710.0
306.0
753.5
84.0
2,318.5
808.9
757.4
116.9
635.4

5,709.8
842.2
995.3
3,872.3
2,730.1
306.5
752.0
83.6
2,281.0
782.3
749.0
119.9
629.9

5,787.5
847.6
1,019.1
3,920.9
2,781.0
307.1
748.9
83.9
2,281.0
784.2
740.3
118.4
637.3

19
20
21
22
23
24

By borrowing sector
State and local government
Household
Nonflnancial business
Farm
Nonfarm noncorporate
Corporate

510.1
2,5%. 1
2,724.8
156.6
997.6
1,570.6

558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6

604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5

634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8

634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8

633.8
3,654.8
3,423.9
137.3
1,208.3
2,078.3

636.9
3,726.5
3,461.7
138.7
1,208.7
2,114.3

647.1
3,790.3
3,479.4
141.6
1,209.0
2,128.7

649.1
3,847.2
3,492.2
140.5
1,209.6
2,142.1

650.2
3,853.3
3,487.3
139.3
1,205.9
2,142.1

652.8
3,911.3
3,503.6
143.0
1,204.6
2,155.9

238.3

244.6

253.9

261.5

261.5

261.7

273.0

279.4

284.9

297.2

285.1

74.9
26.9
37.4
99.1

82.3
23.3
41.2
97.7

89.2
21.5
49.9
93.2

94.5
21.4
63.0
82.6

94.5
21.4
63.0
82.6

103.3
18.9
59.3
80.2

108.4
19.3
65.1
80.2

108.9
19.8
71.5
79.3

116.1
18.5
75.3
75.0

118.9
20.4
87.0
70.9

123.0
19.5
74.0
68.6

7,884.7

8,588.5

9,349.9

10,066.8

10,066.8

10,335.0

10,499.8

10,666.3

10,842.2

10,912.8

11,020.5

25 Foreign credit market debt held in
United States
26
27
28
29

Bonds
Bank loans n.e.c
Open market paper
U.S. government loans

30 Total credit market debt owed by nonflnancial
sectors, domestic and foreign

Financial sectors
31 Total credit market debt owed by
financial sectors
32
33
34
35
36
37
38
39
40
41

By instrument
U.S. government-related
Sponsored credit-agency securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks

By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
50 Real estate investment trusts (REITs)
51 Securitized credit obligation (SCO) issuers...

1,529.8

1,836.8

2,084.4

2,322.4

2,322.4

2,359.0

2,405.5

2,448.8

2,527.7

2,540.1

2,567.3

810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6

978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1

1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8

1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8

1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8

1,288.2
378.1
905.2
5.0
1,070.8
491.7
4.0
33.2
409.1
132.9

1,330.1
381.0
944.2
5.0
1,075.4
510.0
4.0
34.8
400.3
126.3

1,367.9
384.4
978.5
5.0
1,080.9
514.4
4.1
34.9
409.6
117.9

1,418.4
393.7
1,019.9
4.9
1,109.3
533.6
4.2
36.7
417.7
117.1

1,452.2
397.0
1,050.4
4.9
1,087.9
543.0
4.2
34.8
398.8
107.0

1,485.1
389.6
1,090.7
4.9
1,082.2
559.5
4.2
35.2
388.6
94.7

278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0

308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1

353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7

378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
4%.2
10.1
184.4

378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
4%.2
10.1
184.4

383.0
905.2
1,070.8
73.2
142.0
137.1
15.4
499.2
10.9
193.1

385.9
944.2
1,075.4
71.6
134.3
125.6
16.7
509.7
10.4
206.9

389.4
978.5
1,080.9
70.7
122.9
116.2
16.2
530.9
10.2
213.8

398.5
1,019.9
1,109.3
76.3
114.8
114.0
16.7
551.8
10.6
225.2

401.8
1,050.4
1,087.9
68.1
111.7
102.8
16.4
545.9
10.6
232.4

394.4
1,090.7
1,082.2
65.9
110.3
90.8
15.8
547.0
10.8
241.7

All sectors
52 Total credit market debt, domestic and foreign..
53
54
55
56
57
58
59
60

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans




9,414.4

10,425.3

11,434.3

12,389.1

12,389.1

12,694.0

12,905.3

13,115.1

13,369.9

13,452.9

13,587.7

2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1

2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1

3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5

3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4

3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4

3,644.1
822.2
1,527.9
3,700.7
782.3
800.7
594.4
821.7

3,726.9
827.2
1,568.6
3,760.5
789.4
810.2
594.0
828.5

3,833.1
837.9
1,518.6
3,816.7
798.7
808.3
612.9
826.0

3,982.5
841.3
1,624.8
3,857.7
808.9
812.6
609.9
832.3

4,072.1
842.2
1,657.3
3,876.5
782.3
804.1
605.7
812.7

4,147.9
847.6
1,701.6
3,925.1
784.2
794.9
581.1
805.5

Flow of Funds

A43

1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, except as noted, end of period

1986

1988

1987

1991

1990

1989
Transaction category or sector

1989
04

Q1

Q2

Q3

Q4

Q1

Q2

1 Total hinds advanced in credit markets to domestic
nonfinancial sectors

7,646.3

8,343.9

9,096.0

9,805.2

9,805.2

2 Total held by federal agencies and foreign sector

1,779.4

2,006.6

2,199.7

2,379.3

2,379.3

2,423.3

2,502.6

2,584.1

2,645.8

2,698.2

2,765.3

3
4
5
6

By instrument
U.S. government securities
Residential mortgages
Federal Home Loan Bank advances to thrifts
Other loans and securities

509.8
678.5
108.6
482.4

570.9
814.1
133.1
488.6

651.5
900.4
152.8
495.1

682.1
1,038.4
141.8
517.0

682.1
1,038.4
141.8
517.0

682.7
1,081.5
132.9
526.3

714.1
1,126.5
126.3
535.8

745.6
1,171.8
117.9
548.8

763.0
1,221.0
117.1
544.7

786.3
1,260.3
107.0
544.6

808.3
1,310.0
94.7
552.2

7
8
9
10

By type of lender
U.S. government
Sponsored credit agencies and mortgage pools
Monetary authority
Foreign

255.3
835.9
205.5
482.8

240.0
1,001.0
230.1
535.5

217.6
1,113.0
240.6
628.5

207.1
1,238.2
233.3
700.6

207.1
1,238.2
233.3
700.6

217.1
1,274.8
224.4
707.0

227.4
1,315.0
237.8
722.5

242.7
1,360.5
240.8
740.2

240.6
1,403.4
241.4
760.4

248.9
1,434.8
247.3
767.2

258.2
1,471.0
253.7
782.4

Agency and foreign debt not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign

810.3
238.3

978.6
244.6

1,098.3
253.9

1,249.3
261.5

1,249.3
261.5

1,288.2
261.7

1,330.1
273.0

1,367.9
279.4

1,418.4
284.9

1,452.2
297.2

1,485.1
285.1

13 Total private domestic holdings

6,915.6

7,560.4

8,248.5

8,936.8

8,936.8

9,199.9

9,327.3

9,450.1

9,614.8

9,666.8

9,740.3

14
15
16
17
18
19

2,110.1
679.1
606.6
1,288.5
2,339.8
108.6

2,363.0
728.4
674.3
1,399.0
2,528.7
133.1

2,559.7
790.8
765.6
1,560.2
2,724.9
152.8

2,831.6
821.2
831.6
1,670.4
2,923.8
141.8

2,831.6
821.2
831.6
1,670.4
2,923.8
141.8

2,961.4
822.2
846.7
1,781.4
2,921.0
132.9

3,012.8
827.2
865.5
1,793.5
2,954.5
126.3

3,087.5
837.9
874.0
1,802.8
2,965.9
117.9

3,219.4
841.3
897.1
1,795.0
2,979.1
117.1

3,285.8
842.2
915.5
1,776.3
2,954.0
107.0

3,339.6
847.6
936.8
1,778.0
2,933.0
94.7

6,018.0

6,564.5

7,128.6

7,662.7

7,662.7

7,852.1

7,913.4

7,987.2

8,127.7

8,173.1

8,199.4

2,187.6
1,297.9
1,525.4
1,007.1

2,323.0
1,445.5
1,705.1
1,091.0

2,479.3
1,567.7
1,903.8
1,177.9

2,656.6
1,480.7
2,081.6
1,443.8

2,656.6
1,480.7
2,081.6
1,443.8

2,679.4
1,461.3
2,150.3
1,561.1

2,721.2
1,409.5
2,194.4
1,588.4

2,750.9
1,371.2
2,227.6
1,637.5

2,775.3
1,330.3
2,264.1
1,758.0

2,785.4
1,289.2
2,308.1
1,790.5

2,799.3
1,253.0
2,335.6
1,811.6

By source of funds
25 Private domestic deposits and repurchase
agreements
76 Credit market debt
77 Other sources
78
Foreign funds
79
U.S. Treasury balances
30
Insurance and pension reserves
31
Other, net

3,199.0
719.5
2,099.5
18.6
27.5
1,398.5
655.0

3,354.2
858.2
2,352.1
62.3
21.6
1,527.8
740.3

3,599.1
986.1
2,534.5
71.5
29.0
1,692.5
750.5

3,824.3
1,073.0
2,765.5
61.6
25.6
1,826.0
852.3

3,824.3
1,073.0
2,765.5
61.6
25.6
1,826.0
852.3

3,848.4
1,070.8
2,932.9
61.7
16.7
1,859.8
994.7

3,837.2
1,075.4
3,000.8
63.1
32.1
1,903.6
1,002.1

3,844.6
1,080.9
3,061.8
86.2
36.6
1,921.1
1,017.9

3,884.6
1,109.3
3,133.7
85.6
30.9
1,950.7
1,066.4

3,933.6
1,087.9
3,151.7
85.2
26.3
1,968.6
1,071.5

3,895.0
1,082.2
3,222.2
54.4
36.0
2,003.2
1,128.6

Private domestic nonfinancial investors
37 Credit market claims
33 U.S. government securities
34
State and local obligations
35
Corporate and foreign bonds
36 Open market paper
37 Other loans and mortgages

1,617.0
848.7
212.6
90.5
145.1
320.1

1,854.1
936.7
274.4
114.0
178.5
350.4

2,106.0
1,072.2
340.9
100.4
218.0
374.4

2,347.1
1,206.4
369.3
130.5
228.7
412.1

2,347.1
1,206.4
369.3
130.5
228.7
412.1

2,418.6
1,254.9
362.0
153.4
233.9
414.4

2,489.2
1,280.1
367.3
169.2
249.6
423.0

2,543.8
1,322.8
371.1
166.8
251.0
432.1

2,596.5
1,360.8
368.4
180.6
247.0
439.7

2,581.6
1,370.1
361.1
180.3
235.3
434.8

2,623.0
1,395.4
366.5
195.1
227.5
438.5

38 Deposits and currency
39 Currency
Checkable deposits
40
41
Small time and savings accounts
47, Money market fund shares
43
Large time deposits
44
Security repurchase agreements
Deposits in foreign countries
45

3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8

3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3

3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1

4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6

4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6

4,094.7
234.4
504.3
2,285.6
436.7
433.4
188.4
11.9

4,094.7
242.7
510.1
2,286.6
426.3
421.6
192.7
17.5

4,108.5
247.2
499.7
2,295.8
454.5
408.1
186.6
16.8

4,163.6
254.4
529.2
2,313.2
465.0
393.8
183.4
24.6

4,209.8
262.0
512.2
2,343.0
513.3
393.2
171.9
14.3

4,184.2

46 Total of credit market instruments, deposits, and
currency

5,027.2

5,438.0

5,938.2

6,420.7

6,420.7

6,513.3

6,586.6

6,652.3

6,760.1

6,791.4

6,807.3

22.6
103.7
501.3

23.4
98.3
597.8

23.5
96.9
700.1

23.6
93.8
762.3

23.6
93.8
762.3

23.4
90.5
768.7

23.8
90.3
785.6

24.2
89.1
826.4

24.4
86.2
846.0

24.7
84.8
852.4

25.1
83.8
836.8

3,360.6
413.5
2,947.1
974.6
2,385.9

3,325.0
460.1
2,864.9
1,039.5
2,285.5

3,619.8
478.3
3,141.6
1,176.1
2,443.7

4,378.9
555.1
3,823.8
1,492.3
2,886.6

4,378.9
555.1
3,823.8
1,492.3
2,886.6

4,166.6
550.3
3,616.3
1,434.8
2,731.8

4,333.1
587.9
3,745.2
1,542.1
2,791.0

3,765.3
547.3
3,218.0
1,301.6
2,463.6

3,982.7
579.9
3,402.8
1,417.4
2,565.3

4,562.4
643.0
3,919.3
1,663.8
2,898.6

4,596.2
681.3
3,914.9
1,677.1
2,919.1

U.S. government securities
State and local obligations
Corporate and foreign bonds
Residential mortgages
Other mortgages and loans
LESS: Federal Home Loan Bank advances

70 Total credit market claims held by private financial
institutions
71

72
7^
24

By holding institution
Commercial banks
Savings institutions
Insurance and pension funds
Other finance

MEMO

47 Public holdings as percent of total
48 Private financial intermediation (percent)
49 Total foreign funds
Corporate equities not included above
50 Total market value
51
Mutual fund shares
57 Other equities
53 Holdings by financial institutions
54 Other holdings
NOTES BY LINE NUMBER.

1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
13. Line 1 less line 2 plus lines 11 and 12. Also line 20 less line 26 plus line 32.
Also sum of lines 27 and 46 less lines 39 and 45.
18. Includes farm and commercial mortgages.
25. Line 38 less lines 39 and 45.
26. Excludes equity issues and investment company shares. Includes line 19.
28. Foreign deposits at commercial banks, plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
29. Demand deposits and note balances at commercial banks.




10,073.3 10,226.8 10,386.9 10,557.3 10,615.5 10,735.3

265.9
520.8
2,342.7
493.2
367.8
170.4
23.4

30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 13 less line 20 plus line 26.
33-37. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 37 includes mortgages.
39. Mainly an offset to line 9.
46. Sum of lines 32 and 38, or line 13 less line 27 plus lines 39 and 45.
47. Line 2 divided by lines 1 plus 12.
48. Line 20 divided by line 13.
49. Sum of lines 10 and 28.
50-52. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding can be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.

A44

Domestic Nonfinancial Statistics • February 1992

2.10 NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, except as noted
1991
Measure

1988

1989

1990
Mar.

1 Industrial production1 (1987=100)
2
3
4
5
6
7

Market groupings
(1987=100)
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

Industry groupings
8 Manufacturing

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

105.4

108.1

109.2

105.0

105.5

106.4

107.3

108.1

108.0

108.2

108.2

107.8

105.3
105.6
104.0
107.6
104.4
105.6

108.6
109.1
106.7
112.3
106.8
107.4

110.1
110.9
107.3
115.5
107.7
107.8

106.5
108.1
104.7
112.5
101.3
102.6

106.9
108.7
105.5
112.8
101.2
103.4

107.7
109.3
106.6
112.7
102.7
104.5

108.6
110.1
108.0
112.8
104.0
105.4

108.7
110.2
108.3
112.8
104.0
107.0

108.5
109.8
108.4
111.6
104.4
107.2

108.8
110.3
109.2
111.8
104.2
107.3

108.9
110.4
109.3
111.9
103.9
107.2

108.4
109.8
108.8
111.1
104.3
106.8

105.8

108.9

109.9

105.2

105.9

106.6

107.5

108.3

108.4

108.9

108.9

108.3

(1987=100)

9 Capacity utilization, manufacturing
(percent) 2

83.9

83.9

82.3

77.2

77.5

77.8

78.3

78.7

78.6

78.8

78.6

78.0

10 Construction contracts (1982=100)'

166.7

172.9

155.7

128.0

145.0

138.0

133.0

144.0

150.0

143.0

157.0

134.0

11 Nonagricultural employment, total 4
12
Goods-producing, total
Manufacturing, total
13
14
Manufacturing, production worker
15
Service-producing
16 Personal income, total
17
Wages and salary disbursements
18
Manufacturing
19
Disposable personal income 5
20 Retail sales 6

128.0
103.4
98.3
93.5
138.3
115.2
114.4
110.6
115.2
228.2

131.5
104.0
98.7
93.8
142.9
123.1
121.1
113.4
123.4
241.7

133.8
102.7
96.8
91.5
146.8
n.a.
n.a.
n.a.
n.a.
250.8

132.1
98.1
93.7
87.9
146.3
126.0
122.9
112.0
127.0
252.3

131.9
97.7
93.4
87.7
146.1
126.9
123.8
112.7
128.1
251.4

132.0
98.0
93.6
87.9
146.3
127.5
124.8
113.4
128.6
254.3

132.0
97.7
93.4
87.8
146.4
127.1
124.2
113.8
128.3
254.2

132.0
97.8
93.5
88.0
146.3
127.7
124.9
114.4
128.9
255.1

132.1
97.9
93.7
88.3
146.5
128.2
125.4
114.6
129.3
253.4

132.3
97.8
93.5
88.1
146.7
128.5
125.2
115.5
129.7
254.2

132.3
97.5
93.3
88.0
146.8
128.3
125.2
114.3
129.5
254.3

132.0
96.9
93.2
87.8
146.6
n.a.
n.a.
n.a.
n.a.
255.0

Prices1
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)

118.3
108.0

124.0
113.6

130.7
119.2

135.0
120.9

135.2
121.1

135.6
121.8

136.0
121.9

136.2
121.6

136.6
121.7

137.2
121.3

137.4
122.3

137.8
122.3

1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Co., F.W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the armed forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).




6. Based on U.S. Bureau of the Census data published in Survey of Current
Business.
7. Based on data not seasonally adjusted, as published in Monthly Labor
Review. Seasonally adjusted data for changes in the price indexes can be obtained
from the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35.

Selected Measures
2.11

A45

LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data seasonally adjusted; exceptions noted
1991
Category

1988

1989

1990
Apr.

May

June

July

Aug.

Sept.

Oct.r

Nov.

HOUSEHOLD SURVEY DATA

1 Noninstitutional population1

186,837

188,601

190,216

191,525

191,664

191,805

191,955

192,095

192,240

192,386

192,522

2 Labor force (including Armed Forces)1
3 Civilian labor force
Employment
4
Nonagricultural industries2
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force)
8 Not in labor force

123,893
121,669

126,077
123,869

126,954
124,787

127,817
125,672

127,374
125,232

127,766
125,629

127,330
125,214

127,026
124,904

127,725
125,607

127,646
125,549

127,327
125,257

111,800
3,169

114,142
3,199

114,728
3,186

114,243
3,156

113,319
3,272

113,576
3,308

113,474
3,239

113,150
3,266

113,859
3,306

113,772
3,195

113,457
3,302

6,701
5.5
62,944

6,528
5.3
62,524

6,874
5.5
63,262

8,274
6.6
63,708

8,640
6.9
64,290

8,745
7.0
64,039

8,501
6.8
64,625

8,488
6.8
65,069

8,442
6.7
64,515

8,582
6.8
64,740

8,499
6.8
65,195

105,536

108,413

110,330

108,736

108,887

108,885

108,859

108,971

109,066r

109,070

108,829

19,350
713
5,110
5,527
25,132
6,649
25,669
17,386

19,426
700
5,200
5,648
25,851
6,724
27,0%
17,769

19,064
735
5,205
5,838
26,151
6,833
28,209
18,295

18,3%
710
4,688
5,814
25,410
6,718
28,576
18,424

18,426
706
4,715
5,819
25,424
6,712
28,645
18,440

18,378
704
4,710
5,809
25,413
6,703
28,712
18,456

18,402
701
4,695
5,809
25,411
6,688
28,733
18,420

18,442
693
4,691
5,820
25,393
6,687
28,831
18,414

IS,414'
684
4,699r
5,829r
25,387r
6,692r
28,937r
18,424r

18,374
678
4,671
5,829
25,337
6,698
29,023
18,460

18,341
676
4,576
5,826
25,215
6,702
29,042
18,451

ESTABLISHMENT SURVEY DATA

9 Nonagricultural payroll employment1
10
11
12
13
14
15
16
17

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

1. Persons sixteen years of age and older. Monthly figures are based on sample
data collected during the calendar week that contains the twelfth day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received




pay for, the pay period that includes the twelfth day of the month, and exclude
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from Employment and Earnings (U.S. Department of
Labor).

A46
2.12

D o m e s t i c Nonflnancial Statistics • February 1992
O U T P U T , C A P A C I T Y , A N D CAPACITY U T I L I Z A T I O N 1
Seasonally adjusted
1991

1990

1990

1991

1990

1991

Series
Q4

Q1

Q2

Q3R

Q4

Q1

Q3

Q2

Q4

Capacity (percent of 1987 output)

Output (1987=100)

Q1

Q2

Q3R

Capacity utilization rate (percent)

1 Total industry

108.5

105.8

106.4

108.1

132.8

133.6

134.5

135.3

81.7

79.2

79.1

79.9

2 Manufacturing

109.0

106.1

106.7

108.5

135.0

136.0

136.9

137.9

80.8

78.0

77.9

78.7

Primary processing
Advanced processing

104.7
111.0

100.6
108.6

100.8
109.4

104.0
110.6

126.1
139.1

126.8
140.2

127.5
141.3

128.1
142.4

83.0
79.8

79.4
77.5

79.1
77.4

81.2
77.7

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment .

110.0
95.7
107.3
110.0
103.4
126.4
109.9
89.4

106.1
92.3
97.9
96.3
100.2
124.4
108.1
80.8

106.7
94.0
95.9
92.8
100.3
123.5
110.6
89.5

108.1
95.0
102.0
100.3
104.5
123.5
111.2
95.9

139.0
124.6
127.9
132.7
121.1
156.3
141.4
132.9

139.9
125.0
128.2
133.0
121.3
157.9
142.7
133.4

140.9
125.2
128.6
133.5
121.5
159.5
144.0
134.2

141.8
125.4
129.0
134.0
121.7
161.2
145.3
134.9

79.1
76.8
83.9
82.9
85.3
80.8
77.8
67.2

75.8
73.9
76.4
72.4
82.6
78.8
75.8
60.5

75.7
75.1
74.6
69.5
82.6
77.4
76.8
66.7

76.2
75.7
79.1
74.8
85.8
76.6
76.5
71.1

113.3

109.9

106.4

105.3

136.1

137.0

137.9

138.7

83.3

80.2

77.2

75.9

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

107.8
98.2
105.8
110.2
118.1
107.4

106.1
94.6
102.6
109.1
113.2
107.3

106.7
99.4
102.7
109.3
115.6
107.6

109.1
104.0
107.6
112.1
125.4
108.1

129.9
117.0
115.7
137.1
132.9
121.4

130.9
117.3
116.4
138.4
135.7
121.4

131.9
117.7
117.1
139.7
139.2
121.4

132.9
118.0
117.9
141.0
142.6R
121.4

83.0
84.0
91.4
80.4
88.9
88.5

81.0
80.6
88.2
78.8
83.4
88.4

80.9
84.5
87.7
78.2
83.0
88.6

82.1
88.2
91.2
79.5
87.9
89.0

103.1
108.3
111.2

102.0
106.2
109.3

101.1
109.6
114.4

101.6
110.2
115.1

114.0
127.6
123.2

113.8
128.1
123.8

114.3
128.4
124.3

114.6
128.8
124.7

90.4
84.8
90.2

89.6
82.9
88.3

88.4
85.3
92.1

88.7
85.5
92.3

Aug. r

Sept. r

Oct. r

Nov.P

3
4

20 Mining
21 Utilities
Electric
22

Previous cycle 2
High

Low

Latest cycle
High

Low

1990

Nov.

1991

Apr.

May

June

July

Capacity utilization rate (percent)
1 Total industry

89.2

72.6

87.3

71.8

81.6

78.6

79.1

79.6

80.0

79.8

79.8

79.6

79.1

2 Manufacturing

88.9

70.8

87.3

70.0

80.7

77.5

77.8

78.3

78.7

78.6

78.8

78.6

78.0

92.2
87.5

68.9
72.0

89.7
86.3

66.8
71.4

83.2
79.6

78.2
77.3

79.0
77.3

79.9
77.6

81.1
77.8

81.2
77.5

81.2
77.7

81.1
77.5

80.7
76.9

88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4

68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1

86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0

65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5

79.1
76.6
85.3
84.8
85.9
80.8
78.1
64.5

75.4
74.1
73.6
68.7
81.1
77.7
76.4
64.3

75.7
73.9
75.3
70.4
83.1
77.4
76.8
66.9

76.0
77.2
74.9
69.5
83.5
77.1
77.2
68.9

76.4
75.6
78.5
74.3
85.1
77.2
76.6
71.8

76.0
76.0
79.6
75.0
86.7
76.5
76.8
67.9

76.2
75.6
79.2
75.1
85.6
76.2
76.2
73.6

75.9
74.6
79.2
76.2
83.9
76.4
75.1
74.2

75.1
76.1
79.0
76.4
83.1
75.2
75.2
70.6

77.0

66.6

81.1

66.9

83.1

78.0

76.7

76.8

76.1

76.1

75.3

74.9

73.9

87.9
92.0
96.9
87.9
102.0
96.7

71.8
60.4
69.0
69.9
50.6
81.1

87.0
91.7
94.2
85.1
90.9
89.5

76.9
73.8
82.0
70.1
63.4
68.2

82.9
83.3
90.9
80.2
90.2
88.9

80.5
82.7
86.7
78.3
80.5
87.1

80.7
84.3
86.5
78.2
84.5
88.6

81.4
86.4
89.7
78.2
84.1
90.2

82.0
88.4
91.9
79.3
89.6
89.2

82.1
88.8
90.4
79.7
87.1
88.4

82.2
87.3
91.4
79.6
87.0
89.4

82.1
87.3
90.8
79.7

81.9
87.2
90.7
79.7

88.5

87.1

94.4
95.6
99.0

88.4
82.5
82.7

96.6
88.3
88.3

80.6
76.2
78.7

90.6
83.8
88.9

88.3
82.6
88.5

87.6
86.7
93.7

89.2
86.7
94.1

89.6
86.2
93.6

88.5
85.9
92.7

88.0
84.5
90.7

87.5
84.5
90.7

87.5
85.1
91.6

3
4
5
6
7
8
9
10
11
12.
13

14
15
16
17
18
19

Primary processing
Advanced processing
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment.
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Petroleum products

20 Mining
71 Utilities
Electric
22

1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35.




2. Monthly high, 1973; monthly low, 1975.
3. Monthly highs, 1978 through 1980; monthly lows, 1982.

Selected Measures
2.13

INDUSTRIAL PRODUCTION

A47

Indexes and Gross Value 1

Monthly data seasonally adjusted

Group

1987
proportion

1991

1990
1990
avg.
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug/

Sept.r

Oct.r

Nov.P

Index (1987 = 100)
MAJOR MARKETS
100.0

109.2

108.3

107.2

106.6

105.7

105.0

105.5

106.4

107.3

108.1

108.0

108.2

108.2

107.8

2 Products
3
Final products
4
Consumer goods, total
Durable consumer goods
5
Automotive products
6
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods..
11
Other
12
Appliances, A/C, and T V . . . .
13
Carpeting and furniture
14
Miscellaneous home goods ..
15
Nondurable consumer goods
16
Foods and tobacco
Clothing
17
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities

60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0

110.1
110.9
107.3
106.2
102.3
97.4
92.2
106.1
109.6
109.4
102.0
104.9
116.4
107.6
105.9
95.7
113.3
119.7
105.9
102.9
107.0

109.3
110.2
106.5
99.4
93.5
84.2
80.7
90.2
107.3
104.1
90.8
99.2
114.6
108.5
107.8
91.7
113.5
122.8
106.4
101.1
108.4

108.4
109.2
105.7
96.0
86.7
74.6
77.2
70.2
104.8
103.4
89.9
100.9
112.5
108.4
107.5
92.1
113.5
122.7
106.6
98.1
109.7

107.8
109.1
105.6
97.6
90.6
79.6
83.2
73.6
107.1
103.2
92.8
100.3
110.8
107.8
106.3
90.6
114.7
122.1
106.5
99.8
109.0

106.9
108.3
104.7
95.2
88.1
74.7
78.6
68.1
108.3
100.7
94.5
92.0
109.8
107.3
105.9
90.8
114.8
121.0
105.2
103.4
105.9

106.5
108.1
104.7
95.9
88.9
76.7
76.3
77.4
107.3
101.4
96.2
93.9
109.2
107.1
105.4
90.4
114.2
122.2
105.5
104.3
105.9

106.9
108.7
105.5
99.3
94.2
85.0
78.3
96.3
108.0
103.4
97.3
97.0
110.8
107.2
105.3
90.6
115.0
122.7
104.4
101.4
105.5

107.7
109.3
106.6
101.1
97.4
89.2
81.9
101.6
109.5
104.1
96.8
96.9
112.8
108.1
106.2
92.0
113.9
121.8
109.0
103.6
111.0

108.6
110.1
108.0
104.2
100.4
92.5
83.8
107.1
112.2
107.3
104.8
99.2
113.8
109.0
106.9
93.9
114.3
123.3
110.0
104.9
111.9

108.7
110.2
108.3
105.5
102.3
98.1
92.8
106.9
108.6
108.1
100.6
103.1
115.5
109.0
106.9
94.3
115.4
122.1
109.4
105.2
110.9

108.5
109.8
108.4
104.0
98.6
90.2
83.0
102.2
111.3
108.3
99.6
103.9
115.9
109.6
107.1
94.8
117.4
122.6
109.5
104.0
111.5

108.8
110.3
109.2
107.7
106.6
103.0
94.5
117.1
112.1
108.6
104.1
101.8
115.5
109.6
107.6
95.2
117.3
124.8
105.4
104.4
105.8

108.9
110.4
109.3
107.8
107.3
105.1
92.6
126.1
110.5
108.3
102.1
102.1
115.7
109.7
107.7
95.7
117.2
125.0
105.4
105.1
105.5

108.4
109.8
108.8
106.2
103.8
99.0
89.8
114.5
111.0
108.2
101.6
101.8
115.9
109.4
107.1
95.3
117.7
124.5
105.8
102.9
106.9

23
24
25
26
27
28
29
30
31
32
33

Equipment
Business equipment
Information processing and related .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured home s

20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2

115.5
123.1
127.2
149.8
115.3
129.9
96.8
118.5
97.3
109.0
90.8

115.1
122.9
128.8
149.8
115.3
126.3
83.9
117.6
96.2
109.7
87.3

113.6
121.2
127.5
148.9
112.3
123.4
75.3
118.5
95.8
107.3
83.4

113.6
121.6
130.1
155.0
111.5
124.0
79.8
115.0
94.4
106.4
83.1

112.9
120.6
131.6
157.3
109.1
120.3
75.0
112.5
94.5
108.2
77.3

112.5
120.3
131.2
155.1
109.5
120.4
76.7
110.8
93.9
107.7
79.3

112.8
121.3
131.5
155.6
109.3
124.1
84.4
112.7
92.5
105.1
83.1

112.7
121.7
131.8
155.6
109.3
125.9
87.9
113.0
91.5
101.3
86.6

112.8
121.9
130.9
154.0
109.1
128.0
90.8
114.8
91.0
103.0
90.8

112.8
122.5
131.1
156.0
109.0
131.2
96.6
114.0
90.0
97.8
86.5

111.6
121.3
130.3
153.1
108.6
126.7
86.2
114.8
89.8
86.7
90.3

111.8
122.3
130.4
152.2
108.2
132.6
99.2
114.8
89.0
80.1
86.2

111.9
122.5
131.7
156.5
106.9
133.0
101.1
115.0
88.7
79.0
86.3

111.1
121.7
132.6
157.3
104.5
130.1
96.5
115.2
87.9
78.1
87.6

34
35
36

Intermediate products, total
Construction supplies
Business supplies

14.7
6.0
8.7

107.7
105.2
109.4

106.2
101.8
109.2

106.0
101.0
109.4

103.8
97.7
108.1

102.6
96.4
106.8

101.3
94.0
106.4

101.2
94.9
105.6

102.7
95.8
107.5

104.0
97.4
108.5

104.0
96.9
109.0

104.4
96.7
109.7

104.2
96.4
109.6

103.9
95.4
109.9

104.3
95.5
110.4

37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Converted fuel materials

39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7

107.8
111.8
104.0
118.1
110.2
111.9
106.0
96.7
106.4
106.8
109.5
102.1
101.3
103.5

106.8
110.4
98.5
117.4
110.2
112.7
105.6
95.1
107.2
105.8
109.4
101.6
101.4
102.0

105.3
107.5
91.1
116.9
107.4
109.6
104.9
91.4
108.5
105.7
107.6
102.0
101.9
102.1

104.8
106.8
94.2
115.9
105.2
104.6
104.9
89.1
106.0
106.7
109.3
101.1
101.3
100.9

103.9
105.5
90.4
116.2
103.8
104.8
103.6
91.5
104.1
104.1
108.8
101.1
102.1
99.2

102.6
103.3
87.5
114.8
101.0
101.2
102.8
92.7
102.4
102.7
108.8
101.3
101.5
100.8

103.4
104.9
92.1
114.6
102.6
101.6
103.1
94.7
102.0
102.9
109.0
101.1
100.5
102.4

104.5
106.2
95.5
114.8
103.8
103.0
103.7
96.8
101.5
103.9
109.2
102.4
101.2
104.7

105.4
106.7
97.3
113.6
105.3
105.9
104.9
98.1
106.9
103.9
108.6
103.4
104.7
101.0

107.0
108.2
100.2
113.5
107.5
108.8
108.1
101.4
110.3
107.7
110.5
104.1
106.2
100.1

107.2
109.1
100.1
114.3
109.0
110.2
107.8
101.5
108.2
107.9
110.9
103.3
104.5
101.0

107.3
109.2
101.3
113.9
109.0
109.4
108.3
99.6
110.4
108.3
111.4
103.1
103.1
103.1

107.2
108.8
101.5
113.4
108.4
108.5
108.8
100.2
110.0
109.2
111.5
103.1
103.3
102.6

106.8
107.8
98.5
113.0
107.8
108.2
108.9
100.0
110.0
109.5
111.9
103.3
103.6
102.8

97.3
95.3

109.5
109.8

109.0
109.4

108.1
108.6

107.4
107.8

106.6
107.0

105.7
106.2

106.1
106.5

106.9
107.3

107.8
108.1

108.4
108.6

108.5
108.8

108.4
108.7

108.3
108.6

108.1
108.4

1 Total index

SPECIAL AGGREGATES

51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts..
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy




97.5

108.2

107.3

106.1

105.4

104.4

103.7

104.2

105.2

106.2

106.9

106.8

107.1

107.0

106.6

24.5
23.3

107.9
107.5

107.9
106.5

107.6
105.6

107.2
105.5

106.5
104.7

106.4
104.6

106.7
105.6

107.6
106.3

108.9
107.7

108.9
108.1

109.5
108.3

109.6
109.6

109.5
109.7

109.3
109.1

12.7

125.6

126.8

125.6

125.7

125.0

124.5

124.9

125.0

125.0

125.0

124.7

124.5

124.6

124.2

118.6
108.9

116.7
106.6

116.2
106.2

114.6
104.9

114.6
103.1

115.7
104.3

116.3
105.4

116.7
106.1

117.0
108.2

116.2
108.7

117.4
108.9

117.0
108.8

115.9
108.1

12.0
28.4

118.7
110.0

A48

Domestic Nonfinancial Statistics • February 1992

2.13—Continued

Group

SIC2
code

1987
proportion

1990

1991

1990
avg.
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.r

Sept.1

Oct/

Nov. p

Index (1987 = 100)
MAJOR INDUSTRIES

1 Total index.

100.0

109.2

108.3

107.2

106.6

105.7

105.0

105.5

106.4

107.3

108.1

108.0

108.2

108.2

107.8

84.4
26.7
57.7

109.9
106.3
111.6

108.9
104.9
110.8

107.5
102.9
109.5

107.0
102.0
109.3

106.1
100.8
108.5

105.2
99.0
108.0

105.9
99.6
108.9

106.6
100.7
109.3

107.5
102.1
109.9

108.3
103.7
110.5

108.4
104.1
110.3

108.9
104.3
111.0

108.9
104.3
111.0

108.3
103.9
110.3

Durable goods
24
Lumber and products . . .
25
Furniture and fixtures . . .
Clay, glass, and stone
32
products
33
Primary metals
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
Fabricated metal
34
products
35
Nonelectrical machinery.
Office and computing
357
machines
36
Electrical machinery
Transportation
37
equipment
Motor vehicles and
371
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
38
Instruments
39
Miscellaneous

47.3
2.0
1.4

111.6
101.6
105.9

109.9
95.5
102.3

107.5
93.5
102.0

107.2
94.2
99.0

106.1
91.5
94.9

105.0
91.2
95.4

106.0
92.7
98.3

106.7
92.5
98.5

107.3
96.7
99.4

108.1
94.8
100.5

107.8
95.3
101.3

108.4
94.9
101.2

108.2
93.7
101.2

107.3
95.7
100.4

2.5
3.3
1.9
.1
1.4

105.7
108.4
109.9
109.6
106.2

103.8
109.1
112.6
109.5
104.1

100.7
104.2
107.3
100.6
99.8

97.2
99.7
99.0
104.7
100.6

98.9
99.5
98.0
97.9
101.6

94.4
94.7
92.0
89.8
98.4

94.2
94.5
91.6
91.0
98.5

95.1
96.9
94.0
88.9
101.0

95.0
96.4
92.9
94.0
101.5

95.8
101.2
99.5
102.6
103.5

95.5
102.6
100.6
102.4
105.5

94.3
102.2
100.8
100.9
104.3

94.4
102.3
102.4
101.3
102.3

92.7
102.2
102.8
102.8
101.3

5.4
8.6

105.9
126.5

104.3
126.3

101.9
124.7

101.7
125.5

99.1
124.5

97.8
123.1

98.0
123.5

99.1
123.6

99.8
123.4

100.9
123.9

101.4
123.3

101.8
123.2

101.7
124.0

100.9
122.4

2.5
8.6

149.8
111.4

149.8
110.4

148.9
108.7

155.0
107.6

157.3
108.2

155.1
108.6

155.6
109.7

155.6
110.6

154.0
111.5

156.0
111.0

153.0
111.5

152.2
111.0

156.5
109.7

157.3
110.2

Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing . .
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .

2 Manufacturing
3 Primary processing . .
4 Advanced processing

20

23
24
25
26
27
28
29
30
31
32
33

34 Mining
35 Metal
36 Coal
37 Oil and gas extraction
38 Stone and earth minerals .
39 Utilities...
40 Electric.
41 Gas . . . .

9.8

105.5

100.1

96.6

97.6

95.5

95.0

97.2

98.2

99.7

101.3

99.0

102.2

102.4

99.6

4.7

96.8

85.8

78.5

83.0

79.4

79.8

86.2

89.8

92.5

96.7

91.6

99.4

100.4

95.7

2.3

96.6

83.7

74.9

80.1

75.3

76.6

84.0

88.2

91.2

97.3

89.1

101.7

103.2

97.7

5.1
3.3
1.2

113.3
116.8
120.0

113.1
118.1
122.5

112.9
117.3
119.1

110.8
119.0
116.1

110.0
119.3
114.6

108.8
118.4
115.3

107.2
118.6
117.5

105.8
118.2
118.7

106.1
117.3
119.8

105.4
116.5
121.6

105.6
116.9
123.2

104.7
118.2
121.9

104.3
118.0
120.9

103.2
118.3
120.7

20
21
22
23
26
27
28
29

37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3

107.8
107.6
98.6
100.8
98.8
105.3
111.9
110.3
108.2

107.7
109.6
99.0
97.4
95.5
105.1
112.4
110.0
107.8

107.4
109.1
101.1
96.1
94.9
105.4
112.8
109.9
105.6

106.8
108.3
100.0
94.0
92.9
104.2
112.1
110.1
104.7

106.0
107.6
100.1
94.3
93.1
102.2
110.9
109.1
108.8

105.4
107.4
98.2
95.4
92.5
101.3
110.4
108.2
108.5

105.9
107.6
97.6
97.2
93.2
101.3
110.7
109.0
105.7

106.5
107.8
98.7
99.2
95.2
101.3
110.6
109.2
107.5

107.6
108.6
99.4
101.7
96.2
105.3
111.2
109.6
109.6

108.6
108.3
102.6
104.2
97.8
108.1
111.9
111.5
108.3

109.0
108.7
103.1
104.7
98.3
106.5
112.3
112.3
107.3

109.5
109.3
102.7
103.2
98.3
108.0
113.1
112.6
108.6

109.7
109.3
102.2
103.2
98.9
107.5
113.9
113.1
107.4

109.6
109.2
99.6
103.2
98.6
107.6
114.2
113.5
105.7

30
31

3.0
.3

110.2
100.0

109.6
89.9

106.9
92.6

108.8
89.6

106.1
90.8

104.4
91.5

106.6
90.0

109.2
89.5

110.5
90.9

110.1
91.0

112.6
87.1

113.2
86.2

113.2
83.8

112.6
84.8

10
11,12
13
14

7.9
.3
1.2
5.7
.7

102.6
153.1
113.2
95.5
119.5

103.3
153.4
112.9
97.3
113.5

103.4
162.0
110.6
96.7
118.9

101.7
143.1
108.4
96.0
119.2

102.9
148.0
112.8
97.2
112.0

101.5
147.6
109.9
96.4
108.0

100.9
145.7
105.9
96.6
107.0

100.2
148.0
103.4
96.0
107.5

102.1
157.0
110.2
96.9
106.4

102.7
153.0
116.0
96.4
107.8

101.3
155.5
110.8
95.7
107.0

100.8
153.1
110.1
95.2
107.3

100.3
153.6
107.9
95.1
105.2

100.3
152.0
108.7
95.1
105.1

491.3PT
492,3PT

7.6
6.0
1.6

108.0
110.8
97.3

106.9
109.6
97.0

108.8
111.8
97.6

107.6
110.4
97.5

104.6
107.8
92.8

106.4
109.8
93.6

105.9
109.8
91.6

111.4
116.4
92.8

111.5
117.1
90.7

110.9
116.6
89.7

110.7
115.6
92.4

108.9
113.3
93.0

109.0
113.4
92.7

109.9
114.6
92.6

79.8

110.7

110.3

109.1

108.4

107.6

106.7

107.1

107.6

108.3

109.0

109.3

109.4

109.3

109.0

82.0

108.7

107.7

106.2

105.6

104.5

103.7

104.4

105.1

106.1

106.9

107.0

107.6

107.4

106.8

SPECIAL AGGREGATES

42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines

Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKETS

44 Products, total

1734.8

45 Final
46 Consumer goods
47 Equipment
48 Intermediate

1350.9 1,497.7 1,470.8 1,450.8 1,459.6 1,452.8 1,455.6 1,464.6 1,478.1 1,490.5 1,496.1 1,484.5 1,500.1 1,508.7 1,490.9
882.9 865.2 857.6 857.9 852.7
833.4
857.4 862.9 874.4 884.2 888.3 882.7 896.6 900.4 890.4
517.5
614.8 605.6 593.2 601.7 600.1
598.2 601.7 603.7
606.2 607.8 601.8 603.5 608.3
600.5
413.7 412.0 408.7 400.8 395.6 389.8 388.7
384.0
397.6 400.1
399.2 401.0 399.6 399.0 400.2

1,911.4 1,882.8

1,859.4 1,860.4 1,848.4 1,845.4 1,853.3 1,875.7 1,890.5 1,895.3 1,885.5 1,899.8 1,907.7 1,891.1

1. Data in this table also appear in the Board's G.17 (419) weekly statistical
release. For ordering address see inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989




Developments and Historical Revision, Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Standard industrial classification.

Selected Measures
2.14

A49

HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates, except as noted
1991

Item

1988

1989

1990

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug/

Sept/

Oct.

953
769
184
1,056
883
173
649
455
194
1,054
821
233
178

982
782
200
1,017
861
156
632
453
179
1,192
864
328
172

1,028
7%
232
1,089
891
198
635
455
180
1,036
857
179
172

Private residential real estate activity (thousands of units, except as noted)
NEW UNITS

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

Price of units sold
of dollars)2
16 Median
17 Average

...

1,339
932
407
1,376
1,003
373
850
535
315
1,423
1,026
3%
198

1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188

802
611
191
847
648
199
717
461
256
1,125
841
284
168

876
695
181
992
788
204
709
457
252
1,0%
838
258
157

892
689
203
907
742
165
680
442
238
1,190
881
309
157

913
742
171
977
801
176
674
443
231
1,089
821
268
175

966
760
206
983
831
152
665
443
222
1,070
800
270
174

999
780
219
1,034
869
165
655
446
209
1,105
815
290
173

675
368

650
363

535
318

414
315

488
313

495
308

506
303

507
299

518
295

507 R
2%

528
292

502
291

513
288

120.4
148.3

122.3
149.0

117.9
148.6

119.9
147.8

122.5
156.4

121.0
150.8

116.0
145.4

119.0
145.9

120.0
148.2 R

120.0
141.5

123.6
150.7

122.9
149.4

3,594

Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period

1,456
994
462
1,488
1,081
407
919
570
350
1,530
1,085
445
218

113.3
139.0

Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period . .
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped

1,005
794
211
1,049
879
170
652
451
201
1,069
806
263
175

3,439

3,316

2,900

3,160

3,220

3,310

3,540

3,590

3,320

3,250

3,120

3,150

89.2
112.5

92.9
118.0

95.2
118.3

95.6
123.0

94.0
119.7

98.2
125.2

100.3
128.9

101.1
130.6

102.0
130.5

103.6
132.2

102.2
131.0

99.7
127.7

99.2
126.5

(thousands

EXISTING UNITS (one-family)

18 Number sold
Price of units sold
of dollars)
19 Median
20 Average

(thousands

Value of new construction 3 (millions of dollars)

CONSTRUCTION

21 Total put in place

432,222

443,720

446,433

406,502

410,072

401,883

407,050

399,030

398,189

399,577 R

402,423

407,468

411,451

22 Private
23
Residential
24
Nonresidential, total
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other
29 Public

337,440
198,101
139,339
16,451
64,025
19,038
39,825
94,783

345,416
196,551
148,865
20,412
65,4%
19,683
43,274
98,303

337,776
182,856
154,920
23,849
62,866
21,591
46,614
108,655

303,932
161,793
142,139
22,433
53,848
20,621
45,237
102,570

300,495
155,622
144,873
23,249
54,023
20,850
46,751
109,577

293,262
152,447
140,815
23,089
51,766
20,628
45,332
108,621

299,044
151,836
147,208
24,301
54,824
21,928
46,155
108,007

291,048
154,567
136,481
20,683
50,220
20,858
44,720
107,982

290,871
158,282
132,589
20,868
47,5%
20,429
43,6%
107,318

288,597r
157,776
130,821r
20,948
46,964
20,684
42,225 r
110,981

292,448
162,738
129,710
20,418
46,298
19,968
43,026
109,976

2%,298
166,751
129,547
20,302
45,631
20,586
43,028
111,170

296,095
168,196
127,899
21,322
43,586
20,081
42,910
115,356

3,579
29,227
4,739
57,238

3,520
28,171
4,989
61,623

2,734
30,595
4,718
70,608

1,868
25,560
6,434
68,708

1,723
30,699
5,529
71,626

1,866
29,9%
4,586
72,173

1,828
28,591
5,833
71,755

1,918
29,246
5,123
71,695

1,864
28,776
5,807
70,871

1,776
28,744
8,170
72,291

1,783
30,068
5,144
72,981

2,261
28,773
4,351
75,785

1,868
29,350
5,763
78,375

30
31
32
33

Military
Highway
Conservation and development.
Other

1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable
with data for previous periods because of changes by the Bureau of the Census in
its estimating techniques. For a description of these changes, see Construction
Reports (C-30-76-5), issued by the Bureau in July 1976.




SOURCE. Bureau of the Census estimates for all series except (1) mobile homes,
which are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 17,000 jurisdictions
beginning in 1984.

A50
2.15

Domestic Nonfinancial Statistics • February 1992
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Item

Change from 3 months earlier
(annual rate)
1990

1990
Nov.

Change from 1 month earlier

1991

Index
level,
Nov.
1991

1991

1991
Nov.
Mar.

Dec.

June

Sept.

July

Aug.

Sept.

Oct.

Nov.

CONSUMER PRICES2

(1982-84=100)
1 AU items

6.3

3.0

4.9

2.4

3.0

3.3

.2

.2

.4

.1

.4

137.8

2 Food
3 Energy items
4 All items less food and energy
5
Commodities
Services
6

5.6

1.6

3.9

2.4

5.1

-3.2

-.6

-.3

.1

-.1

.6

136.2

19.0
5.3
3.1
6.2

-8.2
4.5
4.4
4.5

18.0
3.8
2.3
4.8

-30.7
6.8
7.9
6.4

-1.2
3.2
3.2
3.0

1.6
4.6
4.1
4.6

-.4
.4
.4
.3

-.2
.4
.5
.3

1.0
.4
.2
.5

.2
.1
-.1
.3

.8
.3
.4
.3

101.8
144.4
130.9
152.1

7.0
4.1
38.5
3.9
3.2

-.5
-1.5
-12.6
3.4
2.6

5.1
1.3
21.1
3.4
3.3

-3.5
1.0
-35.5
5.9
4.6

.7
-.6
.0
1.2
1.6

.3
-6.3
5.3
2.4
1.0

-.2
-.7
-1.3
,4r

.2
-.4
1.8
,2r

.1
-.5
.8
.0
.2

.7
.4
1.7
.6
.4

.2
-.1
.0
.4
.2

122.3
123.1
78.2
135.3
127.9

5.6
1.8

-3.3
-.9

4.2
2.3

-9.8
-2.3

-.7
-1.0

.4
-.3

-.3
-.1

.4
.0

.1
.0

-.1
-.1

.1
.1

114.3
121.1

-1.3
35.4
.2

-6.4
-22.1
-8.8

-7.3
-18.8
-18.1

.0
-54.0
-4.7

-12.5
.5
-13.3

-8.1
.0
-4.0

-1.5 r
1.6r
-.3r

1.5
-2.7
-.9

.1
3.9
-.5

-.2
1.2
-1.8

101.6
81.1
122.8

PRODUCER PRICES

(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10 Other consumer goods
11
Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
15 Energy
16 Other

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a




.R

-2.0"
I.R

,2r

rental-equivalence measure of homeownership.
SOURCE. Bureau of Labor Statistics.

Selected Measures
2.16

A51

GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991

1990
1988

Account

1989

1990
Q3

Q4

Q1

Q2

Q3

GROSS DOMESTIC PRODUCT
4,900.4

2
3
4
5

12
13

By major type of
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures

..

5,652.6

5,709.2

3,517.9
459.8
1,146.9
1,911.2

3.742.6
465.9
1.217.7
2,059.0

3,785.2
467.1
1,228.4
2,089.6

3,812.0
451.9
1,246.4
2,113.6

3,827.7
440.7
1,246.3
2,140.7

3.868.5
440.0
1,252.9
2.175.6

3,916.4
452.9
1,257.4
2,206.1

837.6
801.6
570.7
193.1
377.6
230.9

802.6
802.7
587.0
198.7
388.3
215.7

821.8
807.7
596.3
201.7
394.7
211.4

750.9
787.4
585.2
191.2
394.0
202.2

709.3
748.4
560.0
184.0
375.9
188.4

708.8
745.8
554.6
180.0
374.7
191.2

740.9
744.5
546.8
169.0
377.8
197.7

36.0
35.5

.0
-2.0

14.1
9.6

-36.5
-28.9

-39.2
-35.0

-37.1
-34.0

-3.6
-3.2

-82.9
504.9
587.8

-74.4
550.4
624.8

-82.5
548.7
631.2

-76.6
572.6
649.2

-36.8
565.9
602.7

-17.2
589.8
607.0

-37.3
597.0
634.3

918.7
387.0
531.7

971.4
401.4
570.0

1,042.9
424.9
618.0

1,046.0
424.7
621.4

1,071.2
434.5
636.7

1,088.8
451.5
637.3

1,092.5
452.1
640.4

1,089.1
444.9
644.2

5.208.1
2,062.1
892.9
1.169.2
2,634.7
511.3

5,513.8
2,167.6
934.7
1,233.0
2,834.0
512.2

5.556.5
2.181.6
939.3
1,242.3
2,864.8
510.1

5,594.0
2,194.5
927.2
1,267.3
2,905.5
494.0

5,628.2
2,208.6
916.4
1,292.1
2,951.7
467.9

5.689.6
2,223.2
939.5
1.283.7
2,999.0
467.4

5,712.8
2,214.1
929.4
1,284.7
3,035.1
463.5

16.2
24.3
-8.1

36.0
26.9
9.1

.0
-7.0
7.0

14.1
14.5
-.4

-36.5
-29.4
-7.1

-39.2
-43.5
4.3

-37.1
-33.5
-3.6

-3.6
-9.2
5.6

4,718.6

4,836.9

4,884.9

4,903.3

4,855.1

4,824.0

4,840.7

4,862.7

4,002.6

17 Government purchases of goods and services
18
Federal
19
State and local

5,589.0

4,884.2
1.925.8
835.6
1,090.1
2.460.9
497.5

14 Net exports of goods and services
15
Exports
16
Imports

5,557.5

-108.0
444.2
552.2

Change in business inventories
Nonfarm

5,570.5

16.2
27.5

6 Gross private domestic investment
Fixed investment
7
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures

5,513.8

793.6
777.4
545.4
182.0
363.4
232.0

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

5,244.0

3.296.1
437.1
1,073.8
1.785.2

1 Total

4,244.7

4,459.6

4,475.2

4,506.8

4,489.8

4,530.8

4,559.8

2,921.3
2,443.0
449.0
1,994.0
478.3
247.8
230.5

3,101.3
2,585.8
478.6
2,107.2
515.5
261.7
253.7

3,290.3
2,738.9
514.0
2,224.9
551.4
277.3
274.0

3,325.3
2,769.9
517.7
2,252.2
555.4
279.1
276.3

3,340.0
2,778.3
525.4
2,253.0
561.6
281.7
279.9

3,342.9
2,771.1
536.0
2,235.1
571.8
287.5
284.2

3,377.4
2,800.2
540.1
2,260.1
577.2
288.7
288.5

3.405.3
2.822.4
541.8
2,280.6
582.9
290.2
292.8

324.3
293.4
30.9

347.0
305.5
41.4

373.2
330.7
42.5

368.8
336.5
32.4

373.9
332.7
41.2

364.2
331.4
32.8

380.0
340.4
39.6

382.5
350.5
32.0

product

26 Change in business inventories
27
Durable goods
28
Nondurable goods
MEMO
29 Total GDP in 1987 dollars
NATIONAL INCOME
30 Total
31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises . .
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors' income 1
39
Business and professional 1
40
Farm 1

4.3

-7.9

-12.9

-10.4

-9.5

-11.9

-11.7

-14.2

42 Corporate profits
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment

365.0
347.5
-27.3
44.7

351.7
344.5
-17.5
24.7

319.0
332.3
-14.2
.8

299.8
335.1
-32.6
-2.7

296.1
326.1
-21.2
-8.8

302.1
309.1
6.7
-13.6

303.5
306.2
9.9
-12.6

306.1
318.2
-4.8
-7.3

46 N e t interest

387.7

452.6

490.1

491.8

506.4

492.6

481.6

480.1

41 Rental income of persons 2
1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (U.S. Department of Commerce).

A52
2.17

Domestic Nonfinancial Statistics • February 1992
PERSONAL INCOME A N D SAVING
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1990
Account

1988

1989

1991

1990
Q3

Q4

Q1

Q2

Q3

PERSONAL INCOME AND SAVING

1 Total personal income

4075.9

4380.2

4679.8

4719.3

4764.7

4768.0

4821.1

4853.3

2 Wage and salary disbursements
Commodity-producing industries
3
4
Manufacturing
5
Distributive industries
6
Service industries
Government and government enterprises
7

2443.0
699.1
524.5
575.3
719.6
449.0

2585.8
723.8
542.1
607.5
775.9
478.6

2738.9
745.4
555.8
634.6
845.0
514.0

2769.8
751.2
560.4
640.4
860.6
517.7

2778.2
745.2
557.3
639.0
868.8
525.2

2770.9
733.4
549.3
635.1
866.5
535.8

2800.6
735.2
552.3
642.0
883.0
540.5

2822.4
742.3
559.9
644.0
894.4
541.8

230.5
324.3
293.4
30.9
4.3
108.4
583.2
576.7
300.4

253.7
347.0
305.5
41.4
-7.9
119.8
669.0
624.4
325.1

274.0
373.2
330.7
42.5
-12.9
124.8
721.3
684.9
352.0

276.3
368.8
336.5
32.4
-10.4
124.8
729.1
687.7
353.0

279.9
373.9
332.7
41.2
-9.5
127.0
736.9
705.8
358.4

284.2
364.2
331.4
32.8
-11.9
128.7
730.1
737.2
373.1

288.5
380.0
340.4
39.6
-11.7
127.4
721.8
751.5
377.2

292.8
382.5
350.5
32.0
-14.2
128.7
716.7
763.7
381.7

194.5

211.7

224.3

226.7

227.5

235.4

237.0

239.3

4075.9

4380.2

4679.8

4719.3

4764.7

4768.0

4821.1

4853.3

8
9
10
11
12
13
14
15
16
17

Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance

18 EQUALS: Personal income

527.7

591.7

621.0

627.5

627.2

617.1

613.6

615.1

20 EQUALS: Disposable personal income

19

LESS: Personal tax and nontax payments

3548.2

3788.6

4058.8

4091.8

4137.5

4151.0

4207.5

4238.2

21

3392.0

3621.6

3852.2

3895.3

3921.7

3937.5

3977.9

4024.9

156.2

166.9

206.6

1%.5

215.8

213.4

229.6

213.3

4908.2
32%. 1
3548.2

5248.2
3517.9
3788.6

5524.5
3742.6
4058.8

5576.8
3785.2
4091.8

5583.2
3812.0
4137.5

5611.7
3827.7
4151.0

5660.6
3868.5
4207.5

5720.1
3916.4
4238.2

4.4

4.4

5.1

4.8

5.2

5.1

5.5

5.0

27 Gross saving

704.5

744.2

711.8

698.3

678.3

747.7

713.9

698.0

28
29
30
31

802.8
156.2
112.6
-27.3

827.3
166.9
85.8
-17.5

851.3
206.6
49.9
-14.2

821.9
1%.5
27.2
-32.6

853.9
215.8
32.8
-21.2

873.8
213.4
45.0
6.7

893.0
229.6
43.4
9.9

876.4
213.3
39.4
-4.8

327.6
206.4

350.5
224.0

365.5
229.3

367.5
230.8

372.7
232.7

380.1
235.3

383.2
236.8

384.6
239.1

-98.3
-136.6
38.4

-83.0
-124.2
41.1

-139.5
-165.3
25.7

-123.6
-149.7
26.1

-175.6
-193.6
18.0

-126il
-146.4
20.4

-179.1
-206.7
27.6

-178.4
-210.2
31.8

676.1

741.5

719.9

726.5

680.4

765.8

730.4

720.0

793.6
-117.5

837.6
-%.O

802.6
-82.8

821.8
-95.3

750.9
-70.4

709.3
56.5

708.8
21.7

740.9
-20.9

-28.4

-2.7

8.1

28.2

2.1

18.0

16.5

22.0

LESS: Personal outlays

22 EQUALS: Personal saving
MEMO

Per capita (1982 dollars)
23 Gross national product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING

Gross private saving
Personal saving
Undistributed corporate profits'
Corporate inventory valuation adjustment

Capital consumption
32 Corporate
33 Noncorporate

allowances

34 Government surplus, or deficit ( - ) , national income and
product accounts
35
Federal
36
State and local
37 Gross investment
38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. Survey of Current Business (U.S. Department of Commerce).

Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS

A53

Summary

Millions of dollars; quarterly data seasonally adjusted, except as noted 1
1991

1990
1989

Item credits or debits

Q3

Q4

Ql

Q2r

Q3P

-23,402
-25,136
-27,728
100,580
-128,308
-2,243
6,133
9,716
-1,201
-8,079

10,501
15,507
-18,394
100,900
-119,294
-2,329
4,883
9,402
-1,316
18,255

3,028
4,593
-15,391
104,245
-119,636
-1,484
2,345
10,429
-1,315
8,444

-10,459
-15,593
-20,486
104,532
-125,018
-1,168
2,502
10,630
-1,267
-670

-126,236
Not seasonally adjusted
J
Merchandise trade balance^ '
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers .
U.S. government grants (excluding military)

-106,305

-92,123

-126,986
320,337
-447,323
-5,743
5,353

-115,917
361,451
-477,368
-6,203
2,688

16,082

28,618

-4,437
-10,506

-4,420
-11,071

- i 08,115
389,550
-497,665
-7,219
11,945
33,595
-4,843
-17,486

-23,881
-29,112
-28,760
%,638
-125,398
-1,683
2,802
8,086
-1,302
-3,024

11 Change in U.S. government assets other than official
reserve assets, net (increase, - )

2,966

1,320

2,976

-314

4,759

1,422

-493

2,715

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

-3,912
0
127
1,025
-5,064

-25,293
0
-535
471
-25,229

-2,158
0
-192
731
-2,697

1,739
0
363
8
1,368

-1,092
0
-93
-4
-995

-353
0
31
-341
-43

1,014
0
-190
72
1,132

3,878
0
6
-114
3,986

17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21 U.S. direct investments abroad, net

-85,112
-56,322
-3,064
-7,846
-17,880

-104,637
-51,255
2,581
-22,575
-33,388

-58,524
5,333
-1,944
-28,476
-33,437

-28,114
-9,984
676
-1,014
-17,792

-38,370
-24,513
-2,509
-7,546
-3,802

-1,992
20,598
-1,308
-9,430
-11,852

-15,503
1,215
-2,076
-12,833
-1,809

-18,564
-178

22 Change in foreign official assets in United States (increase, +) ..
23 U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets3

39,657
41,741
1,309
-568
-319
-2,506

8,624
149
1,383
281
4,976
1,835

32,425
28,643
667
1,703
2,998
-1,586

13,341
11,849
134
-248
1,871
-265

20,301
20,119
708
-707
-921

6,631
2,381
-29
1,012
2,501
766

-3,105
-2,287
-219
370
-1,084
115

4,309
5,717
407
1,302
-3,144
27

28 Change in foreign private assets in United States (increase, + ) . .
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net

181,877
70,235
5,626
20,239
26,353
59,424

207,925
63,382
5,454
29,618
38,920
70,551

53,879
9,975
3,779
1,131
1,781
37,213

35,754
26,%8
4,260
24
-2,558
7,060

18,732
17,261
-1,840
-2,029
802
4,538

-7,360
-18,795
-1,616
3,409
5,306
4,336

6,608
-28,687
-760
13,434
15,073
7,548

18,507
8,840

34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustments
37 Statistical discrepancy in recorded data before seasonal
adjustment

0
-9,240

0
18,366

0
63,526

0
1,475
-6,473

0
19,072
2,007

0
-8,849
3,995

0
8,451
166

0
-386
-6,059

-9,240

18,366

63,526

7,948

-12,844

8,285

5,673

-3,912

-25,293

-2,158

1,739

-1,092

-353

1,014

3,878

40,225

8,343

30,722

13,589

19,199

5,619

-3,475

3,007

-2,9%

10,738

2,163

-1,699

575

-3,162

-4,298

1,102

- i 2,511
-5,875

— i ,3 89
9,653
1,403

MEMO

38
39

Changes in official assets
U.S. officii reserve assets (increase, - )
Foreign official assets in United States excluding line 25
(increase, +)

40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)

1. Seasonal factors not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-40.
2. Data are on an international accounts (IA) basis. The data differ from the
Census basis data, shown in table 3.11, for reasons of coverage and timing.
Military exports are excluded from merchandise trade data and are included m
line 6.
3. Reporting banks include all kinds of depository institutions besides commer-




cial banks, as well as some brokers and dealers.
4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. Survey of Current Business (U.S. Department of Commerce).

A54
3.11

International Statistics • February 1992
U.S. FOREIGN TRADE1
Millions of dollars; exports, F.A.S. value; imports, Customs value; monthly data seasonally adjusted
1991
Item

1988

1989

1990
Apr.

1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports, including merchandise
for immediate consumption plus
entries into bonded warehouses

322,426

363,812

393,592

June

July

Aug.

Sept.r

Oct. p

35,632

35,271

34,975

35,227

34,380

35,348

36,737

440,952

473,211

495,311

40,139

40,062

38,764

41,176

40,910

42,282

43,465

-118,526

3 Trade balance

-109,399

-101,718

-4,507

-4,790

-3,789

-5,949

-6,530

-6,934

-6,728

1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, because of coverage and timing.
On the export side, the largest difference is the exclusion of military sales (which
are combined with other military transactions and reported separately in the
"service account" in table 3.10, line 6). On the import side, this table includes
imports of gold, ship purchases, imports of electricity from Canada, and other
transactions; military payments are excluded and shown separately in table 3.10,

3.12

May

as indicated above. Since Jan. 1, 1987 census data have been released forty-five
days after the end of the month; the previous month is revised to reflect late
documents. Total exports and the trade balance reflect adjustments for undocumented exports to Canada. Components may not sum to totals because of
rounding.
SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade
(U.S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1991

Type

1988

1989

1990

May
1 Total

July

Aug.

Sept.

Oct.

NOV.P

47,802

2 Gold stock, including Exchange
Stabilization Fund1
3 Special drawing rights2,3
4 Reserve position in International
Monetary Fund2
5 Foreign currencies4

74,609

83,316

78,263

74,940

74,816

73,514

74,731

74,508

74,651

11,057
9,637

11,059
9,951

11,058
10,989

11,057
10,515

11,062
10,309

11,062
10,360

11,062
10,479

11,062
10,722

11,059
10,710

11,058
10,942

9,745
17,363

9,048
44,551

9,076
52,193

8,854
47,837

8,629
44,940

8,730
44,664

8,726
43,247

9,094
43,853

9,065
43,674

8,943
43,708

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. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights are valued according to a techique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted
average of exchange rates for the currencies of member countries. From July 1974
through December 1980, 16 currencies were used; since January 1981, 5 curren-

3.13

June

cies 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 by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus net transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS H E L D AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
1991
Assets

1988

1989

1990
May

1 Deposits
Assets held in custody
2 U.S. Treasury securities2
3 Earmarked gold3

July

Aug.

Sept.

Oct.

NOV.P

347

589

369

196

223

314

256

384

223

346

232,547
13,636

224,911
13,456

278,499
13,387

279,695
13,358

273,893
13,354

274,514
13,330

279,394
13,330

279,013
13,330

280,249
13,326

285,905
13,307

1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies at face value.




June

3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts; it is not
included in the gold stock of the United States.

Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data 1

Millions of dollars, end of period

1988

1989

1990
Apr.

May

June

July

Aug.

Sept.

All foreign countries
505,595

545,366

556,925

538,814

530,707

532,698'

528,944 r

527,534'

546,849'

2 Claims on United States
3
Parent bank
4
Other banks in United States ,
5
Nonbanks
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
10
Nonbank foreigners
11 Other assets

169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
36,756

198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956

188,4%
148,837
13,2%
26,363
312,449
135,003
72,602
17,555
87,289
55,980

181,011
141,580
12,438
26,993
301,248
122,151
73,046
17,825
88,226
56,555

172,742
134,906
10,589
27,247
298,820
118,469
75,566
17,620
87,165
59.145

180,816'
141,903
26,902
294,421'
115,640'
74,976'
17,453'
86,352'
57,461'

174,433
136,790
11,100
26,543
294,826'
112,445'
77,471'
18,641'
86,269'
59,685'

168,602'
129,780
12,377'
26,445
2%,773'
113,131'
76,175'
19,262'
88,205'
62,159'

177,146'
136,610
13,692'
26,844
300,147'
115,078'
77,053'
18,850'
89,166'
69,556'

12 Total payable in U.S. dollars

357,573

382,498

379,479

372,769

363,468

373,122'

364,639'

358,773'

367,639'

13 Claims on United States
14
Parent bank
15
Other banks in United States .
16
Nonbanks
17 Claims on foreigners
18
Other branches of parent bank
19
Banks
20
Public borrowers
21
Nonbank foreigners
22 Other assets

163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
16,432

191,184
152,294
16,386
22,504
169,690
82,949
48,3%
10,961
27,384
21,624

180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854

174,317
137,343
11,977
24,997
173,544
87,895
40,904
12,9%
31,749
24,908

166,665
130,732
10,197
25,736
172,657
85,369
43,616
12,549
31,123
24.146

174,456'
137,943
11,502'
25,011
171,752'
84,316'
43,580'
12,518'
31,338'
26,914'

167,984
132,514
10,605
24,865
169,494'
79,114'
45,587'
13,602'
31,191'
27,161'

163,134'
126,357
11,903'
24,874
166,957'
79,318'
41,756'
14,116'
31,767'
28,682'

170,967'
133,024
13,109'
24,834
166,914'

1 Total, all currencies

12,011'

80,181'

40,647'
13,529'
32,557'
29,758'

United Kingdom

23 Total, all currencies

156,835

161,947

184,818

168,985

169,192

165,534

161,869

162,879

172,113

24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
33 Other assets

40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
10,358

39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078

45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722

38,136
34,930
1,179
2,027
107,136
40,730
30,608
3,711
32,087
23,713

38,338
34,830
1,104
2,404
106,053
39,060
32,048
3,657
31,288
24,801

37,574
34,534
711
2,329
103,608
38,333
31,019
3,584
30,672
24,352

32,475
29,241
860
2,374
103,067
36,588
31,866
3,676
30,937
26,327

31,315
28,189
816
2,310
103,935
38,382
30,168
3,717
31,668
27,629

34,409
31,205
997
2,207
105,699
39,077
31,658
3,502
31,462
32,005

34 Total payable in U.S. dollars

103,503

103,208

116,762

108,566

105,588

106,536

101,040

100,966

105,243

38,012
33,252
964
3,7%
60,472
28,474
18,494
2,840
10,664
5,019

36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742

41,259
39,609
334
1,316
63,701
37,142
13,135
3,143

35,058
32,973
976
1,109

35,274
32,771
970
1,533
60,125
31,297

34,726
32,790
555
1,381
58,565
30,108
14,983
3,082
10,392
13,245

29,352
27,085
759
1,508
57,861
29,111
15,723
3,032
9,995
13,827

28,870
26,608
680
1,582
56,127
30,279
12,534
3,083
10,231
15,969

31,772
29,673
727
1,372
56,354
30,840
12,485
2,899
10,130
17,117

35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets

10,281
11,802

62,186

32,842
15,460
3,193
10,691
11,322

16,118

3,152
9,558
10,691

Bahamas and Caymans

45 Total, all currencies

170,639

176,006

162,316

165,420

159,429

168,875'

169,675'

165,790'

169,709'

46 Claims on United States
47
Parent bank
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets

105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
6,926

124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633

112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971

113,916
79,818
10,416
23,682
42,564
12,554
17,955
6,556
5,499
8,940

107,837
74,894
8,925
24,018
42,7%
12,397
18,560
5,932
5,907
8,7%

114,809'
80,644
10,718'
23,447
45,346'

114,501
81,605
9,683
23,213
46,696'

111,328'
77,177

115,837'
80,464
12,063'
23,310
45,558'
10,645'
20,528'
7,069'
7,316'
8,314'

56 Total payable in U.S. dollars

163,518

170,780

158,390

161,381

155,643

165,777'

1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50




l l ^

12,886'

10,88^

20,917'
5,916'
5,627'
8,720'

21,836'
7,136'
6,844'
8,478'

23,102
46,236'
10,774'
21,111'
7,314'
7,037'
8,226'

164,971'

165,746'

161,717'

million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.

A56

International Statistics • February 1992

3.14—Continued
1991
1990
Apr.

May

June

July

Aug.

Sept.

Oct.

All foreign countries
57 Total, all currencies

505,595

545,366

556,925

538,814

530,707

532,698r

528,944r

527,534'

546,849'

548,651

58 Negotiable certificates of deposit (CDs) ..
59 To United States
60 Parent bank
61
Other banks in United States
62 Nonbanks

28,511
185,577
114,720
14,737
56,120

23,500
197,239
138,412
11,704
47,123

18,060
189,412
138,748
7,463
43,201

19,484
181,132
124,691
9,932
46,509

17,753
173,102
118,346
8,998
45,758

16,503
187,706r
128,033r
11,789'
47,884r

19,692
181,901'
126,915'
10,
44,8%'

18,7%
177,706'
121,675'
10,085'
45,946'

17,579
187,938'
131,524'
11,843'
44,571'

18,928
185,566
129,506
10,356
45,704

63 To foreigners
64 Other branches of parent bank
65 Banks
66 Official institutions
67 Nonbank foreigners
68 Other liabilities

270,923
111,267
72,842
15,183
71,631
20,584

296,850
119,591
76,452
16,750
84,057
27,777

311,668
139,113
58,986
14,791
98,778
37,785

300,907
122,789
63,908
18,398
95,812
37,291

301,433
119,765
66,207
19,803
95,658
38,419

290,277r
116,253
57,236r
20,394
96,394
38,212

287,887
112,521
59,975
17,245
98,146
39,464

290,257
112,845
62,329
18,030
97,053
40,775

295,645'
114,101
62,700'
19,420'
99,424'
45,687'

295,177
108,495
68,474
17,247
100,%1
48,980

69 Total payable in U.S. dollars

367,483

396,613

383,522

373,468

360,363

372,552r

363,500'

359,854'

367,261'

365,824

70 Negotiable CDs
71 To United States
72 Parent bank
73 Other banks in United States
74 Nonbanks

24,045
173,190
107,150
13,468
52,572

19,619
187,286
132,563
10,519
44,204

14,094
175,654
130,510
6,052
39,092

14,882
169,661
118,105
8,514
43,042

13,258
160,778
111,112
7,668
41,998

12,620
175,563r
120,1W
10,647r
44,117r

14,538
170,241'
120,189'
8,815'
41,237'

14,183
166,664'
115,495'
8,449'
42,720'

13,180
176,199'
125,022'
10,368
40,809'

14,157
173,649
122,814
9,011
41,824

75 To foreigners
76 Other branches of parent bank
77 Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities

160,766
84,021
28,493
8,224
40,028
9,482

176,460
87,636
30,537
9,873
48,414
13,248

179,002
98,128
20,251
7,921
52,702
14,772

173,589
88,299
22,892
11,568
50,830
15,336

171,227
85,857
21,706
12,339
51,325
15,100

170,334r
84,952
21,142r
13,972
50,268
14,035

163,451
79,909
21,470
11,563
50,509
15,270

164,188
79,277
23,330
11,4%
50,085
14,819

163,551'
79,679
21,246'
12,591
50,035'
14,331'

161,850
75,243
25,657
10,565
50,385
16,168

United Kingdom
156,835

161,947

184,818

168,985

169,192

165,534

161,869

162,879

172,113

172,795

82 Negotiable CDs
83 To United States
84 Parent bank
85 Other banks in United States
86 Nonbanks

24,528
36,784
27,849
2,037
6,898

20,056
36,036
29,726
1,256
5,054

14,256
39,928
31,806
1,505
6,617

15,162
28,450
21,676
1,175
5,599

13,486
28,618
19,951
1,413
7,254

12,1%
31,084
23,238
1,092
6,754

14,889
26,599
19,545
1,490
5,564

14,148
27,915
20,367
1,662
5,886

12,941
31,534
23,707
1,724'
6,103'

14,145
29,137
21,080
2,053
6,004

87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91 Nonbank foreigners
92 Other liabilities

86,026
26,812
30,609
7,873
20,732
9,497

92,307
27,397
29,780
8,551
26,579
13,548

108,531
36,709
25,126
8,361
38,335
22,103

103,976
31,860
27,001
11,300
33,815
21,397

104,322
30,155
28,459
12,342
33,366
22,766

99,756
29,371
22,994
13,062
34,329
22,498

97,263
28,591
24,310
10,010
34,352
23,118

%,773
27,457
25,131
10,722
33,463
24,043

98,572
29,898
23,560
12,071
33,043
29,066

100,267
26,879
28,470
10,045
34,873
29,246

81 Total, all currencies

105,907

108,178

116,094

106,571

104,077

104,523

99,756

100,131

104,303

103,238

94 Negotiable CDs
95 To United States
% Parent bank
97 Other banks in United States
98 Nonbanks

22,063
32,588
26,404
1,752
4,432

18,143
33,056
28,812
1,065
3,179

12,710
34,697
29,955
1,156
3,586

13,291
24,690
20,391
848
3,451

11,610
24,245
18,457
1,002
4,786

10,833
27,106
21,848
892
4,366

12,758
22,355
17,924
1,233
3,198

12,337
23,788
18,949
1,216
3,623

11,249
27,272
22,228
1,259
3,785

12,397
24,394
19,391
1,704
3,299

99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities

47,083
18,561
13,407
4,348
10,767
4,173

50,517
18,384
12,244
5,454
14,435
6,462

60,014
25,957
9,488
4,692
19,877
8,673

59,440
22,452
9,931
8,239
18,818
9,150

58,849
21,671
9,654
8,914
18,610
9,373

58,068
20,452
8,758
10,032
18,826
8,516

55,433
19,509
9,678
7,519
18,727
9,210

54,848
18,480
9,731
7,929
18,708
9,158

56,829
20,878
8,408
9,149
18,394
8,953

56,639
18,319
12,044
7,050
19,226
9,808

93 Total payable in U.S. dollars

Bahamas and Caymans
105 Total, all currencies

170,639

176,006

162,316

165,420

159,429

168,875r

169,675'

165,790'

169,709'

169,904

106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks

953
122,332
62,894
11,494
47,944

678
124,859
75,188
8,883
40,788

646
114,738
74,941
4,526
35,271

674
121,850
74,609
7,548
39,693

694
115,742
72,048
6,410
37,284

6%
125,863r
76,661r
9,449r
39,753r

904
126,714'
81,172'
7,484'
38,058'

%3
122,574'
76,655'
7,036'
38,883'

1,055
127,707'
81,668'
8,841
37,198'

981
129,598
84,268
7,070
38,260

45,161
23,686
8,336
1,074
12,065
2,193

47,382
23,414
8,823
1,097
14,048
3,087

44,444
24,715
5,588
622
13,519
2,488

40,289
21,645
5,837
676
12,131
2,607

40,696
22,017
5,832
736
12,111
2,297

40,180
21,701
5,734
931
11,814
2,136

39,624
21,765
4,877
661
12,321
2,433

39,994
21,846
5,558
655
11,935
2,259

38,868'
20,767
5,431'
647
12,023
2,079'

36,861
19,675
5,218
666
11,302
2,464

162,950

171,250

157,132

161,139

155,204

164,587r

165,339'

161,497'

165,046'

165,601

111 To foreigners
112 Other branches of parent bank
Banks
in
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars




Summary Statistics

A57

3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1991
Item

1989

1990
Apr.

4
5
6
7
8
9
10
11
12

June

July

Aug.

Sept/

Oct."

312,477
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
By area
Western Europe
Canada
Latin America and Caribbean
Other countries

344,504

344,605

351,017

346,511

349,864

356,153r

349,997

356,216

36,4%
76,985

39,855
79,424

39,057
81,087

41,891
82,421

41,156
84,526

43,336
86,071

47,173r
88,5%

38,412
90,394

40,318
94,428

179,269
568
19,159

202,487
4,491
18,247

201,089
4,610
18,762

203,109
4,642
18,954

197,277
4,672
18,880

196,573
4,704
19,180

1%,284
4,734
19,366

197,114
4,765
19,312

197,561
4,7%
19,113

132,849
9,482
9,313
153,338
1,030
6,469

1
?
3

May

167,191
8,671
21,159
138,0%
1,434
7,955

163,012
8,453
25,355
137,662
1,171
8,953

167,009
9,507
27,732
136,510
1,184
9,073

163,994
9,229
29,415
133,764
1,254
8,851

166,333
9,260
30,032
134,288
1,178
8,771

170,300"
10,001
31,352
134,387r
1,197
8,914

165,045
9,608
31,891
132,643
1,553
9,255

169,926
9,121
32,491
133,514
1,514
9,648

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes

bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.

3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies 1
Millions of dollars, end of period
1990
Item

1987

1988

1991

1989
Dec.

55,438
51,271
18,861
32,410
551
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.




74,980
68,983
25,100
43,884
364

67,835
65,127
20,491
44,636
3,507

Mar.

June

Sept.

70,413
66,855
29,672
37,182
10,594

64,347
67,309
27,510
39,799
7,357

59,236
61,481
27,545
33,935
2,733

63,370
66,535
32,139
34,3%
2,348

2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.

A58

International Statistics • February 1992

3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States 1

Millions of dollars, end of period
1991
Holder and type of liability

1988

1989

1990
Apr.

May

June

July

Aug/

Sept/

Oct."

1 All foreigners

685,339

736,878

754,005

732,847

727,365

723,281

722,670

732,769

736,065

745,781

2 Banks' own liabilities
3 Demand deposits
4
Time deposits
5
Other.
6
Own foreign offices 4

514,532
21,863
152,164
51,366
289,138

577,498
22,032
168,780
67,823
318,864

577,190
21,723
168,003
65,809
321,655

562,129
19,751
157,148
73,718
311,512

556,510
18,863
151,772
72,632
313,244

549,382
18,7%
148,452
65,438
316,6%

547,948
17,929
148,566
66,870
314,583

552,494
18,423
146,290
72,524
315,257

554,672
19,841
149,703
67,766
317,362

560,927
17,649
153,897
73,049
316,332

170,807
115,056

159,380
91,100

176,815
%,7%

170,718
97,311

170,855
98,019

173,899
100,876

174,722
101,733

180,275
104,949

181,393
107,019

184,854
112,267

16,426
39,325

19,526
48,754

17,578
62,441

16,475
56,933

16,959
55,876

17,944
55,079

17,287
55,702

16,508
58,818

16,820
57,554

17,089
55,498

11 Nonmonetary international and regional
organizations

3,224

4,894

5,918

6,237

6,057

5,917

6,226

6,935

6,905

8,097

12 Banks' own liabilities
13 Demand deposits
14 Time deposits
15 Other.

2,527
71
1,183
1,272

3,279
96
927
2,255

4,540
36
1,050
3,455

5,061
76
1,980
3,006

4,675
24
2,151
2,501

3,863
26
2,010
1,827

4,117
44
1,732
2,341

4,%1
28
1,540
3,393

5,400
36
2,297
3,067

6,3%
28
2,477
3,881

698
57

1,616
197

1,378
364

1,176
275

1,381
662

2,054
1,287

2,109
1,404

1,974
1,269

1,505
1,032

1,701
1,246

641
0

1,417
2

1,014
0

901
0

719
0

767
0

705
0

705
0

473
0

455
0

135,241

113,481

119,278

120,144

124,311

125,682

129,407

135,769

128,806

134,746

27,109
1,917
9,767
15,425

31,108
2,1%
10,495
18,417

34,885
1,924
14,334
18,628

36,0%
1,633
13,546
20,917

38,545
1,448
14,346
22,751

36,788
1,542
14,638
20,608

38,805
1,3%
14,941
22,468

42,955
1,683
14,722
26,550

33,864
1,645
13,275
18,944

36,351
1,307
13,790
21,254

108,132
103,722

82,373
76,985

84,393
79,424

84,048
81,087

85,766
82,421

88,894
84,526

90,602
86,071

92,814
88,596

94,942
90,394

98,395
94,428

4,130
280

5,028
361

4,766
203

2,831
130

3,194
152

4,101
267

4,324
207

4,047
171

4,128
420

3,832
135

7 Banks' custody liabilities5
8
U.S. Treasury bills and certificates6
9
Other negotiable and readily transferable
instruments
10 Other

16 Banks' custody liabilities5
17
U.S. Treasury bills and certificates6
18 Other negotiable and readily transferable
instruments7
19 Other
20 Official institutions9
21 Banks' own liabilities
22 Demand deposits
23
Time deposits2
24
Other.
25 Banks' custody liabilities5
26
U.S. Treasury bills and certificates6
27
Other negotiable and readily transferable
instruments
28
Other
29 Banks

10

30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other1.
35
Own foreign offices 4
36 Banks' custody liabilities5
37
U.S. Treasury bills and certificates6
38
39

Other negotiable and readily transferable
instruments
Other

459,523

515,275

535,202

510,795

500,983

499,494

494,662

500,599

509,557

511,566

409,501
120,362
9,948
80,189
30,226
289,138

454,273
135,409
10,279
90,557
34,573
318,864

458,457
136,802
10,053
88,558
38,192
321,655

440,068
128,555
9,073
79,232
40,250
311,512

432,311
119,068
8,674
72,355
38,038
313,244

431,592
114,8%
8,584
69,826
36,486
316,6%

427,575
112,992
8,423
70,078
34,491
314,583

429,787
114,530
8,252
70,558
35,720
315,257

439,924
122,562
8,959
74,848
38,755
317,362

443,363
127,041
8,124
78,118
40,799
316,322

50,022
7,602

61,002
9,367

76,745
10,669

70,728
10,030

68,672
8,712

67,903
8,666

67,087
7,970

70,812
8,242

69,633
8,161

68,203
8,363

5,725
36,694

5,124
46,510

5,341
60,735

6,116
54,582

5,877
54,083

5,833
53,404

5,408
53,709

5,316
57,254

5,819
55,653

6,024
53,816

40 Other foreigners

87,351

103,228

93,606

95,671

%,014

92,188

92,375

89,466

90,797

91,372

41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other.

75,396
9,928
61,025
4,443

88,839
9,460
66,801
12,577

79,307
9,711
64,062
5,534

80,905
8,%9
62,391
9,545

80,978
8,717
62,920
9,341

77,139
8,644
61,977
6,518

77,451
8,066
61,815
7,570

74,791
8,460
59,470
6,861

75,484
9,201
59,283
7,000

74,817
8,190
59,512
7,115

45 Banks' custody liabilities5
46
U.S. Treasury bills and certificates6
47
Other negotiable and readily transferable
instruments7
48
Other

11,956
3,675

14,389
4,551

14,299
6,339

14,766
5,919

15,035
6,224

15,049
6,397

14,924
6,288

14,675
6,842

15,313
7,432

16,555
8,230

5,929
2,351

7,958
1,880

6,457
1,503

6,626
2,221

7,170
1,642

7,244
1,408

6,850
1,786

6,440
1,393

6,400
1,481

6,778
1,547

6,425

7,203

7,073

7,321

7,563

7,934

6,813

7,062

7,542

7,5%

49 MEMO: Negotiable time certificates of deposit in
custody for foreigners

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts due to head office or parent foreign
bank, and foreign branches, agencies, or wholly owned subsidiaries of head office
or parent foreign bank.




5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported

Data

3.17—Continued
1991
Area and country

1988

1989

1990
Apr.

May

June

July

Aug.

Sept/
R

736,065

1 Total

685,339

736,878

754,005

732,847

727,365

723,281

722,670

732,769

2 Foreign countries

682,115

731,984

748,087

726,610

721,308

717,364

716,444

725,834"

729,160

231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199

237,501
1,233
10,648
1,415
570
26,903
7,578

241,708
1,147
12,393
945
724
26,969
8,436
809
15,043
6,773
1,098
2,628
10,006
720
36,716
1,490
101,567
1,034
10,335
138
2,739

238,174
1,100
11,593
988
453
26,270
8,488
785
14,723
6,686
1,167
2,410
10,095
525
34,884
1,535
99,879
953
12,797
129
2,713

236,448
1,067
11.854
1,370
732
26,382
7,822
791
14,345
6,100
1,926
2,392
9,392
745
36,124
1,806
98,199
925
11,371
178
2,925

228,728
1,234
12,292
1,197
1,222
26,747
7,056
817
13,883
6,069
1,653
2,279
10,496
858
34,818
1,720
89,995
12,423
75
2,878

234,877r
961
11,168
1,065
1,170
26,580
7,037
851
12,507
5,651
1,279
2,313
10,396
1,424
35,977
1,780
95,359"
955
15,025r
136
3,243

237,010
1,109
13,912
1,038
618
27,475
7,500
944
12,507
6,310
1,444
2,391
10,834
1,437
38,350
1,538
95,628
854
9.640
117
3,364

1,012

1,818

111,811
529
8,598
138
591

102,362
1,474
13,563
350
608

254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7.544
1,837
36,690
1,169
109,555
928
11,689
119
1.545

21,062

18,865

20,349

23,264

22,740

23,850

22,519

23,919r

24,038

25 Latin America and Caribbean
26 Argentina
27
Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other

271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868

311,028
7,304
99,341
2,884
6,351
138,309
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,362
1,984
2,284
9,482
6,206

327,370
7,365
107,386
2,822
5,834
141,719
3,145
4,492
11
1,379
1,541
257
16,625
7,357
4,574
1,294
2,520
12,271
6,779

325,444
7,704
96,307
2,753
5,806
150,993
3,107
4,347
8
1,260
1,571
233
17,508
6,874
4,290
1,427
2,463
11,833
6,959

328,845
7,591
97,485
3,054
5,756
151,629
3,240
4,408
8
1,293
1,595
237
18,657
5,962
4,549
1,412
2,488
12,665
6,815

328,380
7,519
96.855
2,919
5,749
150,939
3,233
4,448
7
1,664
273
19,552
5,935
4,672
1,341
2,573
12,585
6,828

335,338
7,110
98,021
3,087
5,806
157,372
3,308
4,421
2
1,270
1,641
219
20,008
5,830
4,438
1,334
2,452
12,176
6,843

337,704r
6,978r
93,977r
3,520"
6,049"
162,590"
3,162r
4,735r
9
l,236r
1,613
235r
20,357
5,732r
4,748r
l,287r
2,439"
12,249"
6,788r

340,634
6,858
96,577
3,120
6,183
163,040
3,092
4.641
8
1,226
1,585
213
20,937
5,565
4,374
1,305
2,507

44 Asia
China
45
Mainland
46
Taiwan
47
Hong Kong
48 India
49 Indonesia
50 Israel
51 Japan
52 Korea
53 Philippines
54 Thailand
55 Middle-East oil-exporting countries13
56 Other

147,838

156,201

136,842

127,737

122,893

120,618

121,985

121,313"

118,830

1,773
19,588
12,416
780

2,415
11,001
16,141
1,895
1,309
2,849
53,172
2,887
1,681
2,571
14,655
17,162

2,446
10,649
15,035
1,968
1,303
2,564
52,031
2,193
1,521
2,502
14,122
16,560

2,412
9,838
14,582
1,959
2,355
51,482
1,587
2,386
13,355
16,949

2,408
11,178
14,720
2,122
1,191
2,376
50,008
2,364
1,537
2,368
15,738
15,975

2,247
11,579"
14,206"
2,373
1,232
2,697
48,499
2,272"
1,465
2,650
14,835"
17,258

2,198
9,425
14,468
2,474
1,065
2,848
48,089
2,107
1,647
3,348
15,310
15,851

3 Europe
4
Austria
5 Belgium-Luxembourg
Denmark
6
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe"
22
U.S.S.R
...
23 Other Eastern Europe12
24 Canada

1,028

16,169
6,613
2,401
2,418
4,364
1,491
34,496

1,288

1,016

12,210

7,193

1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260

1,243
81,184
3,215
1,766
2,093
13,370
17,491

2,421
11,246
12,754
1,233
1,238
2,767
67,074
2,287
1,585
1.443
15,829
16,965

57 Africa
58 Egypt
59 Morocco
60 South Africa
61 Zaire
62 Oil-exporting countries14
63 Other

3,991
911
68
437
85
1,017
1,474

3,824
686
78
206
86
1,121
1,648

4,630
1,425
104
228
53
1,110
1,710

4,495
927
89
220
50
1,434
1,776

4,695
1,364
97
202
52
1,140
1,840

4,188
1,017
122
241
45
1,105
1,658

3,929
999
81
221
24
960
1,644

4,017
957
91
137
58
992
1,782

4,483
1,125
82
242
37
1,145
1,852

64 Other countries
65 Australia
66 All other

6,165
5,293
872

4,564
3,867
697

4.444
3,807
637

3,962
3,118
845

3,962
3,232
730

3,879
3,097
781

3,945
3,173
772

4,004
3,149
855

4,165
3,231
934

67 Nonmonetary international and regional
organizations
68 International
69 Latin American regional
70 Other regional16

3,224
2,503
589
133

4,894
3,947
684
263

5,918
4,390
1,048
479

6,237
4,895
913
429

6,057
4,641
802
614

5,917
4,025
1,410
482

6,226
4,346
1,273
607

6,935
4,361
1,531
1,043

6,905
4,867
1,094
944

1,281

11. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




1,612

2,102

14. Comprises Algeria, Gabon, Libya, and Nigeria.
15. Excludes "holdings of dollars" of the International Monetary Fund.
16. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."

A59

A60

International Statistics • February 1992

3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991
Area and country

1988

1989

1990
Apr.

May

June

July

Aug.

Sept/

Oct.?

r

1 Total

491,165

534,492

511,543

508,419

503,064

504,738

497,441

502,445

499,949

509,170

2 Foreign countries

489,094

530,630

506,750

505,558

500,134

500,656

495,407

500,000r

497,443

507,354

116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754

119,025
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921

113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499

100,367
392
5,472
765
1,168
13,934
3,236
688
5,429
2,222
679
293
3,344
1,944
3,240
1,440
52,553
1,012
1,118
904
533

99,221
220
7,841
909
862
13,578
2,631
762
5,827
1,960
695
322
3,082
1,937
3,487
1,445
50,159
%5
999
956
585

99,001
303
6,721
8%
668
14,302
2,782
654
6,329
2,122
701
378
2,056
1,968
2,%9
1,593
51,363
932
734
911
618

97,828
269
5,924
898
642
14,292
2,690
619
5,911
2,234
661
260
2,582
1,858
3,627
1,458
50,836
877
832
772
586

98,587r
185
6,534
945
771
13,827
3,118r
495
5,931
2,101
599
308
1,995
1,633
3,609
1,407
51,625r
820
1,024
1,015
645

103,512
297
7,185
670
908
14,520
2,665
473
6,574
1,955
679
266
2,370
1,894
4,049
1,368
54,348
802
773
1,157
559

103,883
374
7,690
611
1,1%
13,085
2,078
487
6,400
2,175
682
301
2,439
1,842
4,192
1,192
55,533
803
714
1,358
731

3 Europe
4
Austria
5
Belgium-Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11
Italy
12 Netherlands
13 Norway
14 Portugal
15
Spain
16 Sweden
17
Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
Other Western Europe
21
22
U.S.S.R
23
Other Eastern Europe3

18,889

15,451

16,091

17,600

17,713

17,431

16,719

14,495

14,754

16,005

25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
British West Indies
30
31
Chile
32
Colombia
Cuba
33
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
Netherlands Antilles
38
39
Panama
Peru
40
Uruguay
41
42
Venezuela
43
Other

214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
1
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612

230,438
9,270
77,921
1,315
23,749
68,749
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
929
9,652
1,726

231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384

240,899
6,420
77,231
4,935
16,524
105,220
3,050
2,334
0
1,326
222
197
15,609
1,4%
1,475
670
620
2,211
1,360

244,314
6,363
79,429
7,182
15,594
105,686
3,032
2,281
0
1,339
220
181
15,177
1,589
1,410
722
615
2,223
1,271

248,511
6,128
78,024
3,893
15,249
114,954
2,917
2,349
0
1,344
203
187
15,411
1,639
1,423
726
590
2,222
1,252

245,982
5,945
81,295
5,813
12,351
110,553
2,823
2,202
0
1,263
190
144
15,450
1,563
1,501
712
577
2,405
1,195

249,214r
5,749r
78,414r
11,773
12,332r
111,019
2,779
2,368
0
1,238
182
150
15,279
1,540
1,490
728
571
2,403
1,199

250,944
5,749
80,316
6,847
12,435
112,567
2,734
2,430
0
1,115
186
150
16,406
3,606
1,489
719
577
2,452
1,166

253,111
6,000
85,598
4,292
11,853
113,567
2,726
2,543
0
1,293
191
162
16,847
1,333
1,574
1,026
555
2,391
1,160

44

130,881

157,474

138,722

139,243

131,465

128,051

127,560

130,220r

120,612

126,977

762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122

634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594

620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106

641
1,685
10,891
574
1,029
871
91,482
6,193
1,478
1,662
12,286
10,449

567
1,390
9,870
478
982
829
88,821
5,584
1,452
1,747
9,636
10,110

992
2,019
9,217
432
891
851
85,689
5,924
1,506
1,977
10,468
8,087

659
1,6%
9,051
409
874
818
88,183
5,597
1,647
1,975
9,771
6,880

575
1,522
9,154
425
858r
919
90,604
5,383
1,682
1,870
9,741
7,487

621
1,460
9,467
449
852
944
80,758
5,140
1,633
1,934
10,439
6,915

597
1,577
10,203
481
824
993
84,816
5,339
1,919
1,826
9,973
8,429

57 Africa
58
Egypt
59
Morocco
60
South Africa
Zaire
61
62
Oil-exporting countries
Other
63

5,718
507
511
1,681
17
1,523
1,479

5,890
502
559
1,628
16
1,648
1,537

5,445
380
513
1,525
16
1,486
1,525

5,355
304
538
1,627
18
1,372
1,497

5,464
305
603
1,641
18
1,365
1,533

5,429
315
590
1,626
12
1,336
1,550

5,417
324
597
1,627
9
1,285
1,575

5,344r
315
576
1,610
9
1,273
l,561 r

5,272
312
579
1,498
8
1,270
1,605

5,264
294
589
1,494
12
1,260
1,615

64 Other countries
65
Australia
66
Mother

2,413
1,520
894

2,354
1,781
573

1,892
1,413
479

2,093
1,569
524

1,957
1,470
487

2,233
1,621
611

1,901
1,384
517

2,140
1,464
676

2,349
1,526
823

2,114
1,503
611

67 Nonmonetary international and regional
organizations6

2,071

3,862

4,793

2,861

2,930

4,081

2,034

2,445r

2,506

1,816

24 Canada

45
46
47
48
49
50
51
52
53
54
55
56

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Middle East oil-exporting countries
Other

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."

Nonbank-Reported

Data

3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991

Type of claim

1988

1990

1989

Apr.
1 Total

..

.

2 Banks' own claims on foreigners
3
Foreign public borrowers
Own foreign offices 2
4
5
Unaffiliated foreign banks
Deposits
6
Other
7
8
All other foreigners

538,689

593,087

May

June

July

Aug. r

Sept. r

497,441
34,814
305,392
114,871
69,066
45,805
42,364

502,445
35,395
301,552
116,499
70,492
46,007
48,999

499,949
35,547
304,314
113,551
68,507
45,044
46,537

565,375

570,476

577,213
508,419
42,960
304,028
112,640
64,748
47,892
48,791

503,064
38,928
298,517
117,674
68,822
48,852
47,945

504,738
39,315
305,914
114,858
68,695
46,162
44,650

511,543
41,838
304,315
117,860
65,252
52,608
47,530

47,524
8,289

58,594
13,019

65,670
14,375

65,738
19,380

65,426
19,512

30,983

40,987

35,404

35,054

14,592

10,307

10,953

10,860

19,5%

12,899

13,659

10,410

8,665

45,360

45,744

44,562

509,170
34,933
309,568
119,674
72,505
47,169
44,995

Negotiable and readily transferable

12

534,492
60,511
2%,011
134,885
78,185
56,700
43,085

13,535

11

491,165
62,658
257,436
129,425
65,898
63,527
41,646

25,700

9 Claims of banks' domestic customers 3 ...

Oct.P

Outstanding collections and other

13 MEMO: C u s t o m e r liability o n

14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States'

42,700

40,087

36,063

40,434 R

37,455

43,432

n.a.

subsidiaries of head office or parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 Bulletin,
p. 550.

1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in "Consolidated Report of Condition" filed
with bank regulatory agencies. For agencies, branches, and majority-owned
subsidiaries of foreign banks, consists principally of amounts due from head office
or parent foreign bank, and foreign branches, agencies, or wholly owned

3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991

1990

Maturity, by borrower and area

1987

1988

1989

Dec.

Mar.

June

Sept.?

235,130

233,184

238,123

207,035

199,171

199,078

195,386

163,997
25,889
138,108
71,133
38,625
32,507

172,634
26,562
146,071
60,550
35,291
25,259

178,346
23,916
154,430
59,776
36,014
23,762

165,773
19,310
146,463
41,262
22,406
18,855

158,146
21,205
136,941
41,025
22,435
18,590

158,749
18,563
140,186
40,328
20,613
19,715

159,441
16,990
142,451
35,945
18,263
17,682

13

59,027
5,680
56,535
35,919
2,833
4,003

55,909
6,282
57,991
46,224
3,337
2,891

53,913
5,910
53,003
57,755
3,225
4,541

49,157
5,439
49,731
53,134
3,040
5,272

49,593
5,909
42,686
54,032
3,008
2,918

49,909
7,221
40,616
53,093
2,945
4,966

51,197
5,691
47,266
49,292
2,815
3,180

17
18
19

6,6%
2,661
53,817
3,830
1,747
2,381

4,666
1,922
47,547
3,613
2,301
501

4,121
2,353
45,816
4,172
2,630
684

3,869
3,291
25,977
5,189
2,374
561

4,329
3,387
24,%2
5,404
2,426
517

4,308
3,891
23,758
5,721
2,456
195

3,815
3,671
19,757
6,095
2,385
222

I
2
3
4
5
6
7

By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less

8
9
10
11

Canada
Latin America and Caribbean

Africa
All other3
Maturity of more than one year2
Europe
14
15
Canada
16
Latin America and Caribbean

17

Africa
All other3

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.




2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.

A61

A62

International Statistics • February 1992

3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1
Billions of dollars, end of period
1989
Area or country

1987

1991

1990

1988
Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June

Sept. p

382.4

346.3

346.5

338.8

333.9

321.7

332.1

317.8

324.6

320.2r

337.2

159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8

152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9

146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0

152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2

146.6
6.7
10.4
11.2
5.9
3.1
2.1
6.2
64.0
4.8
32.2

139.3
6.2
10.2
11.2
5.4
2.7
2.3
6.3
59.9
5.1
30.1

144.3
6.5
11.1
11.1
4.4
3.8
2.3
5.6
62.5
5.1
32.0

132.1
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.8
5.9
23.9

129.6
6.2
9.7
8.8
4.0
3.3
2.0
3.7
62.0
6.7
23.2

130.2r
6.1
10.5
8.3
3.6
3.3
2.4
3.3
59.9r
8.2
24.6

135.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
65.6
5.8
23.4

13 Other developed countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia

26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4

21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8

21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1

20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6

23.0
1.5
1.2
1.1
2.6
1.7
.4
8.2
1.3
1.0
2.0
2.1

22.4
1.5
1.1
.9
2.7
1.4
.8
7.8
1.4
1.1
1.9
1.8

23.1
1.6
1.1
.8
2.8
1.6
.6
8.4
1.6
.7
1.9
2.0

22.6
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
.9
1.8
1.8

23.1
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
.8
1.8
1.9

21.1
1.1
1.2
.8
2.4
1.5
.6
7.0
1.9
.9
1.8
2.0

21.7
1.0
.9
.7
2.3
1.4
.5
8.3
1.6
1.0
1.6
2.4

25 OPEC countries2
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries

17.4
1.9
8.1
1.9
3.6
1.9

16.6
1.7
7.9
1.7
3.4
1.9

16.2
1.5
7.4
2.0
3.5
1.9

17.1
1.3
7.0
2.0
5.0
1.7

15.5
1.2
6.1
2.1
4.3
1.8

15.3
1.1
6.0
2.0
4.4
1.8

14.4
1.1
6.0
2.3
3.3
1.7

12.8
1.0
5.0
2.7
2.5
1.7

17.1
.9
5.1
2.8
6.6
1.6

14.0
.9
5.3
2.6
3.7
1.5

15.6
.8
5.6
2.8
5.0
1.5

31 Non-OPEC developing countries

97.8

85.3

81.2

77.5

68.8

66.7

67.1

65.4

66.3

65.(f

65.8

9.5
24.7
6.9
2.0
23.5
1.1
2.8

9.0
22.4
5.6
2.1
18.8
.8
2.6

7.6
20.9
4.9
1.6
17.2
.6
2.9

6.3
19.0
4.6
1.8
17.7
.6
2.8

5.6
17.5
4.3
1.8
12.8
.5
2.8

5.2
16.7
3.7
1.7
12.6
.5
2.3

5.0
15.4
3.6
1.8
12.8
.5
2.4

5.0
14.4
3.5
1.8
13.0
.5
2.3

4.7
13.9
3.6
1.7
13.7
.5
2.2

4.6
11.6
3.6
1.6
14.3
.5
2.0

4.7
11.0
3.7
1.6
16.1
.4
1.9

1 Total
2 G-10 countries and Switzerland
Belgium-Luxembourg
3
4
France
5 Germany
Italy
6
7
Netherlands
Sweden
8
9
Switzerland
10
United Kingdom
11
Canada
12 Japan

32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other Latin America

39
40
41
42
43
44
45
46
47

Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia3

.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7

.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9

.3
5.0
2.7
.7
6.5
1.7
4.0
1.3
1.0

.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0

.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2

.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1

.2
4.0
3.6
.6
6.2
1.8
3.9
1.5
1.6

.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7

.4
3.6
3.5
.5
6.8
2.0
3.7
1.6
2.1

.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
2.3

.4
4.1
2.8
.5
6.0
2.3
3.6
1.9
2.8

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa3

.6
.9
.0
1.3

.4
.9
.0
1.1

.5
.8
.0
1.0

.4
.9
.0
1.0

.4
.9
.0
.9

.5
.9
.0
.8

.4
.9
.0
.8

.4
.8
.0
1.0

.4
.8
.0
.8

.4
.7
:0
.8

.4
.7
.0
.8

52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other

3.2
.3
1.8
1.1

3.6
.7
1.8
1.1

3.5
.8
1.7
1.1

3.5
.7
1.6
1.3

3.3
.8
1.4
1.2

2.9
.4
1.4
1.1

2.7
.4
1.3
1.1

2.3
.2
1.2
.9

2.1
.3
1.0
.8

2.1
.4
1.0
.7

1.8
.4
.8
.7

56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama
62
Lebanon
63
Hong Kong
64
Singapore
65
Others5

54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0

44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0

49.2
11.4
1.3
15.3
1.1
1.5
.1
10.7
7.8
.0

36.6
5.5
1.7
9.0
2.3
1.4
.1
9.7
7.0
.0

43.1
9.2
1.2
10.9
2.6
1.3
.1
9.8
8.0
.0

40.3
8.5
2.5
8.5
2.3
1.4
.1
10.0
7.0
.0

42.2
8.9
4.5
9.0
2.2
1.5
.1
8.7
7.5
.0

42.5
2.8
4.4
11.5
7.9
1.4
.1
7.7
6.6
.0

49.6
8.3
4.4
13.7
1.1
1.4
.1
11.5
8.9
.0

48.3r
6.8
4.2
14.9
1.4
1.3
.1
12.4r
7.2
.0

52.6
6.6
7.1
14.2
3.5
1.3
.1
12.0
7.7
.0

66 Miscellaneous and unallocated6

23.2

22.6

28.7

30.3

33.3

34.5

38.1

39.8

36.6

39.4

44.6

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to




$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional organizations.

Nonbank-Reported

Data

A63

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States 1
Millions of dollars, end of period
1991

1990
Type and area or country

1987

1988

1989"
Mar.

June

Sept.

Dec.

Mar.

June

1

28,302

32,952

38,182

38,384r

39,390"

44,145"

42,292"

39,962"

39,278"

7 Payable in dollars
3 Payable in foreign currencies

22,785
5,517

27,335
5,617

33,393
4,789

34,030
4,355r

34,911
4,479"

39,015
5,130"

37,894
4,398"

35,715"
4,246"

35,259"
4,019"

By type
4 Financial liabilities
5 Payable in dollars
6
Payable in foreign currencies

12,424
8,643
3,781

14,507
10,608
3,900

17,891
14,047
3,844

17,445"
14,169
3,276"

19,025"
15,663
3,363"

19,898"
16,059
3,839"

17,979"
14,731
3,247"

17,104"
14,182"
2,922"

16,767
13,872
2,895

15,878
7,305
8,573
14,142
1,737

18,445
6,505
11,940
16,727
1,717

20,292
7,590
12,701
19,346
945

20,939
7,443
13,496
19,861
1,078

20,365
6,935
13,430
19,248
1,117

24,247
10,040
14,206
22,956
1,291

24,313
9,945
14,368
23,163
1,150

22,858
8,224
14,634
21,533
1,325

22,511"
8,665"
13,846"
21,387"
1,124"

8,320
213
382
551
866
558
5,557

9,962
289
359
699
880
1,033
6,533

11,672
340
258
464
941
541
8,830

11,143"
318
268"
431"
897"
526"
8,372"

11,802"
332
165"
547"
928"
552
8,832"

11,251"
350
463"
606"
942"
628"
7,632"

7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
By area or country
Financial liabilities
1?
n
14
15
16
17
18

Belgium-Luxembourg
Netherlands
Switzerland
United Kingdom

9,813"
344
695"
622"
990"
576
5,976"

9,187"
285
627"
561"
945"
577
5,551"

9,244
297
535
664
917
535
5,706
287

360

388

610

352

306

309

223

272

British West Indies
Mexico
Venezuela

1,189
318
0
25
778
13
0

839
184
0
0
645
1
0

1,357
157
17
0
724
6
0

2,022"
354
2
0
1,186"
5
0

2,774"
312
0
0
1,920"
4
0

3,560"
395
0
0
2,548"
4
0

3,400"
371
0
0
2,407"
5
4

3,636"
392"
0
0
2,674"
6
4

3,308
375
12
0
2,319
6
4

V
78
29

Japan
Middle East oil-exporting countries

2,451
2,042
8

3,312
2,563
3

4,151
3,299
2

3,821
2,783
3

4,085
2,883
5

4,296"
3,161"
4

4,132"
2,930"
5

4,005"
2,932"
1

3,918
2,865
4

30
31

Oil-exporting countries3

4
1

2
0

2
0

3
0

3
1

2
0

2
0

2
0

9
7

100

4

100

103

55

479

409

2

2

Belgium-Luxembourg

5,516
132

7,319
158

8,944
175

9,203
232

8,559
291

9,831
245

10,232
275

9,605
261

8,816"
254"

Switzerland
United Kingdom

426
909
423
559
1,599

455
1,699
587
417
2,079

877
1,392
697
641
2,620

888
1,176
687
604
2,927

1,049
990
606
628
2,440

1,263
1,051
699
729
2,778

1,197
1,269
837
761
2,792

1,209
1,380
715
656
2,734

1,245"
1,044"
750"
586"
2,308"

1,301

1,217

1,124

1,151

1,178

1,263

1,250

1,230

1,186

864
18
168
46
19
189
162

1,090
49
286
95
34
217
114

1,187
41
308
100
27
304
154

1,310
37
516
121
18
241
86

1,285
22
412
109
29
288
119

1,559
18
371
129
42
506
120

1,616
12
538
145
30
429
122

1,544
21
494 .
214
35
304
109

1,631"
12"
505"
180"
43
364"
121"

6,565
2,578
1,964

6,915
3,094
1,385

7,166
2,914
1,401

7,000
2,748
1,394

7,065
3,189
1,125

8,868
3,283
2,321

8,977
3,617
1,730

8,235
3,467
1,268

8,847"
3,383"
1,699"

574
135

576
202

844
307

759
264

889
277

1,318
594

841
422

650
225

594
224

1,057

1,328

1,027

1,517

1,390

1,408

1,398

1,594

1,436

19

Canada

70
?1
V
?3
74
?5
26

Latin America and Caribbean
Bahamas
Bermuda

32

All other4
Commercial liabilities

33
34
35
36
37
38
39
40

Canada

41
4?
43
44
45
46
47

Latin America and Caribbean

British West Indies
Venezuela

48
49
50

Middle East oil-exporting countries •

51
52

Oil-exporting countries3

53

All other4

1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.

A64

International Statistics • February 1992

3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States 1

Reported by Nonbanking Business Enterprises in the

Millions of dollars, end of period
1990
Type, and area or country

1987

1988r

Mar.
1 Total

30,964

2 Payable in dollars
3 Payable in foreign currencies

33,805

1991

1989r
June

Sept.

Dec.

Mar.

31,129

29,454r

31,355r

30,758r

32,919r

r

r

r

June

33,690'

35,849r

2,231r

33,851r
l,997 r

r

28,502
2,462

31,425
2,381

28,795
2,334

27,300
2,154

29,026
2,329

28,363
2,395

By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies

20,363
14,894
13,765
1,128
5,470
4,656
814

21,640
15,643
14,544
1,099
5,997
5,220
777

17,320
10,421
9,495
927
6,899
6,145
754

16,158r
10,461
9,583
878
5,697r
5,007r
690

17,725r
9,901
8,820
1,082
7,823r
7,090r
733

16,307r
10,359
9,165
1,193
5,949r
5,2%r
652

17,627r
11,513
10,501
1,012
6,114r
5,247r
866

18,032r
11,475r
10,533
942r
6,557r
5,861r
6%r

19,586r
ll,198 r
10,494r
705r
8,387r
7,699r
688r

11 Commercial claims
12 Trade receivables
13
Advance payments and other claims
14 Payable in dollars
15
Payable in foreign currencies

10,600
9,535
1,065
10,081
519

12,166
11,091
1,075
11,660
505

13,809
12,191
1,618
13,156
653

13,2%
11,691
1,605
12,710
586

13,631
11,924
1,707
13,117
514

14,450
12,674
1,776
13,901
549

15,292
13,415
1,877
14,749
543

15,658
13,595
2,063
15,066
593

16,263r
13,%7r
2,2%r
15,658r
605r

9,531
7
332
102
350
65
8,467

10,278
18
203
120
348
217
9,039

6,915
28
153
87
303
91
6,010

6,804r
22
182r
386r
316
108r
5,569r

9,574r
126
126r
76r
3391
131r
8,551r

7,939r
27
145r
79r
327r
163r
6,97 l r

7,879r
76
358r
302r
3301
293r
6,276

9,297r
85r
193r
249r
443r
358r
7,754r

1 0 ^
74r
255r
233r
494r
367r
9,088r

2,844

2,325

1,904

1,758

2,036

1,989

2,887

l^tF

1,986r

r

16
17
18
19
20
21
22
23

By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

31
32
33

Asia
Japan
Middle East oil-exporting countries2

34
35

Africa
Oil-exporting countries3

36
37
38
39
40
41
42
43

All other

4

Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

30,498
2,421

7,012
1,994
7
63
4,433
172
19

8,160
1,846
19
47
5,763
151
21

7,590
1,461
7
224
5,486
94
20

6,984
1,662
4
79
4,824
152
21

5,490
992
3
84
4,003
164
20

5,642
977
4
70
4,191
158
23

5,757
1,261
3
68
4,021
177
25

5,986
1,714
6
68
3,769r
179
28

5,844r
1,03 r
4
127r
4,302r
161
29

879
605
8

623
354
5

590
213
8

526r
191r
7

534r
185r
6

53 l r
207r
9

860r
523r
8

568r
246r
11

757r
409r
9

65
7

106
10

140
12

67
11

62
8

49
7

37
0

62
3

64
1

158r

206r

268r

275r

7,046
211
1,240
803
551
298
1,7%

7,005
221
1,267
859
591
323
1,645

7,542r
220
l,408 r
957r
756r
299
l,820 r

33

148

180

4,180
178
650
562
133
185
1,073

5,181
189
672
669
212
344
1,324

6,193
242
963
696
479
305
1,572

18r
6,035
220
964
699
453
270
1,688

28

r

6,072
209
924
670
478
234
1,582

6,490
188
1,206
638
491
300
1,673

44

Canada

936

983

1,076

1,145

1,145

1,144

1,049

1,194

l,248 r

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,930
19
170
226
26
368
283

2,241
36
230
299
22
461
227

2,174
57
323
293
36
507
147

2,053
22
243
228
38
521
188

2,198
17
284
232
47
575
223

2,393
25
340
251
35
649
224

2,305
14
246
320
40
636
189

2,305
15
232
308
49
657
190

2,433r
16r
245
297r
43
71 r
195r

52
53
54

Asia
Japan
Middle East oil-exporting countries

2,915
1,158
450

2,993
946
453

3,555
1,197
518

3,271
1,072
433

3,463
1,0%
418

3,621
1,221
407

4,044
1,3%
459

4,292
1,749
548

4,159r
l,604 r
51C

55
56

Africa
Oil-exporting countries3

401
144

435
122

419
108

419
89

387
97

371
72

486
67

390
68

428r
59

57

All other4

238

333

392

372

365

432

362

472

453r

1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions

A65

3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1991

1991
Transaction and area or country

1989

1990
Jan. Oct.

Apr.

Mayr

Juner

Julyr

Aug. r

Sept. r

Oct."

U.S. corporate securities
STOCKS

214,071
204,129

1
2 Foreign sales

175,425
162,538

20,577
17,440

19,230
15,900

17,342
16,107

16,462
15,304

17,934
16,192

12,919
13,659

17,201
16,791
410

9,941

4 Foreign countries
5 Europe
6
France
Germany
7
Netherlands
8
9
Switzerland
10 United Kingdom
11
1? Latin America and Caribbean
13 Middle East1
14 Other Asia
15 Japan
16
17 Other countries
18 Nonmonetary international and
regional organizations
BONDS

-15,126

12,887

3,137

3,330

1,234

1,158

1,742

-740

10,175

3 Net purchases, or sales (—)

-15,197

12,338

3,059

3,276

1,191

1,135

1,606

-850

365

476
-708
-830
79
-3,277
3,683
-881
3,042
3,531
3,577
3,330
131
299

-8,479
-1,234
-367
-397
-2,866
-2,980
886
-1,330
-2,435
-3,477
-2,891
-63
-298

2,288
193
-148
-130
376
1,161
2,989
2,649
-130
4,188
1,447
132
224

1,639
-45
13
30
552
686
111
120
-174
1,236
1,163
0
128

1,214
83
24
20
290
585
712
242
207
829
669
21
51

713
170
45
64
346
-149
383
285
-460
96
74
9
165

5
-41
-8
47
42
-130
159
160
272
110
-15
6
423

753
39
21
-209
96
831
439
315
67
-33
-96
4
61

-567
-95
62
38
-48
-501
16
25
-402
210
135
-7
-125

-452
-21
12
6
-93
-216
385
366
-6
267
156
20
-215

-234

71

548

78

55

44

23

136

110

45

120,550
87,533

118,764
102,027

121,059
99,460

10,291
9,083

14,434
11,651

12,242
8,637

9,929
7,681

14,989
10,812

14,397
12,315

12,687
10,582

33,017

16,737

21,599

1,207

2,783

3,605

2,248

4,177

2,082

2,105

3,666

2,275

4,274

2,121

2,168

-136
93
156
-18
-52
359
-155
130
350
1,957
1,149
-2
-23

1,692
-25
213
44
-67
1,856
86
-365
182
526
237
12
35

2

19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales ( - )
22 Foreign countries
?3
?4
75
76
77
78
79
30
31
3?
33
34
35

173,293
188,419

Germany
Netherlands
United Kingdom
Latin America and Caribbean
Middle East1
Japan
Africa
Other countries

36 Nonmonetary international and
regional organizations

32,664

17,208

21,873

1,307

2,842

18,907
372
-238
850
-511
17,965
1,116
3,686
-182
9,025
6,292
56
57

10,079
373
-377
172
284
10,383
1,906
4,291
76
1,104
747
%
-344

11,039
669
1,130
292
936
8,260
1,175
1,683
1,619
6,460
4,707
32
-135

1,189
34
114
84
-56
789
247
188
-25
-301
-240
8
3

1,749
86
400
23
206
932
374
-118
20
831
544
10
-23

2,113
2
-120
45
318
1,784
68
524
160
898
685
-1
-96

856
15
-1
-1
9
564
34
378
430
558
285
-1
20

1,727
-26
106
47
116
1,405
-40
172
449
2,015
1,818
4
-53

353

-471

-275

-100

-58

-62

-27

-97

-39

-63

-3,155
10,172
13,327
-807
22,041
22,848

-3,521
9,586
13,107
-2,168
22,186
24,354

-2,165
9,906
12,071
-1,171
23,409
24,580

-2,348
11,292
13,640
-4,156
33,230
37,386

Foreign securities
37 Stocks, net purchases, or sales ( - ) 3
38
39
40 Bonds, net purchases, or sales (—)
41
Foreign sales
42

-13,062
109,850
122,912
-5,493
234,770
240,263

-9,205
122,641
131,846
-22,487
314,545
337,032

-27,619
95,401
123,020
-13,838
268,242
282,079

-2,540
7,942
10,482
-254
20,779
21,033

-3,292
8,627
11,919
-489
22,147
22,636

-3,592
9,973
13,565
-1,547
19,916
21,462

43 Net purchases, or sales ( - ) , of stocks and bonds

-18,556

-31,692

-41,456

-2,793

-3,781

-5,138

-3,962

-5,689

-3,336

-6,504

44 Foreign countries

-18,594

-29,019

-40,316

-2,917

-3,252

-5,418

-4,476

-5,794

-3,516

-6,137

45
46
47 Latin America and Caribbean
48
49
50 Other countries

-17,663
-3,730
426
2,532
93
-251

-8,418
-7,502
-8,954
-3,828
-137
-180

-24,086
-8,316
398
-8,965
-126
779

348
-2,290
8
-987
10
-4

-419
-943
-1,633
-159
4
-101

-3,030
-1,011
-26
-1,172
-198
19

-5,035
278
130
105
8
38

-4,769
-1,009
108
-305
-7
188

-2,670
-352
454
-1,185
2
235

-5,0%
-1,619
570
-197
1
204

38

-2,673

-1,140

123

-529

280

514

105

180

-367

51 Nonmonetary international and
regional organizations

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-




ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data.

A66

International Statistics • February 1992

3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Transactions

Millions of dollars
1991
Country or area

1989

1991

1990
Jan.Oct.

Apr.

May

June

July

Aug.

Sept.r

Oct."

Transactions, net purchases or sales ( - ) during period1
1 Estimated total2

54,203

19,439

12,110

2,826

15,31R

-5,830

725

1,356

-3,862

403

2 Foreign countries2

52,301

19,276

12,809

2,583

15,293r

-5,337

407

722

-2,804

-208

36,286
1,048
7,904
-1,141
693
1,098
20,198
6,508
-21
698

19,040
10
5,880
1,077
1,152
112
-1,414
12,202
13
-4,617

2,134
345
-5,303
-2,889
-1,170
678
3,626
6,830
16
-474

-1,358
37
-549
-292
-410
-622
260
214
5
566

4,409"
113r
1,433
-165 r
560
230
1,699
540
-3
342

-4,250
-102
-1,458
-794
31
207
-1,249
-886
3
-114

-1,082
-109
684
-997
-299
-218
-398
258
-3
395

1,554
71
-360
-372
-239
292
388
1,774
0
-118

464
-190
195
-426
3
-184
-32
1,090
8
78

193
1
326
549
46
195
-334
-590
0
-838

464
311
-322
475
13,297
1,681
116
1,439

14,730
33
3,939
10,757
-11,031
-14,864
313
842

14,308
-119
6,908
7,519
-1,703
-3,936
392
-1,848

5,561
2
2,969
2,590
-2,179
-3,379
16
-22

10,481
2
5,687
4,793
12
711
1
48

161
20
-233
374
-879
1,422
104
-358

1,669
7
242
1,420
-491
45
7
-91

1,436
-20
-2,010
3,466
-2,115
-364
27
-62

-1,076
-2
-1,883
809
-2,067
-3,625
10
-213

-2,086
20
-14
-2,092
3,465
4,111
39
-981

1,902
1,473
231

163
287
-2

-700
-1,340
217

243
35
225

18r
43r
-186

-493
-21
-9

318
168
150

634
654
-146

-1,058
-1,211
152

611
287
72

52,301
26,840
25,461

19,276
23,218
-3,942

12,809
-4,926
17,735

2,583
886
1,698

15,293r
2,020
13,273r

-5,337
-5,832
495

407
-704
1,111

722
-289
1,011

-2,804
830
-3,634

-208
447
-655

8,148
-1

-387
0

-6,752
20

-513
5

-562
0

-505
0

-643
0

-3,731
0

-795
0

316
0

3 Europe2
4
Belgium-Luxembourg
5 Germany2
6
Netherlands
7
Sweden
8
Switzerland2
9
United Kingdom
10 Other Western Europe
11
Eastern Europe
12 Canada
13 Latin America and Caribbean
14 Venezuela
15
Other Latin America and Caribbean
16 Netherlands Antilles
.17 Asia
18 Japan
19
20 M o t h e r
21 Nonmonetary international and regional organizations
22
International
23
Latin American regional
MEMO

24 Foreign countries2
25
Official institutions
Other foreign2
26
Oil-exporting countries
27 Middle East 3
28 Africa4

1. Estimated official and private transactions in marketable U.S. Treasury
securities having an original maturity of more than one year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes, denominated in foreign currencies, publicly
issued to private foreign residents.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates

A67

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on Dec. 31, 1991

Rate on Dec. 31, 1991
Country

Country

Month
effective
Austria..
Belgium .
Canada..
Denmark
France'..

Rate on Dec. 31, 1991

Country

8.0
8.5
7.67
9.5
9.5

Dec.
Dec.
Dec.
Dec.
Dec.

1991
1991
1991
1991
1991

Percent

Germany, Fed. Rep. of,
Italy
Japan
Netherlands

1. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts

8.0

12.0

4.5
8.5

Month
effective
Dec.
Nov.
Dec.
Dec.

1991
1991
1991
1991

Percent

10.50
7.0

Norway
Switzerland
United Kingdom2

Month
effective
July 1990
Aug. 1991

or makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.

3.27 FOREIGN SHORT-TERM INTEREST RATES
Averages of daily figures, percent per year
1991
Type or country

1989

1990

1991
June

1
2
3
4
5
6
7
8
9
10

July

Aug.

Sept.

Oct.

Nov.

Dec.

Eurodollars
United Kingdom
Canada
Germany
Switzerland

9.16
13.87
12.20
7.04
6.83

8.16
14.73
13.00
8.41
8.71

5.86
11.47
9.07
9.15
8.01

6.08
11.21
8.83
8.95
7.89

6.01
11.04
8.78
9.06
7.74

5.65
10.85
8.73
9.23
7.80

5.50
10.24
8.59
9.16
7.90

5.34
10.38
8.29
9.28
8.09

4.96
10.44
7.75
9.33
7.89

4.48
10.73
7.50
9.48
7.99

Netherlands
France
Italy
Belgium
Japan

7.28
9.27
12.44
8.65
5.39

8.57
10.20
12.11
9.70
7.75

9.19
9.49
12.04
9.30
7.33

9.08
9.59
11.48
9.08
7.79

9.09
9.46
11.74
9.12
7.56

9.27
9.46
11.86
9.25
7.31

9.21
9.30
11.63
9.01
6.70

9.27
9.20
11.44
9.22
6.41

9.32
9.41
11.66
9.39
6.22

9.59
9.97
12.46
9.61
6.02

NOTE. Rates are for three-month interbank loans, with the following exceptions: Canada, finance company paper; Belgium, three-month Treasury bills; and
Japan, CD rate.




A68

International Statistics • F e b r u a r y 1992

3.28 FOREIGN EXCHANGE RATES 1
Currency units per dollar
1991
Country/currency

1989

1990

1991
July

1
2
3
4
5
6
7
8
9
10

Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

11
12
13
14
15
16
17
18
19
20

Hong Kong/dollar
India/rupee
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo

21
22
23
24
25
26
27
28
29
30

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2

Aug.

Sept.

Oct.

Nov.

Dec.

79.186
13.236
39.409
1.1842
3.7673
7.3210
4.2963
6.3802
1.8808
162.60

78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59

77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63

77.156
12.562
36.751
1.1493
5.3693
6.9030
4.3295
6.05%
1.7852
195.46

78.235
12.267
35.890
1.1452
5.3725
6.73%
4.2325
5.9244
1.7435
192.69

79.369
11.910
34.878
1.1370
5.3869
6.5367
4.1241
5.7621
1.6933
188.07

79.251
11.887
34.787
1.1279
5.3917
6.5246
4.1155
5.7583
1.6893
188.50

78.660
11.408
33.391
1.1302
5.3994
6.2947
4.1953
5.5391
1.6208
183.68

77.122
11.003
32.198
1.1467
5.4232
6.0831
4.2447
5.3406
1.5630
179.52

7.8008
16.213
141.80
1,372.28
138.07
2.7079
2.1219
59.561
6.9131
157.53

7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70

7.7712
22.712
158.26
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77

7.7610
25.613
136.48
1,329.55
137.83
2.7868
2.0114
56.681
6.%27
154.20

7.7646
25.846
153.38
1,303.31
136.82
2.7806
1.9650
57.353
6.8118
149.72

7.7524
25.834
157.87
1,266.25
134.30
2.7577
1.9084
57.989
6.6266
145.64

7.7542
25.797
158.21
1,263.20
130.77
2.7469
1.9039
56.306
6.6136
145.41

7.7591
25.802
164.75
1,221.04
129.63
2.7412
1.8269
56.352
6.3643r
141.43

7.7738
25.818
170.46
1,182.21
128.04
2.7417
1.7618
55.256
6.1558
138.90

1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82

1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41

1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74

1.7555
2.8819
731.76
111.81
41.213
6.4609
1.5481
26.982
25.745
165.13

1.7269
2.8704
733.90
108.92
41.723
6.3311
1.5201
26.730
25.720
168.41

1.7002
2.8316
744.18
106.28
41.935
6.1652
1.4803
26.559
25.617
172.65

1.6940
2.8314
753.54
106.54
42.179
6.1552
1.4781
26.406
25.397
172.31

1.6709
2.7916
757.44
102.56
42.374
5.9246
1.4348
25.975
25.497
177.%

1.6453
2.7665
761.68
99.70
42.523
5.7158
1.3855
25.759
25.431
182.72

89.09

89.84

95.19

90.69

87.98

85.65

MEMO

31 United States/dollar3

98.60

1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical
release. For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the




93.47

91.18

currencies often industrial countries. The weight for each of the ten countries is
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).

A69

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List

Published Semiannually, with Latest BULLETIN Reference

Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Quarterly

Issue
December 1991

Page
A86

Data Published Irregularly, with Latest BULLETIN Reference

Title and Date

Issue

Page

Assets and liabilities of commercial banks
December 31, 1990
March 31, 1991
June 30, 1991
September 30, 1991

May
August
November
February

1991
1991
1991
1992

A72
A72
A70
A70

Terms of lending at commercial banks
February 1991
May 1991
August 1991
November 1991

August
October
December
February

1991
1991
1991
1992

A78
All
A70
A76

Assets and liabilities of U.S. branches and agencies of foreign banks
December 31, 1990
March 31, 1991
June 30, 1991
September 30, 1991

June
November
December
February

1991
1991
1991
1992

A72
A76
A74
A80

Pro forma balance sheet and income statements for priced service operations
June 30, 1990
March 31, 1991
June 30, 1991
September 30, 1991

October
August
November
January

1990
1991
1991
1992

A72
A82
A80
A70

Assets and liabilities of life insurance companies
June 30, 1991

December 1991

A79

Special tables follow.




A70

Special Tables • February 1992

4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, September 30, 1991
Millions of dollars
Banks with foreign offices
Item

Banks with domestic
offices only

Total
Total

1 Total assets6
2 Cash and balances due from depository institutions
3 Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks

Foreign

Domestic

Over 100

Under 100

3,415,788

1,918,010

429,474

1,558,727

1,125,806

371,971

299,183
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

208,200
92,294
n.a.
n.a.
33,686
67,222
14,997

88,727
1,727
n.a.
n.a.
22,095
64,759
145

119,473
90,567
75,037
15,530
11,591
2,463
14,852

67,297
35,721
25,238
10,483
18,096
3,595
9,887

23,685
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

MEMO

9 Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation
12
13
14
15
16
17
18
19
20
21
72
23
74
75

76
27

U.S. Treasury securities
U.S. government agency and corporation obligations
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
All other
Securities issued by states and political subdivisions in the United States
Other domestic debt securities
All holdings of private certificates of participation in pools of
residential mortgages
All other domestic debt securities
Foreign debt securities
Equity securities
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities

28 Federal funds sold and securities purchased under agreements to resell
79
Federal funds sold
30
Securities purchased under agreements to resell
31 Total loans and lease financing receivables, gross
LESS: Unearned income on loans
32
33 Total loans and leases (net of unearned income)
34
LESS: Allowance for loan and lease losses
35
LESS: Allocated transfer risk reserves
36
EQUALS: Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
Construction and land development
38
39
Farmland
1-4 family residential properties
40
41
Revolving, open-end loans, extended under lines of credit
47,
43
Multifamily (5 or more) residential properties
44
Nonfarm nonresidential properties
45
46
To commercial banks in the United States
47
To other depository institutions in the United States
48
To banks in foreign countries
49 Loans to finance agricultural production and other loans to farmers
50 Commercial and industrial loans
51
To U.S. addressees (domicile)
52 To non-U.S. addressees (domicile)
53 Acceptances of other banks
54
U.S. banks
55
Foreign banks
56 Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
Credit cards and related plans
57
Other (includes single payment and installment)
58
59 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
Taxable

60
61
6?
63
64
65
66
67
68
69
70
71
72
73
74
75

Loans to foreign governments and official institutions
Other loans
Loans for purchasing and carrying securities
All other loans
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Intangible assets
Other assets




n.a.

n.a.

n.a.

2,815,284

1,483,833

n.a.

7,282
n.a.

13,727

9,106

999,090

332,361

657,630

269,248

30,045

239,203

269,471

118,911

486,455
n.a.
n.a.

186,171
59,713
126,458

3,222
1,599
1,622

182,949
58,113
124,836

206,020
85,017
121,002

94,265
n.a.
n.a.

153,127
n.a.
74,287
n.a.

75,272
51,186
24,288
28,200

1,248
374
711
1,103

74,024
50,812
23,577
27,097

55,416
65,586
34,351
24,054

22,439
n.a.
15,648
n.a.

3,487
56,429
n.a.
11,452
5,568
3,465
2,339
236
5,884

1,989
26,211
25,112
5,477
1,837
895
1,029
88
3,641

11
1,093
23,796
1,213
111
22
90
1
1,103

1,979
25,118
1,316
4,264
1,726
873
939
87
2,538

1,269
22,785
409
4,638
2,736
1,672
1,156
91
1,902

228
7,433
n.a.
1,337
996
898
154
56
341

161,311
133,085
28,227
2,062,131
11,670
2,050,461
53,698
421
1,996,342

86,665
64,266
22,399
1,168,241
4,406
1,163,835
35,494
420
1,127,920

611
n.a.
n.a.
204,168
1,276
202,891
n.a.
n.a.
n.a.

86,054
n.a.
n.a.
964,074
3,130
960,944
n.a.
n.a.
n.a.

54,035
48,459
5,575
695,969
5,517
690,452
14,869
0
675,583

20,611
20,359
252
197,921
1,747
196,174
3,335
0
192,839

842,962
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
48,919
n.a.
n.a.
n.a.

410,010
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
39,884
21,229
1,197
17,458

25,529
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
15,488
407
252
14,829

384,481
69,128
2,042
191,736
36,842
154,894
10,659
110,916
24,396
20,822
945
2,629

330,727
33,448
6,170
171,896
28,672
143,224
9,483
109,730
8,759
8,259
433
67

102,225
6,500
10,109
56,778
3,344
53,434
2,002
26,836
276
n.a.
n.a.
n.a.

35,839
569,574
n.a.
n.a.
1,966
n.a.
n.a.

5,672
403,941
327,928
76,013
814
366
447

282
97,859
23,632
74,227
355
22
332

5,390
306,082
304,295
1,787
459
344
115

10,060
130,496
130,130
366
687
n.a.
n.a.

20,107
35,137
n.a.
n.a.
465
n.a.
n.a.

383,802
131,148
252,655

158,371
51,271
107,100

17,600
n.a.
n.a.

140,771
n.a.
n.a.

189,251
77,307
111,945

36,180
2,570
33,610

30,579
1,468
29,112
112,336
n.a.
n.a.
n.a.
n.a.

17,410
970
16,440
102,314
25,596
76,719
n.a.
n.a.

275
138
137
42,362
24,566
17,795
n.a.
n.a.

17,135
832
16,303
59,953
1,029
58,924
13,092
45,832

11,712
433
11,279
8,446
88
8,359
1,485
6,873

1,458
65
1,393
1,576
n.a.
n.a.
n.a.
n.a.

36,154
71,566
51,318
25,988
3,349
17,061
n.a.
12,338
119,701

29,825
69,834
27,609
15,499
2,900
16,749
n.a.
7,331
86,054

4,418
36,877
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

25,407
32,915
n.a.
n.a.
n.a.
n.a.
45,706
n.a.
n.a.

5,831
1,595
17,571
8,301
399
292
n.a.
4,598
26,664

498
136
6,138
2,188
50
20
n.a.
409
6,983

Commercial Banks

A71

4.20—Continued
Banks with foreign offices
Item

Banks with domestic
offices only

Total
Total

Foreign

Domestic

Over 100

76 Total liabilities, limited-life preferred stock, and equity capital

3,415,788

1,918,010

n.a.

n.a.

1,125,806

77 Total liabilities7
78
Limited-life preferred stock

3,186,801
5

1,808,439
0

429,474
n.a.

1,449,156
n.a.

1,040,219
3

79 Total deposits
80
Individuals, partnerships, and corporations
81
U.S. government
82
States and political subdivisions in the United States
83
Commercial banks in the United States
84
Other depository institutions in the United States
85
Banks in foreign countries
86
Foreign governments and official institutions
87
Certified and official checks
88
Mother8

2,651,134
n a.
n.a.
n.a.
n.a.
n.a.
n.a.
n. a.
18,908

1,390,720
n a.
n a.
n a.
n a.
n.a.
n.a.
23,254
10,952

301,803
179,828
n.a.
n. a.
n.a.
n.a.
n a.
22,211
1,232
98,532

1,088,917
1,003,020
4,615
37,355
22,749
3,972
6,444
1,043
9,720
n.a.

930,939
868,200
1,951
43,210
8,032
3,409
114
48
5,975
n.a.

89 Total transaction accounts
90
Individuals, partnerships, and corporations
91
U.S. government
92
States and political subdivisions in the United States
93
Commercial banks in the United States
94
Other depository institutions in the United States
95
Banks in foreign countries
96
Foreign governments and official institutions
97
Certified and official checks
98
M other

340,613
287,831
3,445
10,977
18,926
2,852
5,955
908
9,720
n.a.

241,737
213,610
1,692
13,071
6,054
1,231
88
16
5,975
n.a.

99 Demand deposits (included in total transaction accounts)
100 Individuals, partnerships, and corporations
101
U.S. government
102 States and political subdivisions in the United States
103
Commercial banks in the United States
104 Other depository institutions in the United States
105 Banks in foreign countries
106
Foreign governments and official institutions
107
Certified and official checks
108 All other
109 Total nontransaction accounts
110 Individuals, partnerships, a,* corporations
111
U.S. government
112
States and political subdivisions in the United States
113
Commercial banks in the United States
114
U.S. branches and agencies of foreign banks
115
Other commercial banks in the United States
116 Other depository institutions in the United States
117
Banks in foreign countries
118
Foreign branches of other U.S. banks
119
Other banks in foreign countries
120 Foreign governments and official institutions
121
M other

252,530
203,237
3,402
7,637
18,926
2,752
5,951
907
9,720
n.a.
748,304
715,190
1,169
26,378
3,823
267
3,555
1,120
489
487
136
n.a.

141,273
120,898
1,626
5,408
6,052
1,209
88
16
5,975
n.a.
689,201
654,590
258
30,138
1,978
191
1,787
2,178
26
17
9
33
n.a.

122
123
124
125
126
127
128
129
130
131

Federal funds purchased and securities sold under agreements to repurchase..
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and I B F s . . .
All other liabilities.
Total equity capital9

132
133
134
135
136
137

Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits

n a.

n.a.

180,540
122,514
58,026
n.a.
91,226
16,875
22,844
n.a.
78,222
109,572

788
n.a.
n. a.
n.a.
36,750
3,461
n. a.
n.a.
n.a.
n. a.

179,751
n.a.
n.a.
28,012
54,476
13,414
n.a.
24,485
n.a.
n.a.

58,063
30,637
27,427
4,463
27,887
292
1,330
n.a.
17,245
85,584

718

241,689
154,372
87,317
n.a.
120,286
17,187
24,309
n.a.
99,357
228,981

MEMO

138
139
140
141
142
143
144

n.a.

340

377
65,720
43,960
28,404
2,880

1,892
61,220
19,985
16,347
5,176

25,523

n.a.

n. a.

Quarterly averages
145 Total loans
146 Obligations (other than securities) of states and political subdivisions
in the United States
147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148
Money market deposit accounts (MMDAs)
149 Other savings deposits
150 Time certificates of deposit of $100,000 or more
151
All other time deposits
152 Number of banks
Footnotes appear at the end of table 4.22




150,711
92,843
330
112,452
3,654
98,699
789,666

931,601

n.a.

11,171

216,720
100,386
260,779
144,263
26,156
87,299
836,387

686,217

17,476

225

n.a.

98,772

215,176
97,947
151,098
285,922
12,050

11,527

85,150

148,320
91,020
114,371
332,732

n.a.

2,754

Under 100

A70

Special Tables • February 1992

4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices 1,2,6
Consolidated Report of Condition, September 30, 1992
Millions of dollars
Members
Item

Nonmembers

Total
Total

National

State

2,684,533

2,090,125

1,668,214

421,911

594,408

186,770
100,274
26,013
29,686
6,058
24,739

154,164
89,677
21,246
19,263
4,310
19,666

127,125
73,662
17,697
16,136
3,469
16,160

27,039
16,015
3,549
3,127
841
3,506

32,606
10,597
4,767
10,423
1,748
5,072

2,300,159

1,767,082

1,428,983

338,099

533,077

508,674
143,131
245,838

378,713
100,860
192,074

292,214
80,849
148,767

86,499
20,011
43,307

129,961
42,271
53,764

129,440
116,399
57,928
51,151
3,247
47,904
1,725
8,902
4,462
2,545
2,095
178
4,441

106,085
85,989
42,481
36,875
2,604
34,271
1,218
5,205
1,785
1,350
467
32
3,419

84,746
64,021
31,687
25,663
2,217
23,446
8%
4,353
1,572
1,288
313
29
2,781

21,339
21,967
10,794
11,212
387
10,825
322
852
213
61
154
3
639

23,354
30,410
15,447
14,276
643
13,632
506
3,697
2,676
1,195
1,628
146
1,021

140,089
48,459
5,575
1,660,043
8,647
1,651,3%

113,965
30,842
2,813
1,280,586
6,182
1,274,404

90,458
27,344
2,544
1,051,349
5,038
1,046,311

23,507
3,498
269
229,237
1,144
228,093

26,124
17,617
2,762
379,457
2,465
376,991

715,208
102,576
8,212
363,633
65,514
298,118
20,143
220,645
29,081
1,378
2,697
15,449

532,882
79,458
5,130
271,957
50,194
221,763
14,566
161,771
20,105
1,216
2,591
10,995

450,109
65,481
4,428
230,871
42,085
188,787
12,237
137,092
16,347
1,133
1,211
9,946

82,773
13,978
701
41,085
8,109
32,976
2,329
24,679
3,758
83
1,381
1,049

182,326
23,117
3,082
91,676
15,320
76,356
5,576
58,875
8,975
162
105
4,454

436,578
434,426
2,152

356,861
355,008
1,853

283,315
281,979
1,336

73,546
73,029
517

79,717
79,418
299

1,146
591
155

711
415
95

524
264
94

186
151
2

435
176
60

49 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
50 Credit cards and related plans
51
Other (includes single payment and installment)
52 Loans to foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
54 Taxable
55
Tax-exempt
56 Other loans
57
Loans for purchasing and carrying securities
58
All other loans

330,022
77,307
111,945
1,117
28,846
1,265
27,581
67,282
14,577
52,705

241,831
42,288
68,270
1,071
23,853
1,043
22,810
62,203
13,392
48,811

204,925
39,780
57,759
953
17,841
779
17,062
43,503
7,043
36,460

36,907
2,508
10,512
118
6,012
264
5,748
18,700
6,349
12,352

88,191
35,019
43,675
46
4,994
222
4,772
5,079
1,186
3,893

59
60
61
62

31,238
13,447
45,706
184,156

26,267
12,188
40,457
156,692

21,543
9,089
17,185
103,018

4,724
3,099
23,272
53,674

4,972
1,260
5,249
27,465

1 Total assets6
2 Cash and balances due from depository institutions
3
Cash items in process of collection and unposted debits
4
Currency and coin
Balances due from depository institutions in the United States
5
Balances due from banks in foreign countries and foreign central banks
6
7
Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11
U.S. government agency and corporation obligations
12
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
13
All other
14 Securities issued by states and political subdivisions in the United States
15 Other domestic debt securities
16
All holdings of private certificates of participation in pools of residential mortgages ..
17
All other
18 Foreign debt securities
19 Equity securities
20
Marketable
21
Investments in mutual funds
22
Other
23
Less: Net unrealized loss
24
Other equity securities
25 Federal funds sold and securities purchased under agreements to resell10
26
Federal funds sold
27
Securities purchased under agreements to resell
28 Total loans and lease financing receivables, gross
29
LESS: Unearned income on loans
30 Total loans and leases (net of unearned income)
31
32
33
34
35
36
37
38
39
40
41
42

Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers

43 Commercial and industrial loans
44 To U.S. addressees (domicile)
45
To non-U.S. addressees (domicile)
46 Acceptances of other banks"
47
Of U.S. banks
48
Of foreign banks

Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets




Commercial Banks
4.21—Continued
Members
Item

Total
Total

National

State

63 Total liabilities and equity capital

2,684,533

2,090,125

1,668,214

421,911

64 Total liabilities4

2,489,374

1,942,879

1,552,456

390,423

65 Total deposits
66 Individuals, partnerships, and corporations
67 U.S. government
68 States and political subdivisions in the United States
69 Commercial) banks in the United States
70 Other depository institutions in the United States
71
Banks in foreign countries
72 Foreign governments and official institutions
73 Certified and official checks

2,019,856
1,871,220
6,565
80,564
30,781
7,381
6,558
1,092
15,694

1,551,298
1,434,133
5,812
59,023
27,486
5,253
6,013
979
12,598

1,269,817
1,177,321
4,957
48,722
21,583
4,214
3,569
595
8,856

281,481
256,812
855
10,301
5,904
1,039
2,445
384
3,742

74 Total transaction accounts
75 Individuals, partnerships, and corporations
76 U.S. government
77 States and political subdivisions in the United States
78 Commercial banks in the United States
79 Other depository institutions in the United States
80 Banks in foreign countries
81 Foreign governments and official institutions
82 Certified and official checks

582,351
501,441
5,138
24,048
24,980
4,083
6,044
923
15,694

466,705
397,655
4,446
18,882
23,118
3,352
5,772
882
12,598

376,967
324,222
3,732
15,471
18,110
2,650
3,400
526
8,856

89,738
73,433
714
3,411
5,008
702
2,371
356
3,742

83 Demand deposits (included in total transaction accounts)
84 Individuals, partnerships, and corporations
85 U.S. government
86 States and political subdivisions in the United States
87 Commercial banks in the United States
88 Other depository institutions in the United States
89 Banks in foreign countries
90 Foreign governments and official institutions
91 Certified and official checks

393,803
324,134
5,028
13,045
24,978
3,962
6,039
922
15,694

323,522
262,770
4,370
10,774
23,118
3,238
5,771
882
12,598

257,129
211,164
3,667
8,868
2,538
3,400
526
8,856

66,392
51,606
703
1,906
5,008
700
2,371
356
3,742

1,437,505
1,369,780
1,427
56,516
5,801
458
5,343
3,299
515
18
496
168

1,084,593
1,036,479
1,366
40,140
4,368
210
4,159
1,902
242
13
229
97

892,850
853,100
1,225
33,250
3,473
76
3,397
1,564
169
10
158
69

191,744
183,379
141
6,890
896
134
762
337
73
3
71
28

237,815
30,637
27,427
32,474
82,363
13,706
1,330
24,485
101,830

204,357
21,864
13,841
30,072
58,691
12,446
921
18,195
85,094

144,445
18,207
11,722
20,408
45,121
9,316
845
62,503

59,912
3,657
2,119
9,665
13,569
3,129
76
2,013
22,591

195,159

147,246

115,758

31,488

2,269
126,940
63,945
44,751
8,057

905
98,176
46,992
31,777
2,942

887
81,043
40,066
27,281
2,527

18
17,133
6,926
4,4%
415

36,694

28,835

24,754

4,081

367,431
193,229
590,320
256,715
29,810
185,997
1,626,053

290,217
149,390
436,113
184,606
24,267
141,540
1,227,777

239,003
111,803
368,131
158,818
15,094
118,358
1,012,687

51,215
37,587
67,981
25,788
9,173
23,182
215,089

1,617,818
29,003

1,243,513
24,106

1,020,691
17,811

222,822
6,295

183,923

139,271

116,152

23,119

363,496
188,967
265,469
618,653

286,901
145,758
193,208
458,012

234,912
109,107
165,456
379,520

51,989
36,651
27,752
78,493

2,979

1,614

1,355

259

92 Total nontransaction accounts
93 Individuals, partnerships, and corporations
94
U.S. government
95
States and political subdivisions in the United States
96 Commercial banks in the United States
97
U.S. branches and agencies of foreign banks
98
Other commercial banks in the United States
99 Other depository institutions in the United States
100 Banks in foreign countries
101
Foreign branches of other U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
104
105
106
107
108
109
110
111
112

Federal funds purchased and securities sold under agreements to repurchase12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities

113 Total equity capital'
MEMO

114
115
116
117
118
119

Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less

120
121
122
123
124
125
126

Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW accounts)
Total time and savings deposits

Quarterly averages
127 Total loans
128 Obligations (other than securities) of states and political subdivisions in the United States . . .
129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
130
131
132
133

Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits

134 Number of banks
Footnotes appear at the end of table 4.22




18,110

16,182

A73

A70

Special Tables • February 1992

4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1-2-6
Consolidated Report of Condition, September 30, 1992
Millions of dollars
Members
Nonmembers

Total
Total
1 Total assets6

National

State

3,056,504

2,236,144

1,783,337

452,807

820,361

210,456
29,383
30,116
150,957

163,687
22,590
16,844
124,252

134,788
18,769
13,680
102,339

28,899
3,821
3,164
21,913

46,769
6,793
13,272
26,705

2,635,855

1,898,639

1,532,507

366,132

737,217

627,585
483,234
73,576
60,537
3,476
57,061
10,239
5,458
3,443
2,249
235
4,781
160,700
68,818
5,828
1,857,964
10,394
1,847,570

425,591
330,591
48,135
41,019
2,700
38,318
5,847
2,186
1,744
494
52
3,661
123,079
39,859
2,910
1,356,856
6,887
1,349,969

330,336
260,361
36,145
28,949
2,287
26,662
4,881
1,921
1,634
333
46
2,960
97,640
34,445
2,625
1,110,114
5,584
1,104,530

95,255
70,230
11,990
12,069
414
11,656
966
265
110
161
6
701
25,439
5,413
285
246,742
1,304
245,438

201,994
152,643
25,441
19,518
775
18,743
4,392
3,272
1,699
1,755
183
1,120
37,621
28,959
2,918
501,108
3,506
497,601

817,433
109,076
18,320
420,410
68,858
351,552
22,145
247,482 .

571,881
82,187
8,333
293,763
51,687
242,076
15,312
172,287

480,051
67,458
7,011
247,520
43,158
204,362
12,816
145,247

91,830
14,729
1,322
46,244
8,529
37,715
2,496
27,040

245,552
26,889
9,988
126,647
17,171
109,476
6,833
75,195

33,431
35,557
471,715
1,611

24,083
17,790
371,235
892

18,823
15,391
294,009
681

5,259
2,398
77,225
211

9,349
17,767
100,480
719

366,202
79,877
145,554
30,304
1,330
28,974
69,975
31,736
13,467
45,706
196,726

256,292
43,597
81,421
24,387
1,079
23,307
63,870
26,427
12,204
40,457
161,614

216,322
40,974
67,962
18,287
812
17,475
44,870
21,679
9,105
17,185
106,937

39,970
2,623
13,459
6,100
267
5,832
19,001
4,748
3,099
23,272
54,677

109,910
36,280
64,133
5,917
250
5,667
6,104
5,309
1,263
5,249
35,112

48 Total liabilities and equity capital

3,056,504

2,236,144

1,783,337

452,807

820,361

4

49 Total liabilities

2,827,518

2,075,974

1,657,510

418,463

751,544

50 Total deposits
51 Individuals, partnerships, and corporations
52 U.S. government
53 States and political subdivisions in the United States
54 Commercial banks in the United States
55 Other depository institutions in the United States
56 Certified and official checks
57 Allother

2,349,331
2,175,457
7,218
100,849
31,957
8,459
17,676
7,717

1,680,520
1,553,737
6,029
66,386
28,235
5,634
13,455
7,042

1,371,800
1,271,753
5,135
54,676
22,016
4,495
9,524
4,200

308,719
281,984
894
11,710
6,219
1,139
3,931
2,842

668,812
621,720
1,188
34,462
3,722
2,825
4,220
675

58 Total transaction accounts
59 Individuals, partnerships, and corporations
60 U.S. government
61
States and political subdivisions in the United States
62 Commercial banks in the United States
63 Other depository institutions in the United States
64 Certified and official checks
65 All other

667,828
577,303
5,695
30,300
25,580
4,291
17,676
6,984

501,639
428,662
4,635
21,118
23,655
3,447
13,455
6,668

404,952
349,156
3,892
17,318
18,400
2,727
9,524
3,934

96,687
79,506
743
3,799
5,255
720
3,931
2,733

166,189
148,641
1,060
9,182
1,925
843
4,220
317

66 Demand deposits (included in total transaction accounts)
67
Individuals, partnerships, and corporations
68 U.S. government
69 States and political subdivisions in the United States
70 Commercial banks in the United States
71 Other depository institutions in the United States
72 Certified and official checks
73 Allother

436,283
361,550
5,571
14,769
25,576
4,163
17,676
6,978

341,459
278,396
4,556
11,400
23,654
3,332
13,455
6,666

271,275
223,598
3,824
9,382
18,399
2,613
9,524
3,934

70,184
54,798
732
2,018
5,255
719
3,931
2,732

94,823
83,154
1,015
3,369
1,922
831
4,220
312

1,681,504
1,598,154
1,522
70,549
6,377
4,169
732

1,178,881
1,125,076
1,394
45,269
4,581
2,187
374

966,849
922,597
1,244
37,358
3,616
1,768
266

212,032
202,478
151
7,911
964
419
109

502,623
473,079
128
25,280
1,797
1,982
358

2 Cash and balances due from depository institutions
3 Currency and coin
4 Noninterest-bearing balances due from commercial banks
5 Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations
Securities issued by states and political subdivisions in the United States
Other debt securities
All holdings of private certificates of participation in pools of residential mortgages ..
All other
Equity securities
Marketable
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities
Federal funds sold and securities purchased under agreements to resell1
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)

Total loans, gross, by category
25 Loans secured by real estate
26 Construction and land development
27 Farmland
28
1-4 family residential properties
29
Revolving, open-end loans, and extended under lines of credit
30
All other loans
31 Multifamily (5 or more) residential properties
32 Nonfarm nonresidential properties
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47

Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Credit cards and related plans
Other (includes single payment installment)
Obligations (other than securities) of states and political subdivisions in the United States
Taxable
Tax-exempt
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets

74 Total nontransaction accounts
75 Individuals, partnerships, and corporations
76 U.S. government
77 States and political subdivisions in the United States
78 Commercial banks in the United States
79 Other depository institutions in the United States
80 Allother




Commercial

Banks

A75

4.22—Continued
Members
Nonmembers

Total

Item

Total
81
82
83
84
85
86
87
88
89

205,794
22,501
14,641
30,216
59,314
12,462
980
18,195
86,688

145,481
18,612
12,353
20,526
45,665
9,333
897
16,182
63,809

60,313
3,888
2,289
9,690
13,649
3,130
83
2,013
22,879

35,107
9,358
14,650
2,622
24,223
1,263
486
6,290
19,032

228,986

160,170

125,826

34,343

68,816

34,647
17,300
3,615
1,162
550
981
160
3,315
6,866

33,560
17,200
3,503
1,118
471
967
160
3,229
6,655

18,865
7,539
2,968
736
136
616
160
2,043
4,466

14,695
9,661
535
382
335
350
0
1,186
2,189

1,087
100
112
44
79
15
0
86
210

146,320
64,772
45,524
8,660

105,535
47,188
31,965
3,104

86,882
40,186
27,398
2,628

18,653
7,002
4,567
476

40,785
17,584
13,559
5,556

36,865

28,861

24,770

4,091

8,004

405,928
223,480
730,156
291,052
30,887
227,783
1,913,049

306,613
161,251
487,943
198,442
24,632
158,134
1,339,060

251,916
121,111
408,792
169,639
15,391
131,908
1,100,525

54,697
40,140
79,151
28,803
9,241
26,226
238,535

99,315
62,229
242,213
92,611
6,255
69,649
573,988

1,811,610

1,318,288

1,078,293

239,995

493,323

225,999

155,914

129,701

26,213

70,085

401,194
218,530
299,695
759,313

302,953
157,339
206,969
510,197

247,581
118,216
176,217
420,466

55,372
39,123
30,752
89,731

98,241
61,191
92,726
249,117

12,050

90 Total equity capital9

State

240,901
31,858
29,291
32,839
83,536
13,726
1,465
24,485
105,720

Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities

National

4,858

3,875

983

7,192

MEMO

91 Assets held in trading accounts
92
U.S. Treasury securities
93
U.S. government agency corporation obligations
94
Securities issued by states and political subdivisions in the United States
95
Other bonds, notes, and debentures
96 Certificates of deposit
97
Commercial paper
98
Bankers acceptances
99
Other
100 Total individual retirement accounts (IRA) and Keogh plan accounts
101 Total brokered deposits
102 Total brokered retail deposits
103
Issued in denominations of $100,000 or less
104 Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
105
106
107
108
109
110
111

Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits

Quarterly averages
112 Total loans
113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
114
115
116
117

Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits

118 Number of banks
1. Effective Mar. 31,1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The "n.a." for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due to." All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice transactions are nullified by consolidation, total assets and total
liabilities for the entire bank may not equal the sum of assets and liabilities
respectively, of the domestic and foreign offices.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column




refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.

A76

Special Tables • February 1992

4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 19911
A. Commercial and Industrial Loans

Characteristic

Amount of
loans
(thousands
of dollars)

Average
size
(thousands
of dollars)

Weighted
average
maturity2
Days

Loan rate (percent)
Weighted
average
effective3

Standard

Loans
secured
by
collateral
(percent)

Loans
made
under
commitment
(percent)

Participation
loans
(percent)

ALL BANKS

1 Overnight6

7,132,014

5,339

2 One month and under (excluding
overnight)
3
Fixed rate
Floating rate
4

4,755,173
3,345,085
1,410,088

556
708
369

15
14
17

7.16
6.94
7.68

31.8
26.2
45.3

85.5
86.9
82.4

4.5
4.1
5.2

5 Over one month and under a year .
6
Fixed rate
Floating rate
7

9,564,387
4,727,065
4,837,322

148
157
140

130
93
166

8.28
7.67

52.7
37.9
67.2

75.9
67.5
84.0

11.0
9.1
12.9

8 Demand7
9
Fixed rate
10 Floating rate

12,900,100
3,425,965
9,474,133

246
728
199

8.29
7.37
8.63

60.2
31.0
70.8

77.2
83.1
75.1

13.0
29.7
7.0

11 Total short term

34,351,660

271

7.82

44.4

74.3

8.9

12 Fixed rate (thousands of dollars) . .
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over

18,629,150
423,305
447,685
342,370
3,833,407
3,625,025
9,957,370

455

7.13

207
679
2,376
6,752
19,379

32
124
129
59
36
27
25

25.0
73.0
70.7
40.8
33.8
21.4
18.3

70.7
32.2
54.0
83.4
75.3
73.6
69.8

9.0
.5
3.2
10.5
9.4

19 Floating rate (thousands of dollars)
20 1-99
21 100-499
22 500-999
23 1,000-4,999
24 5,000-9,999
25 10,000 and over

15,722,510
1,641,747
2,933,890
1,485,031
3,650,884
1,312,643
4,698,315

183
25
197
661
2,004
6,678
20,918

132
166
177
177
134
97
89

67.4
82.4
78.6
68.0

8.7

12

6.76

59.2

11.20

9.17
7.89
7.27
7.16
6.78

7.22

49.4
65.1

78.5
83.2
85.8
87.5
88.6
78.2
61.7

8.62

10.16
9.65
9.48
8.72

60.8

8.16

8.2

9.8
1.8

7.7
9.5
8.4
6.2
12.2

Months
26 Total long term

3,687,750

178

9.13

64.2

67.5

27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1,000 and over

1,329,657
123,590
189,319
107,574
909,174

125
13
202
650
6,717

8.53
11.26
9.03
7.74

51.2
83.4
74.0
84.8
38.0

58.3
18.9
57.9
31.4
66.9

5.7
.4
7.8
.0
6.7

32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1,000 and over

2,358,093
195,638
504,873
279,885
1,377,697

233
29
204
668
3,178

9.47
10.37
9.88
9.86
9.12

71.6
84.7
78.6
80.0
65.5

72.8
43.9
65.9
66.9
80.6

10.8
3.4
12.5
13.2
10.7

10.28

Loan rate (percent)
Days
Effective3

Nominal8

LOANS MADE BELOW PRIME 1 0

37 Overnight6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand7

6,897,561

3,375
570
2,482

6.67

6,586

4,179,582
5,780,243
5,639,330

13
101

6.45

12.2

59.0

6.79
7.19
6.60

6.58
6.98
6.49

26.9
39.1
43.0

86.4
77.2
60.7

18.2

3.8
13.5

41 Total short term

22,496,700

1,530

6.81

6.62

29.6

69.2

9.0

42 Fixed rate
43 Floating rate

16,503,520
5,993,195

2,038
907

6.80
6.84

6.61

6.66

20.5
54.5

71.1
64.1

9.7
7.0

7.30

7.13

36.0

7.35
7.18

7.21
6.97

27.2
55.6

Months
44 Total long term

1,134,473

532

45 Fixed rate
46 Floating rate ..

783,127
351,346

573
459

For notes see end of table.




40

12.4

59.1
85.8

6.1
26.4

Financial Markets
4.23—Continued
A.—Continued

Characteristic

Amount of
loans
(thousands
of dollars)

Average
size
(thousands
of dollars)

Weighted
svcrd^c
maturity2
Days

Standard
error4

Loans
secured
hv
oy
collateral
(percent)

Loans
made
under
commitment
(percent)

Participation
loans
(percent)

Loan rate (percent)
Weighted
average
effective3

LARGE BANKS

1 Overnight6

5,272,413

7,638

*

6.80

.25

8.9

52.8

1.4

2 One month and under (excluding
overnight)
3 Fixed rate
4
Floating rate

3,706,097
2,649,922
1,056,175

3,747
6,099
1,904

14
13'
15

6.93
6.87
7.08

.17
.18
.24

27.8
24.8
35.6

85.4
86.2
83.5

4.3
4.2
4.4

5 Over one month and under a year .
6
Fixed rate
7
Floating rate

5,660,339
3,356,690
2,303,649

1,069
2,816
561

109
81
150

7.68
7.25
8.31

.14
.17
.18

46.5
27.9
73.6

80.5
73.1
91.4

11.9
7.0
19.2

8,410,643
2,933,711
5,476,932

483
1,437
357

*
*
*

7.95
7.31
8.28

.13
.16
.18

57.0
27.7
72.7

68.2
81.7
60.9

17.8
33.6
9.3

8 Demand7
9 Fixed rate
10 Floating rate
11 Total short term

23,049,493

946

46

7.45

.13

38.7

70.5

10.4

12 Fixed rate (thousands of dollars) ..
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over

14,211,768
40,303
168,664
225,659
2,374,528
2,817,956
8,584,658

3,263
29
230
674
2,286
6,848
20,079

28
146
76
59
35
25
26

7.03
9.53
8.56
8.03
7.38
7.12
6.83

.16
.19
.21
.07
.10
.12
.11

20.2
62.3
56.5
44.1
30.9
17.0
16.8

69.8
61.6
77.2
86.6
78.2
71.0
66.5

9.9
1.2
4.7
7.0
10.3
9.4
10.2

8,837,725
387,553
1,011,075
562,390
1,876,541
965,049
4,035,115

442
30
203
664
2,134
6,860
22,934

108
175
167
162
116
79
91

8.15
9.87
9.48
9.24
8.60
7.89
7.34

.19
.06
.07
.10
.20
.45
.47

68.5
80.5
74.3
61.1
59.9
53.3
74.6

71.6
88.0
89.2
90.7
83.4
77.5
56.0

11.3
1.6
5.2
9.7
12.4
8.4
14.2

19
20
21
22
23
24
25

Floating rate (thousands of dollars)
1-99
100-499
500-999
1,000-4,999
5,000-9,999
10,000 and over

Months
2,102,319

790

36

8.71

.14

58.4

77.2

11.2

27 Fixed rate (thousands of dollars) ..
28 1-99
29 100-499
30 500-999
31 1,000 and over

681,597
5,446
26,904
33,637
615,610

1,574
27
253
631
8,729

39
42
36
39
40

7.90
10.63
9.17
7.80
7.83

.26
.28
.22
.53
.34

45.4
82.9
74.8
51.5
43.4

61.4
35.7
73.0
86.9
59.7

5.0
.0
2.9
.0
5.4

32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1,000 and over

1,420,722
32,290
210,390
141,383
1,036,660

637
40
224
668
3,723

35
38
37
38
34

9.10
9.92
9.63
9.43
8.92

.13
.10
.09
.20
.39

64.7
77.5
72.7
68.8
62.1

84.8
77.9
82.5
90.3
84.7

14.2
11.3
15.8
21.2
13.0

26 Total long term

Loan rate (percent)
Days
Effective3

Nominal8

LOANS MADE BELOW PRIME 1 0

37 Overnight6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand7

5,146,852

7,954

*

6.72

6.51

7.8

53.1

.8

3,488,662
4,419,866
4,414,070

7,160
4,182
4,579

13
95
*

6.78
7.13
6.57

6.56
6.92
6.46

26.3
37.2
48.6

85.3
77.7
49.8

3.8
11.6
22.0

41 Total short term

17,469,450

5,537

36

6.80

6.61

29.3

64.9

9.5

42 Fixed rate
43 Floating rate

13,002,272
4,467,178

5,728
5,047

26
86

6.82
6.72

6.64
6.55

17.1
64.7

68.2
55.5

10.2
7.4

Months
44 Total long term

764,119

3,019

33

7.16

7.04

33.2

64.5

13.6

45 Fixed rate
46 Floating rate ..

486,420
277,700

3,908
2,159

30
38

7.37
6.78

7.31
6.58

25.4
46.9

48.8
92.1

7.0
25.1

For notes see end of table.




All

A78

Special Tables • February 1992

4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 5-9, 1991'—Continued
A. Commercial and Industrial Loans—Continued

Characteristic

Amount of
loans
(thousands
of dollars)

Average
size
(thousands
of dollars)

Weighted
average
maturity2
Days

Loan rate (percent)
Weighted
average
effective 3

Standard

Loans
secured
by
collateral
(percent)

Loans
made
under
commitment
(percent)

Participation
loans
(percent)

OTHER BANKS

1 Overnight 6

1,859,601

2,880

2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate

1,049,076
695,163
353,913

139
162
108

5 Over one month and under a year . .
6
Fixed rate
7
Floating rate

3,904,048
1,370,375
2,533,673

66
47
83

8 Demand 7
9
Fixed rate
10
Floating rate

4,489,455
492,254
3,997,201

128
185
124

11 Total short term

11,302,180

4,417,393
383,001
279,021
116,712
1,458,879
807,069
1,372,712

121
11

19 Floating rate (thousands of dollars).
20 1-99
21 100-499
22 500-999
23 1,000-4,999
24 5,000-9,999
25 10,000 and over

6,884,787
1,254,194
1,922,815
922,641
1,774,343
347,594
663,200

26 Total long term

.34

24.5

77.4

18
16
22

7.97
7.20
9.49

.25
.39

46.0
31.7
74.1

85.9
89.5
78.9

5.1
3.8
7.7

159
120

9.16
8.70
9.41

.18
.27

61.7

.18

61.4

69.1
54.0
77.3

9.7
14.3
7.2

8.94
7.67
9.10

.22
.21

66.3
50.6
68.2

94.1
91.2
94.5

4.1
6.7
3.8

181

110

12 Fixed rate (thousands of dollars) . . .
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over

6.65

1,585,431

196
690
2,540
6,436
15,913
104
23
194
660

1,882

6,220
13,629

.26

.38

62.2

8.55

.19

55.9

82.0

5.6

45
123
145
59
37
36
20

7.49
11.37
9.55
7.62
7.09
7.30
6.51

.29
.13

40.3
74.2
79.2
34.6
38.7
36.7
27.1

73.6
29.1
39.9
77.4
70.6
90.2

6.3
.4
2.3
17.1
8.0
3.8
7.3

161
165
181
184
159
127
70

9.23
10.25
9.73
9.63
8.85
8.92
6.49

.20

66.0
83.0
80.9
72.2
61.9
38.4
7.6

87.4
81.7
84.1
85.5
94.0
80.2
96.2

5.3
1.9
9.1
9.4
4.3
.0
.0

.26

.31
.09
.38
.13
.03
.06

.16
.34
.55
1.02

82.8

9.70

71.9

54.7

27 Fixed rate (thousands of dollars) . . .
28 1-99
29 100-499
30 500-999
31 1,000 and over

648,060
118,144
162,415
73,937
293,565

63
13
196
659
4,529

9.20
11.29
10.47
9.60
7.55

57.2
83.4
73.8
100.0

55.0

32 Floating rate (thousands of dollars).
33 1-99
34 100-499
35 500-999
36 1,000 and over

937,370
163,347
294,483
138,502
341,038

119
27
191
668
2,199

10.04
10.45
10.06
10.29
9.74

26.8

82.0

86.1
82.8

91.3
75.6

55.4
6.1
81.9

6.5
.4
8.6
.0
9.3

54.6
37.2
54.1
42.9
68.0

5.6
1.9
10.2
5.1
3.7

18.1

Loan rate (percent)
Days
Effective3

Nominal8

LOANS MADE BELOW PRIME

37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a year .
40 Demand 7

1,750,710

4,373

690,921
1,360,377
1,225,260

920
150
937

41 Total short term

5,027,267

42 Fixed rate
43 Floating rate

3,501,250
1,526,017

25.1

76.4

1.2

6.63
7.18
6.61

29.4
45.1
23.0

92.1
75.7
99.9

3.8
19.5
4.5

6.85

6.66

30.6

6.72
7.17

6.51
7.00

33.1
24.9

81.8
89.3

7.9
6.0

7.58

7.32

41.6

73.3

9.9

7.30
8.70

7.04
8.43

30.0

76.1
62.2

4.6
31.2

6.50
6.85
7.41
6.74

46

601
267

15
119

27
135
Months

44 Total long term

370,353

45 Fixed rate
46 Floating rate . .

2%,707
73,646

For notes see following page.




239
116

88.6

Financial Markets

A79

NOTES TO TABLE 4.23
1. As of Sept. 30, 1990, assets of most of the large banks were at least $7.0
billion. For all insured banks, total assets averaged $275 million.
2. Average maturities are weighted by loan size and exclude demand loans.
3. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loans and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
complete survey of lending at all banks.
5. The most common base rate is that used to price the largest dollar volume of
loans. Base pricing rates include the prime rate (sometimes referred to as a bank's
"basic" or "reference" rate); the federal funds rate; domestic money market




rates other than the federal funds rate; foreign money market rates; and other base
rates not included in the foregoing classifications.
6. Overnight loans mature on the following business day.
7. Demand loans have no stated date of maturity.
8. Nominal (not compounded) annual interest rates are calculated from the
stated rate and other terms of the loans and weighted by loan size.
9. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
10. The proportion of loans made at rates below the prime may vary substantially from the proportion of such loans outstanding in banks' portfolios.

A70

Special Tables • February 1992

4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19911
Millions of dollars
New York

All states
Item

1 Total assets4

Total
including
IBF's

IBF's
only

Total
including
IBF's

California

Illinois

IBF's
only

Total
including
IBF's

IBF's
only

Total
including
IBF's

IBF's
only

672,339

291,342

501,627

227,163

83,362

35,126

49,871

19,064

2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
Other depository institutions in United States
8
(including their IBFs)
9
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central
banks
12
Balances with Federal Reserve Banks

579,678
154,477

212,703
128,858

425,872
130,897

175,727
107,134

75,744
8,635

15,460
7,958

49,557
13,240

16,089
12,878

1,873
25
79,977

2
n.a.
58,100

1,818
18
67,587

2
n.a.
47,105

22
2
5,019

0
n.a.
4,387

12
1
6,555

0
n.a.
6,268

71,882

54,833

60,399

43,969

4,618

4,327

6,219

6,208

8,095

3,268

7,188

3,136

401

60

336

60

71,935
1,705

70,756
1,589

60,981
1,524

60,027
1,411

3,573
72

3,571
71

6,611
103

6,609
102

70,230
667

69,167
n.a.

59,456
494

58,616
n.a.

3,501
19

3,500
n.a.

6,507
62

6,507
n.a.

13 Total securities and loans

348,304

72,140

231,359

58,572

59,704

6,696

31,940

2,509

56,334
13,726

15,267
n.a.

50,854
13,548

13,950
n.a.

3,493
60

838
n.a.

1,510
55

428
n.a.

14 Total securities, book value
15 U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures and corporate stock
(including state and local securities)

33,782

15,267

28,896

13,950

3,201

838

1,360

428

18 Federal funds sold and securities purchased under
agreements to resell
19 U.S. branches and agencies of other foreign banks
20
Commercial banks in United States
21
Other

24,339
11,608
3,515
9,216

3,311
1,753
143
1,414

22,709
10,532
3,303
8,874

2,787
1,533
93
1,160

527
428
73
26

88
83
0
5

665
329
73
263

328
75
50
203

292,143
173
291,970

56,905
31
56,873

180,627
121
180,506

44,651
29
44,622

56,248
37
56,211

5,860
2
5,858

30,438
8
30,429

2,081
0
2,081

52,745
45,953
23,887
20,219
3,668

521
29,856
11,037
9,841
1,196

27,216
36,096
18,790
15,748
3,042

306
22,888
8,107
6,961
1,146

16,092
4,609
3,058
2,922
136

155
3,646
2,161
2,131
30

5,439
3,002
1,854
1,389
465

61
1,483
723
708
15

67
21,998
1,504
20,494
12,183

0
18,819
854
17,965
767

60
17,246
1,403
15,843
9,865

0
14,781
753
14,028
664

7
1,544
83
1,461
908

0
1,485
83
1,401
51

0
1,148
18
1,130
994

0
760
18
742
41

159,465
138,624
20,841
1,249
361
888

14,514
368
14,145
16
0
16

89,815
73,926
15,889
841
182
659

11,994
228
11,765
13
0
13

33,523
30,800
2,724
210
118
92

1,679
111
1,568
0
0
0

20,402
19,791
611
121
3
118

378
13
364
0
0
0

12,125

10,908

9,437

8,489

406

328

122

119

5,023
3,400

4
318

4,607
2,749

4
294

415
86

0
0

0
357

0
0

52,558
22,682
15,876
6,807

8,394
n.a.
n.a.
n.a.

40,907
16,484
10,621
5,863

7,234
n.a.
n.a.
n.a.

6,878
4,726
4,100
626

717
n.a.
n.a.
n.a.

3,712
963
930
33

374
n.a.
n.a.
n.a.

29,876
92,662

8,394
78,639

24,423
75,755

7,234
51,436

2,152
7,617

717
19,665

2,748
314

374
2,975

22 Total loans, gross
23
Less: Unearned income on loans
24
Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks . . .
28
29
Other commercial banks in United States
Other depository institutions in United States (including
30
IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
Other banks in foreign countries
33
34 Other financial institutions
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39
U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities (secured and
unsecured)
43 All other loans
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
parties
49 Net due from related depository institutions5
Net due from head office and other related depository
50
institutions
51
Net due from establishing entity, head offices, and other
related depository institutions

8,825

n.a.

8,410

n.a.

232

n.a.

95

n.a.

92,662

n.a.

75,755

n.a.

7,617

n.a.

n.a.

78,639

n.a.

51,436

n.a.

19,665

n.a.

2,975

52 Total liabilities4

672,339

291,342

501,627

227,163

83,362

35,126

49,871

19,064

53 Liabilities to nonrelated parties

571,216

240,717

446,557

186,972

73,074

34,534

31,968

11,772




314

n.a.

U.S. Branches and Agencies
4.30—Continued
Millions of dollars
All states
Total
excluding
IBF's
54 Total deposits and credit balances
55
Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58
Commercial banks in United States (including IBFs).
59
U.S. branches and agencies of other foreign banks
60
Other commercial banks in United States
61
Banks in foreign countries
62
Foreign branches of U.S. banks
63
Other banks in foreign countries
64
Foreign governments and official institutions
(including foreign central banks)
65
All other deposits and credit balances
66
Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
68
Individuals, partnerships, and corporations
69
U.S. addressees (domicile)
70
Non-U.S. addressees (domicile)
71
Commercial banks in United States (including IBFs).
72
U.S. branches and agencies of other foreign banks
73
Other commercial banks in United States
74
Banks in foreign countries
75
Foreign branches of U.S. banks
76
Other banks in foreign countries
77
Foreign governments and official institutions
(including foreign central banks)
78
All other deposits and credit balances
79
Certified and official checks
80 Demand deposits (included in transaction accounts
and credit balances)
81
Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84
Commercial banks in United States (including IBF)s.
85
U.S. branches and agencies of other foreign banks
86
Other commercial banks in United States
87
Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90
Foreign governments and official institutions
(including foreign central banks)
91
All other deposits and credit balances
92
Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
94
Individuals, partnerships, and corporations
95
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
%
97
Commercial banks in United States (including IBFs).
98
U.S. branches and agencies of other foreign banks
99
Other commercial banks in United States
100
Banks in foreign countries
101
Foreign branches of U.S. banks
102
Other banks in foreign countries
103
Foreign governments and official institutions
(including foreign central banks)
104
All other deposits and credit balances
105 IBF deposit liabilities
106
Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109
Commercial banks in United States (including IBFs).
110
U.S. branches and agencies of other foreign banks
111
Other commercial banks in United States
112
Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115
Foreign governments and official institutions
(including foreign central banks)
116
All other deposits and credit balances
For notes see end of table.




IBF's
only

New York

Illinois

California

Total
excluding
IBF's

IBF's
only

Total
excluding
IBF's

IBF's
only

Total
excluding
IBF's

11,263
1,235
0
1,235
3,062
2,523
539
6,532
823
5,709

7,606
6,786
5,722
1,064
665
148
517
143
120
23

435
0

3
1

143,232
98,909
83,313
15,596
32,678
10,374
22,304
4,483
1,549
2,934

177,192
16,068
362
15,706
54,764
48,204
6,560
92,152
8,123
84,029

122,494
81,389
72,117
9,272
30,320
10,119
20,201
4,214
1,428
2,786

155,988
9,233
362
8,870
49,943
44,211
5,732
83,235
6,946
76,289

4,312
3,459
1,414
2,045
598
82
516
5
0
5

1,497
5,238
426

13,936
273

1,171
5,033
367

13,304
273
n.a.

219
4
28

n.a.

7,837
4,952
3,573
1,379
132
18
114
875
10
865

6,473
3,780
2,860
920
125
17
108
796
10
786

275
236
191
45
1
0
1
5
0
5

405
393
388
5
0
0
0
2
0
2

400
1,051
426

368
1,038
367

2
3
28

1
1

6,930
4,581
3,422
1,159
117
18
99
781
10
771

5,831
3,661

217
182
150
32
1
0
1
5
0
5

392
381
375
5
0
0
0
2
0
2

349
676
426

316
671
367

2
1

1
1

135,395
93,958
79,741
14,217
32,546
10,356
22,190
3,608
1,539
2,069

116,021

77,609
69,257
8,352
30,195
10,101
20,093
3,418
1,418
2,000

4,037
3,223
1,222
2,000
597
82
515
0
0
0

7,201
6,393
5,334
1,059
665
148
517
141
120
21

1,096
4,187

803
3,995

217
0

2
0

2,810

852
110
17
93
705
10
0

117,000
16,068
362
15,706
54,764
48,204
6,560
92,152
8,123
84,029

155,988
9,233
362
8,870
49,943
44,211
5,732
83,235
6,946
76,289

11,263
1,235
0
1,235
3,062
2,523
539
6,532
823
5,709

13,936
273

13,304
273

435
0

A81

A70

Special Tables • February 1992

4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1991'—Continued
Millions of dollars
All states
Item

117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134

Federal funds purchased and securities sold under
agreements to repurchase
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Other
Other borrowed money
Owed to nonrelated commercial banks in United States
(including IBFs)
Owed to U.S. offices of nonrelated U.S. banks
Owed to U.S. branches and agencies of
nonrelated foreign banks
Owed to nonrelated banks in foreign countries
Owed to foreign branches of nonrelated U.S. banks . . .
Owed to foreign offices of nonrelated foreign banks
Owed to others
All other liabilities
Branch or agency liability on acceptances executed
and outstanding
Other liabilities to nonrelated parties
Net due to related depository institutions3
Net due to head office and other related depository
institutions
Net due to establishing entity, head office, and other
related depository institutions5

Total
including
IBF's

New York

IBF's
only

Total
including
IBF's

California

IBF's
only

Illinois

Total
including
IBF's

IBF's
only

Total
including
IBF's

IBF's
only

81,020
16,159
26,830
38,031
118,052

6,155
2,550
978
2,627
50,499

61,908
10,189
18,166
33,552
65,436

3,355
750
427
2,177
21,737

12,706
4,139
5,667
2,900
37,968

2,025
1,330
551
144
20,519

5,683
1,648
2,791
1,243
12,347

775
470
0
305
7,577

48,663
18,326

19,759
2,323

21,955
9,861

5,417
758

20,171
5,764

11,310
1.186

4,801
1,933

2,536
317

30,337
29,473
2,833
26,640
39,916

17,436
2 7 , 988
2,752
25,236
2,752

12,094
15,053
785
14,269
28,427

4,659
14,056
723
13,333
2,264

14,407
9,442
1,624
7,818
8,355

10,124
8,985
1,624
7,361
225

2,868
4,778
405
4,373
2,767

2,219
4,778
405
4,373
263

727

3,110

51,719

6,870

40,732

5,893

6,825

25,452
26,267

n.a.

n.a.

6,870

19,123
21,609

5,893

4,778
2,046

101,124

50,625

55,070

40,190

10,287

101,124

n.a.

55,070

n.a.

10,287

n.a.

50,625

n.a.

40,190

n.a.

n.a.

198

n.a.

727

786
2,324

591

17,904

7.291

n.a.

198

17,904

591

n.a.

n.a.

7,291

MEMO
135
136
137
138
139
140
141
142
143

Non-interest bearing balances with commercial banks
in United States
Holding of commercial paper included in total loans
Holding of own acceptances included in commercial
and industrial loans
Commercial and industrial loans with remaining maturity
of one year or less
Predetermined interest rates
Floating interest rates
Commercial and industrial loans with remaining maturity
of more than one year
Predetermined interest rates
Floating interest rates




1,732
1,372

0

1,436
1,187

0

0

122
116

101
67

2,080

1,386

459

57

92,872
57,122
35,750

51,491
30,736
20,755

19,602
12,102
7,500

12,641
8,014
4,627

0

66,593
21,493
45,100

n.a.

38,324
11,709
26,615

n.a.

13,922
4,038
9,884

n.a.

7,761
3,653
4,108

n.a.

U.S. Branches

and Agencies

A83

4.30—Continued
Millions of dollars
New York

All states
Item

144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactional accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months . .

Total
excluding
IBFs

IBFs
only

t

140,685
102,214
25,071

n.a.

\

13,401
All states
Total
including
IBFs

148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
150 Number of reports filed6

IBFs
only

t

122,576
88,184
22,081

n.a.

\

12,310

2

Total
including
IBFs

Total
excluding
IBFs

IBFs
only

t

4,247
2,458
1,158

Illinois

n.a.
*

631

New York

IBFs
only

Total
excluding
IBFs

IBFs
only

Total
including
IBFs

1
1

7,087
5,368
1,500

n.a.

218

California

IBFs
only

IBFs
only

Illinois
Total
including
IBFs

IBFs
only

56,086

14,977

50,673

13,673

3,453

828

1,506

428

68,880
580

n.a.

33,014
272

n.a.

25,242
133

n.a.
0

8,890
55

n.a.
0

1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FR 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10, 1980. Data in this table and in the G. 11 tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation "n.a." indicates




Total
excluding
IBFs

California

0

0

that no IBF data re reported for that item, either because the item is not an eligible
IBF asset or liability or because that level of detail is not reported for IBFs. From
December 1981 through September 1985, IBF data were included in all applicable
items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.

A84

Index to Statistical Tables
References are to pages A3-A83 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 20, 21
Assets and liabilities (See also Foreigners)
Banks, by classes, 19-21
Domestic finance companies, 34
Federal Reserve Banks, 11
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 22, 80-83
Automobiles
Consumer installment credit, 37, 38
Production, 47, 48
BANKERS acceptances, 10, 23, 24
Bankers balances, 19-21, 80-83. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 24
Branch banks, 22, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 33
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 19, 71, 73, 75
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 17, 20, 70, 72, 74, 76-79
Weekly reporting banks, 20-22
Commercial banks
Assets and liabilities, 19-21, 76-79
Commercial and industrial loans, 17, 19, 20, 21, 22
Consumer loans held, by type and terms, 37, 38, 70, 72,
74, 80-83
Loans sold outright, 20
Nondeposit funds, 18
Number by classes, 71, 73, 75
Real estate mortgages held, by holder and property, 36
Terms of lending, 76-79
Time and savings deposits, 4
Commercial paper, 23, 24, 34
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 37, 38
Consumer prices, 44, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 33
Profits and their distribution, 33
Security issues, 32, 65
Cost of living (See Consumer prices)
Credit unions, 37
Currency and coin, 19, 70, 72, 74
Currency in circulation, 5, 14
Customer credit, stock market, 25
DEBITS to deposit accounts, 16
Debt (See specific types of debt or securities)




Demand deposits
Banks, by classes, 19-22, 71, 73, 75
Ownership by individuals, partnerships, and corporations,
22
Turnover, 16
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 19-21, 22, 71, 73, 75
Federal Reserve Banks, 5,11
Turnover, 16
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 33
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 36
Federal agency obligations, 5, 10, 11, 12, 29, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 28
Receipts and outlays, 26, 27
Treasury financing of surplus, or deficit, 26
Treasury operating balance, 26
Federal Financing Bank, 26, 31
Federal funds, 7, 18, 20, 21, 22, 24, 26
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 35, 36
Federal Housing Administration, 31, 35, 36
Federal Land Banks, 36
Federal National Mortgage Association, 31, 35, 36
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 28
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 34
Business credit, 34
Loans, 37, 38
Paper, 23, 24
Financial institutions
Loans to, 20, 21, 22
Selected assets and liabilities, 26
Float, 51
Flow of funds, 39, 41, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 22, 80-83
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 20, 21
Foreign exchange rates, 68
Foreign trade, 54

A85

Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 31, 35, 36
Gross national product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 37, 38
Insurance companies, 28, 36
Interest rates
Bonds, 24
Commercial banks, 76-79
Consumer installment credit, 38
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 35
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 19, 20, 21, 22, 26
Commercial banks, 4, 17, 19-21, 36, 72
Federal Reserve Banks, 11, 12
Financial institutions, 36
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 19-21
Commercial banks, 4, 17, 19-21, 70, 72, 74
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 26, 36
Insured or guaranteed by United States, 35, 36
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 24
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 33
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 27
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 33




REAL estate loans
Banks, by classes, 17, 20, 21, 36, 72
Financial institutions, 26
Terms, yields, and activity, 35
Type of holder and property mortgaged, 36
Repurchase agreements, 7, 18, 20, 21, 22
Reserve requirements, 9
Reserves
Commercial banks, 19
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 35
Retail credit and retail sales, 37, 38, 44
SAVING
Flow of funds, 39, 41, 42, 43
National income accounts, 51
Savings and loan associations, 36, 37, 39. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 26
Savings banks, 26, 36, 37
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 65
New issues, 32
Prices, 25
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 20, 21
Holdings of U.S. government securities, 28
New security issues, 32
Ownership of securities issued by, 20, 21
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts, federal, 27
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 18, 19, 20, 21, 22, 71, 73, 75
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 26
Treasury operating balance, 26
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 5, 11, 26
U.S. government securities
Bank holdings, 19-21, 22, 28
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 5, 11, 12, 28
Foreign and international holdings and transactions, 11, 28,
66
Open market transactions, 10
Outstanding, by type and holder, 26, 28
Rates, 23
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 35, 36
WEEKLY reporting banks, 20-22
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)

A86

Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
DAVID W . MULLINS, JR., Vice

OFFICE OF BOARD

Chairman

DIVISION OF INTERNATIONAL FINANCE

MEMBERS

JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board

THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL DIVISION
J. VIRGIL MATTINGLY, JR., General

Counsel

SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R. TIGERT, Associate General Counsel
KATHLEEN M. O'DAY, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE SECRETARY
WILLIAM W . WILES,

Secretary

JENNIFER J. JOHNSON, Associate
BARBARA R. LOWREY, Associate
RICHARD C. STEVENS, Assistant

Secretary
Secretary
Secretary1

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD,

WAYNE D . ANGELL
EDWARD W . KELLEY, JR.

EDWIN M. TRUMAN, Staff

Director

LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W. HENDERSON, Associate
Director
DAVID H. HOWARD, Senior Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W . SMITH, JR., Assistant
Director

DIVISION OF RESEARCH AND STATISTICS
MICHAEL J . PRELL,

Director

EDWARD C. ETTIN, Deputy
Director
WILLIAM R. JONES, Associate
Director
THOMAS D. SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
DAVID J. STOCKTON, Associate
Director

MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
MYRON L. KWAST, Assistant
Director
PATRICK M. PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
JOHN J . MINGO,

Adviser

LEVON H. GARABEDIAN, Assistant

Director

Director

(Administration )

GLENN E. LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S. SMITH, Assistant
Director

DIVISION OF MONETARY AFFAIRS

DIVISION OF BANKING
SUPERVISION AND REGULATION

DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D. PORTER, Assistant
Director

RICHARD SPILLENKOTHEN,

NORMAND R.V. BERNARD, Special Assistant to the Board

Director

STEPHEN C. SCHEMERING, Deputy

DON E. KLINE, Associate

Director

Director

Director

WILLIAM A. RYBACK, Associate
Director
FREDERICK M. STRUBLE, Associate
Director
HERBERT A. BIERN, Assistant
Director
ROGER T. COLE, Assistant
Director
JAMES I. GARNER, Assistant
Director
JAMES D. GOETZINGER, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
ROBERT S. PLOTKIN, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director

LAURA M. HOMER, Securities Credit Officer
1. On loan from the Division of Information Resources Management.




DONALD L . KOHN,

OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector

GENERAL

General

BARRY R. SNYDER, Assistant Inspector General

A87

JOHN P. LAWARE
LAWRENCE B . LINDSEY

SUSAN M . PHILLIPS

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT

DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS

S. DAVID FROST, Staff Director
WILLIAM SCHNEIDER, Special
Assignment:

CLYDE H . FARNSWORTH, JR.,

Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF HUMAN
MANAGEMENT
DAVID L . SHANNON,

RESOURCES

Director

JOHN R. WEIS, Associate
Director
ANTHONY V. DIGIOIA, Assistant
Director
JOSEPH H. HAYES, JR., Assistant
Director
FRED HOROWITZ, Assistant
Director

OFFICE OF THE CONTROLLER
GEORGE E . LIVINGSTON,

Controller

STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER,

Director

GEORGE M . LOPEZ, Assistant
DAVID L. WILLIAMS, Assistant

Director
Director

DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,

RESOURCES

Director

BRUCE M. BEARDSLEY, Deputy
Director
ROBERT J. ZEMEL, Senior Adviser
MARIANNE M. EMERSON, Assistant
Director

Po KYUNG KIM, Assistant

Director

RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant

Director
Director

DAY W. RADEBAUGH, JR., Assistant
ELIZABETH B. RIGGS, Assistant




Director

Director

OPERATIONS

Director

DAVID L. ROBINSON, Deputy Director (Finance and
Control)
BRUCE J. SUMMERS, Deputy Director (Payments and
Automation)
CHARLES W . BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant
Director
JEFFREY C. MARQUARDT, Assistant
Director
JOHN H. PARRISH, Assistant
Director
LOUISE L. ROSEMAN, Assistant
Director
FLORENCE M. YOUNG, Assistant
Director

88

Federal Reserve Bulletin • February 1992

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE

MEMBERS

ALAN GREENSPAN,

E. GERALD CORRIGAN, Vice

Chairman

WAYNE D . ANGELL
WILLIAM H . HENDRICKS
THOMAS H . HOENIG
EDWARD W . KELLEY, JR.

JOHN P . LAWARE
LAWRENCE B . LEMDSEY
THOMAS C . MELZER

Chairman

DAVID W . MULLINS, JR.
SUSAN M . PHILLIPS
RICHARD F . SYRON

ALTERNATE MEMBERS

ROBERT D . MCTEER, JR.

EDWARD G . BOEHNE
SILAS KEEHN

JAMES H . OLTMAN
GARY H . STERN

STAFF

DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Deputy
Secretary
Secretary
JOSEPH R. COYNE, Assistant
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel

ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J . PRELL,
EDWIN M . TRUMAN,

Economist
Economist

JACK H. BEEBE, Associate

Economist

J. ALFRED BROADDUS, JR., Associate
Economist
RICHARD G. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
SHEILA T. TSCHINKEL, Associate
Economist

PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
WILLIAM J. MCDONOUGH, Manager for Foreign Operations, System Open Market Account

FEDERAL ADVISORY

COUNCIL

IRA STEPANIAN, First District
CHARLES S. SANFORD, JR., Second District

TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, Fifth District

E.B. ROBINSON, JR., Sixth District




EUGENE A. MILLER, Seventh District
DAN W. MITCHELL, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A. RISMILLER, Tenth District
RONALD G. STEINHART, Eleventh District
RICHARD M. ROSENBERG, Twelfth District

HERBERT V . PROCHNOW,

WILLIAM J. KORSVIK, Associate

Secretary

Secretary

A89

CONSUMER ADVISORY

COUNCIL

COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman
DENNY D. DUMLER, Denver, Colorado, Vice Chairman

BARRY A. ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN A. BAKER, Atlanta, Georgia
VERONICA E. BARELA, Denver, Colorado
MULGUGETTA BIRRU, Pittsburgh, Pennsylvania
GENEVIEVE BROOKS, Bronx, New York
TOYE L. BROWN, Boston, Massachusetts
CATHY CLOUD, W a s h i n g t o n , D . C .

MICHAEL D. EDWARDS, Yelm, Washington
GEORGE C. GALSTER, Wooster, Ohio
E. THOMAS GARMAN, Blacksburg, Virginia
DONALD A. GLAS, Hutchinson, Minnesota
DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .
MICHAEL M . GREENFIELD, St. L o u i s , M i s s o u r i

JOYCE HARRIS, Madison, Wisconsin
GARY S. HATTEM, New York, New York
JULIA E. HILER, Marietta, Georgia
HENRY JARAMILLO, B e l e n , N e w M e x i c o

KATHLEEN E. KEEST, Boston, Massachusetts
EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .
BERNARD F . PARKER, JR., D e t r o i t , M i c h i g a n
OTIS PITTS, JR., M i a m i , F l o r i d a

JEAN POGGE, Chicago, Illinois
JOHN V. SKINNER, Irving, Texas
NANCY HARVEY STEORTS, D a l l a s , T e x a s
LOWELL N . SWANSON, P o r t l a n d , O r e g a o n
MICHAEL W . TIERNEY, P h i l a d e l p h i a , P e n n s y l v a n i a
SANDRA L . WILLETT, B o s t o n , M a s s a c h u s e t t s

THRIFT INSTITUTIONS ADVISORY COUNCIL

LYNN W. HODGE, Greenwood, South Carolina, President
DANIEL C. ARNOLD, Houston, Texas, Vice President

JAMES L. BRYAN, Richardson, Texas
VANCE W. CHEEK, Johnson City, Tennessee

PRESTON MARTIN, San Francisco, California
RICHARD D. PARSONS, New York, New York

BEATRICE D'AGOSTINO, S o m e r v i l l e , N e w J e r s e y

THOMAS R . RICKETTS, T r o y , M i c h i g a n
EDMOND M . SHANAHAN, C h i c a g o , I l l i n o i s
WOODBURY C . TITCOMB, W o r c e s t e r , M a s s a c h u s e t t s

THOMAS J. HUGHES, Merrifield, Virginia
RICHARD A. LARSON, West Bend, Wisconsin




A90

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of
Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.

THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.

1984. 120 pp.

Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
four Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.

ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1 9 9 0 - 9 1 .

THE U . S .

FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or

WELCOME TO THE FEDERAL RESERVE. M a r c h 1989. 14 p p .
INDUSTRIAL PRODUCTION—1986 EDITION. D e c e m b e r 1 9 8 6 .

$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
1980.
1982.
1983.
1984.
1985.
1986.
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1988.
1989.
1991.
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305
239
266
264
254
231
288
272
256
712
196

pp.
pp.
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pp.
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pp.
pp.
pp.
pp.

$10.00 per
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copy.
copy.
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SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES

OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico.
Elsewhere, $35.00 per year or $.80 each.
THE FEDERAL RESERVE ACT and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
ANNUAL PERCENTAGE RATE TABLES ( T r u t h in L e n d i n g — R e g -

ulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume
$2.25; 10 or more of same volume to one address, $2.00
each.
Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at least
monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.




A

440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S .

ANNUAL STATISTICAL DIGEST

1974-78.
1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1980-89.
1990.

ECONOMY IN AN INTERDEPENDENT WORLD:

MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.

ECONOMY.

December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY-

SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.

CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancing
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit

A91

STAFF STUDIES:

Summaries Only Printed in the

159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g

Bulletin
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.

and Donald Savage. February 1990. 12 pp.
160. BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y

Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
161. A

Staff Studies 1-145 are out of print.
146. THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y

REVIEW OF CORPORATE RESTRUCTURING

ACTIVITY,

1980-90, by Margaret Hastings Pickering. May 1991.
21 pp.

Thomas F. Brady. November 1985. 25 pp.
147. REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T . F a n

and Deborah Johnson. December 1985. 42 pp.
148. THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION

RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
149. THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n

A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:

A REEXAMINATION AND AN APPLICATION, by John T. Rose

and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING

FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
152. DETERMINANTS OF CORPORATE MERGER ACTIVITY:

A

REVIEW OF THE LITERATURE, by Mark J. Warshawsky.

April 1987. 18 pp.
153. STOCK MARKET VOLATILITY, by Carolyn D. Davis and

Alice P. White. September 1987. 14 pp.
1 5 4 . THE EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,

by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J .

Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING

MARKETS, by James V. Houpt. May 1988. 47 pp.
157. M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR

THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE

PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.




REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages.
Limit of ten copies
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
U.S. International Transactions in 1990. 5/91.

A92

Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman

President
First Vice President

BOSTON*

02106

Richard F. Syron
Cathy E. Minehan

NEW YORK*

10045 Ellen V. Futter
Maurice R. Greenberg
14240 Herbert L. Washington

E. Gerald Corrigan
James H. Oltman

PHILADELPHIA

19105 Peter A. Benoliel
Jane G. Pepper

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101 John R. Miller
A. William Reynolds
45201 Marvin Rosenberg
15230 Robert P. Bozzone

Vacancy
William H. Hendricks

23219

Anne Marie Whittemore
Henry J. Faison
21203 John R. Hardesty, Jr.
28230 Anne M. Allen

Robert P. Black
Jimmie R. Monhollon

30303

Edwin A. Huston
Leo Benatar
Nelda P. Stephenson
Lana Jane Lewis-Brent
Michael T. Wilson
Harold A. Black
Victor Bussie

Robert P. Forrestal
Jack Guynn

Silas Keehn
Daniel M. Doyle
Thomas C. Melzer

Buffalo

Cincinnati
Pittsburgh
RICHMOND*
Baltimore
Charlotte
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

35283
32231
33152
37203
70161

Richard N. Cooper
Jerome H. Grossman

CHICAGO*

60690

Detroit

48231

Richard G. Cline
Robert M. Healey
J. Michael Moore

ST. LOUIS

63166

H. Edwin Trusheim

Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO
Los Angeles
Portland
Salt Lake City
Seattle

Robert H. Quenon
72203 To be announced
40232 To be announced
38101 Seymour B. Johnson

Vice President
in charge of branch

James O. Aston

Charles A. Cerino1
Harold J. Swart1

Ronald B. Duncan1
Albert D. Tinkelenberg1
John G. Stoides1

Donald E. Nelson1
Fred R. Herr1
James D. Hawkins1
James T. Cuny III
Melvyn K. Purcell
Robert J. Musso

Roby L. Sloan1

James R. Bowen
Karl W. Ashman
Howard Wells
Ray Laurence

55480 Delbert W. Johnson
Gerald A. Rauenhorst
59601 J. Frank Gardner

Gary H. Stem
Thomas E. Gainor

64198

Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin

Thomas M. Hoenig
Henry R. Czerwinski

Leo E. Linbeck, Jr.
Henry G. Cisneros
To be announced
To be announced
To be announced

Robert D. McTeer, Jr.
Tony J. Salvaggio

80217
73125
68102
75222
79999
77252
78295
94120

James A. Vohs
Robert F. Erburu
90051 Yvonne B. Burke
97208 William A. Hilliard
84125 Gary G. Michael
98124 George F. Russell, Jr.

John D. Johnson

Kent M. Scott
David J. France
Harold L. Shewmaker

Sammie C.Clay
Robert Smith, III 1
Thomas H. Robertson
Robert T. Parry
Patrick K. Barron

John F. Moore1
Leslie R. Watters
Andrea P. Wolcott
Gerald R. Kelly1

•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New
York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines,
Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.




A93

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

LEGEND

~~

Boundaries of Federal Reserve Districts

®

Federal Reserve Bank Cities

Boundaries of Federal Reserve Branch
Territories

*

Federal Reserve Branch Cities
Federal Reserve Bank Facility

Q

Board of Governors of the Federal Reserve
System





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102