Full text of Federal Reserve Bulletin : February 1999
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Volume 85 • Number 2 • February 1999
i ^ Federal Reserve
£• BULLETIN
Board of Governors of the Federal Reserve System, Washington, D.C.
Table of Contents
81 TRENDS IN HOME PURCHASE LENDING:
CONSOLIDATION AND THE COMMUNITY
REINVESTMENT ACT
Consolidation among banking institutions has
substantially changed the structure of the banking industry. Between 1975 and 1997, the number of commercial banks and savings associations declined more than 40 percent. Over the
same broad period, the market for home mortgage lending has also changed substantially.
Notably, home mortgage lending is no longer
primarily the province of banking institutions
operating in the communities in which they have
banking offices. In recent decades, mortgage and
finance companies and banking organizations
operating outside their local communities have
gained a significant share of the mortgage market. These changes have fueled debate regarding
their effects on the provision of home mortgage
loans. One particular concern is that, as a consequence of these changes, lower-income and
minority borrowers and borrowers in lowerincome and minority neighborhoods may face
reduced access to mortgage credit.
This article examines the relationship between
consolidation among banking organizations in
local markets and changes in home purchase
lending over the 1993-97 period, both in terms
of total lending and lending to lower-income
and minority borrowers and neighborhoods.
Because credit availability is believed to be
essential to the economic health and vitality
of neighborhoods, the article also examines the
relationship between consolidation and changes
in home purchase lending by institutions in those
areas where they have responsibilities under the
Community Reinvestment Act.
103 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR DECEMBER 1998
Industrial production increased 0.2 percent in
December, to 132.8 percent of its 1992 average.
Production in December was boosted by a
1.6 percent increase in utilities. Capacity utilization stood at 80.9 percent in December. The
industry operating rate declined 2Vi percentage
points during 1998 to a level more than 1 percentage point below its 1967-97 average.
106 STATEMENT TO THE CONGRESS
Patrick M. Parkinson, Associate Director, Division of Research and Statistics, Board of Governors, presents a progress report on two studies
that are being conducted by the President's
Working Group on Financial Markets: one on
the implications of the operations of firms such
as Long-Term Capital Management (LTCM) and
their relationships with their creditors and the
other on the oversight of over-the-counter
(OTC) derivatives transactions. Mr. Parkinson
testifies that the regulation of OTC derivatives
raises a much wider range of issues, many of
which are unrelated to the LTCM episode, and
that this episode has no obvious bearing on what
are arguably the central issues in the OTC
derivatives study—whether or in what circumstances government oversight is appropriate to
deter fraud or market manipulation and how best
to provide legal certainty regarding the enforceability of OTC derivatives contracts. In brief,
the purpose of the study will be to assess the
need for government oversight to promote public policy objectives with respect to financial
markets. (Testimony before the Senate Committee on Agriculture, Nutrition, and Forestry,
December 16, 1998)
109 ANNOUNCEMENTS
Appointments of new members to the Thrift
Institutions Advisory Council.
Adjustment to the dollar amount that triggers
additional disclosure requirements under Regulation Z.
Decision on the legal disparities between Federal Reserve Banks and private-sector banks in
the presentment and settlement of checks.
Continuation of the exemption threshold for
depository institutions required to report data
under the Home Mortgage Disclosure Act.
Issuance of interim regulatory reporting and
capital guidance on the Statement of Financial
Accounting Standards No. 133.
Issuance of a uniform interagency policy statement on intercompany tax allocation agreements for banking organizations and savings
associations.
Proposed actions.
Enforcement actions.
Discontinuation of two statistical tables in the
Federal Reserve Bulletin.
Publication of the December 1998 update to the
Bank Holding Company Supervision Manual.
AI FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
December 29, 1998.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A76 INDEX TO STATISTICAL TABLES
A78 BOARD OF GOVERNORS AND STAFF
Changes in Board staff.
115 MINUTES OF THE FEDERAL OPEN MARKET
COMMITTEE MEETING HELD ON
NOVEMBER 17, 1998
At its meeting on November 17, 1998, the Committee adopted a directive that called for conditions in reserve markets that would be consistent
with a slight decrease in the federal funds rate to
43/4 percent. The directive did not include a bias
with regard to the direction of any adjustments
to policy during the intermeeting period.
125 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A80 FEDERAL OPEN MARKET COMMITTEE AND
STAFF; ADVISORY COUNCILS
A82 FEDERAL RESERVE BOARD PUBLICATIONS
A84 MAPS OF THE FEDERAL RESERVE SYSTEM
A86 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
PUBLICATIONS COMMITTEE
Lynn S. Fox, Chairman • S. David Frost • Karen H. Johnson • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Dolores S. Smith • Richard Spillenkothen
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 Multimedia Technologies Center
under the direction of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.
Trends in Home Purchase Lending: Consolidation
and the Community Reinvestment Act
Robert B. Avery, Raphael W. Bostic, Paul S. Calem,
and Glenn B. Canner, of the Board's Division
of Research and Statistics, prepared this article.
Kelly A. Bryant and John E. Matson provided
research assistance.
Consolidation among banking institutions has substantially changed the structure of the banking industry. Between 1975 and 1997, the number of commercial banks and savings associations declined more
than 40 percent. Most of this change was due to
mergers and acquisitions, though in some years failures and liquidations were also important. Recent
mergers and acquisitions have had particularly sizable effects on the shape of the industry, as many
have involved the nation's largest and the most geographically diverse banking institutions.
Over the same broad period, the market for home
mortgage lending has changed substantially. Notably,
home mortgage lending is no longer primarily the
province of banking institutions operating in the
communities in which they have banking offices.1 In
recent decades, mortgage and finance companies and
banking organizations operating outside their local
communities have gained a significant share of the
mortgage market.2 Today, fewer than half of all home
mortgage loans extended in any given community are
originated by banking organizations with banking
offices in that community.
These changes have fueled debate regarding their
effects on the provision of home mortgage loans. One
particular concern is that, as a consequence of these
changes, lower-income and minority borrowers and
borrowers in lower-income and minority neighborhoods may face reduced access to mortgage credit. In
part, this concern reflects the belief that a shift away
1. In this article, the term banking institution refers to commercial
banks and savings associations (savings banks and savings and loan
associations). It does not include credit unions and mortgage or
finance companies. The term banking office includes all locations
qualifying as separate deposit-taking offices under federal guidelines.
2. In this article, the term banking organization refers to commonly
owned commercial banks and savings associations and their subsidiaries and affiliates, including, for example, mortgage and finance
companies. Generally, a banking organization with multiple banking
institutions is termed a bank or thrift holding company.
from lending by institutions with local banking
offices and acquisitions of small community-based
banking institutions by large regional or national
organizations may result in a transfer of decisionmaking authority from those familiar with the needs
of local communities to those less knowledgeable
about, and thus less responsive to, such needs. This
article explores this issue by examining the relationship between consolidation among banking organizations in local markets and changes in home purchase lending over the 1993-97 period. We examine
changes in total lending as well as changes in lending to lower-income and minority borrowers and
neighborhoods.3
Previous research has considered the effects of
consolidation on various aspects of banking, including small business lending, product pricing, and the
geographic distribution of banking offices.4 These
studies indicate that, in some cases, consolidation
may significantly affect the provision of financial
3. Loans involving borrowers with income below 80 percent of the
current-year median family income of their respective metropolitan
statistical areas (MSAs) were classified as loans to lower-income
borrowers. Loans to black, Asian, Hispanic, Native American, and
"other race" borrowers were classified as loans to minorities. Information on the census tract location of the property being purchased
was used to determine which loans were originated in lower-income
or minority neighborhoods. Loans for properties in census tracts
whose 1990 median family income was less than 80 percent of the
1990 median family income of their MSA were classified as loans to
lower-income neighborhoods. Similarly, loans for properties in census
tracts with more than 20 percent minority residents in 1990 were
classified as loans to minority neighborhoods.
4. See, for example, Allen N. Berger, Anthony Saunders,
Joseph M. Scalise, and Gregory F. Udell, "The Effects of Bank
Mergers and Acquisitions on Small Business Lending," Journal of
Financial Economics, vol. 50 (February 1999); Joseph Peek and
Eric S. Rosengren, "Bank Consolidation and Small Business Lending:
It's Not Just Size That Matters," Journal of Banking and Finance,
vol. 22 (August 1998), pp. 799-820; Paul S. Calem and Leonard J.
Nakamura, "Bank Branching and the Geography of Bank Pricing,"
Review of Economics and Statistics (forthcoming); Timothy H. Hannan and Robin A. Prager, "Do Substantial Horizontal Mergers Generate Significant Price Effects? Evidence from the Banking Industry,"
Journal of Industrial Economics, vol. 46 (December 1998), pp. 43252; Robert B. Avery, Raphael W. Bostic, Paul S. Calem, and Glenn B.
Canner, "Changes in the Distribution of Banking Offices," Federal
Reserve Bulletin, vol. 83 (September 1997), pp. 707-25; and
Robert B. Avery, Raphael W. Boslic, Paul S. Calem, and Glenn B.
Canner, "Consolidation and Bank Branching Patterns," Journal of
Banking and Finance, vol. 23 (February 1999).
82
Federal Reserve Bulletin I.'.! February 1999
services. This article extends the line of research by
exploring the relationship between consolidation and
lending to purchase homes.
This article also examines a related issue. Banking
institutions have a legal responsibility to help serve
the credit needs of their local communities—those
areas in which they operate banking offices. The
Community Reinvestment Act (CRA) of 1977
encourages banking institutions to help meet the
credit needs of their local communities, including
those of lower-income borrowers and of borrowers
residing in lower-income neighborhoods.5 Because
credit availability is believed to be essential to the
economic health and vitality of neighborhoods, we
also examine the relationship between consolidation
and changes in home purchase lending by institutions
in those areas where they have CRA responsibilities.
Little previous research has been done on this narrower issue.
Until recently, only limited information has been
available to systematically assess these issues. The
analysis in this article relies on a new, specially
constructed database that uses information on mergers, acquisitions, and failures of commercial banks
and savings associations and data on the location
of banking offices and neighborhood economic and
demographic characteristics. These data are combined with data obtained pursuant to the Home Mortgage Disclosure Act (HMDA) for the years 1993
through 1997 on home purchase lending.6
OVERVIEW OF THE RESULTS
When measured at the market (county) level, the
level of consolidation activity among banking organi-
5. The CRA directs the federal banking agencies to evaluate each
institution's performance in meeting its community's credit needs and
to consider this performance when acting on applications for mergers
and acquisitions. For a discussion of the Community Reinvestment
Act and the implementing regulation, see the Federal Reserve Press
Release, April 24, 1995. Revisions to the implementing regulation in
1995 include performance tests that consider an institution's record of
lending both to lower-income neighborhoods and to lower-income
borrowers.
6. Although HMDA data on home purchase lending in metropolitan areas have been collected since 1977, 1993 is selected as the initial
year for the analysis for two reasons. First, information on the income
and race or ethnic origin of borrowers has been included in the
HMDA data only since 1990, which precludes the analysis of the
effects of mergers on borrowers arrayed by these characteristics
before that year. Second, 1993 is the first year the HMDA data include
the lending activity of most of the nation's most active independent
mortgage companies—firms that extend about one-third of the home
purchase loans in metropolitan areas. Analyses that exclude such
active mortgage lenders would provide only a partial, and potentially
distorted, picture of the mortgage market.
zations appears to have had little relationship to
changes in home purchase lending, both overall and
to lower-income and minority borrowers and neighborhoods. This finding suggests that, in general, consolidation has not had significant anticompetitive
effects on home purchase lending and that lending to
lower-income and minority borrowers and neighborhoods has not been adversely affected by consolidation. This result holds despite the fact that consolidating organizations reduced their home purchase
lending substantially in those areas in which they had
banking offices. It appears that this reduction was
more than offset by expanded home purchase lending
by banking organizations in areas where they did not
operate banking offices and by independent mortgage
and finance companies and credit unions. In particular, consolidating banking organizations expanded
their lending dramatically in areas where they did not
operate banking offices. Thus, the very organizations
that reduced their lending in markets where they
operated offices were the organizations that expanded
most in other areas. This result suggests that a driving force underlying changes in the home purchase lending market has been a desire by banking
organizations to diversify their lending activity
geographically.
Although banking institutions involved in consolidation reduced their overall lending in the communities where they had banking offices, this reduction
did not disproportionately affect their lending to
lower-income and minority borrowers and neighborhoods. The analysis shows that the typical consolidating organization generally increased the proportion
of loans it extended to each of these groups within
its local communities. These results are consistent
with the view that the CRA has been effective in
encouraging banking organizations, particularly those
involved in consolidation, to serve lower-income and
minority borrowers and neighborhoods.
A full understanding of these relationships requires
a broader analysis and is beyond the scope of this
article. For example, loan pricing, the complexity of
product offerings, and the varied motivations driving
consolidation must all be investigated fully to reach
more definitive conclusions about the effects of consolidation on home purchase lending. It should also
be emphasized that the results presented here reflect
aggregate trends and may not apply to any particular
market or consolidation.
TRENDS IN BANKING CONSOLIDATION
Over the past twenty years, the number of banking
institutions declined substantially, from 18,679 in
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
1975 to 11,077 in 1997—a decline of more than
40 percent. Just since 1993, the number of institutions has dropped about 18 percent. Consolidation
during the 1980s and early 1990s was associated with
a quickening pace of merger and acquisition activity
along with substantial numbers of failures and liquidations. More recently, the decline in the number of
banking institutions has been overwhelmingly the
result of mergers and acquisitions. From 1993
through 1997, the number of banking institutions
acquired in a merger or acquisition totaled 2,839, or
Geographic Restrictions in Banking
Historically, the ability of banking institutions to merge
or to buy one another and to establish branch offices both
within and across local communities has been sharply
curtailed by federal and state laws limiting geographic
expansion by banks.1 Over the past two decades or so,
many of these laws have been changed or eliminated,
resulting in the easing of barriers to consolidation.
Before 1975 intrastate restrictions on bank branching
were commonplace. For example, only seventeen states
allowed commercial banks to establish offices within
their state with few or no geographic restrictions. Since
then, mainly in the 1980s, geographic restrictions on
intrastate branching have been removed or relaxed substantially in all states. The easing of these restrictions
allows banking organizations to expand their geographic
reach by establishing or acquiring branch offices rather
than by merging with, or acquiring, another banking
institution.
Geographic restrictions on banking extended beyond
branching limitations to restrictions on banking institutions merging with, or acquiring, organizations in another
state. For example, until the 1970s, no state permitted
out-of-state commercial banking organizations to operate
in-state banking subsidiaries. State barriers began to fall
in 1978 when Maine relaxed restrictions on entry by
out-of-state holding companies. During the next fifteen
years or so, every state except Hawaii followed suit by
allowing some degree of interstate banking.
The Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994 further eased restrictions on interstate banking in two important ways. First, it allowed
bank holding companies to acquire a bank in any state
provided certain conditions were met, including compliance with the CRA. Second, it substantially eased restrictions on interstate branching, although some important
restrictions continue to exist.
1. For a discussion of the various banking laws, see Avery, Bostic,
Calem. and Canner, "Changes in the Dislribution of Banking Offices,"
pp. 712—13 and Anthony W. Cyrnak, "Bank Merger Policy and the New
CRA Data." Federal Reserve Bulletin, vol. 84 (September 1998),
pp. 703-15.
83
21 percent of all institutions. Over the same period,
only 40 institutions were liquidated, and 431 new
institutions were formed.
Consolidation in the banking industry has been
driven in important ways by technological advances,
globalization of financial services markets, and
efforts to increase efficiency, reduce costs, or gain
competitive advantage. Besides the effects of these
economic factors, the pace of consolidation has
accelerated because of the relaxation of regulatory
restrictions on the ability of banking organizations
to expand geographically and to establish banking
offices, although some legal restrictions, including
federal antitrust laws, continue to restrict potential
combinations.7 (See box "Geographic Restrictions in
Banking.")
Much of the industry's consolidation has involved
mergers and acquisitions among banks that had been
operating in different local markets within the same
state, in different states within the same geographic
region, or even in different regions. As a result,
consolidation has been accompanied by a substantial
broadening of the geographic reach of many banking
organizations, so that many of the nation's largest
organizations now operate across entire regions or
even across multiple regions of the country. Whereas
before 1980 only a handful of banking organizations
operated in more than one state, by mid-1998, more
than one-quarter of banking institution assets were
owned by banking organizations with headquarters
in another state. Moreover, a substantial increase has
occurred in the share of total banking institution
assets controlled by the largest banking organizations.8 In many cases, mergers have had a significant
effect on concentration in local banking markets,
although, on average across the United States, local
market concentration has not increased substantially
over time. One might expect this broad restructuring
of the industry to have potential implications for
retail banking relationships, such as the provision
of financial services to lower-income and minority
communities.
7. The two main federal antitrust laws are the Clayton Act of 1914
and the Sherman Act of 1890. In addition, the Bank Holding Company Act of 1956 and the Bank Merger Act of 1960 include antitrust
provisions that specifically pertain to the activities of banking
organizations.
8. The proportion of domestic banking assets accounted for by the
100 largest banking organizations rose from just over 50 percent in
1980 to 70 percent in June 1998. Notably, however, small community
banks have generally been able to retain their market shares and
profitability in competition in banking markets increasingly dominated by the major banks (testimony by Governor Laurence H. Meyer
before the Committee on Banking and Financial Services, U.S. House
of Representatives, April 29, 1998).
84
Federal Reserve Bulletin • February 1999
INDUSTRY CONSOLIDATION AND LENDING TO
LOWER-INCOME AND MINORITY BORROWERS
AND NEIGHBORHOODS
Access to home mortgage credit among lowerincome and minority borrowers and borrowers in
lower-income and minority neighborhoods may be
sensitive to changes caused by consolidation in the
banking industry. This view derives from two general
sets of arguments, which have potentially different
implications. On the one hand, decentralized (local)
decisionmaking may be especially important to a successful lower-income lending program, and consolidation may potentially reduce the role of local decisionmaking. On the other hand, because lending to
lower-income and minority borrowers and neighborhoods sometimes involves special considerations
of credit risk and often requires increased resources
for risk-management activities, such lending may
increase when consolidation improves the ability of
institutions to efficiently evaluate, monitor, and manage credit risk.
These potential effects can vary, depending on a
number of factors, such as whether the institutions to
be combined operate within the same local communities. Other factors include competitive interactions
among institutions, regulatory considerations, and the
diminished role of savings associations. Ultimately,
the effects of any given consolidation will depend on
how it is implemented and on the commitment and
ability of the management of the surviving institution
to helping meet the credit needs of all segments of its
community.
The Role of Local Decisionmaking
Successful home purchase lending to lower-income
and minority borrowers and neighborhoods often
requires considerable knowledge of the circumstances prevailing in local neighborhoods and expertise in evaluating the credit risks associated with
such lending.9 Institutions active in such lending
frequently use flexible credit standards, nontraditional measures of credit quality, a variety of credit
enhancements (such as private and public subsidies
and guarantees), and intensive monitoring of outstanding loans to expand their lending beyond those
borrowers who are eligible for more conventional
credit products. These institutions sometimes participate in local public agency programs in which the
9. See Board of Governors of the Federal Reserve System. Report
to the Congress on Community Development Lending by Depository
Institutions (Board of Governors, October 1993).
public authority provides funds, in the form of either
grants or low-cost loans, to help meet the borrower's
downpayment or closing costs, or sets up a fund to
guarantee repayment of the loan. These lenders also
work with community organizations to identify and
counsel prospective loan applicants and to monitor
borrower repayment performance.
Some believe that mergers and acquisitions may
have an adverse effect on lending to lower-income
and minority borrowers and neighborhoods when
they result in a transfer of decisionmaking to those
outside the local community. In this view, centralized
decisionmakers may find it more difficult to accurately assess nontraditional credit risks. They may
have less knowledge about economic conditions or
credit-risk factors specific to the local community, or
they may have less flexibility in decisionmaking.
Such concerns tend to be heightened when a large
bank acquires a small bank, or when a bank is
acquired by an institution that had not previously
operated in the local market.10
A related concern is that mergers and acquisitions,
as well as failures, may lead to branch closings and
the loss of lending personnel who are familiar with
the needs of the local community. Real estate agents,
home builders, and those working for nonprofit
groups or community organizations often develop
working relationships with individual mortgage loan
officers and may find the disruption of such relationships problematical.
Opportunities Created by Technology Transfer,
Information Sharing, and Risk Management
Although mergers and acquisitions may lead to disruptions and changes in business relationships, some
contend that consolidation often provides new opportunities to expand service to lower-income and
minority borrowers and neighborhoods. Beneficial
effects may arise through a variety of channels. For
example, a small lender that becomes part of a larger
organization may be able to take advantage of new
technologies that reduce loan origination costs, such
as automated underwriting, thus potentially improving access to credit for consumers. More generally,
mergers and acquisitions may result in greater
efficiencies in underwriting, application processing,
and loan-servicing activities if scale economies can
be achieved or if the firm being acquired has been
10. For discussion of the potential advantages of small banks, see
Leonard 1. Nakamura, "Small Borrowers and the Survival of Ihe
Small Bank," Federal Reserve Bank of Philadelphia, Business Review
(November/December 1994), pp. 3-13.
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
less well managed than the acquirer. The lifting of
regulatory restrictions on geographic expansion may
permit mergers that enhance the efficiency of the
combined institutions, with the potential of making
available additional resources for lending. Each of
these efficiencies may increase an institution's ability
to serve lower-income and minority borrowers and
neighborhoods.
Consolidation may generate a sufficient volume of
activity or allow the pooling of information to enable
the development of certain types of expertise. For
instance, so-called informational returns-to-scale may
be present by which merging banks gain sufficient
volume to become specialists in lending in lowerincome and minority communities, leading to greater
efficiencies and reduced costs for such lending."
Another type of informational advantage may come
from a consolidation in which the parties are able
to pool mutually beneficial information that would
otherwise remain private.12
As noted, effective lending to lower-income borrowers often involves leveraging private- and publicsector funds. Public programs are frequently complex
in their administration, and implementing such programs can require expenditures that smaller institutions have difficulty absorbing.13 As a consequence,
new credit-related programs and other types of
public-sector resources that broaden access to credit
may become available to the customers of an
acquired bank that previously lacked sufficient
resources to fully participate in these programs.
Diversification of loan portfolios achieved through
consolidation can potentially play an important role
in fostering and sustaining a lending program targeted to lower-income borrowers or communities.
Diversifying a portfolio by including loans from different geographic areas and different customer bases,
both within and across communities, can enable a
lender to achieve more predictable and stable earnings. Portfolio diversification may also enhance
opportunities to package loans for resale in the secondary market, thereby providing new avenues to
raise funds for additional lending. Moreover, consolidation may enhance mortgage lending opportunities
if an institution facing capital constraints on additional lending merges with an institution that has a
capital surplus.
11. See Robert B. Avery, Patricia E. Beeson, and Mark S. Sniderman. "Neighborhood Information and Mortgage Lending," Journal of
Urban Economics (forthcoming).
12. See William W. Lang and Leonard I. Nakumura, "A Model of
Redlining," Journal of Urban Economics, vol. 33 (1993), pp. 223-34.
13. See Report to the Congress on Community Development Lending by Depository Institutions.
85
Market Performance Implications
of Consolidation
Consolidation may affect the competitive interaction
among lending institutions in a market, with possible
implications for market performance. A reduction in
competition brought about by consolidation might
adversely affect the availability of credit or creditrelated services in a community, although such effects
might not disproportionately affect lower-income and
minority borrowers and neighborhoods. One scenario
in which lending to minority borrowers and minority
neighborhoods might be adversely affected, at least
in the short run, is a reduction in competitive pressures that enables some lenders to engage in discriminatory practices.14 More generally, if a reduction in
competition in a given market results in higher prices
or tighter credit standards, lower-income and minority borrowers may be disproportionately affected to
the extent that a larger proportion of such borrowers
are marginally qualified.
Consolidation may not only affect the behavior of
the parties involved but may also have implications
for other market participants. For instance, if the
parties to a merger curtail their lending to lowerincome and minority borrowers and neighborhoods,
then other banks in the market or new entrants may
view this as an opportunity to gain customers. This
expansion or entry by other institutions may offset
some or all of the reduction in lending by the merged
institution.15 Such offsets are also possible for failed
institutions: Many failed banks and savings associations are acquired by healthy organizations or are
reopened by investors entering the banking business.
The Role of Regulation
One aspect of government regulation of banking
activity emphasizes encouraging the availability of
14. The theory of prejudicial discrimination developed by Becker
suggests that lenders who enjoy market power may choose to sacrifice
profits to engage in discriminatory practices. However, the theory also
suggL-sK that under competitive conditions, prejudicial discrimination
cannot be sustained in the long run because capital will flow to those
firms that forgo discrimination and consequently earn higher profits.
See Gary S. Becker. The Economics of Discrimination (Chicago:
University of Chicago Press, 1957).
15. Previous research finds evidence of offsetting responses by
other market participants. For example, the closure of branches by
merging institutions with overlapping branch networks is partly offset
by the opening of new branches by other institutions. See Avery,
Bostic, Calem, and Canner. "Changes in the Distribution of Banking
Offices." Also, research on the effect of consolidation on small
business lending finds that non-merging banks collectively tend to
increase their supply of small business credit when mergers occur in
their markets. See Berger, Saunders, Scalise, and Udell, "The Effects
of Bank Mergers and Acquisitions on Small Business Lending."
86
Federal Reserve Bulletin • February 1999
credit to lower-income and minority borrowers and
neighborhoods. This policy is implemented in two
ways. First, regulators periodically review the record
of banking institutions in meeting their CRA and fair
lending obligations. Second, CRA performance is
also considered as part of the review of applications
for mergers and acquisitions involving banking
institutions.
All banking institutions are likely to be concerned
about their periodic CRA evaluations. Institutions
actively engaged in consolidation activity may be
particularly concerned because of the role such evaluations play in the merger and acquisition approval
process. In considering applications for mergers and
acquisitions, regulators review the results of CRA
compliance examinations, material submitted by the
applicant, and comments from the public on the
institution's performance. Poor CRA performance
records may result in the denial of an application or
delay of approval until the institution can demonstrate a record of satisfactory performance.16 It should
be noted that home mortgage lending is only one of
many activities that are considered when evaluating
CRA performance. It is possible for an institution to
earn a good CRA rating and make no mortgage loans.
Institutions with poor CRA track records are more
likely to encounter broad-based substantive objections from the public when applying for approval of
mergers or acquisitions, although even merging institutions with strong records of CRA performance
sometimes encounter CRA-related protests. Such protests can result in adverse publicity and additional
costs because the institution must often prepare
extensive material to respond to them. To avoid
CRA-related protests, as well as for other reasons,
many banking institutions, particularly those likely to
be involved in consolidation, have sought to enhance
their records of serving their local communities by
entering into agreements with community organizations. These agreements often include commitments
by the institution to achieve targeted lending volumes
in lower-income communities. ' 7
Thus, for institutions active in mergers and acquisitions, the CRA provides incentives to maintain an
aggressive program of lending to lower-income bor-
16. See Griffith L. Garwood and Dolores S. Smith, "The Community Reinvestment Acl: Evolution and Current Issues," Federal
Reserve Bulletin, vol. 79 (April 1993), pp. 251-67; and remarks by
Governor Edward M. Gramlich, "Examining Community Reinvestment," at Widener University, Chester, Pennsylvania, November 6,
1998.
17. See Alex Schwartz, "Bank Lending to Minority and LowIncome Households and Neighborhoods: Do Community Reinvestment Agreements Make a Difference?" Journal of Urban Affairs.
no. 3(1998), pp. 269-301.
Digitizedvol.
for20,
FRASER
rowers and neighborhoods. The incentives created
by the CRA may contribute to a positive association
between consolidation activity and lending to lowerincome borrowers or to lower-income neighborhoods.
By statute, regulators must also consider the competitive implications of proposed mergers and acquisitions along with their potential effects on the "convenience and needs" of the communities involved.
Proposed consolidations that may have a substantial
adverse effect on competition in a market generally
are not approved unless there are countervailing convenience and needs considerations (such as the acquisition of a failing bank by a healthy institution).
Often, proposed mergers or acquisitions that initially
raise serious anticompetitive issues are approved only
after the parties agree to sell (divest) banking offices
with deposits and assets to limit their increase in
market share. Thus, regulatory review of proposed
mergers and acquisitions mitigates the possibility that
consolidation may adversely affect competition and
credit availability in the local community.
i'(>nsii!idalions Involving Savings
Many of the recent consolidations in banking have
involved the acquisition of savings associations by
commercial banks, a development that may affect
home purchase lending. Savings associations are
encouraged, through tax provisions and other incentives, to hold the majority of their assets in home
mortgages and also face restrictions on the amount
of commercial lending they are permitted. Because
commercial banks do not have similar incentives
to extend mortgages and are not similarly restricted
in their non-mortgage lending, the share of total
assets devoted to mortgages may decline in the
wake of commercial bank acquisitions of savings
associations.
( V>\S( n.iDMios, i.w> MARKS.T-I.I:\ i:±
Cu,\\<ii:s ix MORHLXCI:
l.Lsntxi;
Given the variety of possible theoretical effects of
consolidation on lending to lower-income and minority borrowers and neighborhoods, empirical analysis
can help provide a greater understanding of this
issue. We use a specially constructed database that
combines information on mergers, acquisitions, and
failures of banking institutions with data on the
location of banking offices, neighborhood economic
and demographic characteristics, and home purchase
lending activity in metropolitan areas. (See the appendix for more details on the construction of the database.) The analysis of these data provides information on trends in lending patterns in geographic areas
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
with varying levels of consolidation activity. This
information allows us to assess the degree to which
consolidation is associated with changes in home
purchase lending overall, as well as to lower-income
and minority borrowers and neighborhoods.
Analytic Framework
The unit of analysis for this research is the county.
The county represents a compromise between the
MSA and smaller geographic units, such as a ZIP
code or census tract. On the one hand, for some small
banking organizations, the CRA service area may be
smaller than a county. In addition, for some consolidations a focus of concern may be the effects on an
area smaller than a county. On the other hand, for
large organizations CRA evaluations may be based
on their lending throughout an entire MSA. It should
be noted that more than half of the MS As in the
United States are made up of only one county, and
thus for these MSAs, the distinction between the
county and the MSA makes no difference.
In a given county, we count the number of home
purchase loans extended overall and those extended
to lower-income and minority borrowers and neighborhoods by all lenders. We compare counties that
had high levels of consolidation activity with those
that had little or no consolidation activity. Data limitations force us to restrict the analysis to lending in
counties in metropolitan areas (see the appendix).
The analysis focuses on trends in home purchase
lending during two periods, 1993-95 and 1995-97.
We use three-year study periods because it may take
some time for the effects of a consolidation to influence home purchase lending. For example, the integration of mortgage lending operations, including
the retraining of staff and coordination of mortgage
underwriting activities, may require considerable
effort and time. Too long a study period, however,
makes it difficult to separate the effects of consolidation from other factors that may influence home
purchase lending. Three-year study periods seem a
reasonable compromise between these two concerns.
Further, two periods are used because significant
variation occurred in the overall patterns of home
purchase lending between 1993-95 and 1995-97.
Comparing and contrasting the observed relationships in the two periods allow us to draw more
definitive conclusions about how consolidation influences home purchase lending patterns.
Consolidations are defined at the level of the
banking organization. Both institutional mergers and
holding company acquisitions are treated as consoliMergers among subsidiaries of the same
Digitizeddations.
for FRASER
87
holding company, however, are not considered
consolidations. All structural changes involving a
banking organization over each three-year period
are treated as a single consolidation. Thus, a consolidation might involve multiple mergers and
acquisitions (see the appendix). To count as a consolidation in a given county, the consolidation must
have involved the acquisition of a banking institution
operating banking offices in that county. Counties
in which only the acquiring institution operated
banking offices are not considered to have had
consolidations.
Counties are categorized by their level of consolidation activity. To determine this level, we calculate
the proportion of all home purchase loans in a county
in the first year of each study period that was originated by banking organizations with a consolidation
in the county. Counties are grouped by this proportion into three categories: (I) counties in which
no organizations were involved in a consolidation; (2) counties in which the proportion of loans
extended by organizations involved in consolidation
was less than or equal to the median share of loans
extended by organizations involved in consolidation
for that period (counties with low consolidation activity); and (3) counties in which the proportion of
loans extended by organizations involved in consolidation was greater than the median share of loans
extended by organizations involved in consolidation
for that period (counties with high consolidation
activity). For the latter two groups, the median share
is calculated using only those counties that had
consolidations.
Counties are further divided along a number of
other dimensions. To differentiate the effects of consolidation in markets of different sizes and growth
rates, counties are grouped by the number of residents in the county as of 1995 and by the change in
their populations over the 1993-95 period. In addition, because market structure may influence lending strategies, counties are grouped according to the
market concentration in the MSA in which the county
is located, which was measured by a HerfindahlHirschman index (HHI) based on banking deposits in
the MSA.18 A threshold HHI value of 1800 is used
18. A Herfindahl-Hirschman index (HHI) based on banking deposits is a standard measure used to assess the competitiveness of banking
markets. The Federal Reserve Board includes thrift deposits at 50 percent in calculating market HHI values for its bank merger analysis.
(For more details, see Anthony W. Cyrnak, "Bank Merger Policy and
the New CRA Data," Federal Reserve Bulletin, vol. 84 (September
1998), pp. 703-15.) In this analysis, we include deposits by savings
associations at 100 percent in calculating HHI values for each MSA
because savings associations are active competitors in the home
mortgage lending market.
Federal Reserve Bulletin • February 1999
because regulators consider a post-consolidation HHI
value of more than 1800 as one signal that the consolidation may have anticompetitive effects in the
market.
General Patterns of Home Purchase Lending
Over the 1993-97 period, home purchase lending in
metropolitan areas expanded robustly, as a strong
economy and job market and relatively low interest
rates encouraged additional home buying (table 1).
Although lower-income and minority borrowers and
neighborhoods accounted for a moderate proportion
of home purchase loans each year, the amount of
lending to such groups increased at a faster rate than
that to other groups.19 For example, over 1993-97,
lending to lower-income borrowers increased about
31 percent (measured by the change in the number of
loans), while lending to higher-income borrowers
19. For additional informalion about these patterns, see the Federal
Financial Institutions Examination Council press release, August 6,
1998.
(those with incomes greater than 120 percent of
the median family income of the MSA where they
purchased a home) rose 18 percent (table 2, memo
item). Similarly, lending to minority borrowers
increased about 53 percent, while lending to nonminority borrowers increased 13 percent.
The substantial growth in lending to lower-income
and minority borrowers and neighborhoods in recent
years is the consequence of many factors. Besides the
bolstering of demand by the strong economy and job
market, relatively low interest rates on home loans
and relatively modest changes in home prices have
combined to improve the affordability of homebuying. Moreover, since the early 1990s, originators of
conventional home purchase loans have initiated a
wide variety of affordable home purchase lending
programs intended to benefit lower-income and
minority borrowers and neighborhoods.20 Significant
20. For more information see Robert B. Avery, Raphael W. Bostic,
Paul S. Calem, and Glenn B. Canner, "Credit Risk, Credit Scoring,
and the Performance of Home Mortgages," Federal Reserve Bulletin,
vol. 82 (July 1996), pp. 621-48.
Distribution of home nunjh;i\L' loans, by L'haritcti'risiic of borrower and neighborhood, 1993-97
Borrower or census
tracl characteristic
1993
1994
1997
1996
1995
Number
Percent
Number
Percent
Number
Percent
Number
Percent
Number
Percenl
380,002
1,974.386
2,354,388
16.1
83.9
100.0
483.781
2.065,434
2,549,215
19.0
81.0
100.0
495,815
1.950,183
2.445.998
20.3
79.7
100.0
556.229
2.231.494
2.787.723
20.0
80.0
100.0
582.816
2.234,608
2.817,424
20.7
79.3
100.0
156,639
488.4S6
722.877
1,020.915
2,388,917
6.6
20.5
30.3
42.7
100.0
190.523
532.891
7.4
0 6
30.0
42.0
100.0
159,126
516,317
744.231
1.058,458
2.478.132
6.4
20.8
30.0
42.7
100.0
200.401
608.596
838.997
1,178.732
2.826.726
7.1
21.5
29.7
41.7
100.0
213,763
629,636
836,960
1.205.063
2.885,422
7.4
21.8
29.0
41.8
100.0
Racial or ethnic composition
{minorities as a percentage
of population)'
Less than 5
5-9
10-19
20-49
50 or more
Total
772.595
530.333
526,196
414,706
183.119
2.426.949
31.8
21.9
21.7
30.8
2i.3
2I.9
17.8
30.9
885.891
609,897
635,674
515.328
233.508
2.880,298
30.8
21.2
877.244
625.635
661.654
536,525
247,469
2.948,527
29.8
21.2
22.4
18.2
7.5
100.0
775,968
528,118
547,444
447,381
214.635
2.513,546
8.4
100.0
Income (median family)
(percentage of MSA median)'
Less than 50
50-79
80-119
120 or more
Total
26.689
227,706
1,202,522
970,032
2.426,949
1.1
9.4
49.5
4O.0
100.0
38,034
301.398
1,476.450
1.132,645
2.948.527
1.3
10.2
50.1
38.4
100.0
All
2,430,844
BORROWER
Racial or ethnic group'
Minority
Nonminority
Total
Income
(percentage of MSA median)2
Less than 50
50-79
80-119
120 or more
Tola!
77.1.162
1,084,337
2,580,913
1
NEIGHBORHOOD
(CENSUS TRACT)
17.1
801.662
556,054
572,154
463.051
213.886
2.606.807
30.592
255.575
1.301.267
1.019,373
2.606.807
8.2
100.0
LI
9.8
49.9
39.1
100.0
2,609.469
NOTE. Includes only owner-occupied one- to four-family home purchase
loans extended for properties in metropolitan statistical areas (MSAs). The
counties included are those that were in MSAs throughout the period. Thus, loan
counts will differ from figures published by the Federal Financial Institutions
Examination Council (FF1EC). Totals for the four borrower and neighborhood
categories differ because information regarding borrower race or ethnic status
and income or property location was not reported for all loans.
32.179
266,002
1.279.304
936,061
2.513.546
2.515,906
21.0
21.8
17.8
8.5
100.0
1.3
10.6
50.9
37.2
100.0
35.777
294.069
1.455,975
1,094.477
2.880,298
2,882,921
22.1
17.9
8.1
100.0
1.2
10.2
50.5
40.0
1O0.0
2,951,583
1. Loans to black, Asian, Hispanic, Native American and "other race" bor
rowers are classified as minority loans.
2. MSA median family income is estimated for each year by the Department of Housing and Urban Development.
3. Median family income and racial composition are derived from the 1990
Census of Population and Housing.
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
2.
Change in home purchase lending, by characteristic
of borrower and neighborhood, 1993-97
Percent
Borrower or census
tract characteristic
1993
to
1994
1994
to
1995
1995
to
1996
1996
to
1997
Memo
1993-97
27.3
4.6
8.3
2.5
-5.6
-4.0
12.2
14.4
14.0
4.8
.1
1.1
53.4
13.2
19.7
21.6
9.1
7.0
6.2
8.0
-16.5
-3.1
-3.7
-2.4
-4.0
25.9
17.9
12.7
11.4
14.1
6.7
3.5
-.2
2.2
2.1
36.5
28.9
15.8
18.0
20.8
3.8
4.8
8.7
11.7
16.8
7.4
-3.2
-5.0
-4.3
-3.4
.4
-3.6
14.2
15.5
16.1
15.2
8.8
14.6
-1.0
2.6
4.1
4.1
6.0
2.4
13.5
18.0
25.7
29.4
35.1
21.5
14.6
12.2
8.2
5.1
7.4
5.2
4.1
-1.7
-8.2
-3.6
11.2
10.6
13.8
16.9
14.6
6.3
2.5
1.4
3.5
2.4
42.5
32.4
22.8
16.8
21.5
7.3
-3.6
14.6
2.4
21.4
BORROWER
Racial or ethnic
group1
Minority
Nonminority
Total
Income
(percentage of MSA
median)2
Less than 50
50-79
80-119
120 or more
Total
NEIGHBORHOOD
(CENSUS TRACT)
Racial or ethnic
contposition
(minorities as a
percentage of
population)'
Less than 5
5-9
10-19
20-49
50 or more
Total
Income (median family)
(percentage of MSA
median)'
Less than 50
50-79
80-119 ..-.
120 or More
Total
NOTE. Includes only owner-occupied one- lo four-family home purchase
loans extended for properties in MSAs. The counties included are those that
were in MSAs throughout the period. Thus, loan counts will differ from figures
published by the FF1EC. Totals for the four borrower and neighborhood categories differ because information regarding borrower race or ethnic status and
income or properly location was not reported for all loans.
1. Loans to black, Asian, Hispanic, Native American and "other race" borrowers are classified as minority loans.
2. MSA median family income is estimated for each year by the Department of Housing and Urban Development.
3. Median family income and racial composition are derived from the 1990
Census of Population and Housing.
changes in government-backed lending programs in
recent years have also improved opportunities for
lower-income borrowers. For example, the Federal
Housing Administration (FHA) has reduced the
up-front mortgage insurance premium for FHAinsured loans, raised the maximum loan amount
eligible for FHA backing, and increased underwriting
flexibility.
The Effects of Consolidation
To analyze the effects of consolidation activity on
home purchase lending patterns, we track changes
in the number of home purchase loans originated
in counties sorted by their degree of consolidation
activity for each of the two study periods. In each
period nearly all home purchase loans were extended
in counties that had some consolidation activity
(table 3). Only about 5 percent of loans were originated in MSA counties with no consolidation activity
during the two study periods. Loan volumes were
similar in counties with low levels of consolidation
activity and in those with high levels. Because nearly
all home purchase loans in MSAs were originated in
counties with some level of consolidation, the most
useful comparison is between counties with relatively
low levels of consolidation activity and those with
relatively high levels. The noteworthy relationships
between consolidation and changes in lending are
those that are consistent across time periods and
robust when controls for other factors are considered.
We use multivariate regressions to help identify
such relationships, although these regressions are not
shown in this article.
Percentage changes in the number of home purchase loans extended in a county are not significantly
different in areas with high and those with low consolidation activity for both overall lending and across
the four borrower and neighborhood lending categories (table 3). There are only minor exceptions to this
result. In particular, for the 1993-95 period smaller
counties with high levels of consolidation have a
lower growth rate of home purchase loans—both
overall and for lower-income applicants—than
smaller counties with low levels of consolidation
activity.
Although growth rates do not generally differ by
the level of consolidation activity in a county, they
do differ between periods and across the lending
categories. For example, the growth in the number of
loans to minority borrowers is generally greater
than the growth in the number of loans to lowerincome borrowers. However, within any given borrower or neighborhood category, there is little difference in the loan growth rate between counties with
low consolidation activity and those with high consolidation activity. This result also holds when counties are grouped by population, population growth
rate, and market concentration.
The failure to find a consistent and robust relationship between the level of banking consolidation and
changes in home purchase lending has two possible
explanations. Consolidating organizations may not
change their home purchase lending behavior. Alternatively, any changes in home purchase lending
activity by consolidating organizations may be offset
by other market participants. Home purchase lending
90
3.
Federal Reserve Bulletin • February 1999
Home purchase loans, by level of consolidation activity in a county, county characteristic, and market concentration level.
1993-95 and 1995-97
Level of
consolidation
activity
by county
characteristic
and market
concentration
level
Type of borrower'
All borrowers
Minority
1993-95
1995-97
Lower-income
1995-97
1993-95
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
2.430,844
116,023
1.120,439
1.194,382
3
15
4
2
2.515,906
155,886
1,030,464
1,329.465
17
10
17
19
380,002
9.744
193.798
176,460
30
44
27
33
495,815
15.203
172,853
307,759
3
14
5
0
1,243.745
145,480
587,619
510,646
14
11
15
13
111,916
8,854
55,682
47.380
35
43
33
34
4
16
3
5
1,272,161
10,506
442,845
818.810
21
0
19
22
268.086
890
138,116
129,080
By county
growth rate4
Low growth
1,287,804
None
55.055
Low
529,018
High
703.731
High growth . . . . 1,143,040
None
6,098
Low
591,421
High
490,651
2
10
2
2
5
19
5
3
1,314,868
89.039
402,281
823,548
1,201,038
66,947
628,183
505,908
16
7
15
17
19
15
18
21
By market
concentration5
Less than 1800
2.122,710
None
93.065
Low
1.028,222
High
1,001,423
1800 and more .. 308,134
None
22,958
Low
92,217
High
192,959
4
16
3
3
2
8
5
1
2.166,613
109.407
845,191
1.212,015
349,293
46,579
185,273
117,441
18
12
17
20
12
7
16
8
1995-97
1993-95
Percentage
change
Inilial
number
Percentage
change
Inilial
number
Percentage
change
18
3
18
18
645,125
33.425
285,155
326.545
5
16
5
3
675,443
44.909
285.285
345,249
25
21
25
25
150.557
10,088
74,501
65.968
16
12
17
15
334,858
31,381
140,076
163.401
3
16
3
0
343,915
42.446
162,441
139,028
23
21
25
22
29
57
25
33
345,258
5,115
98,352
241.791
18
-16
18
19
310,267
2,044
145.079
163,144
7
19
7
7
331.528
2.463
122,844
206,221
27
22
26
27
226,156
5.377
107.442
113,337
153,846
4,307
86,356
63,123
26
39
22
29
37
51
33
40
285.737
11.474
74.072
200,191
210.078
3,729
98.781
107,568
14
-3
13
15
22
19
21
24
350,217
15.605
135,730
198,882
294,908
17.820
149.425
127,663
5
13
5
4
5
19
5
2
366.449
25,857
121.810
218.782
308.994
19,052
163,475
126,467
21
18
21
22
29
25
29
31
344.785
7.851
179.838
157,0%
35.217
1,893
13,960
19,364
30
46
28
32
31
36
16
42
445,233
7,631
143.724
293,878
50.582
7.572
29.129
13,881
18
11
17
19
13
-6
20
8
552.825
27.276
260,159
265,390
92,300
6,149
24,996
61,155
5
17
5
5
1
12
5
-2
579.286
32,584
234.545
312,157
96.157
12.325
50.740
33,092
25
23
25
26
23
17
27
19
LEVEL OF
CONSOLIDATION
ACTIVITY 2
Overall
None
Low
High ..
By cotinrv size3
500,000 or less .. 1,204,576
None
108,945
Low
526.331
High
569.300
More than
500.000 . . . . 1,226.268
None
7,078
Low
594.108
High
625,082
is an intensely competitive business.21 Entry by firms
is relatively easy, a typical market has many lenders,
and a mature secondary market allows institutions to
readily sell loans they originate and to extend additional credit.
The analysis presented here does not provide a
complete picture of the effect of consolidation on
home purchase lending. For example, it does not
identify changes in prices or product offerings. Further, it does not provide information about the behavior of any individual lender or lender type. However,
the results strongly suggest that over the entire study
period the level of consolidation activity among
banking organizations in a county had little effect on
the growth of total home purchase lending or on the
21. The competitive nature of the market becomes apparent when
comparing HHI measures based on home purchase loans with HHI
measures based on deposits. The former are consistently lower than
the latter, and often by a substantial amount.
growth of lending to any of the four borrower and
neighborhood categories.
CONSOLIDATION AND MORTGAGE LENDING
AT THE BANKING ORGANIZATION LEVEL
The results presented in the last section showed little
relationship between consolidation activity and
changes in home purchase lending in a county. The
two potential explanations offered characterized
changes in the behavior of consolidating organizations differently. In this section, we focus on these
differences by examining changes in the behavior
of consolidating banking organizations. Because the
CRA mandates a special responsibility for banking
organizations to serve the credit needs of residents of
those areas where they operate banking offices, we
distinguish between changes in their behavior in
counties where they had banking offices before the
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
91
3.—Continued
Level of
consolidation
activity
by county
h h k
apt) market
concentration
Type of neighborhood'
Minority
Lower-income
1993-95
1995-97
Initial
number
Percentage
h
19.014
335.192
245.619
23
7
15
1.99:3-95
1995-9.7
Initial
number
Percentage
ehonge-"
Initial
254.395
f 1,635
115,026
127,734
17
30
12
21
298.181
18,017
116.831
391.650
18
5
15
21
163.333
15
207.501
16.112
112,192
79.197
12
II
13
10
114,231
10.944
47.164
56,123
IS
30
12
14
131.010
16,402
61,840
52,768
10
9
II
8
22
140,164
691
67,862
71,611
19
35
12
167,171
17
-14
15
19
154.804
5,482
61,569
87,753
99,591
6.153
53,457
39,98!
17
16
13
19
17
33
11
23
LSI.657
48,224
12
-I
10
14
17
22
15
20
225.264
9.S61
106,089
109,314
29,131
1,774
8,937
18.420
17
31
11
20
22
26
22
259.284
12,571
95.015
151,698
38.897
5.446
21,816
11,635
14
12
II
16
10
_2
18
2
puniher
Percentage
change'
LEVEL OK
CONSOLIDATION
ACTIVITY-
Overall
None
Low
High
662.016
22.629
247.737
14
7
n
Bv tYJHH/V Silt *
5i)0.000 or less .
None
Low
High
More than
500,000 ...
None
Low
High
By cvunry
gn-nvlh rate*
Low growth
None
Low
High
High growth
None
Low
High
185.540
18,175
104.422
62.943
M
412,285
839
10
33
230.770
180.676
6
16
335,403
9.172
9
25
177.090
149,141
5
13
J3
21
9
19
262.422
7.842
158.102
94.478
454.515
6.517
135.545
312.453
366.124
17.527
99,726
248.S71
295.892
5.102
148,011
142,779
-To
18
24
18
2
13
22
19
15
17
20
1,615
54,991
110.565
11,617
54.93.1
M5.109
116.524
6.400
61,900
By matk&
Less than 1800 ..
None
Low
High
1800 and more ..
None
Low
High
S40.U07
15.-474
312.379
212,154
57.B18
3540
72.81.3
3l.4n5
10
•£)
"l
14
J5
•27
3
23
591,086
11.137
203,546
376.403
70.930
11,492
44,191
15,247
15
II
-I
16
4
22
1. Loans for which Ihe borrowers' income was below 80 percent of the current year median family income of their MSA wore classified as loans to lowerincome borrowers. Loans to black, Asian. Hispanic, Native American, and
"other race" borrowers were classifed as loans to minorities.
Information on the census tract location of the property being purchased was
used to determine which loans were originated in lower-income or minority
neighborhoods. Loans for properties in census tracts whose 1990 median family income was less than 80 percent of the 1990 median income of their MSA
were classified as loans to lower-income neighborhoods. Similarly, loans for
properties in census tracts with more than 20 percent minority residents in 1990
were classified as loans to minority neighborhoods.
2. The three •categories of consolidation are defined as the following:
None—counties in which no organizations were involved in a consolidation;
low -counties in which the share of loans extended by organizations involved
in consolidations was less than or equal to the median share of loans extended
in all counties by organizations involved in consolidations lor that period: and
high—counties in which the share of loans extended by organizations involved
in consolidations was greater than ihe median share of loans extended in all
counties by organizations involved in consolidations for that period.
3. Population.
4. Counties with low growth rates are those where ihe 1993—95 growth in
population was less than the median for all counties in the study. Counties with
high growth rates are those where the growth in population was equal to or
greater than the median.
5. Herllndahl-Hirschman index (HH1) level based on deposits at the beginning of each period.
consolidation and changes in their behavior in counties where they did not. Many banking organizations
do considerable lending in areas where they do not
have banking offices, often through affiliated mortgage and finance companies. In addition, institutions
that are not affiliated with banking organizations and
are not subject to the CRA—such as credit unions
and mortgage and finance companies—extend many
home purchase loans. Indeed, loans made by banking
organizations in counties in which they had banking
offices accounted for only 38 percent of overall home
purchase lending in 1993 (derived from table 4).
The pattern of lending by banking organizations
in counties where they operated banking offices is
different from that of banking organizations in areas
where they did not operate banking offices and from
that of lending by other institutions (table 4). For
example, over the 1993-97 period, banking organizations increased their overall lending 69 percent in
areas where they did not have banking offices at the
beginning of the period but only 8 percent in those
counties where they did operate banking offices.
There are similar differences in growth rates for the
four borrower and neighborhood lending categories.
92
4.
Federal Reserve Bulletin • February 1999
Home purchase loans, hy type and location of organization and by characteristic of borrower
and neighborhood. 1993-97
Type of borrower1
Type and locution
of organization
All
Minority
Type of neighborhood'
Lower-income
Minority
Lower-income
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
Percentage
change
Banking organizations"
In counties with
branch offices2
In other counties
Oiher institutions'
1.459,878
31
208.178
63
402.724
n
315,803
40
151.768
32
925.236
534,642
970,966
8
69
8
131.739
76.439
171.824
29
122
42
259.676
143.048
242,401
4
68
37
193.251
122.552
282,022
15
74)
21
104.356
47.322
102.717
A
93
36
AU lenders
2,430.844
21
380,002
53
645,125
31
597,825
31
254^95
33
NOTE. Includes only owner-occupied one- to four-family home purchase
loans extended in MSAs.
1. See nole 1 to table 3.
2. Category includes loans by all commercial banks, savings associations, and their mortgage and finance company affiliates. Banking organiza-
lions are considered 10 have a branch office in a county only where the commercial bank or savings association componeni of the organization has a branch
office in lhat county.
3. Category includes independent mortgage and finance companies and credit
unions.
Measuring the Effects of Consolidation
office in the county was acquired during the study
period. Those combinations involved in consolidation are further subdivided according to the type
of consolidation. These decompositions allow for
an assessment of whether and how consolidation in
banking has been associated with changes in overall
lending and lending to lower-income and minority
borrowers and neighborhoods. Because economic
theory suggests that the geographic proximity of the
acquiring and acquired organizations may influence
subsequent lending patterns, we divide organizationcounty combinations involved in consolidation into
three types according to the location of the offices of
the acquiring component: (1) consolidations in which
the acquiring as well as the acquired components
of the organizations operated offices in the county
(within-county consolidations), (2) consolidations in
which the acquiring component operated an office
in the MSA containing the county but not in the
county (within-MSA-not-in-county consolidations),
and (3) consolidations in which the acquiring component did not operate offices in either the county or its
MSA (out-of-MSA consolidations).
Economic theory further suggests that the size of
the organizations involved in a consolidation may
affect lending activity. Thus, for the current analysis,
we group consolidations according to the size (in
assets) of the acquiring and the acquired organization
(see the appendix): (1) a small organization (assets of
less than $250 million) acquiring another small organization, (2) a medium-sized organization (assets
between $250 million and $10 billion) acquiring a
small organization, (3) a medium-sized organization
acquiring another medium-sized organization, (4) a
large organization (assets greater than $10 billion)
acquiring a small organization, (5) a large organization acquiring a medium-sized organization, and
The unit of observation in measuring the effects of
consolidation in the analysis in this section is the
banking organization-county
combination. Each
banking organization is linked with each county
in every metropolitan area—a total of 726 counties.
Thus, each banking organization potentially has
726 distinct observations. However, a banking
organization-county combination is included in the
sample only if the organization had a CRA obligation
in the county. Such an obligation is considered to
exist if any banking-institution component (commercial bank or savings association) of a banking organization operated a banking office in the county at the
beginning of the study period. A single organization
may appear in the sample several times if it had
offices in more than one county, as was true in 1993,
for instance, for nearly 30 percent of the banking
organizations (appendix table A.I). The sample was
further restricted to include only those combinations
in which the organization extended ten loans or more
in the county in the first year of the analytical
period.22
To assess the effects of consolidation on home
purchase lending by banking organizations, we
compare the behavior of organizations that were
involved in consolidation in a county with that of
organizations that were not. As before, an organization is considered to have undergone a consolidation
in a county only if a banking-institution component
of the organization that was operating a banking
22. This restriction removes only about 1 percent of the home
purchase loans from the sample.
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
(6) a large organization acquiring another large
organization.
The approach taken here employs performance
standards often used in previous research on home
mortgage lending issues.23 They are also used in
evaluating the CRA record of banking organizations.
These measures are (1) the change in the number of
loans an organization makes in a county overall and
to lower-income and minority borrowers and neighborhoods, (2) changes in an organization's share of
the total number of loans in a county overall and to
lower-income and minority borrowers and neighborhoods in each of the organization's local communities (market share), and (3) changes in the share of an
organization's own loan activity in a county that
is composed of such lending (portfolio share). (See
box "Performance Standards Used to Measure the
Effects of Consolidation at the Organization Level.")
All three measures are based on numbers of loans,
although CRA examiners also consider the dollar
amount of lending in using these measures. Changes
in the lending activity of consolidating organizations
are computed by comparing lending by the merged
organization at the end of the period with the combined lending activity of the component parts of the
merged organization (called a "pro forma" organization) at the beginning of the period.24
Because we want to characterize the behavior of
the "typical" banking organization, we focus on
median values in the market share and portfolio share
analyses. The median is preferred because the
mean may be greatly influenced by extreme values,
either positive or negative. Median values are
sensitive, however, to the number of banking
organization-county combinations that had no lending in a particular borrower or neighborhood category over the analytical period. For some categories,
the number of such combinations is relatively large,
which can give a misleading indication of the effects
of consolidation on organizations active in certain
types of lending (table 5). 25 Thus, in calculating
23. See. for example, Glenn B. Canner, Wayne Passmore, and
Brian 1. Surene, "Distribution of Credit Risk among Providers of
Mortgages to Lower-Income and Minority Homebuyers." Federal
Reserve Bulletin, vol. 82 (December 1996). pp. 1077-1102.
24. The sum includes all lending in the county by all component
parts of the organization in the first period, including those components that did not have banking offices or CRA obligations.
25. For example, in each of the sample periods about 27 percent
of the banking organization-county combinalions had no lending to
minority neighborhoods. This result likely reflects a relatively large
number of smaller banks located in counties with small numbers of
minority neighborhoods.
93
median values, we exclude all cases in which a
banking organization extended no loans in a particular borrower or neighborhood category in a county.
For example, if a bank extended no loans to lower-
Performance Standards Used to Measure
the Effects of Consolidation
at the Organization Level
Three performance standards are used to measure the
effects of consolidation: the number of home purchase
loans, market share, and portfolio share. Three measures
are used because, while each may provide insight into
home purchase lending in a market, each also has some
shortcomings. In combination, they provide a more complete picture of trends in lending.
The number of home purchase loans an organization
makes is one indicator of the level of service it provides
to a local area. Changes in this measure show whether
lending is increasing or decreasing. However, exclusive
consideration of this measure may lead to misleading
inferences. The number of loans does not provide an
indication of how well an organization is performing
relative to other organizations in a given market. It also
fails to show an organization's own relative commitment
to certain types of lending.
The second measure, market share, addresses the first
of these limitations. Changes in an organization's market
share of home purchase loans provide a measure of how
its activity is changing relative to the market as a whole.
Increases (decreases) in market share indicate that an
organization has a greater (lesser) presence in a given
type of lending. Trends in market share do not necessarily mirror trends in the number of loans. For example, an
organization's market share can decline even while the
number of its loans increases if other organizations
increase their levels of lending more rapidly. The market
share measure, however, is not without its own limitations as a measure of performance. Most prominently, an
organization's market share may be greatly influenced
by the actions of other competitors in the market and
changes in the demand for home purchase loans, both of
which are largely outside its control.
The portfolio share measure provides another gauge of
an organization's relative experience with a given type of
lending. Like the market share measure, trends in portfolio share can be different from trends in the number
of loans. However, unlike the market share measure, the
portfolio share measure tends not to be overly sensitive to
the activities of market competitors. The limitation of
this measure is that an organization may have a growing
portfolio share of lending to a given population yet a
shrinking presence overall in lending to that population,
measured either in terms of absolute numbers of loans or
market share.
94
5.
Federal Reserve Bulletin • February 1999
Percentage of banking organization-county combinations with no lending to minority and lower-income borrowers
and neisihborhouds, 1993-95 and 1995-97
Type of borrower1
Minority
Category
i993-95
No lending
No lending and involved in consolidations
Memo
Number of banking cirganizationcounly combinations
I
Type of neighborhood'
Lower-income
1995-97
1993-95
Lower-income
Minority
1995-97
1993-95
1995-97
1995-97
1993-95
10.6
1.0
9.7
.8
.4
.1
.5
.1
27.1
4.2
27.5
'3.4
14.8
2.1
15.6
2.0
7.143
7,100
7.143
7.100
7.143
7.100
7.143
7,100
I. See nole I to lable 3.
income applicants over 1993-95, it is not considered in calculating the median change in market share
of lending to lower-income borrowers during that
period (that is, it is not considered to have had a
0 percent change in its market share).26
It is important to emphasize that the patterns found
in this analysis may differ from those in the previous
section. In this analysis, we track changes in home
purchase lending for banking organizations only in
the counties in which they operated offices at the
beginning of each analytical period. These changes
do not necessarily reflect total changes in an organization's lending, as an organization may have
expanded both its CRA obligations and its lending
into new markets over time. As with the preceding
analysis, the discussion emphasizes only those relationships that are robust after considering other factors that may have influenced home purchase lending
patterns.
Consolidation and Lending
by Banking Organizations
in Counties Where They Operate Offices
A simple count of the number of banking
organization-county combinations involved in consolidation provides a perspective on the extent
of consolidation in the banking industry over our
periods of analysis. Over each time period we
analyze, a relatively small percentage of banking
organization-county combinations were involved in
consolidation—for example, only 18 percent of the
organization-county combinations in the sample over
26. While this procedure reduces the sample, it does not result in a
significant decline in the number of banking organization-county
combinations involved in consolidation that were included in ihe
sample. Very few organizations that had no lending in either period
were involved in a consolidation. For example, over 1995-97. less
than 1 percent of all banking organization-county combinations in the
sample that were involved in consolidation made no loans to minority
borrowers or to lower-income borrowers.
the 1995-97 period were involved in a consolidation
(table 6). However, these tended to include organizations with relatively large numbers of home purchase
loans, as they accounted for almost 30 percent of all
lending in counties by banking organizations with
CRA obligations in those counties (derived from
table 7).
Most banking organization-county combinations
involved in consolidation were involved in
either within-county consolidations or out-of-MSA
consolidations—90 percent over 1993-95 (derived
from table 6). In addition, a majority of the banking
organization-county combinations involved in mergers involved large acquiring institutions—54 percent
over 1993-95 (derived from table 6). These organizations extended most of the home purchase loans—
6.
Distribution of banking organization-county
combinations, by level of consolidation activity
and size and location of banking organization,
1993 95 and 1995-97
Consolidation calenory for
bankiim organizalioncounty combinations
B\ size of banking organization'
Small
1993-95
1995-97
5.850
5 800
2 047
2 237
1 566
1 KI3
2 I6S
1 819
1 293
1 300
Rv location
Within county
Within MSA, not in county
Out of MSA
603
125
565
60S
96
=i%
/?v size of btlnkiftg twganizutiou'
Small acquiring small
Medium acquiring small
Medium acquiring medium
Large acquiring small
Larce acquiring medium
Large acquiring large
78
211
300
71
314
319
69
184
197
51
318
481
7,143
7,100
All banking orgaiiizattoncountv combinations
I. Sii-t categories arc ihe following: A small organization has assets of
less than S250 million; a medium-sized organization has assets between
$250 million and $10 billion; and a large organization has assets of more than
$10 billion.
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
about 68 percent over 1993-95—originated by banking organization-county combinations involved in
consolidation (derived from table 7).
Changes in the Level and Market Share
of Home Purchase Lending
In stark contrast to the analysis of the effects of
consolidation on home purchase lending at the market level, which found no consistent relationships
between consolidation and changes in home purchase
lending, consolidation does appear to be related to
changes in home purchase lending when the effects
are examined at the organizational level. Again
the focus is on lending by banking organizations
in those counties in which they operated banking
offices.
Banking organization-county combinations that
were involved in consolidation consistently showed
less growth (or more decline) in the number of
home purchase loans they originated than banking
organization-county combinations that were not
involved in consolidation. Moreover, the growth in
home purchase lending by both groups was generally
less than the growth in total lending in metropolitan
areas. Although the growth rates of total lending for
all mortgage lending organizations were 3 percent
and 17 percent in 1993-95 and 1995-97 respectively
(derived from table 1), the number of loans extended
by the banking organization-county combinations in
our sample that were involved in consolidation
declined about 14 percent in each period while the
number of loans extended by those combinations in
our sample not involved in consolidation increased
3 percent in both periods (table 7).
These relative relationships generally hold for
overall lending and for lending to the four borrower
and neighborhood categories and in both time
periods, although not all differences are statistically
significant. The market share of home purchase loans
in a county extended by the typical consolidating
organization with an office in that county (that is, the
median banking organization-county combination
involved in a consolidation) declined substantially
in both years, and by more than that of the typical
non-consolidating organization with an office in that
county (table 8). This result indicates that the patterns
shown in table 7 are not driven by the behavior of
just a few large organizations but rather reflect the
experiences of the typical organization.
When banking organization-county combinations
involved in a consolidation are distributed according to the type of consolidation that took place,
95
few consistent patterns appear, with two notable
exceptions. Grouping banking organization-county
combinations according to the location of offices of
the acquiring firm, we find that within-county consolidations are associated with larger growth (or
smaller declines) in the number of loans extended
overall and to the four borrower and neighborhood
categories compared with other types of consolidation (table 7). For example, although the overall
amount of lending by banking organization-county
combinations involved in out-of-MSA consolidations
declined 27 percent over 1993-95, the decline was
only 9 percent among those combinations involved in
within-county consolidations.
Banking organization-county combinations are
also grouped according to the size of the acquiring
and acquired organizations. The most consistent
results occur among those consolidations in which
the acquirer was large, although the differences were
not always statistically significant. Acquisitions of
small organizations by large organizations generally
are associated with the largest increases in the number of loans extended overall and to the four borrower and neighborhood groups. Acquisitions of
large organizations by other large organizations generally are associated with relatively large declines in
lending.
The finding that consolidation is consistently associated with declines in lending—both overall and
across the four borrower and neighborhood groups—
appears to support the view that consolidation
results in a reduction in home purchase lending,
possibly because of a shift away from local decisionmaking, anticompetitive effects, or the acquisition
of savings associations by banking organizations.
However, some results are inconsistent with these
explanations.
A reduction of the influence of local decisionmaking would suggest that consolidations in which a
large organization acquires a small organization
might be associated with larger declines (or less
growth) in lending than consolidations in which both
the acquirer and acquired organization are large.
However the reverse is true—consolidations in
which large organizations acquired other large
organizations are generally associated with larger
declines (or less growth) than consolidations in which
large organizations acquired small organizations. Anticompetitive effects would most likely be observed
in within-county consolidations; yet these are not
associated with a disproportionate decline in lending.
It should be noted, however, that the finding that outof-MSA consolidations show the largest declines
in lending is consistent with a shift away from local
96
7.
Federal Reserve Bulletin • February 1999
Home purchase loans by banking organization-county combinations, by level of consolidation activity
and size and location of banking oraanization. 1993-95 and 1995- 97
Type of borrower'
Consolidation
category
for banking
organizalioncounly
combinations
All borrowers
Lower-income
Min irity
1995-97
1993-95
Initial
number
Percentage
change
Initial
number
1995-97
1993-95
Percentage
change
Initial
number
Percentage
change
1993-95
1995-97
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
Percentage
change
No consolidation .
Bvsize*
Small
Medium
Large
653.665
3
692.296
3
92.299
26
115.623
-2
181.881
_2
I90.3Z3
i
114,177
264.289
275,199
-7
2
7
90.406
244,983
356.907
7
9
-2
12.151
32.O3S
48.110
28
29
11.383
33.624
70.616
11
4
-8
30.923
71.006
79.952
-6
-1
-2
24.961
62,541
102,821
14
11
-9
Any consolidation .
278,519
-15
289.948
-13
39.072
12
58,430
78.589
-13
73,963
-6
Within county .
Within MSA.
not in
county . . .
Out of MSA .
182,301
-9
188.107
-8
27.898
15
43,315
50.613
-8
46,706
0
10,949
85.269
-17
-27
8.295
93.546
-23
-23
926
10.248
66
0
1.358
13.757
3.591
24,385
-8
-24
2.221
25.036
-20
-18
small
Medium
4.717
-19
5.206
-17
882
-43
729
1.215
-20
1.472
-10
small
Medium
24.513
-1
19.983
-7
3.119
31
3.509
-I
6.351
7
5.268
6
medium ..
Large
59.931
1
35.870
-17
6.543
20
5.268
-21
15.092
-1
9.389
-9
small . . . .
22.769
22
14.149
5
4,770
45
2,442
-3
6.549
8
4.424
7
medium ..
Large
93.172
-27
84.569
-8
14,370
-5
16,873
-6
26.366
-26
22.321
-1
large
73,417
-29
130.171
-18
9.388
17
29,609
-14
23.016
-17
31.089
-13
-II
-34
-20
Bv size2
Small
_•>!
UlFgC
decisionmaking. Finally, those consolidations involving the acquisition of savings associations by banking
organizations, which, as noted earlier, could potentially reduce home purchase lending, show virtually
the same lending patterns as other consolidations.
Also, these results cannot readily be explained by
a reduction in overaJl lending by organizations that
were involved in consolidation. Overall home purchase lending by these organizations grew 16 percent
in 1993-95 and 22 percent during 1995-97 (not
shown in tables). Virtually all of this growth was in
counties in which the organizations did not have
banking offices. The growth in these institutions'
home purchase lending in these out-of-market areas
was 57 percent over 1993-95 and 69 percent over
1995-97 (not shown in tables). Moreover, the growth
in out-of-market lending by these consolidating banking organizations substantially exceeded the growth
in home purchase lending by other groups of market
participants.
The reduction of home purchase lending by consolidating banking organizations in those counties in
which they operated offices appears to be part of an
overall trend toward geographic diversification. This
diversification may have been fueled by the acquisition of large, previously independent mortgage banking organizations and an expansion of activity by
previously affiliated mortgage and finance companies. Also, increased standardization in the home
purchase loan market, facilitated in part by developments in the secondary market and the growing use
of automated underwriting, may have reduced the
need for banking organizations to maintain a local
presence to originate home purchase loans.
Changes in Portfolio Shares
Results using the portfolio share measure provide a
different picture of the effect of consolidation on
home purchase lending than those using either market share measures or counts of loans (table 9). Using
market share measures or counts of loans showed that
organizations involved in consolidation typically
reduced their overall lending and lending to the four
borrower and neighborhood groups in those counties
in which they had banking offices. The portfolio
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
97
7.—Continued
Type of neighborhood'
Consolidalion
category
for banking
organizationcounty
combinations
Minority
Lower-income
1993-95
1995-97
1993-95
Initial
number
Percentage
change
Initial
number
Percentage
change
Initial
number
1995-97
Percentage
change.
Initial
number
Percenter
change
No consolidation .
By size1
Small
Medium
Lsr°e
137,940
9
148.093
0
73.411
9
84,082
-10
20,995
46.076
70,869
-6
9
14
16.260
41^92
89.941
8
4
-3
12,985
26,081
34,345
0
14
9
11,237
26.162
46,683
2
-3
-17
Any consolidation .
54.650
—4
74,072
-9
30.379
0
33,626
-13
36,945
2
54,771
-6
19.902
5
22,961
1,220
16,485
26
-18
1,766
17,535
-27
-16
1,319
9,158
20
-12
999
9,666
-27
-25
1,305
-49
1.237
-35
617
-19
652
-29
4.307
8
5,373
-10
2,524
10
2.319
-7
6,045
-23
5.736
2
3.826
-15
""B^
By location
Within counly .
Within MSA,
not in
county ...
Out of MSA ..
B\ site2
Small
acquiring
small
Medium
acquiring
small
Medium
acquiring
medium ..
Large
acquiring
small
Large
acquiring
medium ..
Lafgs
9,840
6.994
29
2,845
3
3.149
16
1.903
7
20,685
-13
20.872
-8
9.562
-9
8,977
-10
11,519
-6
37.700
-7
8.791
1
15.949
-18
iirfiiairino
large
1. See note 1 to table 3.
share measure shows that this reduction did not disproportionately affect lending to lower-income and
minority borrowers and neighborhoods. Indeed, the
portfolio share measure shows that the typical consolidating organization generally increased the proportion of loans extended to each of the four borrower and neighborhood groups. These changes are
generally larger (or less negative) than the changes
observed among banking organization-county combinations not involved in consolidation. For example,
the change in the portfolio share for lending to minority borrowers for the typical organization involved
in a consolidation was 31 percent compared with
only 21 percent for the typical organization not
involved in a consolidation during 1993-95. When
banking organization-county combinations involved
in consolidation are distributed according to the type
of consolidation (by either location or size of the
acquiring and acquired organization), few consistent
patterns emerge over the two periods.
These results are consistent with the view that the
CRA has been effective in encouraging banking organizations, particularly those involved in consolida
2. See note 1 to table 6.
tion, to serve lower-income and minority borrowers
and neighborhoods. The data, however, are not sufficient to provide a complete evaluation of the effects
of the CRA in this regard. For example, no information is available on the prices charged for loans or on
whether they were underwritten using special guidelines for affordable lending programs. Loans to
lower-income and minority borrowers and neighborhoods may be more difficult to underwrite and thus
benefit more from a local office presence than from
any particular pressures due to the CRA. Moreover,
banking organizations have also increased their lending to lower-income and minority borrowers in counties where they have no banking offices.
APPENDIX: CONSTRUCTION OF THE DATABASE
The data used in this article combine information on
branch office location, home purchase loan originations, and records of bank structure, failures, mergers, and acquisitions from several sources. (See
table A. 1 for a description of the study sample.)
98
8.
Federal Reserve Bulletin • February 1999
Market share ot" home purchase lending by banking organization-county combinations, by level of consolidation activity
and size and location of banking organization, 1993-95 and 1995-97
Percent
Type of borrower'
A l l borrower*
Consolidaiion
category
oreanizal i o n county
combinations
No consolidaiion .
Small
Medium
Any consolidation .
By location
Within county .
1993-95
1995-97
1993-95
1995-97
1993-95
1995-97
Initial
share
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
2.0
-7
2.2
-13
1.1
-9
1.3
-17
1.9
-13
2.0
-16
1 2
2.0
3.0
-16
-4
-1
I.I
1.9
3.6
-11
-5
-22
,3
1.2
2.7
-21
-3
.3
1.2
33
-16
-7
-26
1.2
1.9
3.3
-19
-8
-10
1.1
1.7
3.5
-12
-9
-28
3.5
-24
3.6
-27
2.6
-19
3.0
-30
3.5
-24
3.4
-28
4.1
-26
4.4
-17
4.3
-27
3.6
-13
3.8
-28
4.1
-14
2.5
3.1
-34
-31
2.8
3.1
-36
-28
.7
2.2
-16
-27
2.Q
2.6
-48
-30
2.9
2.9
-33
-32
2.6
2.8
-36
-28
.7
-21
.9
-33
-24
0.5
-36
.8
-21
.9
-37
2.1
- 15
1.7
-21
-12
.8
-18
2.1
-7
1.4
-15
medium ..
Large
acquiring
small . . . .
Large
3.4
-13
3.0
-30
-7
2.1
-31
3.1
-6
2.6
-28
3.8
-4
2.5
-18
4.3
-3
1.7
-20
4.1
-14
1.9
medium ..
Large
4.4
-30
5.1
-20
3.3
-29
4.4
-20
4.1
-33
5.0
-19
large
4.9
-37
4.1
-32
4.0
-29
4.0
-37
4.5
-31
3.9
-34
not in
county . . .
Out of MSA ..
B\-sizrSmall
acquiring
small . . . .
Medium
acquiring
small . . . .
Medium
9.
Lower-income
Minority
1.3
Portfolio share of home purchase lending by banking organization-county combinations to minority and lower-income
borrowers and neighborhoods, by level of consolidation activity and size and location of banking organization,
1993-95 and 1995-97
Percent
Type of borrower'
Lower-income
Minority
Consolidation category
for hanking orgnni/.ationcounly combinations
1993-95
1995-97
1995-97
1993-95
Initial
share
Percentage
change
Initial
•share
Percentage
change
Initial
share
Percentage
change
Initial
share
6.3
21
7.5
-6
26.2
-5
26.2
5
3.4
6.3
9.7
20
25
19
4.3
7.5
10.6
-6
-6
-6
27.4
24.8
26.7
-3
-5
-6
28.0
24.2
26.7
5
6
2
7.2
31
11.1
-5
26.1
3
25.0
8
Wiihin MSA, not in county
Out or MSA
8.3
4.4
6.9
28
45
31
13.9
8.8
9.2
-3
-33
-6
26.7
26.1
25.4
4
4
1
23.5
Z5.0
26.0
8
9
8
By size *
Small acquiring small
Medium acquiring .small
Medium acquiring medium
Large acquiring small
Large acquiring medium
Large acquiring large
4.6
6.7
7.3
9.5
8.1
7.2
24
26
28
28
31
38
8.1
9.1
7.8
13.3
11.7
13.8
7
0
-2
-7
-3
-10
25.5
26.0
23.1
24.2
27.9
28.1
0
6
-1
-17
1
10
27.8
24.6
24.1
26.7
24.6
25.0
4
11
10
-7
10
7
No consolidation
fiv si:e Small
Medium
Any consolidation
By Ioval ion
Percentage
change
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
99
8.—Continued
Type of neighborhood'
Consolidation
category
for banking
organizatjonetmnly
combinations
Minority
Lower-income
1995-9.7
1993-95
Initial
share
No consolidation .
BY size1
Small
Medium
Large
Any consolidation .
By location
Within county .
Within MSA,
not in
county ...
Out of MSA ..
By size Small
acquiring
small
Medium
acquiring
smal 1
Medium
acquiring
medium ..
Large
acquiring
small
Large
acquiring
medium ..
Large
acquiring
large
1.993-95
1995-97
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
Initial
share
Percentage
change
1.0
-10
1.1
-14
1.5
-11
1.5
-17
0.3
I.I
2.5
-21
-5
-A
.3
.9
2,9
-14
-5
-22
.7
1.4
2.8
-23
-5
_-j
6
1.3
3.3
-12
-8
-26
2.1
-20
3.0
-27
2.9
-24
3.0
-32
3.1
-11
3.4
-27
3.7
-11
3.8
-30
.7
1.9
-15
2.0
-38
2.6
-26
1.5
2.3
-20
-32
2.L
2.7
-37
-29
2
-37
.6
-56
.4
-40
.8
-50
1.2
-18
.9
-19
1.9
-16
1.3
-16
2.0
-13
1.6
-36
2.4
-16
2.5
-36
2.1
1
1.7
-17
3.6
5
2.1
-25
2.9
-25
4.1
-19
3.8
-28
4.4
-22
3.5
-24
3.8
-31
3.9
-29
3.6
-37
NOTE. Data are the initial median market share for each category of banking
organization-county combination and the median change in market share for each
period.
-33
1. See note I to table 3.
2. See note I to table 6.
9.—Continued
Type of neighborhood'
Consolidation
category
For banking
organizationcom Inflations
Minority
Lower-income
1993-95
Initial
share
I993-^7
Percentage
change
Initial
share
1993-95
Percentage
change
Initial
share
1995-97
Percentage
change
Initial
share
Percentage
change
.No consolidation
7.3
2
6.7
-5
7.1
4
7.7
-8
Small
Medium ,
Large
ss
2.6
7,-9
12.1
0
4
2
2.0
6.7
10.7
-6
-4
-5
6.4
6.8
8.7
1
6
6
6.7
7.0
9.0
-8
-9
-7
A'hy -consolidation
7.9
7
12.2
-2
7.5
11
8.5
-7
9.2
2.3
8.1
9
22
3
17.7
8.9
9,8
-3
-9
0
7.4
6.3
7.9
12
21
8
9.5
6.7
7.5
-6
-9
-7
5.7
10.4
8.8
16.1
8.8
6.2
-1
9
3
0
10
14
9.1
13.5
7.3
1-6.0
14.5
13.6
-21
G
<»
1
-3
-J
6.8
6.9
6.8
8.7
8.0
8.3
-6
9
2
-1
18
25
8.0
7.2
8.0
9.1
9.1
8.6
-10
-6
-2
19
-9
-9
% IbmiiM
Within county
Within MSA, not in counly
Out of MSA
By sine'2
Smtill acquiring ismall
Medium acquiring Small
Medium srcqiHrfng medium
Large acquiring SHfirtl
Large acquiring medium
Laree acquiring Uargt:
NOTE. Data are the initial median portfolio share for each category of banking
Digitizedorganization-county
for FRASER combination and the median change in share for each period.
1. See note I to table 3
2. See note 1 to table 6.
100
A.I.
Federal Reserve Bulletin D February 1999
Distribution of MSA counties per banking organization and depository offices and home purchase loans
per organiaition-county combination, 1993. 1995. and 1997
1995
1993
1997
Item
Number
Percent
Number
Percent
3.923
71.4
15.3
5.3
3.5
1.8
1.4
1.0
3 423
832
264
187
93
69
47
17
69.4
16.9
5.4
5.498
100.0
4.216
2.124
1.316
1.472
1.273
1.33S
35.9
18.1
11.739
Number
Percent
Number of MSA counties with br(irt<~h offices
per urbanization
843
20)
3
4-5
6-9
10-19
20-49
50 or more
194
100
79
55
13
Total ..
Depoxitory t/ffk'L's per
LYfmT/v combination
1 . . ."
2
3.124
67.2
IS.fi
5.S
4.2
3.S
836
26S
197
1.9
96
1.4
1.0
.3
54
49
4.932
100.0
4,646
IOO.O
10.8
11.4
3.781
1.980
1.296
1.426
1.258
1.339
34.1
17.9
11.7
12.9
11.4
12.1
3.764
1.962
1,235
1.441
1.277
1.394
34.0
17.7
II.I
1X0
11.5
iZ.b
100.0
11.080
100.0
11.073
11)0.0
11.4
24.7
12.5
18.2
13.0
17.6
2.6
1.026
2.494
! .430
2,091
1.581
2.144
314
5.3
22.5
12.0
IS.9
14.3
19.4
2.8
1.476
2277
1.292
2.065
i.507
2.102
354
2£U>
11.7
IS.7
13.6
19.0
3.2
100.0
11,080
100.0
11.073
21
1.2
J.D
.5
organization-
4-5
6-9
10 or more.
Total
Home purchase Itmnx per or^unizMt
t:ounl\ cainliinueion
0
KM9
20-49
100-499
500 or Mure
Total
1.336
2.894
1.471
2 142
1.531
2.064
301
11.739
The location (county) of banking institution
depository offices (banking offices) was extracted
from the annual Summary of Deposits filings for
commercial banks and Branch Office Survey System
filings for savings associations for the years 1993
through 1997. The office list includes all locations
qualifying as separate institution deposit-taking
offices under federal guidelines as of June 30 of each
year. It does not necessarily include all "drive-ins,"
ATMs, or loan production offices; however, virtually
all offices whose presence implies a CRA obligation
are reported. Reporting banking institutions include
all federally insured commercial banks, savings and
loan associations, cooperative banks, and mutual savings banks, as defined by the Federal Reserve Board's
National Information Center (NIC) database. The
locations used for this study may differ slightly from
those used elsewhere because of some limited data
cleaning required for the analysis. For example, some
offices were added for a few institutions that did
not submit a Summary of Deposits or Branch Office
Survey System filing, and some addresses were
corrected for a limited number of offices for which
incorrect county location was reported.
Information on home purchase loan originations
used in the analysis was obtained from individual
mortgage loan data filed under the 1989 amendments
13.3
to the Home Mortgage Disclosure Act (HMDA).
Each year, nearly all commercial banks, savings and
loan associations, credit unions, and other mortgage
lending institutions (primarily mortgage banks) with
assets of more than $10 million (raised to $29 million
in 1997) and an office in an MSA are required to
report on each mortgage loan purchased and on each
loan application related to a one- to four-unit residence acted upon during the calendar year. Lenders
must report the loan amount, state, county, and census tract of the property, whether the property would
be owner occupied, purpose of the loan, type of loan
(conventional, FHA, or VA), application disposition
(loan originated, application withdrawn, or application denied), race and gender of the loan applicant,
and the applicant income relied on by the lending
institution in making the loan decision.27 For this
27. See Glenn B. Canner and Dolores S. Smith, "Home Mortgage
Disclosure Act: Expanded Data on Residential Lending," Federal
Reserve Bulletin, vol. 77 (November 1991), pp. 859-81, fora comprehensive discussion of the HMDA data. It is estimated that 80 percent
to 87 percent of all home purchase loans were reported under HMDA
for the 1993-97 period. The FFIEC makes the HMDA data available
in various formats, including paper summaries, magnetic tape,
PC diskette, CD-ROM, and at the FFIEC web site (www.ffiec.gov).
An order form for the HMDA data may be obtained by calling the
FFIEC at (202) 634-6526 or by downloading the form from the FFIEC
web site.
Trends in Home Purchase Lending: Consolidation and the Community Reinvestment Act
study, the sample was restricted to loans originated
for the purchase of owner-occupied units. The sample
includes both conventional loans and loans backed by
government guarantees.
Information on the census tract location of the
property being purchased was used to determine
which loans were originated in lower-income or
minority neighborhoods. Loans for properties in census tracts whose 1990 median family income was less
than 80 percent of the 1990 median family income of
their MSA were classified as loans to lower-income
neighborhoods. Similarly, loans for properties in census tracts with more than 20 percent minority residents in 1990 were classified as loans to minority
(black, Asian, Hispanic, Native American, and "other
race") neighborhoods. The race of the primary applicant was used to determine minority borrower loans,
and loans to borrowers whose income was below
80 percent of the current-year median family income
of their MSA were classified as loans to lowerincome borrowers.
Under current law, most institutions with offices in
MSAs are required to report all their mortgage lending regardless of location but to provide geographic
detail only for loans originated in metropolitan areas.
Thus, the information needed to determine lending
to lower-income and minority neighborhoods was
available only for counties in MSAs. Consequently
we restricted the dataset to these counties. Further,
because the number and boundaries of MSAs
changed slightly from 1993 to 1997, the dataset was
limited to the 726 counties that were part of MSAs in
both 1993 and 1997.28 These counties represent about
20 percent of all counties in the United States but
contain 78 percent of the total population and 70 percent of the banking offices.
A further step had to be taken to align the banking
office and lending data. Banking institutions report
their offices as of June 30 of each year but file
HMDA reports on a calender-year basis. The institution's current structure is used for each filing. Thus,
for example, if two banking institutions merged on
December 15, they would file a consolidated HMDA
filing on December 31 showing their combined lending for the whole year. However, their branch office
filing, done as of the previous June 30, would show
them as separate institutions. To reconcile these differences, the institution's structure as of the end of
the year was used to classify bank branches and to
28. To correspond to the taxonomy used by the Bureau of the
Census in constructing county-level economic data, information for
some counties was combined. Primarily this involved consolidating
some independent cities in Virginia with their surrounding counties.
101
determine those counties where in our construct they
had a CRA obligation. These numbers may differ
from the actual location of offices at the end of the
year to the extent that banking institutions may have
opened or closed offices in the six-month period
between June 30 and December 31.
The final information needed for the study was to
determine the appropriate structure to use in classifying banking institutions and to determine which institutions were involved in consolidation during the
1993-95 and 1995-97 study periods. Transactions
and structure information recorded in the Federal
Reserve Board's NIC database was used for this
purpose. For each of the three-year study periods
used in the analysis, institutions were initially classified by their membership in banking organizations as
of December 31 of the first year of the study period
(1993 or 1995). These organizations included bank
and thrift holding companies and foreign bank
payment groups (commercial banks chartered in the
United States that are subsidiaries of a common foreign bank). Both lending and office data were consolidated at the organization level. Thus, for example, if any banking institution member of a bank
holding company had an office in a county, the organization was deemed to have a CRA obligation there.
Similarly, all home purchase lending in the county,
including lending by mortgage bank or finance company subsidiaries of the holding company and by all
its member banks and their subsidiaries, was included
in determining the organization's total home purchase lending in the county. The size of an organization was computed as the sum of the assets of its
member banking institutions.29 Banking institutions
that were not members of a larger organization were
treated as independent organizations.
A similar method was used to reclassify banking
institutions by their membership in organizations at
the end of each of the three-year study periods. A
banking institution that merged into another institution would be reclassified as part of the acquiring
institution, for example, and members of a holding
company acquired by another holding company
would similarly be reclassified as part of the acquiring holding company.
All organizations (or institutions) with different
membership at the beginning and end of each study
period were deemed to have undergone a "consolida-
29. This amount may differ somewhat from the total assets reported
by bank and thrift holding companies for their combined operations.
However, consolidated information was not available for foreign bank
payment groups; consequently we decided to use a common basis in
estimating an organization's size.
102
Federal Reserve Bulletin D February 1999
tion" during the period.30 This includes both banking
institutions and holding companies that acquired or
merged with previously independent banking institutions or holding companies. It does not include, however, mergers among subsidiaries of the same holding
company, because they were already members of
the same organization at the beginning of the period.
Nor does it include acquisitions of nonbank affiliates,
such as mortgage or finance companies.
For some of the analysis it was necessary to differentiate between the "acquirer" and "acquired" components of a consolidation. These determinations
were not always apparent from the record. Consequently, we decided to designate the largest component of an organization (as measured by its asset size
at the beginning of the period) as the "acquirer." All
other components were treated as "acquired." Thus if
four banking institutions merged into a common
holding company over the study period, the institution with the most assets in the beginning of the
30. A few institutions were liquidated in each of the study periods.
Similarly, a number of new (de novo) institutions were formed. Cases
of both types were excluded from the analysis. Moreover, an organization acquiring a de novo bank is not treated as having undergone a
merger because the de novo institution did not exist at the beginning
of the period.
period would be deemed to have acquired the other
three.
Consolidations were measured at the county level.
A consolidation was deemed to have occurred in the
county only if a banking institution (or organization)
with an office in the county at the beginning of the
period was acquired by another institution (or organization) during the period. If the acquiring organization also had offices in the county at the beginning of
the period it was treated as a within-county consolidation; if the acquiring organization had offices within
the MSA, but not the county, it was treated as a
within-MSA-but-not-county consolidation. Otherwise
the merger was treated as an out-of-MSA consolidation. Note that under this definition, an organization
was considered to have undergone a consolidation in
a county in which only the acquiring component of
the organization had offices at the beginning of the
period.
Finally, the change in lending for those counties
where organizations underwent consolidation was
computed by comparing the sum of the lending in a
county by all components of the organization in the
first year of the study period (1993 or 1995) with the
lending reported by the overall organization in the
county in the final year (1995 or 1997). Again, only
those counties with acquired components were considered in making this calculation.
•
103
Industrial Production and Capacity Utilization
for December 1998
December was boosted by a 1.6 percent increase in
utilities. Manufacturing output increased for the third
consecutive month, gaining 0.2 percent. At 132.8 percent of its 1992 average, industrial production in
December was 1.9 percent higher than it was in
December 1997. Capacity utilization stood at
80.9 percent in December. The industry operating
rate declined 2!/2 percentage points during 1998 to a
Released for publication January 15
Industrial production increased 0.2 percent in December. Based on more complete information for a number of manufacturing industries and utilities, industrial production is now shown to have posted a larger
gain in October than previously estimated and to
have declined less in November. Production in
Industrial production and capacity utilization
Ratio scale, 1992= 100
Percent of capacity
Industrial production
Capacity utilization
130
-
Manufacturin g
y
-
1
1
i
1990
i
^r
<"^
Total industry
Total industry
// v^
110
I
1994
I
V
I
1996
-
85
-
80
Manufacturing
100
i
1992
A/"*
120
1
1
1988
1998
1
1
1
1990
1 1
1992
1
1
1994
i
1
1996
i
1998
Industrial production, market groups
Ratio scale, 1992= 100
_
Av
Consumer goods
Durable
—
_
_
Ratio scale, 1992 = 100
135
_
Intermediate products
-
125
125
115
Construction supplies
~r~f~*>
i^\yJ^
'
-
105
1
V
1
1
1
1
1
1
1
Business supplies
1
1
1
1
1
1
1
175
-
1
95
I
1
Ratio scale, 1992 = 100
Ratio scale, 1992 = 100
Business
_
95
1
Equipment
115
105
Vy^w7
Nondurable
135
— 175
Materials
160
160
145
145
130
130
115
-
Durable goods
^~r
'
"
115
100
100
Nondurable goods and energy
_
Defense and space
85
85
V
^-v
1
1
1
1
1
I I
1
1
1~ ^ l
1990
1996
1998
1992
1990
1992
1994
All series are seasonally adjusted. Latest series. December. Capacity is an index of potential industrial production.
1
I
1994
1
1996
1
1
1
1998
104
Federal Reserve Bulletin • February 1999
Industrial production and capacity utilization, December 1998
Industrial production, index, 1992=100
Percentage change
1998
Category
1998'
Sept.'
Oct.'
Nov.'
Dec.f
Sept.'
Total
131.9
132.6
132.5
132.8
-.4
.5
Previous estimate
131.9
132.2
131.8
-.4
.2
-.3
124.1
114.8
167.4
126.9
1444
125.2
115.6
169.5
128.2
1445
124.9
115.8
168.2
129.6
144 6
125.0
115.8
168.1
130.4
145 3
-.6
-1.2
.5
-.9
0
.8
.8
1.3
1.0
0
-.2
.2
-.8
1.1
135.2
159.6
110.6
102.4
120.3
136.3
161.1
111.2
101.8
117.4
136.5
160.9
111.8
101.4
113.9
136.7
161.5
111.8
100.8
115.7
-.4
-.1
-.7
-1.3
.0
.8
1.0
.6
-.6
-2.4
Major market groups
Products total2
Business equipment
Construction supplies
Oct.'
Nov.'
Major industry groups
Nondurable
Mining
Utilities
-.1
.5
-.4
-2.9
Dec. P
.2
1.9
.1
.0
.0
.6
5
-> 2
7.4
5.0
1.4
2
3
.0
-.6
1.6
2.3
4.8
-.8
-5.3
2.4
Capacity,
percentage
change,
Dec. 1997
to
Dec. 1998
1998
1997
Total
Low,
1982
High,
1988-89
Dec.
Sept.'
Oct.'
Nov.'
Dec.P
81.3
81.4
81.0
80.9
5.0
81.3
81.2
80.6
80.1
79.5.
82.1
85.2
95.0
80.4
79.8
82.4
84.6
92.7
80.1
79.5
82.3
84.2
89.9
79.9
79.2
82.4
83.6
91.3
5.6
6.6
2.9
.9
.8
82.1
71.1
85.4
83.4
81.1
80.5
82.4
87.5
87.5
69.0
70.4
66.2
80.3
75.9
85.7
84.2
88.9
88.0
92.6
82.5
81.4
85.4
89.0
89.9
Previous estimate
Advanced processing
Primary processing
Utilities
....
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
level more than 1 percentage point below its 1967-97
average.
Industrial production rose at an annual rate of
3.2 percent in the fourth quarter after having
increased at a 0.9 percent rate in the third quarter.
The gain was notable in manufacturing, where the
pace picked up from a 0.4 percent annual rate in the
third quarter to 5.1 percent in the fourth quarter. Part
of the acceleration reflected a rebound in motor vehicle assemblies after strikes had limited output in both
the second and third quarters; nonetheless, the output
of other manufacturing industries increased at an
annual rate of 3.3 percent in the fourth quarter after
having been little changed in the third quarter. Utility
output fell 12.5 percent at an annual rate in the fourth
quarter as a result of unusually mild temperatures.
MARKET GROUPS
The output of consumer goods was unchanged in
December. The production of automotive products
.4
MEMO
Capacity utilization, percen
Average,
1967-97
Dec. 1997
to
Dec. 1998
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
was also unchanged, but the output of other durable
consumer goods rose 0.8 percent. The production of
nondurable consumer goods slipped 0.1 percent,
pulled down by decreases in clothing and paper products. Residential sales of both electricity and gas
increased.
The production of business equipment was unchanged after a 0.8 percent drop in November.
December declines in the output of industrial equipment (notably mining and oil and gas field equipment), transit equipment, and farm machinery (a
component of the "other equipment" group) were
offset by a gain in information processing equipment.
The output of construction supplies rose 0.6 percent after gains of about 1 percent in both October
and November. The production of business supplies
increased 1.0 percent in December, more than reversing its loss in November.
The production of materials grew 0.5 percent after
having been nearly flat in the preceding three months.
The production of durable goods materials increased
Industrial Production and Capacity Utilization
0.6 percent as continued strength in the production of
semiconductors and computer parts offset weakness
in other categories. The output of basic metals slipped
0.1 percent and is now 5 percent below the level of
December 1997. The production of nondurable materials also edged down 0.1 percent because of weakness in the production of paper and textiles.
INDUSTRY GROUPS
Manufacturing output increased 0.2 percent, with
gains in the production of durable goods and with no
change in the production of nondurable goods. The
output for most major durable goods industries
increased; the biggest advances came in electrical
machinery, miscellaneous manufactures, and furniture. The production of computers increased 2.2 percent, while the output of other industrial machinery
fell, leaving the combined industrial machinery and
computer industry up only 0.4 percent. In the past
105
twelve months, computer output has expanded more
than 50 percent. The production of nondurable goods
was flat in December after having posted gains of
about Vi percent in the preceding two months. Gains
in petroleum and chemical products in December
were offset by losses in printing, textiles, apparel, and
food; the decline in food production follows two
consecutive monthly gains of about 1 Vi percent. Mining production continued to fall, being pulled down
by the continued contraction in oil and gas extraction.
The factory operating rate dropped 0.2 percentage
point to 79.9 percent—more than 2Vi percentage
points below the level in December 1997. The average rate in the fourth quarter, 80.2 percent, was
unchanged from the third quarter. The utilization rate
for advanced-processing industries remains below
its 1967-97 average, while the utilization rate for
primary-processing industries is at its long-term average. The utilization rate for mines fell 0.6 percentage
point in December and has fallen more than 5 percentage points during the past twelve months.
•
106
Statement to the Congress
Statement by Patrick M. Parkinson, Associate Director, Division of Research and Statistics, Board of
Governors of the Federal Reserve System, before the
Committee on Agriculture, Nutrition, and Forestry,
U.S. Senate, December 16, 1998
I appreciate this opportunity to present a progress
report on the studies that are being conducted by the
President's Working Group on Financial Markets. As
you know, two separate studies are under way—one
on the implications of the operations of firms such as
Long-Term Capital Management (LTCM) and their
relationships with their creditors and the other on
the oversight of over-the-counter (OTC) derivatives
transactions. The studies are separate because the
issues are, in fact, quite distinct. The central public
policy issue raised by the LTCM episode is how
financial leverage can be constrained most effectively
in our market-based economy. To be sure, in some
cases LTCM achieved substantial leverage through
use of OTC derivatives, but in other cases it relied on
exchange-traded derivatives, securities loans, and
securities repurchase agreements. The regulation of
OTC derivatives raises a much wider range of issues,
many of which are unrelated to the LTCM episode.
Indeed, the LTCM episode has no obvious bearing
on what are arguably the central issues in the OTC
derivatives study—whether or in what circumstances
government oversight is appropriate to deter fraud or
market manipulation and how best to provide legal
certainty regarding the enforceability of OTC derivative contracts.
LEVERAGED INSTITUTIONS AND THEIR
RELATIONSHIPS WITH THEIR CREDITORS
In our market-based economy, the primary mechanism that regulates firms' risk-taking is the discipline
provided by creditors and counterparties. If a firm
seeks to achieve greater leverage, its creditors and
counterparties will ordinarily respond by increasing
the cost or reducing the availability of credit to the
firm. The rising cost or reduced availability of funds
provides a powerful economic incentive for firms
to restrain their risk-taking. In the case of LTCM,
however, private market discipline seems to have
largely broken down. The key questions that must be
addressed by the Working Group are how to improve
and ensure the effectiveness of private market discipline and whether it needs to be supplemented by
additional government oversight.
The Working Group has made considerable
progress toward developing a common understanding
of LTCM's relationships with its counterparties and
of the weaknesses in those counterparties' riskmanagement practices that allowed LTCM to achieve
such an extraordinary degree of leverage. The most
important counterparties were banks and securities
firms subject to prudential oversight by banking regulators or by the Securities and Exchange Commission
(SEC). The Federal Reserve, the Comptroller of the
Currency, and the SEC all have carefully reviewed
the practices that entities they oversee have employed
to manage counterparty risks vis-a-vis LTCM and
other highly leveraged firms. They have shared their
findings with the other agencies that participate in the
Working Group's discussions.
Although the Working Group has not completed its
analysis of the creditors' risk-management practices,
some tentative conclusions can be identified. LTCM
appears to have received very generous credit terms,
even though it took an exceptional degree of risk.
Moreover, the weaknesses in risk-management practices that were evident in the counterparties' relationship with LTCM were also evident, albeit to a lesser
degree, in their dealings with other highly leveraged
firms. In LTCM's case, counterparties obtained information from LTCM that indicated that it had securities and derivatives positions that were very large
relative to its capital. However, few, if any, seem to
have really understood LTCM's risk profile, especially its very large positions in certain illiquid
markets. Instead, they appear to have made credit
decisions primarily on the basis of LTCM's past
performance and the reputation of its partners.
LTCM's counterparties also appear to have placed
too much reliance on their collateral agreements with
LTCM. Those agreements generally provided for the
timely collateralization of credit exposures at the
current market values of the collateral and, in the
case of derivatives, the current market values of the
derivatives. However, they required little or no collateral to cover the potential for future increases in
107
exposures from changes in market values. More
important, LTCM's counterparties appear to have
significantly underestimated those potential future
exposures. Their estimates simply did not make adequate allowance for the extreme volatility and illiquidity of financial markets that surfaced in August
and September. Furthermore, they failed to take into
account the potential for credit exposures to increase
dramatically if LTCM had defaulted and they and
other counterparties had attempted to liquidate collateral and replace derivatives contracts in amounts that
in some instances would have been very large relative to the liquidity of the markets in which the
transactions would have been executed. Because the
counterparties did not take these risks into account,
they granted LTCM huge trading lines in a variety of
products, and LTCM took advantage of those lines to
achieve its exceptional degree of leverage.
These weaknesses in risk-management practices
clearly need to be addressed. The counterparties
themselves should bear primary responsibility for
designing and implementing the necessary improvements. It is in their clear self-interest, as their experience with LTCM has demonstrated. Furthermore, notwithstanding deficiencies in their current practices,
these firms are the world leaders in risk management.
Their combination of technical expertise and of their
understanding of financial markets is unsurpassed in
the private sector and unmatched in government.
Nonetheless, prudential overseers have a responsibility to ensure that the processes that banks and
securities firms utilize to manage risk are commensurate with the size and complexity of their portfolios
and responsive to changes in financial market conditions. Moreover, prudential overseers can, and
should, promote the adoption of sound practices
throughout the financial sector through issuance of
supervisory guidance. In the case of U.S. banks, the
Federal Reserve and the other banking regulators
have already made considerable progress in identifying sound practices for dealing with highly leveraged
firms and, more generally, in distilling the lessons
learned during the recent episodes of market volatility and incorporating those lessons in supervisory
standards and procedures.
For its part, the Federal Reserve is well along
in developing supervisory guidance to promote the
needed improvements in risk management. Among
the areas to be addressed are (1) the credit approval
process and ongoing monitoring of credit quality,
including the availability of information on counterparties and its use in making credit decisions; (2) procedures for estimating potential future credit exposures, including stress testing to gauge exposures in
volatile and illiquid markets; (3) approaches to setting limits on counterparty credit exposures; and
(4) policies regarding the use of collateral to mitigate
counterparty credit risks. The Federal Reserve is also
reviewing its own examination procedures, particularly those relating to the assessment of the risks
posed by potential future credit exposures.
Improvements in creditors' risk-management capabilities, developed at their own initiative and reinforced by the actions of prudential supervisors,
should significantly strengthen the effectiveness of
market discipline and thereby place more effective
constraints on leverage and risk-taking. The Working
Group has also begun discussing whether additional
government oversight could effectively supplement
private market discipline. The types of oversight
under discussion include proposals intended to provide creditors, investors, or the general public with
additional information on risk-taking by highly leveraged institutions. Also under discussion are proposals for more direct regulation of leverage through
broader application of capital requirements or margin
requirements. These discussions are still at an early
stage, and at this point it is not yet clear whether the
Working Group's members will support additional
government oversight or, if so, what specific forms of
oversight will be supported.
OVERSIGHT OF OTC DERIVATIVES
The Working Group's study of the appropriate oversight of OTC derivatives is at an earlier stage than
its study of the implications of the LTCM episode.
Nonetheless, the Working Group's staff have reached
agreement on the organization of the study and the
analytical approach that will be employed.
In brief, the purpose of the study will be to assess
the need for government oversight to promote public
policy objectives with respect to financial markets.
The policy objectives that seem relevant and that will
be addressed in the study include (1) deterring market
manipulation; (2) deterring fraud and protecting certain counterparties to financial transactions; (3) promoting the financial integrity of markets by limiting
potential losses from counterparty defaults; (4) providing legal certainty with respect to the enforceability of contracts; (5) regulatory parity, that is, avoiding
significant competitive disparities across financial
markets and institutions; (6) appropriately limiting
systemic risk; and (7) harmonizing regulations internationally.
Whether government oversight of a particular
financial market is necessary to achieve those objec-
108
Federal Reserve Bulletin • February 1999
tives depends critically on the characteristics of the
market and the participants in the market. The Working Group's staff is developing a common understanding of OTC derivatives and the markets in which
they are traded, drawing on the existing knowledge
and expertise of its constituent agencies. Information
is being developed on the instruments traded and
the size of their markets, the types of participants and
the roles that they play, the market infrastructure
(trading and settlement arrangements), and the existing forms of government oversight of participants
and instruments.
Even with a common understanding of the public
policy objectives and the characteristics of OTC
derivatives, the Working Group may encounter difficulty reaching consensus on the need for government
oversight. Ultimately, judgments about the need for
oversight will be determined to an important degree
by the views of the principals as to the most effective
role government can play in our market economy,
and those views may well differ. Nonetheless, the
Working Group's study of OTC derivatives will
prove of considerable value to the Congress if, as
anticipated, it lays out clearly the reasons for any
differences of opinion.
•
109
Announcements
APPOINTMENTS OF NEW MEMBERS TO THE
THRIFT INSTITUTIONS ADVISORY COUNCIL
The Federal Reserve Board on December 23, 1998,
announced the names of seven new members of its
Thrift Institutions Advisory Council (TIAC) and designated a new president and vice president of the
council for 1999.
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 savings and loan, savings bank, and credit
union representatives. The council meets at least three
times each year with the Board of Governors to
discuss developments relating to thrift institutions,
the housing industry, mortgage finance, and certain
regulatory issues.
The new council president for 1999 is William A.
Fitzgerald, Chairman and CEO, Commercial Federal
Bank, Omaha, Nebraska. The new vice president is
F. Weller Meyer, President and CEO, Acacia Federal
Savings Bank, Falls Church, Virginia.
The seven new members, named for two-year
terms that began January 1, are the following:
James C. Blaine, President, State Employees' Credit
Union, Raleigh, N.C.
Lawrence L. Boudreaux III, President and CEO, Fidelity
Homestead Association, New Orleans, La.
Babette E. Heimbuch, President and CEO, First Federal
Bank of California, FSB, Santa Monica, Calif.
Thomas S. Johnson, Chairman, President, and CEO,
GreenPoint Bank, Manhattan, N.Y.
William A. Longbrake, Executive Vice President and
Chief Financial Officer, Washington Mutual Bank,
Seattle, Wash.
Kathleen E. Marinangel, Chairman, President, and CEO,
McHenry Savings Bank, McHenry, 111.
Anthony J. Popp, President and CEO, Marietta Savings
Bank, Marietta, Ohio
Other TIAC members whose terms continue
through 1999 are the following:
Garold R. Base, President and CEO, Community Credit
Union, Piano, Tex.
David A. Bochnowski, Chairman, President, and CEO,
Peoples Bank, SB, Munster, Ind.
Richard P. Coughlin, President and CEO, Stoneham
Co-operative Bank, Stoneham, Mass.
ADJUSTMENT TO THE DOLLAR AMOUNT THAT
TRIGGERS ADDITIONAL DISCLOSURE
REQUIREMENTS UNDER REGULATION Z
The Federal Reserve Board on December 2, 1998,
published its annual adjustment of the dollar amount
that triggers additional disclosure requirements under
Regulation Z (Truth in Lending) for mortgage loans
that bear fees above a certain amount. The Home
Ownership and Equity Protection Act of 1994 bars
credit terms such as balloon payments and requires
additional disclosures when total points and fees payable by the consumer exceed $400 (to be adjusted
annually) or 8 percent of the total loan amount,
whichever is larger.
The Board has adjusted the dollar amount from
$435 for 1998 to $441 for 1999 based on the annual
percentage change reflected in the consumer price
index that is in effect on June 1.
DECISION ON THE LEGAL DISPARITIES
BETWEEN FEDERAL RESERVE BANKS AND
PRIVATE-SECTOR BANKS IN THE PRESENTMENT
AND SETTLEMENT OF CHECKS
The Federal Reserve Board on December 9, 1998,
announced that it had decided not to make regulatory
changes with respect to the remaining legal disparities that exist between Federal Reserve Banks and
private-sector banks in the presentment and settlement of checks. The Board has concluded that the
costs associated with further reducing these legal
disparities would outweigh any efficiency gains in the
payments system.
The decision is based on the Board's analysis of
comments received on the effects of its 1994 sameday settlement rule and on whether further changes in
this area are warranted.
110
Federal Reserve Bulletin • February 1999
EXEMPTION THRESHOLD FOR DEPOSITORY
INSTITUTIONS REQUIRED TO REPORT DATA
UNDER THE HMD A
The Federal Reserve Board on December 18, 1998,
announced that the exemption threshold for depository institutions that are required to report data under
the Home Mortgage Disclosure Act (HMDA) will
remain at $29 million.
Under the revision to the Board's staff commentary to Regulation C (Home Mortgage Disclosure),
depository institutions with assets totaling $29 million or less as of December 31, 1998, are not required
to collect HMDA data in 1999.
The Board is required to adjust annually the assetsize exemption threshold for depository institutions
based on the annual percentage change in the consumer price index. The adjustment reflects changes
for the twelve-month period ending in November
1998.
INTERIM REGULATORY REPORTING AND
CAPITAL GUIDANCE ON FAS 133
The Reports Task Force of the Federal Financial
Institutions Examination Council (FFIEC), acting
under delegated authority, is announcing its decisions
regarding the appropriate regulatory reporting treatment for derivatives. The Office of Thrift Supervision
and the Federal Reserve Board have reached similar
reporting decisions for the savings associations and
bank holding companies that they supervise.
Additionally, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, and the Office of Thrift
Supervision (the agencies) are describing the appropriate interim regulatory capital treatment of derivatives for banks, bank holding companies, and savings
associations (collectively, banking organizations).
The agencies are taking these actions in response
to the June 1998 issuance of Statement of Financial
Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities"
(FAS 133). Although FAS 133 does not become
effective until fiscal years beginning after June 15,
1999, banking organizations may adopt the standard
early. This new accounting standard requires that all
derivatives be recorded on the balance sheet as assets
or liabilities at their fair value. In addition, it significantly changes the accounting for derivatives used
for hedging purposes and for financial instruments
with certain types of embedded derivatives. These
new accounting requirements may affect the amount
of a banking organization's recorded assets, liabilities, and equity, and corresponding regulatory capital
levels.
The agencies are issuing the interim guidance to
explain how derivatives should be reported in the
bank Reports of Condition and Income (Call Report),
the Consolidated Financial Statements for Bank
Holding Companies (FR Y-9C), and the Thrift Financial Report (TFR), and treated under the agencies'
existing capital standards after a banking organization adopts FAS 133.
Regulatory Reporting
For purposes of the Call Report, FR Y-9C, and TFR,
changes in the fair value of many derivatives are
to be reflected in net income. However, FAS 133
requires that the effective portion of the change in the
fair value of derivatives used in certain types of
hedges (cash flow hedges) be excluded from net
income and reflected on the balance sheet in a separate component of equity (referred to as "accumulated other comprehensive income" in FAS 133).'
For banks and bank holding companies, until any
revisions are made to the relevant regulatory reports,
those accumulated changes in fair value should be
reported on the same Call Report and FR Y-9C lines
that are used to report net unrealized holding gains
(losses) on available-for-sale securities. For savings
associations, those accumulated changes in fair value
should be reported on the same TFR line that is used
to report other components of equity capital.
Regulatory Capital
Until the agencies determine otherwise, the separate
component of equity resulting from cash flow hedges
should not be included in (that is, should be excluded
from) regulatory capital. Additionally, the existing
risk-based capital treatment for derivatives remains
in effect, pending further review. In other words,
recording a derivative on the balance sheet under
FAS 133 will not change the risk-weighted asset
amount for that derivative. The implementation of
FAS 133, however, may still affect an institution's
regulatory capital. Changes in the fair value of
derivatives that are recognized in net income will be
included in undivided profits (retained earnings for
1. In general, the effective portion of a hedge is best described as
the change in fair value of the derivative that offsets the change in
expected cash flows on the hedged item.
Announcements
bank holding companies and savings associations),
which is a component of tier 1 capital. Furthermore,
the on-balance-sheet reporting of derivatives may
affect the total assets reported by banking organizations with derivatives, directly affecting the institution's leverage ratio.
The agencies are evaluating the effect of FAS 133
on regulatory reporting and capital in conjunction
with other supervisory issues. However, pending the
completion of that analysis, banking organizations
should follow the regulatory reporting guidance and
capital treatment summarized above and more fully
described in the attachment.2
ISSUANCE OF A UNIFORM INTERAGENCY
POLICY STATEMENT ON INTERCOMPANY TAX
ALLOCATION AGREEMENTS FOR BANKING
ORGANIZATIONS AND SAVINGS ASSOCIATIONS
The Federal Reserve Board, along with the Office of
the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Office of Thrift
Supervision (the agencies) issued a uniform interagency policy statement regarding intercompany tax
allocation agreements for banking organizations and
savings associations that file an income tax return as
members of a consolidated group. The policy statement was effective November 23, 1998.
The statement is intended to provide guidance to
institutions regarding the allocation and payment of
taxes among a bank holding company and its depository institution subsidiaries. In general, intercorporate tax settlements between an institution and its
parent company should be conducted in a manner
that is no less favorable to the institution than if it
were a separate taxpayer.
The policy statement is the result of the agencies'
ongoing effort to implement section 303 of the Riegle
Community Development and Regulatory Improvement Act of 1994, which requires the agencies to
work jointly to make uniform their regulations and
guidelines implementing common statutory or supervisory policies.
PROPOSED ACTIONS
The Federal Reserve Board on December 1, 1998,
published proposed revisions to the official staff commentary that applies and interprets the requirements
2. The attachment is available on request from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve
System, Washington, DC 20551 and on the Board's web site (http://
www.federalreserve.gov) under "Press Releases—General."
111
of Regulation M (Consumer Leasing). Comments
were requested by January 22, 1999.
The Federal Reserve Board on December 2, 1998,
published proposed revisions to the official staff commentary that applies and interprets the requirements
of Regulation Z (Truth in Lending). Comments were
requested by January 22, 1999.
The Federal Reserve Board is requesting comments on proposed amendments to Regulation CC
(Availability of Funds and Collection of Checks) to
temporarily extend one-year merger transition provisions to facilitate banks' efforts for Year 2000
readiness. The deadline for comments, originally
January 4, 1999, was extended to February 1, 1999.
The Federal Reserve Board on December 7, 1998,
requested comments on a proposed rule that will
require the domestic and foreign banking organizations supervised by the Federal Reserve to develop
and maintain "Know Your Customer" programs.
Comments were requested by March 8, 1999.
The Federal Reserve Board on December 16, 1998,
requested comments on the benefits and drawbacks
of providing settlement finality on the morning of the
settlement day for automated clearinghouse credit
transactions processed by the Federal Reserve. Comments were requested by March 18, 1999.
ENFORCEMENT ACTIONS
The Federal Reserve Board on December 4, 1998,
announced the issuance of a combined order to cease
and desist and order of assessment of civil money
penalties against Putra Masagung and P.T. Gunung
Agung, Ltd. Corporation, Jakarta, Indonesia, and an
order of prohibition against Mr. Masagung.
Mr. Masagung and P.T. Gunung Agung, without
admitting to any allegations, consented to the issuance of the order in connection with allegations that
Mr. Masagung and P.T. Gunung Agung violated
the Bank Holding Company Act as a result of
P.T. Gunung Agung's acquisition of a beneficial ownership interest in The San Francisco Company,
San Francisco, California, a registered bank holding
company. The San Francisco Company owns the
Bank of San Francisco.
The order required Mr. Masagung and P.T. Gunung
Agung to sell their interests in The San Francisco
Company through a voting trust. The order also
requires Mr. Masagung to pay a civil money penalty
of $250,000 and P.T. Gunung Agung to pay a civil
money penalty of $200,000.
The issuance of the order by the Board does not
relate in any manner to the condition or activities
112
Federal Reserve Bulletin • February 1999
of the Bank of San Francisco, and the sale by
Mr. Masagung and P.T. Gunung Agung of their interests in The San Francisco Company should not affect
the bank's operations.
The Federal Reserve Board on December 7, 1998,
announced the execution of a written agreement by
and among the Southern Security Bank, Hollywood,
Florida, the Federal Reserve Bank of Atlanta, and the
State Comptroller and Banking Commissioner of the
State of Florida.
The Federal Reserve Board on December 14,
1998, announced the issuance of a cease and desist
order against the Zia New Mexico Bank, Tucumcari, New Mexico. The order addresses the bank's
Year 2000 readiness.
The Federal Reserve Board on December 16, 1998,
announced the issuance of a final decision and order
of prohibition and restitution against Ricardo
Carrasco, a former employee of the New York Branch
of BankBoston International, Coral Gables, Florida.
The order prohibits Mr. Carrasco from participating
in the conduct of the affairs of any financial institution or holding company and requires him to make
restitution of $73 million to reimburse BankBoston
International for losses he caused in connection with
certain overdraft accounts.
The Federal Reserve Board on December 16, 1998,
announced the issuance of an order of assessment of
a civil money penalty against Kassahum Kebede, a
former employee and institution-affiliated party of
the Bankers Trust Company, New York, New York, a
state member bank.
Mr. Kebede, without admitting to any allegations,
consented to the issuance of the order in connection
with his involvement in the recording of leveraged
derivative transactions on the books and records of
the Bankers Trust Company. Mr. Kebede paid a fine
of $15,000.
The Federal Reserve Board on December 16, 1998,
announced the issuance of an order of assessment of
a civil money penalty against the P.T. Ekspor Impor
Bank Indonesia (Persero), Jakarta, Indonesia, and the
bank's New York Agency.
P.T. Ekspor Impor Bank Indonesia (Persero) and
the agency, without admitting to any allegations,
consented to the issuance of the order in connection
with allegations that they failed to comply with the
terms of the written agreement that they entered into
on December 29, 1994, with the Federal Reserve
Bank of New York and the Superintendent of Banks
of the State of New York.
P.T. Ekspor Impor Bank Indonesia (Persero) and
the agency paid a $50,000 penalty to the Federal
Reserve Board and paid $50,000 to New York State.
The Federal Reserve Board on December 16, 1998,
announced the issuance of an order of prohibition
against Fred J. Smilek, a former officer of the Chemical Bank, New York, New York, a former state member bank.
Mr. Smilek, without admitting to any allegations,
consented to the issuance of the order because of his
alleged misappropriation of approximately $275,000
during the period when he was an officer of the bank.
The Federal Reserve Board on December 22, 1998,
announced the execution of a written agreement by
and among Adairsville Bancshares, Inc., Adairsville,
Georgia; the Bank of Adairsville, Adairsville, Georgia; the Federal Reserve Bank of Atlanta; and the
Banking Commissioner of the State of Georgia. The
written agreement includes provisions addressing
Year 2000 readiness.
DISCONTINUATION OF TWO STATISTICAL
TABLES IN THE FEDERAL RESERVE BULLETIN
Publication of table 3.26, "Discount Rates of Foreign
Central Banks," and table 3.27, "Foreign Short-Term
Interest Rates," in the statistical appendix of the
Federal Reserve Bulletin will be discontinued as
of the March 1999 issue. This change has been
prompted by the effects of the introduction of the
euro on the structure of markets. Data for December
1998 appear in these tables on page A61 of this issue.
PUBLICATION OF THE DECEMBER 1998 UPDATE
TO THE BANK HOLDING COMPANY
SUPERVISION MANUAL
The December 1998 update to the Bank Holding
Company Supervision Manual, Supplement No. 15,
has been published and is now available. The Manual
comprises the Federal Reserve System's bank holding company supervisory and inspection guidance.
The new supplement includes the following.
1. New or supplemental examiner supervisory
guidance for identifying and evaluating the adequacy
and extent of risk management and its associated
systems, including the needed policies, procedures,
Announcements
and internal controls. Such supervisory guidance is
provided for commercial lending standards, private
banking activities, internal credit-rating systems (that
is, at large, sound institutions), information technology utilization, internal audit function and its
outsourcing, and involvement in secondary market
activities. Each section includes the bank holding company inspection policies, objectives, and
procedures.
2. The Board's 1998 adoption of changes to the
capital adequacy standards for state member banks
and bank holding companies. The changes consist of
the following:
• Amendment effective August 25, 1998, to the
risk-based measure that applies to holding equity
securities, whereby up to 45 percent of pretax
net unrealized holding gains on certain availablefor-sale securities can be included in tier 2
capital
• Increase adopted August 4, 1998 (for the riskbased capital and leverage measures), from
50 percent to 100 percent of tier 1 capital for the
amount of intangible servicing assets (mortgage
servicing assets and nonmortgage servicing
assets) and purchased credit-card relationships
that may be included in regulatory capital1
• Adoption on May 29, 1998, of the tier 1 leverage
capital standard that provides for a minimum
ratio of tier 1 capital to total assets of 3 percent if
a bank holding company has been rated either a
composite " 1 " under the Federal Reserve's bank
holding company rating system (BOPEC), or if
it has implemented the Board's risk-based capital market risk measure.
3. Changes emanating from the Federal Financial
Institutions Examination Council's (FFIEC's) April
1998 Statement on Investment Securities and EndUser Derivatives Activities that replaced the 1992
FFIEC Supervisory Policy Statement on Securities
Activities.
4. Changes to several sections involving the "laundry list" of nonbanking activities for Regulation Y
(Bank Holding Companies and Change in Bank Control), effective in April 1997. The new or revised
sections include such activities as the following:
• Providing to customers as agent certain other
transactional services with respect to swaps and
similar transactions, bank-eligible transactions,
certain permissible investment transactions
1. A further sublimit of 25 percent of tier 1 capital applies to the
aggregate amount of nonmortgage servicing assets and purchased
credit-card relationships. The valuation of mortgage servicing assets,
nonmortgage servicing assets, and purchased credit-card relationships
is also subject to a 10 percent discount.
113
entered into as principal, including derivatives
contracts relating to a commodity that is traded
on an exchange
• Investment transactions as principal including
such transactions as underwriting and dealing in
bank-eligible government obligations and money
market instruments; investing and trading activities involving foreign exchange; swaps and certain derivative and similar contracts based on
a rate, price, financial asset, nonfmancial asset,
or group of assets, other than a bank-ineligible
security
• Other examples of nonbanking activities that
were previously approved only by Board order
before April 1997, such as the issuance and sale
at retail of consumer payment instruments; support services, such as printing and selling MICRencoded items; and the buying and selling of
bullion and related activities.
A more detailed summary of changes is included
with the update package. The Manual's new or
revised sections include inspection guidance and
inspection objectives and procedures. The Manual
and updates, including pricing information, are available from Publications Services, Mail Stop 127,
Board of Governors of the Federal Reserve System, Washington, DC 20551 (or charge by facsimile:
202-728-5886). The Manual is also available on the
Board's public web site (www.federalreserve.gov/
boarddocs/SupManual/).
CHANGES IN BOARD STAFF
The Board of Governors announced the following
officer actions, effective January 4, 1999:
In the Office of Board Members, the promotion of
Winthrop P. Hambley, from Special Assistant to
the Board to Deputy Congressional Liaison.
In the Division of Research and Statistics, a change
in title of David S. Jones, from Assistant Director and Chief to Senior Adviser.
In the Division of Reserve Bank Operations and
Payment Systems, the appointments of Jeff
Stehm and Kenneth D. Buckley as Assistant
Directors.
Mr. Stehm joined the Boards's staff in 1983. He
will assume responsibility for the newly formed
Retail Payments Section and the expanded Wholesale
Payments Section. He received a B.S. and an M.A.
from Iowa State University.
114
Federal Reserve Bulletin • February 1999
Mr. Buckley joined the Board's staff in 1988. He
will assume responsibility for the Information Technology and Systems Section, the Building Planning
Section, and the Protection Function. He received a
B.A. from William Paterson College, an M.S. from
the Medical College of Virginia, and an M.S. from
Virginia Polytechnic Institute.
Also in the Division of Reserve Bank Operations
and Payment Systems, David L. Robinson, Deputy
Director for Finance and Control, and Earl G. Hamilton, Assistant Director, retired, effective January 1,
1999.
•
115
Minutes of the
Federal Open Market Committee Meeting
Held on November 17, 1998
A meeting of the Federal Open Market Committee
was held in the offices of the Board of Governors of
the Federal Reserve System in Washington, D.C., on
Tuesday, November 17, 1998, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Ferguson
Mr. Gramlich
Mr. Hoenig
Mr. Jordan
Mr. Kelley
Mr. Meyer
Ms. Minehan
Mr. Poole
Ms. Rivlin
Messrs. Boehne, McTeer, Moskow, and Stern,
Alternate Members of the Federal Open Market
Committee
Messrs. Broaddus, Guynn, and Parry, Presidents of
the Federal Reserve Banks of Richmond,
Atlanta, and San Francisco respectively
Mr. Bernard, Deputy Secretary
Ms. Fox, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Prell, Economist
Messrs. Cecchetti, Dewald, Lindsey, Simpson,
Sniderman, and Stockton, Associate Economists
Mr. Fisher, Manager, System Open Market Account
Mr. Winn, Assistant to the Board, Office of Board
Members, Board of Governors
Ms. Johnson, Director, Division of International
Finance, Board of Governors
Mr. Ettin, Deputy Director, Division of Research and
Statistics, Board of Governors
Messrs. Alexander and Hooper, Deputy Directors,
Division of International Finance, Board of
Governors
Messrs. Madigan and Slifman, Associate Directors,
Divisions of Monetary Affairs and Research and
Statistics respectively, Board of Governors
Mr. Reinhart, Deputy Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Whitesell, Assistant Director, Division of
Monetary Affairs, Board of Governors
Ms. Garrett, Economist, Division of Monetary Affairs,
Board of Governors
Mr. Kumasaka, Assistant Economist, Division of
Monetary Affairs, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Mr. Moore, First Vice President, Federal Reserve
Bank of San Francisco
Messrs. Beebe, Eisenbeis, Ms. Krieger, Messrs. Lang,
and Rosenblum, Senior Vice Presidents, Federal
Reserve Banks of San Francisco, Atlanta,
New York, Philadelphia, and Dallas respectively
Messrs. Evans, Fuhrer, Hetzel, Miller, and Sellon,
Vice Presidents, Federal Reserve Banks of
Chicago, Boston, Richmond, Minneapolis, and
Kansas City respectively
By unanimous vote, the minutes of the meeting of
the Federal Open Market Committee held on September 29, 1998, were approved. The Manager of the
System Open Market Account reported on recent
developments in foreign exchange markets. There
were no open market operations in foreign currencies
for the System's account in the period since the
previous meeting, and thus no vote was required of
the Committee.
The Manager also reported on developments in
domestic financial markets and on System open market transactions in government securities and federal
agency obligations during the period September 29,
1998, through November 16, 1998. By unanimous
vote, the Committee ratified these transactions.
116
Federal Reserve Bulletin • February 1999
The Manager informed the Committee that he
planned to initiate outright purchases in the secondary market of inflation-indexed Treasury securities.
In the past, the System had been acquiring holdings
of such securities in Treasury auctions in exchange
for maturing nominal obligations. In the Manager's
opinion, secondary market transactions would provide a helpful addition to the current range of assets
that the System normally purchased, especially in a
period of little or no increase in Treasury debt. Some
members expressed concern that sizable purchases of
indexed securities by the central bank might impair
the liquidity of the market and limit the usefulness of
these obligations as indicators of inflationary expectations. It was noted, however, that relatively limited
System purchases of such securities were contemplated so that the market was not likely to be significantly affected. Moreover, the System's participation
could contribute to a more active and liquid secondary market.
In further discussion of the wording of the operating paragraph of its directive, the Committee at this
meeting focused on proposals by members to simplify and clarify the sentence relating to the symmetry or asymmetry of the directive as it applied to
possible future policy changes. Time constraints did
not permit the Committee to complete its deliberations, and it agreed to continue its discussion at a
later meeting.
The Committee then turned to the economic and
financial outlook and the implementation of monetary policy over the intermeeting period ahead. A
summary of the economic and financial information
available at the time of the meeting and of the Committee's discussion is provided below, followed by
the domestic policy directive that was approved by
the Committee and issued to the Federal Reserve
Bank of New York. Committee decisions to amend
the Authorization for Domestic Open Market Operations and to renew certain swap line agreements also
are summarized below.
The information reviewed at this meeting suggested some moderation in the expansion of economic activity from a brisk pace during the summer
months. Although growth of economic activity in the
third quarter apparently about matched the pace in
the first half of the year, a large buildup of nonfarm
inventories had accounted for a significant portion of
the persisting strength of the expansion during the
quarter. Growth in consumer spending had been well
maintained during the summer months, and housing
activity had remained at a high level. In other major
sectors of the economy, business fixed investment
had softened after having surged in the first half, and
net exports had declined further, although at a
reduced pace. Growth in employment had slowed
appreciably on balance during the summer and early
fall months, but tight conditions had persisted in most
labor markets. Recent wage and price developments
had been mixed.
Growth in nonfarm payroll employment slowed
appreciably in September and October. The slowing
partly reflected sizable job losses in manufacturing,
which has been substantially affected since earlier
in the year by rising foreign competition stemming
from the crisis in Asia. Outside of manufacturing,
increases in employment in the service-producing
industries moderated somewhat over the two months,
although gains in finance, insurance, and real estate
were relatively robust. The civilian unemployment
rate remained near 4'/2 percent during the two
months.
Industrial output had declined slightly in recent
months after having rebounded in August when production resumed at General Motors following settlement of the labor strike. Outside the motor vehicle
sector, manufacturing output edged lower in recent
months after having decelerated markedly earlier in
the year. Weakness in the manufacturing and mining
sectors was associated in large measure with the
fallout from the turmoil in Asia, its repercussions on
a number of U.S. trading partners, and the related
softness in world oil markets. The downward trend in
the utilization of capacity in manufacturing left the
factory operating rate appreciably below its level of
late last year.
Personal consumption expenditures rose considerably further during the third quarter, though at a
much slower pace than that recorded earlier in the
year. Retail sales were down slightly on balance
during the quarter, reflecting a sharp drop in sales of
motor vehicles associated with the work stoppage
at General Motors. However, the settlement of that
strike and the resumption of production led to an
upturn in motor vehicle sales in August and a sizable
advance in September. A large further gain in such
sales contributed to a sharp rise in overall retail sales
in October. Consumer confidence retreated further in
October, but according to a major survey it turned up
in early November, albeit to a level still somewhat
below its peak earlier in the year.
Available indicators pointed to a pickup in business capital spending after a third-quarter lull, owing
to some extent to a recovery from the General Motors
strike. Business investment expenditures during the
summer were held down in part by the strike-related
decline in fleet sales of new motor vehicles. In addition, spending for other types of business equipment
Minutes of the Federal Open Market Committee
grew somewhat more slowly in the third quarter after
having expanded at an extraordinary pace earlier in
the year. Orders received by U.S. equipment makers
continued to trend up through September. In contrast,
nonresidential building activity apparently fell somewhat further in the third quarter. While the construction of lodging facilities surged and the construction
of office space persisted at a high level, there was a
decline in other commercial building, which includes
retail stores and warehouses, industrial structures,
and institutional buildings. The availability of financing for various types of construction appeared to
lessen substantially in late summer, and financing
costs rose for many borrowers.
In the residential sector, housing sales and starts
remained quite strong, though below early summer
highs. Housing activity showed signs of dropping off
from peak levels during the latter part of the summer,
but the decline in mortgage rates this fall produced
an upturn in several indicators of demand for singlefamily housing, including a rebound in a survey
index of homebuying conditions. Multifamily housing starts increased considerably in the third quarter,
but since late summer the availability of financing for
multifamily building projects has tended to diminish
and interest costs to rise.
Business inventory accumulation was sizable in
the third quarter, and stocks-sales ratios rose to
uncomfortable levels in some industries that were
being adversely affected by the nation's growing
trade deficit. In manufacturing, however, stockbuilding slowed during the summer months and the stockshipment ratio was unchanged at a level just above
its average for the past year. At the wholesale level,
a rapid increase during the third quarter lifted the
inventory-sales ratio for this sector to its highest
level since 1986; nearly half the rise was the result of
a buildup of farm products that was related in part
to an early harvest, but wholesalers of machinery,
chemicals, and metals and minerals also apparently
experienced undesired buildups of stocks. Retail
inventories excluding motor vehicles accumulated at
a slow pace during the summer, and the inventorysales ratio for this category remained well within the
narrow range of the past year.
The nominal deficit on U.S. trade in goods and
services widened to some extent in July-August from
its second-quarter average. The value of imports in
the July-August period, though rising appreciably in
August, was somewhat below the second-quarter
average, with most of the decline involving automotive products and oil. The value of exports fell somewhat over the two months, largely reflecting declines
in exports of automotive products and industrial sup
117
plies and reduced service transactions. Decreases in
exports partly reflected weakness in foreign economies. In the third quarter, growth in economic activity slowed on average in the major industrial countries, other than Japan, from the average pace in the
first half of the year and contracted for a fourth
consecutive quarter in Japan. There were widespread
indications in the industrial nations, particularly from
surveys of business and consumer confidence, that
some slowing was persisting into the fourth quarter.
Elsewhere, the available evidence pointed to some
improvement in economic trends in a number of
Asian nations, but the economies of several sizable
South American countries appeared to have weakened. Recent economic indicators for Mexico were
mixed.
The performance of various measures of wages
and prices was uneven in recent months. The most
recently available employment cost index indicated
that hourly compensation of private industry workers
posted a sizable increase in the third quarter. However, gains in average hourly earnings moderated
considerably in September and October. The increase
in the employment cost index over the past year was
appreciably larger than in the previous year, while
the advance in average hourly earnings moderated
somewhat.
Consumer energy prices rose appreciably in October, but they were still down sharply from a year
earlier and on balance limited the increase of overall
consumer prices over the past year. Core consumer
prices moved up at a faster pace than overall consumer prices in recent months and over the past year,
reflecting sizable increases in the prices of tobacco,
used cars and trucks, and services. At the producer
level, prices of finished goods edged up in recent
months but were down on balance over the past year;
excluding food and energy items, producer prices
rose somewhat over the past year.
At its meeting on September 29, 1998, the Committee adopted a directive that called for implementing conditions in reserve markets that were consistent
with a one-quarter percentage point decrease in the
federal funds rate to an average of around 514 percent. The Committee also decided to adopt an asymmetric directive that was tilted toward ease to highlight its view that the risks to the economic expansion were mainly on the downside and to underscore
its readiness to respond promptly to developments
that threatened the sustainability of the expansion.
The reserve conditions associated with this directive
were expected to be consistent with some moderation in the growth of M2 and M3 over subsequent
months.
118
Federal Reserve Bulletin • February 1999
Following the meeting, open market operations
were directed initially toward implementing a slight
easing in the degree of pressure on reserve positions.
The federal funds rate, responding to quarter-end
pressures and uncertainties created by shifting funding patterns in volatile financial markets, tended at
first to average somewhat above the intended rate of
5lA percent despite a relatively liberal provision of
reserves by the System. Strains in financial markets
continued to mount, with intermediaries and final
investors much more cautious about risks and leverage and much more eager to hold very liquid assets.
These developments in turn disrupted flows of funds
in a number of financial markets. On October 15, the
Committee discussed these developments and their
implications for the domestic economy, and the members supported the Chairman's suggestion that, in
keeping with the directive issued at the September 29
meeting, he instruct the Federal Reserve Bank of
New York to reduce the intended federal funds rate
by a further 25 basis points to around 5 percent. On
the same day, the Board of Governors approved a
reduction in the discount rate from 5 percent to
4% percent. These actions were taken in the light
of growing indications of caution by lenders and
unsettled conditions in financial markets more generally that were deemed likely to restrain aggregate
demand in the future. Subsequently, trading in the
federal funds market remained relatively volatile but
the federal funds rate averaged close to its lower
intended level. In financial markets more generally,
strains gradually moderated after mid-October and
sizable issuance of securities resumed in a number of
key markets, but uncertainty remained high and relatively illiquid conditions persisted. In the stock market, share prices dropped in the weeks following the
September meeting, but the market rallied strongly
after mid-October and key market indexes posted
sizable gains on balance over the intermeeting period.
In foreign exchange markets, the trade-weighted
value of the dollar fell moderately over the period in
relation to other major currencies. The largest decline
occurred in relation to the Japanese yen and appeared
to reflect efforts to reduce speculative exposure to
that currency; changes in the value of the dollar
against other major currencies were mixed, likely
fostered by disparate interest rate and economic
developments. The dollar also fell somewhat in terms
of a broad index of currencies of other countries that
are important trading partners of the United States,
including the developing nations of Latin America
and Asia.
M2 and M3 posted very large increases in September and October. The gains appeared to be induced to
an important extent by increased demand for safe and
liquid assets in a period of substantial turmoil in
financial markets that led to shifts of funds by households out of investments in equities and lower-rated
corporate debt. The advance in M2 during October
probably also was boosted by the decline in its opportunity cost resulting from the effects of the System's
easing actions on market interest rates and the
unusual softness in Treasury bill rates during much of
the month. The even faster increase in M3 in October
also reflected both inflows to institution-only money
market mutual funds that were stimulated by declines
in short-term market rates and bank efforts to fund
heavy demand for loans arising in part from the
deflection of demand for funding from securities
markets. For the year through October, both aggregates rose at rates well above the Committee's ranges
for the year. Expansion of total domestic nonfinancial
debt moderated slightly in recent months after having
picked up earlier in the year.
The staff forecast prepared for this meeting continued to point to considerable slowing in the expansion
of economic activity to a pace appreciably below the
estimated growth of the economy's potential, but the
expansion was expected to pick up later to a rate
more in line with that potential. Subdued expansion
of foreign economic activity and the lagged effects of
the earlier rise in the foreign exchange value of the
dollar were expected to place considerable, albeit
diminishing, restraint on the demand for U.S. exports
for some period ahead and to lead to further substitution of imports for domestic products. Domestic production would also be held back for a time by the
efforts of firms to bring inventories into better balance with the anticipated moderation in the trajectory
of final sales. In addition, private final demand would
be restrained a bit by the tighter terms and conditions
that were now imposed by many types of lenders and
by the anticipated waning of positive wealth effects
stemming from earlier increases in equity prices.
Pressures on labor resources were likely to ease
somewhat as the expansion of economic activity
moderated, but inflation was projected to rise considerably over the year ahead in association with a
partial reversal of the decline in energy prices this
year.
In the Committee's discussion of current and prospective economic developments, members observed
that indications of some moderation in the pace of the
economic expansion were still quite limited, but they
generally agreed that the economy appeared to be
headed toward slower growth. Relatively tight profit
margins and less ebullient growth in wealth were
among the factors expected to be damping invest-
Minutes of the Federal Open Market Committee
ment and consumption. In addition, even apart from
the possibility of further financial contagion in Latin
America, the weakness in foreign economies continued to be seen as a persistent source of restraint on
demand in a number of domestic sectors, notably
manufacturing, agriculture, and some extractive businesses. Although the financial markets had improved
substantially in recent weeks, overall credit conditions were still relatively unsettled and a possible
reintensification of difficulties in credit markets constituted an important downside risk to the expansion.
The members recognized that not all the risks were in
one direction, however. The economy had demonstrated remarkable resilience and strength over recent
years, and in the view of some members the rapid
growth of liquidity and bank credit suggested that
financial conditions were not excessively tight. With
regard to the outlook for inflation, members noted
that while statistical and anecdotal information
pointed to persistently tight labor markets in much of
the nation, price inflation remained subdued. Indeed,
even though the recent evidence relating to prices
was somewhat mixed, several broad measures of
prices suggested that inflation might be on a declining trend.
In the course of the Committee's discussion, the
members gave considerable attention to recent financial developments and their implications for the economic outlook. Financial markets clearly had calmed
markedly since the System's easing actions in midOctober, though they were still atypically volatile.
Risk spreads had narrowed substantially and other
measures of financial market performance also suggested that risk aversion and the related desire for
liquidity had diminished appreciably. Markets for
new issues had reopened for many borrowers, and
stock market prices had posted large gains. Nonetheless, strains and weaknesses in financial markets had
not disappeared—many risk spreads were still at
unusually high levels—and the markets remained
quite sensitive to unanticipated developments. Members also noted that the improvement in debt markets
appeared to have come to a halt most recently and
that renewed strains had emerged in some short-term
debt markets, though the latter probably were related
in large measure to concerns about year-end pressures in the money markets. Indeed, efforts by lenders and borrowers to position for year-end financial
statements were likely to contribute considerably
to keeping market conditions unsettled over coming
weeks. Lending activity at banks had increased
sharply in recent months as many borrowers found
other sources of funds less receptive or unavailable
and turned to backup lines for credit, but banks
119
also had tightened their credit terms and standards
for most new loans and lines of credit. As a result,
financing generally had become less available and
more expensive for higher-risk business borrowers.
In light of these developments, members believed
that the continuing fragility of financial markets and
the increased scrutiny of the credit quality of borrowers, though the latter was in some respects a welcome
development, posed a considerable downside risk to
the expansion. The very recent behavior of equity
prices was difficult to explain satisfactorily, and
potential movements in those prices posed risks on
both sides of the most likely forecast: A future substantial increase would bolster wealth and spending,
but a sharp decline also could not be ruled out—
especially if, as seemed quite possible, added
increases in prices were not supported by robust
increases in profits.
Foreign economic and financial developments were
another important source of downside risk and uncertainty. The economic and financial turmoil in Asia
had spread to numerous other nations around the
world and to an extent to the United States. While
economic weakness in many U.S. trading partners
likely would continue to have adverse effects on net
U.S. exports, the potential extent of such weakness
was subject to considerable uncertainty as were the
associated repercussions on financial markets. As
they had at previous meetings, members referred to
numerous anecdotal reports of heightened competition from foreign producers that was curbing the
sales of many domestic manufacturers, notably in the
steel industry, and in some other industries and agriculture. Moreover, the low level of world oil prices,
which appeared to be importantly associated with
diminished demand from Asian countries, was retarding production and reducing revenues in the U.S.
energy and related industries. On the positive side,
members commented that economic and financial
conditions appeared to have stabilized or improved a
bit in a number of Asian nations, though the recession in Japan showed little evidence of coming to an
end, and the outlook for Brazil seemed a little more
promising. However, economic and financial conditions in Brazil and a number of other countries
remained very fragile. The recent depreciation of the
dollar, while perhaps putting some upward pressure
on prices, would damp the deterioration in net U.S.
exports.
In their review of recent and prospective developments across the nation and in key sectors of the
economy, members referred to scattered indications
of some slowing in private domestic final demands.
In the important consumer sector, however, evidence
120
Federal Reserve Bulletin • February 1999
of weakening growth in expenditures was quite limited. The most recent anecdotal reports pointed to
solid growth in most though not all regions of the
country, and retail sales posted a strong advance in
October. Moreover, consumer sentiment remained at
a high level, albeit below its peak earlier in the year
according to a recent survey. Members commented,
however, that the more moderate growth in employment and incomes experienced recently likely would
persist and should result in reduced gains in consumer expenditures next year, but they also noted that
the extent of the deceleration was subject to considerable uncertainty. Some members referred to reports
from contacts in the retailing industry who expressed
some concern about the potential for weaker retail
sales after the holiday season. A significant factor
bearing on consumer spending would be the performance of the stock market. The impetus from the
wealth effects of rapidly rising share prices would
wane if such prices were to stabilize near current
levels.
With regard to business fixed investment, anecdotal evidence was accumulating that many business
firms, notably in manufacturing, were scaling back
their planned capital outlays for the year ahead. Factors contributing to the prospective deceleration in
business capital expenditures included a weaker trend
in profits over the past several quarters, a related
deterioration in business cash flows, and a large
buildup in capacity over the course of recent years.
Members also referred to indications of curtailed
availability and more costly financing for some businesses, notably for relatively speculative construction
projects. A number of members observed that the
latter was a healthy development in that it would tend
to hold down overbuilding in some areas. Overall,
capital expenditures would undoubtedly recover from
their slight decline during the summer months, but
the outlook was for growth next year at a pace well
below that experienced for an extended period before
mid-1998. Housing construction was expected to
remain at a high level, buttressed by attractive terms
on new home mortgages, but housing activity
appeared to have peaked or declined slightly in some
regions.
The rapid buildup in inventories during the third
quarter was not likely to continue, but the timing and
extent of the expected moderation were largely
unpredictable. It was noted in this regard that while
inventories appeared to have risen to uncomfortable
levels in some industries, there was no evidence of a
general inventory overhang. Looking ahead, the projected slowing in the growth of final sales, including
the effects of weak export markets, likely would
reinforce business efforts to bring the growth of their
inventories into better alignment with that of their
sales, and such a development should contribute to
the projected slowing in overall economic activity in
coming quarters. It was unclear at this point to what
extent year 2000 concerns might stimulate extra
inventory investment prior to the end of 1999.
In their review of developments bearing on the
outlook for inflation, members commented that labor
markets remained exceptionally tight, though there
was little evidence that they had tightened further in
recent weeks. Employers were continuing to resist
pressures to grant unusually large wage increases,
and the persistence of vigorous competition, including that from Asian imports, was preventing most
business firms from passing cost increases through to
prices. Indeed, the declining trend in profits in recent
quarters suggested that many firms were absorbing
some of their rising labor costs to the extent that the
latter were not offset by improvements in productivity. Looking ahead, slower growth in economic activity would tend to hold down pressures on wages and
prices during 1999 and imports from Asian and other
depressed economies would continue to generate
intense competition in many markets; but labor markets remained tight, energy and commodity prices
could well turn up after substantial declines, and the
recent depreciation of the dollar would lessen pressures from foreign competition. A number of members expected that, on balance, inflation might be less
favorable next year, though any deterioration in
underlying trends should be relatively limited; others
anticipated little change in and possibly some further
ebbing of price inflation, extending the subdued
behavior of a number of comprehensive measures of
prices.
In the Committee's discussion of policy for the
intermeeting period ahead, nearly all the members
indicated that they could accept a proposal to reduce
the federal funds rate by a further 25 basis points to
an average of 43A percent. This policy decision was
viewed as a close call by several members. While the
growth of the economy was expected to slow appreciably over the year ahead, the expansion currently
displayed only modest signs of moderating from what
seemed to be an unsustainable pace. Moreover, many
members saw some risk that an easing move at this
point might trigger a strong further advance in stock
market prices that would not be justified on the basis
of likely future earnings and could therefore lead to
a relatively sharp and disruptive market adjustment
later. The members were more concerned, however,
about the risks stemming from the still sensitive
state of financial markets, and in that regard many
Minutes of the Federal Open Market Committee
believed that a prompt policy easing would help to
ensure against a resurgence of severe financial strains.
A further easing move would complete the policy
adjustment to the changed economic and financial
climate that had emerged since midsummer and
would provide some insurance against any unexpectedly severe weakening of the expansion. Most members saw little risk that a modest easing would ignite
inflationary pressures in the economy, given the subdued behavior of inflation and their outlook for economic activity. Moreover, the easing could readily be
reversed if unexpected circumstances should call for
such an action. In this view, the risks of inaction were
greater in terms of the potential financial consequences and also could materialize much sooner than
the risks of stimulating greater inflation through the
slight easing that was contemplated.
Some members indicated that in light of continued
robust economic growth, tight labor markets, and
improving financial conditions they had a preference
for awaiting further developments that might provide
a stronger basis for an easing action. Some of these
members expressed concern that easier reserve conditions would accommodate a step-up in monetary
growth that was already quite rapid, with potentially
inflationary consequences later. Nonetheless, all but
one of these members could endorse the decision to
ease, given the evident downside risks in the international situation, financial market uncertainty, the likelihood that inflation would still be quite low, and
the possibility of reversing the action reasonably
promptly should circumstances warrant.
Given its decision to ease policy, the Committee
favored a change to symmetry from the asymmetry
toward ease in its recent directives. A symmetrical
directive was now felt to be appropriate in light of the
Committee's expectation that further easing was not
likely to be needed over the months ahead unless
ongoing developments pointed to a more substantial
decline in the growth of economic activity or further
ebbing of inflation than was currently anticipated.
The members recognized that the possible emergence
of severe year-end pressures in the money market
might require some temporary easing in reserve conditions, but such a development did not seem to have
a high probability and could in any event be readily
and properly accommodated regardless of the bias in
the directive.
At the conclusion of the Committee's discussion,
all except one member supported a directive that
called for conditions in reserve markets that would be
consistent with a slight decrease in the federal funds
rate to an average of about 43/4 percent. These members also accepted a proposal to remove the bias
121
toward easing that had been adopted at the previous
meeting. Accordingly, in the context of the Committee's long-run objectives for price stability and sustainable economic growth, and giving careful consideration to economic, financial, and monetary
developments, the Committee decided that a slightly
higher federal funds rate or a slightly lower federal
funds rate would be acceptable during the the intermeeting period. A staff analysis prepared for this
meeting suggested that the reserve conditions contemplated by the Committee were likely to be consistent with some moderation in the growth of M2 and
M3 over the months ahead.
The Federal Reserve Bank of New York was authorized and directed, until instructed otherwise by the
Committee, to execute transactions in the System
Account in accordance with the following domestic
policy directive:
The information reviewed at this meeting suggests some
moderation in the expansion of economic activity from a
brisk pace during the summer months. Growth in nonfarm
payroll employment slowed appreciably in September and
October; the civilian unemployment rate remained near
4'/2 percent. Industrial production has declined slightly in
recent months. Business inventory accumulation was sizable in the third quarter, and stock-sales ratios rose to
uncomfortable levels in some sectors strongly affected by
the nation's trade deficit. The nominal deficit on U.S. trade
in goods and services widened somewhat in July-August
from its second-quarter average. Total retail sales rose
sharply in October after increasing only moderately in
August and September. Residential sales and building starts
have remained quite strong, but below recent peaks. Available indicators point to a pickup in business capital spending after a lull in the third quarter, owing in part to a
recovery from the summer strike in the motor vehicle
industry. Trends in various measures of wages and prices
have been mixed in recent months.
Most market interest rates have risen on balance since
the meeting on September 29, though yields on the bonds
of lower-rated firms have declined. The Board of Governors approved a reduction in the discount rate from 5 to
43/4 percent on October 15. Share prices in U.S. and global
equity markets have remained volatile but have posted
sizable gains on balance over the intermeeting period. In
foreign exchange markets, the trade-weighted value of the
dollar declined moderately over the period in relation to
other major currencies; it also fell somewhat in terms of an
index of the currencies of other countries that are important
trading partners of the United States.
M2 and M3 have posted very large gains in recent
months, reflecting the effects of recent System easing
actions on market interest rates and shifts of funds by
households out of investments in equities and lower-rated
corporate debt. For the year through October, both aggregates rose at rates well above the Committee's ranges for
the year. Expansion of total domestic nonfinancial debt has
moderated slightly in recent months after a pickup earlier
in the year.
122
Federal Reserve Bulletin • February 1999
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 reaffirmed at its meeting
on June 30-July 1 the ranges it had established in February for growth of M2 and M3 of 1 to 5 percent and 2 to
6 percent respectively, measured from the fourth quarter of
1997 to the fourth quarter of 1998. The range for growth of
total domestic nonfinancial debt was maintained at 3 to
7 percent for the year. For 1999, the Committee agreed on
a tentative basis to set the same ranges for growth of the
monetary aggregates and debt, measured from the fourth
quarter of 1998 to the fourth quarter of 1999. 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
andfinancialmarkets.
In the implementation of policy for the immediate future,
the Committee seeks conditions in reserve markets consistent with decreasing the federal funds rate to an average of
around 43A percent. In the context of the Committee's
long-run objectives for price stability and sustainable economic growth, and giving careful consideration to economic, financial, and monetary developments, a slightly
higher federal funds rate or a slightly lower federal funds
rate would be acceptable in the intermeeting period. The
contemplated reserve conditions are expected to be consistent with some moderation in the growth in M2 and M3
over coming months.
Votes for this action: Messrs. Greenspan, McDonough,
Ferguson, Gramlich, Hoenig, Kelley, Meyer, Ms. Minehan, Mr. Poole, and Ms. Rivlin. Vote against this action:
Mr. Jordan.
Mr. Jordan dissented because he believed that the
two recent reductions in the federal funds rate were
sufficient responses to the stresses in financial markets that had emerged suddenly in late August. An
additional rate reduction risked fueling an unsustainably strong growth rate of domestic demand. He
expressed concern that the excessively rapid rates of
growth of the monetary and credit aggregates were
inconsistent with continued low inflation. Moreover,
any further monetary expansion in response to economic weakness abroad could ultimately have a disrupting influence on domestic prosperity if policy
were forced to reverse course at a later date to defend
the purchasing power of the dollar.
RENEWAL OF RECIPROCAL CURRENCY
ARRANGEMENTS WITH THE BANKS
OF CANADA AND MEXICO
The Committee voted unanimously to reauthorize
Federal Reserve participation in the North American
Framework Agreement, established in 1994, and
the associated bilateral reciprocal currency ("swap")
arrangements with the Bank of Canada and the Bank
of Mexico. These arrangements, which predated the
North American Framework Agreement, were linked
into a trilateral facility in connection with the establishment of the North American Financial Group in
1994 to facilitate consultation and cooperation among
the three countries in the area of macroeconomic
policy as an outgrowth of the increasing integration
of those economies expected to result from the North
American Free Trade Agreement.
Owing to the formation of the European Central
Bank and in light of 15 years of disuse, the bilateral
swap arrangements of the Federal Reserve with the
Austrian National Bank, the National Bank of Belgium, the Bank of France, the German Federal Bank,
the Bank of Italy, and the Netherlands Bank were
jointly deemed no longer to be necessary in view of
the well established present-day arrangements for
international monetary cooperation. Accordingly, it
was agreed by all the bilateral parties to allow them
to lapse. Similarly, it was jointly agreed to allow the
bilateral swap arrangements between the Federal
Reserve and the National Bank of Denmark, the
Bank of England, the Bank of Japan, the Bank of
Norway, the Bank of Sweden, the Swiss National
Bank, and the Bank for International Settlements to
lapse in light of their disuse and present day arrangements for international monetary cooperation.
AUTHORIZATION FOR DOMESTIC OPEN
MARKET OPERATIONS
On the recommendation of the Manager, the Committee voted unanimously to amend the authorization for
domestic open market operations to extend the maximum maturity of System repurchase agreements from
15 calendar days to 60 calendar days. The purpose of
the expanded authority was to enhance the flexibility
of the Manager in meeting reserve-supplying objectives during periods of pronounced seasonal needs,
notably those associated with the year-end. Subject to
the Committee's approval, the Manager would initiate the System's use of extended-term repurchase
agreements ahead of the coming year-end, and he
anticipated that such use could prove to be especially
advantageous in late 1999 to the extent that year 2000
concerns generated accentuated seasonal demand for
currency. In addition, the availability of the extended
funding could help to allay concerns in the federal
funds market about the cost of financing during
periods of peak seasonal pressures, with favorable
effects on the market's functioning.
Minutes of the Federal Open Market Committee
Accordingly, effective November 17, 1998, paragraphs l(b) and 3 of the authorization for domestic
open market operations were amended to read as
follows:
1. The Federal Open Market Committee authorizes and
directs the Federal Reserve Bank of New York, to the
extent necessary to carry out the most recent domestic
policy directive adopted at a meeting of the Committee:
(b) To buy U.S. Government securities, obligations
that are direct obligations of, or fully guaranteed as to
principal and interest by, any agency of the United States,
from dealers for the account of the Federal Reserve Bank
of New York under agreements for repurchase of such
securities or obligations in 60 calendar days or less, at rates
that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, after
applying reasonable limitations on the volume of agreements with individual dealers; provided that in the event
Government securities or agency issues covered by any
such agreement are not repurchased by the dealer pursuant
to the agreement or a renewal thereof, they shall be sold in
the market or transferred to the System Open Market
Account.
3. In order to ensure the effective conduct of open
market operations, while assisting in the provision of short-
123
term investments for foreign and international accounts
maintained at the Federal Reserve Bank of New York, the
Federal Open Market Committee authorizes and directs the
Federal Reserve Bank of New York (a) for System Open
Market Account, to sell U.S. Government securities to such
foreign and international accounts on the bases set forth in
paragraph l(a) under agreements providing for the resale
by such accounts of those securities within 60 calendar
days on terms comparable to those available on such
transactions in the market; and (b) for New York Bank
account, when appropriate, to undertake with dealers, subject to the conditions imposed on purchases and sales of
securities in paragraph l(b), repurchase agreements in U.S.
Government and agency securities, and to arrange corresponding sale and repurchase agreements between its own
account and foreign and international accounts maintained
at the Bank. Transactions undertaken with such accounts
under the provisions of this paragraph may provide for a
service fee when appropriate.
It was agreed that the next meeting of the Committee would be held on Tuesday, December 22, 1998.
The meeting adjourned at 1:25 p.m.
Normand Bernard
Deputy Secretary
125
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
C
The Board of Governors is amending 12 C.F.R. Part 203,
its Regulation C (Home Mortgage Disclosure). The Board
is required to adjust annually the asset-size exemption
threshold for depository institutions based on the annual
percentage change in the Consumer Price Index for Urban
Wage Earners and Clerical Workers. The adjustment reflects changes for the twelve-month period ending in
November. During this period, the index increased by
1.3 percent; as a result, the threshold remains at
$29 million. Thus, depository institutions with assets of
$29 million or less as of December 31, 1998, are exempt
from data collection in 1999.
Effective January 1, 1999, 12 C.F.R. Part 203 is amended
as follows:
Part 203—Home Mortgage Disclosure
tion C)
(Regula-
ORDERS ISSUED UNDER BANK HOLDING
ACT
COMPANY
Orders Issued Under Section 3 of the Bank Holding
Company Act
Cooper Life Sciences, Inc.
New York, New York
Greater American Finance Group, Inc.
New York, New York
Order Approving the Formation of Bank Holding
Companies and Acquisition of a Bank
Cooper Life Sciences, Inc. ("CLS") and its wholly owned
subsidiary. Greater American Finance Group, Inc.
("GAFG") (collectively, "Applicants"), have requested
1. The authority citation for Part 203 continues to read as
the Board's approval under section (3)(a)(l) of the Bank
follows:
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(l)) to become bank holding companies by acquiring control of up to 100 percent of the voting shares of
Authority: 12 U.S.C. 2801-2810.
The Berkshire Bank, New York, New York ("Berkshire").
Notice of the proposal, affording interested persons an
2. In Supplement I to Part 203, under Section 203.3—
opportunity to submit comments, has been published (63
Exempt Institutions, under 3(a) Exemption based on
Federal Register 43,950 (1998)). The time for filing comlocation, asset size, or number of home-purchase loans, ments has expired, and the Board has considered the proparagraph 2 is revised to read as follows:
posal and all comments received in light of the factors set
forth in section 3 of the BHC Act.
Applicants, although previously engaged directly and
Supplement I to Part 203—Staff Commentary
indirectly in various activities, have no current business
operations. CLS has an investment, however, that does not
* * * * *
conform to the requirements of section 4 of the BHC Act
(12 U.S.C. § 1843), which sets forth the investments and
activities that are permissible for bank holding companies.
Applicants have committed to conform their current investments to the requirements of the BHC Act within two years
Section 203.3—Exempt Institutions
of the date of consummation of the proposal, including by
divestiture if necessary, in accordance with section 4(a)(2)
3 (a) Exemption based on location, asset size, or number of
of the BHC Act (12 U.S.C. § 1843(a)(2)).
home-purchase loans.
In reviewing the proposal under the BHC Act, the Board
has considered the financial and managerial resources and
future prospects of the companies and bank involved, the
2. Adjustment of exemption threshold for depository insti- convenience and needs of the communities to be served,
and certain supervisory factors. The Board has reviewed
tutions. For data collection in 1999, the asset-size exthese factors in light of the facts of record, including
emption threshold is $29 million. Depository institusupervisory reports of examination assessing the financial
tions with assets at or below $29 million are exempt
and managerial resources of Berkshire, discussions with
from collecting data for 1999.
126 Federal Reserve Bulletin • February 1999
appropriate federal and state banking supervisors and other
appropriate federal agencies, and information provided by
Applicants. The Board notes that Applicants would not
incur or assume any debt in connection with the proposal,
and that Berkshire would remain well capitalized after
consummation of the proposal. Based on all the facts of
record in this case, the Board concludes that the financial
and managerial resources and future prospects of Applicants and Berkshire and other supervisory factors are consistent with approval of the proposal.
In considering the convenience and needs factor, the
Board has reviewed the record of Berkshire under the
Community Reinvestment Act ("CRA").1 The Board notes
that Applicants intend to continue the CRA program of
Berkshire and do not intend to make any material changes
in the products and services provided by Berkshire. The
Board has evaluated the convenience and needs factor in
light of examinations of the CRA performance record of
Berkshire by the Federal Deposit Insurance Corporation
("FDIC"), the institution's appropriate federal banking
supervisor, and the New York State Banking Department
("NYSBD"). Berkshire received "satisfactory" ratings
from the FDIC and the NYSBD at the most recent examinations of its performance under the CRA. Based on all the
facts of record, the Board concludes that convenience and
needs considerations, including the CRA performance
record of the relevant institution, are consistent with approval of the proposal.
As required under the BHC Act, the Board also considered the competitive effects of the proposal. The proposed
transaction is a formation of bank holding companies that
will control only one bank and, therefore, does not involve
competing banking institutions. Accordingly, the Board
concludes that the proposal would not have a significantly
adverse effect on competition or on the concentration of
banking resources in any relevant banking market. Based
on all the facts of record, the Board concludes that competitive considerations are consistent with approval.
Based on all the facts of record, the Board has determined that this application should be, and hereby is, approved. The Board's approval is specifically conditioned
on compliance by Applicants with all the commitments
made in connection with this proposal. The commitments
and conditions relied on by the Board in reaching its
decision are deemed to be conditions imposed in writing
by the Board in connection with its findings and decisions
and, as such, may be enforced in proceedings under applicable law.
The proposed acquisition shall not be consummated
before the fifteenth calendar day after the effective date of
this order, or later than three months after the effective date
of this order, unless such period is extended by the Board
or by the Federal Reserve Bank of New York, acting
pursuant to delegated authority.
By order of the Board of Governors, effective December 14. 1998.
1. 12 U.S.C. §2901 etseq.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Meyer, Ferguson, and Gramlich. Absent and not voting:
Governor Kelley.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Sulphur Springs Bancshares, Inc.
Sulphur Springs, Texas
Sulphur Springs Delaware Financial Corporation
Dover, Delaware
Order Approving the Acquisition of a Bank
Sulphur Springs Bancshares, Inc. and Sulphur Springs
Delaware Financial Corporation (collectively "Sulphur
Springs"), bank holding companies within the meaning of
the Bank Holding Company Act ("BHC Act"), have requested approval by the Board under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire First National Bank,
Sulphur Springs, Texas.1
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 63,476 (1998)). The time for filing comments has expired, and the Board has considered the proposal and all comments received in light of the factors set
forth in section 3 of the BHC Act.
Sulphur Springs is the 158th largest commercial banking
organization in Texas, controlling approximately
$107.7 million in deposits, representing less than 1 percent
of total deposits in commercial banking organizations in
the state ("state deposits").2 First National Bank is the
534th largest commercial banking organization in Texas,
controlling approximately $26.2 million in deposits, representing less than 1 percent of state deposits. On consummation of the proposal, Sulphur Springs would be the 130th
largest commercial banking organization in Texas, controlling approximately $133.9 million in deposits in the state,
representing less than 1 percent of state deposits.
Competitive Considerations
The BHC Act prohibits the Board from approving an
application under section 3 of the BHC Act if the proposal
would result in a monopoly or would be in furtherance of
any attempt to monopolize the business of banking. The
BHC Act also prohibits the Board from approving a proposed combination that would substantially lessen competition or tend to create a monopoly in any relevant banking
market, unless the Board finds that the anticompetitive
effects of the proposal are clearly outweighed in the public
1. Sulphur Springs proposes to merge First National Bank with and
into its subsidiary bank, City National Bank of Sulphur Springs. The
Office of the Comptroller of the Currency ("OCC") has approved the
proposed merger under section 18(c) of the Federal Deposit Insurance
Act (12 U.S.C. § 1828(c)) (the "Bank Merger Act").
2. State deposit data are as of June 30, 1997, and market data are as
of June 30, 1998.
Legal Developments
interest by the probable effect of the proposal in meeting
the convenience and needs of the community to be served.3
Sulphur Springs and First National Bank compete directly in the Hopkins County, Texas, banking market
("Hopkins County banking market"). 4 City National Bank
is the second largest of six depository institutions in the
market, controlling deposits of $86.8 million, representing
26.1 percent of total deposits in depository institutions in
the market ("market deposits"). 5 First National Bank is the
fifth largest depository institution in the market, controlling
deposits of $26.2 million, representing 7.9 percent of market deposits. On consummation of the proposal, City
National Bank would remain the second largest competitor
in the market, controlling deposits of $113 million, representing 34 percent of market deposits. The HerfindahlHirschman Index ("HHI") for the market would increase
by 411 points to 3150.6
Although consummation of the proposal would eliminate some existing competition in a highly concentrated
market, certain factors mitigate the potential anticompetitive effects. The Board has considered as a significant
factor First National Bank's financial condition and its
ability to function as a viable competitor in the market.
First National Bank recently has suffered financial and
managerial difficulties that have prevented it from being an
effective competitor. During the past three years, for example, the deposits of First National Bank have declined, and
First National Bank's parent bank holding company filed
for bankruptcy in 1997. The Board has considered the fact
that First National Bank was offered for sale to numerous
potential purchasers, and that only Sulphur Springs and
one other party submitted bids. The major creditor of First
National Bank's holding company has approved this bid.
The acquisition is expected to result in significant public
benefits by providing additional financial and managerial
resources to the operations of First National Bank.
3. 12 U.S.C. § 1842(c).
4. The Hopkins County banking market comprises Hopkins County.
Texas.
5. In this context, depository institutions include commercial banks,
savings banks and savings associations. Market share data are based
on calculations that include the deposits of thrift institutions at
50 percent. The Board previously has indicated that thrift institutions
have become, or have the potential to become, significant competitors
of commercial banks. See, e.g., Midwest Financial Group, 75 Federal
Reserve Bulletin 386 (1989); National City Corporation, 70 Federal
Reserve Bulletin 743 (1984). Thus, the Board has regularly included
thrift deposits in the calculation of market share on a 50 percent
weighted basis. See, e.g., First Hawaiian Inc., 11 Federal Reserve
Bulletin 52 (\99\).
6. Under Department of Justice Merger Guidelines, 49 Federal
Register 26,823 (1984), a market in which the post-merger HHI is
more than 1800 is considered highly concentrated. The Department of
Justice has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by more than 200 points.
The Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognize the competitive effects of limited-purpose lenders
and other nondepository financial institutions.
127
The Board also has considered that on consummation of
the proposal, the Hopkins County banking market would
continue to be served by four banks and a savings association, including City National Bank. All but one of the
competitors remaining in the market would control more
than 8 percent of market deposits, and the largest banking
competitor would control 41.2 percent of market deposits.
The Department of Justice has conducted a detailed
review of the proposal and has advised the Board that
consummation of the proposal would not likely have a
significantly adverse effect on competition in any relevant
banking market. As noted above, the OCC has reviewed
and approved the proposed merger of City National Bank
and First National Bank under the Bank Merger Act. The
Federal Deposit Insurance Corporation has not objected to
consummation of the proposal.
After carefully reviewing all the facts of record, and for
the reasons discussed in this order, the Board concludes
that consummation of the proposal would not likely result
in any significantly adverse effects on competition or on
the concentration of resources in the Hopkins County banking market or in any other relevant banking market. Accordingly, based on all of the facts of record, the Board has
determined that competitive factors are consistent with
approval of the proposal.
Other Factors Under the BHC Act
The BHC Act also requires the Board, in acting on an
application, to consider the financial and managerial resources and future prospects of the companies and banks
involved in a proposal, the convenience and needs of the
community to be served, and certain other supervisory
factors.
The Board has carefully considered the financial and
managerial resources and future prospects of Sulphur
Springs, City National Bank and First National Bank; the
structure of the proposed transactions; the resources of the
combined organization; and other supervisory factors, in
light of all the facts of record. As part of this consideration,
the Board has reviewed relevant reports of examination
and other supervisory information prepared by the Federal
Reserve Bank of Dallas and other federal financial supervisory agencies.
City National Bank would be well capitalized after its
merger with First National Bank. In addition, Sulphur
Springs would be able to provide additional managerial
and financial resources and has sufficient managerial and
financial resources to address the condition of First
National Bank. Based on these and other facts of record,
the Board concludes that considerations relating to the
financial and managerial resources and future prospects of
Sulphur Springs and its respective subsidiaries and the
other supervisory factors that the Board must consider
under section 3 of the BHC Act weigh in favor of approval
of the proposal.
The Board also has carefully considered the effects of
the proposed acquisition on the convenience and needs of
the community to be served in light of all the facts of
128 Federal Reserve Bulletin • February 1999
record. City National Bank and First National Bank have
satisfactory records of performance under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The
record of this application indicates, moreover, that this
transaction would provide a substantial public benefit by
preventing further deterioration of the financial condition
of First National Bank. Based on all the facts of record,
including the performance records of City National Bank
and First National Bank under the CRA, the Board concludes that convenience and needs considerations are consistent with approval of the proposal.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the application
should be, and hereby is, approved. Approval of the application is specifically conditioned on compliance by
Sulphur Springs and City National Bank with all the commitments made in connection with the proposal and with
the conditions stated or referred to in this order. For purposes of this transaction, the commitments and conditions
referred to in this order shall be deemed to be conditions
imposed in writing by the Board in connection with its
findings and decision and, as such, may be enforced in
proceedings under applicable law.
The proposal shall not be consummated before the fifteenth calendar day after the effective date of this order, or
later than three months after the effective date of this order,
unless such period is extended for good cause by the Board
or by the Federal Reserve Bank of Dallas, acting pursuant
to delegated authority.
By order of the Board of Governors, effective December 16, 1998.
Voting for this action: Chairman Greenspan. Vice Chair Rivlin, and
Governors Kelley, Meyer, Ferguson and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Akron, Ohio ("Summit Bank").1 FirstMerit also has requested the Board's approval under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.24 of
the Board's Regulation Y (12 C.F.R. 225.24) to acquire the
nonbanking subsidiaries of Signal, including First Federal
Savings Bank of New Castle, New Castle, Pennsylvania
("First Federal").2
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (63
Federal Register 56,033 and 60,346 (1998)). The time for
filing comments has expired, and the Board has considered
the proposal and all comments received in light of the
factors set forth in sections 3 and 4 of the BHC Act.
FirstMerit, with total consolidated assets of $6.2 billion,
is the 80th largest commercial banking organization in the
United States, controlling less than 1 percent of total banking assets of insured commercial banks in the United States
("total banking assets").3 FirstMerit operates a subsidiary
bank in Ohio and engages in permissible activities through
its nonbanking subsidiaries.
Signal, with total consolidated assets of $1.9 billion, is
the 153rd largest commercial banking organization in the
United States, controlling less than 1 percent of total banking assets. Signal operates two subsidiary banks in Ohio
and engages in permissible activities through its nonbanking subsidiaries. On consummation of the proposal, FirstMerit would become the 67th largest commercial banking
institution in the United States, with total consolidated
assets of approximately $8.1 billion, representing less than
1 percent of total banking assets.
FirstMerit is the seventh largest depository institution in
Ohio, controlling $5.3 billion in deposits, representing
approximately 3.6 percent of total deposits in insured depository institutions in the state ("state deposits").4 Signal
is the 21st largest depository institution in Ohio, controlling $733 million of deposits, representing less than
1 percent of state deposits. On consummation of the proposal, FirstMerit would remain the seventh largest insured
depository institution in Ohio, controlling approximately
$6 billion in deposits, representing approximately 4.1 percent of state deposits.
Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
FirstMerit Corporation
Akron, Ohio
Order Approving the Acquisition of a Bank Holding
Company
FirstMerit Corporation ("FirstMerit"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842)
to acquire Signal Corp., Wooster, Ohio ("Signal"), and its
wholly owned subsidiary banks, Signal Bank, N.A.,
Wooster, Ohio ("Signal Bank"), and Summit Bank, N.A.,
1. FirstMerit proposes to merge Signal Bank and Summit Bank into
FirstMerit's wholly owned subsidiary bank, FirstMerit Bank, N.A.
("FMB"). In addition, FirstMerit and Signal have entered into a stock
purchase option that entitles FirstMerit to purchase up to 19.9 percent
of Signal's capital stock if certain events occur. The option would
expire on consummation of the proposal.
2. These nonbanking activities are discussed in Appendix A. FirstMerit also has requested the Board's approval to hold First Federal as
a bank as part of FirstMerit's proposal to merge First Federal into
FMB.
3. Asset data and national rankings based on asset size are as of
June 30, 1998.
4. In this context, depository institutions include commercial banks,
savings banks, and savings associations. Deposit data and state rankings are as of June 30, 1997.
Legal Developments
Competitive Considerations
The BHC Act prohibits the Board from approving an
application under section 3 of the BHC Act if the proposal
would result in a monopoly or would be in furtherance of
any attempt to monopolize the business of banking. The
BHC Act also prohibits the Board from approving a proposed combination that would substantially lessen competition or tend to create a monopoly in any relevant banking
market, unless the Board finds that the anticompetitive
effects of the proposal are clearly outweighed in the public
interest by the probable effect of the proposal in meeting
the convenience and needs of the community to be served.5
FirstMerit and Signal compete in the Akron, Cleveland,
and Wooster, Ohio, banking markets.6 The Board has carefully reviewed the competitive effects of the proposal in
each of these markets in light of all the facts of record,
including the characteristics of the markets and the projected increase in the concentration of total deposits in
insured depository institutions in these markets ("market
deposits") 7 as measured by the Herfindahl-Hirschman Index ("HHI") under the Department of Justice Merger
Guidelines ("DOJ Guidelines"). 8 The Board also has carefully examined the number of competitors that would remain in each of the banking markets after consummation
of the proposal. Consummation of the proposal would be
consistent with the DOJ Guidelines and prior Board decisions in the Akron and Cleveland banking markets.9
Wooster Banking Market. FirstMerit is the fifth largest of
11 depository institutions in the Wooster banking market,
controling deposits of $77.8 million, representing approximately 7.4 percent of market deposits. Signal is the largest
depository institution in the Wooster banking market, controlling deposits of $266.6 million, representing approximately 25.3 percent of market deposits. After consummation of the proposal, FirstMerit would become the largest
5. 12U.S.C. § 1842(c)(l).
6. These banking markets are described in Appendix B.
7. Market share data are based on calculations that include the
deposits of thrift institutions weighted at 50 percent. The Board
previously has indicated that thrift institutions have become, or have
the potential to become, significant competitors of commercial banks.
See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 143
(1984). Thus, the Board regularly has included thrift deposits in the
calculation of market share on a 50-percent weighted basis. See, e.g.,
First Hawaiian Inc., 11 Federal Reserve Bulletin 52 (1991).
8. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a
market in which the post-merger HHI is less than 1000 is considered
to be unconcentrated, and a market in which the post-merger HHI is
between 1000 and 1800 is considered to be moderately concentrated.
The Department of Justice ("DOJ") has informed the Board that a
bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anticompetitive effects) unless the
post-merger HHI is at least 1800 and the merger or acquisition
increases the HHI by at least 200 points. The DOJ has stated that the
higher than normal HHI thresholds for screening bank mergers or
acquisitions for anticompetitive effects implicitly recognize the competitive effects of limited-purpose lenders and other nondepository
financial institutions.
9. Market data for these banking markets after consummation of the
proposal are described in Appendix C.
129
depository institution in the market, controlling approximately 32.7 percent of market deposits. The HHI would
increase 374 points to 2029.
Consummation of the proposal would exceed the DOJ
Guidelines in the Wooster banking market. As the Board
has indicated in previous cases, in a market in which the
competitive effects of a proposal exceed the DOJ Guidelines, the Board will consider whether other factors tend to
mitigate the competitive effects of the proposal. The number and strength of factors necessary to mitigate the competitive effects of a proposal depend on the level of market
concentration and size of the increase in market concentration.10
Wayne County, most of which is in the Wooster banking
market, has characteristics that make it attractive for entry
when compared to the other 48 non-Metropolitan Statistical Area counties ("non-MSA counties") in Ohio." For
example, Wayne County ranks first among Ohio's nonMSA counties in population and total personal income and
is above the average of other non-MSA Ohio counties with
respect to percentage increases in population and per capita
income. Wayne County also ranks first among non-MSA
counties in Ohio in total deposits. The attractiveness of the
market appears to be confirmed by the de now entry of one
commercial bank into the market since June 1997.
Ten depository institutions, including FirstMerit, would
remain in the Wooster banking market after consummation
of the proposal. The nine competitors of FirstMerit would
include one large multi state banking organization and three
regional banking organizations, each of which has a significant market share. The second, third, and fourth largest
institutions in the market would have a combined share of
46 percent of market deposits.
Views of Other Agencies and Conclusions. The Department of Justice has advised the Board that consummation
of the proposal would not likely have a significantly adverse effect on competition in any relevant market. The
Office of the Comptroller of the Currency and the Federal
Deposit Insurance Corporation have not objected to consummation of the proposal.
After carefully reviewing all the facts of record and for
the reasons discussed in this order and appendices, the
Board concludes that consummation of the proposal would
not likely result in a significantly adverse effect on competition or on the concentration of banking resources in any
of the three banking markets in which FirstMerit and
Signal both compete or in any other relevant banking
market. Accordingly, based on all the facts of record, the
Board has determined that competitive factors are consistent with approval of the proposal.
10. See First Union Corporation, 84 Federal Reserve Bulletin 489
(1998); NationsBank Corporation, 84 Federal Reserve Bulletin 129
(1998).
11. As noted in Appendix B, the Wooster banking market consists
of Wayne County, which is a non-MSA county, excluding two townships. Because data regarding population, income, and deposit levels
are collected for each non-MSA county in Ohio rather than for each
banking market, the market characteristics of Wayne County were
compared with other non-MSA counties in Ohio.
130 Federal Reserve Bulletin • February 1999
Other Factors Under the BHC Act
The BHC Act also requires the Board, in acting on an
application, to consider the financial and managerial resources and future prospects of the companies and banks
involved in a proposal, the convenience and needs of the
communities to be served, and certain other supervisory
factors.
A. Financial, Managerial, and Other Supervisory Factors
The Board has carefully considered the financial and managerial resources and future prospects of FirstMerit, Signal,
and their respective subsidiary banks and other supervisory
factors in light of all the facts of record. As part of its
consideration, the Board has reviewed relevant reports of
examination and other supervisory information prepared
by the Reserve Banks and other federal agencies. The
Board notes that the bank holding companies and their
subsidiary banks currently are well capitalized and are
expected to remain so after consummation of the proposal.
The Board also has considered other aspects of the
financial condition and resources of the two organizations,
the structure of the proposed transaction, and the managerial resources of each of the entities and the combined
organization. Based on these and other facts of record, the
Board concludes that considerations relating to the financial and managerial resources and future prospects of FirstMerit, Signal, and their respective subsidiaries are consistent with approval of the proposal, as are the other
supervisory factors that the Board must consider under
section 3 of the BHC Act.
B. Convenience and Needs Considerations
The Board has carefully considered the effect of the proposed acquisition on the convenience and needs of the
communities to be served in light of all the facts of record.
All the subsidiary depository institutions of FirstMerit and
Signal received "outstanding" or "satisfactory" ratings
from their appropriate federal supervisors at the most recent examinations of their performance under the Community Reinvestment Act ("CRA").' 2 Based on all the facts
of record, including the CRA performance records of the
subsidiary banks of FirstMerit and Signal, the Board concludes that convenience and needs considerations are consistent with approval of the proposal.
Nonbanking Activities
FirstMerit also has filed a notice, under section 4(c)(8) of
the BHC Act to acquire the nonbanking subsidiaries of
Signal, including First Federal, and thereby engage in
extending credit and servicing loans, activities related to
extending credit, operating a savings association, financial
and investment advisory activities, and securities broker-
12. 12U.S.C. § 2901 etseq.
age activities. The Board has determined by regulation that
each of these activities is closely related to banking for
purposes of section 4(c)(8) of the BHC Act.13 FirstMerit
has stated that, following consummation of the proposal, it
will conduct these activities in accordance with the limitations set forth in Regulation Y and the Board's orders and
interpretations governing each of these activities.
In order to approve a proposal under section 4(c)(8) of
the BHC Act, the Board also must determine that the
proposed activities are a proper incident to banking, that is,
the proposal must "reasonably be expected to produce
benefits to the public . . . that outweigh possible adverse
effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices." 14 As part of its evaluation of
these factors, the Board considers the financial condition
and managerial resources of the notificant and its subsidiaries, including the companies to be acquired, and the effect
of the proposed transaction on these resources.15 For the
reasons noted above and based on all the facts of record,
the Board has concluded that financial and managerial
considerations are consistent with approval.
The Board also has considered the competitive effects of
the proposed acquisition by FirstMerit of the nonbanking
subsidiaries of Signal. The Board notes that the markets in
which the nonbanking subsidiaries of FirstMerit and Signal
both compete are national and regional, and numerous
competitors would remain in each of those markets. Based
on all the facts of record, the Board concludes that it is
unlikely that significantly adverse competitive effects
would result from the nonbanking acquisitions proposed in
this transaction.
FirstMerit has indicated that after consummation of the
merger proposal, it would be able to provide a greater
range of products and services more efficiently through an
enhanced delivery system to the current and future customers of FirstMerit and Signal. In addition, as the Board has
previously noted, there are public benefits to be derived
from permitting capital markets to operate so that bank
holding companies can make potentially profitable investments in nonbanking companies and from permitting banking organizations to allocate their resources in the manner
they consider to be most efficient when such investments
and actions are consistent, as in this case, with the relevant
considerations under the BHC Act.16
The Board concludes that the conduct of the proposed
activities within the framework of Regulation Y and prior
Board precedent is not likely to result in adverse effects,
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound banking practices, that would outweigh the public benefits of
the proposal, such as increased customer convenience and
13. See 12 C.F.R. 225.28(b)(l), (2), (4)(ii), (6), (7)(i).
14. 12U.S.C. § 1843(c)(8).
15. See 12 C.F.R. 225.26.
16. See, e.g., Bane One Corporation, 84 Federal Reserve Bulletin
553 (1998); First Union Corporation, 84 Federal Reserve Bulletin
489 (1998).
Legal Developments
gains in efficiency. Accordingly, based on all the facts of
record, the Board has determined that the balance of public
benefits that the Board must consider under the proper
incident to banking standard of section 4(c)(8) of the BHC
Act is favorable and consistent with approval of First
Merit's notice.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the application and
notice should be, and hereby are, approved. Approval of
the application and notice is specifically conditioned on
compliance by FirstMerit with all the commitments made
in connection with the proposal. The Board's determination on the nonbanking activities also is subject to all the
terms and conditions set forth in Regulation Y, including
those in sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and
225.25(c)), and to the Board's authority to require such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the Board
finds necessary to ensure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the Board's
regulations and orders thereunder. For purposes of this
transaction, the commitments and conditions referred to
above are conditions imposed in writing by the Board in
connection with its findings and decision and, as such, may
be enforced in proceedings under applicable law.
The acquisition of Signal's subsidiary banks shall not be
consummated before the fifteenth calendar day after the
effective date of this order, and the proposal shall not be
consummated later than three months after the effective
date of this order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 7, 1998.
Voting for this action: Chairman Greenspan and Governors Kelley.
Meyer, and Gramlich. Absent and not voting: Vice Chair Rivlin and
Governor Ferguson.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Appendix A
Nonbanking Subsidiaries of Signal and Their Activities
(1) Extending credit and servicing loans in accordance
with section 225.28(b)(l) of the Board's Regulation Y
(12 C.F.R. 225.28(b)(l)) through Mobile Consultants,
Inc., Alliance, Ohio ("MCi").
131
(12 C.F.R. 225.28(b)(4)(ii)) through First Federal Savings Bank, New Castle, Pennsylvania.
(4) Engaging in financial and investment advisory activities in accordance with section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6)) through Summit Bane
Investments Corp., Akron, Ohio ("SBI").
(5) Engaging in securities brokerage services in accordance with section 225.28(b)(7)(i) of Regulation Y
(12 C.F.R. 225.28(b)(7)(i)) through SBI.
Appendix B
Banking Markets in Ohio in which FirstMerit and Signal
Compete
Akron: The southern two-thirds of Summit County; sections of Medina County, including the townships of Sharon, Homer, Harrisville, Westfield, Guilford, and Wadsworth; Portage County, excluding the townships of Aurora,
Streetsboro, Mantua, Hiram, Nelson, Shalersville, Freedom, and Windham; and small portions of Wayne and
Stark Counties.
Cleveland: Cuyahoga, Lake, Lorain, and Geauga Counties
and the northern third of Summit County, including the
townships of Sagamore Hills, Northfield Center, Twinsburg, Richfield, Boston, and Hudson Townships, and the
municipalities circumscribed by those townships; all of
Medina County, except the townships of Homer, Harrisville, Westfield, Guilford, Wadsworth, and Sharon; the
townships of Aurora and Streetsboro in Portage County;
and the city of Vermillion in Erie County.
Wooster: Wayne County excluding the townships of
Chippewa and Milton.
Appendix C
Banking Markets in which Consummation of the Proposal
Would Not Exceed the DOJ Guidelines
Akron: After consummation of the proposal, FirstMerit
would control 31.3 percent of market deposits and would
remain the largest of 21 depository institutions in the
market. The HHI would increase 84 points to 1633.
Cleveland: After consummation of the proposal, FirstMerit
would control 6.5 percent of market deposits and would
remain the third largest of 37 depository institutions in the
market. The HHI would increase 2 points to 1797.
ORDERS ISSUED UNDER BANK MERGER ACT
Poteau State Bank
Poteau, Oklahoma
(2) Engaging in activities related to extending credit in
accordance with section 225.28(b)(2) of Regulation Y
(12 C.F.R. 225.28(b)(2)) through MCi.
Order Approving the Merger of a Bank and
Establishment of a Bank Branch
(3) Conducting savings association activities in accordance with section 225.28(b)(4)(ii) of Regulation Y
Poteau State Bank ("Poteau Bank"), a state member bank,
has applied under section 18(c) of the Federal Deposit
132 Federal Reserve Bulletin • February 1999
Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger Act")
to merge with Spiro Interim Bank, Spiro, Oklahoma
("Interim Bank").1 Poteau Bank also has applied under
section 9 of the Federal Reserve Act ("FRA") (12 U.S.C.
§ 321) to establish a branch at the location of Interim Bank
in Spiro.
Notice of the applications, affording interested persons
an opportunity to submit comments, has been given in
accordance with the Bank Merger Act and the Board's
Rules of Procedure (12 C.F.R. 262.3(b)). As required by
the Bank Merger Act, reports on the competitive effects of
the merger were requested from the United States Attorney
General and the Federal Deposit Insurance Corporation
("FDIC"). The time for filing comments has expired, and
the Board has considered the applications and all the facts
of record in light of the factors set forth in the Bank Merger
Act and section 9 of the FRA.
The Board received comments from a bank in Spiro and
the Community Bankers Association of Oklahoma maintaining that the proposal would violate state branching law
restrictions on the establishment of a de novo branch. The
commenters in this case presented the same arguments to
the Oklahoma Banking Board during its processing of the
state applications filed by FPC and Poteau Bank. The
Oklahoma Banking Board disagreed with the commenters
and approved the state applications.2
Under the FRA, the Board may approve the retention of
branches of two or more banks involved in a merger only if
the resulting bank is permitted under state law to operate
branches at each of the branch locations.3 When the state
authority charged with interpreting relevant state law has
issued an opinion regarding the applicability or scope of
the state law, the Board has given great weight to that
interpretation as long as it appears to be a reasonable
construction of state law.4
In this case, the Oklahoma Banking Board is responsible
for interpreting and applying the state laws governing
branching and mergers by state banks. Poteau Bank has
structured this transaction as an acquisition and merger of a
new bank and an existing bank, and the Oklahoma Banking
Board has consistently determined that proposals struc1. First Poteau Corporation, Poteau, Oklahoma ("FPC"), the parent
holding company of Poteau Bank, proposes to form Interim Bank and
simultaneously to merge it into Poteau Bank and to convert the
location of Interim Bank into a branch of Poteau Bank. On consummation of the proposal, Poteau Bank would operate offices in Poteau and
Spiro. Approval of the acquisition of Interim Bank is required under
section 3 of the Bank Holding Company Act (12 U.S.C. § 1842)
("BHC Act"). However, the Board's Regulation Y provides approval
for this type of transaction without requiring the filing of an application under the BHC Act, because the proposed transaction also must
be reviewed by the Board under the Bank Merger Act. See 12 C.F.R.
225.12(d)(2).
2. See First Poteau Corporation and Poteau State Bank, Docket No.
98-065, Oklahoma Banking Board (October 21, 1998) ("Banking
Board Order"). The FDIC approved the deposit insurance application
of Interim Bank.
3. See 12 U.S.C. § 321; 12 C.F.R. 208.6(a).
4. See Adams Bank & Trust, 82 Federal Reserve Bulletin 275
(1996); Northwest Kansas Bane Shares, Inc., 69 Federal Reserve
Bulletin 98 (1983).
tured in this fashion are permissible under Oklahoma law.
The Oklahoma statutes recognize a difference between
branching de novo, which is prohibited under certain circumstances, and retaining branches as the result of a
merger, which is generally permissible.5 The Oklahoma
statutes also recognize that state banks may decide to effect
a merger through an interim bank.6
Based on all the facts of record, and the considerations
discussed above, including the approval of the proposal by
the Oklahoma Banking Board, the Board concludes that
this proposal is consistent with Oklahoma bank branching
law and the branching requirements of section 9 of the
FRA.
The Board has considered the competitive effects of the
proposal as required by the Bank Merger Act. Poteau Bank
is the 66th largest commercial banking organization in
Oklahoma, controlling deposits of $84 million, representing less than 1 percent of the total deposits in commercial
banking organizations in the state.7 In light of all the facts
of record, the Board concludes that consummation of the
proposal would not have any significantly adverse effect on
competition or on the concentration of banking resources
in any relevant banking market.
In reviewing this proposal under the Bank Merger Act
and section 9 of the FRA, the Board also has considered
the financial and managerial resources and future prospects
of the institutions involved, the convenience and needs of
the communities to be served, and certain supervisory
factors. The Board has reviewed these factors in light of
the facts of record, including supervisory reports of examination assessing the financial and managerial resources of
Poteau Bank. The Board notes that Poteau Bank would
remain well capitalized on consummation of the proposal.
Based on all the facts of record, the Board concludes that
the financial and managerial resources and future prospects
of Poteau Bank are consistent with approval, as are the
other supervisory factors the Board must consider under
the Bank Merger Act and the FRA.
In considering the convenience and needs factor, the
Board has reviewed the record of Poteau Bank under the
Community Reinvestment Act ("CRA").8 As provided in
the CRA, the Board has evaluated this factor in light of
examinations by the appropriate federal banking supervisor
of the relevant institution. Poteau Bank received an "out5. See Oklahoma Stat. Ann. tit. 6, §§ 501.1(A), 501.1(C) (West
Supp. 1998).
6. See Banking Board Order. Oklahoma law authorizes a bank
holding company to organize an interim state bank charter and, before
commencing business, to merge the interim state bank with an existing bank. Oklahoma Stat. Ann. tit. 6, §§ 502(H), 502.1 (West Supp.
1998). Oklahoma law requires that the Oklahoma Banking Department handle the interim bank charter and merger applications in a
single process. Oklahoma Stat. Ann. tit. 6, § 502.1 (West Supp.
1998). The Oklahoma Banking Board determined that the proposed
acquisition and operation of Interim Bank as a branch of Poteau Bank
qualified for a specific statutory exception to the five-year age requirement on acquired bank branches. See Banking Board Order; Oklahoma Stat. Ann. tit. 6 § 501.1(E) (West Supp. 1998).
7. Deposit data are as of June 30, 1997.
8. 12 U.S.C. § 2901 etseq.
Legal Developments
standing" CRA performance rating at its most recent CRA
performance examination by the Federal Reserve Bank of
Kansas City. Based on a review of the entire record, the
Board concludes that convenience and needs considerations, including the CRA performance record of the
relevant institution, are consistent with approval of the
proposal.
Based on the foregoing and all the facts of record, the
Board has determined that these applications should be,
and hereby are, approved.9 The Board's approval of this
proposal is conditioned on compliance by Poteau Bank
9. Commenters also request that the Board delay action on this
application until final disposition by Oklahoma state courts of pending
litigation concerning the legality of the proposed branching method
under Oklahoma law. One of the commenters has appealed the Banking Board Order. However, it is uncertain when the state court
litigation will be resolved, and the Board has sufficient information to
act on these applications at this time.
133
with the commitments made in connection with this application and on the continued permissibility of this proposal
under state law. For purposes of this action, the commitments and conditions relied on in reaching this decision are
conditions imposed in writing by the Board and, as such,
may be enforced in proceedings under applicable law.
The merger of Poteau Bank and Interim Bank may not
be consummated before the fifteenth calendar day after the
effective date of this order, and this proposal may not be
consummated later than three months after the effective
date of this order, unless such period is extended by the
Board or by the Federal Reserve Bank of Kansas City,
acting pursuant to delegated authority.
By order of the Board of Governors, effective December 2, 1998.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Meyer, Ferguson and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)
Bank(s)
Effective Date
Cullen/Frost Bankers, Inc.,
San Antonio, Texas
New Galveston Company,
Wilmington, Delaware
FirstBank Holding Company of Colorado
ESOP,
Lakewood, Colorado
Simmons First National Corporation,
Pine Bluff, Arkansas
Keller State Bank,
Keller, Texas
December 22, 1998
FirstBank Holding Company of Colorado,
Lakewood, Colorado
December 1, 1998
Lincoln Bankshares, Inc.,
Lincoln, Arkansas
Bank of Lincoln,
Lincoln, Arkansas
Centennial Bank, N.A.,
Farmington, New Mexico
December 16, 1998
Zions Bancorporation,
Salt Lake City, Utah
December 2, 1998
134 Federal Reserve Bulletin • February 1999
Section 4
Applicant(s)
Bank(s)
Effective Date
Centura Banks, Inc.,
Rocky Mount, North Carolina
Capital Advisors of NC, L.L.C.,
Charlotte, North Carolina
Capital Advisors of South Carolina, Inc.,
Columbia, South Carolina
Capital Advisors of Mississippi, Inc.,
Jackson, Mississippi
Selken, Inc.,
Atlanta, Georgia
Capital Advisors, Inc.,
Raleigh, North Carolina
Albrecht & Associates, Inc.,
Houston, Texas
HSBC Finance (Netherlands) Limited,
London, England
HSBC Holdings BV,
Amsterdam, The Netherlands
Hongkong Bank of Canada,
Vancouver, British Columbia, Canada
Gordon Capital Corporation,
Toronto, Ontario. Canada
Gordon Capital Inc.,
Vancouver, British Columbia, Canada
December 16, 1998
Compass Bancshares, Inc.,
Birmingham, Alabama
HSBC Holdings pic,
London, England
December 4, 1998
December 7, 1998
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
ACNB Corporation,
Gettysburg, Pennsylvania
Farmers National Bancorp, Inc.,
Newville, Pennsylvania
Farmers National Bank of Newville,
Newville, Pennsylvania
Aliant National Corporation,
Alexander City, Alabama
Aliant Bank,
Alexander City, Alabama
Bailey Financial Corporation,
Clinton, South Carolina
The Saluda County Bank,
Saluda, South Carolina
M.S. Bailey & Son, Bankers,
Clinton, South Carolina
Rock Hill Bank & Trust,
Rock Hill, South Carolina
Asia-Europe-Americas Bank,
Seattle, Washington
Community Bank of Naples, N.A.,
Naples, Florida
Philadelphia
December 4, 1998
Atlanta
December 9, 1998
Richmond
December 7, 1998
San Francisco
December 10, 1998
Atlanta
December 14, 1998
Aliant Financial Corporation,
Alexander City, Alabama
Anchor Financial Corporation,
Myrtle Beach, South Carolina
AEA Bankshares, Inc.,
Seattle, Washington
Alabama National Bancorporation,
Birmingham, Alabama
Legal Developments
135
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Associated Banc-Corp,
Green Bay, Wisconsin
Windsor Bancshares, Inc.,
Minneapolis, Minnesota
Bank Windsor,
Nerstrand, Minnesota
Bryan-Heritage Limited Partnership,
Bryan, Texas
The First National Bank of Bryan,
Bryan, Texas
Capital Bank,
Raleigh, North Carolina
Home Savings Bank of Siler City, Inc.,
SSB,
Siler City, North Carolina
Cape Cod Bank and Trust Company,
Hyannis, Massachusetts
First Bank & Trust,
Spirit Lake, Iowa
Clarkston State Bank,
Clarkston, Michigan
Prestige Financial Corp.,
Flemington, New Jersey
Prestige State Bank,
Flemington, New Jersey
Eagle Bank of Alabama,
Opelika, Alabama
PNB Financial Group,
Newport Beach, California
Pacific National Bank,
Newport Beach, California
Chicago
December 17, 1998
Dallas
December 10, 1998
Richmond
November 30, 1998
Boston
December 18, 1998
Chicago
December 3, 1L998
Chicago
November 23, 1998
Philadelphia
December 18, 1998
Atlanta
December 16, 1998
San Francisco
December 10, 1998
Pullman Group, Inc.,
Chicago, Illinois
Pullman Bank,
Chicago, Illinois
Ashland Bankshares, Inc.,
Ashland, Kentucky
Chicago
November 30, 1998
Cleveland
December 10, 1998
First American Credit Corporation,
Jewell, Iowa
Freedom Holdings, L.C..
West Des Moines, Iowa
Freedom Financial Bank,
West Des Moines, Iowa
The First National Bank of the Pine
Belt,
Laurel, Mississippi
Wauneta Falls Bancorp, Inc.,
Wauneta, Nebraska
Chicago
December 2, 1998
Chicago
December 2, 1998
Atlanta
December 24, 1998
Kansas City
December 10, 1998
Bryan Family Management Trust,
Bryan, Texas
Capital Bank Corporation,
Raleigh, North Carolina
CCBT Bancorp, Inc.,
Hyannis, Massachusetts
CDS Bancorp, Inc.,
Spirit Lake, Iowa
Clarkston Financial Corporation,
Clarkston, Michigan
Commerce Bancorp, Inc.,
Cherry Hill, New Jersey
EBA Bancshares, Inc.,
Opelika, Alabama
Eggemeyer Advisory Corp.,
Rancho Santa Fe, California
Castle Creek Capital LLC,
Rancho Santa Fe, California
Castle Creek Capital Partners
Fund 1, LP,
Rancho Santa Fe, California
FBOP Corporation,
Oak Park, Illinois
Fifth Third Bancorp,
Cincinnati, Ohio
Fifth Third Bank of Southern Ohio,
Hillsboro, Ohio
First American Bank Group, Ltd.,
Fort Dodge, Iowa
First American Credit Corporation,
Jewell, Iowa
The First Bancshares, Inc.,
Hattiesburg, Mississippi
First Express of Nebraska, Inc..
Gering, Nebraska
136 Federal Reserve Bulletin • February 1999
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
The First National Bank at
St. James ESOP and Trust,
St. James, Minnesota
First Perry Bancorp, Inc.,
Marysville, Pennsylvania
First Security Bancorp,
Searcy, Arkansas
First Union Corporation,
Charlotte, North Carolina
F.N.B. Corporation,
Hermitage, Pennsylvania
Frontier Financial Corporation,
Everett, Washington
Gateway American Bancshares, Inc..
Ft. Lauderdale, Florida
Glacier Bancorp, Inc.,
Kalispell, Montana
Harleysville National Corporation,
Harleysville, Pennsylvania
Henderson Citizens Bancshares,
Inc.,
Henderson, Texas
Henderson Citizens Delaware
Bancshares, Inc.,
Dover, Delaware
Citizens National Bank,
Henderson, Texas
Heritage Financial Corporation,
Olympia, Washington
The First National Agency at St. James,
Minnesota, Inc.,
St. James, Minnesota
The First National Bank of Marysville,
Marysville, Pennsylvania
Baxter County Bancshares, Inc.,
Mountain Home, Arkansas
United Bancshares, Inc.,
Philadelphia, Pennsylvania
Guaranty Bank & Trust Company,
Venice, Florida
Washington Banking Corporation,
Oak Harbor, Washington
Gateway American Bank of Florida,
Ft. Lauderdale, Florida
Big Sky Western Bank,
Big Sky, Montana
Northern Lehigh Bancorp, Inc.,
Slatington, Pennsylvania
Jefferson National Bank,
Jefferson, Texas
Minneapolis
December 3, 1998
Philadelphia
December 10, 1998
St. Louis
December 14, 1998
Richmond
December 18, 1998
Cleveland
December 21, 1998
San Francisco
December 3, 1998
Atlanta
November 27, 1998
Minneapolis
December 2, 1998
Philadelphia
November 30, 1998
Dallas
November 25, 1998
Harbor Bancorp,
Aberdeen, Washington
The Bank of Grays Harbor,
Aberdeen, Washington
Washington Independent Bancshares,
Toppenish, Washington
Central Valley Bank, N.A.,
Toppenish, Washington
Homestead Financial Corporation,
Beatrice, Nebraska
San Francisco
December 17, 1998
San Francisco
December 17, 1998
Kansas City
December 7, 1998
The Jacksonville Bank,
Jacksonville, Florida
Exchange Bank of Missouri,
Fayette, Missouri
The Madison Bank,
Richmond, Ohio
C.A.S. Corporation,
Minneapolis, Minnesota
Oelwein Bancorporation,
Minneapolis, Minnesota
Wisconsin Financial Bancorporation,
Inc.,
Minneapolis, Minnesota
The Farmers and Mechanics Bank,
Galesburg, Illinois
Atlanta
December 15, 1998
St. Louis
December 11, 1998
Cleveland
December 10, 1998
Minneapolis
November 25, 1998
Heritage Financial Corporation.
Olympia, Washington
Homestead Financial Corporation
Employee Stock Ownership Plan,
Beatrice, Nebraska
Jacksonville Bancorp, Inc.,
Jacksonville, Florida
Lincoln County Bancorp, Inc.,
Troy, Missouri
Madison Financial Corporation,
Richmond, Ohio
Marquette Bancshares, Inc.,
Minneapolis, Minnesota
Legal Developments
137
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Mason-Dixon Bancshares, Inc.,
Westminster, Maryland
Sterling Bancorp,
Baltimore, Maryland
Mason-Dixon Merger Sub, Inc.,
Westminster, Maryland
Sterling Bank & Trust Co.,
Baltimore, Maryland
First National Corporation of West
Point,
West Point, Mississippi
First National Bank of West Point,
West Point, Mississippi
National Bank of the South,
Tuscaloosa, Alabama
Nixon Delaware Bancshares, Inc.,
Dover, Delaware
Nixon State Bank,
Nixon, Texas
Northern Star Bank,
Mankato, Minnesota
Northpointe Bank,
Grand Rapids, Michigan
Eagle Bancorp, Inc.,
Statesboro, Georgia
Eagle Bank and Trust Company,
Statesboro, Georgia
Southwest Bancorp, Inc.,
Worth, Illinois
Bank of the San Juans,
Durango, Colorado
The First National Bank of Carrollton,
Carrollton, Kentucky
Denver Ban Corporation,
Denver, Iowa
Denver Savings Bank,
Denver, Iowa
Red River Bank,
Alexandria, Louisiana
Richland County Bank,
Richland Center, Wisconsin
Salt Lick Bank,
Salt Lick, Kentucky
The Citizens Exchange Bank,
Pearson, Georgia
San National Bank, Delaware,
Wilmington, Delaware
First Capitol Bank,
York, Pennsylvania
Richmond
November 30, 1998
St. Louis
December 16, 1998
Dallas
November 25, 1998
Minneapolis
December 10, 1998
Chicago
December 7, 1998
Atlanta
November 24, 1998
Chicago
December 16, 1998
St. Louis
December 14, 1998
Chicago
December 2, 1998
Atlanta
November 27, 1998
Chicago
November 19, 1998
Cleveland
December 7, 1998
Atlanta
December 2, 1998
Philadelphia
December 1, 1998
Philadelphia
November 23, 1998
NBC Capital Corporation,
Starkville, Mississippi
Nixon Bancshares, Inc.,
Nixon, Texas
Northern Star Financial, Inc.,
Mankato, Minnesota
Northpointe Bancshares, Inc.,
Grand Rapids, Michigan
PAB Bankshares, Inc.,
Valdosta, Georgia
Peotone Bancorp, Inc.,
Peotone, Illinois
Port William Bancshares, Inc.,
Carrollton, Kentucky
PSB Corporation,
Wellsburg, Iowa
Red River Bancshares, Inc.,
Alexandria, Louisiana
Richland County Bancshares, Inc.,
Richland Center, Wisconsin
Salt Lick Bancorp, Inc.,
Salt Lick, Kentucky
SUM Financial Corporation,
Pearson, Georgia
Sun Bancorp, Inc.,
Vineland, New Jersey
Susquehanna Bancshares, Inc.,
Lititz, Pennsylvania
138 Federal Reserve Bulletin • February 1999
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
South Plains Financial, Inc.,
Lubbock, Texas
West Texas National Bancshares,
Lockney, Texas
Lockney Holding Company, Inc.,
Wilmington, Delaware
First National Bank of Lockney,
Lockney, Texas
First State Bank,
Silverton, Texas
Knox City Bancshares, Inc.,
Knox City, Texas
Citizens Bank,
Knox City, Texas
FSB, Inc.,
Covington, Tennessee
First State Bank of Covington,
Tennessee Covington, Tennessee
Southeast Bancorp, Inc.,
Corbin, Kentucky
The First National Bank and Trust
Company of Corbin,
Corbin, Kentucky
First Bank of East Tennessee, N.A.,
LaFollette, Tennessee
University National Bank,
Pittsburg, Kansas
Valley Bank,
Auburn, Washington
Valle de Oro Bank, N.A.,
Spring Valley, California
State Bank of St. Libory,
St. Libory, Illinois
Central Missouri Bancshares, Inc.,
Sedalia, Missouri
Central Bank of Missouri,
Sedalia, Missouri
Metropolitan Bancshares, Inc.,
Aurora, Colorado
Community Bank of Parker,
Parker, Colorado
Norwest Financial Services, Inc.,
Des Moines, Iowa
Norwest Financial Inc.,
Des Moines, Iowa
Dial National Bank,
Des Moines, Iowa
Lake Community Bank,
Lakeport, California
PNB Financial Group,
Newport Beach, California
Dallas
November 19, 1998
Dallas
November 25, 1998
St. Louis
December 16, 1998
St. Louis
December 16, 1998
Kansas City
November 20, 1998
San Francisco
December 2, 1998
San Francisco
November 19, 1998
St. Louis
December 16, 1998
St. Louis
December 4, 1998
San Francisco
November 25, 1998
San Francisco
December 9, 1998
San Francisco
December 11, 1998
San Francisco
December 10, 1998
Texas Country Bancshares, Inc.,
Brady, Texas
TCB Delaware, Inc.,
Dover, Delaware
Union Planters Corporation,
Memphis, Tennessee
Union Planters Holding Corporation,
Memphis, Tennessee
Union Planters Corporation,
Memphis, Tennessee
Union Planters Holding Corporation,
Memphis, Tennessee
University National Bancshares,
Pittsburg, Kansas
Valley Community Bancshares, Inc.,
Puyallup, Washington
Valley National Corporation,
Spring Valley, California
Village Bancshares, Inc.,
St. Libory, Illinois
Warren County Bancshares, Inc.,
Warrenton, Missouri
Wells Fargo & Company,
San Francisco, California
Wells Fargo & Company,
San Francisco, California
Western Sierra Bancorp,
Cameron Park, California
Western Bancorp,
Newport Beach, California
Legal Developments
139
Section 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Bank One Corporation,
Chicago, Illinois
Paymentech, Inc.,
Dallas, Texas
Mellon Bank, N.A.,
Pittsburgh, Pennsylvania
BNP Capital Markets, LLC,
New York, New York
BOSC, Inc.,
Tulsa, Oklahoma
Comerica Equities,
Detroit, Michigan
Grand Federal Savings Bank,
Grove, Oklahoma
German American Capital Corporation,
New York, New York
Boullioun Aviation Services, Inc.,
Bellevue, Washington
Argent Capital Management, LLC,
Clayton, Missouri
Calumet Bancorp, Inc.,
Dolton, Illinois
Calumet Federal Savings and Loan
Association,
Dolton, Illinois
Botsford and Rice, Inc.,
Grand Forks, North Dakota
Chicago
November 10, 1998
San Francisco
December 2, 1998
Kansas City
December 2, 1998
Chicago
November 23, 1998
St. Louis
November 18, 1998
New York
November 19, 1998
St. Louis
December 22, 1998
Chicago
December 15, 1998
Minneapolis
December 10, 1998
Stephen L. Smith Corporation,
Tulsa, Oklahoma
Coburn Insurance Agency, Inc.,
Deadwood, South Dakota
1st Bancorp,
Vincennes, Indiana
First Federal Bank, A Federal Savings
Bank,
Vincennes, Indiana
Financial Services of Southern Indiana
Corp.,
Vincennes, Indiana
Merrill Lynch Specialists, Inc.,
New York, New York
Northland Financial Company,
Minneapolis, Minnesota
Old Point Trust & Financial Services,
N.A.,
Newport News, Virginia
Hilliard-Lyons, Inc.,
Louisville, Kentucky
Kansas City
December 7, 1998
Minneapolis
December 21, 1998
St. Louis
December 9, 1998
Boston
December 17, 1998
Minneapolis
December 10, 1998
Richmond
November 20, 1998
Cleveland
November 20, 1998
Banque Nationale de Paris,
Paris, France
BOK Financial Corporation,
Tulsa, Oklahoma
Comerica Incorporated, Inc.,
Detroit, Michigan
Decatur Bancshares, Inc.,
Decatur, Arkansas
Deutsche Bank AG,
Frankfurt am Main, Federal
Republic of Germany
Enterbank Holdings, Inc.,
Clayton, Missouri
FBOP Corporation, Inc.,
Oak Park, Illinois
First National Corporation North
Dakota,
Grand Forks, North Dakota
First Pryor Bancorp, Inc.,
Pryor, Oklahoma
First Western Bancorp, Inc.,
Huron, South Dakota
German American Bancorp,
Jasper, Indiana
Fleet Financial Group, Inc.,
New York, New York
Marquette Bancshares, Inc.,
Minneapolis, Minnesota
Old Point Financial Corporation,
Hampton, Virginia
PNC Bank Corp.,
Pittsburgh, Pennsylvania
140 Federal Reserve Bulletin • February 1999
Section 4—Continued
Applicant^ s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Regions Financial Corporation,
Birmingham, Alabama
EFC Holdings Corporation,
Charlotte, North Carolina
EquiFirst Corporation,
Charlotte, North Carolina
EquiFirst Mortgage Corporation,
Charlotte, North Carolina
Money America, Inc.,
Charlotte, North Carolina
USACredit, Inc.,
Philadelphia, Pennsylvania
New Century Financial Corporation,
Irvine, California
Mid-Penn Consumer Discount Co.,
Philadelphia, Pennsylvania
Atlanta
November 19, 1998
Philadelphia
December 9, 1998
Minneapolis
November 12, 1998
San Francisco
November 27, 1998
Mortgage Professionals of Tampa Bay,
LLC,
Tampa, Florida
San Francisco
December 11, 1998
Service Mortgage Group, LLC
Louisville, Kentucky
San Francisco
December 9, 1998
Cargill Bancorp, Inc.,
Putnam, Connecticut
Boston
December 11, 1998
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
BB&T Corporation,
Winston-Salem, North Carolina
BB&T Financial Corporation of
Virginia,
Virginia Beach, Virginia
Chickasha Bancshares, Inc.,
Chickasha, Oklahoma
FVNB Corp.,
Victoria, Texas
FVNB Delaware Corp.,
Wilmington, Delaware
CBOT Financial Corporation,
New Waverly, Texas
MainStreet Financial Corporation,
Martinsville, Virginia
Richmond
December 16, 1998
Cement Insurance Agency, Inc.,
Cement, Oklahoma
Citizens Bank of Texas, N.A.,
New Waverly, Texas
Kansas City
December 14, 1998
Dallas
November 5, 1998
USABancShares, Inc.,
Philadelphia, Pennsylvania
U.S. Bancorp,
Minneapolis, Minnesota
Wells Fargo & Company,
San Francisco, California
Norwest Financial Services, Inc.,
Des Moines, Iowa
Norwest Financial, Inc.,
Des Moines, Iowa
Wells Fargo & Company,
San Francisco, California
Norwest Mortgage, Inc.,
Des Moines, Iowa
Norwest Ventures LLC,
Des Moines, Iowa
Wells Fargo & Company,
San Francisco, California
Norwest Mortgage, Inc.,
Des Moines, Iowa
Norwest Ventures LLC,
Des Moines, Iowa
Westbank Corporation,
West Springfield, Massachusetts
Sections 3 and 4
Legal Developments
141
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board is listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Applicant(s)
Bank(s)
Effective Date
Marine Midland Bank,
Buffalo, New York
First Commercial Bank of Philadelphia,
Philadelphia, Pennsylvania
December 9, 1998
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Ashland Bank,
Ashland, Kentucky
Bank of Colorado,
Fort Lupton, Colorado
Berks County Bank,
Reading, Pennsylvania
Chickasha Bank & Trust Company,
Chickasha, Oklahoma
Farmers & Merchants Bank,
Hannibal, Missouri
The Ohio Bank,
Findlay, Ohio
Fifth Third Bank of Southern Ohio,
Hillsboro, Ohio
Bank of Colorado-Front Range.
Windsor, Colorado
Heritage National Bank,
Pottsville, Pennsylvania
Cement Bank,
Cement, Oklahoma
F&M Interim Bank,
Hannibal, Missouri
Mid American National Bank Trust
Company,
Toledo, Ohio
The Citizens National Bank of
Evansville,
Evansville, Indiana
Citizens Bank of Western Indiana,
Terre Haute, Indiana
Citizens Bank of Central Indiana.
Greenwood, Indiana
Citizens Bank of Southern Indiana,
Tell City, Indiana
Citizens Bank of Kentucky,
Madisonville, Kentucky
Citizens Bank of Illinois, N.A.,
Mount Vernon, Illinois
Bank One Indiana, National
Association.
Indianapolis, Indiana
Fremont Investment and Loan.
Anaheim, California
Cleveland
December 10, 1998
Kansas City
December 2, 1998
Philadelphia
December 17, 1998
Kansas City
December 14, 1998
St. Louis
November 25, 1998
Cleveland
December 10, 1998
Chicago
November 25. 1998
Chicago
December 7, 1998
San Francisco
Decembers, 1998
Pinnacle Bank,
St. Joseph, Michigan
Salin Bank and Trust Company,
Indianapolis, Indiana
Valley Independent Bank,
El Centra, California
142
Federal Reserve Bulletin • February 1999
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
Fraternal Order of Police v. Board of Governors, No.
l:98CV03116 (D. D.C., filed December 22, 1998). Declaratory judgment action challenging Board labor practices.
Inner City Press/Community on the Move v. Board of Governors, No. 98-9604 (2d Cir., filed December 3, 1998). Appeal of district court order dated October 6, 1998, granting
summary judgment for the Board in a Freedom of Information Act case.
Attorneys Against American Apartheid v. Board of Governors,
No. 98-1483 (D.C. Cir., filed October 21, 1998). Petition
for review of denial of reconsideration of a Board order
dated August 17, 1998, approving the merger of
NationsBank Corporation, Charlotte, North Carolina, and
BankAmerica Corporation, San Francisco, California. On
December 7, 1998, the Board filed a motion to dismiss the
petition.
Independent Bankers Association of America v. Board of Governors, No. 98-1482 (D.C. Cir., filed October 21, 1998).
Petition for review of a Board order dated September 23,
1998, conditionally approving the applications of Travelers
Group, Inc., New York, New York, to become a bank
holding company by acquiring Citicorp, New York, New
York, and its bank and nonbank subsidiaries.
Jones v. Board of Governors, No. 98-30138 (5th Cir., filed
October 1, 1998). Appeal of district court dismissal of
complaint alleging violations of the Fair Housing Act.
Cunningham v. Board of Governors, No. 98-1459 (D.C. Cir.,
filed September 30, 1998). Petition for review of a Board
order dated September 23, 1998, conditionally approving
the applications of Travelers Group, Inc., New York, New
York, to become a bank holding company by acquiring
Citicorp, New York, New York, and its bank and nonbank
subsidiaries. On December 4, 1998, the Court granted the
Board's motion to dismiss the petition.
Clarkson v. Greenspan, No. 98-5349 (D.C. Cir., filed July 29,
1998). Appeal of district court order granting Board's motion for summary judgment in a Freedom of Information
Act case. On September 14, 1998, the Board filed a motion
for summary affirmance of the district court dismissal.
Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK)
(S.D.N.Y., filed May 15, 1998). Action to freeze assets of
individual pending administrative adjudication of civil
money penalty assessment by the Board. On May 26, 1998,
the court issued a preliminary injunction restraining the
transfer or disposition of the individual's assets and appointing the Federal Reserve Bank of New York as receiver for
those assets.
Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed
May 4, 1998). Appeal of partial denial of Board's motion
for summary judgment in action to freeze assets of individual pending administrative adjudication of civil money pen-
alty assessment by the Board. On May 22, 1998, the appellee filed a cross-appeal from the partial final judgment.
Fenili v. Davidson, No. C-98-O1568-CW (N.D. California,
filed April 17, 1998). Tort and constitutional claim arising
out of return of a check. On June 5, 1998, the Board filed its
motion to dismiss.
Logan v. Greenspan, No. l:98CV00049 (D.D.C., filed January 9, 1998). Employment discrimination complaint.
Goldman v. Department of the Treasury, No. 1-97-CV-3798
(N.D. Ga., filed December 23. 1997). Declaratory judgment
action challenging Federal Reserve notes as lawful money.
On March 2, 1998, the Board filed a motion to dismiss the
action.
Kerr v. Department of the Treasury, No. CV-S-97-01877DWH (S.D. Nev., filed December 22, 1997). Challenge to
income taxation and Federal Reserve notes. On September 3, 1998, a motion to dismiss was filed on behalf of all
federal defendants.
Artis v. Greenspan, No. 97-5235 (D.C. Cir., filed September 19, 1997). Appeal of district court order dismissing
employment discrimination class action. On October 20,
1998, the court of appeals affirmed the dismissal.
To we v. Board of Governors, No. 97-71143 (9th Cir, filed
September 15, 1997). Petition for review of a Board order
dated August 18, 1997, prohibiting Edward Towe and
Thomas E. Towe from further participation in the banking
industry.
Bettersworth v. Board of Governors, No. 97-CA-624 (W.D.
Tex., filed August 21, 1997). Privacy Act case.
FINAL ENFORCEMENT DECISION ISSUED BY THE
BOARD OF GOVERNORS
In the Matter of
Ricardo Carrasco
An Institution-Affiliated Party of
BankBoston International
Coral Gables, Florida
Docket Nos. 98-013-E-I and 98-013-B-I
Final Decision
This is an administrative proceeding pursuant to the Federal Deposit Insurance Act ("FDI Act") stemming from
the actions of respondent Ricardo Carrasco ("Respondent") while an employee of the New York branch (the
"Branch") of BankBoston International, Coral Gables,
Florida ("BBI"), an Edge corporation subject to the
Board's supervision under section 25(a) of the Federal
Reserve Act (12 U.S.C. § 611 et seq.). On May 13, 1998,
the Board issued a Notice of Intent to Prohibit from Participation and a Notice of Charges and of Hearing in which it
Legal Developments
alleged that Respondent violated the law, breached his
fiduciary duty, and engaged in unsafe or unsound banking
practices in connection with certain overdraft accounts he
opened in the name of a BBI customer, Oldemar Carlos
Barriero ("Barriero"). Despite a number of efforts at service of the Notice, Respondent failed to file an answer.
Accordingly, he has waived his right to appear and contest
the allegations, and the Board has determined to issue the
attached Order of Prohibition and Restitution.
I. Statement of the Case
A. Statutory and Regulatory Framework
The Board's regulations governing administrative hearings
specify that if a respondent does not file an answer within
20 days of service of the notice, the respondent is deemed
to have waived the right to appear and contest the allegations in the notice. 12 C.F.R. 263.19(c). The Board's regulations also identify how service of a notice must be made.
Papers required to be served by the Board, including the
initial notice, upon an individual who has not yet appeared
in the proceeding must be served by:
(i) personal service;
(ii) delivery to a person "of suitable age and discretion" at the respondent's residence or place of employment;
(iii) registered or certified mail addressed to the person's
last known address; or
(iv) "any other method reasonably calculated to give
actual notice." 12 C.F.R. 263.11(c)(2).
The FDI Act sets forth the substantive basis upon which
a federal banking agency may issue against a bank official
an order of prohibition from further participation in banking. In order to issue such an order, the Board must make
each of three findings:
(1) that the respondent engaged in identified conduct,
including a violation of law or regulation, an unsafe or
unsound banking practice, or a breach of fiduciary
duty;
(2) that the conduct had a specified effect, including financial loss to the institution or gain to the respondent;
and
(3) that the respondent's conduct involved either personal
dishonesty or a willful or continuing disregard for the
safety or soundness of the institution. 12 U.S.C.
§ 1818(e)(l).
The FDI Act also provides the substantive basis for a
cease and desist order requiring restitution. Among other
things, a cease and desist order may be entered if the Board
finds that a respondent has engaged in an unsafe or unsound practice or has violated any law, rule, or regulation.
12 U.S.C. § 1818(b)(l). The cease and desist order may
require restitution if the respondent was unjustly enriched
by the violation or practice, or if the violation or practice
involved reckless disregard for the law or regulations.
12 U.S.C. § 1818(b)(6)(A).
143
B. Procedural History
As noted above, the Notice was issued by the Board on
May 13, 1998. On May 21 and again on June 23, 1998, the
Notice was mailed by first-class mail to Respondent's last
known address. A copy of the Notice was also taped to the
door of his apartment on June 22, 1998.
Respondent was a citizen of Uruguay and a fugitive
from justice, having failed to respond to a criminal complaint and arrest warrant filed against him in the Southern
District of New York. The Board therefore took additional
steps to restrain dissipation of his property in the United
States pending the outcome of this administrative proceeding. In May 1998 the Board filed an action in Federal
district court pursuant to section 8(i)(4) of the FDI Act,
12 U.S.C. § 1818(i)(4), to obtain a preliminary injunction
to prevent Respondent from withdrawing or transferring
assets pending the outcome of the administrative action
against him. As part of that suit, and pursuant to the
direction of the district court judge, the Board published
notice of a hearing in district court on the Board's motion
for a temporary restraining order in the New York Times,
the Wall Street Journal, the Miami Herald, and the Los
Angeles Times. Respondent failed to appear at the hearing,
and the district court entered a preliminary injunction restraining Respondent's use of his property on May 26,
1998.
On July 23, 1998, Board Enforcement Counsel filed a
Motion for Default in this administrative action. The motion was sent by certified mail to Respondent's last known
address. No opposition was filed. Subsequently, on September 8, 1998, the ALJ issued an Order to Show Cause
requiring Respondent to respond and provide good reason
as to why he failed to file a timely answer to the Notice.
That Order was sent to Respondent's last known address
by registered mail, return receipt requested. No response
was received.
On October 8, 1998, the ALJ granted Enforcement
Counsel's Motion for Default, finding that Respondent had
failed to file a timely answer and that no good cause had
been shown. Accordingly, the ALJ issued a recommended
decision that incorporated the findings and relief set out in
the Notice, including the order of prohibition and the cease
and desist order calling for restitution to BBI in the amount
of $73 million.
II. Discussion
The scope of the Board's review in a case where an
uncontested finding of default has been made by an administrative law judge is limited to a determination that the
record supports a finding of default and that the allegations
in the notice support the relief sought.
In the circumstances here under review, the Board finds
that the allegations contained in the Notice meet the statutory criteria for the issuance of an order of prohibition and
a cease and desist order including restitution. According to
the Notice, Respondent opened at least 26 accounts for and
in the name of Oldemar Carlos Barriero over a three-year
144 Federal Reserve Bulletin • February 1999
period without preparing necessary documentation evidencing Barriero's relationship to and control over the
accounts. During this period, Respondent caused the accounts to accumulate approximately $73 million in overdrafts. BBI policy required all overdraft lines of credit to
be fully secured, and Respondent obtained his supervisor's
authorization for the overdrafts by falsely documenting
that the overdraft lines were fully collateralized by liquid
assets. The assets identified as security for the Barriero
accounts were assets in the accounts of other Branch
customers who had not given Respondent authority to
pledge those assets as collateral for the Barriero accounts.
Respondent used the proceeds from the overdrafts for his
own use, and BBI has not been able to collect any of the
$73 million in overdrafts.
Respondent's conduct alleged in the Notice constituted a
violation of law, an unsafe or unsound banking practice,
and a breach of Respondent's fiduciary duty. He put his
interests before the Branch's and caused substantial and
unreimbursed losses to the Branch by creating and using
overdrafts in the Barriero accounts. He obtained approval
for the overdraft accounts by submitting false documentation indicating that the overdrafts were secured by liquid
assets. This conduct demonstrated personal dishonesty as
well as a willful disregard for the safety or soundness of
the Branch. In addition, his actions constituted violations
of several criminal provisions, including misapplication of
bank funds and making false entries in the books of a bank,
and showed a reckless disregard for the law. Finally, the
Branch lost $73 million as a result of Respondent's actions,
and Respondent was unjustly enriched by the use of the
proceeds of the overdraft accounts.
Moreover, the Board finds that record establishes the
basis for a default order under the terms of the statute
because Respondent failed to respond either to the Notice
or the Order to Show Cause despite service reasonably
calculated to give him notice of the action. In addition to
the copies of the Notice mailed to his last known address
and taped to his apartment door, Respondent was also
notified of the charges against him through the notices
published in newspapers of wide circulation as required by
the U.S. district court judge. While such extraordinary
measures are by no means required to establish utilization
of a "method reasonably calculated to give actual notice,"
12 C.F.R. 263.1 l(c)(2)(v), they are certainly sufficient to
meet that standard.
Conclusion
For these reasons, the Board orders the issuance of the
attached Order of Prohibition and Restitution.
By Order of the Board of Governors, this 16th day of
December, 1998.
Board of Governors of the
Federal Reserve System
JENNIFER J. JOHNSON
Secretary of the Board
Order of Prohibition and Restitution
WHEREAS, pursuant to sections 8(b) and 8(e) of the
Federal Deposit Insurance Act, as amended, (the "Act")
(12 U.S.C. §§ 1818(b) and (e)), the Board of Governors of
the Federal Reserve System ("the Board") is of the opinion, for the reasons set forth in the accompanying Final
Decision, that a final Order of Prohibition and Restitution
should issue against RICARDO CARRASCO
("Carrasco");
NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to sections 8(b) and 8(e) of the Federal Deposit
Insurance Act, as amended (12 U.S.C. §§ 1818(b) and
1818(e)), that:
1. In the absence of prior written approval by the Board,
and by any other Federal financial institution regulatory agency where necessary pursuant to section
8(e)(7)(B) of the Act (12 U.S.C. § 1818(e)(7)(B)),
Carrasco is hereby prohibited:
(a) From participating in any manner in the conduct of
the affairs of any institution or agency specified
in subsection 8(e)(7)(A) of the Act (12 U.S.C.
§ 1818(e)(7)(A)), including, but not limited to, any
depository institution, any bank or savings association holding company, or any branch or agency of a
foreign bank;
(b) From soliciting, procuring, transferring, attempting
to transfer, voting or attempting to vote any proxy,
consent, or authorization with respect to any voting
rights in any institution described in subsection
8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A));
(c) From violating any voting agreement previously
approved by the appropriate Federal banking
agency; or
(d) From voting for a director, or from serving or
acting as an institution-affiliated party as defined in
section 3(u) of the Act, (12 U.S.C. § 1813(u)),
such as an officer, director, or employee.
2. (a) Carrasco shall make restitution in the amount of
$73 million to BBI;
(b) The restitution shall be remitted in full, payable to
the "Board of Governors of the Federal Reserve
System" and forwarded to Jennifer J. Johnson,
Secretary of the Board, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551,
who shall make remittence of the same to BBI.
3. Any violation of this Order shall separately subject
Carrasco to appropriate criminal or civil penalties or
both under section 8 of the Act (12 U.S.C. § 1818).
4. This Order, and each provision hereof, is and shall
remain fully effective and enforceable until expressly
stayed, modified, terminated, or suspended in writing
by the Board.
5. Pursuant to section 263.19(c) of the Board's Rules of
Practice for Hearings, 12 C.F.R. 263.19(c), this Order
is deemed to be an order issued upon consent for
purposes of sections 8(b)(2), (e)(4), and (h) of the Act
(12 U.S.C. §§ 1818(b)(2), (e)(4), and (h)). The provisions of this Order are effective immediately.
Legal Developments
By Order of the Board of Governors, this 16th day of
December, 1998.
Board of Governors of the
Federal Reserve System
JENNIFER J. JOHNSON
Secretary of the Board
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
Kassahum Kebede
New York, New York
The Federal Reserve Board announced on December 16,
1998, the issuance of an Order of Assessment of a Civil
Money Penalty against Kassahum Kebede, a former employee and institution-affiliated party of the Bankers Trust
Company, New York, New York, a state member bank.
145
Fred J. Smilek
New York, New York
The Federal Reserve Board announced on December 16,
1998, the issuance of an Order of Prohibition against
Fred J. Smilek, a former officer of the Chemical Bank,
New York, New York, a former state member bank.
Zia New Mexico Bank
Tucumcari, New Mexico
The Federal Reserve Board announced on December 14,
1998, the issuance of a Cease and Desist Order against the
Zia New Mexico Bank, Tucumcari, New Mexico.
WRITTEN AGREEMENTS
RESERVE BANKS
APPROVED
BY
FEDERAL
P. T. Ekspor Impor Bank Indonesia (Persero)
Jakarta, Indonesia
Adairsville Bancshares, Inc.
Adairsville, Georgia
The Federal Reserve Board announced on December 16,
1998, the issuance of an Order of Assessment of a Civil
Money Penalty against the P.T. Ekspor Impor Bank Indonesia (Persero), Jakarta, Indonesia, and the bank's New York
Agency.
The Federal Reserve Board announced on December 22,
1998, the execution of a Written Agreement by and among
Adairsville Bancshares, Inc., Adairsville, Georgia; the
Bank of Adairsville, Adairsville, Georgia; the Federal
Reserve Bank of Atlanta; and the Banking Commissioner
of the State of Georgia.
Putra Masagung and P.T. Gunung Agung, Ltd.
Corporation
Jakarta, Indonesia
The Federal Reserve Board announced on December 4,
1998, the issuance of a combined Order to Cease and
Desist and Order of Assessment of Civil Money Penalties
against Putra Masagung and P.T. Gunung Agung, Ltd.
Corporation, Jakarta, Indonesia, and an Order of Prohibition against Mr. Masagung.
Southern Security Bank
Hollywood, Florida
The Federal Reserve Board announced on December 7,
1998, the execution of a Written Agreement by and among
the Southern Security Bank, Hollywood, Florida; the
Federal Reserve Bank of Atlanta; and the State Comptroller and Banking Commissioner of the State of Florida.
Al
Financial and Business Statistics
A3
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank
A4
A5
A6
Credit
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Policy Instruments
A7
A8
A9
Federal Finance—Continued
GUIDE TO TABULAR PRESENTATION
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
Federal Reserve Banks
A10 Condition and Federal Reserve note statements
Al 1 Maturity distribution of loan and security
holding
A27 Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and
liabilities
A33 Domestic finance companies—Owned and managed
receivables
Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20
All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions
A34 Mortgage markets—New homes
A35 Mortgage debt outstanding
Consumer Credit
A36 Total outstanding
A36 Terms
Flow of Funds
A37
A39
A40
A41
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
A27 Federal debt subject to statutory limitation
DOMESTIC NONFINANCIAL STATISTICS
Selected
A42
A42
A43
A44
A46
A47
A48
A49
Measures
Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving
A2
Federal Reserve Bulletin • February 1999
INTERNATIONAL STATISTICS
Summary Statistics
A50
A51
A51
A51
U.S. international transactions
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United States
A52
A53
A55
A56
Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—Combined
domestic offices and foreign branches
Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners
Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange Rates
A61 Discount rates of foreign central banks
A61 Foreign short-term interest rates
A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Assets and liabilities of commercial banks,
September 30, 1998
A66 Terms of lending at commercial banks,
November 1998
A72 Assets and liabilities of U.S. branches and agencies
of foreign banks, September 30, 1998
A76 INDEX TO STATISTICAL TABLES
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
P
r
*
0
ATS
BIF
CD
CMO
CRA
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
Corrected
Estimated
Not available
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PMI
PO
REIT
REMIC
RP
RTC
SCO
SDR
SIC
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
GENERAL INFORMATION
In many of the tables, components do not sum to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury.
"State and local government" also includes municipalities,
special districts, and other political subdivisions.
A4
1.10
Domestic Financial Statistics • February 1999
RESERVES, MONEY STOCK. LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted'
Monetary or credit aggregate
Q4
Ql
Q2
Q3
July
Aug.
Sept.
-2.8
-5.6
-1.9
-1.8
-.6
6.9
-3.8
-2.5
-4.3
4.1
-7.4
-9.0
-8.4
6.9
-15.5
5.0
4.9
1.0
4.6
8.9
-11.0
-16.1
-10.5
11.5
-5.4
-2.5
-3.3
9.3
5.0
3.8
7.5
9.1
.9
7.0
10.0
6.0
3.0
8.0
11.0
6.2
.2
7.4
10.2
6.1
-2 5
6.6
7.4'
6.1
-3.0
4.8
1.8'
6.3
-3.1
8.5
12.6'
6.2
3.5
14.8
15.2'
6.0
7.2
12.7
13.7'
6.5
9.8
10.8
15.4
9.3
19.5
9.7
20.3
9.9
18.8
9.8
9.7'
7.5
-6.9'
12.5
24.7'
18.6
16.4'
14.6
16.4'
11.1
28.6
2
1
2
3
4
Reserves of depository institutions
Total
Required
Nonborrowed.
Monetary base"
5
6
7
8
Concepts of money, liquid assets, and de
Ml
M2
M3
Debt
Nontransaction components
9 In M25
10 In M3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time8-9
Thrift institutions
14
Savings, including MMDAs
15 Small time7
16 Large time8
16.3
4.5
9.9
13.6
1.5
19.5
14.3
-1.0
18.0
13.8
.8
-2.5
17.0
.2
-29.8
15.2
5.4
11.9
18.7
1.9
-4.5
16.0
1.9
-6.4
17.4
2.9
13.5
1.4
-3.1
5.4
7.6
-.4
14.4
11.6
-5.6
6.9
-5.0
-4.0
8.5
-5.3
-9.6
2.7
-12.8
-8.3
7.5
1.4
2.8
11.9
.7
8.3
12.1
-9.7
4.1
Money market mutual funds
17 Retail
18 Institution-only
15.1
22.0
19.0
18.9
21.0
36.5
21.3
21.6
5.0
-5.3
32.9
36.5
48.3
38.4
31.3
60.9
17.0
44.4
Repurchase agreements and Eurodollars
19 Repurchase agreements
20 Eurodollars10
39.5
24.3
34.1
7.6
14.5
-7.7
10.6
27.8'
18.9
30.9'
33.4
40.1'
29.8
8.9'
-20.3
32.9'
46.2
11.7
-1.4
8.6
-1.5
8.5
-.9
8.5
8.5
-3.3
8.9
-3.1
9.4
11
12
13
Debt components
21 Federal
22 Nonfederal
.4
7.9
1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all
depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfmancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.
Money Stock and Bank Credit A5
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1
Millions of dollars
Average of
daily figures
Average of dally figures for week ending on date indicated
Sept.
Oct. 14
Oct. 21
Oct. 28
Nov. 4
Nov. 11
Nov. 18
Nov. 25
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
8
Seasonal credit
9
Extended credit
10
Float
11
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
489,492'
495,325
493,033
495,211
444,223
6.303
447,493
3.235
451,629
3,391
447,673
2,672
490,836
447,289
4,096
447,209
2,025
450,128
3.333
450,355
1,903
450,434
4.084
452,826
.1,004
417
1,923
0
394
3.425
0
373
3,864
0
400
3,077
0
4,415
0
388
3.457
0
385
3,878
0
0
373
4.215
0
372
2,691
0
56
177
0
86
104
0
31
110
0
13
91
0
622
32,918
181'
34,572
48
.15
0
544
35,440
13
46
0
994
36,161
72
33
0
466
35,536
84
23
0
628
34,534
11,045
9,200
25,990
11,043
9,200
26,033
492,822
93
6,296
176
6,907
360
17,160
543
34,117
4
99
0
-178
34,723
266'
34,724
35
67
0
-118
36,134
11,041
9,200
26,094
11,044
9,200
26.023
11,044
9,200
26,037
11,040
9,200
26.051
11,041
9,200
26,065
11,041
9,200
26.079
11,042
9,200
26,093
11,041
9,200
26,107
496,396
91
502,660
92
497,334
92
497.191
92
496,617
90
498,252
87
500.979
87
502.563
503,865
98
5.407
224
6,947'
5.135
188
5,480
321
7,055
417
17,078
7.114
5,322
209
6,953
408
17,218
9,725
5,326
206
6,860'
424
17.188
5,030
164
6,860
406
18,049
11,301
5,256
185
6,793
416
18.138
7,499
4.801
178
5,026
179
6,772
6,793
410
17,220
9,514
389
17,042
7.118
Nov. 11
Nov. 18
Nov. 25
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 Banks4
9.061
6,867
403
414
17,347
8,941'
17,476
8.840
7.751'
End of-month figures
Wednesday figures
Sept.
Oct. 21
Oct. 28
Nov. 4
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities'
2
Bought outright—System account1
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
. .
. .
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
496,371
494,886'
504,547
491,277
492,306
489.060'
491,069
446,047
12,135
450 179
4,286
453,991
8.970
447.687
2.045
448,032
4,115
447.966
2,279
450,388
2,050
451.665
940
451,617
3,630
454,525
3,830
403
2,099
0
388
3.538
0
368
6,172
0
388
4.570
0
5,488
0
388
3,440
0
373
3,234
0
373
3,605
0
373
4,263
0
4,662
0
896
159
0
-1,230
35,862
68
0
-329'
36.755'
1
15
0
101
109
0
0
94
0
464
34,567
2,140
34.238
126
19
0
525
35.073
11.044
9.200
25,995
11,041
9,200
26,065
11,041
9,200
26,121
494,244
92
497,402
87
4,952
347
6,992
349
17,654
17,981
4.440
154
494,351
368
59
0
3
36
0
-266
34,455
1
83
0
101'
34.802
-691
35,654
2,205
36.189
15
24
0
456
33,973
11,044
9,200
26,023
11,044
9,200
26,037
11,041
9,200
26,051
11,041
9,200
26,065
11,041
9,200
26,079
11,041
9,200
26,093
11,040
9.200
26,107
507,068
99
498,474
92
497,594
91
498,039
499.999
87
503,375
98
506,708
99
5,219
211
7,211
337
16,579
14,183
4.895
189
7,055
397
16,878
4,842
6.382
211
5,914
191
4,720
214
6,953
398
6,860'
6,860
467
17,025
16,927
9.564
11,506
6,376'
438
17,861
6,026
4.881
252
6,793
356
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 capita] . ,
22 Reserve balances with Federal Reserve Banks4
6,860'
380
18,241
13.627'
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
177
87
5.271
157
6,793
390
18.258
7,290
6,772
406
16,859
8,240
16,852
9,534
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
4. Excludes required clearing balances and adjustments to compensate for float.
A6
Domestic Financial Statistics • February 1999
1.12
RESERVES AND BORROWINGS
Depository Institutions'
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1 Reserve balances with Reserve Banks2
2 Total vault cash
4
Surplus vault cash5
5 Total reserves6
7
Excess reserve balances at Reserve Banks
8 Total borrowings at Reserve Banks8
10
Extended credit9
1998
1995
1996
1997
Dec.
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.'
Nov.
20,440
42,281
37,460
4.821
57,900
56,622
1,278
257
40
0
13,395
44,525
37,848
6,678
51,242
49,819
1,423
155
68
0
10,673
44,707
37,206
7,500
47,880
46,196
1.683
324
79
0
9.646
41,482
35,159
6,323
44,805
43,655
1,150
153
94
0
9,668
42,635
35.427
7,208
45,095
43.475
1.620
251
159
0
9,646
42,035
34,954
7,081
44,600
43,235
1.365
258
215
0
9,682
42,121
35,025
7,095
44,707
43,194
1,513
271
242
0
9,284
42,579
34,909
7,670
44,193
42,509
1,684
251
178
0
9.026
43.348
35,090
8,258
44,115
42,544
1,572
174
107
0
8,855
43,109
35,298
7,811
44,152
42,529
1,624
84
37
0
Biweekly averages of daily figures for two week periods ending on dates indicated
1998
3
Applied vault cash4
7
Excess reserve balances at Reserve Banks7
8 Total borrowings at Reserve Banks
10
Extended credit9
July 29
Aug. 12
Aug. 26
Sept. 9
Sept. 23
Oct. 7
Oct. 21
Nov. 4'
Nov. 18
Dec. 2
8,933
41,984
34,770
7,214
43,703
42,341
1,362
314
233
0
10,428
41,984
35,157
6,827
45,585
44,147
1,437
271
241
0
8,800
42,355
35,024
7,330
43,824
42,392
1,431
280
255
0
10,363
41,793
34,712
7,081
45,075
43,153
1,922
247
209
0
8,439
42,900
35,039
7,862
43,477
42,093
1,384
190
171
0
9,588
42,948
34,905
8,043
44,493
42,514
1,978
379
152
0
8,400
44,084
35,321
8,763
43,720
42,520
1,200
122
105
0
9,509
42,598
34,897
7,701
44,405
42,599
1,806
103
79
0
8,520
43,080
34,935
8,145
43,455
41,913
1,542
82
40
0
9,028
43,313
35,855
7,458
44,882
43,224
1,658
79
20
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrifts that are not exempt from reserve requirements. Dates refer to the
maintenance periods in which the vault cash can be used to satisfy reserve requirements.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) phis applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.
Policy Instruments A7
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit
Federal Reserve
Bank
Boston
New York. . . .
Philadelphia ..
Cleveland. . .
Richmond. . ..
Atlanta
On
1/15/99
Effective date
4.50
Extended credit3
Seasonal credit
Previous rate
On
1/15/99
Previous rate
On
1/15/99
4.85
5.25
1/14/99
4.85
5.25
1/14/99
11/18/98
11/17/98
11/17/98
11/19/98
11/18/98
11/18/98
Chicago
St. Louis
Minneapolis .
Kansas City
Dallas
San Francisco
11/19/98
11/19/98
11/19/98
11/18/98
11/17/98
11/17/98
4.75
4.75
1/14/99
Previous rate
5.35
Range of rates for adjustment credit in recent years4
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
In effect Dec
1978—Jan.
May
July
Aug.
Sept.
Oct.
1979—July
Aug.
Sept.
Oct.
1980—Feb.
May
June
July
Sept.
Nov.
Dec
1981—May
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10-10.5
10.5
10.5-11
1]
11-12
12
10
10.5
10.5
11
11
12
12
12-13
13
12-13
12
11-12
II
10-11
10
11
12
12-13
13
13-14
14
13
13
13
12
11
11
10
10
11
12
13
13
14
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
1981—Nov. 2 .
6.
Dec. 4 .
13-14
13
12
1982—July 20 .
23 .
Aug. 2 .
3.
16 .
27 .
30.
Oct. 12 .
13 .
Nov. 22 .
26.
Dec. 14 .
15 .
17 .
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
8.5-9
9
8.5-9
8.5
9
9
8.5
8.5
1984—Apr.
9.
13 .
Nov. 21 .
26.
Dec. 24 .
13
13
12
9.5
9
9
9
8.5
8.5
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
1988—Aug. 9
11
6-6.5
6.5
6.5
6.5
1989—Feb. 24
6.5-7
7
27
1990—Dec. 19
1991—Feb.
1
4
Apr. 30
May 2
Sep't. 13
17
Nov. 6
7
Dec. 20
24
1992—July 2
7
1994—May 17
7.5-8
7.5
7.5
7.5
1986—Mar. 7 .
10.
Apr. 21 .
23 .
July 11 .
Aug. 21 .
22.
7-7.5
7
6.5-7
6.5
6
5.5-6
5.5
7
7
6.5
6.5
6
5.5
5.5
1987—Sept. 4 .
11 .
5S-6
6
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
3
3
3.5
3.5
4
4
4.75
4.75
1
9
4.75-5.25
5.25
5.25
5.25
1996—Jan. 31
Feb. 5
5.00-5.25
5.00
5.00
5.00
1998—Oct. 15
Oct. 16
4.75-5.00
4.75
4.75
4.75
1998—Nov. 17
Nov. 19
4.50-4.75
4.50
4.50
4.50
4.50
4.50
Aug. 16
18
Nov. 15
17
1995—Feb.
In effect Jan. 15, 1999 .
1. Available on a short-term basis to help depository institutions meet temporary needs for
funds thai cannot be met through reasonable alternative sources. The highest rate established
for loans to depository institutions may be charged on adjustment credit loans of unusual size
that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period; however, it is never less than
the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit may
be provided when exceptional circumstances (including sustained deposit drains, impaired
access to money market funds, or sudden deterioration in loan repayment performance) or
practices involve only a particular institution, or to meet the needs of institutions experiencing
difficulties adjusting to changing market conditions over a longer period (particularly at times
of deposit distntermediation). The discount rate applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion
3-3.5
3
6
6
3-3.5
3.5
3.5-4
4
4-4.75
4.75
18
1985—May 20 .
24.
6.5
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rate somewhat above rates charged on market sources of funds is charged. The rate
ordinarily is reestablished on the first business day of each two-week reserve maintenance
penod, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4. For earlier data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 19701979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit
borrowings by institutions with deposits of $500 million or more that had borrowed in
successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was
in effect from Mar. 17, 1980, through May 7. 1980. A surcharge of 2 percent was reimposed
on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to
4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept 22, 1981,
and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period. The
surcharge was eliminated on Nov. 17, 1981.
A8
Domestic Financial Statistics • February 1999
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Requirement
Type of deposit
Net transaction accounts
1 $0 million $47 8 million3
2 More than $47.8 million4
Percentage of
deposits
Effective date
3
10
12/31/98
12/31/98
3
Nonpersonal time deposits
0
12/27/90
4
Eurocurrency liabilities
0
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 the Monetary Control Act of 1980, depository institutions
include commercial banks, mutual savings banks, savings and loan associations, credit
unions, agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than six
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 31, 1998, for depository institutions that report weekly, and with the period
beginning January 14, 1999. for institutions thai report quarterly, the amount was decreased
from $47.8 million to $46.5 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the
succeeding calendar year by 80 percent of the percentage increase in the total reservable
liabilities of all depository institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 31, 1998, for depository institutions that report
weekly, and with the period beginning January 14, 1999, for institutions that report quarterly,
the exemption was raised from $4.7 million to $4.9 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 ]A years was reduced from 3 percent to 1 Vz percent for
the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. 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.
The reserve requirement on nonpersonal time deposits with an original maturity of \x/2
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requiremen! on nonpersonal time
deposits with an original maturity of less than 1 ]/z years (see note 5).
Policy Instruments A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS'
Millions of dollars
Type of transaction
and maturity
Apr.
May
July
Aug.
Sept.
U.S. TREASURY SECURITIES-
Outrighl transactions {excluding matched
transactions)
Treasury bills
1 Gross purchases
2 Gross sales
3
Exchanges
4
For new bills
5
Redemptions
Others within one year
6
Gross purchases
7
Gross sales
8
Maturity shifts
9
Exchanges
10 Redemptions
One to five years
11 Gross purchases
12 Gross sales
13
Maturity shifts
14 Exchanges
Five to ten years
15 Gross purchases
16 Gross sales
17 Maturity shifts
18 Exchanges
More than ten years
]9
Gross purchases
20
Gross sales
21
Maturity shifts
22
Exchanges
All maturities
23 Gross purchases
24 Gross sales
25
Redemptions
Matched transactions
26 Gross purchases
27 Gross sales
Repurchase agreements
28 Gross purchases
29 Gross sales
10.932
0
405.296
405,296
900
9,901
0
426,928
426,928
0
9,147
0
436,257
435,907
0
3,550
0
46,802
46.802
0
0
0
35,190
35,190
0
0
0
32,830
32,830
0
0
0
40,312
40,312
0
0
0
34,607
34,607
0
0
0
33,140
33,140
0
0
0
40.712
40,712
0
390
0
43,574
-35,407
1,776
524
0
30,512
-41,394
2,015
5.549
0
41,716
-27,499
1,996
1,369
0
4,369
-2.601
0
0
6,951
-4,990
0
0
0
1.520
-5.084
0
0
0
2,638
-2,242
1,311
0
6.367
-8,964
0
1.038
0
2,301
-2.242
0
741
0
2,423
-400
602
5,366
0
-34,546
26,387
3.898
0
-25,022
31,459
19.680
0
-37,987
20,274
2,993
0
-4,369
2,201
0
0
-6,620
2,270
0
0
-1,520
5,084
0
0
-2,638
1,842
535
0
-2,168
5,828
3.989
0
-2,301
2.242
725
0
-2,423
0
1,432
0
-3,093
7,220
1,116
0
-5,469
6,666
3,849
0
-1,954
5,215
495
0
0
0
0
0
-331
2,720
0
0
0
0
0
0
0
0
303
0
-3.411
1.364
351
0
0
0
0
0
0
400
2,529
0
-2,253
1,800
1,655
0
-20
3,270
5.897
0
-1,775
2,360
0
0
0
400
0
0
0
0
0
0
0
0
0
0
0
400
1.769
0
-789
1,772
0
0
0
0
1,674
0
0
0
20,649
0
2.676
17,094
0
2,015
44,122
0
1,996
8,407
0
286
0
0
0
0
0
0
0
0
1.311
3,593
0
0
5.377
0
0
3.140
0
602
2,197,736
2,202,030
3.092,399
3.094.769
3,577,954
3,580,274
354,756
354.741
367,934
368,281
369.358
370,569
373,285
371,142
346,245
348.318
380,594
382,063
402,581
400,995
331,694
328,497
457,568
450,359
810,485
809,268
59,548
50,663
7,722
20.456
57,098
41,414
52,116
63,531
39,078
38,402
63,924
59,731
40,823
48,672
19,919
41,022
-13.081
14,473
-10,584
2,196
0
0
1,003
0
0
409
0
0
1,540
0
0
74
36,851
36.776
75,354
74,842
160,409
159,369
13,547
13,042
1,575
3.300
-1.725
17,452
-14,806
30 Net change in U.S. Treasury securities
-3,725
FEDERAL AGENCY OBLIGATIONS
Outright transactions
31 Gross purchases
32 Gross sales
33 Redemptions
Repurchase agreements
34 Gross purchases
35 Gross sales
36 Net change in federal agency obligations
37 Total net change in System Open Market Account .
-928
103
-500
15,948
20,021
40,522
I. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account: all other figures increase such holdings.
0
0
25
0
25
50
0
0
48
0
0
15
11,236
12,341
33,431
30.625
18,486
19.953
51,471
50,032
1,610
-1,105
2,731
-1,515
1.424
16,083
-11,689
4.927
6,586
-2,301
14,548
12,913
2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.
A10
1.18
Domestic Financial Statistics • February 1999
Condition and Federal Reserve Note Statements1
FEDERAL RESERVE BANKS
Millions of dollars
Account
Oct. 28
Nov 4
Wednesday
End of month
1998
1998
Nov. 1 1
Nov. 18
Nov. 25
Sept. 30
Oct. 31
Nov. 30
Consolidated co ldnion statemei
A.SSLTS
1 Gold certificate account
2 Special drawing rights certificate account . .
.1 Coin .
..
. .
..
Loans
4 To depository institutions . .
5 Other
6 Acceptances held under repurchase agreements
f-i'tlcral wm \ obligations
7 Bought outright
8 Held under repurchase agreements
11.041
9.200
458
1 1.041
9.200
409
11.041
9.200
408
11,041
9.200
404
11.040
9,200
399
11,044
9.200
417
11.041
9.200
426
11.041
9,200
391
84
0
0
60
0
0
39
0
0
39
0
0
146
0
0
1,055
0
0
69
0
0
17
0
0
188
1.440
173
3.234
173
3.605
373
4,263
368
4,662
403
2,099
388
1.538
168
6.172
450.245
452.438
452.605
455.247
458,355
458.182
454,465
462,961
10 Bought ouLriiihr
11
Bills
.".
12
Notes
...
13 Konds, .
14 Held under repurchase agreements
447.966
196.578
184.33.1
67.055
2.279
450,388
197,659
185.034
67.696
2.050
451.665
197.757
1 86.206
67,702
940
451,617
196.355
186.646
68,617
3,630
454,525
197,167
187,887
69.472
3.830
446,047
195.864
184.186
65.996
12.135
450,179
197.450
185.03.1
67.696
4.286
453.991
196.631
1K7 888
69.472
8.970
15 Total loans and securities
454,157
456.105
456,622
459,922
463,530
461,738
458.460
469,517
6,398
1,295
7,930
1.294
10.370
1.295
8.747
1.295
7,631
1.295
6.454
1.295
4.702
1.293
2.899
1.294
18.486
15,114
19.579
15.386
19,587
15,371
19.597
13.146
19,605
14,555
18,448
15,880
19.573
15.976
18.943
14.456
516.148
520,945
523,894
523,352
527,256
524,476
520,672
527,740
M Total US. Treasury securities
16 Items in process of collection
17 Bank premises
Other CI.VK-K
18 Denominated in foreign currencies
19 All other4
'
20 Total assets
I.IABHJ'nf s
21 Federal Rescue notes
472.533
474.430
477.508
477,785
481,100
468.759
471,851
481.418
22 Total deposits
20,448
20,864
20,003
21,031
22,192
31,353
25,568
27,260
23
24
25
26
Depositor} institutions. . . .
U.S. T r e a s u r v — G e n e r a l account
Fomtin—Oliicial accounts .
Other"
1 5,385
6,182
213
467
14.320
5,914
191
43K
14,186
5.271
157
390
15.691
4,720
214
406
16.705
4.881
252
356
25.706
4.952
147
349
20.592
4.440
154
380
21,491
5,219
211
337
O t h e r liabilities a n d a c c r u e d d i w d e n d s 5
6 "*40
4.477
7 791
4J93
6 711
28
'SO]"'
4,518
"* 461
4.456
503,697
507,477
509,992
510,965
514,832
511,460
506,948
515,617
5,919
5.220
1.311
5.923
5.220
2.325
5 912
5.220
2.749
5.935
5.220
1,232
5,908
5.220
1.296
5,910
5,220
1.886
5,920
5,220
2.583
5 911
5,205
987
516,148
520,945
523.894
523,352
527,256
524.476
520,672
527,740
576.334
575.765
578.930
591.187
591,187
564,692
576,466
596,157
.
. . .
29 Total liabilities . . . .
8 1 ^6
4.356
7 678
4.471
7 1 1 ~*
4,428
CAPJIA1 ACCOUNTS
30 Capital paid in . . . .
31 Surplus
32 Other capital accounts
.
33 Total liabilities and capital accounts
.
....
.
Mi-MO
34 Marketahle U.S. Treasur} securities held in custody for
foreign and international accounts
Federal Rcserv note statemen
35 Federal Reserve notes outstanding (issued to Banks!
36
I.KSS. Held b\ Federal Reserve Banks
37
Federal Resenc notes, net
Collateral
}S
39
40
41
h<ld
against
ttortw
587.780
115.247
472.533
591.309
116.879
474.430
594.511
1 17.001
477.508
597.997
120.212
477.785
600.250
119,150
481,100
580.575
111.817
468.759
588,229
116.378
471,851
601.253
119.815
481,438
1 1.041
9,200
0
452,292
1 1.041
9.200
0
454.188
1 1,041
9.200
0
457.266
11.041
9,200
0
457,544
11.040
9,200
0
460,860
11.044
9.200
0
448,515
11,041
9.200
0
451,610
11.041
9.200
0
461.197
472,533
474,430
477,508
477,785
481,100
468,759
471,851
481.438
tier
G o l d certificate account , ,
.
S p e c i a l d r a w i n g r i g h t s certificate a c c o u n t
Other eligible assets
U.S. Treasury and agencv securities
42 Total collateral
...
. . . .
1. Sumc o( the data in this (able also appear in the Board's H.4 1 (5UM weekly statistical
release. For ordering address, see inside front eou*r
2. includes securities loaned- -t'ulK guaranteed hy US Treasury securities pledged with
Federal Rcsene Banks—and includes compensation lhat adjusts for the effects of inflation on
the principal o( inflation-indexed securities. 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
Federal Reserve Banks A11
1.19
FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
Millions of dollars
End of month
Wednesday
Type of holding and maturity
Nov. 18
2 Within fifteen (lays'
3. Sixteen days to ninety days
4 Total U.S. Treasury securities2
5
6
7
8
9
10
11
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
Total federal agency obligations .
12
13
14
15
16
17
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
Oct. 30
39
146
7b
8
47
13
34
5
37
143
3
155
78
51
18
4
12
450,245
452,438
452,605
455,247
458,355
458,182
454,465
462.961
12,666
92,901
142,266
105.384
42,033
54.994
15,302
91,727
141,032
106,733
42,034
55,611
17,639
95,103
134.307
107,911
42.035
55,611
13,692
96.249
139.064
107,327
43.947
54.968
14.629
96,504
138,884
107,855
44,816
55.666
20,310
90,644
145,875
105,789
41,628
53,936
8,752
100,244
141,715
106,109
42.034
55.611
16,007
100,695
138,427
107.348
44.817
55.666
3,828
3,607
3,978
4,636
5,030
2,502
3.926
6,540
3.440
50
85
58
185
0
3,234
37
93
58
185
0
3.610
32
100
51
185
0
4,268
12
100
51
185
0
2,099
50
75
93
185
3,538
52
93
58
185
0
6.202
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
.-cordance with maximum maturity of the agreements.
Sept. .10
100
51
185
0
100
51
185
0
2. Includes compensation that adjusts for the eftect- of inllation on the principal of
intlation-indexed securities
A12
1.20
Domestic Financial Statistics • February 1999
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1994
Dec.
1995
Dec.
1996
Dec.
1997
Dec.
Apr.
Total reserves3
Nonborrowed reserves4
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base6
July
Sept.
Ocl.r
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
5
May
59.41
59.20
59.20
58.24
418.12
56.40
56.14
56.14
55.12
434.17
50.08
49.93
49.93
48.66
452.38
46.67
46.35
46.35
44.99
480.15
45.96
45.89
45.89
44.61
487.20
45.59
45.44
45.44
44.44
489.10
45.39
45.14
45.14
43.77
491.63
44.81
44.56
44.56
43.45
493.70
45.00
44.73
44.73
43.48
497.37
44.59
44.33
44.33
42.90
502.14r
44.39
44.21
44.21
42.81
506.01
44.57
44.49
44.49
42.95
509.85
Not seasonally adjusted
6
7
8
9
10
Total reserves'
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base
61.13
60.92
60.92
59.96
422.51
58.02
57.76
57.76
56.74
439.03
51.52
51.37
51.37
50.10
456.72
47.97
47.65
47.65
46.29
485.11
46.53
46.45
46.45
45.18
487.36
44.87
44.71
44.71
43.72
488.28
45.17
44.92
44.92
43.55
491.18
44.69
44.43
44.43
43.32
495.35
44.81
44.54
44.54
43.30
497.56
44.31
44.06
44.06
42.63
501.02'
44.24
44.07
44.07
42.67
504.50
44.29
44.21
44.21
42.67
510.15
61.34
61.13
61.13
60.17
427.25
1.17
57.90
57.64
57.64
56.62
444.45
1.28
.26
51.24
51.09
51.09
49.82
463.49
1.42
.16
47.88
47.56
47.56
46.20
491.92
1.68
.32
46.48
46.40
46.40
45.13
494.11
1.35
.07
44.81
44.65
44.65
43.66
494.95
1.15
.15
45.10
44.84
44.84
43.48
497.93
1.62
.25
44.60
44.34
44.34
43.24
502.20
1.37
.26
44.71
44.44
44.44
43.19
504.45'
1.51
.27
44.19
43.94
43.94
42.51
507.83'
1.68
.25
44.12
43.94
43.94
42.54
511.35
1.57
.17
44.15
44.07
44.07
42.53
516.92
1.62
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11
12
13
14
15
16
17
Total reserves''
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base
Excess reserves'3
Borrowings from the Federal Reserve
.21
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2 Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6 The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line I), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash'' and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6). plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates A13
1.21
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1998
1996
Dec.
1997
Dec.
Aug.
Sept.
Oct.
Seasonally adjusted
Measures"
1 Ml
1,150.7
3,503.0
4,333.6
12.998.7
1.128.7
3,651.2
4,595.6
13,695.6
354.3
8.5
384.0
372.4
8.9
391.0
403.9
1,082.8
3,826.1
4,931.1
14.424.1
1,076.0
4.046.4
5.376.8
15,167.3
1,069.0
4,240.7
5,711.8
15.793.1
1,072.1
4,292.9
5,784.2
15.871.7
1.078.5
4,338.5
5,850.2
15,957.3
1,087.3
4.377.4
5,925.1
394.9
443.8
7.8
374.2
243.2
241.2
453.3
8.0
374.1
243.1
456.7
8.0
376.1
356.4
425.5
8.2
397.1
245.2
449.5
7.9
403.6
275.9
2,352.3
830.6
2.522.6
944.4
2.743.2
1.105.0
2.970.4
1.330.4
3,171.7
1,471.2
3,220.8
1.491.3
3,260.0
1,511.7
3,290.1
1,547.7
752.6
503.2
298.7
775.0
575.8
345.4
904.8
594.5
413.2
1,020.9
625.7
487.5
1,117.8
626.4
527.9
1,135.2
627.4
525.9
1,150.3
628.4
523.1
1,167.0
629.9
529.0
Thrift institutions
14 Savings deposits, including MMDAs
15 Small time deposits9
16 Large time deposits*"
397.3
314.2
64.7
359.7
357.2
74.2
366.9
354.3
78.0
376.6
343.9
85.4
400.1
333.8
86.2
402.6
334.2
86.4
406.6
334.4
87.0
410.7
331 7
87.3
Monc\ market mutual funds
17 Retail'
18 Institution-only
385.0
203.1
454.9
253.9
522.8
310.3
603.2
376.2
693.6
443.3
721.5
457.5
740.3
480.7
750.8
498.5
Repurchase agreements and Eurodollars
19 Repurchase agreements'2
20 Eurodollars'2
183.3
80.8
194.2
109.2
236.1
145.3
265.5
148.3
272.1
149.4
267.5
153.5
277.8
155.0
3.780.6
10.643.5
3,798.4
11,368.9
3 770.3
12,022.8
3.760.0
12.111.7
3.750.3
12,207.0
2M2
3 NO
4 Debt
5
6
7
8
Ml components
Currency'
Travelers checks4
Demand deposits5
Other checkable deposits6
Nonlransaclion components
9 In M27
10 In M3 only8
Commercial banks
11 Savings deposits, including MMDAs
12 Small time deposits'
13 Large time deposits10- "
.
Debt components
21 Federal debt
22 Nonfederal debt
3.492.4
9,506.3
3,638.9
10.056.7
8.6
373.6
246.5
Not seasonally adjusted
23
24
25
26
Measures
Ml
M2
M3
Debt
27
28
29
30
Ml components
Currency
Travelers checks4
Demand deposits5
Other checkable deposits6
....
1,174.4
3.523.4
4.353.2
13,001.3
1,152.4
3,672.0
4,615.2
13,697.0
1,104.9
3,845.4
4.948.9
14.424.4
1,097.6
4,065.3
5,394.0
15,166.8
1,067.7
4,245.1
5,712.9
15,748.3
1,068.9
4,284.2
5.768.5
15,835.6
1,074.7
4,324.3
5,841.0
15,917.8
1,092.2
4,379.1
5,929.7
357.5
8.1
400.3
408.6
376.2
8.5
407.2
360.5
397.9
8.3
419.9
278.8
429.0
7.9
413.0
247.7
444.3
8.2
374.2
241.0
448.2
8.1
457.3
7.8
381.1
239.9
452.5
8.1
372.9
241.3
2.349.0
829.7
2,519.6
943.2
2,740.5
1.103.5
2,967.8
1,328.6
3,177.4
1,467.8
3,215.3
1.484.3
3,249.6
1,516.6
3,286.9
1,550.5
Commercial banks
33 Savings deposits, including MMDAs
34 Small lime deposits9
35 Large time deposits10' "
751.7
501.5
298.9
774.1
573.8
345.8
903.3
592.7
413.6
1.019.0
624.1
488.0
1,120.1
626.6
528.0
1.133.5
627.0
528.3
1,146.1
628.4
531.0
1.166.2
629.1
535.1
Thrift institutions
36 Savings deposits, including MMDAs ..
37 Small time deposits9
38 Large time deposits10
396.8
313.2
64.8
359.2
355.9
74.3
366.4
353.2
78.1
375.9
343.0
85.4
400.9
333.9
86.2
402.0
333.9
405.2
334.4
88.3
410.4
86.8
Money market mutual funds
39 Retail
40 Institulion-only
385.9
204.6
456.4
255.8
524.8
312.7
605.8
378.9
695.9
441.1
719.0
451.3
735.6
475.4
749.9
497.3
Repute huse agreements and Eurodollars
41 Repurchase agreements12
42 Eurodollars
179.6
81.8
178.0
89.4
229.4
146.9
266.0
146.6
270.1
147.7
270.0
151.9
276.4
153.4
3,499.0
9.502.3
3,645.9
10,051.1
3,805.8
11,361 1
3,749.6
11,998.7
3,743.4
12,092.2
3,727.8
12,190.0
Nontransaction components
31 InM2 7
32 In M3 only8
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
3,787.9
10.636.5
372.6
246.0
331.3
88.4
A14
Domestic Financial Statistics • February 1999
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 starling in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash 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
adjusled Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs. each seasonally adjusted separately.
M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (lime deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted ML
M3- M2 plus (1) large-denomination time deposits (tn amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enter-
prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Commercial Banking Institutions—Assets and Liabilities A15
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A. All commercial banks
Assets and Liabilities'
Billions of dollars
Monthly averages
Account
1997
Nov.
Wednesday figures
1998
1998'
May
June
July
Aug.
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Other securities
5
Loans and leases in bank credit- . . .
6
Commercial and industrial
7
Real estate
8
Revolving home equity
9
Other
10
Consumer
11
Security'
12
Other loans and leases
13 Interbank loans
14 Cash assets4
1 5 Other assets5
4,073.6'
1,075.1
742.8
332.3
2,998.5r
845.4'
1,226.7'
96.8
1,129.?
SObff
99.7
319.8'
200.7'
273.1
295.4
4,249.8
1.126.1
772.0
354.0
3,123.7
882.6
1,271.3
98.0
1,173.3
504.9
123.2
341.7
203.1
250.7
312.5
4,262.9
1,121.6
756.9
364.7
3,141.3
892.8
1,270.8
97.8
1,173.1
501.3
130.3
346.1
218.4
250.3
312.6
16 Total assets 6
4.786.1'
4,9583
urns
3,105.4
693.6
2,411.8
633.3
1,778.5
814.1
300.7
513.4
185.0
280.3
3,205.5
687.8
2,517.6
674.9
1,842.7
861.9
282.1
579.8
174.4
299.3
3,223.2
683.2
2,540.1
685.4
1,854.7
858.3
287.9
570.4
170.6
308.0
4.384.8
4,541.0
17
18
19
20
21
22
23
^4
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)
7
401.3'
417.5
4.344.2
1.155.5
770.6
384.9
3,188.7
908.4
1,280.2
97.5
1.182.8
495.6
139.1
365.4
209.3
251.9
311.9
4,400.2
1,175.4
766.4
409.0
3,224.8
920.8
1.281.2
97.7
1,183.5
498.8
144.5
379.5
223.3
252.8
316.6
4,492.6
1.216.5
773.5
443.0
3,276.2
942.1
1,286.3
96.8
1,189.5
499.3
159.5
389.0
226.8
243.5
311.5
4,528.3
1,225.9
788.1
437.8
3,302.4
950.4
1,307.2
97.0
1,210.3
501.4
154.4
388.9
227.0
250.3
317.4
4,518.0
1,225.3
785.7
439.6
3,292.8
947.4
1,301.6
96.8
1,204.7
500.7
157.2
385.9
225.8
240.7
316.8
4,522.6
1,220.3
783.2
437.1
3,302.3
949.3
1,307.1
96.8
1.210.2
501.5
157.2
387.3
223.7
256.6
318.2
4,522.2
1.221.9
786.7
435.2
3,300.3
951.4
1,301.4
97.1
1,204.3
502.2
156.9
388.4
232.6
242.2
317.1
4,537.0
1.230.6
795.5
435.1
3,306.4
951.9
1,309.0
97.1
1 211.9
501.5
153.1
390.9
231.4
261.7
316.0
5,059.9
5,135.2
5.2163
5.264.6
5,242.9
5,262.8
5,255.8
5288.0
3,196-5
667.3
2,529.2
667.2
1,862.0
859.8
290.0
569.8
186.3
317.6
3,228.1
668.0
2,560.1
678.9
1,881.1
864.0
293.9
570.0
201.4
326.0
3,249.6
677.5
2,572.0
684.2
1,887.8
892.3
303.5
588.8
200.3
334.6
3,273.0
668.4
2,604.6
696.4
1.908.2
942.4
319.5
622.9
223.7
348.8
3,315.9
668.4
2,647.5
707.1
1,940.4
981.0
324.5
656.5
216.9
327.7
3,297.3
658.9
2.638.4
699.4
1,939.0
963.6
319.2
644.4
237.9
338.1
3,309.0
664.1
2,644.9
705.7
1.939.2
968.9
318.2
650.7
228.2
333.0
3,301.1
657.2
2,644.0
709.8
1,934.2
990.3
329.6
660.7
216.8
323.1
3,343.9
701.8
2,642.1
709.5
1.932.6
991.9
324.7
667.1
200.4
320.9
4,560.2
4,560.2
4.619.4
4,676.7
4,7875
4341.5
4,837.0
4,839.2
43312
4357.O
426.3
432.2
440.5
458.4
428.4
423.1
405.9
423.6
424.5
431.0
4,282.5
1.130.2
760.4
369.8
3,152.3
899.0
1,271.9
97.5
1,174.4
496.4
132.5
352.6
214.7
243.5
309.5
Not seasons lly adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
4^
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 .. .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets 5
44 Total assets 6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Oilier
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
....
4,081.2'
1,074.6
744.3
330.3
3,006.6'
844.1'
1,232.9'
97.5
1,135.4'
509.4'
100.6'
319.6'
2O6.Cf
283.0
296.5
4,244.8
1,130.8
776.7
354.1
3,114.0
888.2
1.265.1
97.6
1,167.4
499.6
122.6
338.5
198.7
246.3
312.0
4,264.3
1,124.5
759.4
365.1
3.139.8
895.5
12684
97.5
1.170.9
498.5
130.2
347.1
215.0
245.3
311.1
4.276.4
1,124.6
756.6
368.0
3,151.8
898.6
1,274.0
97.5
1,176.5
494.4
130.3
354.6
208.3
239.1
310.8
4.330.6
1,147.0
765.7
381.3
3,183.6
902.4
1.283.8
97.6
1,186.2
497.2
134.5
365.7
202.2
239.6
313.9
4 387 1
1,163.4
761.3
402.1
3,223.7
915.3
1,286.1
98.4
1,187.7
501.6
141.1
379.7
217.6
250.8
317.8
44962
1,212.8
770.9
441.9
3,283.4
940.0
1 293.0
97.6
1,195.4
501.1
160.0
389.2
222.9
247.3
310.7
4,536.6
1,225.6
789.2
436.3
3,311.1
948.9
1.313.9
97.7
1,216.2
503 9
155.7
388.6
233.4
259.6
318.5
4,544.9
1,233.6
788.8
444.8
3,311.3
949.4
1,309.6
97.7
1,212.0
501.1
161.4
387.7
233.5
243.9
319.0
4,529.9
1,220.9
784.5
436.4
3,309.0
947.1
1,315.8
97.6
1,218.2
503.3
157.0
385.7
230.0
263.8
320.3
4,529 9
1,220.9
786.9
434.0
3,309.1
950.7
1,307.7
97.9
1,209.7
504.6
157.6
388.5
240.2
255.8
317.4
4.534.4
1,224.5
794.4
430.1
3,309.9
949.4
1.314.1
97.7
1,216.4
504.2
154.2
388.0
230.8
263.4
315.3
4,809.9'
4,944.3
4,978.0
4^»76.8
5,028.6
5,115.3
5,218.9
5,289.7
5,282.7
5,285.5
5,284.8
5285.7
3.123.6
704.5
2,419.1
639.0
1,780.1
811.6
301.0
510.6
181.7
281.9
3,189.0
676.0
2,513.0
675.2
1,837.8
867.5
283.3
584.2
183.0
298.8
3,215.3
678.2
2,537.1
683.1
1,854.0
868.1
290.9
577.2
176.6
307.2
3,189.0
662.4
2,526.6
663 9
1,862.7
864.4
290.2
574.1
188.3
317.0
3,217.9
654.6
2,563.3
678.0
1,885.3
857.0
290.0
567.0
201.8
326.0
3,253.7
672.8
2,580.9
685.9
1.895.0
895.8
302.4
593.5
200.4
334.4
3.276.7
6644
2.612.3
700.4
1,912.0
938.7
315.4
623.3
220.5
348.5
3,334.5
679.1
2,655.4
7133
1.942.1
976.9
324.8
652.1
213.7
329.1
3,318.5
667.2
2,651.3
704.9
1,946.4
963.0
317.3
645.7
229.6
338.6
3,329.0
668.8
2,660.2
712.5
1,947.7
963.7
316.9
646.8
223.7
334.3
3,324.2
673.7
2,650.5
714.4
1.936.1
986.7
329.9
656.8
212.7
324.6
3,342.4
700.8
2,641.6
716.9
1.924.6
981.3
324.0
657.3
203.6
322.8
43983
4,538.2
43672
4,558.6
4,6017
4,684.2
4,78*5
4.854.1
4349.7
4,850.8
43482
4350.1
....
411.2'
406.1
410.8
418.2
425.8
431.1
434.4
435.6
433.1
434.7
436.7
435.6
57 Revaluation gains on off-balance-sheet
items8
58 Revaluation losses on off-balancesheet items'*
84.2
85.9
92.7
92.7
95.7
110.0
130.1
110.1
118.1
111.5
106.8
103.0
85.4
85.0
90.6
90.6
96.5
110.7
128.1
109.6
117.0
112.6
106.9
102.6
55 Total liabilities
56 Residual (assets less liabilities)7
MEMO
Footnotes appear on p. A21.
A16
1.26
Domestic Financial Statistics • February 1999
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities'—Continued
B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
1997
Account
Nov.
Wednesday figures
1998
1998'
May
June
July
Aug.
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assets^
....
16 Total assets6 ..
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
2 8 Residual (assets less liabilities)7
....
3.525.8'
883.7
663.3
220.5
2,642.1'
624.9'
1.200.1'
96.8
1.103.3'
506.9'
57.4
252.7'
177.1'
238.2
249.3
3.685.7
928.9
682.9
246.0
2,756.8
671.9
1,247.0
98.0
1.149.0
504.9
62.0
271.1
181.4
216.0
278.4
3,694.7
921.4
668.4
253.0
2,773.3
680.9
1,246.7
97.8
1,148.9
501.3
67.7
276.6
194 4
215.5
278.8
3,709.5
929.6
669.8
259.8
2.779.9
684.1
1.248.0
97.5
1,150.6
496.4
69.9
281.6
192.6
208.5
275.4
3.753.8
944.2
677.4
266.8
2,809.6
692.5
1,256.6
97.5
1,159.1
495.6
73.6
291.3
186.7
217.9
276.1
3.793.5
961.3
685.1
276.2
2,832.1
700.7
1,257.9
97.7
1.160.1
498.8
75.4
299.4
191.9
218.7
278.6
3,864.4
996.3
694.7
301.5
2,868.1
715.0
1.263.4
96.8
1,166.6
499.3
87.9
302.5
196.9
207.8
272.1
3,904.3
1,002.9
708.6
294.3
2,901.4
723.5
1,285.6
97.0
1,188.6
501.4
87.6
303.3
195.8
216.6
280.7
3.891.6
1.000.0
703.3
296.7
2,891.6
720.4
1,279.1
96.8
1.182.2
500.7
89.7
301.7
197.2
206.6
278.9
3,897.8
998.8
705.1
293.7
2,899.0
722.2
1.285.0
96.8
1,188.1
501.5
88.7
301.6
193.5
222.7
281.6
3,897.8
998.9
707.4
291.5
2,898.8
724.4
1,279.5
97.1
1.182.4
502.2
90.4
302.3
196.3
208.1
278.0
3,910.0
1.006.6
715.4
291.2
2,903.4
724.8
1,288.0
97.1
1,190.9
501.5
86.0
303.1
201.9
228.8
281.5
4,134.0'
4^04.1
4,326.0
4,328.4
4,377.5
4,425.2
4,483.4
4,539.3
4,516.3
4,537.5
4,522.2
4,564.3
2.832.6
683.4
2,149.2
374.1
1,775.1
657.8
271.7
386.1
67.9
184.2
2.910.2
676.3
2,233.9
391.7
1,842.2
698.5
259.7
438.8
73.3
211.9
2,920.1
672.0
2,248.0
393.1
1,854.9
691.2
258.4
432.8
73.4
218.1
2,898.4
653.7
2,244.7
384.1
1,860.6
690.1
263.4
426.7
79.3
224.2
2,921.1
656.0
2,265.1
383.6
1,881.5
694.2
270.1
424.1
92.8
226.9
2,933.8
662.5
2,271.3
382.5
1,888.8
708.2
271.2
436.9
105.1
230.8
2,952.5
653.7
2,298.8
394.7
1,904.1
748.6
283.9
464.7
117.7
241.8
2,998.8
656.4
2,342.4
407.3
1,935.1
787.2
287.6
499.6
117.6
225.6
2.984.8
645.5
2,339.3
403.7
1.935.6
771.9
286.3
485.6
119.5
232.6
2,995.0
653.2
2,341.8
406.6
1.935.2
777.2
288.2
489.0
121.9
232.0
2,980.7
644.2
2,336.5
408.4
1.928.1
792.5
291.2
501.3
115.8
221.4
3,022.5
690.0
2,332.5
407.2
1,925.3
797.9
284.3
513.6
116.9
219.4
3,742.5
3,893.8
3,902.7
3,892.0
3,935.0
3,977.9
4.060.6
4,129.2
4,108.8
4,126.1
4,110.5
4,156.7
391.5'
410.2
423.2
436.5
442.5
447.3
422.8
410.0
407.5
411.4
411.7
407.6
Not seasonally adjusted
Assets
29 Bank credit
30
Securities in bank credit
31
U.S. government securities
32
Other securities
35
Real estate
36
Revolving home equity
37
Other
38
Consumer
39
Security3
40
Other loans and leases
41 Interbank loans
42 Cash assets4
43 Other assets5
3.538.7'
886.9
663.7
223.2
2.651.8'
623.9'
1,206.0'
97.5
1.108.5'
509.4'
58.4'
254.0'
182.4'
247.3
249.8
3.679.1
929.7
687.0
242.7
2,749.4
678.0
1,240.8
97.6
1,143.2
499.6
62.0
268.9
177.0
211.9
277.5
3,693.1
921.2
670.8
250.4
2.771.9
683.7
1,244.4
97.5
1,147.0
498.5
67.8
277.4
191.1
209.5
278.1
3.700.6
921.2
666.3
254.9
2,779.4
683.9
1,250.4
97.5
1.152.9
494.4
68.4
282.4
186.2
204.2
277.0
3,737.8
931.4
671.7
259.7
2,806.4
687.6
1.260.2
97.6
1,162.7
497.2
69.9
291.4
179.6
205.6
277.2
3.785.5
952.5
680.0
272.5
2.833.0
696.3
1,262.8
98.4
1,164.4
501.6
72.3
300.0
186.3
216.5
279.8
3.868.6
992.3
691.6
300.6
2,876.3
713.1
1,269.9
97.6
1.172.2
501.1
88.3
304.0
193.0
211.4
272.3
3,920.2
1,007.9
708.8
299.0
2,912.3
722.4
1,292.0
97.7
1,194.3
503.9
89.1
304.9
202.3
225.0
281.3
3,916.6
1.007.4
704.4
303.0
2,909.2
721.3
1,286.8
97.7
1.189.2
503.1
93.5
304.5
204 9
209.2
281.0
3.911.6
1,003.3
704.7
298.6
2,908.3
720.4
1,293.5
97.6
1.195.9
503.3
89.1
302.0
199.8
229.2
283.2
3,914.7
1,004.4
707.5
297.0
2,910.3
724.0
1,285.5
97.9
1,187.6
504.6
91.8
304.4
203.9
220.8
278.1
3.919.2
1.008.9
714.5
294.4
2,910.4
723.0
1,292.9
97.7
1.195.1
504.2
87.2
303.0
201.3
229.8
280.1
44 Total assets6
4,161.6'
4,288.2
4,314.3
4,310.5
4,342.8
4,410.4
4,487.4
4,570.5
4.553.4
4,565.7
4,559.3
4,572.5
2,851.3
694.2'
2,157.0
378.5
1,778,5
655.3
272.0
383.3
64.0
184.2
2,890.9
664.7
2,226.2
389.9
1,836.3
704.1
260.9
443.2
80.9
211.9
2,910.3
667.0
2,243.3
390.7
1,852.6
700.9
261.3
439.6
80.1
218.1
2,892.7
648.7
2,244.0
383.0
1.861 0
694.6
263.6
431.0
84.9
224.2
2,912.2
642 6
2,269.6
386 0
1,883.6
687.2
266.2
421.0
96.7
226.9
2,936.4
657.1
2,279.3
385 9
1.893.3
711.7
270.1
441.6
106.8
230.8
2,956.7
649.6
2,307.1
398.1
1.909.0
744.9
279.9
465.1
115.5
241.8
3,018.4
667 2
2,351.2
412.4
1,938.8
783.1
287.9
495.2
113.7
225.6
3,007.3
653 6
2,353.6
408.8
1.944.8
771.3
284.4
486.9
115.1
232.6
3,015.4
658.0
2,357.4
411.8
1,945.6
772.1
286.9
485.1
117.3
232.0
3,006.2
660.8
2,345.4
413.5
1,931.9
788.9
291.6
497.3
112.0
221.4
3,021.4
689.2
2,332.2
412.4
1,919.8
787.3
283.6
503.8
114.6
219.4
3,754.7
3,887.8
3,909.4
3,896.4
3,923.0
3,985.7
4,059.0
4,140.7
4,126.2
4,136.7
4,128.5
4,142.7
406.9'
400.4
404.9
414.1
419.8
424.6
428.4
429.8
427.2
429.0
430.8
429.8
41.2
45.6
50.5
51.0
51.9
61.7
78.7
62.7
69.1
65 2
59 6
56 5
43.3
275.1
46.3
298.0
50.1
291.2
50.4
294.4
54.2
301.9
65.1
314.0
80.5
337.1
65.1
346.4
72.4
347.8
69.5
346.3
62.3
342.0
58.8
348.2
Loans and leases in bank credit 2
Commercial and industrial
33
34
45
46
47
48
49
50
51
....
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
52
From others
53 Net due to related foreign offices
54 Other liabilities
....
55 Total liabilities
56 Residual {assets less liabilities)7
MEMO
57 Revaluation gains on off-balance-sheet
items^
58 Revaluation losses on orf-balanceshect items8
59 Mortgage-backed securities4
Footnotes appear on p. A21.
Commercial Banking Institutions—Assets and Liabilities A17
1.26
COMMERCIAL BANKS IN THE UNITED STATES
C. Large domestically chartered commercial banks
Assets and Liabilities'—Continued
Billions of dollars
Monthly averages
Account
1997
Nov.'
Wednesday figures
1998'
May
June
July
Aug.
1998
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Trading account
5
Investment account
6
Other securities
7
Trading account
8
Investment account
9
State and local government .
10
Other
11
Loans and leases in bank credit2 . .
12
Commercial and industrial
13
Bankers acceptances
14
Other
15
Real estate
16
Revolving home equity
17
Other
18
Consumer
19
Security'
20
Federal funds sold to and
repurchase agreements
with broker-dealers
21
Other
22
State and local government . . . .
23
Agricultural
24
Federal funds sold to and
repurchase agreements
with others
25
All other loans
26
Lease-financing receivables . . . .
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
29
Other
30 Cash assets 4
31 Other assets 5
32 Total assets 6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities)
7
Footnotes appear on p. A21.
.. .
2,157.2
485.9
350.2
26.7
323.5
135.7
63.4
72.4
22.3
50.1
1.671.3
450.2
1.3
448.9
677.4
68.8
608.6
304.9
52.2
2,276.6
528.2
371.2
23.3
347.9
157.0
75.6
81.4
22.8
58.6
1,748.5
488.8
1.3
487.5
697.6
69.7
627.9
304.5
56.3
2,274.6
519.8
357.2
2.3.4
333.8
162 7
79.5
83.2
22.2
60.9
1,754.7
495 9
1.2
494.6
691.0
69.2
621.8
300 5
61.7
2274 3
521.8
355.7
20.4
335.3
166 1
81.1
85.0
22.4
62.6
1,752.5
497.4
1.3
496.1
6862
68/7
617.5
2950
63.9
2 305 0
532.5
361.6
21.3
340.3
170 9
83.1
87.7
22.6
65.1
1.772.5
502.8
1.3
501.5
687.4
68.6
618.8
296.1
67.4
2 336 1
547.3
368.1
22.0
346.1
179 2
89.5
89.8
23.2
66.6
1,788.7
5087
13
507.4
685 1
68.8
616.2
299.2
68.9
2 391 0
572.8
372.0
20.9
351.1
200.8
109.1
91.7
23.9
67 8
1,818.2
521.2
1.2
520.0
685 7
68.0
617.8
3002
81.3
2.406.6
569.3
380.0
23.4
356.6
1893
92.5
96.8
24.6
72.2
1,837.3
527.9
1.2
526.7
6978
67J
630.2
300.8
80.8
24079
573.5
378.8
24.9
353.8
194 7
98.7
96.0
24.2
71.8
1,834.5
525 6
1.3
526.1
696.9
67.7
629.2
301 7
82.6
2411 7
570.1
379.1
24.8
354.4
191 0
95.0
96.0
24.3
71 7
1,841.6
527.7
1.4
528.2
702 1
67.8
634.3
302 3
~81.7
2,394.9
563.0
377.7
22.6
355.1
185.3
88.2
97.0
24.6
72.4
1,831.9
528.8
1.3
529.2
690.0
67.7
622.3
300.1
83.7
2405 8
56M
384.8
23.5
361.3
1849
88^5
96.5
25.0
71.5
1,836.1
528.6
13
529.0
697.3
67.8
629.5
3002
79^6
35.9
16.4
12.0
10.0
37.7
18.6
11.3
10.1
42.9
18.9
11.3
10.1
44.9
19.0
11.1
9.9
48.0
19.4
11.5
9.9
50.1
18.8
11.6
9.9
63.3
18.0
11.6
9.9
63.5
17.3
11.9
10.0
643
183
12.1
9.9
64.0
17.7
12.0
10.1
65.7
17.9
11.8
10.0
62.8
16.8
11.7
10.0
9.2
74.6
80.7
126.1
5.8
79.9
94.2
118.6
5.6
83.6
95.1
128.4
8.9
83.7
96.3
123.6
9.9
88.8
98.7
115.4
12.3
93.0
100.0
in.2
12.9
93.9
101.4
122.3
12.3
92.9
102.8
123.7
12.5
90.8
102.4
120.8
10.8
92.6
102.4
117.3
14.1
90.8
102.5
125.5
10.6
95.0
103.0
132.1
86.5
39.6
169.8
190.9
67.1
51.5
150.4
217.8
76.8
51.6
149.1
214.8
69.8
53.8
143.6
212.3
62.2
53.2
151.0
211.4
63.9
53.3
151.1
210.8
73.2
49.2
140.8
202.1
74.9
48.8
147.8
205.7
71.6
49.2
139.3
207.9
66.2
51.1
151.9
207.4
78.4
47.1
143.2
203.5
83.9
48.2
156.7
204.0
2,6065
2,7253
2,728.9
2,715.9
2,7454
2,777.7
23183
2345.9
2337.8
23504
2329.2
2361.0
1,612.6
396.4
1,216.2
214.0
1,002.2
510.1
203.5
306.5
62.9
156.8
1,648.7
390.0
1,258.7
221.6
1,037.1
541.2
190.9
350.3
69.4
182.3
1.645.8
383.9
1,261.9
223.0
1,038.9
531.7
188.5
343.2
69.5
188.8
1,621.6
368.4
1,253.2
216.6
1,036.6
525.4
190.2
335.2
75.6
194.9
1,629.3
369.9
1,259.3
215.4
1,043.9
530.3
197.1
333 2
89.1
196.8
1,629.7
373.7
1,256.0
210.3
1,045.7
543.1
198.0
345.1
101.3
200.5
1.640.9
367.1
1,273.7
221.3
1,052.4
576.7
2O7.0
369.7
113.0
210.6
1,666.1
368.3
1,297.7
230.3
1,067.4
609.5
208.1
401.3
114.0
193.6
1,661.0
359.1
1,302.0
228.6
1,073.3
598.5
209.1
389.5
115.2
201.1
1,667.3
364.8
1,302.4
230.5
1,072.0
600.2
209.0
391.2
117.9
200.0
1,652.0
360.6
1,291.4
231.1
1,060.3
612 9
211.2
401.7
112.2
189.3
1,680.2
392.7
1,287.5
228.9
1,058.6
621.1
205.2
415.9
113.5
187.2
2342.4
2441.7
2435.9
24174
2,4455
2474.6
2,541.2
2583.2
25753
25854
25663
2,602.0
264.1
283.6
293.0
298.4
299.9
303.1
277.1
262.7
262.0
265.0
262.9
259.1
A18
1.26
Domestic Financial Statistics • February 1999
COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued
C. Large domestically chartered commercial banks—Continued
Wednesday figures
Monthly averages
1997
Account
Nov r
1998'
May
June
July
Aug.
1998
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
2,425.1
577.3
380.9
25.4
355.5
258.9
96.6
27.5
35.9
33.1
196.4
99.8
96.6
24.3
72.4
1,847.8
527.2
2.413.8
572.5
381.3
24.3
357.0
254.1
102.9
27.1
39.6
36.2
191.2
92.9
98.4
24.6
73.8
1,841.2
529.7
2414.7
574.7
386.5
23.5
362.9
259.2
103.8
27.3
39.7
36.7
188.2
90.2
98.0
25.0
73.0
1,840.1
527.9
Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities .
51
Other
52
One year or less
53
One to tive years
54
More than five years
55
Other securities
56
Trading account
57
Investment accounl
58
Slate and local government . .
59
Other
60
Loans and leases in bank credit- . .
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
....
66
Other
67
Commercial
68
Consumer
69
Security1
70
Federal funds sold to and
repurchase agreements
with broker-dealers
71
Olhcr
72
State and local government . . .
73
Agricultural
74
Federal funds sold to and
repurchase agreements
with others
75
All other loans
76
Lcase-tinancing receivables
77 Interbank loans
78
Federal funds sold to and
repurchase agreements
with commercial banks
79
Other
80 Cash assets4
81 Other assets5
82 Total assets'1
83
84
85
86
87
88
Linbililii'S
Deposits
Transaction
Nontransaclton
Large tune
Other
Borrowings
89
From banks in the U.S
90
From nonbanks in the U.S
91 Net due to related foreign offices
92 Other labilities
...
93 Total liabilities
94 Residual (assets less liabilities)7
...
2,170.6
492.2
IS 1.3
28.0
W.3
211.7
111.5
31.0
56.4
24.1
138.8
65.6
73.2
22.3
50.9
1,678.5
450.3
2,263.0
524.8
372.0
22.5
349.4
225.8
121.4
31.1
51.8
38.5
152.8
72.1
80.7
22.7
58.0
1,738.2
492.4
2,268.2
516.5
356.9
22.5
334.4
217.2
115.1
31.2
48.5
15 4
159.6
76.7
82.9
22.4
60.6
1,751.7
496.9
2.267.3
514.8
353.4
19.9
333.6
218.6
112.9
30.0
51.4
31.5
161.3
77.0
84.3
22.3
62.1
1,752.5
497.5
2,289.5
520.8
356.8
21.2
335.6
225.3
108.2
28.6
48.2
31.4
164.0
76.8
87.2
22 7
64.6
1,768.7
499.4
2,326.0
539.3
363.4
21.9
341.5
235.9
103.5
27.3
43.6
32.5
175.9
86.4
89.4
23.2
66.2
1,786.7
505.8
2,395.3
571.8
371.1
21.9
349.2
254.6
92.6
25.7
36.7
30.2
200.7
108.8
91.9
24.0
67.9
1,823.5
521.0
2,423.2
577.6
383.1
24.6
358.6
257.4
99.1
26.8
37.4
34.9
194.5
96.4
98.0
24.6
73.4
1,845.6
528.0
2.433.1
584.2
382.5
26.8
355.7
261.1
94.6
26.1
36.2
32.4
201.7
104.9
96.8
24.2
72.6
1,848.9
527.8
1.4
1.2
1.2
1.2
1.3
1.3
1.3
1.3
1.3
1.4
1.3
1.3
448.9
6814
491.2
689.8
69.2
380.4
237.4
300.5
56.3
495.7
688.1
69.0
378.5
235.2
299.3
61.9
496.3
688.4
68.9
379.9
235.9
294.8
62.3
498.1
690.7
68.9
382.2
236.4
297.7
63.7
504.5
688.4
69.4
378.3
237.6
301.1
65.8
519.7
689.8
68.6
380.5
237.8
301.1
81.7
526.7
702.1
68.4
391.4
239.2
301.7
82.3
526.5
702.0
68.4
393.2
240.3
302.8
86.4
525.9
707.6
68.4
398.9
240.4
302.8
82.0
528.3
694.3
68.5
385.6
240.2
300.9
85.1
526.6
699.9
68.4
390.8
240.7
301.0
80.8
!6.7
16.5
12.1
10.1
37.7
18.7
11.2
43.9
18.5
9.9
42.6
19.3
11.2
10.1
45.0
18.6
11.5
10.3
47.6
18.3
11.6
10.2
63.7
18.0
11.7
10.1
64.9
17.3
12.0
10.1
68.0
18.3
12.2
10.1
65.0
17.0
12.1
10.2
67.2
17.9
11.9
10.1
63.1
17.6
11.9
10.0
9.2
75.7
80.7
128.0
5.8
78.7
93.5
118.0
5.6
83.8
94.7
128.8
8.9
9.9
83.4
95 8
122.5
88.1
97.5
112.8
12.3
92.5
98.9
116.0
12.9
94.5
101.0
119.5
12.3
94.3
102.8
125.8
12.5
93.0
102.2
122.6
10.8
92.7
102.4
118.4
14.1
92.5
102.6
128.5
10.6
95.0
103.0
130.8
88.2
19.8
176.5
190.9
66.8
51.2
146.4
217.8
77.2
51.7
1440
214.8
69.1
53.5
140.0
212.3
60.4
52.4
140.9
211.4
63.4
52.7
149.6
210.8
70.5
49.0
144.4
202.1
76.5
49.2
153.9
205.7
73.8
48.8
141.3
207.9
67.4
51.0
156.7
207.4
80.4
48.1
152.7
203.5
156.9
2O4.0
2,6284
2,707.1
2,717.8
2,704.2
2,716.9
2,764.6
2323.4
2370.6
2,866.8
2,869.5
2,860.5
2368.7
1.624.8
402.9
1.221.8
218.5
1.003.3
508.0
204.8
303.2
59.0
156.8
1,628.9
380.5
1,248.4
219.8
1.028.6
546.4
191.5
355.0
77.1
182.3
1.639.4
380.4
1,259.0
220.6
1,038.4
5410
190.9
350.1
76.2
188.8
1,621.5
366.2
1.255.3
215.4
1,039.9
529.9
190.2
339.7
81.2
194.9
1,626.9
360.8
1,266.1
217.8
1.048.3
522.1
192.4
329.7
92.9
196.8
1,635.7
370.6
1,265.2
213.7
1,051.4
543.2
195.7
347.5
103.0
200.5
1,647.1
364.9
1,282.2
224.7
1,057.5
572.4
203.5
369.0
110.9
210.6
1.679.3
374.9
1,304.3
235.4
1,069.0
605.7
209.5
396.3
110.1
193.6
1.676.4
363.2
1,313.2
233.7
1,079.5
598.7
208.5
390.3
110.8
201.1
1,679.0
366.1
1.312.9
235.7
1,077.2
597.0
209.5
387.5
113.3
200.0
1.670.7
372.5
1,298.2
236.2
1,062.0
609.9
212.7
397.2
108.3
189.3
1,679.0
191.8
1.287.2
234.1
1.053.2
609.4
204.9
404.5
111.2
187.2
2,348.6
2,434.8
2,445.5
2,427.5
2,438.7
2,4824
2^41.0
Z588.7
2,587.0
2^89.2
2^78.2
2.586.8
279.8
272.3
272.3
276.7
278.2
282.1
282.4
281.8
279.8
280.2
282.3
281.9
41.2
45.6
50.5
51.0
51.9
61.7
78.7
62.7
69.1
65.2
59.6
56.5
43.3
229.8
155.4
46.3
247.0
165.4
50.1
239.0
157.4
50.4
241.6
157.5
54.2
248.3
160.8
65.1
259.1
166.8
80.5
279.3
189.0
65.1
286.0
196.3
72.4
289.8
197.2
69.5
287.7
196.1
62.3
282.5
192.6
58.8
288.4
199.1
74.4
81.6
81.5
84.1
87.5
92.3
90.3
89.7
92.6
91.5
89.9
89.3
2.3
34.4
2.8
36.0
3.2
3.5
35.3
3.)
35.6
3.7
36.8
4.4
38.5
3.1
3.0
3.1
39.1
38.9
39.2
3.3
39.4
3.2
39.3
694
372.4
218.2
305.8
53.2
111
10.3
82.1
48.8
MEMO
95 Revaluation gains on oft-balancesheet items*
96 Revaluation losses on off-balancesheet items*
97 Mortgage-backed securities"
98
Pass-through securities
99
CMOs. REMICs, and other
mortgage-backed securities . .
100 Net unrealized gains (losses) on
av;iilab]e-for-sale securities10 . .
101 Offshore credit to U.S. residents" ..
36.1
Commercial Banking Institutions—Assets and Liabilities A19
1.26
COMMERCIAL BANKS IN THE UNITED STATES
D. Small domestically chartered commercial banks
Assets and Liabilities1—Continued
Billions of dollars
Wednesday figures
Monthly averages
Account
Nov.'
1998
1998'
1997
May
June
July
Aug.
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
1,483.7
426.6
324.6
102.0
1.057.1
194.8
582.2
29.1
553.1
198.9
7.1
74.1
76.5
67.3
71.0
1,486.1
428.7
526.0
102.7
1,057.4
194.5
582.9
29.0
553.9
199.2
7.0
73.7
76.2
70.7
74.2
1.502.9
4.16.0
329.7
1061
1.066.9
195.6
589.5
29.4
560.1
202.1
Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Other securities
5
Loans and leases in bank credit2
6
Commercial and industrial
7
Real estate
8
Revolving home equity
9
Other
10
Consumer
11
Security1
12
Other loans and leases
13 Interbank loans
14 Cash assets4
15 Other assets-^
....
....
1,435.2
407.8
314.1
93.6
1,027.5
186.7
561.9
28.8
533.1
201.3
6.0
71.6
69.0
64.9
63.1
1,448.8
411.7
315.8
95.9
1.037 1
189.8
569.2
28.9
540.3
199.4
6.2
72.5
71.3
67.0
64.8
6.4
6.6
72.5
74.7
67.6
67.8
72.8
74.6
67.0
70.0
1.497 7
433.6
328.5
105.0
1,064.1
195.6
587 7
29.3
558.4
200 7
6.8
73.3
72.1
68.8
74.9
74.5
1.504.1
436.8
.110.5
106.2
1,067 3
196.1
590.7
29.3
561.4
201.3
6.4
72.8
69.8
72.1
77.5
1,527.5
1,578.8
1^97.1
1,612.5
1,632.1
1,647.5
1,665.1
1,693.4
1,678.4
1,687.1
1,693.1)
1,7033
1,220.0
287.0
933.0
160.1
773.0
147.7
68.2
79.6
5.0
27.4
1.261.5
2863
975.2
170.1
805.1
157.3
68.7
88 6
3.8
29.5
1,274.3
288.1
986.1
170.1
816.0
159.4
69.9
89.6
3.9
29.3
1,276.8
285 3
991.5
167.5
824.0
164.7
73.2
91.4
3.7
29.4
1,291.9
286.1
1,005.8
168.2
837.6
163.8
73.0
90.8
3.7
30.0
1,304.1
288.8
1,015.3
172.2
843.1
165.1
73.3
91.8
1.332.7
288.1
1.044.6
177.0
867.6
177.8
79.5
98.3
1,323.8
286.4
1,037.4
175.1
862.2
173.3
77.2
96 1
1.6
4.3
32.0
31.5
1,327.7
288.4
1.039.4
176.1
863.2
177.0
79.2
97.8
4.0
32.0
1,328.7
2817
1.045.1
177.3
867.8
179.6
80.0
99.6
.1.6
32.2
1.342.3
297.2
1.045.0
178.3
866.7
176.8
79.1
97.7
30.3
1.311.6
286.5
1.025.1
173.4
851.6
172.0
76 9
95.0
4.7
31.2
1,400.1
1,452.2
1,466.9
1,474.5
1,489.5
1,503.3
1,519.4
1^146.1
1,532.9
1,540.7
1,544.1
1354.7
127.4
126.6
130.2
138.0
142.6
144.2
145.7
147.4
145.5
146.4
148.9
148.6
1,497.0
430.3
325.7
104.6
1.066.7
194 4
589.9
29.3
560.5
202.3
1,483.4
423.1
321.9
101.3
1.060.3
193.4
584.9
1,486.5
426.0
323.9
102.1
1,060.5
193.2
585.9
29.2
556.6
200.6
1,501.0
411 9
326.2
105.8
1.069.1
1943
591.2
29 5
561.8
203.7
1,504.5
434.2
328.0
106.2
1.070.3
195.1
591.0
29.4
561.6
203.2
5.2
16 Total assets6
17
18
19
20
21
22
23
24
25
26
1.420.1
401.6
311.2
90.4
1,018.5
185.1
555.7
28.6
527.1
2008
60
71.1
66.0
66.4
63.9
1,457.4
414.0
317.0
97.0
1.043.4
192.0
572.8
28.9
5419
199.6
66.2
51.0
68.4
58.4
1.409.1
400.7
311.8
89.0
1,008.4
183.1
549.4
28.3
521.1
200.4
5.7
69.8
62.7
65.6
60.7
1,368.7
397.8
313.1
84.7
970.8
174.8
522.7
28.0
494.7
202.0
Liabilities
Deposits
Transaction . .
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
....
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
17
1 473 4
423.5
322.8
100.7
1.050.0
1918
577.7
28.8
548.8
199.1
6.7
7!.()
70.8
MS
14
32.2
Not seasons lly adjusted
Assets
29 Bank credit
30
Securities in bank credit
31
U.S. government securities
32
Other securities
33
Loans and leases in bank credit2
37
Other
38
Consumer
39
Security'
40
Other loans and leases
41 Interbank loans
42 Cash assets4
43 Other assets5
1.368.1
394.7
310.3
84.4
973.3
173.6
524.6
28.1
496.5
203.6
5.2
66.2
54.4
70.9
58.9
1.416.1
404.9
315.0
89.9
1.011.3
185.6
551.0
28.4
522.6
199.1
5.7
69.8
59.0
65.5
59.7
1.424.9
404.7
313.9
90.8
1,020.2
186.8
556.3
28.5
527.8
199.2
6.0
72.0
62.2
65.5
63.2
1,433.3
406.4
312.8
93.6
1,026.9
186.4
561.9
28.6
533.3
199.6
6.0
72.9
63.6
64.2
64.8
1,448.3
410.6
315.0
95.7
1.037 7
188.2
569.6
28.7
540.9
199.6
6.2
6.4
6.6
6.8
74.1
66.8
64.7
65.9
74.4
70.2
66.9
69.0
74.0
73.5
66.9
70.2
73.4
76.5
71.1
75.6
555.6
200.3
7.1
74.5
82.3
67.9
73.0
44 Total assets6
1,533.3
1,581.1
1,596.5
1,606.3
1,625.9
1,645.8
1,663.9
1,700.0
1,226.5
291.3
935.2
160.1
775.1
147.3
67.2
80.0
1.270.9
286.6
984.4
170.1
814.2
159.9
70.4
89.5
3.9
29.3
1,271.2
282.5
988.7
167.5
821.2
164.7
73.4
91.3
3.7
29.4
1,285.3
281.8
1,003.5
168.2
835.3
165.2
73.8
91.4
1,300.7
286.6
1,014.1
172.2
841.9
168.5
74 4
94.2
1,309.6
284.7
1,024.9
173.4
851.4
172.5
76.4
96.1
1.339.1
292.2
1,046.9
177.0
869.9
177.3
78 4
98.9
3.7
3.7
47
3.6
27 4
1,262.0
284.2
977.8
170.1
807.7
157.7
69.4
88.2
3.8
29.5
30.0
30.3
31.2
32.0
865.3
172.5
75.9
96.6
4.3
31.5
1,406.2
1,453.0
MS3.9
1,468.9
1,484.2
1,503.3
1,517.9
1,552.0
34
35
36
45
46
47
48
49
50
51
52
53
54
Commercial and industrial
Real estate
Revolving home equity
...
.
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
5.0
55 Total liabilities
56 Residual (assets less liabilities)
7
....
1,459.6
413.3
316.7
96.6
1.046.3
190.5
574.4
29.1
545.4
200.5
1.473.3
420 5
320.5
I(»).O
1.052.8
192.1
580.1
29.0
551.1
200.0
">9 1
7.0
67
6.4
71.9
72.6
75.9
73.2
75.3
68.1
74.6
72.6
70.5
73.0
76.1
1,686.7
1,696.3
1.698.8
1.703.9
1,330.9
1,336.4
291.9
1,044.5
176.1
868.4
175.1
77.4
97.7
1.335.5
288 4
1,047.2
177.3
869.9
179.1
78.9
1,342.4
297.4
1,044.9
178.3
866.6
177.9
78.7
99.2
290.4
1.IMO.4
175.1
814
32.0
HX)2
3.6
32.2
1.539.2
1.547.5
1350.4
1356.0
148.8
148.5
147.9
58.6
59.5
59.8
127.1
128.1
132.6
137.4
141.7
142.5
146.0
148.0
147.4
45.4
51.1
52.2
52.7
53.6
54.9
57.8
60.3
58.0
4.0
1.4
32.2
MEMO
57 Mortgage-backed securities 4
Footnotes appear on p. A2I.
A20
1.26
Domestic Financial Statistics • February 1999
COMMERCIAL BANKS IN THE UNITED STATES
E. Foreign-related institutions
Assets and Liabilities'—Continued
Billions of dollars
Wednesd y figures
Monthly averages
1997
Account
Nov.
1998
1998'
May
lune
July
Aug.
Sept.
Oct.
Nov.
Nov. 4
Nov. 11
Nov. 18
Nov. 25
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit'
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
....
Cash assets4
Other assets5
..
13 Total assets 6
14
15
16
17
18
19
20
21
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
22 Total liabilities
23 Residua] (assets less liabilities)7
. ..
547.7
191.3
79.5
111.8
356.4
220.5r
26.6
42.3
67 tf
23 6
34.9
46.1
564.1
197.1
89.1
108.0
366.9
210.7
24.4
61.2
70.7
21.8
34.8
34.1
568.2
200.2
88.5
111.6
368.0
211.9
24.2
62.5
69.4
24.0
34.8
33.8
573.0
200.7
90.6
110.0
372.4
214.9
23.8
62.6
71.0
22.1
35.0
34.1
590.4
211.3
93.2
118.1
379.1
215.9
23.7
65.5
74.0
22.6
33.9
35.8
606.7
214.1
81.3
132.8
392.6
220.0
23.3
69.1
80.2
31.4
34.2
38.0
628.2
220.2
78.7
141.4
408.0
227.0
22.9
71.6
86.4
29.9
35.6
39.4
624.0
223.0
79.5
143.5
401.0
226.8
21.7
66.8
85.7
31.2
33.7
36.7
626.4
225.2
82.4
142.8
401.2
227.0
22.5
67.5
84.2
285
34.1
37.9
624.8
221.5
78.1
143.4
403.3
227.1
22.1
68.5
85.6
30.2
33.9
36.7
624.4
222.9
79.3
143.6
401.5
227.0
21.9
66.5
86.1
36.3
34.1
39.1
627.0
224.1
80.2
143.9
403.0
227.2
21.0
67.0
87.8
29.5
32.9
34.5
6511
654.5
660.5
664.1
6824
710.0
732.9
7253
726.6
7253
733.6
723.7
272.8
10.3
262.6
156.3
29.0
127.3
117.1
96.1
295.3
115
283.7
163.4
22.4
141.0
101.1
87.4
303.2
11.1
292.0
167.2
29.6
137.6
97.2
89.9
298.1
13.6
284.5
169.8
266
143.2
107.0
93.4
307.0
12.0
295.0
169.8
23.8
146.0
108.5
99.1
3157
15.0
300.7
184.1
32.3
151.8
95.2
103.8
320.5
14.8
305.8
193.8
35.5
158.2
106.0
107.0
317.1
120
305.1
193.8
36.9
156.9
99.3
102.1
312.5
13.4
299.1
191.8
32.9
158.9
118.4
105.6
314.0
11.0
303.1
191.7
30.0
161.7
106.3
101.0
320.4
129
307.4
197.8
38.1
159.4
101.0
101.7
321.4
11.8
309.6
194.0
405
153.5
83.4
101.5
6423
647.2
657.5
6683
684.5
698£
7273
7123
728.2
713.0
720.8
7004
9.8'
7.3
3.0
-4.2
-2.0
11.1
5.5
13.0
-1.6
12.3
12.8
23.3
Not seasona lly adjusted
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
40 Total assets 6 . .
41
42
43
44
45
46
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
4 7 N e t d u e t o r e l a t e d f o r e i g n offices
4 8 O t h e r liabilities
....
49 Total liabilities
50 Residual (assets less liabilities)7
542.5
187.7
80.6
16.0
64.6
107.1
62.6
44.4
354.8
220.2'
26.9
42.2
65.5'
23.6
35.7
46.8
565.7
201.1
89.7
20.8
68.9
111.4
66.7
44.7
364.6
210.1
24.3
60.6
69.6
21.8
34.4
34.5
571.2
203.3
88.6
20.0
68.6
114.8
70.1
44.6
367.9
211.8
24.0
62.4
69.7
24.0
35.7
33.0
575 8
203.4
90.3
25.1
65.2
113.1
70.1
43.0
372.4
214.7
23.6
61.9
72.2
22.1
34.9
33.7
592.8
215.6
94.0
307
63.3
121.6
75.3
46.3
377.3
214.8
23.5
64.6
74 3
22.6
34.0
36.6
601.6
210.8
81.2
20.2
61.1
129.6
83.4
46.2
390.7
218.9
23.3
68.8
79.7
31.4
34.3
38.0
627.6
220.5
79.3
16.0
63.3
141.3
89.6
51.7
407.0
226.9
23.2
71.8
85.2
29.9
35.9
38.4
616.4
217.7
80.4
13.8
66.6
137.3
82.3
55.0
398.7
226.5
21.9
66.6
83.7
31.2
34.6
37.2
628 3
226.2
84.4
17 8
66.6
141.8
87.2
546
402.1
228.1
22.8
68.0
83.2
28.5
34.7
38.0
618.3
217.7
79.8
129
665
137.9
82.8
55.1
400.6
226.7
22.3
67.9
83.7
30.2
34.6
37.0
615 2
216.4
79.4
13 2
66.2
137.0
82.0
55 0
398.8
226.7
22.1
65.8
84.1
36.3
35.0
39.3
615.2
215.6
79.9
132
66J
135.7
80.1
55 6
399^6
226.4
21.2
67.0
85.0
29.5
33.6
35.2
6483
656.1
663.7
6664
685.8
704.9
731.5
719.1
7293
719.8
725.5
7132
272.3
102
262.1
1563
29.0
127 3
117.7
97.7
298.0
11.2
286.8
163.4
22.4
141.0
102.1
86.9
304.9
11.2
293.8
167 2
29.6
137 6
96.5
89.1
296.3
13.7
282.6
169.8
26.6
143.2
103.5
92.7
305 7
110
293.7
169.8
23.8
146.0
105.2
99.1
317.3
15.7
301.6
184.1
32.3
151.8
93.6
103.5
320.0
148
305.2
193.8
35.5
158.2
105.0
106.7
316.1
11.9
304.2
193.8
36.9
156.9
100.0
103.5
311.2
13.6
297.7
191.8
32.9
158.9
114.5
106.0
313.6
10.8
302.8
191.7
30.0
161.7
106.4
102.3
318.0
12.9
305.1
197.8
38.3
159.4
100.7
103.1
320.9
11 5
3094
194.0
40.5
153.5
89.1
103.3
644.1
6504
657.7
662.2
679.8
698.5
725.5
7133
723.4
714.0
719.6
7074
4.2
5.7
5.9
4.1
6.0
6.4
6.0
5.8
5.9
5.8
5.9
5.9
43.0
40.3
42.2
41.7
43.8
48.3
51.4
47.5
49.0
46.3
47.2
46.4
42.1
38.7
40.6
40.2
42.3
45.5
47.7
44.5
44.6
43.0
44.6
43.8
MEMO
51 Revaluation gains on off-balance-sheet
iremss
52 Revaluation losses on off-balancesheet items8
Footnotes appear on p. A21.
Commercial Banking Institutions—Assets and Liabilities A21
NOTES TO TABLE 1.26
NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A17-19 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
A22
1.32
Domestic Financial Statistics • February 1999
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December
1998
Item
1993
Dec.
1994
Dec.
1995
Dec.
1996
Dec.
1997
Dec.
May
June
July
Aug.
Sept.
Oct.
555,075
595,382
674,904
775,371
966,699
1,053,995
1,091,554
1,10237
1,119,816
1,15237
1,150,213
218,947
180,389
223,038
207,701
275,815
210,829
361,147
229,662
513,307
252,536
569,065
274,469
597,193
276,476
616,382
266,022
606,355
281,927
639,571
271,526
627,170
289,184
155,739
164,643
188,260
184,563
200,857
210,460
217,885
219,904
231,534
241,239
233,859
Financial companies'
2
3
Dealer-placed paper2, total
Directly placed paper , total
4 Nonfinancial companies
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
B. Bankers Dollar Acceptances1
Millions of dollars, not seasonally adjusted, year ending September2
Item
1995
1996
1997
1998
1 Total amount of reporting banks' acceptances in existence
29,242
25,832
25,774
14,363
2 Amount of other banks' eligible acceptances held by reporting banks
3 Amount of own eligible acceptances held by reporting banks (included in item 1)
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1)
1,249
10,516
709
7,770
736
6,862
523
4,884
11,373
9,361
10,467
5,413
1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United
States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks;
that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal
Reserve Act (12 U.S.C. §372).
1.33
PRIME RATE CHARGED BY BANKS
2. Data on bankers dollar acceptances are gathered from approximately 65 institutions;
includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and
agencies of foreign banks, and Edge and agreement corporations. The reporting group is
revised every year.
Short-Term Business Loans1
Percent per year
Date of change
1996—Jan.
Feb.
Rate
1
1
8.50
8.25
1997—Mar. 26
8.50
1998—Sept. 30
Oct. 16
Nov. 18
8.25
8.00
7.75
Period
Average
rate
1996
1997
1998
8.27
8.44
8.35
1996—Jan
Feb
Mar.
Apr
May
June
July
Aug
Sept
Oct
Nov.
Dec
8.50
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call
Period
1997
Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
8.25
8.25
8.30
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
Period
1998 Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.49
8.12
7.89
7.75
Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415)
monthly statistical releases. For ordering address, see inside front cover.
Financial Markets
1.35
INTEREST RATES
A23
Money and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
1998
Item
1995
1996
1998. week ending
1997
Aug.
Sept.
Oct.
Nov.
Oct. 30
Nov. 6
Nov. 13
Nov. 20
Nov. 27
MONEY MARKET INSTRUMENTS
1 Federal funds 123
2 Discount window borrowing2"4
3
4
Commercial paper3'5'6
Nonfinancial
1-month
2-month
5.83
5.21
5.30
5.02
5.46
5.00
5.55
5.00
5.51
5.00
5.07
4.86
4.83
4.63
4.95
4.75
5.22
4.75
4.80
4.75
4.89
4.68
4.54
4.50
n.a.
n.a.
n.a.
n.a.
5.57
5.57
5 56
5.50
5.50
5 48
5.44
5.37
5 31
5.14
5.08
5 04
5.00
5.14
5 06
5.05
4.99
4 98
5.11
5.09
5 08
5.11
5.26
5 13
4.95
5.14
4.84
5.07
n.a.
n.a.
n.a.
n.a.
5.59
5.59
560
5.51
5.51
5 50
5.45
5.38
5 32
5.18
5.12
509
5.04
5.19
5 15
5.09
5.03
504
5.16
5.17
5 16
5.16
5.32
5 24
5.01
5.17
5 13
4.87
5.11
5 10
5.93
5.93
5 93
5.43
5.41
5 42
5.54
5.58
5 62
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.81
5 78
5 68
5.31
5.29
5 21
5.44
5.48
5 48
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.81
5 80
5.31
5 3!
5.54
5 57
5.49
5 46
5.38
5 27
5.12
4 88
5.15
5.07
4 79
5.13
4 85
5.20
4 96
5.18
5.10
5.87
5.92
5.98
5.35
5.39
5.47
5.54
5.62
5.73
5.56
5.58
5.61
5.49
5.41
5.33
5.24
5.21
4.99
5.16
5.24
5.07
5.17
5.16
4.91
5.22
5.27
5.08
5.19
5.31
5.11
5.05
5.21
5.05
5.09
5.18
5.06
5 93
5 38
5 61
5 56
5 39
5 17
5 21
5 13
5 21
5 30
5.49
5.56
5.60
5.01
5.08
5.22
5.06
5.18
5.32
4.90
4.95
4.94
4.61
4.63
4.50
3.96
4.05
3.95
4.41
4.42
4.33
4.12
4.11
3.93
4.43
4.43
4.27
4.42
4.43
4.34
4.35
4.38
4.33
4.47
4.45
4.38
5.51
5.59
5 69
5.02
5.09
5 23
5.07
5.18
5 36
4.94
4.97
5 00
4.74
4.75
451
4.08
4.15
4 06
4.44
4.43
4.07
4.16
4.43
4.36
4.47
4.50
4.40
4.43
4.45
4.43
5 94
6.15
6.25
6.38
6.50
6.57
6.95
6.88
5.52
5.84
5.99
6.18
6.34
6.44
6.83
6.71
5.63
5.99
6.10
6.22
6.33
6.35
6.69
6.61
5.21
5.27
5.24
5.27
5.36
5.34
5.66
5.54
4.71
4.67
4.62
4.62
4.76
4.81
5.38
5.20
4.12
4.09
4.18
4.18
4.46
4.53
5.30
5.01
4.53
4.54
4.57
4.54
4.78
4.83
5.48
5.25
4.10
4.10
4.20
4.22
4.47
4.63
5.35
5.12
4.46
4.40
4.50
4.45
4.75
4.83
5.54
5.29
4.52
4.52
4.57
4.51
4.79
4.82
5.48
5.27
4.54
4.62
4.60
4.59
4 79
4.85
5.46
5.26
4.59
4.64
4.64
4.62
4.80
4.83
5.46
5.21
6.93
6.80
6.67
5.64
5.34
5.24
5.43
5.29
5.48
5.43
5.42
5.40
5.80
6.10
5.95
5.52
5.79
5.76
5.32
5.50
5.52
5.01
5.15
5.10
4.84
5.11
4.99
4.76
5.10
4.93
4.87
5.15
5.03
4.85
5.17
5.00
4.88
5.13
5.04
4.86
5.14
5.04
4.86
5.15
5.03
4.86
5.18
5.01
7.83
7.66
7.54
6.83
6.75
6.77
6.87
6.85
6.99
6.89
6.86
6.77
7.59
7.72
7.83
8.20
7.37
7.55
7.69
8.05
7.27
7.48
7.54
7.87
6.52
6.77
6.89
7.14
6.40
6.68
6.82
7.09
6.37
6.70
6.85
7.18
6.41
6.79
6.95
7.34
6.44
6.76
6.93
7.26
6.56
6.90
7.07
7.42
6.44
6.81
6.98
7.34
6.39
6.77
6.95
7.33
6.28
6.70
6.85
7.28
2.56
2.19
1.77
1.48
1.59
1.59
1.43
1.53
1.47
1.46
1.42
1.37
Financial
7
2-month
Commercial paper (historical)*'5-1
10
3-month
Finance paper, directly placed (historical)3J'8
13
3-month
15
Bankers acceptances3'5'9
3-month
17
18
19
Certificates of deposit, secondary market3'10
1-month
3-month
6-month
US. Treasury bills
Secondary market3'5
21
3-month
22
6-month
24
Auction high 3 5 1 2
3-month
27
28
29
30
31
32
33
34
Constant maturities '
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
U.S. TREASURY NOTES AND BONDS
Composite
35 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series
37 Baa
38 Bond Buyer series15
CORPORATE BONDS
39 Seasoned issues, all industries16
40
41
42
43
Rating group
Aaa
Aa
A
Baa
MEMO
Dividend-price ratio11
44 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages
(http://www.federalreserve.gov/releases/cp) for more information.
7. An average of offering rates on commercial paper for firms whose bond rating is AA or
the equivalent. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies. Series
ended August 29, 1997.
9. FRASER
Representative closing yields for acceptances of the highest-rated money center banks.
Digitized for
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
Al rating. Based on Thursday figures.
16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
NOTE. Some of the data in this table also appear in the Board's H.I5 (519) weekly and
G.13 (415) monthly statistical releases. For ordering address, see inside front cover.
A24
1.36
Domestic Financial Statistics • February 1999
STOCK MARKET
Selected Statistics
1998
Indicator
1995
1996
1997
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Prices and trading volume (averages of daily figures)1
Common slock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 - 50)
291.18
367.40
270.14
110.64
238.48
357.98
453.57
327.30
126.36
303.94
456.99
574.97
415.08
143.87
424.84
560.70
693.13
508.06
191.67
539.47
578.05
711.89
523.73
207.32
563.07
574.46
712.39
505.02
198.25
551.28
569.76
731.01
492.98
188.26
548.57
586.39
718.54
503.89
189.95
579.67
539.16
665.66
441.36
186.24
511.22
506.56
629.51
408.75
186.17
454.28
511.49
636.62
396.61
195.09
448.12
564.26
704.46
442.95
206.29
501.45
6 Standard & Poor's Corporation
(1941-43 - 10)
541.72
670.49
873.43
1,076.83
1,112.20
1,108.42
1,108.39
1,156.58
1,074.62
1,020.64
1,032.47
1,144.43
7 American Stock Exchange
(Aug. 31, 1973 = 5O)3
498.13
570.86
628.34
722.37
742.33
735.02
704.59
724.83
655.67
621.48
607.16
667.60
345,729
20,387
409,740
22,567
523,254
n.a.
619,366
28,943
647,110
29,544
569,239
27,004
605,576
25,447
639,744
26,473
712,710
32,721
790,238
33,331
808,816
31,946
668,932
27,266
3
Transportation
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-dealers4
76,680
97,400
126,090
140,340
140,240
143,600
147,700
154,370
147,800
137,540
130,160
139,710
16,250
34,340
22,540
40,430
31,410
52,160
27,430
51,340
28,160
51,050
26,200
47,770
29,840
51,205
31,820
53,780
38,460
53,850
41,970
54,240
43,500
54,610
40,620
56,170
Free credit balances at brokers
12 Cash accounts
Margin requirements (percent of market value and effective date)7
13 Margin stocks
15 Short sales
Mar. 11, 1968
June 8. 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
1. Daily data on prices are available upon request to the Board of Governors. For ordering
address, see inside front cover.
2. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
5. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
Jan. 3, 1974
50
50
50
6. Series initiated in June 1984.
7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization; such maintenance margin rules
must be approved by the Securities and Exchange Commission.
Federal Finance A25
1.38
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Fiscal year
Type of account or operation
1995
1996
June
US. budget'
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit ( - ) , total
8
On-budget
9
Off-budget
July
Sept.
Oct.
1,351,830
1,000,751
351,079
1,515,729
1,227,065
288,664
-163,899
-226,314
62,415
1,453,062
1,085,570
367,492
1,560,512
1,259,608
300,904
-107,450
-174,038
66,588
1,579,292
1,187,302
391,990
1,601,235
1,290,609
310,626
-21,943
-103,307
81,364
187,860
144,973
42,887
136,754
125,606
11,148
51,106
19,367
31,739
119,723
87,820
31,903
143,807
115,714
28,094
-24,084
-27,894
3,809
111,741
79,135
32,606
122,907
92,555
30,352
-11,166
-13,420
2,254
180,936
149,726
31,210
142,725
107,900
34,814
38,222
41,826
-3,604
119,974
90,064
29,910
152,436
123,687
28,749
-32,462
-33,623
1,161
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (—)). .
12 Other 2
171,288
-2,007
-5,382
129,712
-6,276
-15,986
38,171
604
-16,832
-12,618
-36,144
-2,344
-16,370
36,210
4,244
33,989
-362
-22,461
-46,413
-2,451
10,642
15,330
2,661
14,471
20,335
-25,582
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
37,949
8,620
29,329
44,225
7,700
36,525
43,621
7,692
35,930
72,275
18,140
54,135
36,065
4,648
31,417
36,427
6,704
29,722
38,878
4,952
33,926
36,217
4,440
31,776
15,882
5,219
10,663
1. Since 1990, off-budget items have been the social security trust funds (federal old-age
survivors insurance and federal disability insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;
113,978
81,836
32,142
131,095
100,078
31,017
-17,117
-18,242
1,125
22,364
net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the US. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the US. Government.
A26
1.39
Domestic Financial Statistics • February 1999
U.S. BUDGET RECEIPTS AND OUTLAYS'
Millions of dollars
Calendar year
Fisca year
1996
Source or type
1997
1997
1998
1998
1998
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
I All sources
2 Individual income taxes, net
3
Withheld
4
Nonwithheld
5
Refunds
Corporation income taxes
6
Gross receipts
7
Refunds
8 Social insurance taxes and contributions, net . . .
9
Employment taxes and contributions"
10
Unemployment insurance
11
Other net receipts"
P Excise taxes
13 Customs deposits
15 Miscellaneous receipts"
1,579,292
1,721,421
707,552
845,527
773,812
922,632
180,936
119,974
113,978
737,466
580,207
250,753
93,560
828,597
646,481
281,527
99.476
123,884
279,988
53,491
9.604
400,436
292,252
191,050
82,926
154,072
106,865
58,069
10,869
447,514
316,309
219,136
87,989
90,479
53,342
39,853
2,729
60,255
54,277
7,098
1,120
51.341
52,530
2,214
3,404
204,493
22.198
539.371
506,751
28,202
4,418
213,270
24.593
571,835
540,016
27,484
4,335
95,364
10,053
240.126
227,777
10,102
2.245
106,451
9,635
288,251
268,357
17,709
2,184
104,659
10,135
260,795
247.794
10,724
2.280
109,351
14,220
312,713
293,520
17,080
2,112
38,928
2,128
43,079
42,540
206
333
6,547
4,789
41,237
39.690
1,142
405
4,805
1,364
45,926
42,940
2,655
331
56,924
17,928
19,845
25,465
57,669
18,297
24.076
32,270
27,016
9,294
8,8.15
12.889
28,084
8,619
10,477
12.866
31,133
9,679
10,262
13,348
29.922
8,546
12,971
15,837
2,961
1,701
2,356
3,572
9,630
1,776
2,089
3,228
6,021
1,380
2,132
3,738
1,601,235
1,651,383
800,177
797,418
824,370
815,886
142,725
152,436
131,095
270,473
15,228
17.174
1,483
21,369
9.032
270,407
13,144
19,632
1,?59
21,897
14.306
119,402
8,512
8,260
695
10,307
11.037
132,698
5,740
8,938
803
9,628
1.465
140,873
9,420
10,040
411
11,106
10,590
129,351
4,610
9.426
957
10.051
2.387
24,748
1,123
1,824
892
2,115
2,780
25,730
169
1,550
-135
1,859
3,287
18,173
4,924
1,558
-218
2,080
5,620
-14.624
40,767
11,005
907
36,610
10.437
-5,899
21,512
5,498
-7,575
16,847
5.678
-3,526
20,414
5.749
-2,481
16,196
4,863
8.136
3,997
1,115
1,078
3,445
1,260
-701
3,447
1.405
OUTLAYS
16 All types
17 National defense
18 International affairs
19 General science, space, and technology
21 Natural resources and environment
22 Agriculture
23
24
25
26
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
27 Health
29 Income security
30 Veterans benefits and services
3! Administration of justice
34 Undistributed offsetting receipts6
53,008
52,214
27.524
25,080
26,851
25.928
4,455
4,861
4,111
121,843
555,273
230,886
131.015
572.046
232.949
61.595
'69,412
107,631
61,809
778,861
124.034
63,552
283,109
106.353
65,053
286.305
125.196
11,293
47,555
17,109
12.572
50,544
20,104
10,477
43,728
14,644
39,313
20,197
12,768
244,011
-49.971
41.782
22,612
13.903
241,151
-47,194
21,109
9,583
6,546
122,573
-25,142
17,697
10,670
6,623
122,655
-24.215
22,077
10,212
7,302
122,620
-22,795
19,615
11.287
6,139
122,345
-21,340
3,432
1.675
2,199
15,976
-7.909
5,465
1.899
2,377
19,442
-3,078
1,841
2,067
1,418
19,350
-2,828
1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do not correspond to calendar year data because revisions from the Budge! have not
been fully distributed across months
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget. Budget of the U.S.
Government, Fiscal Year 1999; monthly and half-year totals: U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government.
Federal Finance
1.40
All
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1997
1996
1998
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
5,260
5,357
5,415
5,410
5,446
5,536
5,573
5,578
5,556
2 Public debt securities
i
Held by public
4
Held by agencies
5,225
3,778
1.447
5,323
3,826
1.497
5,381
3,874
1.507
5,376
3,805
1,572
5,413
3,815
1.599
5,502
3,847
1,656
5,542
3,872
1,670
5,548
3,790
1,758
5,526
3,761'
1,766'
35
27
8
34
27
8
34
26
8
14
26
7
33
26
7
34
27
7
31
26
5
30
26
4
29
26'
4'
5,137
5,237
5,294
5,290
5,328
5,417
5,457
5.460
5,440
5,137
0
5,237
0
5.294
0
5,290
0
5,328
0
5,416
0
5.456
0
5.460
0
5,439
0
5,500
5,500
5,500
5,500
5,950
5,950
5,950
5.950
5,950
6
7
Held by public
Held by agencies
& Debt subject to statutory limit
9 Public debt securities
10 Other debt1
MEMO
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
rticipation
certificates, notes to international lending organizations, and District of Columpart...
r
bia stadium bond:
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
12
13
14
15
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds1
NonmarketableO 2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series
Non-interest-bearing ..
By holder'
U.S. Treasury and other federal agencies and t
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local treasuries6"7
Individuals
Savings bonds
Other securities
Foreign and international
Other miscellaneous investors7'9
1994
Q4
Ql
Q2
Q3
4,800.2
4,988.7
5.323.2
5,502.4
5,502.4
5,542.4
5,547.9
5,526.2
4,769.2
3,126.0
733.8
1.867.0
510.3
4,964.4
3.307.2
2,068.2
139.1
35.4
36.4
.0
181.2
1,681.5
7.2
5,540.2
3,369.5
641.1
2,064.6
598.7
50.1
2.170.7
155.0
1.666.7
7.5
5,494.9
3,456.8
715.4
2.106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5
5,535.3
3.467.1
720.1
2,091.9
598.7
42.5
42.5
.0
177.8
1,259.8
31.0
5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2.038.1
124.1
36.2
36.2
.0
181.2
5,518.7
2,010.3
521.2
n.a.
1.657.2
104.5
40.8
40.8
.0
181.9
1,299.6
24.3
5,317.2
3,459.7
777.4
2,112.3
555.0
n.a
1.857.5
101.3
37.4
47 4
.0
182.4
1,505.9
6.0
1,257.1
374.1
3,168.0
290.4
67.6
240.1
224.5
541.0
1,304.5
391.0
3,294.9
278.7
71.5
241.5
228.8
469.6
1,497.2
410.9
3.411.2
261.8
91.6
214.1
258.5
482.5
1,655.7
451.9
3,393.4
269.8
88.9
224.9
265.0
493.0
1,655.7
451.9
3,393.4
269.8
88.9
224.9
265.0
493.0
180.5
150.7
688.7
784.6
185.0
162.7
862.2
794.9
187.0
169.6
1,135.6
610.5
186.5
168.4
1,278.0
418.8
186.5
168.4
1,278.0
418.8
n.a.
1,643.1
132.6
The US. Treasury first issued inflation-indexed securities during the first quarter of
7.
1997.
2 Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and scries denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and olher federal agencies and trust funds.
5. Data for Federal Reserve Banks and US government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. Includes state and local pension funds.
1996
760.7
3,331.0
637.7
2,009.1
610.4
180.7
1,769.1
7.7
41.9
2.187.7
164.4
35.1
35.1
.0
180.8
1,777.3
7.5
1,670.4
400.0
3,430.7
278.6
84.8
182.2
268.1
444.8
1.757.6
458.4
3,330.6
263.7
82.7
185.0
267.2
464.7
1,765.6
458.1
3,301.0
260.0
84.2
188.0
271.4
469.0
186.3
165.8
1,240.3
579.8
186.0
165.0
1,248.6
467.7
186.0
166.4
1,217.2
458.9
41.5
36.0
36.0
.0
7 In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.
8. Consists of investments of foreign balances and international accounts in the United
States.
9. 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.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United Slates; data by holder, Treasury Bulletin.
A28
1.42
Domestic Financial Statistics • February 1999
U.S. GOVERNMENT SECURITIES DEALERS
Transactions1
Millions of dollars, daily averages
1998
1998, week ending
Item
Sept
Aug.
Sept. 30
Oct.
Oct. 7
Oct. 14
Oct. 21
Oct. 28
Nov. 4
Nov. 11
Nov. 18
Nov. 25
OUTRIGHT TRANSACTIONS 3
1
2
3
4
5
6
7
8
9
By npe of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
Bv t\pe of counterparty
With interdealer broker
US Treasury
Federal agency
Mortgage-backed
With other
13 U.S. Treasury
14 Federal agency
15 Mortgage-backed
10
11
12
32,286
35,694
30.362
28,504
32.697
35,896
28.238
23,097
36,927
37,505
37,730
27,247
137,256
77.455
717
141,855
85.071
1,173
131,248
94,390
1,497
130,825
85.452
1,140
143,434
118,793
2,373
151,181
105,846
1,269
114,620
84,090
1.631
124,634
77,072
949
119,017
79,512
799
113,914
100,016
723
116,567
66,838
566
106,682
59,214
561
37.530
46.151
46,265
50.771
53,568
52,068
44,117
35,723
48,124
44,257
45,013
38,786
1,095
1.127
700
1,036
551
484
521
1,260
556
1,007
1.089
749
4,118
3,583
72,609
4,853
2,911
89,908
4,864
4,640
92.708'
4,003
2,769
71,093
4.308
5.025
108,039
3,584
6,617
128,064
6.699
3,610
79.636
5,164
3,304
73,179
3,480
5,642
65.166
3,828
6,525
98.205
3,695
3,377
68,541
2.465
1.994
47.392
135,577
3,012
22,350
146,046
3,186
30,665
146,311
3,478
31,293
135,153
3,264
26,631
168,025
3,447
35.696
162,670
3,866
38,483
132,907
4,178
28.725
129,516
2,960
26,810
134,810
2,328
23,531
142,375
2,325
29,348
119,988
2,306
24.085
106,181
1,954
17,183
112,136
43,314
50,258
117,747
51,856
59,243
111,185
52,991
61,415'
110,769
55,315
44,462
129,272
60.004
72,343
131,521
58,886
89.581
95,673
50.769
50.912
96,236
42,490
46,369
101,445
55,474
41,635
109,782
53,292
68,857
101,713
50,868
44,456
87,522
42.039
30.209
n.a.
n.a.
FUTURES TRANSACTIONS'
16
17
18
19
20
21
22
23
24
flv t\pe of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
95
180
0
0
n.a.
n.a.
5,907
18,177
0
4,378
20,105
0
3,296
19,467
0
2,724
15.948
0
n.a.
3,238
25,518
0
4,181
23,107
0
0
2,969
16,867
0
2,932
15,132
0
3,395
14,398
0
0
3,049
19,134
0
2,659
15,334
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
87
3,522
16,172
0
OPTIONS TRANSACTIONS 4
/?> type of underlying security
25 U.S.' Treasury bills
Coupon securities, by maturity
26
Five years oi less
27
More than five years
28 Inflation-indexed
Federal agency
29 Discount notes
Coupon securities, by maturity
30
One year or less
31 More than one year, but less than
or equal to five years
32
More than five years
33 Mortgage-backed
0
0
0
0
0
0
0
0
0
0
0
0
1,790
6,496
0
1.984
6,152
0
1,685
8,125
0
1.950
0
0
2,139
9,520
0
3.083
10,416
0
1,006
8,843
0
1,067
4,910
0
997
6,295
0
1,123
6,655
0
1,567
6,364
0
805
4,126
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
793
0
0
745
0
0
862
0
0
0
0
0
1.531
0
0
1,005
0
553
0
0
861
0
0
1,821
0
0
682
0
0
480
1. Transactions are market purchases and .sales of securities as reported to the Federal
Reserve Bank of New York by the US- government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in five business days or less and "when-issued"
securities thai settle on the issue date of offering- Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in tliirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.
n.a
0
387
n.a.
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more dian five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE "n.a." indicates that data are not published because of insufficient activity.
Federal Finance
1.43
U.S. GOVERNMENT SECURITIES DEALERS
A29
Positions and Financing1
Millions of dollars
1998
Aug.
1998, week ending
Sept.
Oct.
Sept. 30
Oct. 7
Oct. 14
Oct. 21
Oct. 28
Nov. 4
Nov. 11
Nov. 18
Positions2
NET OUTRIGHT POSITIONS 3
fiv type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2
Five years or less
4 Inflation-indexed
Federal agency
3,981
853
-9,335
-2,612
-13,643
-6,447
-7,089
-9,841
-10,085
-5,730
-7,128
-18,708
-11,060
2,305
-5,360
-2,004
1,554
1,196
6,412
2,705
-981
-2,708
1,403
851
4,129
3.442
-4,303
5,759
2,895
1,875
7,872
2,397
4,652
8,849
2.225
5,186
4,171
2,381
2,529
7,601
2,153
-499
10.547
1,703
16,408
17,211
18,395
11,696
25.268
19,174
12,984
16,621
17,306
21,745
16,948
2,756
2,668
1,870
1,649
1,692
1,923
1,872
2,037
1.765
1,587
2,473
5,821
8.784
61.657
4,801
6,913
58,415
5,119
6,797
48,954
3,678
7,320
48,856
4,140
7,996
57,363
4,447
7,630
49,939
6,601
6,904
52,229
5,809
5,649
39,854
3,903
4,485
40,623
4,172
5,391
41,319
2,954
6,935
36,771
-51
245
-9,949
-26,133
0
-5,152
-22,823
0
-3,919
-26,286
0
-4,721
-33,074
0
Coupon securities, by maturity
7
8
More than one year, but less than
More than five years
NET FUTURES POSITIONS 4
By type of deliverable security
10 U.S. Treasury bills
Coupon securities, by maturity
11 Five years or less
12 More than five years
1,144
606
0
119
-4,879
-32,741
0
-8,716
-25,612
0
-9,070
-24,562
0
-8,941
-22,013
0
-7,958
-25,637
0
-10,275
-23,512
0
-9,776
-23,713
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-1,560
-3,080
n.a.
-955
-3,045
n.a.
-1,738
-2,696
n.a.
-2.316
-1,461
n.a.
-1,947
-1,502
n.a.
Federal agency
Coupon securities, by maturity
15 One year or less
16 More than one year, but less than
or equal to five years
17 More than five years
NET OPTIONS POSITIONS
By type of deliverable security
19 US Treasury bills
Coupon securities, by maturity
22 Inflation-indexed
Federal agency
-827
-2,842
0
-1,153
-2,553
0
-1,301
-3,788
n.a.
-2,147
-3,227
0
-1,125
-6,126
n.a.
-1,377
-3,371
n.a.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
n.a.
n.a.
1,954
n.a.
n.a.
1,629
0
0
0
718
n.a.
n.a.
1,477
n.a.
n.a.
4,126
0
0
0
0
n.a.
3,670
n.a.
3,423
n.a.
3,033
n.a.
2,956
0
n.a.
2,229
Coupon securities, by maturity
25
More than one year, but less than
or equal to five years
26
More than five years
27 Mortgage-backed
n.a.
3.160
Financing5
Reverse repurchase agreements
333.413
829 365
316,256
784 437
278,468
847 663
305,281
745 625
312.432
840 221
294,925
828 127
279,853
852 680
234,286
857 572
260.682
875 786
217,473
906,415
253.440
683,253
221.150
95 383
229,685
99 774
234,431
109 805
231,337
96 405
244,842
112 224
241,930
109 744
234,178
108 871
223,142
109 811
219,573
106 468
209,364
113 261
219,514
97 449
2,770
3,152
2,851
2,752
2,805
2,772
2,886
2,922
2,900
2,741
3,494
60
Repurchase agreements
34 Overnight and continuing
35 Term
735,478
728,531
718,744
704,430
666,957
777,445
654,319
689,560
715,752
764,886
694,273
762,433
669,662
785,555
611,149
788.597
613,268
796,830
566,780
834,146
631,286
598,187
Securities loaned
36 Overnight and continuing
37 Term
12,518
3,830
11,057
4,119
8,157
3,947
13,432
4,925
8,473
4,121
8,511
4,186
6,495
3,673
8,919
3,781
8,693
4,011
8,483
4,117
9,069
4,085
Securities pledged
38 Overnight and continuing
39 Term
49,094
5,612
52,222
5,624
53,861
5,112
55.811
5,231
57,482
5,063
52,978
4,797
49,743
5,412
54,765
5,266
54,969
4,904
45,686
4,789
49,081
489
Collaleralized loans
40 Total
21.580
14,140
21,841
10,311
24,276
19,091
23,000
21,054
21,712
23,009
26,943
29 Term
Securities borrowed
31 Term
Securities received as pledge
32 Overnight and continuing
33 Term
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate positions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
"when-issued" securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
A30
1.44
Domestic Financial Statistics • February 1999
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
1995
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department
4
Export-Import Bank '
5
Federal Housing Administration
6
Government National Mortgage Association certificates of
participation
7
Postal Service6
8
Tennessee Valley Authority
9
United States Railway Association
May
June
July
738,928
844,611
925,823
1,022,609
1,044,575
1,061,253
1,117,705
39,186
6
3,455
116
37,347
6
27,792
6
552
102
26,995
6
542
108
26.817
6
1,295
144
26,990
6
2,050
97
29,380
6
1,447
84
5,765
29,429
n.a.
n.a.
n.a.
27,853
n.a.
n.a.
27,786
994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996
1,017,580
322,155
204,751
399,489
63,744
35,952
8,170
1,261
29,996
n.a.
8,073
27,536
n.a.
26,989
n.a.
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 Association9
16
Financing Corporation
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation12
699,742
205,817
93,279
257.230
53,175
50,335
8,170
1,261
29,996
807,264
47,529
8,170
1,261
29,996
896,443
263,404
156,980
331,270
60,053
44,763
8,170
1,261
29,996
MEMO
19 Federal Financing Bank debt"
103,817
78,681
58,172
49,090
44,223
3,449
8,073
2,044
5,765
1.431
n.a.
n.a.
552
n.a.
n.a.
n.a.
n.a.
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other lending"
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
243,194
119,961
299,174
57,379
3,200
n.a.
33,719
17,392
37,984
21,015
17,144
29,513
1. Consists of mortgages assumed by Ihe Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration, the Department
of Health, Education, and Welfare, the Department of Housing and Urban Development, the
Small Business Administration, and the Veterans Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation, therefore details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
18,325
16,702
21,714
13,530
14,898
20.110
11,955
14,207
17,519
Aug.
Sept
n.a.
1,172,575
26,668
6
n.a.
155
26,691
26,984
n.a.
n.a.
n.a.
26,507
n.a.
n.a.
n.a.
26,685
1,034,436
328,514
200,314
406,162
64,717
33,231
8,170
1,261
29,996
1,090,715
328,009
208.800
415,229
64,528
33,270
8,170
1,261
29,996
1,103,596
334,494
213,800
423,188
57,910
33,350
8,170
1,261
29,996
1.145,884
343.188
232,994
430.582
64,332
33,760
8,170
1,261
29,996
136,892
42,610
42,396
n.a.
n.a.
26,811
1,295
n.a.
n.a.
n.a.
n.a.
13,530
14,819
107,248
t
t
n.a,
n.a.
\
\
10,900
14,126
17,584
9,756
14,284
18,356
9,500
14,166
22,289
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance A31
1.45
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
Type of issue or issuer,
or use
1
1 All issues, new and refunding
Apr.
May
July
Aug.
Sept.
Oct.
145,657
171,222
214,694
20,271
22,862
29,665
22,599
20344
17,526
19,528
19,325
flv type of issue
2 General obligation
3 Revenue
56,980
88,677
60,409
110,813
69,934
134,989
8,154
12,117
4,827
18,035
10,135
19,530
6,515
16,084
5,812
14,532
5,619
11,907
6,791
12,737
5,433
13,892
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
14,665
93,500
37,492
13,651
113,228
44,343
18,237
134,919
70,558
3,548
12,504
4,219
1,146
16,865
4,851
2,809
18,099
7.220
1,972
16,244
5,673
1,483
14,233
4,628
1,280
12,490
3,756
1,865
12,924
4,739
778
13,473
5,073
102390
112,298
135,519
12,616
15,281
19,341
15,895
11,258
9,106
12,736
12,452
23,964
11,890
9,618
19,566
6,581
30,771
26,851
12,324
9,791
24,583
6,287
32,462
31,860
13,951
12,219
27,794
6,667
35,095
4,080
1,089
749
n.a.
678
3,255
2,819
1,043
5,971
n.a.
576
2,482
4,911
2,962
2,368
n.a.
563
5,279
2,733
3,677
795
n.a.
1,002
4.674
2,435
1,982
1,179
n.a.
709
2,764
2,041
918
831
n.a.
315
2,726
2,605
1,598
2,785
n.a.
471
3,359
2,353
806
2,225
n.a.
638
3,242
7 Issues for new capital
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale
2. Includes school districts.
1.46
NEW SECURITY ISSUES
SOURCE. Securities Data Company beginning January 1990; Investment
Digest before then.
Dealer's
U.S. Corporations
Millions of dollars
1998
Type of issue, offering,
or issuer
1995
1996
1997
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
1 All issues'
678321
670,928
758,948
108,994
76,799
77,413
102,487
70,305
53,270
783»2
66,336
2 Bonds2
572,998
548,922
641,068
89,723
64329
62,713
85,643
60,533
49,545
73,752
57,681
408,707
87,492
76,799
465,489
n.a.
83.433
537,880
n.a.
103,188
81,778
n.a.
7,946
55,452
n.a.
8,878
56,965
n.a.
5,748
78,280
n.a.
7,363
54,266
n.a.
6,267
45,745
n.a.
3,800
71,134
n.a.
2.618
49,094
n.a.
8.587
7 Financial
156,763
416,235
119,765
429,157
130,115
510,953
17,301
72,422
16,985
47,345
12,856
49,857
16,844
68,799
17,220
43,313
12,799
36,746
8,962
64,790
11,205
46,476
8 Stocks2
105,323
122,006
117,880
19,271
12,470
14,700
17,111
9,772
3,725
4,640
8,655
73,223
32 100
122,006
117,880
19,271
12,470
14,700
17,111
9,772
3,725
4,640
8,655
52.707
20,516
80,460
41,546
60,386
57,494
10,756
8.515
5,551
6.919
9,271
5,429
10,248
6,863
6,390
3,382
2,560
1,165
2,266
2.374
5,879
2,776
By type of offering
5 Sold abroad
By industry group
flv tvpe of offering
9 Public
By industry group
1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCE. Beginning July 1993, Securities Data Company and the Board of Governors of
the Federal Reserve System.
A32
1.47
Domestic Financial Statistics • February 1999
OPEN-END INVESTMENT COMPANIES
Net Sales and Assets'
Millions of dollars
1998
Item
1996
1997
Apr.
May
June
July
Aug.
Sept.
Oct.'
Nov.
1,190,900
128,828
113,593
122,288
134,801
111,587
118,478
116,471
113,235
702,711
231,885
918,728
272,172
97,087
31,741
84,421
29,172
97,899
24,389
107,368
118,812
27,433
-7,225
107,049
11,429
108,838
7,633
89,532
23,703
4 Assets4
2,624,463
3,409,315
3,909,932
3,882.061
3,986,952
3,957,093
3,479,401
3,625,841
3,804,591
4,012,378
5 Cash5
6 Other
138,559
2.485,904
174,154
3.235,161
170,045
3 739,887
171,425
3,710,636
199.135
3,787.817
211,253
3,414,588
210,026
3,594,565
208.343
3,804,034
934,595
2 Redemptions of own shares
3 Net sales3
194,435
3,284,967
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.
1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.
1.48
195,966
3,761.127
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1996
Account
I Profits with inventory valuation and
capital consumption adjustment
3 Profits-tax liability
5
Dividends
7 Inventory valuation
8 Capital consumption adjustment
1995
1996
1997
1998
1997
04
Ql
Q2
Q3
Q4
Ql
Q2
Q3 r
672.4
635.6
211.0
424.6
205.3
219.3
750.4
680.2
226.1
454.1
261.9
192.3
817.9
734.4
246.1
488.3
275.1
213.2
762.0
685.7
224.2
461.5
273.6
187.9
794.3
712.4
238.8
473.6
274.1
199.5
815.5
729.8
241.9
487.8
274.7
213.2
840.9
758.9
254.2
504.7
275.1
229.5
820.8
716.4
249.3
487.1
276.4
210.6
829.2
719.1
239.9
479.2
277.3
201.8
820.6
723.5
241.6
481.8
278.1
203.7
827.0
720.5
243.2
477.3
279.0
198.3
-22.6
59.4
-1.2
71.4
6.9
76.6
3.0
73.3
8.1
73.8
10.3
75.5
4.8
77.2
4.3
80.1
25.3
84.9
7.8
89.4
11.7
94.8
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities 1
Billions of dollars, end of period; not seasonally adjusted
1997
Account
1994
1998
1996
1995
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
1 Accounts receivable, gross2
2
Consumer
543.7
201.9
274.9
66.9
607.0
233.0
301.6
72.4
637.1
244.9
309.5
82.7
648.0
249.4
315.2
83.4
651.6
255.1
311.7
84.8
660.5
254.5
319.5
86.4
663.3
256.8
318.5
87.9
667.2
251.7
325.9
89.6
676.0
251.3
334.9
89.9
688.9
255.3
335.1
98.5
52.9
11.3
60.7
12.8
55.6
13.1
51.3
12.8
57.2
13.3
54.6
12.7
52.7
13.0
52.1
13.1
53.2
13.2
52.4
13.2
7 Accounts receivable, net
8 All other
479.5
2168
533.5
250 9
568.3
290 0
583.9
289 6
581.2
306 8
593.1
289 1
597.6
3124
601.9
329 7
609.6
140 1
623.3
313 6
9 Total assets.
696 3
784 4
858.3
873 4
887 9
882 3
910 0
931 6
949 7
936 8
14.8
171 6
15.3
168 6
19.7
177 6
18.4
185 3
18.8
193 7
20.4
189 6
24.1
">01 5
22.0
211 7
22.3
2">5 9
24.9
226 9
14 All other liabilities
41.8
247.4
146.2
74 6
51.1
300.0
163.6
85 9
60.3
332.5
174.7
93.5
61.0
324.6
189.2
94 9
60.0
345.3
171.4
98 7
61.6
322.8
190.1
97 9
64.7
328.8
189.6
101 3
64.6
338.2
193.1
102 1
60.0
348.7
188.9
103 9
58.3
337.7
185.4
103 6
16 Total liabilities and capital
696.3
784.4
858.3
873.4
887.9
882.3
910.0
931.6
949.7
936.8
4
Real estate
6
Reserves for losses
LIABILITIES AND CAPITAL
Debt
1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses.
Securities Market and Corporate Finance A3 3
1.52
DOMESTIC FINANCE COMPANIES
Owned and Managed Receivables1
Billions of dollars, amounts outstanding
Type of credit
Sept.
Seasonally adjusted
682.4
2
3
4
Consumer
Real estate
Business
283.1
72.4
326.8
307.7
111.9
342.4
327.7
121.1
361.0
330.2
124.2
378.6
332.5
120.9
377.9
840.6
846.4
336.6
125.2
378.7
339.1
128.1
379.2
343.9r
128.8
380.7
351.7
132.3
383.2
Not seasonally adjusted
5 Ibtal
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Consumer
Motor vehicles loans
Motor vehicle leases
Revolving2
Other'
Securitized assets
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6
689.5
769.7
818.1
832.2
836.0
835.2
842.6
850.0'
865.6
285.8
81.1
80.8
28.5
42.6
310.6
86.7
92.5
32.5
33.2
330.9
87.0
96.8
38.6
34.4
329.4
89.6
95.9
30.5
33.5
335.4
89.9
97.0
29.9
34.4
338.5
91.7
97.3
29.6
35.0
340.5
95.3
96.9
30.2
34.7
344.9'
96.2
94.9
29.3'
34.6
351.3
97.6
94.6
34.6
34.6
34.8
3.5
n.a.
14.7
72.4
n.a.
n.a.
36.8
8.7
0.0
20.1
111.9
52.1
30.5
44.3
10.8
0.0
19.0
121.1
59.0
28.9
45.7
10.8
5.3
18.1
124.2
65.2
28.1
49.3
10.9
5.3
18.6
120.9
62.3
27.5
50.2
10.8
5.3
18.5
125.2
65.9
28.5
49.2
10.7
5.3
18.2
128.1
68.6
28.7
51.8
14.2'
5.3
18.8
128.8
68.4
30.1
51.6
14.4
5.3
18.6
132.3
72.2
30.2
n.a.
n.a.
36.6
8.0
8.0
8.0
8.0
8.0
28.9
0.4
347.2
67.1
25.1
33.0
9.0
9.0
9.0
9.0
9.0
33.0
0.2
366.1
63.5
25.6
27.7
10.2
10.2
10.2
10.2
10.2
30.7
0.2
378.6
69.1
29.3
29.5
10.4
209.3
51.3
158.0
54.3
30.9
0.1
379.7
68.4
29.2
28.2
11.0
212.8
52.7
160.2
53.7
30.6
0.1
371.5
61.1
29.2
21.0
10.9
212.8
51.6
161.2
54.5
30.7
0.1
374.0
62.5
29.6
22.0
10.9
212.0
51.8
160.2
57.0
30.2
0.1
376.2
65.5
30.0
24.2
11.3
210.8
47.9
162.9
58.9
29.8
0.1
382.0
68.5
30.4
27.0
11.1
211.5
47.2
164.3
59.6
8.0
8.0
8.0
8.0
8.0
8.0
8.0
8.0
9.0
9.0
9.0
9.0
9.0
9.0
9.0
9.0
10.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
31.0
1.9
29.1
2.3
26.3
29.2
26.7
24.1
0.0
11.5
5.1
6.4
5.4
25.9
2.1
23.8
0.0
11.4
4.9
6.4
5.2
24.5
2.0
22.5
0.0
11.3
4.9
6.4
5.3
25.0
1.9
23.2
0.0
12.0
5.6
6.4
5.2
331.2
66.5
21.8
NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown
0.0
0.0
10.2
4.0
6.2
4.7
10.5
4.1
6.4
5.3
2.2
before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, faclored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A34
1.53
Domestic Financial Statistics • February 1999
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
1998
Item
1995
1996
1997
May
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
Terms
1 Purchase price (thousands of dollars).
2 Amounl of loan (thousands of dollars)
3 Loan-to-price ratio (percent)
5 Fees and charges (percent of loan amount)"
Yield (percent per year)
6 Contract rate
7 Effective rate1'3
8 Contract rate (HUD series)
175.8
134.5
78.6
27 7
1.21
182.4
139.2
78.2
27.2
1.21
180.1
140.3
80.4
28.2
1.02
195.6
150 2
79.1
28.3
0.85
193.7
151.0
81.0
28.3
0.85
208.7
160.1
78.7
28.5
0.90
191.5
150.4
81.3
28.6
0.87
192.7
150.8
80.9
28.7
0.85
201.4
155.8
79.8
28.6
0.86
192.1
148.1
79.5
28.3
0.76
7.65
7.85
8.05
7.56
111
8.03
7.57
7.73
7.76
7.05
7.18
7.11
7.03
7.16
7.08
6.99
7.13
7.05
6.95
7.09
6.86
6.85
6.98
664
6.72
6.85
6.86
6.68
6.80
6.84
8.18
7.57
8.19
7.48
7.89
7.26
7.(17
6.63
7.07
6.54
7.05
6.48
7.03
6.42
6.53
6.05
7.07
6.10
7.02
6.25
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203 )5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
1 ] Total
12 FHA/VA insured
14 Mortgage transactions purchased (during period)
253.511
28.762
224,749
287,052
30,592
256,460
316,678
31,925
284,753
343,922
32,771
311,151
349.249
32.896
316.353
359,827
33,036
326.791
366,890
32,929
333.961
375.665
32.903
342,762
386,452
32.814
353.638
399.804
33.420
366.384
56,598
68,618
70.465
17,423
11,916
17.326
14.316
15,681
18,967
23,557
56,092
360
65,859
130
69,965
1,298
10.612
0
16,921
0
13,217
419
17,016
233
16.282
249
30,551
393
17.994
0
107,424
267
107,157
137,755
220
137,535
164,421
177
164,244
192,603
158
192,445
196,634
422
196,212
202,582
456
202,126
206,856
489
206,367
216,521
569
215,952
231,458
569'
230,889'
242,270
602
241.668
98,470
85,877
125,103
119,702
117,401
114,258
23,743
23,338
22.394
21,133
22,605
22,263
21,507
20,634
25,366
24,294
20,629
19.472
23,986
22,660
118,659
128,995
120,089
26,100
20.008
23.528
24,694
23,375
25,025'
28,903
Mortgage commitments (during period)
15 Issued 7
16 To sell 8
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings {end of period)
17 Total
18 FHA/VA insured
19 Conventional
Mortgage transactions (during period)
20 Purchases
21 Sales
22 Mortgage commitments contracted (during period)
9
....
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes: compiled b> the Federal Housing
Finance Board in cooperation with (he Federal Depoj.it Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end often years
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured
by the Federal Housing Administration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.
(S Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA).
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
convened.
8. Includes participation loans as well as whole loans.
c
l. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
Real Estate A35
1.54
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
Type of holder and property
Q4
Qi
Q2
4,392,794r
4,602,654'
4,929,422'
5,180,913'
5.279.327'
5,379,351'
5,502,583
5,642,865
3,355,485'
271.748'
682.590'
82.971
3,529,403'
281,592'
707,098'
84,561
3,761,017'
300,559'
780,713'
87.134
3,956,813'
308,417'
825,922'
89,760
4,029,268
314,585'
845,057'
90,417
4,101,294'
320,229'
866,402'
91,425
4,192,363
326,532
890,708
92.980
4,297,628
332,922
918,020
94,295
1,819,806
1,012,711
615,861
39,346
334,953
22,551
596,191
477,626
64,343
53.933
289
210,904
7.018
23,902
170,421
9,563
1,894,420
1.090,189
669,434
43,837
353,088
23,830
596,763
482,353
61,987
52,135
288
207,468
7,316
23.435
167,095
9.622
1.979,114
1.145,389
698,508
46,675
375,322
24,883
628,335
513,712
61,570
52,723
331
205,390
6,772
23,197
165,399
10.022
2,068,002
1,227,131
752,323
49,166
398,841
26,801
631,444
519,564
60,348
51,187
346
209,426
7,080
23,615
168,374
10,358
2,086.764'
1,244,151'
762,556'
50,642
403,975'
26,978
631,822
520,672
59,543
51,252
354
210,792
7,186
23,755
169,377
10,473
2,119,323'
1,270,076'
779,954'
51,790
410,876'
27,456
637,012
527,036
59,074
50.532
369
212,235
7,321
23,902
170,423
10.589
2,124,305
1,280,778
784,957
52,175
415,329
28,316
629,882
520,276
58,704
50.519
383
213,645
7,488
24,038
171,393
10.726
2,144,075
1.295,721
784,958
53,049
429,032
28,682
633,281
525,174
56,631
51,078
398
215,073
7.629
24,181
172,411
10,851
22 Federal and related agencies
23
Government National Mortgage Association . .
24
One- to four-family
25
Multifamily
26
Fanners Home Administration4
27
One- to four-family
28
Multifamily
29
Nonfarm. nonresidential
30
Farm
31
Federal Housing and Veterans' Administration:
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Nonfarm, nonrestdentta!
38
Farm
39
Federal Deposit Insurance Corporation
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
43
Farm
44
Federal National Mortgage Association
45
One- to four-family
46
Multifamily . . . . . "
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation . . .
51
One- to four-family
52
Multifamily
315.580
6
6
0
41,781
18,098
11,319
5,670
6,694
10,964
4,753
6.211
10.428
5.200
2.859
2,369
0
7.821
1,049
1,595
5,177
0
174,312
158,766
15,546
28,555
1,671
26,885
41,712
38,882
2.830
306.774
2
2
0
41,791
17,705
11,617
6,248
6,221
9,809
5,180
4,629
1,864
691
647
525
0
4.303
492
428
3,383
0
176,824
161,665
15,159
28.428
1,673
26,755
43,753
39,901
3,852
300.935
291,410
7
7
0
41,332
17,458
11.713
7,246
4,916
3.462
1,437
2,025
0
0
0
0
0
1.476
221
251
1.004
0
168,458
156,363
12,095
30,346
1,786
28,560
46.329
40,953
5,376
292.581
8
8
0
41,195
17,253
11,720
7,370
4,852
3,821
1,767
2,054
0
0
0
0
0
724
109
123
492
0
167,722
156,245
11,477
30,657
1,804
28,853
48,454
42,629
5,825
293.499
294,547
8
8
0
40,921
17,059
11,722
7,497
4,644
3,631
1,610
2,021
0
0
0
0
0
564
85
96
384
0
167,202
156,769
10,433
31,352
1,845
29,507
50.869
44,597
6,272
294,307
7
7
0
40,907
17,025
11,736
7,566
4,579
3,448
1,593
1,855
0
0
0
0
0
482
72
82
328
0
166,243
156,208
10,035
32,009
1,883
30,126
51,211
44,254
6,957
53 Mortgage pools or trusts5
54
Government National Mortgage Association . .
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation . . .
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Multifamily
63
Farmers Home Administration4
64
One- to four-family
65
Multifamily
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family6
70
Multifamily
71
Nonfarm, nonresidential
72
Farm
1,730,004
450,934
441,198
9.736
490.851
487,725
3,126
530,343
520,763
9,580
19
1,863,210
472,283
461,438
10,845
515,051
512,238
2,813
582,959
569,724
13,235
11
2
0
5
4
292,906
227,800
15,584
49,522
0
2,064,882
506,340
494.158
12,182
554,260
551,513
2,747
650.780
633,210
17,570
3
0
0
0
3
353,499
261,900
21,967
69,633
0
2.202,549
529,867
516,217
13,650
569,920
567,340
2,580
690,919
670,677
20,242
2,272,999
536,810
523,156
13,654
579.385
576,846
2,539
709,582
687,981
21,601
2,330,674
533,011
519,152
13,859
583,144
580,715
2,429
730,832
708,125
22,707
0
0
0
411,841
299,400
25,655
86,786
0
0
0
0
2
447,219
318,000
29,264
99,955
0
0
0
0
2
483,685
336,824
33,477
113.384
0
2.442,603
537,586
523,243
14,343
609,791
607,469
2,322
761,359
737,631
23.728
2
0
0
0
2
533,865
364,316
38,144
131,405
0
2,548,050
541,431
526,934
14,497
635,726
633,124
2,602
798,460
770,979
27,481
2
0
0
0
2
572,431
391,736
40,893
139.802
0
618,951'
405,988'
81,702
112,485'
18,777
626,984'
413.057'
82,387'
112,636'
18.904
635,855'
421,100'
82,372'
113,283'
19,100
641,129
425,010
82,535
114,182
19,402
656,433
436,052
82,921
117,803
19,657
1 All holders
2
3
4
5
By type of property
One- lo four-family residences
Mullifamily residences
Nonfarm, nonresidential
Farm
By type oj holder
6 Major financial institutions
7
Commercial banks
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
12
Savings institutions^
13
One- to four-family
14
Multifamily
15
Nonfarm, nonresidential
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
73 Individuals and others7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential
77
Farm
0
9
7
257,857
208,500
11,744
37,613
0
527,404'
368,366'
69,611'
72,445'
16,983
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.
538,251'
371,789'
73,524'
75,097'
17,841
2
0
41,596
17,303
11,685
6,841
5,768
6.244
3.524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
174,556
160.751
13,805
29,602
1,742
27,860
46,504
41,758
4.746
584,491'
375,798'
81,282'
109,143'
18.268
0
40,972
17,160
11,714
7,369
4,729
3,694
1,641
2,053
0
0
0
0
0
786
118
134
534
0
166,670
155,876
10,794
31,005
1,824
29,181
50,364
44,440
5.924
6. Includes seeuritized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.
A36
Domestic Financial Statistics • February 1999
CONSUMER CREDIT 1
1.55
Millions of dollars, amounts outstanding, end of period
1998
Holder and type of credit
1995
1996
1997
June
May
July'
Aug.'
Sept.'
Oct.
Seasonally adjusted
1 Total
3 Revolving
4 Other2
1,095,711
1,181,913
1,233,099
1,254,302
1,263,683
1,268,884
1,272,957
1,278,130
1,287,752
364.209
443,183
288 119
392,321
499,486
290,105
413,369
531,140
288,590
422,624
541,184
290,495
425,510
545,339
292,834
428,121
543,001
297,762
432,240
544,983
295,735
434,653
545.990
297,486
435,926
549,640
302,186
Not seasonally adjusted
1,122,828
1,211,590
1,264,103
1,243.178
1,256,897
1,262,008
1,273,176
1,281,172
1,290,402
501,963
152,123
131,939
40,106
85,061
211,636
526,769
152,391
144,148
44,711
77,745
265,826
512,563
160,022
152,362
47,172
78,927
313,057
497.389
153.556
152,218
47,915
65,227
326.873
491,509
154,275
152,400
48,329
65,265
345,119
491,161
156,366
153,735
48,989
65,478
346,279
497,527
160,151
154,146
49,648
66,004
345,700
497,860
160,078
155,167
50,307
65,583
352,177
501,040
166,861
155,930
50,966
65,506
350,099
367,069
151,437
81,073
44,635
395,609
157,047
86,690
51,719
416,962
155,254
87,015
64,950
418,244
151,677
89,569
65,988
425,227
150,877
89,948
71.615
429,723
153,203
91,741
72,470
434,924
155,508
95,257
70,766
438,651
155,970
96,183
72,149
441,203
156,788
97,637
71,115
16 Revolving
17 Commercial banks
18 Finance companies
19 Nonfinaneial business3
20
Pools of securitized assets4
464,134
210,298
28,460
53,525
147,934
522,860
228,615
32,493
44,901
188,712
555,858
219,826
38,608
44,966
221.465
535,576
207,318
30,495
33,412
235,347
539,572
200.901
29,893
33.544
245,635
536,745
197,646
29,605
33,807
246,031
541,821
200,424
30,155
34,009
247.422
543.346
198,733
29,312
33,743
251,790
548,025
199,346
34,597
33,448
250,903
21 Other
22
Commercial banks
23
Finance companies
24
Nonfinaneial business3
25
Pools of securitized assets4
291,625
140,228
42,590
31,536
19,067
293,121
141,107
33,208
32,844
25,395
291,283
137,483
34,399
33,961
26,642
289.358
138.394
33,492
31.815
25.538
292,098
139,731
34,434
31,721
27,869
295,540
140,312
35,020
31,671
27.778
296.431
141.595
34,739
31,995
27,512
299,175
143,157
34,583
31,840
28,238
301,174
144,906
34,627
32,058
28,081
5 Total
By major holder
6 Commercial banks
7 Finance companies
9 Savings institutions
11 Pools of securitized assets4
By major type of credit
13
14
15
Commercial banks
Finance companies
Pools of securitized assets
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Comprises mobile home loans and all other loans that are not included in automobile or
revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be
secured or unsecured.
1.56
3. Includes retailers and gasoline companies.
4. Oulstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF CONSUMER CREDIT1
Percent per year except as noted
1998
Item
1995
1996
1997
Apr.
May
June
July
Aug.
Sept.
Oct.
INTEREST RATES
Commercial banks
1 48-month new car
2 24-month personal
9.57
13.94
9.05
13.54
9.02
13.90
n.a.
n.a.
8.69
13.76
n.a.
n.a.
n.a.
n.a.
8.71
13.45
n.a.
n.a.
n.a.
n.a.
Credit card plan
3 All accounts
4 Accounts assessed interest
15.90
15.64
15.63
15.50
15.77
15.57
n.a.
n.a.
15.67
15.62
n.a.
n.a.
n.a.
n.a.
15.83
15.85
n.a.
n.a.
n.a.
n.a.
Auto finance companies
5 New car
6 Used car
11 19
14.48
9.84
13.53
7 12
13.27
6 20
12.76
6 07
12.73
6 02
12.63
6 25
12.51
6 00
12.68
591
12.65
6 33
12.58
54.1
52.2
51.6
51.4
54.1
51.0
50.7
52.9
50.8
52.9
50.9
54.0
51.7
54.1
53.0
54.1
53.1
54.2
53.1
54.2
92
99
91
100
92
99
91
98
93
99
91
100
92
100
93
101
93
101
92
100
16,210
11,590
16,987
12,182
18,077
12.281
18,922
12,716
18,793
12,607
18,878
12,698
19,084
12,733
19,068
12,407
19,028
12.731
19,199
12,914
OTHER TERMS 3
Maturity tnumlhs)
8 Used car
Loan-to-value ratio
10 Used car
Amount financed (dollars)
11 New car
12 Used car
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter
3. At auto finance companies.
Flow of Funds A37
1.57
FUNDS RAISED IN U.S. CREDIT M A R K E T S '
Billions of dollars; quarterly data at seasonally adjusted annual rates
Transaction category or sector
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Nonfinancial sectors
1 Total net borrowing by domestic nonflnancial sectors.
588.0
571.5
700.4
726.7
769.6
675.9
617.7
829.6
955.1
922.1
938.0
By sector and instrument
2 Federal government
3 Treasury securities
4 Budget agency securities and mortgages
256.1
248.3
7.8
155.9
155.7
2
144.4
142.9
1.5
145.0
146.6
-1.6
23.1
23.2
-.1
64.9
66.3
-1.4
-43.5
-43.8
.2
30.3
31.2
-.9
40.8
39.0
1.7
-30.0
-27.6
-2.4
-70.9
-69.4
-1.4
-136.5
-136.1
-.4
415.6
555.9
581.7
746.4
611.0
661.2
799.2
914.3
952.1
1,008.9
1,067.0
10.0
74.8
75.2
6.4
-18.9
123.7
156.2
-6.8
-26.7
1.0
60.7
21.4
-35.9
23.3
75.2
34.0
172.7
178.2
-1.3
-6.4
2.2
124.9
18.1
-48.2
73.3
102.3
67.2
204.3
173.9
8.0
20.8
1.6
138.9
-.9
2.6
72.5
66.2
33.8
318.8
265.3
12.7
38.3
2.6
88.8
13.7
71.4
90.7
107.3
68.7
342.1
268.3
11.5
59.1
3.3
52.5
7.2
34.1
79.4
140.7
34.2
253.0
218.2
4.1
28.6
2.1
62.5
20.3
59.6
86.1
118.1
20.8
296.7
211.4
12.9
68.4
4.1
59.5
14.5
88.9
122.9
31.6
78.0
413.0
334.2
6.6
67.9
4.3
50.3
12.8
103.2
74.4
138.7
141.6
405.8
309.3
22.3
71.6
2.6
37.8
53.9
116.7
157.2
55.8
83.2
428.1
324.1
19.9
80.0
4.0
57.3
6.6
100.1
160.8
157.3
37.9
481.2
360.5
22.6
91.9
6.2
65.1
88.4
84.1
88.0
142.6
78.0
497.8
207.8
57.9
52.1
3.2
66.2
311.0
150.9
143.3
3.3
4.4
-46.2
343.7
263.7
236.8
23.9
2.9
-51.5
370.3
218.2
171.4
42.0
4.8
-6.8
355.6
334.8
265.0
63.5
6.4
56.1
334.9
259.2
206.4
47.8
4.9
16.9
329.7
289.1
214.5
68.6
6.0
42.5
362.9
363.8
291.5
66.8
5.5
72.6
394.9
427.1
347.5
70.6
9.0
92.3
437.2
420.6
331.4
81.4
7.9
94.3
469.8
460.2
354.6
98.2
7.4
78.9
472.7
521.6
404 7
110.2
6.7
72.7
23 Foreign net borrowing in United States
24 Commercial paper
25 Bonds
26 Bank loans n.e.c
27 Other loans and advances
69.8
-9.6
82.9
.7
-4.2
-14.0
-26.1
12.2
1.4
-1.5
71.1
13.5
49.7
8.5
76.9
11.3
55.8
9.1
.8
56.9
3.7
46.7
8.5
-2.0
31.2
15.5
15.5
-.7
.9
61.7
10.4
38.7
11.5
1.2
92.5
-11.6
100.3
7.3
-3.5
42.3
.7
32.4
15.7
-6.5
68.5
56.0
14.3
5.2
-7.0
86.6
-24.8
107.5
8.4
-4.4
-27.0
6.9
-34.8
35
28 Total domestic plus foreign
657.8
557.5
771.5
803.6
826.5
707.1
679.3
922.1
997.4
990.6
1.024.7
903.5
5 Nonfederal
6
7
8
9
10
11
12
13
]4
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.ex
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfann noncorporate
Farm
State and local government
2.6
_
c
365.8
22.9
103.9
5.3
88.2
-2.6
Financial sectors
29 Total net borrowing by financial sectors . . .
30
31
32
33
By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from US. government
34 Private
35 Open market paper
36 Corporate bonds
37 Bank loans n.e.c
38 Other loans and advances
39 Mortgages
40
41
42
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
294.4
468.4
456.4
556.2
644.3
336.5
657.1
595.5
987.9
839.8
1,012.9
992.8
165.3
80.6
84.7
.0
287 5
176.9
115.4
-4.8
204.1
105.9
98.2
.0
231.5
90.4
141.1
.0
212.8
98.4
114.4
.0
105.7
-8.9
114.6
.0
286.2
198.1
88.1
.0
161.0
46.4
114.6
.0
298.1
157.9
140.3
.0
227.3
142.5
84.8
.0
413.4
166.4
247.0
.0
561.6
294.0
267.5
.0
129.1
180.9
40.5
121.8
-13.7
22.6
9.8
252.3
42.7
196.7
3.9
3.4
5.6
324.7
92.2
179.7
16.9
27.9
7.9
431.5
166.7
207.9
13.6
35.6
7.8
230.9
176.6
61.7
6.5
-20.1
6.2
370.9
77.0
229.4
-6.0
63.0
7.5
434.5
168.8
194.8
23.2
37.5
10.1
689.8
244.2
345.8
30.7
61.7
7.3
612.5
237.4
315.5
18.9
32.7
8.0
599.5
134.8
373.5
7.2
76.0
8.0
431.2
141.0
158.8
41.1
82.3
8.0
20.1
12.8
2
.3
172.1
115.4
72.9
48.7
-11.5
13.7
.5
23.1
22.5
2.6
-.1
-.1
105.9
98.2
141.1
50.2
.4
5.7
-5.0
34.9
13.0
25.5
.1
1.1
90.4
141 1
153.6
45.9
12.4
11.0
-2.0
64.1
46.1
19.7
.1
.2
98.4
114.4
204.4
48.7
-1.3
24.8
8.1
80.7
14.4
-16.8
-.2
.8
-8.9
114.6
85.8
5.6
-.7
15.1
-2.9
129.7
76.4
31.9
2
!i
198.1
88.1
120.7
120.5
-12.2
19.8
34.9
-21.5
32.5
22.3
.2
2
464
114.6
226.2
8.9
3.6
32.0
-6.9
115.4
61.0
41.7
.3
-.3
157.9
140.3
385.1
59.6
4.2
32.1
7.0
99.2
83.5
10.6
.5
.0
142.5
84.8
254.4
80.1
5.2
36.3
-1.0
142.8
80.0
31.2
.2
-.6
166.4
247.0
367.2
101.8
-5.5
33.9
20.0
-28.6
78.2
63.7
1.0
1.6
294.0
267.5
272.4
-13.6
3.0
27.4
16.5
-19.1
-5.5
123.1
-14.4
22.4
3.6
13.4
11.3
.2
2
80.6
84.7
83.6
-1.4
.0
3.4
12.0
6.3
A3 8 Domestic Financial Statistics • February 1999
1.57
FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued
1998
Transaction category or sector
1994
1995
Ql
Q2
Q3
Q4
Ql
Q2
Q3
52 Total net borrowing, alt sectors .
952.2
1,025.9
1,227.8
1,359.8
1,470.7
1,043.7
1,336.4
1,517.6
1,985.3
1,830.3
2,037.6
1,896.3
53
54
55
56
57
58
59
60
-5.1
421.4
74.8
281.2
-7.2
-.8
127.3
35.7
448.1
-35.9
157.3
62.9
50.3
182.5
124.9
74.3
348.5
-48.2
319.6
114.7
70.2
209.9
138.9
102.6
376.5
2.6
308.0
92.1
62.5
326.8
88.8
184.1
235.9
71.4
345.4
129.3
102.2
349.9
52.5
199.3
170.6
34.1
156.6
146.5
15.0
259.2
62.5
107.7
242.6
59.6
354.2
123.6
85.0
304.2
59.5
171.7
191.3
88.9
418.1
62.2
112.0
423.1
50.3
257.7
338.9
103.2
452.7
185.1
196.8
413.1
37.8
347.3
197.3
116.7
487.0
79.9
108.9
436.1
57.3
116.6
342.5
100.1
641.8
172.9
109.4
489.2
65.1
236.2
425.1
84.1
212.0
187.2
157.6
505.8
88.2
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
60.7
Funds raised through mutual funds and corporate equities
61 Total net issues
429.7
125.2
143.9
234.2
183.3
171.7
175.0
240.8
145.9
209.4
260.3
-118.2
62 Corporate equities
63 Nonfinancial corporations
64 Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares
137.7
21.3
63.4
53.0
292.0
24.6
-44.9
48.1
21.4
100.6
-3.5
-58.3
50.4
4.4
147.4
-3.4
-64.2
60.0
.8
237.6
-81.8
-114.4
41.3
-8.6
265.1
-77.9
-90.4
46.6
-34.1
249.6
-75.1
-100.0
54.4
-29.4
250.1
-59.1
-124.0
64.3
.5
299.9
-115.1
-143.3
-.3
28.5
261.0
-112.0
-139.2
13.6
13.6
321.4
-123.4
-128.7
4.0
1.3
383.7
-266.7
1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.
-221.8
-33.1
-11.9
148.5
Flow of Funds
1.58
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
Transaction category or sector
1996
1997
Ql
Q2
Q3
Q4
Ql
Q2
2,037.6
NET LENDING IN CREDIT MARKETS 2
1 Total net lending in credit markets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monetary authority
Commercial banking
U.S.-chartered banks
Foreign banking offices in United States
Bank holding companies
Banks in U.S.-affiliated areas
Savings institutions
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
State and local governmentretirementfunds
Money market mutual funds
Mutual funds
Closed-end funds
Government-sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
952.2
1,025.9
1,227.8
1,359.8
1,470.7
1,043.7
1,336.4
1,517.6
1,985.3
1,830.3
41.6
238.0
274.7
17.7
.6
-55.0
-27.5
132.3
683.0
-10.7
-11.4
20.0
4.4
-23.7
-7.7
414.7
963.5
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
72.5
22.5
48.3
45.9
88.8
-108.2
-125.4
14.8
2.7
-.3
4.9
312.5
1,261.5
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
7.6
101.0
25.2
67.6
36.6
87.5
-160.3
-153.7
31.7
2.8
-41.0
3.3
402.9
1,271.7
22.9
40.7
12.9
-2.6
2.9
27.5
48.9
4.7
92.0
80.9
-3.4
141.1
123.4
18.4
8.2
2.0
-15.7
25.2
95.0
114.4
166.0
21.9
16.4
-2.0
13.7
58.6
-253.6
-285.4
58.8
2.5
-29.5
1.7
330.6
964.9
34.4
316.0
206.1
101.7
2.2
6.1
-5.3
20.5
3.4
88.3
6.0
55.0
23.2
58.2
63.9
-3.4
44.9
114.6
62.3
39.8
-1.3
-2.1
-14.5
60.9
-59.8
-75.5
-28.7
2.7
41.8
5.7
163.4
148.1
11.2
.9
3.3
6.7
28.1
7.1
66.7
24.9
45.5
22.3
30.0
-7.1
-3.7
117.8
115.4
65.8
48.3
-24.0
4.7
-44.2
-16.2
-107.0
-11.5
-8.8
4.7
-91.4
-.2
273.9
1,061.1
12.7
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
-8.3
99.2
21.5
61.3
27.5
86.5
52.5
10.5
84.7
98.2
119.3
49.9
-3.4
2.2
90.1
-17.8
1,025.9
1,227.8
1,359.8
1,470.7
2.2
.6
35.3
9.9
-12.7
96.6
65.6
142.3
110.4
-3.5
147.4
101.5
26.7
44.9
233.2
6.2
4.0
71.5
457.3
-6.3
-.5
.1
85.9
-51.6
15.8
97.2
114.0
145.8
40.0
-3.4
237.6
76.9
52.4
43.6
230.8
16.2
-8.6
49.3
451.4
.7
-.5
.0
107.4
-19.4
41.5
97.1
122.5
157.6
115.2
-81.8
292.0
52.2
61.4
36.0
255.7
11.4
.9
25.5
340.0
-5.8
.0
.7
52.9
89.8
-9.7
-39.9
19.6
43.3
78.2
24.6
100.6
94.0
-.1
34.5
246.2
2.6
17.8
55.6
252.4
2,313.0
2,083.2
2,776.0
-.2
-5.7
4.2
46.4
15.8
-170.8
-.2
43.0
-2.7
69.4
16.6
-150.0
-.5
25.1
-3.1
22.9
21.1
-213.5
-1.5
-1.3
-4.0
-4.8
-2.8
1.5
2,430.0
2,113.3
1.0
9.1
-1.1
32.6
-18.4
129.3
799.7
36.2
142.2
149.6
-9.8
.0
2.4
-23.3
21.7
9.5
1O0.9
27.7
49.5
22.7
20.4
159.5
20.0
87.8
84.7
81.0
-20.9
.0
.6
14.8
-35.3
31.5
433.9
58.5
34.6
26.1
90.0
-3.4
119.9
88.1
105.9
.9
-24.4
-2.1
-11.7
4.7
4.6
-5.0
5.8
-35.3
13.6
7.3
106.0
32.0
66.2
79.1
121.5
108.0
-3.4
55.8
114.6
163.7
68.3
82.9
-2.1
15.8
28.7
1.1
-2.0
7.7
8.8
35.3
34.7
90.7
9.5
144.2
61.8
-3.4
159.2
140.3
332.2
-21.3
8.3
-1.7
65.3
140.2
-232.0
-261.4
33.8
3.0
-7.4
15.5
237.4
1,809.4
27.4
292.9
260.5
11.6
15.3
5.5
10.1
16.5
2.4
102.9
23.4
72.6
81.7
172.0
143.6
-2.4
166.0
84.8
195.3
28.7
10.4
-2.0
250.4
132.6
1,043.7
1,336.4
1,517.6
1,985.3
1,830.3
2,037.6
.4
.0
.2
23.9
-57.0
50.6
34.0
174.7
98.9
218.9
-75.1
250.1
2.4
.0
1.3
116.1
-21.7
-38.4
47.0
17.5
.0
-1.9
103.0
79.6
71.9
155.9
8.1
.0
188.4
70.7
147.8
98.0
110.1
52.9
296.8
14.6
75.0
40.6
593.4
-17.6
-2.1
.4
186.7
-78.4
81.8
151.5
56.3
157.6
32.7
-77.9
249.6
59.9
110.4
49.8
256.6
21.7
68.8
49.6
787.2
-16.5
186.4
-45.4
-123.4
383.7
4.7
-110.3
36.8
280.6
-6.7
57.5
9.9
422.0
2,946.5
3,557.6
-.9
59.4
-3.3
-.7
20.4
308.6
1,081.8
42.9
290.0
286.7
-3.6
5.1
1.8
23.8
25.2
10.7
174.4
28.0
226.2
220.7
9.0
208.0
1,727.7
52.9
464.9
386.2
58.2
19.4
321.6
-27.8
3.2
136.9
12.8
317.5
1,273.4
7.7
136.1
130.5
18.1
-17.6
5.1
-11.7
22.7
3.1
67.2
-1.5
141.8
60.6
200.1
152.6
-2.4
143.4
247.0
336.1
27.1
-11.0
-2.0
-188.6
-54.8
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Net flows through credit markets
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous
55 Total financial sources
56
57
58
59
60
61
Liabilities not identified as assets {—)
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous
Floats not included in assets ( - )
62 Federal government checkable deposits
63 Other checkable deposits
64 Trade credit
65 Total identified to sectors as assets
.0
.4
-18.5
50.5
117.3
-70.3
-23.5
20.2
71.3
137.7
127.5
62.5
318.9
14.1
71.8
47.5
532.0
226.2
111.2
-59.1
299.9
130.0
90.6
62.8
326.9
30.2
80.8
48.2
636.7
98.1
-115.1
261.0
153.2
111.9
36.6
284,8
-7.6
78.4
17.2
417.7
1.0
.0
.3
-45.3
-107.1
65.6
154.9
186.2
248.0
242.8
-112.0
321.4
90.6
168.9
47.3
253.8
9.4
50.3
36.5
1,220.1
3,188.3
3,279.2
3,797.0
3,966.0
4,663.0
3,383.0
-82.0
-.6
107.4
-19.9
59.5
17.2
-254.9
-.3
176.9
30.3
-107.3
19.3
26.9
10.7
-26.7
185.3
29.3
-414.3
.7
93.8
-50.0
-10.6
15.3
-94.8
-2.4
148.3
-33.0
170.5
5.2
-537.4
-.2
-94.7
30.7
99.3
6.5
92.5
~ 3
145.1
11.4
-107.3
.9
-108.2
-6.0
-3.8
-11.7
.5
-4.0
-27.0
-2.7
-3.9
15.1
-4.6
-3.3
-8.7
-58.7
10.0
-3.0
48.0
-7.9
-5.0
79.7
7.5
-4.0
12.6
-41.7
-3.0
-97.1
2,945.3
2,984.2
3,640.4
3,059.2
3,566.7
3,787.6
4,148.1
4,512.9
3,583.2
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
F.I and F.5. For ordering address, see inside front cover.
265.1
48.8
-8.3
-4.3
2. Excludes corporate equities and mutual fund shares.
ii2
89.0
23.3
109.3
36.2
A39
A40
1.59
Domestic Financial Statistics • February 1999
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1998
Transaction category or sector
1994
1996
Q2
Ql
Q3
Q4
Ql
02
Q3
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
13,013.7
13,714.1
14,440.8
15,208.8
14,608.2
14,727.5
14,931.5
15,208.8
15,440.4
15,636.0
15,865.1
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages .. .
3.492.3
3,465.6
26.7
3,636.7
3.608.5
28.2
3,781.8
3,755.1
26.6
3.804.9
3,778.3
3,829.8
3,803.5
26.3
3,760.6
3,734.3
26.3
3,771.2
3,745.1
26.1
3,804.9
3,778.3
26.5
26.5
3,830.8
3,804.8
25.9
3,749.0
3,723.4
25.6
3,720.2
3.694.7
25.5
5 Nonfederal
9,521.4
10,659.0
11,403.9
10.778.4
10,966.9
11,160.2
11,403.9
11,609.7
11.887.1
12,145.0
168.6
1,367.5
1,489.5
1,035.6
839.3
5,239.3
4,029.3
301.4
818.3
90.4
1,264.1
168.7
1,305.1
1,418.7
964.5
784.4
4,950.6
3,805.7
290.9
766.3
87.7
1.186.4
179.3
1,326.8
1,440.2
1,000.2
788.5
5,026.8
3,860.6
294.2
783.4
88.7
1,205.0
176.6
1,340.2
1,470.9
1,000.1
802.9
5,142.7
3,956.8
295.8
800.3
89.8
1,226.7
168.6
1,367.5
1,489.5
1,035.6
839.3
5,239.3
4,029.3
301.4
818.3
90.4
1,264.1
193.1
1.397.1
1,528.8
1,051.6
865.6
5,337.4
4,101.3
306.4
838.3
91.4
1,236.1
202.5
1,429.3
1,569.0
1,097.0
873.8
5.458.6
4,192.4
312.0
861.2
93.0
1,256.9
216.9
1,440.0
1,591.0
1,123.9
887.6
5,596.9
4,297.6
317.7
887.2
94.3
1,288.7
5,379.0
4,685.7
3,297.4
1,232.9
155.4
1,095.5
5,500.9
4,783.5
3,376.1
1,251.2
156.3
1,119.5
5,558.5
4,906.9
3,479.9
1,271.6
155.4
1.144.3
5,683.7
5,032.5
3.575.5
1,296.1
160.9
1,170.8
5,823.5
5,142.7
3,656.7
1,323.0
163.0
1,178.8
6
7
8
9
10
11
12
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
139.2
1,341.7
1,253.0
759.9
669.6
4,374.1
3,355.5
265.6
670.0
83.0
983.9
157.4
1,293.5
1,326.3
862.1
736.9
4,578.4
3,529.4
690.8
84.6
1,122.8
156.4
1,296.0
1,398.8
928.3
770.6
4,897.2
3,761.0
289.9
759.1
87.1
1,211.6
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
4,452.5
3.947.3
2.683.2
1.121.8
142.2
1.121.7
4,801.1
4,206.0
2,915.1
1.145.8
145.1
1,070.2
5,142.7
4,452.9
3,115.3
1,187.7
149.9
1,063.4
5,500.9
4,783.5
3,376.1
1,251.2
156.3
1,119.5
5,177.1
4,532.3
3,184.3
1,199.7
148.3
1.069.0
5,268.6
4,612.2
3,241.9
1,216.8
153.4
1.086.1
23 Foreign credit market debt held in
United States
370.8
441.9
518.8
569.6
524.3
539.2
569.6
584.1
606.6
600.3
24
25
26
27
42.7
242.3
26.1
59.8
56.2
65.1
394.4
52.1
58.0
69.3
351.6
43.5
59.9
71.3
361.2
46.4
60.3
64.3
386.3
65.1
394.4
52.1
58.0
76.7
398.0
53.4
55.9
71.4
291.9
34.6
59.3
67.5
347.7
43.7
60.0
424.9
55.5
54.8
74.0
416.2
56.4
53.8
13,384.5
14,156.0
14,959.6
15,778.4
15,132.5
15,266.7
15,489.2
15,778.4
16,024.5
16,242.6
16,465.5
Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances .
28 Total credit market debt owed by nonftnandal
sectors, domestic and foreign
273.6
Financial sectors
29 Total credit market debt owed by
financial sectors
30
31
32
33
34
35
36
37
38
39
By instrument
Federal government-related
Government-sponsored enterprise securities .
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
40
41
42
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations
3,822.2
4,281.2
4,837.3
5,448.6
4,916.5
5,084.9
5,205.3
5,448.6
5,653.5
5,911.5
6,164.5
2,172.7
700.6
1,472.1
.0
1,649.5
441.6
1,008.8
48.9
131.6
18.7
2.376.8
806.5
1,570.3
.0
1,904.4
486.9
1,205.4
2,608.3
2,821.0
995.3
1,825.8
.0
2,627.5
745.7
1,560.0
2,634.7
2.706.2
944.2
1,762.1
.0
2,378.6
642.5
1,457.6
69.2
173.7
35.6
2,746.5
2,821.0
995.3
1,825.8
.0
2,627.5
745.7
1,560.0
2.981.2
1,072.5
1,908.7
3,121.6
1,146.0
1,975.6
.0
3,042.9
874.2
1.777.3
99.3
246.2
46.0
125.7
160.5
144.3
.4
1.8
944.2
1,762.1
917.9
35.3
557.8
28.3
56.6
350.0
130.0
164.0
149.8
.5
1.9
955.8
1.790.7
989.0
94.5
133.6
112.4
.5
.6
700.6
1,472.1
579.0
34.3
433.7
18.7
31.1
211.0
52.8
135.0
24.3
102.6
148.0
115.0
.4
.5
806.5
1,570.3
720.1
29.3
483.9
19.1
36.8
248.6
896.9
1,711.4
.0
2,229.1
579.1
1,385.1
69.7
162.9
32.2
113.6
150.0
140.5
.4
1.6
896.9
1,711.4
873.8
27.3
529.8
31.5
47.8
312.7
894.7
1,740.0
0
2,281.8
623.0
1,396.5
83.3
70.6
198.5
40.0
157.9
33.8
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,089.3
35.3
554.5
30.3
115.3
151 6
1363
4
72.6
373.8
1.8
894.7
1,740.0
889.9
26.6
528.4
31.4
51.6
348.6
955.8
1,790.7
.0
2,458.8
684.7
1,478.1
74.8
183.0
38.2
33.6
532.7
29.2
64.6
363.4
83.3
2,877.9
1,030.9
1,847.0
0
2,775.6
804.9
1.634.7
87.3
198.5
40.0
206.6
42.0
2,930.3
838.9
1,732.5
89.3
225.6
44.0
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,089.3
35.3
554.5
30.3
148.7
181.2
162.9
.7
1.8
1,030.9
1,847.0
1,147.2
35.1
571.9
31.6
81.7
412.9
159.6
190.5
170.7
.8
1.6
1,072.5
1.908.7
1,236.7
40.1
596.9
30.2
90.1
413.0
169.6
200.3
186.6
1.0
2.0
1,146.0
1,975.6
1,308.7
44.2
589.5
30.9
97.0
413.1
72.6
373.8
.0
All sectors
53 Total credit market debt, domestic and foreign
54
55
56
57
58
59
60
61
Open market paper
US. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
17,206.8
18,437.2
19,797.0
21,227.0
20,049.0
20,351.5
20,694.5
21,227.0
21,678.0
22,154.1
22,630.0
623.5
5,665.0
1.341.7
2.504.0
834.9
860.9
4.392.8
983.9
700.4
6,013.6
1,293.5
2,823.6
949.6
931.1
4,602.7
1,122.8
803.0
6,390.0
1,296.0
3,131.7
1,041.7
993.6
4,929.4
1,211.6
979.4
6,625.9
1,367.5
3,444.0
1,171.0
1,095.8
5,279.3
1,264.1
861.1
6.464.5
1,305.1
3,166.8
1,078.6
1,002.3
4,984.3
1,186.4
893.1
6,466.8
1,326.8
3,259.1
1,115.8
1,022.5
5,062.5
1,205.0
925.7
6,517.7
1,340.2
3,335.3
1,123.1
1,044.9
5,180.9
1,226.7
979.4
6,625.9
1,367.5
3,444.0
1,171.0
1,095.8
5,279.3
1,264.1
1,074.8
6,708.6
1,397.1
3,561.5
1,192.3
1,128.2
5,379.4
1,236.1
1,112.7
6,730.2
1,429.3
3,726.4
1,241.8
1,154.3
5,502.6
1,256.9
1,165.1
6,841.8
1,440.0
3,784.5
1,279.6
1,187.5
5,642.9
1,288.7
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.
Flow of Funds
1.60
A41
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1997
1994
Transaction category or sector
1995
1996
Ql
CREDIT MARKRT DEBT OUTSTANDING
Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monelary authority
Commercial banking
U.S.-chartered banks
Foreign banking offices in United States
Bank holding companies
Banks in US.-affiliated areas
Savings institutions
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
Stale and local government retirement funds
Money market mutual funds
Mutual funds
Closed-end funds
Government-sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
02
Q3
Q4
01
Q2
Q3
2
1 Total credit market assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
1998'
1997
..
..
17,206.8
18,437.2
19,797.0
21,227.0
20,049.0
20,351.5
20,694.5
21,227.0
21,678.0
22,154.1
22,630.0
3,038.1
1.981.4
289.2
37.6
729 9
203.4
1,2160
12,749 2
368.2
3 254 3
2,869^6
337.1
18.4
29.2
920.8
246.8
248^0
1.482.6
446 4
6569
455.8
459.0
718.8
86.0
661 1
1.472 1
541.7
476.2
36.5
13.3
93 3
109.3
2,890.0
1,928.7
280.4
42.3
638.6
203.2
1,530.3
13^813.7
380.8
3,520.1
3^056.1
412.6
18.0
33.4
913.3
263.0
239.7
1,581.8
468.7
718.2
483.3
545.5
771.3
96.4
748.0
1,570.3
661.0
526.2
33.0
15.5
183.4
94.1
2,919.3
1,966.7
291.0
46.7
614.8
195.5
1,931.2
14J50.9
393.1
3,707.7
3J75.8
475.8
22.0
34.1
933.2
288.5
232.0
1,654.3
491 2
766.5
529.2
634.3
820.2
101.1
813.6
1,711.4
784.4
544.5
41.2
17.5
167.7
119.3
2.761.1
1,791.3
305.8
49.4
614.5
200.4
2,258.9
16flO6.6
431.4
4,031.9
.W50.7
516.1
27.4
37.8
928.5
305.3
239.5
1,755.2
515.3
834.2
565.8
721.9
901.1
97.7
908.6
1,825.8
950.4
566.4
57.6
15.5
181.4
173.2
2,849.1
1,909.6
286.8
47.4
605.4
195.9
2,019.4
14*984.6
397.1
3,775.7
3^218.1
499.5
22.5
35.6
931.9
291.2
232.8
1,680.2
491 6
780.3
531.6
659.0
838.5
100.3
824.3
1,740.0
794.6
552.4
40.9
17.0
164.1
141.1
2,798.0
1,849.7
281.4
48.0
618.9
197.3
2,095.0
15*26L2
412.4
3,856.8
1,195.2
501.8
23.8
36.1
937.8
299.9
235^5
1,724.1
498.6
794^9
542.7
656.5
861.3
99.4
854.8
1.762.1
818.9
553.1
34.8
16.5
161.2
139.9
2.739.4
1,793.7
290.4
48.7
606.6
198.2
2,196.4
15!560.5
412.7
3,912.9
335 L9
501.0
22.5
37.5
929.0
303.9
237.3
1,750.4
506.6
811.5
562.0
678.7
890.4
98,5
868.7
1,790.7
863.3
564.4
55.5
15.9
165.1
142.9
2,761.1
1,791.3
305.8
49.4
614.5
200.4
2,258.9
16*006.6
431 4
4,031.9
3!450.7
516.1
27.4
37.8
928.5
305.3
239.5
1,755.2
515.3
834.2
565.8
721.9
901.1
97 7
908.6
1.825.8
950.4
566.4
57.6
15.5
181.4
173.2
2.699.8
1,744.4
294.7
50.2
610.5
204.3
2,323.5
16A5O.3
433.8
4.093.3
3!5()5.1
517.9
31.2
39.2
931.0
306.7
240.1
1,784.8
521.1
852.3
582.5
775.0
939.3
97.1
949.5
1,847.0
993.5
572.0
60.2
15.0
244.0
212.0
2.766.7
1.778.2
289.7
51.0
647.8
207.5
2,401.6
16J78.3
440.3
4,136.4
2.75S.4
1.739.5
291.8
51.8
675.3
210.9
2.421.7
I7'239^O
446.5
4 195 6
3.616.2
510.0
28.3
41.1
937.8
320.7
24 L4
1,823.3
518.3
17,206.8
18,437.2
19,797.0
21,227.0
20,049.0
20,351.5
20,694.5
21,227.0
21,678.0
22,154.1
22,630.0
53.2
8.0
17.6
373.9
280.1
1.242 0
2.183.2
411.2
602 9
549.5
1,477.3
279 0
505.3
4,870.5
1,140.6
101.4
6994
5,331.6
63.7
10.2
18.2
418.8
290.7
1,229.3
2,279.7
476.9
745.3
659.9
1,852.8
'305.7
550.2
5,589.4
1,242.2
107.6
803.0
5,705.9
53.7
9.7
18.3
516.1
240.8
1,245.1
2,377.0
590.9
891.1
699.9
2 342 4
358.1
593.8
6,315.4
1,319.0
123.8
871.7
6,028.5
48.9
9.2
18.3
619.4
219.7
1.286.6
2,474.1
713.4
1,048.7
815.1
2 989 4
468.2
646.7
7,399.0
1,417.0
138.4
1.082.8
6.504.4
46.3
9.2
18.4
562.8
210.9
1,220.0
2,427.1
606.0
950.8
713.8
2,410.6
380.0
606.2
6,402.3
1,301.8
137 3
888.7
6.302.8
46.7
9.2
18.4
568.8
197.1
1,265.3
2,432.3
646.7
952.4
766.7
2,717.5
414.8
621.9
6,907.5
1,319.8
133.9
982.9
6,276.1
46.1
9.2
18.7
597.8
189.4
1,234.2
2,438.8
696.1
1,005.1
795.4
2 973 6
432.2
637.6
7,290.6
1,352.0
143.2
1,058.9
6,488.9
48.9
9.2
18.3
619.4
219.7
1,286.6
2.474.1
713.4
1,048.7
815.1
2,989.4
468.2
646.7
7,399.0
1.417.0
138.4
1,082.8
6,504.4
48.2
9.2
18.4
608.1
182.7
1.259.4
2.525.2
760.9
1,130.7
879.5
3,340.2
505.3
658.6
7,957.6
1.407.0
149.4
1.179.3
6.789.6
50.1
9.2
18.4
630.4
192.2
1,321.0
2.530.8
754.0
1,153.7
867.0
3.439.0
481.0
667.8
8,052.7
1,413.9
140.4
1,207.2
6,874.4
54.5
9.2
18.8
649.6
192.8
1.282.8
2.553.4
776.2
1.249.7
913.6
3,117.3
491.8
674.3
7.528.6
1.422.8
150.8
1.112.4
7.210.9
37,333.7
40,786.5
44,392.1
49,126.2
45,244.2
46,629.6
48,102.1
49,126.2
51,087.1
51,957.0
52,039.5
21.4
10,062.4
3,806.7
21.1
12,776.0
4,129.6
20.9
10,063.5
3,903.4
21.1
11,627 0
3.992^9
21.0
12,649.4
4.059.6
21 1
12,776.0
4,129.6
21.2
14,397.6
4,140.2
21.0
14,556.1
4,169.2
21.2
12,758.4
4,151.0
525.6
26.8
40.4
928.1
315.1
240.9
1,801.9
520.8
887.7
600.2
815.9
977.6
96.5
985.9
1.908.7
1,075.3
579.0
57.4
14.5
196.9
199.2
9 m
621.4
869.9
1.007.0
95.o
1.048.1
1,975.6
1.138.4
593.7
58.9
14.0
227.8
192.7
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Total credit market debt
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Mutual tund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade payables
Taxes payable
Investment in bank personal trusts
Miscellaneous
. •
5} Total liabilities
Financial assets not included in liabilities ( + )
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
57
58
59
60
61
62
Liabilities not identified as assets f - )
Treasury currency
Foreign deposits
Net inlerbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
Floats not included in assets ( —)
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Total identified to sectors as assets
..
21.1
6,237 9
3.380.4
22.1
8 331 3
3*598.7
-5.4
325.4
-6.5
67.8
48.8
-1.039.2
-5.8
360.2
-9.0
90.7
62.4
-1,324.3
-6.7
431.2
-10.6
90.0
76.9
-1,698.4
-7.3
534.5
-32.2
149.5
91.5
-2,106.4
-6.8
475.4
-1.6
68.1
74.8
-1.576.9
-6.9
478.1
-8.1
108.6
77.6
-1.675.4
-6.7
501.5
-22.1
116.4
88.0
-1,656.8
-7.3
534.5
-32.2
149.5
91.5
-2.106.4
-7.4
510.8
-21.2
177.8
87.3
-2,017.5
-7.4
547.1
-17 1
145.7
91.6
-2,022.3
-7 1
558.1
-15.5
170.4
97.9
-1,990.9
3.4
38.0
-245.9
3.1
34.2
-257.6
-1.6
30.1
-284.5
-8.1
26.2
-280.5
-9.7
25.6
-339.5
-6.8
27.9
-366.6
-7.8
19.5
-372.3
-8.1
26.2
-280.5
-10.4
21.4
-330.0
-16.1
24.2
-365.9
-12.0
15.7
-390.4
47,786.6
53,784.7
59,656.3
67,685.8
60,522.6
63,642.1
66,172.6
67,685.8
71,235.2
72,323.7
70.543.7
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
L. 1 and L.5. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares.
A42
2.10
Domestic Nonfinancial Statistics • February 1999
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
Monthly data seasonally adjusted, and indexes 1992 = 100, except as noted
1998
Measure
1995
1996
1997
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.'
Nov.
114 4
119.S
126.8
no 7
131 3
131 9
130.6
130 5
132 4
1319
132.2
131.8
110.7
111.5
109.5
114.9
108.1
120.4
114.4
115.5
111.3
122.7
110.9
127.8
119.6
121.1
114.1
133.9
115.2
138.2
123.2
I25..1
115.8
142.4
116.9
142.7
124.0
126.2
116.4
143.6
117.3
143.1
124.5
126.6
116.8
144.2
118.2
143.6
123.6
125.5
115.1
144.1
118.0
141.8
123.3
124.7
114.0
143.9
119.1
141.9
124.9
126.8
116.1
146.0
119.1
144.4
124.2
126.0
114.8
146.1
118.4
144.4
124.8
126.7
115.3
147.?
118.9
144.1
124.4
126.3
115.4
146.1
118.5
143.7
1159
121.4
129 7
134 1
134 9
135 4
1337
1336
135 7
135 2
136 0
135 9
82.7
814
82.0
81.6
81.7
81.6
80.2
79.8
80.7
80.1
80.2
79.8
10 Construction contracts3
122.1
131.0
142.4
145.0
150.0
151.0
150.0
152.0
152.0
145.0
139.0
143.0
11 Nonagnculturai employment, total4
12 Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
15
Service-producing
17
Wages and salary disbursements
18
Manufacturing
19
Disposable persona! income5
20 Retail sales5
114.9
98.3
97.5
99.0
120.2
156.1
150.9
130.3
156.4
151.5
117.2
99.0
97.2
98.4
123.0
165.2
159.8
135.7
164.0
159.6
119.9
100.3
97.6
98.9
126.2
174.5
171.2
144.7
171.7
166.9
122.5
102.4
99,1
100.5
128.9
180.9
179.5
151.2
176.7
172.4
122.8
102.7
99,1
100.4
129.3
181.4
180.3
151.0
177.0
173.7
123.2
102.5
99.0
100.1
129.7
182.2
181.5
151.5
177.5
175.8
123.3
102.6
98.9
99.9
130.0
182.7
181.8
150.5
177.9
176.0
123.5
101.9
97.9
98.4
130.4
183.4
182.8
149.6
178.7
174.8
123.8
102.4
98.4
99.1
130.6
184.2
184.1
151.3
179.4
174.9
123.9
102.3
98.4
99.3
130.9
184.8
184.6
152.1
179.9
175.6
124.1
102.2
98.1
99.0
131.1
185.6
185.5
151.7
180.8
177.7
124.3
102.2
97.8
98.6
131.4
186.4
186.6
151.7
181.5
178.9
Prices"
21 Consumer (1982-84=100)
22 Producer finished goods (1982= 100)
152.4
127.9
156.9
131.3
160.5
131.8
162.2
130.1
162.5
130.4
162.8
130.6
163.0
130.7
163.2
131.0
163.4
130.6
163.6
130.6
164.0
131.4
164.0
130.8
Market groupings
3
4
5
Final, total
Consumer goods
Equipment
7 Materials
Industry groupings
9 Capacity utilization, manufacturing (percent) ..
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site. http://www.federalreserve.gov/releases/gI7, The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1998. The recent annual revision is described in an article in the
January 1999 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reseire Bulletin, vol 83 (February
1997). pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, sec "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserxe 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.
2.11
X Index of dollar value of total construction contracts, including residential, nonresidential. and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings. Series covers
employees only, excluding personnel in the armed forces
5. Based on data from US Department of Commerce, Survey of Current Business.
f>. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (nol indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Sitn'ey of Current Business.
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons: monthly data seasonally adjusted
1998
Category
1995
1996
1997
Apr
May
June
July
Aug.
Sept.'
Oct.'
Nov.
HOUSEHOLD SURVEY DATA 1
1 Civilian labor force2
Employment
2
Nonagricultural industries3
4
5
Unemployment
Number
Rate (percent of civilian labor force)
132.304
133,943
136.297'
137,242
137,364
137,447
137,296
137,415
138,075
137.976
138,253
121,460
3,440
123,264
3,443
126,159
3,399
128,033
3,350
128,118
3,335
127.867
3,343
127,626
3,441
127,640
3,529
128,247
3,518
128,075
3,603
128,810
3,344
7,404
5.6
7,236
5.4
6.739
4.9
5.859
4.3
5,910
4.3
6,237
4.5
6,230
4.5
6,247
4.5
6,310
4.6
6,299
4.6
6.099
4.4
117.191
119,523
122,257
125,234
125,562
125,751
125,869
126,191
126,363
126.508
126,775
18,524
581
5,160
6,132
27,565
6,806
33,117
19,305
18,457
574
5.400
6,261
28,108
6,899
34,377
19,447
18,538
573
5,627
6,426
28,788
7,053
35,597
19,655
18,827
582
5,930
6,513
29,133
7,289
37,196
19.764
18,805
579
5,917
6,534
29,238
7,311
37,350
19.828
18.780
578
5.946
6,538
29,269
7,333
37,494
19,813
18,594
571
5,970
6,550
29,374
7,370
37,614
19,826
18,693
571
5,989
6,570
29,383
7,372
37,691
19,922
18,692
568
5,981
6,579
29,454
7,393
37,768
19.928
18,631
564
6,013
6,593
29,459
7,415
37,892
19,941
18,584
561
6,060
6,600
29,531
7,438
38,042
19.959
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment4
7 Manufacturing
8 Mining
10 Transportation and public utilities
11 Trade
13 Service
14 Government
1 Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2, Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annual data are averages of monthly figures. By definition, seasonally does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
4. Includes all full- and part-time employees who worked dunng, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
Selected Measures A43
2.12
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1997
1997
1998
1997
1998
1998
Series
Q4
Ql
Q3<
Q2
Q4
Ql
Q2
03
Capacity (percen of 1992 output)
Output (1992=100)
Q4
Ql
Q2
03'
Capacity utilizati •>n rate (percent)2
1 Total industry
129.8
130.4
I3I.3
131.6
155.7
157.6
159.6
161.5
83.4
82.7
82.3
81.5
2 Manufacturing
133.1
133.8
134.7
134.8
161.3
163.5
165.8
168.1
82.5
81.8
81.2
80.2
3
4
Primary processing
Advanced processing4
121.0
139.0
121 2
140.1
121.1
141.4
120.2
142.1
141.8
170.7
143.0
173.5
144.0
176.4
145.1
179.2
85.3
81.4
84.8
80.8
84.1
80.2
82.8
79.3
5
6
7
H
9
10
1]
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
153.0
114.5
128.5
127.9
129.1
187.5
273.7
147.5
154 4
115.6
128.2
128.3
128.0
194.1
278.2
140.8
156.1
116.4
125.3
124.0
127.0
203.0
282.8
135.3
157.9
117.6
122.3
118.6
126.6
208.0
292.5
137.2
186.5
140.8
139.7
139.4
139.8
219.5
335.1
181.4
190.2
142.0
140.8
140.9
140.4
226.5
351.2
182.8
193.9
143.0
142.0
142.8
140.8
234.7
366.6
183.9
197.5
143.9
143.2
144.6
141.3
242.9
381.6
184.9
82.1
81.3
92.0
91 8
92.!
85.4
81.7
81.3
81.2
81.4
91.0
91.0
91.2
85.7
79.2
77.0
80 5
81.4
88.3
86.9
90.1
86.5
77.1
73.6
79.9
81.7
85.4
82.0
89.6
85.6
76.6
74.2
99.3
102.7
106.1
106.6
126.7
127.0
127.5
128.0
78.4
80.8
83.2
83.3
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
112.4
113.5
115.8
116.6
128.2
110.3
112.7
113.6
115.5
116.8
127.3
111.6
112.7
113.2
115.0
116.9
127.5
112.0
111.3
112.1
115.0
114.4
128.4
112.7
135.0
131.9
129.6
146.1
138.2
115.8
135.8
134.8
130.6
147.1
139.4
116.2
136.6
134.9
131.6
148.0
140.7
116.5
137.5
135.1
132.5
148.9
141.9
116.8
83.3
84.7
89 <
79.8
92.8
95.2
83.1
84.3
88.5
79.4
91.3
96.1
82.5
83.9
87.4
79.0
90.6
96.1
81.0
83.0
86.8
76.8
90.5
96.5
105.9
114.2
115.1
107.0
110.9
112.8
105.3
115.6
118.3
103.7
119.7
121.2
119.4
125.8
123.5
119.7
125.9
123.5
1199
126.2
123.8
120.1
126.5
124.0
88 6
90.8
93.2
89 4
88.1
91.3
87.8
91.6
95.6
86.3
94.6
97.7
1973
1975
Previous cycle5
High
Low
High
20 Mining
21 Utilities
22
Electric
Low
Latest cycle6
High
Low
1997
Nov.
1998
June
July
Aug.r
Sept.'
Oct.
Nov.p
Capacity utilization rate (percent):
I Total industry
89.2
72.6
87.3
71.1
85.4
78.1
83.4
81.5
81.1
82.0
81.3
81.2
80.6
^ Manufacturing
88.5
70.5
86.9
69.0
85 7
76.6
82.6
80.2
79.8
80.7
80.1
80.2
79.8
91.2
87.2
68.2
71.8
88.1
86.7
66.2
70.4
88.9
84.2
77.7
76.1
85.4
81.6
83.3
79.2
83.4
78.5
83.1
79.9
82.0
79.5
82.1
79.6
81.7
79.3
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
89.2
88.7
100.2
105.8
90.8
68.9
61.2
65.9
66.6
59.8
87.7
87 9
94.2
95.8
91.1
63.9
60.8
45.1
37.0
60.1
84.6
936
92.7
95.2
89.3
73.1
75.5
73.7
71.8
74.2
82.2
81.5
92.6
91.9
93.6
79.1
81.5
85.8
83.5
88.6
78.6
81.8
85.9
83.5
88.9
80.9
S2.3
86 9
84.7
89.7
80.2
80.9
83.4
77.9
90.3
80.4
81.5
83.4
78.4
89.8
79.8
82.3
81.0
74.1
89.5
96.0
89.2
93.4
74.3
64.7
51.3
93.2
89.4
95.0
64.0
71.6
45.5
85.4
84.0
89.1
72.3
75.0
55.9
85.3
82.0
82.2
86.6
76.8
65.7
87.0
76.8
58.3
85.2
76.2
83.4
84.7
76.9
80.9
84.8
76.9
80.6
83.7
76.7
80.6
78.4
67.6
81.9
66.6
87.3
79.2
78.1
83.2
83.8
83.5
82.5
83.2
81.7
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.8
91.4
97.1
87.6
102.0
96.7
71.7
60.0
69.2
69.7
50.6
81.1
87.5
91.2
96.1
84.6
90.9
90.0
76.4
72.3
80.6
69.9
63.4
66.8
87.3
90.4
93.5
86.2
97.0
88.5
80.7
77.7
85.0
79.3
74.8
85.1
83.4
85.2
89.6
79.5
93.1
94.2
81.8
83.0
87 1
78.3
89.7
95.7
81.7
83.9
87 7
77.9
91.6
97.2
80 9
87 0
76.7
92.9
97 7
80.2
82.3
85.7
75.9
87.1
94.6
80.4
83.3
86.7
76.2
87.8
91.9
80.3
82.6
85.3
76.2
88.7
95.4
94.3
96.2
99.0
88.2
82.9
82.7
96.0
89.1
88.2
80.3
75.9
78.9
88.0
92.6
95.0
87.0
83.4
87.1
87.9
90.3
92.4
87.3
94.0
97.7
87.2
93.7
96.7
86.?
95.1
97.8
85.4
95.2
98.8
84.7
91.6
94.6
83.5
88.5
91.7
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing3
Advanced processing4
20 Mining
21 Utilities
22 Electric
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1998. The recent annual revision is described in an article in the
January 1999 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacily utilization, see "Industrial Production and Capacity Utilization.
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.
828
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing; chemical producis such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment, instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982
6. Monthly highs, 1988-89; monthly lows, 1990-91.
A44
2.13
Domestic Nonfinancial Statistics • February 1999
INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1992
proportion
1997
1997
avg.
Apr.
May
June
July
Aug.r
Sept/
Oct.
Nov.c
Index (1992 = 100)
MAJOR MARKETS
1 Total index
100.0
126.8
129.9
130.3
130.3
130.2
130.7
131.3
131.9
130.6
130.5
132.4
131.9
132.2
131.8
2 Products
3
Final products
4
Consumer goods, total
5
Durable consumer goods
6
Aulomotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods . . . .
11
Other
12
Appliances, televisions, and air
conditioners
13
Carpeting and furniture
14
Miscellaneous home goods
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5
119.6
121.1
114.1
129.6
129,1
135.7
114.9
157.1
118.5
130.1
122.2
124.1
115.9
135.1
138.4
149.1
119.4
177.3
122.1
132.4
122.3
124.0
115.4
133.3
134.5
144.1
113.1
173.5
119.8
132.3
122.6
124.5
116.0
135.1
133.0
141.0
115.1
166.1
120.5
136.7
122.5
124.2
115.2
134.5
131.5
138.6
104.8
170.5
120.3
136.9
123.2
125.3
115.8
135.9
132.7
138.9
106.5
169.8
122.7
138.5
124.0
126.2
116.4
136.9
134.6
141.3
107.4
173.8
123.7
138.8
124.5
126.6
116.8
138.3
136.8
143.5
108.4
177.1
126.0
139.4
123.6
125.5
115.1
130.7
121.7
118.2
93.8
142.2
125.4
137.8
123.3
124.7
114.0
124.6
107.3
92.8
75.8
110.0
125.6
138.7
124.9
126.8
116.1
140.1
141.7
151.4
124.4
178.9
127.6
138.5
124.2
126.0
114.8
137.4
135.9
143.4
128.3
161.1
124.9
138.3
124.8
126.7
115.3
140.3
141.1
150.6
119.9
181.0
127.4
139.4
124.4
126.3
115.4
140.4
140.0
149 7
113.6
184.3
126.0
140.4
1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1
176,1
112.8
114.2
110.2
108.2
101.1
119.5
108.0
111.6
109.3
112.3
186.5
116.8
112.4
111.2
109.2
100.0
120.9
110.8
112.0
107.4
113.9
187.4
112.6
114.1
110.9
108.4
100.6
121.8
109.5
112.5
110.2
113.2
195.5
119.2
115.6
111.3
110.4
100,7
121.3
109.2
109.1
111.0
107.6
197.9
115.8
116.8
110.5
110.1
99.3
121.2
107 7
106.5
110.4
104.0
203.8
114.3
118.3
110.8
109.1
100.4
121.3
106.3
113.2
111.2
113J
201.4
115.9
118.2
111.4
110.2
99.9
123.2
106.2
111.5
111.6
111.0
202.7
119.1
117.9
111.5
110.8
98.8
122.5
105.7
112.5
110.9
112.9
199.9
117.0
117.1
111.2
108.5
98.8
122.8
105.3
118.2
111.4
121.2
207.8
117.3
115.9
111.2
108.5
98.4
122.2
106.3
118.4
112.9
120.7
209.4
116.7
115.3
110.3
107.5
97.7
119.0
106.6
120.1
112.1
123.7
209.7
116.3
115.2
109.4
106.9
97.1
117.7
105.9
118.0
108.3
122.5
211.3
120.0
114.6
109.2
107.8
95.8
119.0
105.3
113.5
104.5
117.7
216.5
120.0
114.5
109.3
108.4
94.6
119.9
104.7
112.2
110.0
112.8
23
24
25
26
27
28
29
30
31
32
33
Equipment
Business equipment
Information processing and related
Computer and office equipment . . . .
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
17.2
13.2
5.4
I.I
4.0
2.5
1.2
1.3
3.3
.6
133.9
148.7
181.6
415.8
136.1
116.7
124.0
136.0
76.2
149.3
141.4
138.6
155.4
191.8
474.3
138.0
127 0
133.4
138.8
75.7
151.6
141.5
139.4
156.5
194.5
496.8
139.8
125.6
127.4
138.7
75.8
149.6
142.3
139.5
156.3
195.3
520.3
138.4
126.0
126.2
137.7
76.2
153.9
147.1
140.3
157.0
199.2
547.4
136.6
126.8
120.9
136.9
76.3
157.4
149.6
142.4
160.1
202.3
584.9
139.4
130.3
121.6
139.8
75.9
155.7
148.0
143.6
162.2
206.0
601.5
139.4
133.6
123.4
140.8
75.9
147.6
148.0
144.2
163.1
209.2
620.6
138.1
135.5
125.1
139.6
76.0
147.1
149.0
144.1
163.6
210.3
638.6
142.9
128.2
108.6
141.7
75.8
136.7
146.1
143.9
163.5
211.8
654.6
144.2
121.9
91.7
146.6
76.1
131.9
151.1
146.0
166.6
213.1
671.6
142.3
141.6
136.9
132.6
76.5
127.7
145.7
146.1
167.2
217.2
698.3
139.4
139.8
135.6
140.9
75.6
123.4
147.8
147.3
168.7
219.7
720.8
141.2
140 4
133.8
140.5
76.4
119.4
150.9
146.1
167.7
220.6
742.8
139.5
138.7
133.2
137.7
75.6
114.1
151.0
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.2
5.3
8.9
115.2
122.4
111.0
116.3
123.6
112.0
117.0
124.2
112.6
117.0
125.5
112.0
117.1
125.7
112.1
116.9
124.7
112.2
117.3
125.4
112.5
118.2
126.6
113.3
118.0
126.1
113.2
119.1
128.5
113.6
119.1
128.0
113.8
118.4
126.7
113.4
118.9
128.1
113.4
118.5
129.0
112.4
39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
9.7
6.3
3.3
138.2
165.0
143.1
238.5
127.2
121.9
113.4
111.2
115.9
114.4
110.0
103.7
101.4
108.0
142.4
173.2
147.0
259.2
130.5
125.8
115.5
112.4
116.8
116.9
113.0
102.2
99.7
107.1
143.4
174.1
150.0
261 1
130.0
123.5
116.1
113.5
117.9
117.6
112.3
103.8
101.1
109.1
142.6
173.6
143.1
263.4
130.7
126.1
114.8
109.9
117.2
117.2
110.0
103.0
101.6
105.8
142.5
173.5
144.2
264.5
129.7
125.9
114.9
111.1
117.0
116.5
111.4
102.8
101.4
105.6
142.7
173.7
143.7
265.8
129.7
123.7
114.2
110.6
116.3
115.6
111.0
103.7
101.0
109.0
143.1
174.5
144.4
266.9
130.3
123.5
114.4
110.5
116.3
116.2
110.9
103.8
101.3
108.6
143.6
175.4
147.9
268.6
129.6
123.0
114.1
111.0
115.5
115.6
111.2
104.3
101.0
110.8
141.8
171.7
131.9
271.0
128.3
120.1
113.9
110.2
117.3
114.8
110.6
104.8
101.8
110.7
141.9
171.8
129.7
274.1
128.1
120.2
114.1
110.1
117.3
114.6
111.7
104.8
102.9
108.6
144.4
177.4
149.6
278.0
128.3
121.9
113.1
107.7
116.4
113.6
111.6
104.4
101.2
110.7
144.4
177.7
147.6
282.7
127.7
117.9
111.9
107.6
115.0
111.7
111.5
105.3
102.6
110.7
144.1
178.2
145.9
285.5
128.1
117.9
111.4
108.7
115.8
110.5
110.2
103.8
100.9
109.4
143.7
178.5
145.9
288.5
127.5
115.3
110.9
108.1
114.5
110.2
110.3
101.9
99.3
107.0
97.1
95.1
126.6
126.1
129.6
129.0
130.2
129.5
130.2
129.7
130.2
129.7
130.7
130.3
131.3
130.9
131.8
131.3
131.2
131.2
131.6
131.7
132.1
131.3
131.7
131.0
131.9
1314
131.6
130.9
98.2
27.4
26.2
123.8
112.9
114.4
126.6
114.2
116.4
126.9
113.8
115.7
126.7
114.7
116.8
126.4
113.9
116.2
126.7
114.5
116.1
127.3
115.1
117.0
127.7
115.3
117.3
126.4
114.8
114.7
126.2
114.9
113.5
128.0
114.3
115.7
127.4
113.3
114.5
127.6
113.4
115.5
127.1
113.6
115.7
151.5
157.9
159.9
159.7
161.1
164.6
166.7
167.4
170.0
171.8
169.9
170.8
172.7
134.4
149.0
139.2
155.1
139.7
155.8
138.8
155.0
138.7
155.0
140.8
154.9
142.3
155.5
142.6
156.0
142.7
153.4
142.2
153.6
144.8
156.9
144.8
156.6
145.8
156.8
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
Paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Converted fuel materials
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and pans
53 Total excluding computer and office
equipment
54 Consumer goods excluding autos and trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy
12.1
29.8
144.3
156.8
Selected Measures A45
2.13
INDUSTRIAL PRODUCTION
1992
proportion
SIC
code
Group
Indexes and Gross Value1—Continued
1998
1997
1997
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
Oct.
Nov.P
Index (1992 = 100)
MAJOR INDUSTRIES
59 Ibtal index
100.0
126.8
129.9
130.3
130.3
130.2
130.7
131.3
131.9
130.6
130.5
132.4
131.9
132.2
131.8
85.4
26.5
58.9
129.7
119.1
134.7
133.3
121.1
139.3
133.7
121.5
139.7
133.8
121.6
139.8
133.7
121.1
140.0
134.1
121.0
140.6
134.9
121.5
141.6
135.4
121.4
142.3
133.7
120.2
140.4
133.6
120.7
139.9
135.7
120.6
143.3
135.2
119.3
143.2
136.0
119.7
144.2
135.9
119.4
144.3
24
25
45.0
2.0
1.4
147.1
114.2
117.7
153.3
114.8
119.7
154.0
115.0
120.4
153.9
115.2
119.4
154.0
116.2
118.6
155.2
115.3
121.5
156.2
116.1
121.0
157.2
116.4
120.6
154.8
116.7
122.0
154.4
117.5
120.8
159.8
118.5
120.1
159.5
116.7
121.6
160.7
117.8
123.9
160.4
119.2
123.5
32
13
331.2
331PT
133-6 9
34
2.1
3.1
1.7
.1
1.4
5.0
122.3
1953
24.2
115.9
126.7
124.7
123.7
129.3
128.0
120.2
130.9
126.8
125.0
127 8
127.6
119.6
128 1
128.2
124.6
129.2
128.9
122.5
129.7
127.6
124.0
128.1
128.2
123.3
128.0
126.6
124.5
127.1
127.7
120.0
126.4
127.2
124.0
127.5
126.7
122.4
128.4
127.8
124.5
126 5
125.5
121.9
127 6
128/7
123.5
122.1
119.8
116.0
124.9
128.0
125.4
122.6
120.2
118.3
125.4
127.8
127.0
124 4
122.5
120.3
126 7
126.3
126.4
119.8
113.2
112.6
127.7
126.2
127.3
120.1
114.4
109.7
127.0
126.7
127.4
116.9
108.6
101.8
126.9
126.5
60 Manufacturing
61 Primary processing
62 Advanced processing
63
64
65
66
79
80
Durable goods
Lumber and products
Furniture and fixtures
Stone, clay, and glass
products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products...
Industrial machinery and
equipment
Computer and office
equipment
Electrical machinery
Transportation equipment. ..
Motor vehicles and parts .
Autos and light trucks .
Aerospace and
miscellaneous
transportation
equipment
Instruments
Miscellaneous
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and product.
Printing and publishing
Chemicals and products . . . .
Petroleum products
Rubber and plastic products .
Leather and products
67
68
69
70
71
72
73
74
75
76
77
78
35
8.0
179.4
187.3
189.0
191.8
192.3
198.4
200.6
202.5
205.8
209.0
207.0
208.1
210.8
210.7
357
36
37
371
371PT
1.8
7.3
9.5
4.9
2.6
423.7
253.4
117.1
139.9
27.8
481.3
274.9
123.8
149.0
139.2
502.2
276.5
124.1
148.6
134.1
526.3
277.7
121.3
141.9
132.0
552.6
278.5
121.5
140.4
128.2
589.6
278.2
122.3
140.0
128.8
605.4
280.8
123.3
140.8
130.9
623.9
282.0
125.2
144.1
132.7
641.4
285.5
114.2
121.1
110.1
657.0
289.4
108.2
107.6
86.9
673.6
290.8
130.3
154.2
142.0
700.2
297.1
127.6
149.9
136.5
722.7
300.9
128.0
149.6
140.4
744.7
304.2
127.2
149.9
138.5
372-6,9
38
39
4.6
5.4
1.3
94.7
110.3
119.1
99.0
111.8
118.5
100.0
112.0
119.9
100.9
111.5
119.7
102.6
112.5
119.9
104.5
112.8
120.0
105.7
113.0
120.1
106.3
113.8
119.1
106.3
112.4
118.5
107.1
112.6
118.5
106.9
113.0
117.7
105.7
113.9
117.0
106.7
114.6
116.1
105.0
114.2
114.5
20
21
22
23
26
27
28
29
30
31
40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1.4
3.5
.3
111.3
108.0
110.9
112.2
102.8
114.4
105.2
114.9
109.8
128.2
81.9
112.6
109.1
112 1
114.1
101.8
116.1
107.1
116 2
109 1
130.9
78.7
112.7
109.0
106 4
113.1
102.3
116.2
107.0
117.3
110.6
130.9
78.8
113.1
110.5
110.1
115.0
102.5
115.7
106.4
117.0
111.2
131.0
77.3
112.8
109.9
112.7
113.2
101.1
115.9
106.4
116.7
110.5
131.1
78.3
112.4
109.7
105.3
112.6
101.6
115.0
105.4
116.6
113.0
131.4
77.9
113.0
110.3
109.8
113.3
101.0
115.2
105.5
117.7
112.8
133.2
76.3
113.0
110.7
111.5
114.5
100.4
115.0
105.6
116.9
111.5
133.1
75.8
112.0
109.2
104.7
112.0
100.5
114.9
105.5
116.2
111.6
132.4
74.5
112.1
109.0
106.0
113.2
100.1
115.9
105.4
115.7
113.4
132.7
75.3
111.3
107.9
107.0
111.8
99.2
115.3
104.9
114.3
114.1
132.2
74.0
110.6
107.7
104.2
111.2
98.3
113.9
104.9
113.2
110.6
132.8
73.4
111.0
108.9
101.9
112.6
97.3
115.5
104.8
113.8
107.5
133.4
73.0
111.2
109.9
99.7
111.7
96.1
113.9
104.6
114.1
111.7
134.1
73.1
" 10
12
13
14
6.9
.5
1.0
4.8
.6
105.8
110.0
107.8
103.1
120.3
1049
115.9
100.3
102.6
122.0
106.4
107.5
116.1
102.2
121.9
107.6
110.9
112.4
103.6
127.5
107.5
123.2
104.3
104.6
123.1
105.8
109.3
103.4
104.0
120.0
105.7
106.9
107.2
102.9
123.3
105.4
108.5
106.0
102.4
124.4
104.7
108.0
110.4
100.4
125.6
104.6
105.7
112.8
100.0
125.4
103.7
109.0
109.7
99.2
124.3
102.7
106.4
115.8
97.2
120.5
101.9
110.5
110.8
96.8
120.3
100.7
110.2
108.6
95.4
120.8
491,493PT
492.493PT
7.7
6.2
1.6
112.8
113.2
111.2
113.6
114.1
111.0
113.1
113.8
109.9
109.8
111.4
102.2
109.0
1112
99J
114.0
115.7
106.3
112.8
115.2
102.0
115.2
118.9
98.3
118.7
121.0
108.4
118.3
119.8
111.7
120.2
121.2
115.7
120.5
122.6
110.8
116.1
117.5
109.3
112.2
114.0
103.9
80.5
129.1
132.4
132.8
133.4
133.4
133.8
134.6
134.9
134.5
135.1
134.6
134.3
135.2
135.1
83.6
126.3
129.4
129.7
129.6
129.4
129.5
130.2
130.6
128.8
128.6
130.6
129.9
130.6
130.4
5.7
395.9
443.9
451.5
459.3
467.6
473.4
482.7
490.7
502.9
511.8
522.5
539.3
551.5
563.0
81.3
118.0
120.2
120.4
120.3
120.1
120.2
120.9
121.1
119.2
118.9
120.6
119.8
120.3
120.0
79.8
116.6
118.7
118.9
118.8
118.5
118.7
119.3
119.5
117.5
117.2
119.0
118.1
118.6
118.3
92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
96 Stone and earth minerals
97 Utilities
98 Electric
99 Gas
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding
computer and office
equipment
102 Computers, communications
equipment, and
semiconductors
103 Manufacturing excluding
computers and
semiconductors
104 Manufacturing excluding
computers, communications
equipment, and
semiconductors
Gross value (billions of 1992 dollar , annual rates)
Major Markets
105 Products, total
2,001.9 2,406.1 2,456.3 2,455.0 2,462.9 2,456.2 2,474.5 2,489.8 2,498.5 2,470.3 2,454.6 2,525.1 2,501.8 2,514.9 2,513.0
106 Final
1.552.1 1,886.0 1,931.2
1.927.4 1,935.8
1,928.6
1,948.1 1,961.6
1,966.1
1,938.2 1,915.6
1,985.9 1.967.7 1,979.3 1,978.2
107 Consumer goods
108 Equipment
109 Intermediate
1,049.6
502.5
449.9
1,212.7
717.3
528.2
1,220.1
718.2
528.0
1,210.8
720.6
528.3
1,218.7
732.5
527.6
1,225.2
744.2
533.6
1,201.8 1,185.0
740.1
734.3
532.6
538.4
1,227.4 1,209.8
762.5
762.4
540.3
535.2
1,198.0
687.3
521.1
1,218.8
714.8
526.0
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1998. The recent annual revision is described in an article in the
January 1999 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
1,224.8
739.9
529.7
1,216.0
767.8
536.9
1,220.7
761.6
536.1
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Standard industrial classification.
A46
2.14
Domestic Nonfinancial Statistics • February 1999
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1998
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.'
Sept.'
1,618
1,180
1,544
1,164
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
356
387
411
459
433
372
391
389
408
438
380
1,477
1,161
1,474
1,134
1,545
1,225
1,616
1,263
1,585
1,239
1,546
1,237
1,538
1,224
1,620
1,269
1,704
1,300
1,621
1,261
1,569
1,250
316
820
584
235
340
834
570
264
320
888
593
295
353
907
609
298
346
911
616
295
309
911
619
292
314
917
627
290
351
930
639
291
404
937
643
294
360
940
645
295
319
948
649
299
1,405
1,123
1,407
1,122
1,314
1,007
1,461
1,142
1,486
1,130
1,509
1,198
1,458
1,112
1,484
1,166
1,549
1,225
1,515
1,178
1,464
1,185
283
361
285
354
307
362
319
377
356
374
311
370
346
374
318
362
324
380
337
368
279
369
1,690
1,198
492
1,694
1,289
405
970
659
311
1,445
1,154
291
375
667
374
757
326
803
287
853
281
878
281
836
285
892
286
892
287
919
287
877'
284'
837
285
844
289
851
296
133.9
158.7
140.0
166.4
145.9
175.8
148.0
178.6
156.0
181.6
152.0
178.9
148.0
176.7
153.2
183.5
148.0
175.9
149.9'
179.8'
150.0
182.8
150.5
179.5
150.0
184.9
18 Number sold
3,812
4,087
4,215
4,370
4,770
4,890
4,770
4,830
4,740
4,910
4,730
4,690
4,790
Price of units sold (thousands
of dollars)1
19 Median
20 Average
113.1
139.1
118.2
145.5
124.1
154.2
126.1
156.8
124.5
153.9
127.1
157.2
128.2
159.7
130.5
162.3
134.0
169.2
133.8
168.4
132.9
165.9
131.2
162.9
130.9
162.1
1
2
3
4
5
6
7
8
9
10
11
12
13
Permits authorized
One-family
Two-family or more
Started
One-family
Two-family or more
Under construction at end of period
One-family
Two-family or more
Completed
One-family
Two-family or more
Mobile homes shipped
1,333
997
335
1,354
1,076
278
776
554
222
1,319
1,073
247
341
1,426
1,070
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period1
Price of units sold (thousands
of dollars)2
16 Median
17 Average
1,442
1,056
1,569
1,136
1,635
1,176
1,553
1,142
1,517
1,145
1,543
1,152
1,517
1.128
1,581
1,173
EXISTING UNITS (one-family)
Value of new construction (millions of dollars)3
CONSTRUCTION
21 Total put in place
538,158
581,813
618,051
633,714
638,180
639,913
645,974
635,396
650,341
657,710
661,927
663,883
665,811
22 Private
23
Residential
24 Nonresidential
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other.. .
408,012
231,191
176,821
32,535
68,245
27,084
48,957
444,743
255,570
189,173
32,563
75,722
30,637
50,252
470,969
265,536
205,433
31,417
83,727
37,382
52,906
487,807
278,956
208,851
31,055
85,807
37,694
54,295
490,896
282,496
208,400
30,936
84,152
39,151
54,161
494,333
286,045
208,288
31,474
83,981
37,812
55,021
500,078
289,666
210,412
31,457
86,064
39,168
53,723
496,495
288,003
208,492
29,642
86,321
37,678
54,851
503,592
291,907
211,685
30,067
88,480
37,334
55,804
510,650
299,196
211,454
28,588
87,999
37,436
57,431
515,221
300,221
215,000
32,398
85,902
38,343
58,357
514,430
304,512
209,918
29,702
83.255
38,041
58,920
518,475
306,818
211,657
28,343
86,279
38,041
58,994
29 Public
30
Military
31
Highway
32
Conservation and development
130,147
2,983
38,126
6,371
82,667
137,070
2,639
41,326
5,926
87,179
147,082
2,625
45.246
5,628
93,583
145,907
2,474
46,067
5,281
92,085
147,284
2,916
45,561
6,305
92,502
145,580
2,818
45,559
5.488
91,715
145,896
2,850
46,175
4,985
91,886
138,901
2,471
42,030
5,146
89,254
146,749
2,659
44,541
5,989
93,560
147,060
3,309
43,776
5,445
94,530
146,706
3,138
44.261
5,382
93,925
149,453
2,435
45,270
5,970
95,778
147,336
2,548
45,252
4,934
94,602
33
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
Census Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are
private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are
published by the National Association of Realtors. All back and current figures are available
from the originating agency. Permit authorizations are those reported to the Census Bureau
from 19,000 jurisdictions beginning in 1994.
Selected Measures
2.15
A47
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 3 months earlier
(annual rate)
Change from 12
months earlier
Item
Index
level,
Nov.
1998'
1998
1998'
1997
1997
Nov.
Change from I month earlier
1998
Nov.
Dec.
Mar.
June
Sept.
July
Aug.
Sept.
Oct.
Nov.
.2
.0
.2
.2
164.0
-1.0
.2
.2
.3
.0
-1.3
.2
-.1
.3
.6
.9
.2
.0
.2
.1
.0
.2
-.1
.3
162.1
100.5
174.8
143.8
192.4
.3
4
-.1
.5
.4
2
.4
1.2
.0
.0
-1.2
.1
.1
130.8
134.7
72.9
149.0
138.1
CONSUMER PRICES 2
(1982-84=100)
1 All items
1.8
1.5
1.5
.2
2.5
1.5
.2
2 Food .
1.7
- 4
2.2
.4
29
23
-9 2
2.3
.7
3 1
1.5
-7 7
2.4
.6
33
1.3
-21.1
2.4
.8
3.0
3.0
-1.9
2.6
1.1
3.2
2.0
-8.7
2.3
1.1
3.0
.2
0
.2
.1
.2
-.7
-1.1
-3.5
.6
-.3
1
-11.0
2.2
-.1
-1.2
1.5
-5.7
-.3
-2.0
-3.0
-1.8
-27.0
3.9
.0
.3
.9
-1.1
1.4
-1.2
.3
1.8
-10.2
3.3
.9
.2
.4
.3
.1
-.4
-.4
-2.4'
.0
-.2'
-.1
.5
-2.7
-1.5
-.6
.0
-4.4
-.9
-1.3
-1.2
-1.9
-1.5
.0'
-.1'
-.3'
.0'
-.2
-.3
-.2
-.3
-.2
-.2
122.2
132.4
-6.2
57
1.7
-7.2
-32 6
-15.7
4.1
5.4
-8.2
-14.3
-53.5
-13.6
-.7
-14.6
-5.6
-22.6
-15.2
-18.3
-3.5'
6.0'
-1.4'
-1.0'
-7.9'
-2.3r
-1.9
-1.7
-1.3
4.0
1.9
-2.7
-1.9
.0
-2.5
102.4
65.4
130.0
4 All items less food and energy
5
Commodities
PRODUCER PRICES
(1982=100)
10
Other consumer goods
Intermediate materials
12 Excluding foods and feeds
Crude materials
14 Foods..
16 Other
.
. . . . . .
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
A48
Domestic Nonfinancial Statistics • February 1999
2.16
GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1995
1997
1996
Q3
Q4
Ql
Q2
Q3 r
8,170.8
8,254.5
8,384.2
8,440.6
8,537.9
GROSS DOMESTIC PRODUCT
1 Total
7,269.6
7,661.6
4,953.9
611.0
1,473.6
2.869.2
5,215.7
5,493.7
673.0
1,600.6
3.220.1
5,540.3
681.2
1.611.3
3.247.9
5,593.2
682.2
1,613.2
3.297.8
5,676.5
1,539.2
3.033.2
705.1
1,633.1
3.338.2
5,773.7
720.1
1,655.2
3,398.4
5,846.7
718.9
1,670.0
3,457.7
1,043.2
1,012.5
1,131.9
1,099.8
787.9
216.9
571.0
311.8
1,256.0
1,188.6
860.7
240.2
620.5
327.9
1,265.7
1.211.1
882.3
243.8
638.5
328.8
1,292.0
1,220.1
882.8
246.4
636.4
337.4
1,366.6
1,271.1
921.3
245.0
676.3
349.8
1,345.0
1,305.8
941.9
245.4
696.6
363.8
1,364.4
1,307.5
931.6
246.2
685.4
375.8
30.7
40.1
32.1
24.5
67.4
63.1
54.6
47.3
71.9
66.9
95.5
90.5
39.2
31.5
57.0
49.3
-83.9
819.4
903.3
-91.2
873.8
965.0
-93.4
965.4
1,058.8
-94.7
981.7
1,076.4
1,087.4
-123.7
973.3
1,097.1
-159.3
949.6
1,108.9
-165.5
936.2
1,101.7
17 Government consumption expenditures and gross investment
18
Federal
19
State and local
1,356.4
509.1
847.3
1,405.2
518.4
1,454.6
520.2
934.4
1,459.5
521.0
938.5
1,468.1
520.1
947.9
1,464.9
511.6
953.3
1,481.2
520.7
960.4
1,492.3
519.4
972.9
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
7,238.9
2,644.9
1,143.4
1,501.5
3,974.9
619.1
7.629.5
2,780.3
1,228.8
1,551.6
4,179.5
669.7
8,043.5
2.911.2
1,310.1
1,601.0
4,414.1
718.3
8,116.2
2,944.3
1,337.1
1,607.2
4,448.0
723.9
8,182.6
2.948.7
1,334.3
1,614.4
4,501.2
732.7
8,288.7
3,005.8
1,376.9
1.628.8
4,538.4
744.6
8,401.3
3,025.3
1,380.8
1,644.4
4,619.5
756.6
8,480.9
3,029.0
1,373.0
1,655.9
4,678.5
773.5
30.7
32.4
-1.7
32.1
20.8
11.4
67.4
33.6
33.8
54.6
19.9
34.7
71.9
34.0
37.9
95.5
49.9
45.6
39.2
4.5
34.7
57.0
19.5
37.5
6,761.7
6,994.8
7,269.8
7,311.2
7,364.6
7,464.7
7,498.6
7,566.5
5,923.7
6,256.0
6,646.5
6,704.8
6,767.9
6,875.0
6,945.5
7,032.3
4.208.9
3,441.9
4.409.0
3.640.4
640.9
2,999.5
4,715.5
3,919.3
666.7
3,252.6
4,798.0
622.7
2,819.2
767.0
4,687.2
3.893.6
664.2
3,229.4
365.3
401.6
3817
387.0
793.7
400.7
796.2
402.7
671.4
3,322.2
804.4
407.4
4.882.8
4.065.9
679.5
392.9
393.6
397.0
414.1
402.8
4,945.2
4,121.6
685.8
3,435.8
823.5
417.9
405.7
5.011.6
4,181.1
692.7
3,488.4
830.5
422.1
408.4
488.1
465.6
22.4
527.7
488.8
38.9
551.2
515.8
35.5
556.5
520.2
36.3
558.0
526.6
564.2
536.8
27.4
571.7
544.0
27.7
576.1
550.9
25.2
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15 Exports
16 Imports
26 Change in business inventories
27
Durable goods
28
Nondurable goods
inn
201.3
526.4
284.8
643.3
MEMO
29 Total GDP in chained 1992 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' income1
39
Business and professional1
40
Farm'
768.6
3,993.6
31.4
3,386.4
816.8
41 Rental income of persons2
133.7
150.2
158.2
158.6
158.8
158.3
161.0
163.6
42 Corporate profits'
43
Profits before tax3
44
Inventory valuation adjustment
45
Capital consumption adjustment
672.4
635.6
-22.6
59.4
750.4
680.2
-1.2
71.4
817.9
734.4
6.9
76.6
840.9
758.9
4.8
77.2
820.8
736.4
4.3
80.1
829.2
719.1
25.3
84.9
820.6
723.5
7.8
89.4
827.0
720.5
11.7
94.8
46 Net interest
420.6
418.6
432.0
433.3
432.4
440.5
447.1
454.0
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
Selected Measures
2.17
A49
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1998
Q3
04
Ql
Q2
Q3 r
PERSONAL INCOME AND SAVING
Total persona] income
6,072.1
6,425.2
6,784.0
6,820.9
6,904.9
7,003.9
7,081.9
7,160.8
Wage and salary disbursements
Commodity-producing industries
Manufacturing
Distributive industries
Service industries
Government and government enterprises
3.428.5
863.9
647.9
782.9
1,158.9
622.7
3.631.1
909.0
674.6
823.3
1,257.9
640.9
3,889.8
975.0
719.5
879.8
1,370.8
664.2
3.915.5
979.4
722.3
886.3
1,383.2
666.7
3,989.9
1,003.7
741.3
904.5
1,410.2
671.4
4,061.9
1,019.0
750.4
918.9
1,444.5
679.5
4.117.6
1,023.2
750.8
932.2
1,476.4
685.8
4,177.1
1,028.0
750.9
945.8
1,510.6
692.7
Other labor income
Proprietors' income'
Business and professional
Farm1
Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits .
401.6
488.1
465.6
22.4
133.7
192.8
704.9
1,015.9
387.0
527.7
393.6
556.5
520.2
397.0
558.0
526.6
36.3
31.4
158.6
750.5
1.114.0
158.8
261.3
753.0
1,120.5
402.8
564.2
536.8
27.4
158.3
261.6
757.0
1,139.0
405.7
571.7
544.0
27.7
161.0
262.1
763.0
1,145.8
408.4
1,068.0
392.9
551.2
515.8
35.5
158.2
260.3
747.3
1,110.4
1,152.9
507.8
538.0
565.9
568.3
572.2
581.6
585.0
589.0
293.6
306.3
326.2
328.2
333.6
340.9
345.1
349.5
6,072.1
6,425.2
6,784.0
6,820.9
6.904.9
7,003.9
7.081.9
7,160.8
488.8
38.9
150.2
248.2
719.4
LESS: Personal contributions for social insurance
EQUALS: Personal income
LESS Personal tax and nontax payments
260.4
576.1
550.9
25.2
163.6
263.0
769.2
795.0
890.5
989.0
999.0
1,025.5
1,066.8
1,092.9
1,108.4
5,277.0
5,534.7
5,795.1
5,821.8
5,879.4
5,937.1
5,988.9
6,052.4
5,097.2
5,376.2
5,674.1
5,723.3
5,781.2
5,864.0
5,963.3
6,039.8
179.8
158.5
121.0
98.5
98.2
73 0
25.6
12.6
25,690.5
17,498.4
18,640.0
26,335.7
17,893.0
18,989.0
27,136.2
18,340.9
19,349.0
27,260.4
18,445.2
19,385.0
27,398.2
18,530.5
19,478.0
27,718.8
18,771.1
19.632.0
27,783.0
19,007.8
19,719.0
27,972.1
19,156.3
19,829.0
Gross saving
1,187.4
1,274.5
1,406.3
1,427.0
1.428.0
1,482.5
1,448.5
1,474.5
Gross private saving
1,106.2
1,114.5
1,141.6
1,139.0
1,131.6
1,130.1
1,079.0
1,078.7
Personal saving
Undistributed corporate profits
Corporate inventory valuation adjustment
179.8
256.1
-22.6
158.5
262.4
-1.2
121.0
296.7
6.9
98.5
311.5
4.8
98.2
295.0
4.3
73.0
312.0
25.3
25.6
300.9
7.8
12.6
304.8
Capital consumption allowances
Corporate
Noncorporate
431.1
225.9
452.0
232.3
477.3
242.8
480.8
244.4
487.7
247.0
492.5
248.6
497.8
250.7
503.1
254.2
Gross government saving
Federal
Consumption of fixed capital
Current surplus or deficit ( - ) , national accounts
State and local
Consumption of fixed capital
Current surplus or deficit ( —), national accounts
81.2
-103.7
70.7
160.0
-39.6
70.6
-110.3
199.7
296.4
72.3
70.2
2.2
224.1
82.7
352.4
128.7
69.9
58.8
223.7
83.5
369.4
143.9
69.5
74.4
225.6
141.4
140.2
84.3
141.3
395.7
161.6
69.6
92.0
234.2
85.4
148.7
Gross investment
EQUALS: Disposable personal income
LESS. Personal outlays
EQUALS: Personal saving
MEMO
Per capita (chained 1992 dollars)
Gross domestic product
Personal consumption expenditures
Disposable personal income
Saving rate (percent)
GROSS SAVING
: Gross private domestic investment
Gross government investment
Net foreign investment
> Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
11 7
77.1
264.7
49.5
70.6
-21.1
215.2
81.1
122.6
134.1
288.0
70.0
70.3
-.3
218.0
81.4
136.6
1,160.9
1,242.3
1,350.5
1,361.9
1,360.7
1,428.4
1,362.7
1,372.5
1,043.2
218.4
-100.6
1.131.9
1,256.0
235.4
-140.9
1,265.7
237.3
-141.0
1,292.0
236.5
-167.8
1,366.6
237.4
-175.6
1,345.0
232.5
-214.8
1,364.4
239.7
-231.6
-174.4
184.8
73.2
111.7
229.7
-119.2
-67.3
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A50
3.10
International Statistics • February 1999
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
[tern credits or debits
1995
1996
Q4
1 Balance on current account
2
Merchandise trade balance
3
Merchandise exports
4
Merchandise imports
5
Military transactions, net
6
Other service transactions, net
7
Investment income, net
8
U.S. government grants
9
U.S. government pensions and other transfers
10 Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
12 Change in US. official reserve assets (increase, - )
-115,254
-173,729
575.845
-749,574
4,769
69,069
19,275
-11.170
-3.433
-20.035
-134,915
-191,337
611.983
-803,320
4,684
78,079
14,236
-15.023
-4.442
-21,112
02
-155,215
-197,954
679.325
-877,279
6,781
80,967
-5.318
-12.090
-221,598
1,945
-4,193
-1,056
-45,043
-49,839
174,284
-224,123
1.103
20,277
-4,247
-5,213
-1,069
-23.408
-6,027
-6,055
-38,094
-49,296
172,302
20,246
-1.544
-2,362
56,690
-55.698
171,469
-64,443
19,164
-2,248
164,821
-229,264
1,043
19,529
-3,377
-2.266
-2.063
-1,126
-6,088
-1,126
-227,167
1,527
-6.253
-589
-708
174
436
29
-388
-433
6.668
0
370
-1,280
7,578
-1.010
0
-350
-3,575
-4,524
0
-150
-4,221
-153
-444
0
-182
-85
-177
-1,945
0
72
2.915
-730
0
-139
-463
-128
-121,023
-29,577
-24.791
-41.167
-27,488
-118,946
-27,539
-47,907
-8.030
-35,470
-44,816
3,074
-6,596
21,258
6,686
2,667
13
Gold
-9,742
0
14
15
16
Special drawing rights (SDRs)
Reserve position in International Monetary Fund
Foreign currencies
-808
-2.466
-6,468
17 Change in U.S. private assets abroad (increase, —)
18
Bank-reported claims'
19 Nonbank-reported claims
2(1 U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
-317,122
-75,108
-45,286
-100.074
-96.654
-374.761
-91,555
-86,333
-115,801
-81,072
-477 666
-147,439
-120,403
-87,981
-121.843
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 liabilities4
26
Other U.S. liabilities reported by US banks'
27
Other foreign official assets5
109,768
68,977
3,735
-217
34.008
3.265
127,344
115,671
5,008
-362
5.704
1.323
15,817
-7,270
4,334
-2,521
21.928
-654
-1,167
12,439
633
-26,979
-24.578
86
-244
-3,250
1,007
28 Change in foreign private assets in United States (increase, +) . . .
29
U.S. bank-reported liabilities'
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
net
Foreign direct
direct investments
investments in
in United
United States,
States net
net
33
Foreign
355.6S1
30,176
59,637
99,548
96,367
57,653
436,013
16.478
39,404
154,996
130.151
77,622
717,624
148,059
107,779
146.710
196.845
93.449
160,180
12.606
26.275
35,432
60,327
18.964
0
-22.742
0
-59,641
0
-99,724
0
-20,027
-10,018
-10,009
34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37
Before seasonal adjustment
-46,735
-99.724
-22,742
-1,031
-986
Q3 P
-61,299
-64,360
163,560
-227,920
1,101
17,504
-5,460
-2,582
-1.132
-6,370
194
-2,026
0
188
-2,078
-136
-107,409
-24,615
-14,327
-27,878
-40,589
-46,220
-28,335
11,324
11,336
2,610
-1,059
-607
-956
-10,274
-46,370
-32,811
1,906
-414
247,470
89.643
47,390
35,301
36,783
28,45.3
84,205
-50,497
32,707
-1,701
77,019
25,931
175,133
37,670
18,040
26,916
71,017
19,141
159,232
82.680
0
-52.007
3,528
-55,535
0
-3,146
0
1.618
1,474
144
0
-3.511
-10,760
-6.973
-34,321
6,217
-9,36.3
-20,318
254
-422
9,380
832
16,970
-21,24.3
-12,607
-2,444
-257
22,938
27,065
7,249
MEMO
Changes in official assets
38 U.S. oflicial reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, -(-)
-9.742
6.668
-1,010
-730
-4,524
109,985
127,706
18.338
22,425
-26.735
40 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34. and 38^tO.
2. Data are on an international accounts basis. The data differ from the Census basis data,
shown in tabk 3.11, for reasons of coverage and timing. Military exports are excluded from
merchandise trade data and are included tn line 5.
3. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
10,822
12,383
-968
-1,945
-2,026
-9,852
-45,956
-12,013
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. US. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics A51
U.S. FOREIGN TRADE1
3.11
Millions of dollars; monthly data seasonally adjusted
1998
Item
1995
1996
1997
Apr.'
May'
June'
July'
Aug.'
Sept.
Oct.1"
1 Goods and services, balance
2
Merchandise
-101,857
-173,560
71.703
-111.040
-191,170
80,130
-113,684
-198,975
85,291
-14,018
-21,335
7,317
-15,641
-22,578
6,937
-14,213
-20,530
6,317
-14,917
-21,029
6,112
-16,674
-22,735
6,061
-14,369
-20,801
6,432
-14,194
-20,629
6,435
4 Goods and services, exports
5
Merchandise
794,610
575,871
218,739
848,833
612,069
236,764
931,370
678,150
253.220
77,707
55,335
22.372
76,650
54,719
21.931
76,225
54,767
21,458
74,994
53,825
21,169
74,988
53,862
21,126
77,467
56,005
21.462
79,618
57,921
21,697
7 Goods and services, imports
-896,467
-749,431
-147,036
-959,873
-803,239
-156,634
-1,045,054
-877,125
-167,929
-91,725
-76,670
-15,055
-92,291
-77,297
-14,994
-90,438
-75,297
-15,141
-89,911
-74,854
-15.057
-91,662
-76,597
-15,065
-91,836
-76,806
-15,030
-93,812
-78,550
-15.262
9
Services
1. Dala show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
US. RESERVE ASSETS
Millions of dollars, end of period
1998
Asset
1 Total
2 Gold stock, including Exchange
Stabilization Fund'
3 Special drawing rights 2 ' 1
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
1995
1996
1997
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.p
85,832
75,090
69,954
70,328
70,723
71,161
72,264
73,544
75,66
79,183
77.683
11,050
11,037
11,049
10,312
11,050
10,027
11,048
10,188
11,049
10,296
11,047
10,001
11,046
9,586
11,046
9,891
11,044
10,106
11,041
10,379
11,041
10,393
14.649
49.096
15,435
38,294
18,071
30,809
18,218
30,874
18,957
30,421
18,945
31.168
20,780
30,852
21,161
31.446
21,644
32,882
22,278
35,485
22,049
34,200
SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.
3.13
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS'
Millions of dollars, end of period
1998
Asset
1995
1996
1997
May
Apr.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold1
July
Aug.
Sept.
Oct.
Nov.P
386
167
457
162
156
200
161
161
347
154
211
522,170
11,702
638,049
11.197
620,885
10,763
622,220
10,651
622,557
10,641
616,569
10,617
613,893
10,586
588,337
10,510
578,403
10,457
588,768
10,403
608.060
10,355
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 US. Treasury
securities, in each case measured at face (not market) value.
June
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.
A52
3.15
International Statistics • February 1999
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1998
Hem
1 Total1
2
3
4
5
6
7
8
9
10
11
12
. .
By type
Liabilities reported by banks in the United States'
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than US Treasury securities
By area
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
1997
1996
May
June
July
Aug.
Sept.
778,538
788,310
786,184
781,069
775,137
760,789r
735,071'
747,708
113,098
198,921
135,326
148,301
144,929
138,418
142,658
137,652
144,099
134,324
142,140
131,089
144,045'
130,398
131,501'
128,146
135,287
128,598
379,497
5,968
61,140
423,456
5,994
65,461
430,804
6,149
68,010
431,702
6,189
67,983
428,216
6,229
68.201
428,685
6,269
66,954
411,765
6,311
68,270
401,461
6,350
67,613'
410,462
5,997
67,364
257,915
21,295
80,623
385,484
7,379
5,926
263,103
18,749
97,616
382,423
10,118
6,527
268,848
20,254
101,191
382,027
11,281
4.707
269,178
20,122
101.792
379,188
10,574
5,328
264,657
19,396
100,849
378,113
11,555
6,497
270,195
19,963
100,826
367,687
11,904
4,560
266,600'
16.387
98,405
363,902
11.501
3,992
258,234
16,170
79,788'
365,631'
11,721
3,525
270,632
17,216
78,045
368,346
11,112
2,355
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Millions of dollars, end of period
Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1989 benchmark survey of foreign portfolio investment in the United
States,
Reported by Banks in the United States1
1997
Item
2 Banks' claims
4
Other claims
5 Claims of banks' domestic customers2
1994
89,258
60,711
19,661
41,050
10,878
I. Data on claims exclude foreign currencies held by U.S. monetary authorities.
Oct.p
758,624
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonrescrve agencies. Includes current value of
2ero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;
3.16
Apr.
1995
109,713
74,016
22,696
51,320
6,145
1998
1996
103,383
66,018
22,467
43,551
10,978
Dec.
Mar.
June
Sept.
117,524
83,038
28,661
54,377
8,191
100,342
81,977
27,934
54,043
7,926
90,119
68,095
27,213
40,882
7,354
93,815
67,794
27,293
40,501
8,453
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.
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Bank-Reported Data
A53
July
Aug.
Sept.
Oct.p
Reported by Banks in the United States1
Millions of dollars, end of period
Apr. May
BY HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
1,099,549
1,162,148
1.283,686
1,270,626
1,260,273
1,288,032
1,306,488
l,341,667r
1,349,102
1,370,232
753,461
24,448
192,558
140,165
396,290
758,998
27,034
186,910
143,510
401,544
883,639
32,104
198,470
168,013
485,052
861,727
32,107
185,948
204,294
439,378
852,052
31,201
185,160
192,167
443,524
884,734
36,246
186,686
183,451
478,351
896,972
30,928
188,056
192,536
485,452
928,182'
33,038
183,906'
190,192'
521,046'
915,818
33,547
170,888
168,490
542,893
909,157
32,050
158.776
152,559
565,772
346,088
197,355
403,150
236,874
400,047
193,239
408,899
174,256
408,221
173,873
403,298
169,225
409,516
164,274
413,485
162,235
433,284
160,598
461,075
168,764
52,200
96,533
72,011
94,265
93,641
113,167
111,398
123,245
107,797
126,551
112,598
121,475
117,433
127,809
123,378
127,872
142,169
130,517
151,260
141,051
11,039
10,347
21
4,656
5,670
13,972
13,355
29
5,784
7,542
11,690
11,486
16
5,466
6,004
14,894
14,478
365
6,646
7,467
14,186
13,559
229
7,029
6,301
14,103
13,441
226
6,784
6.431
14,314
12,188
19
6,354
5,815
15,188
13,684
59
6,252
7,373
15,215
13,862
408
5,763
7,691
12,639
11,473
97
5,418
5,958
692
350
617
352
204
69
416
344
627
359
662
338
2,126
349
1,504
490
1,353
435
1,166
509
341
1
265
0
133
2
72
0
268
0
322
2
1,777
0
1,012
818
100
657
0
275,928
83,447
2,098
30,717
50,632
312,019
79,406
1,511
33,336
44,559
283,627
101,910
2,314
41,420
58,176
283,347
105,731
2,532
38,865
64,334
280,310
104,358
2,052
36,060
66,246
278,423
102,256
2,582
36,068
63,606
273,229
102,040
3,560
36,358
62,122
274,443'
101,533'
3,456
35,928'
62,149'
259,647
85,260
3,607
28,326
53,327
263,885
85,291
3,325
26,742
55,224
192,481
168,534
232,613
198,921
181,717
148,301
177,616
138,418
175,952
137,652
176,167
134,324
171,189
131,089
172,910
130,398
174,387
128,146
178,594
128,598
23,603
344
33,266
426
33,211
205
38,745
453
38,010
290
41,180
663
39,792
308
41,759
753
45,684
557
49,691
305
29 Banks10
30 Banks' own liabilities
31
Unaffiliated foreign banks ..
32
Demand deposits
33
Time deposits2
34
Other3
35
Own foreign offices
691,412
567,834
171,544
11,758
103,471
56,315
396,290
694,835
562,898
161,354
13,692
89,765
57,897
401,544
816,064
642,324
157,272
17,527
83,433
56,312
485,052
776,269
596,509
157,131
17,152
72,703
67,276
439,378
782,828
601,967
158,443
16,111
74,018
68,314
443,524
809,251
633,032
154,681
20,772
75,231
58,678
478,351
825,245
643,982
158,530
15,097
78,252
65,181
485,452
853,337'
673,202'
152,156'
16,063
74,201'
61,892
521,046'
875,323
686,684
143,791
15,799
67,724
60,268
542,893
896,752
688,401
122,629
15,799
55,828
51,002
565,772
36
37
38
123,578
15,872
131,937
23,106
173,740
31,915
179,760
26,650
180,861
26,920
176,219
25,337
181,263
22,929
180,135
20,696
188,639
21,563
208,351
27,556
13,035
94,671
17,027
91,804
35,333
106,492
37,942
115,168
38,186
115,755
38,122
112,760
39,203
119,131
40,180
119,259
44,807
122,269
48,230
132,565
121,170
91,833
10,571
53,714
27,548
141,322
103,339
11,802
58,025
33,512
172,305
127,919
12,247
68,151
47,521
196,116
145,009
12,058
67,734
65,217
182,949
132,168
12,809
68,053
51,306
186,255
136,005
12,666
68,603
54,736
193,700
138,762
12,252
67,092
59,418
198,699'
139,763'
13,460
67,525'
58,778
198,917
130,012
13,733
69,075
47,204
196,956
123,992
12,829
70,788
40,375
29,337
12,599
37,983
14,495
44,386
12,954
51,107
8,844
50,781
8,942
50,250
9,226
54,938
9,907
58,936
10,651
68,905
10,454
72,964
12,101
15,221
1.517
21,453
2,035
24,964
6,468
34,639
7,624
31,333
10,506
32,974
8,050
36,661
8,370
40,427
7,858
50,860
7,591
52,682
8,181
9,103
14,573
16,083
22,503
23,440
21,229
22,847
25,867
27,391
29,905
2 Banks' own liabilities
3
Demand deposits
4
Time deposits2
5
Other3
6
Own foreign offices
7 Banks' custodial liabilities
8
U.S. Treasury bills and certificates'
9
Other negotiable and readily transferable
instruments
10 Other
1
inolnitnanli
11 Nonmonetary international and regional organizations
12 Banks' own liabilities
13
Demand deposits
14
Time deposits"
15
Other3
16
17
18
19
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments
Other
20 Official institutions*
21
Banks' own liabilities
22
Demand deposits . .
23
Time deposits
...
24
Other3
25
26
27
28
39
Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
Other
Banks' custodial liabilities
US. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits2
44
Other3
45
46
47
Banks' custodial liabilities
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
inclmmanlr
Other
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign centra] banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
A54
3.17
International Statistics • February 1999
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1998
1995
50 Total, all foreigners
51 Foreign countries . . .
52 Europe
53
Austria
54
Belgium and Luxembourg
55
Denmark
56
Finland
57
France
58
Germany
59
Greece
60
Italy
61
Netherlands
62
Norway
63
Portugal
64
Russia
65
Spain
66
Sweden
67
Switzerland
68
Turkey
69
United Kingdom
70
Yugoslavia11
71
Other Europe and other former U.S.S.R.12
72 Canada
1,099,549
1996
1,162,148
1997
1,383,686
Apr.
May
1,270,626
1,260,273
Sept.
July
1.288,032
1,306,488
l,341,667r l,349,102 r
1,370,232
1,326,479' U33,887 r
1,357,593
1,088,510
1,148,176
1,271,996
1,255,732
1,246,087
1,273,929
1,292,174
362,819
3,537
24,792
2,921
2,831
39,218
420,438
2,717
41,007
1,514
2,246
406,391
2,957
38,530
2,588
1,768
46,607
23,737
1,552
48,468
28,365
25,245
431,783
2,602
33,845
2,013
1,211
47,140
23,730
2,784
11,114
7,097
1,179
2,823
6,398
12,079
2,198
44,861
5,077
196,859
322
28,451
457,537'
2,671
35,086
2,128
1,350
48,328
28,751
2,941
10,625
9,239
1,469
2,424
2,718
14,283
1,769
39,362
239
25,762
405,348
3,012
35,518
1,443
1,365
47,869
26,452
2,610
11,127
7.265
774
2,160
3,952
15,520
2,197
33,893
4,467
178,185
270
27,269
402,103
2,268
35,454
1,989
1,438
46,162
25,470
2,429
11,509
6,845
607
2,334
4,654
11,649
3,148
39,071
4,894
26,389
376,590
5,128
24,084
2,565
1,958
35,078
24,660
1,835
10,946
11,110
1,288
3,562
7,623
17,707
1,623
44,538
6,738
153,420
206
22,521
24,035
2,014
10,868
13,745
1,394
2,761
7,948
10,011
3,246
43,625
4,124
139,183
177
11,378
7,385
317
2,262
7,968
18,989
1,628
39,172
4,054
181.904
24,895
2,383
10,600
8,051
514
2,279
5,381
18,071
1,785
32,341
4,340
172,829
246
176,703
234
Oct.p
451,277
2,843
39,911
1,813
1,193
47,349
22,013
2,901
6,981
7,306
1,149
2,376
3,733
26,578
3,282
47,306
4,061
219,197'
242
30,637
450,824'
3,157'
34,028'
1,578
1,181
50,505'
25,811'
2,544
9,183'
8,066
688
2,292
3,085
20,493'
3,285
48,414'
4,264
204,915'
253
27,082'
4,317
202,486
290
27,706
30,468
38,920
28,341
27,398
26,021
28,864
29,526
27,844
28,701'
31,273
73 Latin America and Caribbean
74
Argentina
75
Bahamas
76
Bermuda
77
Brazil
78
British West Indies
79
Chile
80
Colombia
81
Cuba
82
Ecuador
83
Guatemala
84
Jamaica
85
Mexico
86 Netherlands Antilles
87
Panama
88 Peru
89 Uruguay
90 Venezuela
91
Other
440,213
12,235
94,991
4,897
23,797
239,083
467,529
13,877
88,895
5,527
27,701
251,465
2,915
3,256
21
1,767
1,282
628
552,896
550,714
16,938
114,222
7,142
38,463
277,929
4,230
4,383
59
1,783
568,228
18,502
116,435
7,769
35,345
295,321
4,356
4,805
564,388
21,010
115,309
7,216
34,292
290,342
4,987
4,023
557,071
21,655
113,543
7,332
27,824
291,470
4,726
4,102
63
63
62
1,608
1,273
1,237
974
1,836
11,808
7,531
37,682
7,447
4,106
964
1,991
21,600
9,984
1,616
1,363
522
38,044
6,861
3,723
925
1,982
20,442
10,154
1,772
1,478
449
37,623
17,569
4,211
878
2,097
20,696
10,284
519
38,554
8,922
3,596
984
2,097
19,492
9,937
550
38,087
8,340
3,675
900
2,091
560,069'
18,384
122,806
7,920
18,453'
298,707'
5,725
4,475'
62
1,540
1,241
541
35,681
8,588
574,665
17,707
127,404
7,247
17,423
6,099
4,099
834
1,890
17,363
8.670
536,365
20,199
112,217
6,911
31,037
276,389
4,072
3,652
66
2,078
1,494
450
33,972
5,085
4,241
893
2,382
21,601
9,626
9,744
2,276'
19,180'
9,821'
92 Asia . .
China
93
Mainland
94
Taiwan
Hong Kong
95
India
96
Indonesia
97
Israel
98
99 Japan
100 Korea (South)
101 Philippines
102 Thailand
103 Middle Eastern oil-exporting countries13
104 Other
240,595
249,083
269,299
251,423
244,779
254,412
247,952
266,480'
275,751'
284,184
33,750
11,714
20,197
3,373
2,708
4,041
109,193
5,749
3,092
12,279
15,582
18,917
30,438
15,995
18,789
3,930
2,298
6,051
117,316
5,949
3,378
10,912
16,285
17,742
18,252
11,760
17,722
4,567
3,554
6,281
143,401
13,060
3,250
6,501
14,959
25.992
20,122
13,776
19,762
4,813
4,266
7,348
113,283
13,711
2,870
7,928
17,095
26,449
20,209
12,648
18,106
4,882
3,197
6,251
111,623
14,010
2,802
8,876
15,296
26,879
21,558
11,619
19,720
4,821
3,848
6,095
118,669
13,269
3,418
7,148
13,829
30,418
18,919
11,333
15,826
4,678
3,938
5,969
123,167
12,713
2,609
6,780
13,902
28,118
18,506
11,290
18,349
6,437
5,651
5,296
131,376
12,493'
2,777
7,869
14,532
31,904
18,523
12,080
16,627
5,144
5,470
5,984
142,767'
12,971'
2,712
6,664
16,627'
30,182'
15,802
12,693
16,507
5,336
5,670
4,764
156,214
12,597
2,523
7,134
14,665
30,279
105 Africa
106 Egypt
107 Morocco
108
South Africa
109 Zaire
110 Oil-exporting countries14
111
Oh
7,641
2.136
104
739
10
1,797
2,855
8,116
2,012
112
458
10
2,626
2,898
10,347
1.663
138
2.158
10
3,060
3,318
11,160
1,236
131
2,556
3
4,332
2,902
10,965
1,460
115
2,465
5
4,079
2,841
10,735
1,523
84
2,642
5
3,552
2,929
10,788
1,319
74
2,446
7
3,893
3,049
10,562
1,459
76
2,428
35
3,684
2,880
11,098
1,616
88
2,658
6
3,727
3.003
9,662
1,288
78
2,358
7
3.205
2,726
112 Other
113 Australia . .
114 Other . . . .
6,774
5,647
1,127
7,938
6,479
1,459
7,206
6,304
902
6,464
5,450
1,014
8,260
7,416
844
9,587
8,510
1,077
7,737
6,490
1,247
6,985
5,931
1,054
7,444
6,427
1,017
6,532
5,371
1,161
11,039
9,300
893
846
13,972
12,099
1,339
534
11,690
10,517
424
749
14,894
13,431
762
701
14,186
12,509
830
847
14,103
12,548
694
861
14,314
11,220
750
2,344
15,188
12,825
721
1,642
15,215'
12,782'
803'
12,639
10,300
1,056
1,283
115 Nonmonetary international and regional organizations
116 International15
117 Latin American regional
118
Other regional17
2,826
3,659
8
1,314
1,276
481
24,560
4,673
4,264
31,240
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.
17,766
112,510
6,657
36,777
273,565
4,330
4,212
57
1,737
1,353
438
20,125
3,826
843
1,630
310,232
5,592
4,888
50
1,680
1,249
576
38,060
6,199
3,838
800
2,223
19,675
9,822
15. Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
16. Principally the Inter-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in "Other Europe."
Bank-Reported Data A55
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1998
Area or country
Apr.
May
July
Aug.
Sept.
Oct.p
1 Total, all foreigners
532,444
599,925
708,272
700,035
703,532
727,942
74036
764,878'
757374
735,772
2 Foreign countries
530413
597,321
705,809
696,742
701,140
725,027
735,826
760,488'
752,052
730335
132,150
565
7,624
403
1,055
15,033
9,263
469
5,370
5,346
665
888
660
2,166
2,080
7,474
803
67,784
147
4,355
165,769
1,662
6,727
492
971
15,246
8,472
568
6,457
7,117
808
418
1,669
3,211
1,739
19,798
1,109
85,234
115
3,956
199,880
1,354
6,641
980
1,233
16,239
12,676
402
6,230
6,141
555
777
1,248
2,942
1,854
28,846
1,558
103,143
52
7,009
207,154
1,827
5,482
968
1,018
17,383
16,931
442
6,938
5,851
662
935
1,133
7,458
2,975
25,069
2,324
101,772
59
7,927
208,567
2,130
6,115
1,286
931
16,276
15,301
428
6,533
3,980
736
1,496
1,117
6,218
3,181
29,317
2,386
102,889
19
8,228
223,277
1,259
7,782
1.198
1,146
15,474
15,751
364
6,435
5,763
680
888
1,057
5,560
3,069
34,970
2,414
109,755
53
9,659
229,928
1,892
8,459
933
1,032
14,421
11,327
450
6,345
5,642
553
1,156
1,345
6,424
4,553
49,359
2,010
104,397
79
9,551
227,688'
1,856
6,779
1,374
1,161
17,314
12,029
530
8,617
4,321
1,110
725
1,209
5,225
4,456
49,258
1,990
99,174'
53
10,507
234,856
1,849
8,200
1,059
1,073
17,142
15,210
373
6,510
4,803
629
975
920
7,980
4,319
55,798
1,900
97,436
53
8,627
224,739
2,373
9,230
1,768
1,149
16,307
15,121
415
7,168
5,225
651
885
883
6,051
4,592
43,337
1,848
98,741
53
8,942
3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Russia
16
Spain
17
Sweden
18
Switzerland
19
Turkey
20
United Kingdom
21
Yugoslavia2
22
Other Europe and other former U.S.S.R.3
23 Canada
20,874
26,436
27,176
25,785
24,961
32,703
36,007
41,402
41,165
37,331
24 Latin America and Caribbean
25
Argentina
26
Bahamas
27
Bermuda
28
Brazil
29
British West Indies
30
Chile
31
Colombia
32
Cuba
33
Ecuador
34
Guatemala
35
Jamaica
36
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
40
Uruguay
41
Venezuela
42
Other
256,944
6,439
58,818
5,741
13,297
124,037
4,864
4,550
0
825
457
323
18,024
9,229
3,008
1,829
466
1,661
3,376
274,153
7,400
71,871
4,129
17,259
105,510
5,136
6,247
0
1,031
620
345
18,425
25,209
2,786
2,720
589
1,702
3,174
343,820
8,924
89,379
8,782
21,696
145,471
7,913
6,945
0
1,311
886
424
19,518
17,838
4,364
3,491
629
2,129
4,120
354,302
8,540
82,711
9,462
26,033
159,649
8,444
6,772
0
1,522
955
373
20,913
14,073
4,422
3,644
773
2,194
3,822
361,082
8,207
78,083
8,890
25,354
168,124
8,482
7,208
0
1,498
955
385
21,215
17,352
4,393
3,792
807
2,381
3,956
365,814
8,518
77,595
9,452
24,552
176,825
8,497
7,102
0
1,430
932
320
20,371
14,294
4,233
3,965
959
2,495
4,274
359,277
8,421
78,770
10,622
24,187
166,203
8,434
6,914
0
1,649
911
335
20,062
16,278
4,308
4,009
1,154
2,436
4,584
379,383
8,724
77,875
9,629
23,530
192,334
8,307
6,905
0
1,518
950
318
20,078
12,939
4,157
4,061
1,055
2,649
4,354
362,312
8,777
75,974
10,610
19,073
182,733
8,345
6,813
0
1,458
1,166
305
20,669
10,294
4,226
3,829
955
2,638
4,447
354,779
9,087
75,374
6,585
17,644
183,108
8,549
6,764
0
1.444
904
330
22,031
7,323
4,011
3,706
958
2,688
4.273
43 Asia
China
44
Mainland
45
Taiwan
46
Hong Kong
47
India
48
Indonesia
49
Israel
50
Japan
51
Korea (South)
52
Philippines
53
Thailand
54
Middle Eastern oil-exporting countries4
55
Other
115,336
122,478
125,063
99,183
96,813
94,804
100,196
102,382'
104,597
104,685
1,023
1,713
12,821
1,846
1,696
739
61,468
13,975
1,318
2,612
9,639
6,486
1,401
1,894
12,802
1,946
1,762
633
59,967
18,901
1,697
2,679
10,424
8,372
1,579
921
13,990
2,200
2,634
768
59,540
18,162
1,689
2,259
10,790
10,531
2,921
939
10,162
1,807
2,210
874
44,970
10,852
1,561
1,971
11,028
2,934
723
12,884
1,913
2,099
893
42,071
11,936
1,614
1,906
9,338
8,502
1,989
835
12,871
1,972
2,098
954
43,010
11,001
1,541
1,889
8,448
8,196
1,679
595
11,045
1,822
2,010
1,116
45,566
12,863
1,243
1,820
11,207
9,230
2,703
651'
13,821
1,878
2,031
898
44,822
11,508
1,259'
1,883
12,136
8,792
1,363
1,031
10,548
1,823
2,108
941
52,213
9,823
1,280
2,129
12,681
8,657
2,258
1,054
8,241
1,582
1,990
1,497
52,907
9,733
1,128
1,953
13,538
56 Africa
57
Egypt
58
Morocco
59
South Africa
60
Zaire
61
Oil-exporting countries5
62
Other
2,742
210
514
465
1
552
1,000
2,776
247
524
584
0
420
1,001
3,530
247
511
805
0
1.212
755
3,337
294
483
490
0
1,194
876
3,693
281
490
859
0
1,078
985
2,484
283
430
653
0
308
810
3,497
294
471
630
0
1,331
771
3,262
279
426
653
0
1,046
858
3,012
272
390
694
0
787
869
2,785
322
405
665
0
533
63 Other
64
Australia
65
Other
2,467
1,622
845
5,709
4,577
1,132
6,340
5,299
1,041
6,981
6,513
468
6,024
5,704
320
5,945
5,439
506
6,921
6,067
854
6,371
5,999
372
6,110
5,783
327
6,216
5,809
407
66 Nonmonetary international and regional organizations6.
1,931
2,604
2,463
3,293
2,392
2,915
4,410
4,390
5,322
5,237
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included all
parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other Europe."
A56
3.19
International Statistics • February 1999
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Millions of dollars, end of period
Reported by Banks in the United States1
1998
Type of claim
1995
1996
1997
Apr.
1 Total
655,211
3
Foreign public borrowers
5
Unaffiliated foreign banks
7
8
Other
All other foreigners
9 Claims of banks' domestic customers
10 Deposits
11 Negotiable and readily transferable
12
743,919
May
852,899
June
July
Aug.
740,236
35,634
446,536
101,777
23,283
78,494
156,289
764,878r
29,758'
466,019'
105,852'
24,593
81,259'
163,249
Sept.
881,218
915,425
757,374
26,377
475,449
108,426
30,426
78,000
147,122
532,444
22,518
307,427
101,595
37,771
63,824
100,904
599,925
22,216
341,574
113,682
33,826
79,856
122,453
708,272
20,660
431,685
109,224
31,042
78,182
146,703
122,767
58,519
143,994
77,657
144,627
73,110
153,276
86,408
158,051
89,602
44,161
51,207
53,967
52,171
53,512
20,087
15,130
17,550
14,697
14,937
8,410
10,388
9,624
6,604
6,068
30,717
39,661
34,046
700,035
32,465
409,955
104,622
24,324
80,298
152,993
703,532
28,986
415,175
105,501
21,282
84,219
153,870
727,942
27,780
435,201
107,525
22,843
84,682
157,436
Oct.p
735,772
28,313
463,472
108,413
26,718
81,695
135,574
Outstanding collections and other
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States
31.633
25,287
32,347
28,217'
25,512
35,786
principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
3.20
32,172
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Millions of dollars, end of period
Reported by Banks in the United States1
1995
Maturity, by borrower and area
Sept.p
1 Total
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
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa . ,
All other1
202,282
224,932
258,106
276,597
285,518
292,324
281,035
170,411
15,435
154,976
31,871
7,838
24,033
178,857
14,995
163,862
46,075
7,522
38,553
211,859
15,411
196,448
46,247
6,790
39,457
205,859
12,069
193,790
70,738
8,525
62,213
214,822
16,952
197,870
70,696
11,310
59,386
211,029
17,023
194,006
81,295
10,651
70.644
208,385
14,613
193,772
72,650
10,875
61,775
56,381
6,690
59,583
40,567
1,379
5,811
55,622
6,751
72,504
40,296
1,295
2,389
55,690
8,339
103,254
38,078
1,316
5,182
58,294
9,917
97,277
33,972
2,211
4,188
69,245
9,304
101,013
28,748
2,228
4,284
73,787
8,766
99,294
23,569
1,116
4,497
69,003
8,953
99,650
22,330
1,762
6,687
4,358
3,505
15,717
5,323
1,583
1,385
4,995
2,751
27,681
7,941
1,421
1,286
6,965
2,645
24,943
9,392
1,361
941
13,240
2,512
42,069
10,198
1,236
1,483
15,118
2,752
39,337
10,731
1,254
1,504
15,606
2,573
47,881
12,569
1,259
1,407
15,377
2,982
39,112
12,105
1,170
1,904
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Maturity is time remaining until maturity.
3. Includes nonmonetary international and regional organizations.
Bank-Reported Data A57
3.21
CLAIMS ON FOREIGN COUNTRIES
Held by U.S. and Foreign Offices of U.S. Banks1
Billions of dollars, end of period
Area or country
Sept.
1 Total
2 G-IO countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy . . I
7
Netherlands
8
Sweden
9
Switzerland
10 United Kingdom
1 1 Canada
12
Japan
13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
IS Norway
19 Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
25 OPEC :
26
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries
499.5
551.9
586.2
645.3
647.5
678.8
711.0
725.9
739.2
746.7
191.2
7.2
19.1
24.7
11.8
3.6
2.7
5.1
85.8
10.0
21.1
206.0
13.6
19.4
27.3
11.5
3.7
2.7
6.7
82.4
10.3
28.5
220.0
11.3
17.4
33.9
15.2
5.9
3.0
6.3
90.5
14.8
21.7
228.3
11.7
16.6
29.8
16.0
4.0
2.6
5.3
104.7
14.0
23.7
231.4
14.1
19.7
32.1
14.4
4.5
3.4
6.0
99.2
16.3
21.7
250.0
9.4
17.9
34.1
20.2
6.4
247.7
11.4
20.2
34.7
19.3
7.2
4.1
4.8
108.3
15.1
22.6
242.8
11.0
15.4
28.6
15.5
6.2
3.3
7.2
113.4
13.7
28.6
249.1
11.2
15.6
25.5
19.7
7.3
4.8
5.6
120.1
13.5
25.8
275.0
13.1
20.5
28.7
19.5
8.3
3.1
6.9
134.8
16.5
23.7
45.7
1.1
1.3
.9
4.5
2.0
1.2
13.6
1.6
3.2
1.0
15.4
50.2
.9
2.6
.8
5.7
3.2
1.3
11.6
1.9
4.7
1.2
16.4
62.1
1.0
1.7
.6
6.1
3.0
1.4
16.1
2.8
4.8
1.7
22.8
65.7
I.I
1.5
.8
.9
13.2
2.7
4.7
2.0
24.0
66.4
1.9
1.7
.7
6.3
5.3
1.0
14.4
2.8
6.3
1.9
24.4
71.7
1.5
2.8
1.4
6.1
4.7
1.1
15.4
3.4
5.5
1.9
27.8
73.8
1.7
3.7
1.9
6.2
4.6
1.4
13.9
4.4
6.1
1.9
64.5
1.5
2.4
1.3
5.1
3.6
.9
11.7
4.5
8.2
2.2
28.1
23.1
74.3
1.7
2.0
1.5
6.1
4.0
.7
16.5
4.9
9.9
3.7
23.2
72.0
1.9
2.1
1.4
5.8
3.4
1.3
15.1
6.5
9.6
5.0
20.0
24.1
5
22.1
.7
2.7
4.8
13.3
6
19.2
.9
2.3
5.4
10.2
4
19.7
1 I
2.4
5.2
10.7
.4
22.3
.9
22.9
1.2
26.0
1.3
2.5
6.7
25.3
1.2
3.2
5.1
15.5
.3
3.7
3.8
15.3
31 Non-OPEC developing countries
32
33
34
35
36
37
38
Ullin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
39
40
41
42
43
44
45
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
46
Thailand
47
Other Asia
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa'
52 Eastern Europe
53
Russia4
54
Other
55 Offshore banking centers
56
Bahamas
57
Bermuda
58
Cayman Islands and other British West Indies
59
Netherlands Antilles
60
Panama5
61
Lebanon
62
Hong Kong. China
63
Singapore
64
Other*
65 Miscellaneous and unallocated7
6.7
8.0
112.6
11.2
8.4
6.1
2.6
18.4
.5
2.7
12.9
13.7
6.8
2.9
17.3
1.1
1.8
9.4
4.4
.5
19.1
4.4
4.1
4.9
4.5
1 I
1.9
49
132
7
3.6
5.4
110.6
15.7
26.8
1.1
14.4
12
25.7
1.3
3.3
5.5
14.3
1.4
137.0
138.7
147.4
17.1
26.1
8.0
3.4
16.4
1.8
3.6
18.4
28.6
8.7
3.4
17.4
2.0
4.1
19.3
32.4
9.0
3.3
17.7
2.1
4.0
20.2
29.9
9.1
3.6
179
2.2
4.4
4.3
9.7
4.9
1.0
16.2
5.6
5.7
6.2
4.5
3.2
9.0
4.9
.7
15.6
5.1
5.7
5.4
4.3
4.2
11.7
5.0
7
16.2
4.5
5.0
5.5
4.2
11.3
4.9
.9
14.5
4.7
5.4
4.9
3.7
1.0
.6
.0
1.5
.6
.0
2.1
5.6
12.5
1.2
128.1
15.0
17.8
6.6
3.1
16.3
1.3
3.0
14.3
20.7
7.0
2.6
10.4
3.8
.5
21.9
5.5
5.4
4.8
4.1
2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1
2.7
10.5
4.9
14.6
6.5
6.0
6.8
4.3
10.6
5.3
.8
16.3
6.4
7.0
7.3
4.7
.4
7
.0
.9
.6
.7
.0
1.0
.7
.7
.1
.9
.9
.6
.0
.9
1.1
.7
.0
.9
.9
.7
.0
.9
2.7
.8
1.9
4.2
1.0
3.2
5.3
1.8
3.5
6.9
3 7
3.2
8.9
3.5
5.4
7.1
4.2
2.9
9.8
5.1
4.7
72.9
99.2
11.0
6.3
32.4
10.3
1.4
.1
25.0
13.1
.1
57.6
105.2
134.7
20.3
4.5
37.2
26.1
2.0
.1
27.9
16.7
.1
59.6
131.3
20.9
6.7
32.8
19.9
2.0
.1
30.8
17.9
.1
59.6
129.6
16.1
7.9
35.1
15.8
138.9
19.8
9.8
45.7
2.6
2.1
.1
27.2
12.7
.1
9.2
4.2
.4
16.2
3.1
3.3
10.2
8.4
21.4
1.6
1.3
.1
20.0
10.1
.1
66.9
I. The banking offices covered by these data include US. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
Sept.
14.2
4.0
32.0
11.7
1.7
.1
26.0
15.5
.1
50.0
4.1
16.2
1.6
3.3
14.3
22.0
6.8
3.7
17.2
1.6
3.4
.6
16.4
27.3
7.6
3.3
16.6
1.4
3.4
3.6
.1
35.2
16.7
.3
57.6
21.7
3.9
1.1
9.1
5.1
4.0
12.0
7.5
4.6
10.9
6.8
145.7
29 9
129.3
29.2
9.0
24.9
14.0
3.2
.1
33.8
15.0
.1
101.3
123.5
22.7
9.3
33.9
10.5
3.3
.1
30.0
13.5
.2
95.6
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1
4.1
2. Organization of Petroleum Exporting Countries, shown individually, other members of
OPEC (Algeria. Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar. Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992. excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A58
3.22
International Statistics • February 1999
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
Millions of dollars, end of period
1998
Type of liability, and area or country
1995
Sept.
46,448
54,798
58,667
56,501
55,891
59,618
58,040r
56,822
r
2 Payable in dollars
3 Payable in foreign currencies
38,298
16,011
33,903
12,545
38,956
15,842
39,861
18.806
38,651
17,850
39,746
16,145
41,888
17,730
42,258
15.782'
45,210
11,612
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
32,954
18.818
14.136
24,241
12,903
11,338
26,065
11,327
14,738
29,633
11,847
17.786
28,263
11,442
16,821
26,461
11,487
14,974
29,113
12,975
16,138
28,050'
13,568'
14.482'
22,322
11,988
10,334
7 Commercial liabilities
8 Trade payables
9
Advance receipts and other liabilities
21,355
10,005
11,350
22,207
11,013
11,194
28,733
12,720
16,013
29,034
11,432
17,602
28,238
11,040
17,198
29,430
10,885
18,545
30,505
10,904
19,601
29,990
10,107
19,883
34,500
14,989
19,511
Payable in dollars
Payable in foreign currencies
19,480
1,875
21,000
1.207
27,629
1,104
28,014
1,020
27,209
1,029
28,259
1,171
28,913
1,592
28,690
1,300
33,222
1,278
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
21.703
495
1,727
1,961
552
688
15,543
15,622
369
999
1.974
466
895
10.138
16,195
632
1,091
1,834
556
699
10,177
20,081
769
1,205
1,589
507
694
13,863
18,530
238
1,280
1,765
466
591
12,968
18.019
89
1,334
1,730
507
645
12,165
19,238
186
1,684
2,018
494
776
12,318
20,307'
127
1,795
2,578
472
345
13,145'
15,468
75
1,699
2,441
484
189
8,765
629
632
1.401
602
1,616
651
2,392
1,045
539
1,668
236
50
78
1,030
17
1
1,876
293
27
75
965
16
1
1,285
124
55
97
775
15
1
1,067
10
64
52
669
76
1
1,386
141
229
143
604
26
1
965
17
86
91
517
21
1
1,320
6
49
76
845
51
1
10
11
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2.034
101
0
5
1,783
59
147
57
866
12
2
27
28
29
Asia
Japan
Middle Eastern oil-exporting countries
8.403
7,314
35
5,988
5,436
27
6,423
5,869
25
6,370
5,794
72
6,248
5,668
39
6,239
5,725
23
5,394
5,085
32
5,024
4,767
23
4,315
3,869
0
30
31
Africa
^
Oil-exporting countries"
135
123
150
122
38
0
29
0
29
0
33
0
60
0
33
0
29
0
33
34
35
36
37
38
39
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
All other1
340
6,773
241
728
604
722
327
2,444
7,700
331
481
767
500
413
3,568
9,767
479
680
1.002
766
624
4,303
676
9.524
639
679
1,043
551
480
4,158
8,683
736
708
845
288
429
3,818
9,343
703
782
945
452
400
3,829
10,228
666
764
1,274
439
375
4,086
9.951
565
840
1,068
443
407
4,041
15.327
557
613
1,222
502
355
9,119
40
Canada
1,037
1,040
1,090
1,068
1,136
1,150
1,175
1.347
1,206
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,857
19
345
161
23
574
276
1,740
1
205
98
56
416
221
2.574
63
297
196
14
665
328
2,562
43
479
200
14
633
318
2,500
33
397
225
26
594
304
2,224
38
180
233
23
562
322
2,176
16
203
220
12
565
261
2.051
27
174
249
5
520
219
2,290
14
209
246
27
557
196
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries1. .
10,741
4,555
1,576
10,421
3,315
1,912
13,422
4,614
2,168
13,915
4,465
2.495
13,875
4,430
2.420
14,628
4,553
2,984
14,966
4,500
3.111
14,672
4,372
3,138
13,655
4,039
3,194
51
52
Africa
Oil-exporting countries2
428
256
619
254
1,040
532
1,037
479
941
423
929
504
874
408
833
376
921
354
928
1,103
1,156
1,086
1,136
1,101
53
Other
3
519
I. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data A59
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1997
Type of claim, and area or country
Sept.
57,888
52,509
63,642
68,102
68.266
70,760
71,004r
74,165
53.805
4,083
48,711
3,798
58,630
5,012
62,126
5.976
62.082
6.184
64,144
6,616
62,173
7,904
65,359
5,645'
68,329
5,836
B\ 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
33,897
18,507
18,026
481
15.390
14,306
27,398
15,133
14,654
479
12,265
10,976
1,289
35,268
21,404
20,631
773
13,864
12.069
1.795
40,547
22.150
20,499
1.651
18.397
15.381
3.016
40.717
24.308
22.817
1.491
16,409
13,152
3,257
42.059
24,125
22.566
1,559
17.934
14.621
3,313
38,908
23,139
21,290
1.849
15.769
11.576
4,193
40.301'
20,863'
19.155'
1.708
19.438'
16.981'
2.457'
32.341
14,762
13.084
1,678
17,579
14,904
2.675
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
23,991
21,158
2,833
25,111
22,998
2,113
28,374
25,751
2,623
27.555
24.801
2.754
27,549
24,858
2,691
28,701
25.110
3,591
31,169
27,536
3,633
30.703
26.888
3.815
41,824
37,741
4.083
14
15
Payable in dollars
Payable in foreign currencies
21,473
2,518
23,081
2,030
25,930
2,444
26.246
1,309
26,113
1,436
26,957
1,744
29,307
1,862
29,223
1,480
40.341
1,483
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
7,936
86
800
540
429
523
4,649
7.609
193
803
436
517
498
4,303
9.282
185
694
276
493
474
6.119
13.076
119
760
324
567
570
9,837
12.904
203
680
281
519
447
9.814
15.862
360
1,112
352
764
448
11,254
16,948
406
1,015
427
677
434
12,286
14.187'
378
902
393
911
401
9.289'
14.091
518
796
290
975
403
9.639
2 Payable in dollars
3 Payable in foreign currencies
23
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 Eastern oil-exporting countries
34
Africa
3?
36
37
38
39
40
41
42
43
44
Oil-exporting countries
3,581
2,851
3.445
4.917
6,422
4.279
3.313
4.688
3.020
19,536
2,424
27
520
15,228
723
35
14,500
1.965
81
830
10,393
554
32
19.577
1,452
140
1,468
15.182
457
31
19.742
1.894
157
1.404
15.176
517
22
18,725
2,064
188
1,617
13,553
497
19,176
2.442
190
1,501
12,957
508
15
15.543
2.459
108
1,313
10.311
537
36
18.207
1.316
66
1.408
13.551
967
47
11.967
1.306
48
1,394
7.349
1,089
57
1.871
953
141
1,579
871
3
2,221
1,035
22
2.068
831
12
1.934
766
20
2.015
999
15
2.133
823
2.174
791
9
2.376
886
12
373
0
276
5
174
14
182
14
179
15
174
16
319
15
325
16
155
15
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
732
553
All other3
9,540
213
1,881
1,027
311
557
2,556
9,824
231
1,830
1,070
452
520
2,656
10.443
226
1,644
1.337
562
642
2.946
9.863
364
1.514
1.364
582
418
2.626
9,603
327
1,377
1,229
613
389
2,836
10,486
331
1.642
1.395
573
381
2.904
12.120
328
1.796
1.614
597
554
3,660
12.854
232
1.939
1.670
534
476
4.828
23,473
522
2 273
1.82S
610
420
14,376
1,988
1,951
2,165
2,381
2,464
2.649
2,660
2.882
2,779
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
4,117
9
234
612
83
1,243
348
4,364
30
272
898
79
993
285
5,276
35
275
1,303
190
1.128
357
5.067
40
159
1.216
127
1,102
310
5,241
29
197
1,136
98
1.140
451
5,028
22
128
1,101
98
1,219
418
5,750
27
244
1.162
109
1,392
576
5.481
13
238
1,128
88
1.302
441
6,212
12
483
1,183
110
1.462
585
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries'
6,982
2,655
708
7,312
1,870
974
8,376
2,003
971
8,348
2 065
1,078
8,460
2,079
1,014
8,576
2,048
987
8,71.3
1,976
1,107
7,638
1.713
987
7,623
2,012
1,127
55
56
Africa
Oil-exporting countries
454
67
654
87
746
166
718
100
618
81
764
207
680
119
613
122
57
Other'
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
1,178
1,198
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonelary international and regional organizations.
657
I 16
A60
3.24
International Statistics • February 1999
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
Transaction, and area or country
1996
1997
Jan.—
Oct.
July
May
Apr.
Sept.
U.S. corporate securities
STOCKS
1 Foreign purchases
590,714
578,203
2 Foreign sales
1,330,700
1,288,760
134,177
130,628
129,528
121,355
146,147
142,591
152,833
150,308
141,566
137,418
147,891
145,577
142,839
-10,473
2,738
-10,430
2,735
2.182
85
1,281
876
-307
700
-195
-11,766
148
-678
519
-246
347
69
139,722
3 Net purchases, or sales ( - )
12,511
69,597
41,940
3,549
8,173
3,556
2,525
12,585
69,754
42,305
3,570
8,193
3,581
2,739
5,367
-2,402
1,104
1,415
2,715
4,478
2,226
5,816
-1,600
918
-372
-85
-57
62,688
6,641
9,059
3,831
7,848
22,478
-1,406
5,203
383
2,072
4,787
472
342
65,505
6,650
10,427
6,178
7,007
19,284
-3,644
-5,997
-529
-12,701
-2,370
567
-896
5,511
-260
1,453
161
974
595
55
-3,689
346
1,563
555
128
-344
10,670
650
1,834
564
2,234
2,968
-506
-1,333
-234
-611
-208
275
-68
7,227
1,734
1,020
830
1,490
695
-1,600
1,798
286
-3,949
-540
204
-385
6,983
199
1,503
1,265
1,092
1,154
-443
-614
-134
-2,905
-306
-14
-134
-25
-214
1,844
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
18
1,097,958
1,028,361
1,843
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
-365
regional organizations
5,459
988
1.326
163
-277
1,740
-276
610
-157
-4,112
214
159
160
-23
1,009
-1,970
636
-530
2,059
-177
1,823
597
-217
23
-43
2
BONDS
19 Foreign purchases
393,953
268,487
610,116
475,958
763,395
621,578
76,452
52,225
65,495
52,584
74,100
53,167
73,772
62.213
67,529'
58,678
100,186
92.663
110,814
105,455
5,359
20 Foreign sales
125,466
134,158
141,817
24,227
12,911
20,933
11,559
8,851r
7,523
21 Net purchases, or sales (—)
125,295
133,595
141,268
24,097
12,853
20,834
11,636
8,813r
7,473
5,348
77,570
4,460
4,439
2,107
1,170
60,509
4,486
17,737
1,679
23,762
14,173
624
-563
71,631
3,300
2,742
3,576
187
54,134
6,264
34,733
2,155
16,996
9,357
1,005
811
104,770
3,325
3,937
2,648
4,641
79,103
5,335
20,577
1,687
7,776
4,951
131
992
19,024
33
1,727
523
772
14,346
363
2,256
69
2,078
2,904
45
262
5,555
-17
-133
532
794
4,585
628
6,703
109
-106
460
-31
-5
12,117
667
302
344
404
8.696
607
6,371
162
1,266
527
82
229
9,411
451
812
5,813'
233
139
32
100
3,924'
439
1.592
-188
1,709
-10
-17
-535
12,323
184
268
275
1,003
9,760
443
-2,927
-58
-1,847
-713
-61
-400
14,180
701
-135
704
-50
12,182
22 Foreign countries
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
regional organizations
234
5,411
640
2,029
171
-588
-511
-48
21
58
292
-11,135
2
1,185
1,624
55
769
50
Foreign securities
37 Stocks, net purchases, or sales ( - )
38
Foreign purchases
39
Foreign sales
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-59,268
450,365
509,633
-51,369
1,114,035
1,165,404
-40,942
756,015
796,957
-48,171
1,451,704
1,499,875
12,422
800,330
787,908
-13,438
1,220,537
1,233,975
-137
80,736
80,873
-12,158
118,296
130,454
-3,393
80,941
84,334
-1,882
110,403
112,285
2,535
88,508
85,973
-12.355
151,477
163,832
-3,516
82,130
85,646
3,065
118,890
115,825
5,552
74,358
68,806
1,013'
139,341
138,328'
6,107
89,460
83,353
3,325
152,762
149,437
90,373
82,289
15,215
100,217
85,002
43 Net purchases, or sales ( - ) , of stocks and bonds
-110,637
-89,113
-1,016
-12,295
-5,275
-9,820
-451
6,565'
9,432
23,299
44 Foreign countries
-109,766
-88,921
-853
-12331
-5,443
-9,794
-380
6,582'
9,433
23,392
-57,139
-7,685
-11,507
-27,831
-5,887
-1,517
-4,087
-29,874
-3,085
-25,258
-25,123
-10,001
-3,293
-2,288
5,388
2,929
-8,211
216
2,603
-1,360
185
-1,457
-475
-6,108
-3,520
1,265
-302
-469
-2,035
-1,335
-1,092
-779
-681
-79
-123
-7,240
214
-2,548
516
-38
-32
-704
2,328
2,195
-4,864
l,206r
2,631
-1,205
4,227
1,741
-122
-155
6,008
10,336
887
4,373
6,699
6,134
4
36
168
-26
-71
45
46
47
48
49
50
51
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
52 Nonmonetary international and
regional organizations
-871
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).
-64
-316
-269
294
-17
-1,177
1,213
3,550
2,239
-163
2
-1
1,093
-93
2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions/Interest and Exchange Rates A61
3.25
Foreign Transactions1
MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars; net purchases, or sales (—) during period
1998
1997
Area or country
Jan.—
Oct.
May
Apr.
June
July
Aug.
Sept.
Oct.p
-2,323
1 Total estimated
232,241
184,171
13,440
6,078
21,267
1,674
-3,578
-15,776
-5,282
2 Foreign countries
234,083
183,688
11,994
6,769
21,116
1,978
-3,631
-15,776
-5,273
-2,985
118,781
1,429
17,980
-582
2,242
328
65,658
31,726
2,331
144,921
3,427
22 AT I
1,746
-465
6,028
98,253
13,461
-811
10,700
1,147
25
-3,302
319
4,534
7,041
936
-3,592
6.530
-165
-829
130
-202
-483
5,785
2,294
1,457
788
176
-143
341
184
44
-2,720
2,906
-223
715
-513
-1,181
731
335
-973
-1,426
3,742
-66
-5,903
215
82
-265
239
-827
-5,769
422
-569
-2,804
667
-1,799
-3,081
-152
-680
8,019
-5,778
-2,088
-2,783
113
855
-579
-330
363
2,244
-5,449
-663
-9,999
-606
1,132
1,543
193
2,811
-13,141
-1,931
-1,188
20,785
-69
8,439
12,415
89,735
41,366
1,083
1,368
-2,554
655
-549
-2,660
39,567
20,360
1,524
1,041
-1,962
-544
15,108
-16,526
9,401
1,987
634
-3,187
-7,981
14
-632
-7,363
7,966
6,301
-18
-1,185
20,033
-339
-335
20,707
1,455
1,582
13
-950
2,578
693
3,513
-1,628
-1,153
-2,442
145
-241
949
450
2,305
-1,806
1,327
774
-23
588
-5,940
-1,308
3,914
-8,546
-3,856
299
62
-1,150
-1,233
6
2,982
-4,221
-207
128
81
-468
-491
-35
-1,288
832
7,756
1,233
87
850
-1,842
-1,390
-779
483
621
170
1,446
529
203
-691
-715
-4
151
136
-304
-226
0
53
-135
192
0
-10
-9
-288
-5
662
645
0
234,083
85,807
148,276
183,688
43,959
139,729
11,994
-12,994
24,988
6,769
1,162
5,607
21,116
898
20,218
1,978
-3,486
5,464
-3,631
469
-4,100
-15,776
-16,920
1,144
-5,273
-10,304
5,031
-2,985
9,001
-11,986
10,232
1
7.636
-12
-14,345
2
-380
0
951
0
-1,388
0
-2,578
0
-4,160
1
-5,837
-276
0
3
4
5
6
7
8
9
10
11
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
20 Nonmonetary international and regional organizations
21 International
22
Latin American regional
MEMO
23 Foreign countries
24
Official institutions
25
Other foreign
Oil-exporting countries
26 Middle East 2
27 Africa3
1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
3.26
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS1
Percent per year, averages of daily figures
Rate on Dec. 31, 1998
Rate on Dec. 31, 1998
Country
Country
Month
effective
Austria ..
Belgium
Canada ..
Denmark .
France2 ..
2.5
2.0
5.25
3.5
3.0
Apr. 1996
Dec. 1998
Nov. 1998
Dec. 1998
Dec. 1998
1. Rates shown are mainly those at which the central bank either discounts or makes
advances against eligible commercial paper or government securities for commercial banks or
brokers. For countries with more than one rate applicable to such discounts or advances, the
rate shown is the one at which it is understood that the central bank transacts the largest
proportion of its credit operations.
3.27
Percent
Month
effective
2.5
3.5
.5
2.5
1.0
Apr. 1996
Dec. 1998
Sept. 1995
Apr. 1996
Sept. 1996
Germany . . .
Italy
Japan
Netherlands
Switzerland
2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.
FOREIGN SHORT-TERM INTEREST RATES 1
Percent per year, averages of daily figures
1998
Type or country
2 United Kingdom
3 Canada
6
7
8
9
10
Netherlands
France
Italy
Belgium
Japan
1996
5 38
5.99
4.49
3.21
1 92
2.91
3.81
8.79
3.19
.58
1997
5 61
6.81
3.59
3.24
1 58
3.25
3.35
6.86
3.40
.58
1998
5 45
7.31
5.17
3.47
143
3.42
3.45
4.87
3.52
.62
1. Rates are for three-month interbank loans, with the following exceptions: Cana<
finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
5.57
7.61
5.10
3.49
1.81
3.51
3.47
4.99
3.62
.57
5.57
7.67
5.10
3.46
1.98
3.46
3.44
4.75
3.59
.67
5.56
7.61
5.35
3.42
1.68
3.43
3.44
4.78
3.48
.69
5.39
7.35
5.66
3.40
1.43
3.33
3.43
4.86
3.42
.45
5.17
7.11
5.43
3.50
1.20
3.28
3.45
4.40
3.41
.49
5.21
6.84
5.42
3.56
1.44
3.48
3.49
3.82
3.47
.52
5.13
6.38
5.24
3.28
1.40
3.26
3.24
3.23
3.23
.55
A62
3.28
International Statistics • February 1999
FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR1
Currency units per dollar except as noted
Item
1996
1997
1998
July
Aug.
Sept.
Oct.
Nov.
Dec'
Exchange Rates
COUNTRY/CURRENCY UNIT
1
2
3
4
5
6
7
8
9
10
11
Australia/dollar2
Austria/schilling
Belgium/franc
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
12
13
14
15
16
17
18
19
20
21
22
Hong Kong/dollar
India/rupee.
Ireland/pound
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder,
New Zealand/dolla?
Norway/krone
Portugal/escudo
23
24
25
26
27
28
29
30
31
32
33
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
Venezuela/bolivar
78.28
10.589
30.97
1.0051
1.3638
8.3389
5.8003
4.5948
5.1158
1.5049
240.82
74.37
12.206
35.81
1.0779
1.3849
8.3193
6.6092
5.1956
5.8393
1.7348
273.28
62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
5.3473
5.8995
1.7597
295.70
61.80
12.650
37.07
1.1614
1.4869
8.3100
6.8499
5.4653
6.0280
1.7976
299.35
58.88
12.574
36.85
1.1717
1.5346
8.3100
6.8067
5.4340
5.9912
1.7869
301.21
58.89
11.955
35.05
1.1805
1.5218
8.3055
6.4717
5.1734
5.6969
1.6990
292.47
61.79
11.524
33.81
1.1889
1.5452
8.2778
6.2294
4.9845
5.4925
1.6381
281.64
63.49
11.840
34.71
1.1932
1.5404
8.2778
6.3960
5.1163
5.6422
1.6827
282.64
61.82
11.746
34.44
1.2052
1.5433
8.2780
6.3531
5.0769
5.5981
1.6698
280.43
7.7345
35.51
159.95
1,542.76
108.78
2.5154
7.600
1.6863
68.77
6.4594
154.28
7.7431
36.36
151.63
1,703.81
121.06
2.8173
7.918
1.9525
66.25
7.0857
175.44
7.7467
41.36
142.48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25
7.7483
42.61
139.88
1,772.42
140.79
4.1591
8.899
2.0267
51.85
7.6246
183.93
7.7494
42.84
140.37
1,763.01
144.68
4.2036
9.371
2.0148
50.11
7.7248
182.99
7.7480
42.58
147.24
1,678.92
134.48
3.8050
10.219
1.9169
50.44
7.5564
174.19
7.7483
42.39
152.21
1,620.96
121.05
3.8000
10.159
1.8479
52.13
7.4294
168.01
7.7432
42.43
147.77
1,664.91
120.29
3.8000
9.969
1.8969
53.40
7.4562
172.52
7.7471
42.59
148.76
1,653.23
117.07
3.8014
9.907
1.8816
52.23
7.6050
171.19
1.4100
4.3011
805.00
126.68
55.289
6.7082
1.2361
27.468
25.359
156.07
417.19
1.4857
4.6072
950.77
146.53
59.026
7.6446
1.4514
28.775
31.072
163.76
488.39
1.6722
5.5417
1,400.40
149.41
65.006
7.9522
1.4506
33.547
41.262
165.73
548.39
1.7085
6.2285
1,295.76
152.58
65.908
7.9942
1.5136
34.387
41.300
164.37
558.47
1.7571
6.3198
1,314.29
151.72
66.642
8.1282
1.4933
34.731
41.720
163.42
571.88
1.7226
6.0966
1,375.54
144.33
66.260
7.8816
1.4000
34.646
40.402
168.23
583.85
1.6378
5.7991
1,344.14
139.23
66.345
7.8395
1.3373
33.121
38.118
169.44
570.68
1.6378
5.6511
1,294.01
143.05
67.578
8.0140
1.3852
32.603
36.527
166.11
569.66
1.6515
5.9030
1,213.22
142.08
68.117
8.0716
1.3604
32.337
36.276
167.08
565.89
Indexes3
NOMINAL
34
35
36
37
G-10 (March 1973 = 100)"
Broad (January 1997=100)'
Major currencies (March 1973=100)'
Other important trading partners (January
1997=100)'
87.34
97.43
85.23
96.38
104.47
91.85
98.85
116.25
96.52
101.38
118.17
99.31
101.80
120.14
100.96
97.17
118.85
96.99
93.69
115.46
93.46
95.46
115.34
94.23
94.61
114.56
93.40
98.25
104.67
125.70
125.64
127.77
131.38
129.02
127.31
126.80
85.89
85.83
90.49
93.20
98.37
98.33
100.29'
101.41
101.82'
103.21
100.08'
99.05
97.07'
95.47'
96.63
96.22
95.83
95.48
106.57
94.55
105.60
106.09'
107.37'
108.91'
106.53'
104.31'
103.37
REAL
38 Broad (March 1973 = 100)5
39 Major currencies (March 1973 = 100)6
40 Other important trading partners (March
1973 = 100)'
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. For more information on the indexes of the foreign exchange value of the dollar, see
Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18.
4. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of the other G-10 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).
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.
A63
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
Issue
December 1998
Page
A72
Issue
Page
SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
December 31, 1997
March 31, 1998
June 30, 1998
September 30, 1998
May
August
November
February
1998
1998
1998
1999
A64
A64
A64
A64
Terms of lending at commercial banks
February 1998
May 1998
August 1998
November 1998
May
August
November
February
1998
1998
1998
1999
A66
A67
A66
A66
Assets and liabilities of U.S. branches and agencies offoreign banks
December 31, 1997
March 31, 1998
June 30, 1998
September 30, 1998
May 1998
August 1998
November 1998
February 1999
A70
A72
A72
A72
July 1998
October 1998
January 1999
A64
A64
A64
Residential lending reported under the Home Mortgage Disclosure Act
1995
1996
1997
September 1996
September 1997
September 1998
A68
A68
A68
Disposition of applications for private mortgage insurance
1996
1997
September 1997
September 1998
A76
A72
Small loans to businesses and farms
1997
September 1998
A76
Community development lending reported under the Community Reinvestment Act
1997
September 1998
A79
Pro forma balance sheet and income statements for priced service operations
March 31, 1998
June 30, 1998
September 30, 1998
A64
4.20
Special Tables • February 1999
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition, September 30, 1998
Millions of dollars except as noted
Banks with foreign offices1
Item
1 Total assets 3 ..
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
Total
Domestic
total
Banks with domestic
offices only
Domestic
Over 100
Under 100
5,209,176
4,4863*5
3,540,913
2,818,132
1,376,909
291,354
303,407
225,098
230,639
107,387
n.a.
n.a.
28,704
75,159
19,390
152,331
104,435
78,759
25,676
19,956
8,645
19,295
58,791
31,574
19,584
11,989
19,613
656
6,948
13,977
n.a.
MEMO
9 Non-interest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) . . .
11 U.S. Treasury securities .
12 U.S. government agency and corporation obligations (excludes mortgage-backed
securities)
Issued by U.S. government agencies
13
14
Issued by U.S. government-sponsored agencies
15 Securities issued by states and political subdivisions in the United States
16
General obligations
17
Revenue obligations
18
Industrial development and similar obligations
19 Mortgage-backed securities (MBS)
20
Pass-through securities
21
Guaranteed by GNMA
22
Issued by FNMA and FHLMC
23
Privately issued
24
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) .
25
Issued or guaranteed by FNMA, FHLMC or GNMA
26
Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA ..
27
All other mortgage-backed securities
28 Other debt securities
29
Other domestic debt securities
30
Foreign debt securities
31 Equity securities
32
Investments in mutual funds and other equity securities with readily determinable
fair value
33
AH other equity securities
34 Federal funds sold and securities purchased under agreements to resell
35 Total loans and lease-financing receivables, gross
36
LESS: Unearned income on loans
37 Total loans and leases (net of unearned income)
38
LESS: Allowance for loan and lease losses
39
LESS: Allocated transfer risk reserves
40 EQUALS: Total loans and leases, net
64
65
66
67
68
69
Total loans and leases, gross, by category
Loans secured by real estate
Construction and land development
Farmland
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
Loans to depository institutions
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
Credit cards and related plans
Other (includes single payment and installment)
Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
All other loans
Loans to foreign governments and official institutions
Other loans
Loans for purchasing and carrying securities
All other loans (excludes consumer loans)
Lease-financing receivables
70
71
72
73
74
75
76
77
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 Act and agreement subsidiaries, and IBFs
Intangible assets
All other assets
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
14,016
4,947
910,136
121,293
506,270
59,191
328,760
48,379
75,106
13,723
157,044
5,906
151,137
83,424
61,781
20,893
751
429,435
274,614
75,163
197,309
2,142
154,821
117,810
2,290
34,721
89,943
n.a.
n.a.
28,997
45,423
2,666
42,758
24,558
17,321
6,734
504
280,675
183,466
49,160
133,025
1,281
97,209
71,597
1,101
24,511
77,731
25,215
52,516
18,692
82,046
2,409
79,637
44,694
34,177
10,322
195
133,888
81,506
22,733
57,938
835
52,382
41,284
1,053
10,045
10,784
10,574
210
8,969
29,575
831
28,743
14,172
10,282
3,837
53
14,871
9,641
3,270
6,345
26
5.230
4,929
136
165
1,428
n.a.
n.a.
1,336
9,166
19,831
5,991
12,701
2,759
6,210
415
921
11,593
30,557
287,543
212,727
216,814
141,999
53,631
17,098
3,112,045
3,772
3,108,274
55,726
12
3,052,535
2,807,897
2,965
2,804,932
2,056,675
1,709
2,054,966
36,866
12
2,018,087
1,752,526
902
1,751,624
879,538
1,457
878,081
16,345
0
861,735
175,832
605
175,227
2,515
0
172,712
1,290,245
1,260,385
101,623
28,682
732,635
96,850
635,786
42,279
355,165
75,616
n.a.
n.a.
n.a.
46,996
699,896
n.a.
n,a
698
719,816
689,956
50,776
4,421
438,061
67,759
370,301
22,678
174,020
71,984
49,369
17,174
5,442
9,880
517,729
510,447
7,281
580
361
219
471,875
43,021
12,578
244,729
26,638
218,090
17,476
154,070
3,519
3,227
50
243
17,376
152,593
151,900
693
83
n.a.
n.a.
98,554
7,826
11,683
49,846
2,452
47,394
2,125
27,074
113
n.a.
n.a.
n.a.
19,740
29,575
n.a.
n.a.
35
534,521
200,593
333,927
494,601
n.a.
300,356
106,748
193,608
260,437
208,698
92,099
116,599
25,467
1,746
18.383
133.997
18,378
99,476
n.a.
111,849
11,021
90,405
750
89,654
17,431
72,224
100,536
6,498
8,204
30
n.a.
115,664
11,026
124,926
8,078
116,848
n.a.
n.a.
104,351
1,682
6,492
10,691
859
867
n.a.
n.a.
n.a.
n.a.
622
29,613
n.a.
n.a.
781
21,266
1,274
347
224
n.a.
13,430
36,669
1
5,580
348
50
6
n.a.
894
5.543
100,969
n.a.
n.a.
n.a.
48,019
868,675
n.a.
n.a.
1,571
n.a.
n.a.
305,980
69,156
3,914
6.249
13,672
n.a.
73,246
183,338
29,613
97,337
49,911
17,237
30,190
10,902
541,315
145,193
1,453
362
1,091
305,160
42,310
2,292
5,852
13,442
n.a.
58,922
141,126
8,174
23,721
Commercial Banks A65
4.20
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, September 30, 1998
Millions of dollars except as noted
Banks with foreign offices'
Domestic
total
Banks with domestic
offices only
78 Total liabilities, limited-life preferred stock, and equity capital..
5,209,176
1,376,909
291,354
79 Total liabilities
4,760,963
4,038,181
3,259,022
2,536,241
1,242,503
259,438
80 Total deposits . . .
81
Individuals, partnerships, and corporations
82
US. government
83
States and political subdivisions in the United States. .
84
Commercial banks in the United States
85
Other depository institutions in the United States
86
Foreign banks, governments, and official institutions. .
87
Banks
Governments and official institutions
Certified and official checks
3,482,373
3,106,524
n.a.
n.a.
63.816
n.a.
144.188
n.a.
n.a.
16.696
2,927,823
2,727,002
5.099
129.858
32,055
8.229
9.831
n.a.
n.a.
15.749
2,204,165
1,924,741
n.a
n.a.
55,992
n.a.
143,697
101,563
42,135
8,989
1,649,615
1,545,219
4,149
55.118
24.231
3,516
9,341
7,723
1,617
8,042
1,029,857
956,601
791
55.727
6.844
3.255
477
452
25
6.164
248,351
225,182
159
19,013
980
1,459
14
n.a.
n.a.
1,543
688,870
594,956
1,549
39,925
24,767
3,096
8,827
n.a.
n.a.
15,749
390,449
333,955
1,010
17,168
19,521
2,321
8,433
7,215
1,218
8.042
229,107
200,562
466
15,961
4.876
691
387
384
2
6,164
69,313
60,440
73
6,796
370
84
7
n.a.
n.a.
1,543
538,238
468,969
1,435
15,420
24,760
3,084
8,821
n.a.
346,967
298,457
955
9,240
19,521
2,320
8,431
7,215
1,216
8,042
155,266
137,887
418
4,854
4.874
682
387
384
36.006
32,625
62
1,326
365
81
4
n.a.
n.a.
1,543
1,259,166
1,211,265
3,139
37,950
4,710
1,195
908
509
399
800.751
756,039
325
39,766
1,968
2,564
90
68
22
179,037
164,742
86
12.217
610
1,375
7
289,450
25,076
n.a.
220,627
10,486
n.a.
118.122
n.a
77,163
3,328
293
102,847
224
4,381
n.a.
24.410
2,751
83
0
5,305
6
18
n.a.
2,923
134,406
31,917
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
1)2
113
114
115
116
117
118
119
120
121
122
123
124
125
126
Total transaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States.
Commercial banks in the United States
Other depository institutions in the United States. . ..
Foreign banks, governments, and official institutions.
Banks
Governments and official institutions
Certified and official checks
Demand deposits (included in total transaction accounts) .
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States. . .
Commercial banks in the United States
Other depository institutions in the United States. . ..
Foreign banks, governments, and official institutions. ..
Banks
Governments and official institutions
Certified and official checks
15,749
Total nontransaction accounts
Individuals, partnerships, and corporations
,
U.S. government
States and political subdivisions in the United States. ,
Commercial banks in the United States
,
Other depository institutions in the United States
Foreign banks, governments, and official institutions..
Banks
Governments and official institutions
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Trading liabilities
Other borrowed money
Banks' liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices. Edge Act and agreement subsidiaries, and IBFs
All other liabilities
127 Total equity capital
MEMO
3,540,913
2,238,953
2,132,046
3,550
89,932
7,288
5,133
1,004
414,337
28,487
235,172
372,726
13,768
68,222
n.a.
145,878
369,365
28,487
328.778
10.716
118,122
n.a.
448.213
4
128 Tradingg assets at large
g banks
129
U
S Treasury
T
ii (d
129
U.S.
securities
(domestic offices)
130 U.S. government agency corporation obligations
131
Securities issued by states and political subdivisions in the United States
132 Mortgage-backed securities
133 Other debt securities
134 Other trading assets
135 Trading assets in foreign banks
136 Revaluation gains on interest rate, foreign exchange rate, and other
commodity and equity contracts
137 Total individual retirement (IRA) and Keogh plan accounts
138 Total brokered deposits
139
Fully insured brokered deposits
140
Issued in denominations of less than $100,000
141
Issued in denominations of $100,000, or in denominations greater than $100,000 and
participated out by the broker in shares of $100,000 or less
142 Money market deposit accounts (MMDAs)
143 Other savings deposits (excluding MMDAs)
144 Total time deposits of less than $100,000
145 Total time deposits of $100,000 or more
146 All negotiable order of withdrawal (NOW) accounts
147 Number of banks
NOTE. Table 4.20 has been revised; it now includes data that was previously reported in
table 4.22, which has been discontinued.
The notation "n.a." indicates the lesser detail available from banks that don't have foreign
offices, the inapplicability of certain items to banks that have only domestic offices or the
absence of detail on a fully consolidated basis for banks that have foreign offices.
1. All transactions between domestic and foreign offices of a bank are reported in "net due
from" and "net due to" lines. All other lines represent transactions with parties other than the
domestic and foreign offices of each bank. Because these 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.
Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and
possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corporations wherever located; and IBFs.
305,716
t
n.a.
189,890
65,484
334,423
25,076
234,879
264,574
13,537
63.823
n.a.
118,545
281,891
115,826
11,841
2,331
1,057
13,747
10,902
10,464
0
305,083
65,484
151,531
58,447
46.198
10.206
65,468
t
189,890
35,992
732.298
366,004
748,128
392,524
147,891
163
6.164
n.a.
n.a.
115,193
11,794
2,230
980
13,444
10,842
10,435
0
101
77
303
59
30
0
65,468
79,349
34,980
25,094
4.853
16
58,882
21,829
19,566
4,186
13,300
1.638
1,537
20.241
506.104
197.449
335,987
219,625
42,966
15,381
199,501
144.199
317.568
139.482
72,442
370
26,693
24,355
94,573
33,416
32,483
2,875
5,850
n.a.
1,168
2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year,
were $100 million or more. (These banks file the FFIEC 032 or FFTEC 033 Call Report.)
"Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were
less than $100 million. (These banks file the FFIEC 034 Call Report.)
3. Because the domestic portion of allowances for loan and lease losses and allocated
transfer risk reserves are not reported for banks with foreign offices, the components of total
assets (domestic) do not sum to the actual total (domestic).
4. Components of "Trading assets at large banks" are reported only by banks with either
total assets of $ 1 billion or more or with $2 billion or more in the par/notional amount of their
off-balance-sheet derivative contracts.
A66
4.23
Special Tables III February 1999
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 2-6, 1998
A. Commercial and industrial loans made by all commercial banks1
Amount of loans (percent)
Weightedweigntedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars}
6.63
5.91
6.07
6.63
7.09
122,252
8,444
26,472
42.438
29.493
757
1,296
1,640
626
762
Bv maturity/repricing interval*1
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Other
7.84
7.89
6.85
7.84
8.54
20,304
427
2,902
7.563
3.968
11 Daily
12
Minimal risk
13
Low risk
14 Moderate risk
15 Other
6.18
5.81
5.93
6.19
6.33
16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20
Other
21 M to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
Item
Average loan
size
(thousands of
dollars)
Made under
commitment
Most
common
base pricing
rate"
maturity
Secured by
collateral
Callable
Subject to
prepayment
penalty
149
201
211
398
447
38.6
45.9
23.5
37.2
50.9
11.2
2.0
7.7
14.8
9.9
35.9
65.8
56.7
21.6
38.3
74.1
95.0
75.7
79.7
70.1
Foreign
Foreign
Foreign
Foreign
Fed funds
306
205
624
242
182
534
815
271
631
646
49.7
42.1
34.9
59.8
66.1
12.6
11.5
15.6
18.0
14.7
6.7
34 4
21.1
3.6
8.3
67.3
88.9
77.5
90.7
90.9
Prime
Prime
Prime
Prime
Prime
49,558
4,386
12,090
14,842
11.848
1,558
13,633
5,505
1,263
2.262
84
60
51
123
39
37.6
55.8
21.2
31.8
54.3
11.0
.5
4.6
17.2
5.4
46.0
88.3
73.4
14.5
49.3
62.6
96.9
60.1
63.1
44.2
Fed funds
Domestic
Fed funds
Fed funds
Fed funds
6.39
5.69
6.02
6.37
6.96
30,458
2,712
6.463
11.666
7.901
1,853
3,038
2,991
1,596
1,725
369
143
261
315
660
33.2
34.0
21.2
28.0
46.8
11.6
2.9
9.5
14.8
13.1
39.4
49.3
44.9
35.5
38.7
89.9
96.1
90.2
91.7
88.7
Foreign
Foreign
Foreign
Foreign
Foreign
6.67
6.16
5.91
6.42
7.66
18,059
704
4,451
6,529
5,032
588
254
801
584
1,112
550
585
416
530
749
31.8
37.2
23.2
29.5
3.3.7
7.4
1.2
8.1
4.9
10.8
41.0
27.4
56.2
36 1
39.1
87.9
88.9
93.9
90.3
85.0
Foreign
Other
Foreign
Foreign
Foreign
66.3
28.2
40.1
73.1
71.7
7.2
1.6
3.7
9.6
5.3
14.3
3.0
21 7
14.9
14.5
59.0
72.9
89.5
48.4
63.9
Prime
Other
Other
Prime
Other
83.1
71.0
39.9
31.5
30.7
21.0
13.1
8.0
4.7
13.5
29.3
43.6
78.3
83.8
81.4
69.1
Pnme
Prime
Foreign
Fed funds
Days
LOAN RISK S
t Ail commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
.. .
Months
26 More than 365 days
27
Minimal risk
28
Low risk
29
Moderate risk
30
Other
7.71
5.90
6.87
7.80
8.49
3.076
209
502
1,548
560
279
496
351
309
288
62
53
40
62
62
Weighted
average risk
rating5
Weightedaverage
maturity/
repricing
interval
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1.000-9,999
10.000 or more
9.13
8.12
6.95
6.16
2.711
11.270
34.124
74,148
3.2
3.2
3.0
19
165
174
73
36
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
8.58
6.09
6.10
6.34
6.67
18.944
30.650
18,821
38,472
15,365
3.2
.1.3
2.5
2.8
2.7
116
18
30
50
148
68.7
33.7
22.0
40.2
27 9
22.8
5.0
21.8
7.2
5.4
5.9
41.9
49.9
49.8
9.7
79.1
42.2
75.4
93.7
80.7
183
8,483
3,120
3,558
414
Financial Markets A67
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made. November 2-6, 1998
B. Commercial and industrial loans made by all domestic banks1
Amount of loans (percent)
Weightedaverage
Weightedaverage
effective
loan rale^
(percent*2
Amount of
loans
(millions
of dollars)
6.90
6.04
6.26
6.84
7.76
68,304
4.630
11,821
28.314
11.173
452
728
839
443
318
488
345
372
496
700
35.8
14.7
19.3
39.2
52.9
By tncitunly/repricitig interval*'
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Other
7.86
7.87
6.98
7.86
8.58
19.065
406
2,410
7,161
3.645
295
195
543
235
172
542
815
311
632
641
11 Daily
12 Minima] risk
13 Low risk
14
Moderate risk
15 Other
6.44
5.91
6.02
6.39
6.93
20,073
1,924
2,797
8,352
2,315
689
7,008
1,986
16 2 to 30 days . .
17 Minimal risk .
18
Low risk . . . .
19 Moderate risk
20
Other
. . .
6.42
5.68
6.03
6.34
7.44
16.930
1,433
4.239
7.042
3.155
21 31 |o 365 days
22
Minimal risk
23
Low risk . . .
24
Moderate risk
25
Other
6.53
6.17
6.05
6.38
7.53
26 More than 365 days .
27
Minimal risk .. .
28
Low risk
29
Moderate risk
30
Other
7.65
5.90
6.91
7.80
8.19
Item
Average loan
size
(thousands of
dollars)
Most
common
base pricing
rate4
Subject to
prepayment
penalty
Made under
commitment
13.3
3.1
14.8
H.8
10.4
12.4
50.6
21.0
7.3
10.0
76.8
91.7
86.4
78.4
80.0
Prime
Domestic
Domestic
Foreign
Prime
50.7
39.0
40.8
60.4
67.1
11.9
6.8
18.1
16.2
14.3
4.3
36.2
6.9
3.8
67.2
88.3
85.2
90.2
92.4
Prime
Prime
Prime
Prime
Prime
524
202
135
224
197
128
22.7
1.2
4.9
26.0
23.3
21.8
1.0
18.6
21.1
11.3
13.1
75.1
15.4
3.7
1.8
70.0
94.9
72.8
55.5
48.3
Domestic
Domestic
Domestic
Domestic
Fed funds
1,251
1,740
2,672
1,136
887
410
231
344
343
784
28.7
14.6
16.2
28.1
53.2
8.1
5.5
13.4
6.5
5.8
19.1
41.8
34.5
9.3
15.4
92.6
92.6
93.2
92.9
90.3
Foreign
Other
Domestic
Foreign
Foreign
8.760
652
1,902
3,925
1,457
311
2)8
368
383
418
634
549
541
545
1124
34.7
12.4
32.3
54.0
6.3
1.3
8.1
5.0
6.3
17.2
22.1
20.5
15.4
21.6
88.5
88.1
92.0
90.4
82.8
Foreign
Other
Foreign
Foreign
Foreign
2,840
209
410
1,543
421
215
496
309
308
230
62
53
37
62
63
68.0
28.2
49.0
73.3
69.9
7.2
1.6
4.5
9.4
4.0
11.0
3.0
4.2
14.9
11.0
55.6
72.9
87.1
48.3
51.9
Other
Other
Other
Prime
Other
Weighiedaverage risk
rating5
Weightedaverage
maturity/
repneing
interval6
84.1
74.5
43.2
16.2
30.7
20.6
13.1
4.1
8.1
13.8
13.5
77 9
82.2
79.7
73.4
Prime
Prime
Prime
Domestic
Days
Secured by
collateral
LOAN RISK 3
1 All commercial and industrial loans
2 Minima] risk
3
Low risk
4
Moderate
risk
. .
5
Other
764
Davs
SIZE OF LOAN
(thousands of dollars)
31 1-99
J2 100-999
33 1,000-9,999
34 10,000 or more
9.16
8.26
7.16
6.18
2,636
9,608
22,131
33.929
32
3.2
2.9
2.7
167
194
83
58
9.9
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
Prime'
Fed funds . . .
Other domestic .
Foreign
Other
Footnotes appear at end of table.
8.52
5.96
6.11
6.40
6.68
17.541
7.976
12.028
15,937
14,822
3.2
2.9
2.5
2.9
2.7
121
27
42
66
69.2
15.2
16.8
32.4
26.2
20.5
12.2
20.2
8.2
5.0
5.3
1.5
23.2
19.5
9.2
77.5
56.4
73.7
85.6
80.3
174
5,650
2,243
2.508
401
A68
4.23
Special Tables • February 1999
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 2-6, 1998
C. Commercial and industrial loans made by large domestic banks1
Weighledaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
6.72
5.81
6.06
6.66
7.53
57,300
3,656
10,010
24,217
By mutunly/repncing
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Other
7.76
8.07
6.68
7.76
8.42
11 Daily
12 Minimal risk .
13 Low risk
14 Moderate risk
15 Other
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Days
Secured by
collateral
Subject to
prepayment
penalty
Made under
commitment
Most
common
base pricing
rate4
LOAN RISK 5
4,737
2.464
918
459
415
298
347
444
487
29.4
6.4
13.2
33.1
44.4
12.0
1.0
13.6
12.2
9.9
12.4
61.8
24.0
6.6
6.5
76.8
97.5
87.5
79.2
81.4
Foreign
Domestic
Domestic
Foreign
Prime
14,793
196
1,544
5,270
2,764
519
833
1,117
427
223
518
583
288
609
593
43.5
9.3
32.4
52.9
60.7
9.2
5.1
14.5
12.8
15.8
3.3
70.4
6.0
3.9
1.9
62.8
99.7
86.9
94.1
95.0
Prime
Prime
Other
Prime
Prime
6.35
5.90
5.99
6.33
6.91
18,816
1,915
2,681
7,940
2,220
852
8,730
2,544
994
600
185
134
218
185
115
20.5
.8
4.2
23.6
22.4
21.5
1.0
18.5
21.2
11.4
12.5
75.5
16.1
3.4
.9
69.3
95.3
73.5
55.2
46.2
Domestic
Domestic
Domestic
Domestic
Fed funds
16 2 to 30 days . . .
17 Minimal risk
18 Low risk
19 Moderate risk
20
Other
6.30
5.36
5.98
6.25
7.26
14,740
1.078
3,949
6,281
2,741
2,698
7,202
5,622
2,697
1,607
376
221
351
350
547
24.7
3.6
13.9
25.3
47.0
5.7
18.7
51.8
37.0
6.3
11.5
93.4
00.0
93.0
92.8
92.4
Foreign
Other
Domestic
Foreign
Foreign
21 31 to 365 days .
22
Minimal risk .
23
Low risk . . .
24
Moderate risk
25 Other
6.20
5.92
5.72
6 16
7.09
6,878
313
1,530
3,463
1,056
1,674
3,069
2,249
1.807
1.157
569
796
530
550
641
26.1
50.2
4.6
27.0
40.5
4.9
5.9
4.3
6.6
18.2
35.5
25.2
16.2
15.7
93.5
00.0
96.6
93.9
90.7
Foreign
Foreign
Foreign
Foreign
Foreign
26 More than 365 days . . .
27
Minimal risk
28
Low risk
29
Moderate risk
30
Other
7.15
4.84
6.17
7.52
7.96
1,766
148
257
1,123
188
987
3,695
2,069
1,316
371
47
52
26
50
25.3
65.3
36.8
3.6
11.0
7.6
12.9
3.6
6.7
14.7
18.3
67.4
00.0
97.6
53.7
81.0
Prime
Other
Fed funds
Prime
Prime
81.2
68.5
38.5
15.3
40.1
21.9
11.9
9.2
4.8
7.4
13.1
13.3
92.5
89.3
78.5
73.0
Prime
Prime
Prime
Domestic
mwnvl
Weightedaverage risk
rating5
47
12.6
3.2
3.1
Weightedaverage
maturity/
repricing
interval*
Days
SlZF OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
8.84
8.09
7.10
6.18
1,132
6,054
17,691
32,423
3.4
3.3
3.0
2.7
53
67
64
60
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
8.45
5.94
5.93
6.38
6.46
12,864
7,629
10,921
13,874
12,011
3.3
2.9
2.4
2.9
2.8
90
20
15
64
98
65.7
13.5
9.2
30.7
17.6
17.4
12.5
21.9
6.2
3.9
3.1
1.0
25.2
17.3
10.8
76.7
56.3
75.7
84.8
81.7
263
7,896
5,000
2,882
1.691
Financial Markets A69
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 2-6, 1998
D. Commercial and industrial loans made by small domestic banks'
Item
Amount of loans (percent)
Weighted-
Weightedsize
(thousands of
dollars)
effective
loan rate
(percent)2
loans
(millions
of dollars)
7.88
6.91
7.35
7.89
8.73
11,004
974
1,811
4.097
2,164
126
174
181
109
140
8.21
7.68
7.51
8.14
9.07
4,272
210
866
1,891
880
7.70
8.73
6.69
7.46
7.39
maturity3
common
base pricing
rate4
Secured by
collateral
Callable
Subject to
prepayment
penalty
Made under
commitment
872
530
521
812
1599
68.8
45.7
52.5
75.1
88.6
19.6
11.2
21.4
23.4
12.6
12.8
8.6
4.4
11.5
24.4
77.0
69.8
80.0
73.9
74.1
Prime
118
114
283
105
100
627
1085
351
697
783
75.5
66.7
55.7
81.2
87 3
21.1
8.4
24.4
25.7
95
7.6
4.2
8.4
3.3
19 6
82.4
77.7
82.1
79.2
84,2
Prim
Prim
Prim
Prim
1,257
9
115
412
95
179
156
326
140
132
435
280
540
416
428
56.3
96.7
20.2
71.8
444
26.4
6.7
22.1
18.8
95
20.1
*
9.1
23 3
81.1
18.7
56.8
59.7
96.6
Prime
Prime
Foreign
Prime
7.17
6.63
6.68
7.09
8.65
2,189
355
291
762
414
271
527
329
197
224
653
262
236
282
2282
55.6
48.0
47.3
50 7
94.2
24.5
22.1
24.2
34 5
24.0
21.8
11.6
.6
33 5
41.6
87.2
70.4
96.6
93.1
76.2
Foreign
Other
Foreign
7.73
6.40
7.39
8.07
8.70
1.882
339
371
462
401
78
128
83
55
156
874
320
587
508
2405
59 2
20.4
44.5
72.5
89.4
11 1
2.6
17.2
10.5
5.5
136
9.7
1.2
9.3
37.2
70 1
77.0
72.7
64.1
62.2
Other
Other
Other
Foreign
Foreign
94.6
94.0
88 8
94.5
96.8
5.2
5.4
61
5.0
1.1
8.0
1.7
.0
15.6
5.1
36.1
7.8
69,6
33.8
28.3
Other
Other
Other
Prime
Domestic
86.3
84.7
62.0
33.9
23.7
18.5
17.7
23.9
3.6
9.4
16.9
17.6
67.0
70.0
84.4
81.3
Prime
Prime
Other
Foreign
Days
LOAN RISK 5
] All commercial and industrial loans
4
5
Moderate risk
Other
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk .. .,
. . . .
9
Moderate risk
10 Other
11 Daily
13
14
15
Low risk
Moderate risk
Other .
16 2 to 30 days
18
19
20
Low risk
Moderate risk
Other
21 M to 365 days .
23
Low risk
25
Other
Prim
Prim
Prim
Foreign
Months
8.49
8.44
8.15
8.53
8.37
26 More than 365 days
27
Minimal risk
29
30
Moderate risk
Other
1,073
62
154
421
233
94
161
127
101
176
86
57
55
94
77
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval5
Days
SIZE OF LOAN
(thousands of dollars)
31
12
33
34
1 99
100-999
...
1 000-9,999 . . . .
10,000 or more
9.40
8.55
7.38
6.26
1,505
3,554
4,439
1,506
3.0
3.0
2.8
2.4
250
409
162
27
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
7
35 Prime
36 Fed funds
38 Foreign
39 Other .
....
Footnotes appear at end of table.
8.73
6.48
7.98
6.55
7.59
4,677
347
1,106
2.063
2.811
3.0
3.0
3.2
3.0
2.4
207
179
313
76
390
79.0
53.6
91.8
44.0
62.8
28.8
8.0
4.0
22.3
9.9
11.6
10.3
4.3
34.5
2.4
79.5
59.5
53.7
90.4
74.2
90
780
348
1,340
94
A70
4.23
Special Tables • February 1999
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-6, 1998
E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks'
Weightedaverage
effective
loan rate
(percent)
Amount of
loans
(millions
of dollars)
6.28
5.74
5.92
6.23
6.68
53,948
3,814
14,652
14,124
18,320
7.48
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity
Days
Secured by
collateral
Subject to
prepayment
penalty
Made under
commitment
Most
common
base pricing
rate4
LOAN RISK 5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
5,281
24,406
7,108
3,737
5,078
187
30
217
303
42.3
83.8
26.9
33.2
49.7
8.6
.6
2.0
16.9
9.6
64.9
84,2
85.6
50.2
55.5
70.6
99.0
67.1
82.5
64.0
33.8
24.3
44.5
69.5
Prime
6.1
48.1
53.9
3.4
49.1
20.1
31.9
39.9
99.7
75.0
Fed funds
Prime
Prime
4.1
*
.3
12.2
4.0
67.0
57.6
Fed funds
90.9
28.4
60.9
56.2
72.9
43.2
Fed funds
Fed funds
Fed funds
16.0
Fed funds
Foreign
Foreign
Fed funds
Fed funds
fly maturity/repricing intervalb
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10 Other
1,240
*
721
6.20
7.51
9.33
492
402
323
2,358
448
533
11 Daily
12 Minimal risk
13 Low risk
14 Moderate risk
15 Other
6.00
*
5.90
5.93
6.18
29,485
*
9,294
6,490
9,533
11,042
*
11,792
7,923
11,599
2
39
19
26.1
39.2
61.8
16 2 to 30 days
17 Minimal risk
18 Low risk
19 Moderate risk
20
Other
6.35
5.69
6.01
6.40
6.64
13,528
1,279
2,224
4,623
4,746
4,662
18,607
3,875
4,170
4,647
319
46
107
273
581
38.8
55.7
30.8
27.9
42.5
2.1
27.3
18.0
64.6
57.6
64.8
75.5
54.2
86.5
00.0
84.4
90.1
87.6
Foreign
Foreign
Foreign
Foreign
Foreign
21 31 to 365 days
22
Minimal risk
6.81
9,299
30.4
8.4
63.1
87.4
Foreign
Low risk
24
25
Moderate risk
Other
5.81
6.48
7.71
2,550
2,604
3,575
3,699
*
6,548
2,765
3.433
470
23
323
508
595
31.3
25.1
25.4
4.8
12.7
82.8
67.3
46.2
95.4
90.1
85.9
Foreign
Foreign
Foreign
8.35
236
1,043
*
57
*
45.8
7.2
53.8
100.0
Fed funds
100.0
100.0
Foreign
100.0
Fed funds
92.9
93.3
84.6
65.4
Prime
Foreign
Foreign
Fed funds
26 More than 365 days .
27
Minimal risk
28
Low risk
29
Moderate risk
30 Other
I*
6.72
9.42
92
*
140
910
1,233
Weightedaverage risk
rating5
100
609
709
54
*
59
76.9
9.0
46.7
51.0
33.8
44.5
29.0
23.2
13.1
6.6
#
90.9
.3
Weightedaverage
maturity/
repricing
interval'
Days
SIZE OP LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
7.99
7.35
6.58
6.14
75
1,662
11,993
40,219
3.1
3.2
3.2
3.0
85
54
53
17
24.4
44.3
57.6
68.0
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
9.28
6.14
6.07
6,29
6.32
1,403
22,674
6,794
22,535
543
3.6
3.5
2.5
2.8
2.3
45
15
40
87
62.3
40.3
31.3
45.6
76.0
52.4
2.9
24.7
6.5
15.4
12.6
53.3
97.2
71.2
24.0
99.3
37.2
78.3
99.5
92.9
509
10,299
10,126
5,055
4,195
Financial Markets
NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions
made during the first full business week in the mid-month of each quarter. The authorized
panel size for the survey is 348 domestically chartered commercial banks and fifty U.S.
branches and agencies of foreign banks. The sample data are used to estimate the terms of
loans extended during that week at all domestic commercial banks and all U.S. branches and
agencies of foreign banks. Note that the terms on loans extended during the survey week may
differ from those extended during other weeks of the quarter. The estimates reported here are
not intended to measure the average terms on all business loans in bank portfolios.
1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion.
Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches
and agencies averaged 1.3 billion.
2. Effective (compounded) annual interest rates are calculated from the stated rate and
other terms of the loans and weighted by loan amount. The standard error of the loan rate for
all commercial and industrial loans in the current survey (line 1, column 1) is 0.09 percentage
points. The chances are about two out of three that the average rate shown would differ by less
than this amount from the average rate that would be found by a complete survey of the
universe of all banks.
3. Average maturities are weighted by loan amount and exclude loans with no stated
maturities.
4. The most common base pricing rate is that used to price the largest dollar volume of
loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or
"reference" rate); the federal funds rate; domestic money market rates other than the prime
rate and the federal funds rate; foreign money market rates; and other base rates not included
in the foregoing classifications.
A71
5. A complete description of these risk categories is available from the Banking and
Money Market Statistics Section, Mail Stop 81, Board of Governors of the Federal Reserve
System, Washington, DC 20551. The category "Moderate risk" includes the average loan,
under average economic conditions, at the typical lender. The category "Other" includes loans
rated "acceptable" as well as special mention or classified loans. The weighted-average risk
ratings published for loans in rows 31-39 are calculated by assigning a value of " 1 " to
minimal risk loans; "2" to low risk loans; " 3 " to moderate risk loans, "4" to acceptable risk
loans; and "5" to special mention and classified loans. These values are weighted by loan
amount and exclude loans with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26,
and 31-39 are not rated for risk.
6. The maturity/repricing interval measures the period from the date the loan is made until it
first may reprice or it matures. For floating-rate loans that are subject to rtpricing at any
time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate
loans that have a scheduled repricing interval, the maturity/repricing interval measures the number
of days between the date the loan is made and the date on which it is next scheduled to reprice. For
loans having rates that remainfixeduntil the loan matures (fixed-rate loans), the maturity/repricing
interval measures the number of days between the date the loan is made and the date on which it
matures. Loans thatrepricedaily mature orrepriceon the business day after they are made. Owing
to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day;
such loans are not included in the "2 to 30 day" category.
7. For the current survey, the average reported prime rate, weighted by the amount of
loans priced relative to a prime base rate, was 8.04 percent for all banks; 8.02 percent for
large domestic banks, 8.09 percent for small domestic banks; and 8.01 percent for U.S.
branches and agencies of foreign banks.
A72
4.30
Special Tables • February 1999
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, Septemter 30, 19981
Millions of dollars except as noted
All states2
including
IBFs3
1 Total assets4 .
IBFs
only5
New York
Total
including
IBFs
California
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
954,578
206,049
764,465
173,495
43,384
7,899
59,192
5,272
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 IBFs)
8
Other depository institutions in United States (including IBFs)...
9
Balances with banks in foreign countries and with foreign central
banks
10
Foreign branches of U.S. banks
11
Banks in home country and home-country centra] banks . . . . . . . .
12
All other banks in foreign countries and foreign central banks . . .
13 Balances with Federal Reserve Banks
779,497
81,437
3,545
18
46,283
99,478
45,518
0
n.a.
17,073
617,795
76,650
3,412
12
42,874
85,702
43,931
0
n.a.
16,379
40,607
976
12
1
773
3,395
416
0
59,099
1,157
34
0
752
2,201
554
0
n.a.
193
40,959
5,324
16,498
574
38.199
4,675
15,809
570
500
273
285
0
582
169
193
0
30,941
1,020
5.291
24,630
651
28,446
946
4,722
22,777
n.a.
29,773
979
5,251
23,543
578
27,552
908
4,682
21,962
168
0
11
157
22
131
0
11
121
365
26
25
314
6
361
26
25
309
n.a.
14 Total securities and loans
480,199
45,598
360,217
34,776
37,611
2,756
41^33
862
15 Total securities, book value
16 U.S. Treasury
17 Obligations of U.S. government agencies and corporations
18 Other bonds, notes, debentures, and corporate stock (including state
and local securities)
19
Securities of foreign governmental units
20
All Other
114,886
22,309
44,496
5,700
n.a.
n.a.
106,153
20,994
43,227
4,954
n.a.
n.a.
1,320
86
125
557
n.a.
6,630
1,000
926
145
n.a.
48,080
14,019
34.061
5,700
3,180
2,520
41,932
13,460
28,472
4,954
2,983
1,971
1,109
344
765
557
118
438
4,704
144
4,561
145
65
80
94,150
17,177
12,018
64,955
6,404
2,529
42
3,833
83,424
14,666
11,155
57,604
5,268
2,122
40
3,106
819
669
111
40
159
148
2
9
7,769
1,550
325
5,894
750
200
0
550
365,551
238
365,313
39.922
25
39,898
254,226
162
254,064
29,843
20
29,823
36,325
34
36,291
2.200
1
2,199
34,911
8
34,903
718
1
717
21,852
32,931
8,746
6,414
2,332
45
24,140
1,353
22,787
56,981
195
20,664
3,946
3,737
210
5
16,713
560
16,152
1,027
14,316
20,891
6,631
4,474
2,157
23
14,237
1,273
12,964
46,507
123
13,544
2,735
2,539
196
0
10,809
493
10,316
903
4,748
1,932
1,301
1,160
140
0
632
0
631
1,631
65
1,455
862
862
0
0
593
0
592
0
674
979
198
186
12
0
782
0
782
5,346
0
551
98
88
10
0
454
0
454
13
38 Commercial and industrial loans
39
U.S. addressees (domicile)
40
Non-U.S. addressees (domicile)
41 Acceptances of other banks
42
U.S. banks
43
Foreign banks
44 Loans to foreign governments and official institutions (including
foreign central banks)
45 Loans for purchasing or carrying securities (secured and unsecured) .
46 All other loans
228,025
188,253
39,772
286
26
261
15,654
105
15,549
39
0
39
150,179
121,461
28,718
153
12
141
13,074
105
12,969
39
0
39
27,537
25,224
2,314
19
3
15
643
0
643
0
0
0
26,257
23,763
2,494
102
0
102
151
0
151
0
0
0
3,463
12,962
8,385
2,225
31
86
2.857
12,711
6,278
2,076
21
62
237
45
175
38
0
0
78
40
1,103
3
0
0
47
48
49
50
51
52
53
54
55
56
57
58
667
667
0
85,531
38,179
3,213
1,902
1,311
34,966
175,081
0
0
0
227
1,731
n.a.
n.a.
n.a.
1,731
106,572
332
332
0
66,281
31,223
2,317
1.318
1,000
28,906
146,670
0
0
0
227
1,500
n.a.
n.a.
n.a.
1,500
87,793
0
0
0
119
1,082
543
496
47
539
2,776
0
0
0
0
64
n.a.
n.a.
n.a.
64
4,504
333
333
0
6,569
2,071
175
77
98
1,895
93
93
0
0
0
0
35
n.a.
n.a.
n.a.
35
3,071
n.a.
175,081
n.a.
146,670
4.504
n.a.
3,071
n.a.
106,572
n.a.
7,899
59,192
5,272
7,529
36,974
4.507
21 Federal funds sold and securities purchased under agreements to
resell
22
U.S. branches and agencies of other foreign banks
23 Commercial banks in United States
24 Other
25 Total loans, gross
26 LESS: Unearned income on loans...
27
EQUALS: Loans, net
Total loans, gross, by category
28 Real estate loans
29 Loans to depository institutions
30 Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Other depository institutions in United States (including IBFs).
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
37 Loans to other financial institutions
Lease financing receivables (net of unearned income)
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Trading assets
All other assets
Customers' liabilities on acceptances outstanding
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Other assets including other claims on nonrelated parties
Net due from related depository institutions
Net due from head office and other related depository institutions5.
Net due from establishing entity, head office, and other related
depository institutions
59 Total liabilities4
954,578
206,049
43,384
764,465
155,809
771,660
n.a.
173,495
60 Liabilities to nonrelated parties
Footnotes appear at end of table.
2,776
87.793
183,995
650,711
18,096
U.S. Branches and Agencies
4.30
A73
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19981—Continued
Millions of dollars except as noted
Total
excluding
IBFs3
61 Total deposits and credit balances
62
Individuals, partnerships, and corporations
63
U.S. addressees (domicile)
64
Non-U.S. addressees (domicile)
65
Commercial banks in United States (including IBFs)
66
U.S. branches and agencies of other foreign banks
67
Other commercial banks in United States
68 Banks in foreign countries
69
Foreign branches of U.S. banks
70
Other banks in foreign countries
71
Foreign governments and official institutions
(including foreign central banks)
72
All other deposits and credit balances
73
Certified and official checks
74 Transaction accounts and credit balances (excluding IBFs) . . .
75
Individuals, partnerships, and corporations
76
US. addressees (domicile)
77
Non-U.S. addressees (domicile)
78 Commercial banks in United States (including IBFs)
79
U.S. branches and agencies of other foreign banks
80
Other commercial banks in United States
81
Banks in foreign countries
82
Foreign branches of U.S. banks
83
Other banks in foreign countries
84
Foreign governments and official institutions
(including foreign central banks)
85
All other deposits and credit balances
86
Certified and official checks
87 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
U.S addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
98
All other deposits and credit balances
99
Certified and official checks
88
89
90
9!
92
93
94
95
96
97
100 Nontransaction accounts (including MMDAs. excluding IBFs)
101
Individuals, partnerships, and corporations
102
U.S. addressees (domicile)
103
Non-U.S. addressees (domicile)
104 Commercial banks in United States (including IBFs)
105
U.S. branches and agencies of other foreign banks
106
Other commercial banks in United States
107
Banks in foreign countries
108
Foreign branches of U.S. banks
109
Olher banks in foreign countries
110 Foreign governments and official institutions
(including foreign central banks)
111
All other deposits and credit balances
112 IBF deposit liabilities
113
Individuals, partnerships, and corporations
114
U.S. addressees (domicile)
115
Non-U.S. addressees (domicile)
116 Commercial banks in United Slates (including IBFs)
117
U.S. branches and agencies of other foreign banks
118
Other commercial banks in United States
119
Banks in foreign countries
120
Foreign branches of U.S. banks
121
Other banks in foreign countries
122 Foreign governments and official institutions
(including foreign central banks)
123
All other deposits and credit balances
Footnotes appear at end of table.
303,645
242,024
225,591
16,434
32,630
19,486
13,143
7,305
1,534
5,771
8,065
13,460
161
IBFs
only3
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
133,542
13,138
461
12,676
17,342
15.554
1.788
75,556
2,413
73,142
260,635
204,022
194.440
9,582
29,377
17,082
12,295
6,843
1,529
5.314
117,888
7,810
434
7,376
16,570
15,010
1,560
70,055
2,388
67,666
5,701
5,453
3,748
1,705
203
0
203
15
0
15
1,463
239
0
239
233
203
30
2S0
25
255
12.973
11,363
10.805
559
1.233
663
570
82
0
82
1,902
88
28
60
184
184
(I
1,329
0
1,329
27,387
120
7,206
13,048
138
23,349
103
5
18
7
696
15
253
40
300
9,945
7,707
5,424
2,283
385
357
172
185
0
0
0
15
382
376
374
508
469
39
888
10
879
7,525
5,719
4,496
1,222
504
467
37
572
5
567
517
164
161
447
146
138
9,392
7,268
5,313
1,955
456
419
37
869
7
862
7,267
5,560
4,418
1,143
452
417
35
555
3
553
274
250
155
95
0
0
0
15
0
15
504
134
161
442
120
138
1
7
293,700
234,317
220,167
14,150
32,121
19,017
13,104
6,416
1,524
4,892
253,110
198.304
189,944
8,360
28,873
16,615
12,258
6,271
1,524
4,747
5,316
5,097
3,576
1.520
202
0
202
0
0
0
12,591
10.988
10.431
556
1,233
663
570
80
0
80
7,548
13,296
6,759
12,903
4
13
250
40
0
0
0
0
2
3
0
380
173
371
2
0
0
0
133,542
13.138
461
12,676
17,342
15,554
1,788
75,556
2,413
73,142
117,888
7,810
434
7,376
16,570
15,010
1,560
70,055
2,388
67,666
1,463
239
0
239
213
203
30
280
25
255
27,387
120
23,349
103
696
15
1.902
88
28
60
184
184
1)
1.329
0
1,329
300
A74
4.30
Special Tables • February 1999
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19981—Continued
Millions of dollars except as noted
All states 2
Item
Total
including
IBFs3
124 Federal funds purchased and securities sold under agreements to
repurchase
1 25
U.S. branches and agencies of other foreign banks
1 26
Other commercial banks in United States
127
Other
131
32
33
134
135
Owed to U.S. branches and agencies of nonreiaied
foreign banks
Owed to nonrelated banks in foreign countries
Owed to foreign branches of nonrelated U.S. banks
Owed to foreign offices of nonreiaied foreign banks
Owed to others
136 All other liabilities
137
Branch or agency liability on accepiances executed and
outstanding
38
Trading liabilities
39
Other liabilities to nonrelated parties
140 Net due to related depository institutions"
141
Net due to head office and other related depository institutions
142
Net due to establishing entity, head office, and other related
depository institutions"
143
144
145
146
147
148
149
150
....
MKMO
Non-iiiterest-bearing balances with commercial banks
in United States
Holding of own acceptances included in commercial and
industrial loans
Commercial and industrial loans with remaining maturily of one year
or less (excluding those in nonaccmal status)
Predetermined interest rates
Floating interest rales
Commercial and industrial loans with remaining maturity of more
than one year (excluding those in nonaccmal status)
Predetermined interest rates
Floating interest rates
Footnotes appear at end of table.
IBFs
only3
15,690
3,793
York
Illinois
California
Total
including
IBFs
IBFs
only
11,740
2,565
74
9,101
24,475
Total
including
IBFs
Total
including
IBFs
IBFs
only
521
233
101
8,691
1,957
1,461
391
437
10
187
5.484
6.343
6.333
1,014
1.115
173
20
IBFs
only
19.712
19,333
124,334
82,623
11,712
32,888
142,899
13.25.1
16,235
113,411
61.094
13,273
4.371
5.871
569
10,513
3.S96
4.588
399
1,363
644
122
575
195
8,903
23.736
5.302
20.859
6,617
16,216
522
498
4.695
832
648
190
190
22,833
45.614
20,027
6, 58
15,568
34,365
4,188
14,266
587
13,679
5,622
1.167
4.810
904
4,620
1,339
4,505
831
5
826
146
4.927
88,469
1,874
68,195
1.706
953
61
7,076
3,390
58,932
26,148
n.a.
n.a.
1.796
2,486
43,470
22.239
1,628
544
113
296
182,919
182,919
22,054
n.a.
113,754
113,754
17,686
n.a.
25,288
25,288
n.a.
22.054
n.a.
17.686
n.a.
163,379
128 Other borrowed m o n e j
124 Owed to nonrelated commercial banks in United States (including
IBFs)
New
186
78
1,604
3.620
127.432
80.767
46,666
99,169
24,554
74,616
0
t
n.a.
78
1,419
2,172
78,443
49,284
29.159
70.478
19,261
51,216
0
t
n.a.
2,468
1.008
999
462
7,511
n.a.
15,088
7,435
7,653
12,412
2,057
10,355
153
0
61
5,636
1,287
370
22.217
22.217
n.a.
370
47
1.053
77
0
t
n.a.
n.a.
153
826
5
821
116
29
n.a.
0
29
766
n.a.
766
42
298
18,233
15,751
2,482
7,939
1,892
6,047
0
f
n.a.
U.S. Branches and Agencies
4.30
A75
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1998'—Continued
Millions of dollars except as noted
All states2
Item
151 Components of tola! nontransaction accounts,
included in total deposits and credit balances
(excluding IBFs)
152 Time deposits of $100,000 or more
153 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months
IBFs
only'
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
294,637
287,251
n.a.
n.a.
254,912
248,789
n.a.
n.a.
5,169
5,073
n.a.
n.a.
12.562
11,949
n.a.
n.a.
7,386
n.a.
6,123
n.a.
96
n.a
613
n.a.
California
Neu York
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
33.658
439
n.a.
0
26.577
220
n.a.
0
1. Dala are aggregates of categories reported on the quarterly form FFIEC 002, ''Report of
Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,1985. From
November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a
monthly FR 886a report. Aggregate data from thai report were available through the Federal
Reserve monthly statistical release G.I 1, last issued on July 10, 1980. Data in this table and in
the G.I I tables are not strictly comparable because of differences in reporting panels and in
definitions of balance sheet items.
2. Includes the District of Columbia
3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to
permit banking offices located in the United States to operate international banking facilities
(IBFs). Since December 31. 1985. data for IBFs have been reported in a separate column.
The^e data are either included in or excluded from the total columns as indicated in the
headings The notation "n.a." indicates that no IBF data have been reported for that item.
Illinois
Total
excluding
IBFs'
All states-
154 Immediately available funds with a maturity greater than one day
included in other borrowed money
155 Number of reports filed6
California
New York
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
4,539
92
n.a.
0
1,841
36
n.a.
0
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. Toial assets and total liabilities include net balances, if any, due from or owed to related
banking institutions in the United States and in foreign countries (see note 5). On the former
monthly branch and agency report, available through the G.11 monthly slatislical release.
gross balances were included in total assets and total liabilities. Therefore, total asset and total
liability figures in this table are not comparable to those in the G.l 1 tables.
5. Related depository institutions includes the foreign head office and other U.S. and
foreign branches and agencies of a bank, a bank's parent holding company, and majorityowned banking subsidiaries of the bank and of its parent holding company (including
subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same metropolitan area
file a consolidated report.
A76
Federal Reserve Bulletin • February 1999
Index to Statistical Tables
References are to pages A3—A75 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21, 64. 65
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 72-75
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21, 72-75. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21, 64, 65
Federal Reserve Banks, 10
Central banks, discount rates, 61
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21, 64, 65, 66-71
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21, 64, 65
Commercial and industrial loans, 15-21, 64, 65, 66-71
Consumer loans held, by type and terms, 36, 66-71
Number, by classes, 64, 65
Real estate mortgages held, by holder and property, 35
Terms of lending, 66-71
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit. 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31,61
Cost of living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5,13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements. 8
Reserves and related items, 4, 5, 6. 12, 64, 65
Deposits (See also specific types)
Commercial banks, 4, 15-21, 64, 65
Federal Reserve Banks, 5, 10
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 32
EMPLOYMENT, 42
Eurodollars, 23, 61
FARM mortgage loans, 35
Federal agency obligations, 5, 9, 10, 11, 28, 29
Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper. 22, 23
Float, 5
Flow of funds, 37-41
Foreign banks, U.S. branches and agencies, 70, 72-75
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55, 56, 57, 59
Liabilities to, 51, 52, 53, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Commercial banks, 66-71
Consumer credit, 36
Federal Reserve Banks, 7
Foreign banks, U.S. branches and agencies, 70
Foreign central banks and foreign countries, 61
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
International organizations, 52. 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
A77
Investments (See also specific types)
Commercial banks, 4, 15-21, 64, 65
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21, 64,65, 66-71
Federal Reserve Banks, 5, 6, 7, 10, 11
Financial institutions, 35
Foreign banks, U.S. branches and agencies, 70
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8 (See also
Depository institutions)
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42. 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21,35
Terms, yields, and activity, 34
Type of holder and property mortgaged, 35
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4, 5, 6, 12
Federal Reserve Banks, 10
U.S. reserve assets. 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
SAVING
Flow of funds, 37-41
National income accounts, 48
Savings institutions, 35, 36, 37-41
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21, 64, 65
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 15-21,27
Dealer transactions, positions, and financing, 29
Federal Reserve Bank holdings, 5, 10, 11, 27
Foreign and international holdings and
transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production. 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
A78
Federal Reserve Bulletin • February 1999
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
ALICE M. RIVLIN, Vice Chair
EDWARD W. KELLEY, JR.
LAURENCE H. MEYER
OFFICE OF BOARD MEMBERS
LYNN S. FOX, Assistant to the Board
DIVISION OF INTERNATIONAL FINANCE
DONALD J. WINN, Assistant to the Board
LEWIS S. ALEXANDER, Deputy Director
PETER HOOPER III, Deputy Director
DALE W. HENDERSON, Associate Director
DAVID H. HOWARD, Senior Adviser
DONALD B. ADAMS, Assistant Director
THOMAS A. CONNORS, Assistant Director
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
WINTHROP P. HAMBLEY, Deputy Congressional Liaison
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
KATHLEEN M. O'DAY, Associate General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
OFFICE OF THE SECRETARY
JENNIFER J. JOHNSON, Secretary
ROBERT DEV. FRIERSON, Associate Secretary
BARBARA R. LOWREY, Associate Secretary and Ombudsman
KAREN H. JOHNSON, Director
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C. ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
WILLIAM R. JONES, Associate Director
MYRON L. KWAST, Associate Director
PATRICK M. PARKINSON, Associate Director
THOMAS D. SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
MARTHA S. SCANLON, Deputy Associate Director
STEPHEN D. OLINER, Assistant Director
STEPHEN A. RHOADES, Assistant Director
JANICE SHACK-MARQUEZ, Assistant Director
CHARLES S. STRUCKMEYER, Assistant Director
ALICE PATRICIA W H I T E , Assistant Director
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C. SCHEMERING, Deputy Director
HERBERT A. BIERN, Associate Director
ROGER T. COLE, Associate Director
WILLIAM A. RYBACK, Associate Director
JOYCE K. ZICKLER, Assistant Director
GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
JOHN J. MINGO, Senior Adviser
DIVISION OF MONETARY AFFAIRS
DONALD L. KOHN, Director
GERALD A. EDWARDS, JR., Deputy Associate Director
STEPHEN M. HOFFMAN, JR., Deputy Associate Director
JAMES V. HOUPT, Deputy Associate Director
JACK P. JENNINGS, Deputy Associate Director
MICHAEL G. MARTINSON, Deputy Associate Director
SIDNEY M. SUSSAN, Deputy Associate Director
MOLLY S. WASSOM, Deputy Associate Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
HOWARD A. AMER, Assistant Director
NORAH M. BARGER, Assistant Director
BETSY CROSS, Assistant Director
RICHARD A. SMALL, Assistant Director
WILLIAM SCHNEIDER, Project Director,
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
National Information Center
RICHARD D. PORTER, Deputy Associate Director
VINCENT R. REINHART, Deputy Associate Director
WILLIAM C. WHITESELL, Assistant Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DOLORES S. SMITH, Director
GLENN E. LONEY, Deputy Director
SANDRA F. BRAUNSTEIN, Assistant Director
MAUREEN P. ENGLISH, Assistant Director
ADRIENNE D. HURT, Assistant Director
IRENE SHAWN MCNULTY, Assistant
Director
A79
ROGER W. FERGUSON, JR.
EDWARD M. GRAMLICH
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
S. DAVID FROST, Staff Director
CLYDE H. FARNSWORTH, JR., Director
JOHN R. WEIS, Adviser
LOUISE L. ROSEMAN, Associate Director
PAUL W. BETTGE, Assistant Director
KENNETH D. BUCKLEY, Assistant Director
JACK DENNIS, JR., Assistant Director
JOSEPH H. HAYES, JR., Assistant Director
JEFFREY C. MARQUARDT, Assistant Director
MARSHA REIDHILL, Assistant Director
JEFF STEHM, Assistant Director
MANAGEMENT DIVISION
S. DAVID FROST, Director
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R. PAULEY, Associate Director, Human Resources
Function
SHEILA CLARK, EEO Programs Director
DIVISION OF SUPPORT SERVICES
OFFICE OF THE INSPECTOR
ROBERT E. FRAZIER, Director
BARRY R. SNYDER, Inspector General
GEORGE M. LOPEZ, Assistant Director
DAVID L. WILLIAMS, Assistant Director
DIVISION OF INFORMATION RESOURCES
MANAGEMENT
STEPHEN R. MALPHRUS, Director
RICHARD C. STEVENS, Deputy Director
MARIANNE M. EMERSON, Assistant Director
MAUREEN HANNAN, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B. RIGGS, Assistant Director
GENERAL
DONALD L. ROBINSON, Assistant Inspector General
A80
Federal Reserve B ulletin • February 1999
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
WILLIAM J. MCDONOUGH, Vice Chairman
ALAN GREENSPAN, Chairman
EDWARD W. KELLEY, JR.
LAURENCE H. MEYER
ROBERT D. MCTEER, JR.
EDWARD G. BOEHNE
ROGER W. FERGUSON, JR.
EDWARD M. GRAMLICH
MICHAEL H. MOSKOW
GARY H. STERN
ALICE M. RIVLIN
ALTERNATE MEMBERS
J. ALFRED BROADDUS, JR.
JACK GUYNN
ROBERT T. PARRY
JERRY L. JORDAN
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Deputy Secretary
LYNN S. FOX, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
MICHAEL J. PRELL, Economist
LYNN E. BROWNE, Associate Economist
STEPHEN G. CECCHETTI, Associate Economist
CRAIG S. HAKKIO, Associate Economist
DAVID E. LINDSEY, Associate Economist
MARK S. SNIDERMAN, Associate Economist
THOMAS D. SIMPSON, Associate Economist
DAVID J. STOCKTON, Associate Economist
PETER R. FISHER, Manager, System Open Market Account
FEDERAL ADVISORY COUNCIL
LAWRENCE K. FISH, First District
DOUGLAS A. WARNER III, Second District
RONALD L. HANKEY, Third District
ROBERT W. GILLESPIE, Fourth District
KENNETH D. LEWIS, Fifth District
STEPHEN A. HANSEL, Sixth District
NORMAN R. BOBINS, Seventh District
KATIE S. WINCHESTER, Eighth District
RICHARD A. ZONA, Ninth District
C. Q. CHANDLER, Tenth District
RICHARD W. EVANS, JR., Eleventh District
WALTER A. DODS, JR., Twelfth District
JAMES ANNABLE, Co-Secretary
WILLIAM J. KORSVIK, Co-Secretary
A81
CONSUMER ADVISORY COUNCIL
YVONNE S. SPARKS, St. Louis, Missouri, Chairman
DWIGHT GOLANN, Boston, Massachusetts, Vice Chairman
LAUREN ANDERSON, New Orleans, Louisiana
WALTER J. BOYER, Garland, Texas
WAYNE-KENT A. BRADSHAW, LOS Angeles, California
MALCOLM M. BUSH, Chicago, Illinois
JEREMY D. EISLER, Biloxi, Mississippi
ROBERT F. ELLIOT, Prospect Heights, Illinois
JOHN C. GAMBOA, San Francisco, California
ROSE M. GARCIA, El Paso, Texas
VINCENT J. GIBLIN, West Caldwell, New Jersey
KARLA S. IRVINE, Cincinnati, Ohio
WILLIE M. JONES, Boston, Massachusetts
JANET C. KOEHLER, Jacksonville, Florida
GWENN S. KYZER, Allen, Texas
JOHN C. LAMB, Sacramento, California
ANNE S. LI, Trenton, New Jersey
MARTHA W. MILLER, Greensboro, North Carolina
DANIEL W. MORTON, Columbus, Ohio
CHARLOTTE NEWTON, Springfield, Virginia
CAROL J. PARRY, New York, New York
PHILIP PRICE, JR., Philadelphia, Pennsylvania
MARTA RAMOS, San Juan, Puerto Rico
DAVID L. RAMP, Minneapolis, Minnesota
MARILYN ROSS, Omaha, Nebraska
ROBERT G. SCHWEMM, Lexington, Kentucky
DAVID J. SHIRK, Eugene, Oregon
GAIL M. SMALL, Lame Deer, Montana
GARY S. WASHINGTON, Chicago, Illinois
ROBERT L. WYNN, II, Madison, Wisconsin
THRIFT INSTITUTIONS ADVISORY COUNCIL
WILLIAM A. FITZGERALD, Omaha, Nebraska, President
F. WELLER MEYER, Falls Church, Virginia, Vice President
GAROLD R. BASE, Piano, Texas
BABETTE E. HEIMBUCH, Santa Monica, California
JAMES C. BLAINE, Raleigh, North Carolina
THOMAS S. JOHNSON, Manhattan, New York
WILLIAM A. LONGBRAKE, Seattle, Washington
KATHLEEN E. MARINANGEL, McHenry, Illinois
ANTHONY J. POPP, Marietta, Ohio
DAVID A. BOCHNOWSKI, Munster, Indiana
LAWRENCE L. BOUDREAUX III, New Orleans, Louisiana
RICHARD P. COUGHLIN, Stoneham, Massachusetts
A82
Federal Reserve Bulletin • February 1999
Federal Reserve Board Publications
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Consumer Handbook on Adjustable Rate Mortgages
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Federal Reserve Banks
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Welcome to the Federal Reserve
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A83
STAFF STUDIES: Only Summaries Printed in the
163.
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164.
N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang and
165.
BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
162.
EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORTGAGE LOAN RATES IN TWENTY CITIES, by Stephen A.
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FOR REAL ESTATE, by
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1993. 18 pp.
166.
T H E ECONOMICS OF THE PRIVATE PLACEMENT MARKET, by
Mark Carey, Stephen Prowse, John Rea, and Gregory Udell.
January 1994. I l l pp.
167.
A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING
PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES,
170.
T H E COST OF IMPLEMENTING CONSUMER FINANCIAL REGULATIONS: A N ANALYSIS OF EXPERIENCE WITH THE TRUTH
Donald Savage. February 1990. 12 pp.
160.
T H E 1989-92 CREDIT CRUNCH
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
159.
CLEARANCE AND SETTLEMENT IN U.S. SECURITIES MAR-
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
BULLETIN
by Stephen A. Rhoades. July 1994. 37 pp.
IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey, December 1997. 17 pp.
171. T H E COST OF BANK REGULATION: A REVIEW OF THE EVI-
DENCE, by Gregory Elliehausen, April 1998. 35 pp.
A84
Federal Reserve Bulletin • February 1999
Maps of the Federal Reserve System
ON
EW YORK
ADELPHIA
•.'.
;
•
, • .
CA
HAWAII
LEGEND
Both pages
•
Federal Reserve Bank city
•
Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
* Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A85
1-A
2-B
4-D
3-C
5-E
Pittsburgh
BaltimQie MD
. NJ
—wv
icmnati
BOSTON
NEW YORK
PHILADELPHIA
7-G
CLEVELAND
RICHMOND
8-H
KY
sville
CHICAGO
ATLANTA
ST. LOUIS
9-1
MINNEAPOLIS
10-J
12-L
01
if
KANSAS CITY
11-K
HAWAII
DALLAS
SAN FRANCISCO
A86
Federal Reserve Bulletin • February 1999
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
William C. Brainard
William O. Taylor
John C. Whitehead
Peter G. Peterson
14240 Bal Dixit
William J. McDonough
Jamie B. Stewart, Jr.
PHILADELPHIA
19105
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Buffalo
Joan Carter
Charisse R. Lillie
Carl W. Turnipseed'
G. Watts Humphrey, Jr.
David H. Hoag
45201 George C. Juilfs
15230 John T. Ryan, III
Jerry L. Jordan
Sandra Pianalto
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Claudine B. Malone
Jeremiah J, Sheehan
Daniel R. Baker
Joan H. Zimmerman
John F. Wieland
Paula Lovell
V. Larkin Martin
Marsha G. Rydberg
Mark T. Sodders
N, Whitney Johns
R. Glenn Pumpelly
Jack Guynn
Patrick K. Barron
Lester H. McKeever, Jr.
Arthur C. Martinez
Florine Mark
Michael H. Moskow
William C. Conrad
Susan S. Elliott
Charles W. Mueller
To be announced
To be announced
To be announced
William Poole
W. LeGrande Rives
David A. Koch
James J. Howard
Thomas O. Markle
Gary H. Stern
Colleen K. Strand
Jo Marie Dancik
Terrence P. Dunn
Kathryn A. Paul
Larry W. Brummett
Gladys Styles Johnston
Thomas M. Hoenig
Richard K. Rasdall
Roger R. Hemminghaus
James A. Martin
To be announced
To be announced
To be announced
Robert D. McTeer, Jr.
Helen E. Holcomb
Gary G. Michael
Nelson C. Rising
Lonnie Kane
Nancy Wilgenbusch
Barbara L. Wilson
Richard R. Sonstelie
Robert T. Parry
John F. Moore
Cincinnati
Pittsburgh
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Robert B. Schaub
William J. Tignanelli1
DanM. Bechter1
James M. Mckee
FredR. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
David R. Allardice1
Robert A. Hopkins
Thomas A. Boone
Martha L. Perine
Samuel H. Gane
Carl M. Gambs •
Kelly J. Dubbert
Steven D. Evans
Sammie C. Clay
Robert Smith, III'
James L. Stall'
Mark L. Mullinix'
Raymond H. Laurence'
Andrea P. Wolcott
Gordon R. G. Werkema2
•Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President
@FedFRASER