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Volume 86 • Number 2 • February 2000
Federal Reserve
BULLETIN
Board of Governors of the Federal Reserve System, Washington, D.C.
Table of Contents
81 U.S. BANK EXPOSURE TO EMERGINGMARKET COUNTRIES DURING RECENT
FINANCIAL CRISES
Global financial markets have experienced significant volatility in recent years, including
financial crises in Asia in 1997 and in Russia in
1998. Emerging-market countries, in particular,
were subject to sharp downward market moves.
U.S. banking supervisors monitored these events
carefully to determine the potential effect on
U.S. banking organizations and paid particular
attention to U.S. bank claims on emergingmarket counterparties. Monitoring claims on
emerging-market counterparties allows supervisors to identify any developing concentrations
of risk that might warrant supervisory action
and, if necessary, to assess the effect that a
potential emerging-market crisis might have on
U.S. banks.
This article focuses on the claims U.S. banks
held on emerging-market counterparties during
the two-year period from June 1997 to June
1999 and discusses the different ways that
emerging-market claims can be analyzed. In
addition, the article provides a short analysis of
the claims held by other developed country
banks on emerging-market countries to show the
relative size of U.S. bank claims. Finally, the
data from the 1997-99 period are discussed in
the broader historical context of U.S. banks'
country exposure dating back to 1982.
97 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR DECEMBER 1999
Industrial production increased 0.4 percent in
December, the same rate as in November, to
140.5 percent of its 1992 average. The rate of
capacity utilization for total industry edged up in
December, to 81.3 percent, a level 0.8 percentage point below its 1967-98 average.
ioi
ANNOUNCEMENTS
Directive of
Committee.
the
Federal
Open
Market
Appointments of new members and a new president and vice president of the Thrift Institutions
Advisory Council.
Increase in the exemption threshold for depository institutions reporting under HMDA.
Extension of the comment period on proposals
to allow electronic delivery of federally mandated disclosures.
Changes for 2000 in the fee schedules for priced
services of the Federal Reserve Banks.
Issuance of joint guidance on asset securitization activities.
Normal operations reported for financial institutions after the century date change.
Survey of consumer confidence in Y2K preparations of banks.
Publication of the December 1999 update to the
Bank Holding Company Supervision Manual.
Enforcement actions and terminations of actions.
106 MINUTES OF THE MEETING OF THE
FEDERAL OPEN MARKET
HELD ON NOVEMBER 16,
COMMITTEE
1999
At this meeting, the Committee adopted a directive that called for increasing the federal funds
rate by 25 basis points, to 5Vi percent, and that
was symmetrical with regard to the outlook for
policy over the near term.
113 LEGAL
DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
December 28, 1999.
A3 GUIDE TO TABULAR PRESENTATION
A76 INDEX TO STATISTICAL TABLES
A78 BOARD OF GOVERNORS AND STAFF
A80 FEDERAL OPEN MARKET COMMITTEE AND
STAFF; ADVISORY COUNCILS
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A82 FEDERAL RESERVE BOARD
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A86 FEDERAL RESERVE BANKS,
AND OFFICES
PUBLICATIONS
A84 MAPS OF THE FEDERAL RESERVE SYSTEM
BRANCHES,
PUBLICATIONS COMMITTEE
Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus
• J. Virgil Mattingly, Jr. • Michael J. Prell • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens
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.
U.S. Bank Exposure to Emerging-Market Countries
during Recent Financial Crises
David E. Palmer, of the Board's Division of Banking
Supervision and Regulation, prepared this article.
Peggy Wolffrum provided research assistance.
Global financial markets have experienced significant volatility in recent years. In two major cases,
actual financial crises arose—the first emanating from
Asia in 1997 and the second from Russia in 1998. In
both crises, financial markets in almost every country
were affected, some suffering considerable declines.
Emerging-market countries, in particular, were subject to sharp downward market moves.
U.S. banking supervisors monitored these events
carefully to determine the potential effect on U.S.
banking organizations. 1 Supervisors analyze information on the amount and type of claims on foreign counterparties held by U.S. banks to assess
the potential risks from lending, trading, and other
activities conducted by U.S. banks in foreign markets
(see box "Types of Claims on Emerging-Market
Counterparties ") . 2
Because emerging-market countries exhibited
significant market volatility in the recent crises,
supervisors paid additional attention to claims on
counterparties in those areas. Furthermore, claims on
emerging-market counterparties are concentrated at a
small number of U.S. banks, which necessitates particular supervisory scrutiny of the international activities of those institutions.
A major purpose of collecting country exposure
data is to identify country risk—the potential for a
claim on a foreign counterparty held by a U.S. bank
to become impaired or eventually subject to losses.
Country risk encompasses counterparty credit risk
and transfer risk. Counterparty credit risk relates to
the inability of a counterparty to repay and may arise
from country-specific factors, such as general eco-
1. Hereafter, U.S. banking organizations, which include U.S. banks
and bank holding companies, will be referred to as "U.S. banks."
2. U S . banks report their claims on foreign counterparties quarterly
on the Country Exposure Report of the Federal Financial Institutions
Examination Council (FFIEC reporting form 009). These claims
are aggregated by country and published by the FFTEC as the Country Exposure Lending Survey (available at www.ffiec.gov/E16/
default.htm).
nomic or political disruptions; for example, a sharp
recession in a foreign country might cause a foreign
counterparty to go bankrupt. Transfer risk arises
when exchange-rate difficulties (such as a depreciation or currency controls) impair those claims that are
not offset by local liabilities; for example, a foreign
counterparty might have difficulty acquiring U.S.
dollars to repay an obligation that is not denominated in its home currency. Monitoring claims on
emerging-market counterparties allows supervisors
to identify any developing concentrations of risk that
might warrant supervisory action and, if necessary, to
assess the effect that a potential emerging-market
crisis might have on U.S. banks. 3
This article focuses on the claims U.S. banks held
on emerging-market counterparties during the twoyear period from June 1997 to June 1999 and discusses the different ways that emerging-market
claims can be analyzed. In addition, the article provides a short analysis of the claims held by other
developed-country banks on emerging-market countries to show the relative size of U.S. bank claims.
Finally, the data from the 1997-99 period are discussed in the broader historical context of U.S. banks'
country exposure dating back to 1982.
U.S. BANK CLAIMS ON FOREIGN
COUNTERPARTIES
Country exposure data for June 1997 to June 1999
reveal that the aggregate claims of U.S. banks on
counterparties from all foreign countries rose 11 percent, reaching $756 billion (table l). 4 Cross-border
claims (including revaluation gains) stood at
$423 billion in June 1997 and rose to $461 billion in
June 1999. Local country claims (including revaluation gains) also rose over the period, from $257 billion to $295 billion. Despite the overall increase in
3. Supervisors from the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation
meet regularly within the framework of the Interagency Country
Exposure Review Committee (ICERC) to discuss transfer risk issues
that affect U.S. banks. Examiners present ICERC's country assessments to U.S. banks to inform them of potentially risky conditions.
4. Data on the claims of individual banks are not publicly available.
82
Federal Reserve Bulletin • February 2000
total claims held by U.S. banks over this period, a
slight drop-off occurred in the first two quarters of
1999.
Total claims on counterparties in developed countries and banking centers rose in the aggregate, from
$485 billion to $572 billion (an increase of 18 per-
Types of Claims on Emerging-Market Counterparties
Data reported on the Country Exposure Lending Survey can
be disaggregated by type of claim to provide a picture of the
various types of exposure.
Cross-Border versus Local Claims
Cross-border claims are those booked outside the foreign
counterparty's home country, usually at a U.S. bank's head
office in the United States. A claim on a Korean bank
booked at the U.S. head office or at the Singapore office
of a U.S. bank would in both cases be considered a crossborder claim. This type of claim is usually denominated in
U.S. dollars.
Local claims on foreign counterparties are those booked
in the local offices of the reporting bank, that is, offices
located in the country of the counterparty. A claim on a
Korean bank booked at the Seoul office of a U.S. bank is
considered a local claim.
Revaluation Gains on Foreign Exchange
and Derivatives Contracts
On the Country Exposure Report, off-balance-sheet claims
arising from foreign exchange and derivatives contracts
are recorded as revaluation gains.1 U.S. banks continually
determine the market value of these off-balance-sheet
contracts—"revaluing" them—to see if a positive or negative value results (based on movements in market factors or
other variables). If the contract has a positive market value
for the U.S. bank, that is considered a revaluation gain,
similar to a claim in that the counterparty owes a payment
to the U.S. bank.2 For example, if a U.S. bank enters into a
contract with a Latin American bank whereby the U.S. bank
benefits from a rise in the level of the Brazilian stock
market, a subsequent rise in the level of the stock market
would translate into a revaluation gain.3
1. Technically, revaluation gains are carried on the balance sheet, even
though they arise from off-balance-sheet contracts. For the purposes of this
explanation, revaluation gains will be categorized as off-balance-sheet
claims.
2. Generally, if the contract has a negative value, the resulting revaluation
loss is similar to a liability in that the U.S. bank owes a payment to the
foreign counterparty.
3. In March 1997, the FFIEC amended the Country Exposure Report in
two ways. For the first time, the FFIEC required the reporting of revaluation
gains on off-balance-sheet contracts (Schedule 2). Also, the definition for
local claims was altered so that instead of reporting local claims denominated
in local currency, banks report local country claims (and no longer local
currency claims). This change expanded the definition of local claims to
include those cases in which local transactions in foreign countries were
conducted in non-local currency. If a foreign country had a significant
Initial Claims versus Claims Adjusted for Guarantees
Some claims initially booked by U.S. banks may be partially or wholly guaranteed by a counterparty in another
foreign country (or in the United States). U.S. banks report
these initial claims plus any cases in which guarantees on
those claims would shift the ultimate risk from the U.S.
bank to another counterparty. For example, a U.S. bank
might extend a credit to a construction company domiciled
in Thailand, but the claim might actually be guaranteed by a
Japanese bank. After adjusting for the guarantee, the U.S.
bank would report a claim on the Japanese bank and not on
the Thai construction company. Aggregating data on claims
by country reveals, on a net basis, the extent to which a
country has extended guarantees on the initial claims of
U.S. banks. For example, Japanese counterparties might
guarantee a certain amount of claims that U.S. banks have
on other countries over and above the initial claims that U.S.
banks have on Japanese counterparties and, thus, as a group
would be net guarantors.
Example of Types of Claims
The following example shows how different types of claims
are classified: Bank A has initiated a $400 million loan to a
Taiwanese company that is booked in New York—a
$400 million cross-border claim. But if $100 million of that
claim is guaranteed by a German bank, the adjusted claim is
actually $300 million (the $100 million guaranteed by the
German bank is added to Bank A's claims on German
counterparties).
Bank A also has a $200 million loan outstanding to
another Taiwanese company that is booked in Bank A's
Taipei office—a $200 million local claim. These two
claims combined (cross-border and local), represent the
total on-balance-sheet claims of Bank A on Taiwanese
counterparties—$500 million. Finally, Bank A has also
entered into an off-balance-sheet contract, arranged in New
York, with a Taiwanese counterparty that has generated
cross-border revaluation gains of $50 million. Total claims
now add up to $550 million, which can be viewed as either
the sum of cross-border and local claims ($350 million plus
$200 million) or the sum of on-balance-sheet claims and
revaluation gains ($500 million plus $50 million).
portion of local transactions conducted in U.S. dollars, classifying claims
associated with those transactions as local rather than cross-border was
considered preferable because generally such claims were locally funded and
hence did not involve transfer risk. For most countries, this definitional
change had little effect on the amounts reported.
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
83
1. Claims of U.S. banks on foreign counterparties, 1997:Q2-1999:Q2
Millions of dollars except as noted
1997, quarter ending
1998, quarter ending
1999, quarter ending
Item
Percent
change,
June 1997
to
June 1999
June 30
All countries
Cross-border1
Local 2
Developed countries and
banking centers 3
Cross-border1
Local 2
Emerging-market countries4 .
Cross-border1
Local 2
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
679,613
422,493
257,120
708,216
435,861
272,355
710,674
446,619
264,055
704,884
427,900
276,984
719,889
438,186
281,703
728,628
440,663
287,965
781,784
467,733
314,051
767,707
461,028
306,679
755,653
460,797
294,856
11.2
9.1
14.7
484,503
314,819
169,684
195,110
107,674
87,436
500,508
316,780
183,728
207,708
119,081
88,627
507,950
330,785
177,165
202,724
115,834
86,890
501,105
319,972
181,133
203,779
107,928
95,851
522,162
332,947
189,215
197,727
105,239
92,488
543,236
348,202
195,034
185,392
92,461
92,931
596,662
376,186
220,476
185.122
91,547
93,575
581,699
371,175
210,524
186,008
89,853
96,155
572,427
372,743
199,684
183,226
88,054
95,172
18.1
18.4
17.7
-6.1
-18.2
8.8
28.7
29.3
28.5
28.9
27.5
25.4
23.7
24.2
24.2
25.5
27.2
25.9
25.2
24.0
21.0
19.6
19.5
19.1
34.0
32.5
32.9
34.6
32.8
32.3
29.8
31.4
32.3
MEMO:
Emerging-market claims
As a percentage of all claims .
Cross-border claims as a
percentage of all
cross-border claims
Local claims as a percentage
of all local claims
1. Cross-border claims are those booked outside the foreign counterparty's
home country, usually at a U.S. bank's head office in the United States.
2. Local claims are those booked in the U.S. bank's local offices in the foreign counterparty's country.
cent).5 Cross-border claims rose at about the same
pace as local claims and generally represented twothirds of total claims on developed countries and
banking centers over the period.
In contrast, combined cross-border and local claims
on counterparties in emerging-market countries fell
from $195 billion to $183 billion, a 6 percent drop. 6
Cross-border claims fell significantly over the period,
from $108 billion to $88 billion, while local claims
rose 9 percent, from $87 billion to $95 billion. By the
end of the period, cross-border claims had fallen to
less than half of total claims for emerging-market
countries. Notably, by June 1999, local claims represented a larger portion of total claims on emergingmarket countries (52 percent) than of total claims on
developed countries (35 percent).
Despite volatile conditions in many emerging markets in recent years, U.S. banks continued to maintain
one-quarter of their total foreign claims and one-third
of local claims on counterparties in these markets.
Although there was a significant retreat from some
particularly troubled emerging-market countries,
claims on counterparties in others actually increased.
These increases may have resulted because U.S.
banks view local business in many emerging markets
as a strategic growth area, largely as a result of recent
market liberalization and the increased openness
5. Banking centers are countries where international banks often
book assets not associated with economic activity in that country,
mostly for tax reasons or to establish a regional headquarters.
6. Table 2 contains the list of emerging-market countries.
3. See text note 5.
4. See table 2 for a list of emerging-market countries by region.
. . . Not applicable.
to U.S. and other developed-country banks in these
markets.
Claims on Emerging-Market
Counterparties
From June 1997 to June 1999, claims on counterparties in the countries directly affected by the two
major crises registered serious declines (table 2).
Total claims on the five troubled countries in Asia—
Indonesia, Korea, Malaysia, the Philippines, and
Thailand—fell from $55 billion in June 1997 to
$37 billion in June 1999, with claims on Indonesia
and Thailand both dropping more than 40 percent.
Total claims on counterparties in Eastern Europe fell
42 percent, mainly because of a decline in the value
of claims on counterparties in Russia, which plummeted from a peak of $9 billion in September 1997 to
$940 million in June 1999.
By contrast, total claims on Latin American counterparties rose 13 percent over the period, driven by
strong increases in Argentina and Mexico. Interestingly, while Latin American financial markets experienced considerable volatility over the period, U.S.
banks did not withdraw from that region. For several
decades, U.S. banks have maintained a sizable presence in Latin America, and two years of crisis in
other emerging markets appears to have solidified
that position. Thus, during the recent crisis period,
U.S. banks did not retreat from emerging markets
across the board, but only from certain regions; as a
84
Federal Reserve Bulletin • February 2000
2. Total claims of U.S. banks on emerging-market counterparties, by country, 1997:Q2-1999:Q2
Millions of dollars except as noted
1997, quarter ending
1998, quarter ending
1999, quarter ending
Region and country
Percent
change,
June 1997
to
June 1999
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
3,403
300
0
731
1
44
147
247
278
1
564
375
116
47
344
6
49
50
103
3,545
332
0
730
0
42
173
227
192
1
711
380
130
43
344
4
30
33
173
3,119
146
0
666
1
52
228
274
168
1
469
303
115
35
329
6
37
54
235
3,048
130
0
658
0
46
205
303
172
1
484
406
100
38
300
5
37
45
118
3,621
270
0
1,010
0
47
204
268
189
1
511
453
97
24
328
11
19
37
152
3,609
270
4
959
1
58
48
323
195
6
482
401
97
4
515
32
29
32
153
3,267
307
7
937
2
61
56
236
197
3
452
398
89
8
307
12
24
28
143
3,230
119
8
1,108
1
50
76
185
203
2
418
511
77
6
261
9
33
6
157
3,216
137
9
1,184
2
47
82
194
144
1
442
412
100
6
301
8
42
7
98
-5.5
-54.3
Asia-Pacific
China
India
Indonesia
Iran
Iraq
Israel
Jordan
Korea
Kuwait
Macao
Malaysia
Oman
Pakistan
Philippines
Qatar
Saudi Arabia
Sri Lanka
Syria
Taiwan
Thailand
United Arab Emirates
Other Asia-Pacific
86,691
3,437
5,136
7,015
1
48
1,359
166
23,397
474
83
7,536
145
2,062
6,023
121
1,526
53
5
13,307
10,845
1,265
2,687
85,623
3,565
5,036
8,711
29
48
1,292
193
22,939
490
113
6,952
297
2.075
5,247
139
1,588
80
5
12,596
10,357
1.139
2,732
87,032
3,488
5.069
9,024
0
48
1,157
168
25,270
737
108
6,700
245
2,123
4.899
169
1,821
50
5
12,821
9,350
1,014
2,766
78,304
2,978
5,221
6,673
0
45
1,295
160
22,192
631
107
5,954
238
2,037
4,794
147
1,873
71
5
12,413
8,072
1,115
2,283
73,044
2,967
5,196
5,040
1
48
1,338
157
20,202
675
103
5,290
285
1,808
4,659
168
2,075
75
0
12,667
6,874
975
2,441
70,042
2,644
5,518
4,370
3
48
1,313
167
18,211
662
99
5,373
269
1,768
4,557
185
3,150
79
2
12,175
6,616
1,079
1,754
69,004
2,340
5,427
4,222
0
48
1,417
205
17,335
533
94
5,919
291
1,504
4,822
148
2,984
58
0
12,883
5,567
1,456
1,751
68,713
2,453
5,655
4,120
0
48
1,960
190
18.006
570
89
6,457
341
1,528
4,151
157
2,831
59
0
12,085
5,123
1,287
1,603
68,729
3,340
5,790
4.065
0
49
1,846
203
17,027
541
94
6,456
299
1.366
4,518
222
2,567
68
1
12,561
4,770
1,271
1,675
-20.7
-2.8
12.7
-42.1
Eastern Europe
Bulgaria
Czech Republic
Hungary
Poland
Romania
Russia
Slovakia
Other Eastern Europe
12,589
326
1,399
932
2,007
256
6,773
343
553
15,983
391
1,575
1,158
2,017
294
9,307
418
823
11,880
203
1,330
946
1,925
178
6,156
435
707
14,152
228
1,535
1,464
2,403
222
7,266
432
602
14,299
123
1.648
1,568
3,260
222
6,621
506
351
9,136
112
1,890
1,444
2,720
225
1,822
521
402
8,517
135
1,719
1,373
3,064
221
1,047
488
470
7,536
117
1,573
1,399
2,465
168
881
465
468
7,321
164
1,383
1,368
2,475
131
940
481
379
-41.8
-49.7
-1.1
46.8
23.3
-48.8
-86.1
40.2
-31.5
92,427
17,018
202
30,330
10,566
4,813
120
401
1,068
461
326
118
222
19,486
17
353
1,289
169
1,530
3.374
102,557
20,422
184
32,335
11.178
4,909
133
451
1,321
401
437
136
249
21,020
21
421
1,611
286
1,604
3.438
100,693
20,033
262
33,399
11,705
5,024
140
484
905
457
370
152
218
18,801
32
461
1,893
397
1,667
3,723
108,275
22,571
276
37,252
11,692
4,389
165
479
949
442
387
169
236
20,088
15
472
2,053
379
1,698
3,817
106,763
22,869
356
35,652
11,731
5,198
176
467
912
443
446
194
253
19,069
28
438
2,146
376
1,711
3,623
102,605
22,405
562
29,940
11,115
4,832
174
559
867
438
723
181
246
22,108
35
445
1,912
401
1,936
3,141
104,334
23,620
569
27,551
10,889
5,078
238
549
956
376
634
199
256
24,145
32
484
2,121
404
2,128
3,344
106,529
24,792
559
27,770
10,771
4,957
239
469
732
395
509
180
227
26,079
22
552
2,126
275
1,959
3,188
103,960
23,975
574
28,815
8,614
4,651
274
531
656
435
483
169
249
25,227
15
456
2,319
329
1,953
3,325
12.5
40.9
184.2
-5.0
-18.5
-3.4
128.3
32.4
-38.6
-5.6
48.2
43.2
12.2
29.5
-11.8
29.2
79.9
94.7
27.6
-1.5
564
2.000
570
746
675
585
761
728
910
61.3
195,110
207,708
202,724
203,779
197,727
185,392
185,122
186,008
183,226
-6.1
Africa
Algeria
Cameroon
Egypt
Ethiopia
Gabon
Ghana
Ivory Coast
Kenya
Malawi
Morocco
Nigeria
Senegal
Sudan
Tunisia
Zaire
Zambia
Zimbabwe
Other Africa
Latin America and
Caribbean
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Jamaica
Mexico
Nicaragua
Paraguay
Peru
Trinidad and Tobago
Uruguay
Venezuela
Other Latin America and
Caribbean
All
. . . Not applicable.
62.0
100.0
6.8
-44.2
-21.5
-48.2
.0
-21.6
9.9
-13.8
-87.2
-12.5
33.3
-14.3
-86.0
-4.9
2.1
35.8
22.3
-27.2
14.1
13.3
-14.3
106.2
-33.8
-25.0
83.5
68.2
28.3
-80.0
-5.6
-56.0
.5
-37.7
1
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
3.
85
Distribution of total claims of U.S. banks on emerging-market counterparties, by region, 1997:Q2-1999:Q2
Percent
1997, quarter ending
1998, quarter ending
1999. quarter ending
Region
June 30
Sept. 30
100
Total
Africa
100
Mar.
31
100
1.7
1.7
Asia-Pacific
Troubled Asia1
Dec.
31
100
June 30
Sept. 30
100
Dec.
100
31
100
Mar.
31
100
June 30
100
1.5
1.5
1.8
1.9
1.8
1.7
1.8
36.9
21.3
37.8
21.1
37.3
20.5
36.9
20.4
37.5
20.1
44.4
28.1
41.2
26.1
42.9
27.3
38.4
23.4
6.5
3.5
7.7
4.5
5.9
3.0
6.9
3.6
7.2
3.3
4.9
1.0
4.6
.6
4.1
.5
4.0
.5
47.4
49.4
49.7
53.1
54.0
55.3
56.4
57.3
56.7
Eastern Europe
Russia
Latin America and Caribbean
NOTE. See notes to table 1. In this and the following tables, percentage disributions may not sum to 100 because of rounding.
1. The troubled Asian countries are Indonesia, Korea, Malaysia, the Philippines, and Thailand.
result, the relative share of claims among regions
shifted (table 3).
local presence in many emerging-market countries, in
part because of expections of higher profit margins
from banks' local business. 7 But establishing a profitable local business usually requires a long-term
commitment to local markets. As a result, banks
have an incentive to maintain local market share and
stand by local counterparties in downturns. In addition, severe exchange-rate depreciation often accompanies emerging-market crises, as occurred in Asia
and Russia, so that dollar-denominated claims (usually in the form of cross-border claims) become more
expensive for emerging-market counterparties to
repay, given the decline in local currency relative to
the U.S. dollar. As a result, U.S. banks may have been
forced to write off more of these cross-border claims
as losses, may have decided against extending new
claims, or may have done both. Thus, supervisors
have an interest in monitoring the growth of crossborder versus local claims because in a crisis, these
two types of claims might be affected differently.
Cross-Border versus Local Claims
Over the June 1997-June 1999 period, cross-border
claims on emerging-market counterparties fell markedly, while local claims rose somewhat. Cross-border
claims fell 18 percent as a result of declines in Asia
(36 percent) and Eastern Europe (60 percent). Unlike
Asia and Eastern Europe, cross-border claims on
Latin American counterparties rose slightly (table 4).
In the aggregate, local claims in emerging-market
countries grew 9 percent over the period (table 5).
Although local claims in Asia declined 6 percent
overall, only in Thailand did they fall consistently
over the period; in Korea, local claims actually rose
19 percent. The overall decrease in Asia was offset
by strong increases in Latin America, led by Argentina (72 percent) and Mexico (96 percent).
One explanation for the disparity between movements in cross-border and local claims is that U.S.
banks have made significant efforts to establish a
4.
7. A number of recently liberalized emerging markets are considered less competitive and may offer opportunities for higher profits.
Cross-border claims of U.S. banks on emerging-market counterparties, by region. 1997:Q2-1999:Q2
Millions of dollars except as noted
1997, quarter ending
1998, quarter ending
1999, quarter ending
Region
June 30
Total
Africa
Asia-Pacific
Troubled Asia1
Eastern Europe
Russia
Latin America and Caribbean .
NOTE. See notes to table 1.
Sept. 30
Dec.
107,674
119,081
115,834
1,661
1,979
1,543
43,092
30,018
45,783
32,803
47,839
34,658
8,916
5,359
11,494
7,202
7,664
4,434
54,005
59,825
58,788
31
Mar.
Percent
change,*
June 1997
to
June 1999
31
June 30
Sept. 30
Dec.
107,928
105,239
92,461
91,547
89,853
88,054
-18.2
1,413
1,719
1,369
1,411
1,210
1,193
-28.2
37,145
25,555
33,701
21,877
30,872
18,736
28,480
16,757
28,516
16,367
27,651
14,758
-35.8
-50.8
9,208
5,204
9,562
5,031
5,233
1,624
4,822
909
3,984
737
3,580
699
-59.8
-87.0
60,162
60,257
54,987
56,834
56,143
55,630
3.0
1. See note 1 to table 3.
31
Mar.
31
June 30
86
Federal Reserve Bulletin • February 2000
5. Local claims of U.S. banks on emerging-market counterparties, by region, 1997:Q2-1999:Q2
Millions of dollars except as noted
1997, quarter ending
1998, quarter ending
1999, quarter ending
Region
Percent
change,
June 1997
to
June 1999
June 30
Asia-Pacific
Troubled Asia1
Eastern Europe
Russia
Latin America and Caribbean .
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
88,627
86,890
95,851
92,488
92,931
93,575
96,155
95,172
8.8
1,742
Africa
Dec. 31
87,436
Total
Sept. 30
1,566
1,576
1,635
1,902
2,240
1,856
2,020
2,023
16.1
43,599
24,798
39,840
21,403
39,193
20,585
41,159
22,130
39,343
20,188
39,170
20,391
40,524
21,108
40,197
21,490
41,078
22,078
-5.8
-11.0
3,673
1,414
4,489
2,105
4,216
1,722
4,944
2,062
4,737
1,590
3,903
198
3,695
138
3,552
144
3,741
241
1.9
-83.0
38,422
42,732
41,905
48,113
46,506
47,618
47,500
50,386
48,330
25.8
NOTE. See notes to table 1.
1. See note 1 to table 3.
Revaluation Gains on Foreign Exchange and
Derivatives Contracts
Revaluation gains on foreign exchange and derivatives contracts during 1997-99 exhibited large swings
in value (table 6). For example, aggregate revaluation
gains jumped initially from $5 billion in June 1997 to
$17 billion in December 1997, but fell back to initial levels by June 1999. In troubled Asia, these value
swings were particularly pronounced: Year-end 1997
levels were nearly five times higher than levels just
six months earlier. At the height of the Asian crisis,
claims stemming from off-balance-sheet contracts
represented 22 percent of total claims on counterparties in troubled Asian countries but by June 1999 had
declined to only 4 percent of total claims (chart 1).
The drop occurred mostly for three reasons: The
underlying market factors recovered to some extent;
many of these contracts were short in duration; and
U.S. banks wrote off some of the contracts for which
payment seemed unlikely. Similar volatility in revaluation gains occurred in Eastern Europe, although
Over the past decade, off-balance-sheet transactions,
such as derivatives, have played an increasingly
larger role in U.S. banks' overall business. The value
of derivatives contracts is based on—or "derived"
from—the value of other financial or economic variables, such as an exchange rate or a stock market
index. When these underlying variables exhibit strong
swings, the value of derivatives contracts can be
subject to similar or even more volatile swings,
depending on the type of contract. As the Asian crisis
began to unfold in the second half of 1997, U.S.
banks' derivatives contracts with Asian counterparties rose in value, mostly because of sharp
declines in underlying variables in Asian economies. 8
8. For example, before the onset of the crisis a U.S. bank may have
entered into a contract with a Thai bank in which the value of the
contract depended on the level of the Thai baht relative to the U.S.
dollar. The contract may have been structured such that it would have
a positive value from the U.S. bank's perspective if the Thai baht fell
in value; any decline in the baht relative to the dollar would result in a
gain for the U.S. bank and a loss for the Thai bank.
6. Revaluation gains of U.S. banks on foreign exchange and derivatives contracts with emerging-market counterparties,
by region, 1997:Q2-1999:Q2
Millions of dollars except as noted
1998, quarter ending
1997, quarter ending
1999, quarter ending
Region
Percent
change,
June 1997
to
June 1999
June 30
Total
Africa
Asia-Pacific
Troubled Asia1
Eastern Europe
Russia
Latin America and Caribbean .
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
5,377
11,712
16,681
12,190
11,406
11,312
8,993
8,560
5,480
1.9
261
292
226
179
339
195
198
20
49
-81.2
7,846
6,457
6,869
5,237
5,816
4,167
4,769
3,394
2,616
1,593
-25.7
-41.4
3,519
2,717
7,794
6,983
13,551
12,306
8,996
7,775
346
75
1,282
898
492
71
597
144
709
203
965
157
601
74
387
14
207
0
-40.2
-100.0
1,251
2,344
2,412
2,418
2,512
3,283
2,378
3,384
2,608
108.5
NOTE. See notes to table 1. See box "Types of Claims on EmergingMarket Counterparties," for a discussion of revaluation gains.
1. See note 1 to table 3.
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
1. Revaluation gains of U.S. banks on foreign exchange and
derivatives contracts with counterparties in troubled Asia
as a percentage of total claims on those counterparties,
1997:Q2-1999:Q2
Percent
—
—
20
—
—
15
—
10
—
—
\
1
i
i
1
1997
1
!
1998
1
1
—
5
1
1999
NOTE. Data are quarterly. Revaluation gains represent the market value of
foreign exchange and derivatives contracts. If the contract has a positive market
value for the U.S. bank, that amount is considered a revaluation gain, similar to a
claim in that the counterparty owes a payment to the U.S. bank.
The troubled Asian countries are Indonesia, Korea, Malaysia, the Philippines,
and Thailand.
quarterly swings were not as extreme as those in
Asia. 9 Revaluation gains as a percentage of total
claims reached 10 percent for claims in Eastern
Europe in September 1998, the peak of the Russian
crisis.
Revaluation gains on contracts with counterparties
in Latin America doubled over the period—to nearly
$3 billion. But peak levels were only one-quarter of
the peak levels reached in Asia, reflecting in part the
relatively less extreme movements in economic variables in Latin America. In addition, U.S. banks were
not as likely to engage in less-traditional, off-balancesheet activities (such as derivatives contracts) with
Latin American counterparties as they were with
counterparties in other regions. 10
Large market declines during the Asian crisis generated rapid increases in counterparty credit risk for
U.S. banks. Essentially, U.S. banks were seeing the
market value of their contracts increase, but, in certain cases, so much so that the ability of some Asian
counterparties to make payments, given their large
losing positions in some contracts, came into question. These contracts are generally marked to market
9. Contracts with Russian counterparties changed drastically in
value in August 1998 but by September had largely been charged off.
10. The crisis in Mexico and Latin America in 1994-95 may have
led U.S. banks to be more cautious about their derivatives business
with Latin American counterparties. In that crisis, a sharp devaluation
of the Mexican peso generated large derivatives (and other) losses
for Latin American counterparties of U.S. banks. In contrast, before
1997 many U.S. banks, and banks from other countries as well, may
have been less concerned about potential losses on contracts with
Asian counterparties.
87
on a daily basis, so that losses create additional pressure on foreign counterparties in the midst of a crisis.
Banking supervisors view the increased importance of revaluation gains during the past several
years as evidence of change in the nature of country
exposure. The increased use of, and broader markedto-market reporting of, derivatives contracts has highlighted the way that market risk and counterparty
credit risk interact. In particular, counterparty credit
risk can be negatively correlated with market risk,
so that a positive market move—from a U.S. bank's
perspective—could quickly increase counterparty
credit risk. One of the important lessons from the
Asian crisis is that a U.S. bank could have completely
hedged its market risk and still faced significant
counterparty credit risk if a change in market prices
affected the ability of the foreign counterparty to pay.
In the Russian crisis, some U.S. banks' ability to
hedge local currency exposure broke down because
Russian banks—suffering heavy losses from the ruble
depreciation—were unable or unwilling to make payments owed to U.S. banks.
The fast-moving nature of derivatives markets
means that exposure can change more quickly than in
the past. Thus banks must rely on even better riskmanagement techniques to ensure that they can manage latent counterparty credit risk that might arise
rapidly. In turn, supervisors must caution banks when
risk-management techniques do not appear to be fully
capturing the risks generated by derivatives contracts
with emerging-market counterparties.
The Asian and Russian crises provided lessons for
internationally active U.S. banks, and to some extent
the banks have been able to apply what they learned.
For example, a number of banks are integrating their
market risk and counterparty credit risk functions to
better manage cases in which one risk arises from the
other. In addition, more institutions are stress testing
their emerging-market portfolios—in effect "shocking" their current portfolios with a range of possible
outcomes. 11 In the Asian crisis, more thorough stress
testing before the events in 1997 might have provided
the banks with some warning about the negative
effects of severe exchange-rate depreciations.
Distribution by Counterparty Sector
Starting in June 1997, cross-border claims on counterparties in all emerging-market countries were dis-
11. For example, a U.S. bank might revalue its existing portfolio
based on a hypothetical increase in interest rates or a hypothetical
decline in the exchange rate.
88
Federal Reserve Bulletin • February 2000
tributed evenly among banks, the public sector, and
nonbank private counterparties. 12 By June 1999, the
distribution had shifted away from banks and toward
the nonbank private sector. Although claims on banks
represented 33 percent of all cross-border claims
in June 1997, the share had fallen to 25 percent by
June 1999. At the same time, the share of claims
on the nonbank sector rose from 36 percent to 42 percent. This trend reflects to some extent the difficulties
experienced by certain emerging-market banks over
the period.
The shift in the distribution of claims among counterparty sectors varied across regions. Much of the
shift in aggregate numbers occurred because of
changes in cross-border claims on Asian counterparties. In June 1997, banks represented 50 percent of
the total for Asia, the nonbank private sector 41 percent, and the public sector 9 percent. By June 1999,
the distribution in Asia had shifted toward the public
sector and away from banks (table 7). A large number of Asian banks were hindered in their ability to
make good on liabilities because of their financial
difficulties during the Asian crisis. As a result, U.S.
banks wrote off some of their claims on Asian counterparties or at least did not renew them once payment
was received. A second factor affecting the aggregate
sectoral distribution was the relative increase in
claims on Latin American counterparties (as discussed previously). The cross-border claims on Latin
American counterparties were distributed more
between the public sector and nonbank private sector,
so that this region's increased share of the aggregate contributed to the overall sectoral pattern
over the two years. In Russia, the precipitous fall in
cross-border claims was driven largely by a 92 percent decline in claims on the public sector, representing a default by the Russian government on its
foreign-currency bonds in August and September
1998.
12. Breakdowns by counterparty sector are not reported for local
claims; they are available only for cross-border claims.
13. Maturity data are based on initial claims before adjustments for
guarantees and do not include revaluation gains.
7.
Distribution by Maturity
On the whole, the maturity distribution of crossborder claims on counterparties in emerging-market
countries indicates the continued prevalence of shortterm credits. 13 For example, the share of cross-border
claims with a maturity of one year or less held steady
over the period, accounting for two-thirds of crossborder claims. In June 1997, short-term claims on
Asian counterparties accounted for about 75 percent
of total cross-border claims on counterparties in that
region, with the share falling to 65 percent after the
crisis. At the beginning of the period, U.S. banks held
many short-term claims on Asian banks but, in some
instances, did not roll over extensions of credit during and immediately after the crisis.
In Latin America, the maturity distribution shifted
slightly toward the short term, but the level of shortterm claims remained below that in emerging Asia.
The lower percentage of short-term claims in Latin
America may have resulted from a greater share
Distribution of cross-border claims of U.S. banks on emerging-market counterparties, by region and counterparty sector,
1997:Q2-1999:Q2
Percent
1998, quarter ending
1997, quarter ending
1999, quarter ending
Region and counterparty sector
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Africa
Banks
Public sector
Nonbank private sector
20.0
72.7
7.2
13.6
67.6
18.7
16.7
69.1
14.3
19.3
69.2
11.5
18.5
65.7
15.8
20.7
64.0
15.3
25.8
58.7
15.5
25.1
55.3
19.6
26.2
52.3
21.5
Asia-Pacific
Banks
Public sector
Nonbank private sector
49.9
8.9
41.2
49.9
10.2
39.9
48.5
11.1
40.4
42.5
13.8
43.6
42.8
15.8
41.4
39.1
19.0
41.9
40.4
19.7
40.0
37.6
19.5
42.9
35.2
22.8
42.0
Eastern Europe
Banks
Public sector
Nonbank private sector
11.9
77.6
10.6
9.4
82.1
8.4
13.3
72.8
14.0
13.8
72.6
13.7
17.1
68.4
14.5
23.1
52.5
24.4
22.4
49.9
27.7
24.9
48.8
26.3
17.6
54.8
27.7
Latin America and Caribbean
Banks
Public sector
Nonbank private sector
22.2
41.4
36.5
21.4
40.6
38.0
24.7
35.1
40.2
25.1
32.8
42.2
26.3
30.5
43.2
26.3
26.7
47.0
21.2
33.6
45.3
20.4
34.3
45.3
20.3
36.5
43.2
NOTE. See notes to table 1.
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
of loans to the public sector, which generally have a
longer maturity.
The share of short-term claims in cross-border
claims on Eastern Europe fell from a peak of 78 percent in June 1998 to 62 percent in June 1999. By this
time, most of the short-term speculative positions
in Russian government debt had been closed out. In
general, the prevalence of short-term claims indicates
that U.S. banks were cautious about extending maturities of claims on emerging-market counterparties in
order to have the ability to reduce exposure quickly if
a crisis developed.
89
chaebols encountered financial difficulties, so that
by 1998 counterparties in Asia, as a group, were net
receivers of credit guarantees on initial claims.
Regarding other regions, Latin American counterparties were net receivers of credit guarantees over
the entire period, with the amounts ranging between
15 percent and 18 percent of initial claims. The most
drastic increase occurred in Eastern Europe, where
by June 1999, nearly half of all initial claims were
guaranteed. 16
Claims in Relation to Total
and to Tier 1 Capital
Assets
Initial Claims and Adjustments for Guarantees
As noted previously, U.S. banks report initial crossborder claims before adjustments for guarantees.
Comparing initial claims and adjusted claims shows
the extent to which the ultimate risk on those claims
is being borne by counterparties outside the country
of the initial borrower. 14 Subtracting claims adjusted
for guarantees from initial claims provides a figure
for net credit guarantees received (if positive) or net
credit guarantees extended by counterparties in those
countries (if negative) on initial claims held by U.S.
banks. In the aggregate, for claims initiated by U.S.
banks, counterparties in emerging-market countries
were net receivers of guarantees over the period,
meaning that they received more guarantees than
they offered. In addition, the percentage of initial
claims that received guarantees rose from 10 percent
in 1997 to 18 percent in 1999. Not surprisingly, these
data indicate that initial claims on emerging-market
counterparties held by U.S. banks were sometimes
protected by guarantees from counterparties in developed countries or from international development
banks. In fact, U.S. banks may have sought greater
protection on those initial claims, given the crises in
emerging markets.
Interestingly, in 1997 counterparties in emerging
Asia were net granters of credit guarantees on the
initial claims of U.S. banks because of roughly $3 billion in guarantees extended by Korean counterparties, particularly large Korean conglomerates, or
chaebols.15 That trend in Asia reversed as Korean
14. For example, if a U.S. bank held a claim on a Chinese firm in
the amount of $100 million, and if $20 million of that claim were
guaranteed by a French bank, then initial claims on China would be
$100 million, adjusted claims on China would be $80 million, and
adjusted claims on France would increase $20 million.
15. Guarantees extended by Korean counterparties were not
restricted to claims on other Korean counterparties; some guarantees
applied to initial claims held by U.S banks on other counterparties in
emerging Asia.
Examined in isolation, the outstanding claims on
emerging-market counterparties held by U.S. banks
give only a partial view of the relative importance of
emerging-market activity for banks. For a more complete picture, supervisors must examine claims as a
percentage of assets and as a percentage of capital.
Claims as a percentage of capital, in particular, provide supervisors with an initial assessment of U.S.
banks' ability to weather the potentially volatile
nature of emerging markets.
Over the two-year period, emerging-market claims
as a percentage of U.S. bank assets (for those banks
reporting country exposure data) fell from 6.7 percent
of total assets to 4.5 percent, a result more of the
overall increase in total assets than of the decline in
claims (table 8). For example, even though total
claims on counterparties in Latin America registered
double-digit growth, that growth rate was outpaced
by that of the reporting banks' total assets, thus
driving the percentage of claims-to-assets for that
region lower. The decline in this percentage for Asian
counterparties, for which claims fell, was even more
dramatic.
Total claims as a percentage of tier 1 capital peaked
in September 1997 at 105 percent (table 8).17 However, by June 1999 that percentage had fallen to
72 percent, a decline stemming mostly from a significant increase in tier 1 capital (chart 2). Total claims
on Latin American counterparties as a percentage of
tier 1 capital fell slightly over the period, but never
16. U.S. banks are increasingly involved with credit derivatives,
which transfer counterparty credit risk to a third party. As the credit
derivatives market grows, there may be many more cases in which
supervisors will want to examine shifts in counterparty credit risk
from the initial obligor to a third party, similar to the way guarantees
transfer risk.
17. Tier 1 capital generally consists of common stockholders'
equity, noncumulative perpetual preferred stock and any related surplus, and minority interests in equity capital accounts of consolidated
subsidiaries
90
Federal Reserve Bulletin • February 2000
8. Total claims of U.S. banks on emerging-market counterparties as a percentage of reporting banks' assets
and reporting banks' tier 1 capital, 1997:Q2-1999:Q2
1998, quarter ending
1997, quarter ending
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1999, quarter ending
Dec. 31
Mar. 31
June 30
Percentage of reporting banks' total assets
Total emerging-market claims
6.7
6.8
6.2
6.0
5.8
5.3
4.8
4.8
4.5
Africa
Asia-Pacific
Troubled Asia1
Eastern Europe
Russia
Latin America and Caribbean
.1
3.0
1.9
.4
.2
3.2
.1
2.8
1.8
.5
.3
3.3
.1
2.7
1.7
.4
.2
3.1
.1
2.3
1.4
.4
.2
3.2
.1
2.1
1.2
.4
.2
3.1
.1
2.0
1.1
.3
.1
2.9
.1
1.8
1.0
.2
.0
2.7
.1
1.8
1.0
.2
.0
2.7
.1
1.7
.9
.2
.0
2.6
Percentage of reporting banks' tier 1 capital
102.1
Africa
Asia-Pacific
Troubled Asia1
Eastern Europe
Russia
Latin America and Caribbean
104.6
97.0
93.9
88.5
80.3
75.7
73.2
72 3
1.8
45.4
28.7
6.6
3.5
48.4
Total emerging-market claims
1.8
43.1
27.3
8.0
4.7
51.6
1.5
41.6
26.4
5.7
2.9
48.2
1.4
36.1
22.0
6.5
3.3
49.9
1.6
32.7
18.8
6.4
3.0
47.8
1.6
30.3
17.0
4.0
.8
44.5
1.3
28.2
15.5
3.5
.4
42.7
1.3
27.0
14.9
3.0
.3
41.9
1.3
27.1
14.5
2.9
.4
41.0
NOTE. For a definition of tier 1 capital, see text note 17.
1. See note 1 to table 3.
below 41 percent. In contrast, total claims on Asian
counterparties fell from 45 percent of tier 1 capital to
27 percent. Total claims on Eastern European counterparties peaked at 8 percent of tier 1 capital about
one year before the onset of the crisis in Russia.
Generally, internationally active U.S. banks reduced
their exposure to emerging markets while bolstering
their capital.
As discussed earlier, supervisors cannot assess
country risk by simply looking at the absolute levels
of claims. Claims-to-capital figures serve as a preliminary indicator of how much cushion U.S. banks
might have available to absorb potential losses in
2. U.S. banks' emerging-market claims compared with
tier 1 capital, 1997:Q2-1999:Q2
Billions of dollars
1997
1998
1999
NOTE. Tier 1 capital consists of common stockholders' equity, noncumulative perpetual preferred stock and any related surplus, and minority
interests in equity capital accounts of consolidated subsidiaries. Tier 1 capital
data cover only banks that file the Country Exposure Report.
their emerging-market portfolios. When viewed at
the level of the individual institution, these figures
allow supervisors to recognize those institutions with
high exposure relative to capital. Banks identified
as having elevated claims-to-capital ratios receive
greater supervisory scrutiny in the area of country
risk. For example, supervisors would focus on a bank
with a claims-to-capital ratio of more than 100 percent, even if the amount of claims was small. But
claims-to-capital ratios, on their own, might not
always reflect the underlying riskiness of the claims
or the ability of the banks to manage that risk,
so supervisors conduct assessments of the riskmanagement systems of individual banks to achieve a
more accurate picture of how country risk is affecting
those institutions.
For the most part, U.S. banks did not suffer large
losses stemming directly from emerging-market crises in recent years. When banks did suffer losses,
they were generally able to offset them with earnings
from other business segments. 18 In fact, the ability of
U.S. banks to charge their losses in Asia and Russia
against income—rather than drawing down their
capital—indicates both their high levels of overall
profitability during this period and their low levels of
exposure. It is possible, however, that a similar period
of international crisis coinciding with a domestic
downturn in the United States might have put pressure on U.S. banks' capital positions.
18. See Antulio N. Bomfim and William R. Nelson, "Profits and
Balance Sheet Developments at U.S. Commercial Banks in 1998,"
Federal Reserve Bulletin, vol. 85 (June 1999), pp. 3 6 9 - 9 5 .
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
Concentrations
among Reporting
Banks
EMERGING-MARKET EXPOSURE OF BANKS
FROM OTHER DEVELOPED COUNTRIES
The discussion thus far has centered on U.S. banks in
the aggregate. However, because most of the claims
on emerging-market counterparties are concentrated
at a small number of U.S. banks, a smaller capital
base is available to absorb their potential losses.
Serious country exposure difficulties at just a few
of these banks would have the potential to trigger
broader problems within the entire U.S. banking system. In general, supervisors focus on the riskiness of
any U.S. bank's foreign claims but are particularly
sensitive to the implications of exposure at large
banks.
The U.S. banks that report in the "Money Center
Banks" category on the Country Exposure Report
generally represent those with the largest claims on
counterparties in emerging-market countries. 19 Over
the 1997-99 period, money center banks consistently
accounted for about 80 percent of total claims on
counterparties in emerging markets and more than
40 percent of the total assets of all U.S. banks.
For the money center banks, the share of their
emerging-market claims in total assets fell from
13 percent in 1997 to 6 percent in 1999 (table 9).
Commensurate with that decline was a decrease
in emerging-market claims as a percentage of tier 1
capital, from a peak of 232 percent in 1997 to
113 percent in 1999. Notably, the decrease in this
percentage stemmed largely from an 88 percent
increase in tier 1 capital.
Analyzing the claims-to-capital ratio for money
center banks is especially important, given the concentration of claims on emerging-market counterparties at these banks. Whenever claims-to-capital
ratios are identified as particularly high, supervisors
may conduct a special analysis of the selected bank's
ability to manage country risk in the context of
broader risk-management functions.
19. Over time, this group has varied in size from six to nine banks
(currently six). See the Country Exposure Lending Survey for details.
Briefly comparing U.S. banks' exposure to emergingmarket countries over 1997-99 with the exposure of
banks from other developed countries provides some
overall context for assessing the relative role played
by U.S. banks. U.S. banks, along with banks from
other developed countries, report their country exposure data to the Bank for International Settlements
(BIS), which then compiles data for all of its members and reports the consolidated results. 20
From June 1997 to June 1999, BIS reporting bank
claims on emerging-market counterparties fell in
the aggregate from $829 billion to $782 billion
(table 10). Claims on Asian counterparties fell 20 percent, while claims on Latin American and African
counterparties rose. By June 1999, claims on Asia
still represented the largest share of total emergingmarket claims, but by a smaller margin because of an
increase in the share of claims on Latin American
counterparties. Compared with U.S. bank data on
emerging-market claims, the shifts for Asia and Latin
America were relatively similar; however, claims
on Eastern European counterparties fell only slightly
for all BIS reporting banks, and claims on African
counterparties increased almost one-third.
BIS Reporting Bank Claims
by Country of Origin
In June 1997, claims held by U.S. banks accounted
for 13 percent of the cross-border claims on
emerging-market counterparties held by all BIS
20. These data represent cross-border claims from individual country submissions of claims on non-BIS member countries. The data are
consolidated at the BIS to eliminate any double counting and do not
include revaluation gains on off-balance-sheet contracts or adjustments for guarantees (for details on BIS data, see www.bis.org). BIS
member countries include the Group of Ten, plus Austria, Denmark,
Finland, Ireland, Luxembourg, Norway, and Spain. Because the BIS
does not collect capital figures for these countries, claims-to-capital
ratios cannot be calculated.
9. Total claims of U.S. money center banks on emerging-market counterparties as a percentage of their total assets
and tier 1 capital 1997:Q2-1999:Q2
1997, quarter ending
1998, quarter ending
1999, quarter ending
Item
June 30
Total emerging-market claims
as a percentage of total assets
Total emerging-market claims
as a percentage of tier 1 capital . . .
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
13.1
13.4
12.3
11.9
11.1
8.4
7.2
6.9
6.3
225.7
232.2
205.9
204.4
190.0
144.4
121.8
113.0
112.6
NOTE. For a definition of tier 1 capital, see text note 17.
Sept. 30
91
92
10.
Federal Reserve Bulletin • February 2000
Distribution o f total c l a i m s o f B I S reporting b a n k s o n e m e r g i n g - m a r k e t counterparties, b y r e g i o n ,
1997, quarter ending
1999,
quarter ending
1998, quarter ending
Region
June 30
Dec. 31
June 30
1997:Q2-1999:Q2
Dec. 31
June 30
Total claims on emerging-market counterparties (millions of dollars)
All emerging-market countries
Africa
Asia-Pacific
Eastern Europe
Latin America and Caribbean
828.567
34,179
430.366
116,188
247,834
862,147
35,637
423,683
122,445
280,382
835,606
41,536
371,489
131,561
291,020
798,184
41,911
351,268
121,619
283,386
781,971
45,028
344,237
110,988
281,718
Percent
change,
June 1997
to
June 1999
-5.6
31.7
-20.0
-4.5
13.7
Distribution of cross-border claims among emerging-market regions (percent)
100
4.1
51.9
14.0
29.9
All emerging-market countries .
Africa
Asia-Pacific
Eastern Europe
Latin America and Caribbean
100
4.1
49.1
14.2
32.5
100
5.0
44.5
15.7
34.8
100
5.3
44.0
15.2
35.5
100
5.8
44.0
14.2
36.0
. Not applicable.
reporting banks (table 11). Banks from Japan had the
highest share, with Germany a close second. Over the
two-year period, the share held by U.S. banks fell
slightly. The share of Japan's banks dropped significantly. Japanese banks were facing considerable
domestic financial difficulties over this period, which
contributed to their retrenchment in emerging markets. Most European reporting banks increased their
relative positions.
BIS Reporting Bank
by Emerging-Market
Claims
Region
A regional breakdown indicates that the relative
shares were not uniform by emerging-market regions.
11.
Japanese banks held nearly 30 percent of all claims
on Asian counterparties in June 1997, but that share
had fallen to 23 percent by June 1999. That decline
can be compared with a slight increase in the portion
of claims on Asian counterparties held by European
banks (nearly 50 percent), while the share held by
U.S. banks remained relatively steady (7 percent). In
Latin America, U.S. banks held a large share (25 percent), while European banks, as a group, expanded
their share of claims to more than 50 percent, led by
a rise in the share of Spanish banks. German and
other European banks accounted for about two-thirds
of all BIS reporting bank claims on Eastern Europe,
while the share held by U.S. banks fell by half, to
5 percent.
Distribution o f c r o s s - b o r d e r c l a i m s o f B I S reporting banks o n e m e r g i n g - m a r k e t counterparties, b y l e n d i n g country,
1997:Q2-1999:Q2
1997, quarter ending
1999,
quarter ending
1998, quarter ending
Country
June 30
Dec. 31
June 30
Dec. 31
June 30
Total cross-border claims on emerging-market counterparties (millions of dollars)
All reporting banks
United States ..
Japan
Germany
France
United Kingdom
Other Europe ..
All others
828,567
109,462
146,092
139,626
82,824
55,260
130,830
164,473
862,147
107,770
137,563
147,911
95,683
63,607
149,710
159,904
835.606
103,685
120,797
147,484
92,090
65,728
160,941
144,881
798,184
94,299
108,643
154,347
87,750
64,504
159,250
129,392
781,971
96,539
94,050
155,079
91,054
58,141
149,168
137,940
Percent
change,
June 1997
to
June 1999
-5.6
-11.8
-35.6
11.1
9.9
5.2
14.0
-16.1
Distribution of cross-border claims amoung reporting banks from BIS-member countries (percent)
All reporting banks
United States ..
Japan
Germany
France
United Kingdom
Other Europe ...
All others
100
13.2
17.6
16.9
10.0
6.7
15.8
19.9
100
12.5
16.0
17.2
11.1
7.4
17.4
18.5
NOTE. Data in this table do not include adjustments for guarantees; as a
result, data for U.S. banks may differ from data reported in earlier tables.
100
12.4
14.5
17.6
100
11.8
13.6
19.3
7.9
19.3
17.3
8.1
20.0
16.2
11.0
11.0
. . Not applicable.
100
12.3
12.0
19.8
11.6
7.4
19.1
17.6
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
Overall, the BIS data indicate that U.S. banks'
general reduction in claims on emerging-market
counterparties contrasted with the rise in claims held
by most European banks. Banks from European
countries appear to be expanding cross-border lending to emerging-market counterparties, despite the
events of recent years, whereas U.S. banks have
focused their efforts more on Latin America. Japanese banks have had little choice but to scale back
their emerging-market business because of capital
pressures.
U.S. COUNTRY EXPOSURE DATA BEFORE
1997
Supervisors still draw on valuable lessons from the
past in evaluating recent country exposure data.
While it is not within the scope of this article to
conduct an extensive analysis of country exposure
data over several decades, a brief examination of
trends since 1982 provides a necessary context for
more accurate analysis of the 1997-99 period. 21 In
particular, drawing comparisons with data from crises
in the 1980s, in which U.S. banks suffered sizable losses on their developing-country portfolios, is
useful. 22
Despite some changes in how claims are reported,
data from before and after 1997 are relatively comparable. 23 Therefore, it is possible to view the
1997-99 period in the context of broader trends in
country exposure, including claims on emergingmarket counterparties.
Cross-Border
93
underwent tremendous growth from 1982 to
1998—an astounding 566 percent. The increasing
importance of local claims during the 1997-99 period
is thus part of a long-term trend. In some sense, this
trend reflects the market penetration achieved by U.S.
banks in local banking markets during the past
decade. In addition, the relatively larger portion of
local claims means that the transfer risk element of
country risk is lessened insofar as more claims are
denominated and funded in local currency. 24 However, the counterparty credit risk element of country
exposure may have increased because in the recent
period, fewer claims have an explicit or implicit
public-sector guarantee than in the period before
1997.25
Distribution by Counterparty
1982 to 1998
Sector,
The composition, not just the levels, of emergingmarket claims changed from the 1980s to the late
1990s, particularly the distribution of claims by counterparty sector.26 In 1986 and 1990, cross-border
claims on the public sector represented one-half of
total cross-border claims. Soon thereafter, the shift
away from public-sector lending began; by 1998 the
distribution had changed markedly, with claims on
the nonbank private sector at nearly one-half of
total claims. Although there was a general shift
toward the nonbank private sector, claims on publicsector counterparties in Latin America and claims on
banks in Asia remained significant.
and Local Claims, 1982 to 1998
Distribution
by Maturity,
1982 to 1998
In examining country exposure data for selected years
from 1982 to 1998, the first item of interest is that
total claims on counterparties in emerging-market
countries—in absolute terms—were nearly as high
in the 1980s as in 1998, with cross-border claims
in 1982 and 1986 actually exceeding cross-border
claims in 1998 (table 12). However, local claims
The maturity distribution has also shifted since the
early 1980s, with more claims classified as shortterm (one year or less). In 1982, short-term claims
represented one-half of all claims but fell below
50 percent in 1986 and 1990. By 1994, short-term
claims had risen, to 60 percent of total claims. This
21. Data from 1998 are included to provide an overlapping comparison (at intervals of four years) of earlier data with the 1997-99
period.
22. U.S. banks began reporting on the Country Exposure Report in
1978, so the data series captures the entire period of crisis in developing countries during the 1980s.
23. As discussed earlier, data on revaluation gains were not collected before June 1997. In addition, the definition of local claims was
altered slightly in June 1997. However, cross-border measures are
nearly identical before and after June 1997, and the definitional
change in local claims affects only a few countries. (See note 3 in box
"Types of Claims.")
24. Transfer risk applies to cross-border claims and any local
claims not funded by local liabilities. For the most part, growth in
local liabilities has kept pace with growth in local claims.
25. The significance of this development became clear in both the
Asian and the Russian crises, as expectations that local country governments would provide guarantees for banks and nonbank companies
were not realized.
26. The same methodology used to examine data from the 1997-99
period fits this broader comparison as well, except that cross-border
revaluation gains were not reported before 1997 and thus are excluded
from the 1998 figures to ensure comparability.
94
Federal Reserve Bulletin • February 2000
fluctuation in short-term claims as a percentage
of total claims may have been directly tied to
the developing-country debt crisis. Specifically, as
emerging-market counterparties encountered difficulty in repaying debts, U.S. banks closed out many
of their short positions and ceased to roll over short-
12. Claims of U.S. banks on foreign counterparties, by type of claim and region, selected years, 1982-98
Item
1982
1986
1990
1994
1998
Total claims (millions of dollars)
Developed countries and banking centers
278,948
286,671
269,235
280,718
466,965
Cross-border
Local
213,478
65,470
185,713
100,958
152,314
116,921
160,218
120,500
259.314
207,651
Emerging markets
150,925
132,988
85,281
122,724
176,129
Cross-border
Local
Africa
Cross-border
Local
Asia-Pacific
Cross-border
Local
Eastern Europe
Cross-border
Local
Latin America
Cross-border
Local
137,040
13,885
7,612
7,119
493
46,614
40,558
6,056
5,876
5,876
0
90,823
83,487
7,336
116,072
16,916
4,110
3,662
448
36,581
28,190
8,391
3,710
3,585
125
88,587
80,635
7,952
61,938
23,343
2,344
1,898
446
31,919
18,204
13,715
2,086
1.830
256
48,932
40,006
8,926
79,876
42,848
1,682
1,131
551
51,199
27,237
23,962
4,551
2,424
2,127
65,292
49,084
16,208
83,629
92.500
3,069
1,213
1,856
63.188
23,386
39.802
7,916
4,292
3,624
101,956
54,738
47,218
Total claims as a percentage of total assets
Developed countries and banking centers
22.1
17.8
14.4
12.8
11.5
Cross-border
Local
16.9
5.2
11.5
6.3
8.1
6.2
7.3
5.5
6.4
5.1
Emerging markets
12.0
8.2
4.5
5.6
4.3
Cross-border
Local
Africa
Cross-border
Local
Asia-Pacific
Cross-border
Local
Eastern Europe
Cross-border
Local
Latin America
Cross-border
Local
10.9
1.1
.6
.6
.0
3.7
3.2
.5
.5
.5
.0
7.2
6.6
.6
7.2
1.0
.3
.2
.0
2.3
1.7
.5
.2
.2
.0
5.5
5.0
.5
3.3
1.2
.1
.1
.0
1.7
1.0
.7
.1
.1
.0
2.6
2.1
.5
3.6
2.0
.1
.1
.0
2.3
1.2
1.1
.2
.1
.1
3.0
2.2
.7
2.1
2.3
.1
.0
.0
1.6
.6
1.0
.2
.1
.1
2.5
1.4
1.2
Total claims as a percentage of total capital
Developed countries and banking centers
395.1
246.7
166.5
125.3
110.2
Cross-border
Local
302.4
92.7
159.8
86.9
94.2
72.3
71.5
53.8
61.2
49.0
Emerging markets
213.8
114.4
52.7
54.8
41.6
Cross-border
Local
Africa
Cross-border
Local
Asia-Pacific
Cross-border
Local
Eastern Europe
Cross-border
Local
Latin America
Cross-border
Local
194.1
19.7
10.8
10.1
.7
66.0
57.4
8.6
8.3
8.3
.0
128.6
118.3
10.4
99.9
14.6
3.5
3.2
.4
31.5
24.3
7.2
3.2
3.1
.1
76.2
69.4
6.8
38.3
14.4
1.4
1.2
.3
19.7
11.3
8.5
1.3
1.1
.2
30.3
24.7
5.5
35.7
19.1
.8
.5
.2
22.9
12.2
10.7
2.0
1.1
.9
29.2
21.9
7.2
19.7
21.8
.7
.3
.4
14.9
5.5
9.4
1.9
1.0
.9
24.1
12.9
11.1
NOTE. In this table, figures for claims as a percentage of total assets and
for claims as a percentage of total capital in 1998 are not consistent with
1998 figures in table 8 for two reasons: The figures in this table do not include
revaluation gains (see text note 26); also total capital is used in this table instead
of tier 1 capital (see text note 28).
U.S. Bank Exposure to Emerging-Market Countries during Recent Financial Crises
term claims, leaving mostly longer-term claims. 27
So the percentage of short-term claims in the total
fell. U.S. banks later became more comfortable
extending new credits to emerging markets, starting
with short-term claims. The resumption of short-term
lending was perhaps an indicator of U.S. banks'
changed attitude toward lending to emerging-market
counterparties.
Claims Relative
1982 to 1998
to Total Assets and
3. U.S. banks' emerging-market claims compared with
total capital, selected years, 1982-98
Billions of dollars
Emerging-market claims
Total capital
Capital,
More revealing comparisons emerge from an examination of claims as a percentage of total assets and
claims as a percentage of capital.28 Claims on counterparties in emerging-market countries as a percentage of total assets were as high as 12 percent in 1982
but fell sharply, as banks reduced their emergingmarket portfolios during the debt crisis of the 1980s.
Claims on emerging-market counterparties as a
percentage of total capital in 1982 were well above
200 percent, much larger than the 42 percent
recorded in 1998.
The fallout from the debt crisis of the 1980s caused
the major downward shift in claims as a percentage
of total assets and claims as a percentage of capital.
By 1990, US. banks had lowered their claims-tocapital ratios, primarily as a result of the decrease in
total claims as U.S. banks retrenched (chart 3). In
1994 and 1998, the reduction in the claims-to-capital
percentages came as a result of improved capital
positions and not from a reduction in claims.
In the 1980s, U.S. banks' emerging-market claimsto-capital ratios were much higher than current ratios.
The overall decline in these ratios provides some
assurance that emerging-market country exposure
poses less of a potential threat to U.S. banks today
than a decade ago. However, the relative riskiness of
claims must be taken into account to develop a more
accurate overall picture of those risks. Also, there is
an increasing trend toward marking claims to market,
meaning that a change in their value can have a direct
effect on a bank's reported income; in the 1980s, the
process of first provisioning for, and then writing off,
claims meant that losses in emerging markets were
27. The short-term claims that were granted anew often came in the
form of trade credits, which were considered much less risky.
28. Because tier 1 capital was not reported before 1990, capital
figures used in the comparisons consist of equity capital, subordinated
debentures, and reserves for loan losses, or what is referred to as total
capital. This measure of capital was used on the Country Exposure
Lending Survey until 1998, when tier 1 capital was adopted.
95
1982
1986
1990
1994
1998
NOTE. Data for 1998 were included to provide an overlapping comparison (at
intervals of four years) of earlier data with the data from 1997-99. However,
data on revaluation gains were not collected before 1997, so revaluation gains
for 1998 were excluded from this chart to ensure comparability with data from
earlier years. Total capital data cover only banks that file the Country Exposure
Report.
Because tier 1 capital was not reported before 1990, capital figures used in
these comparisons consist of equity capital, subordinated debentures, and
reserves for loan losses, or what is referred to as total capital. This measure of
capital was used in the Country Exposure Lending Survey until 1998, when
tier 1 capital was adopted.
reported on a lagged basis. While the trend toward
better disclosure is generally welcome, it does mean
that any losses may have an immediate, and sometimes volatile, effect on banks' capital, forcing them
to be more adept at managing risks in relation to their
capital. Indeed, U.S. banks today apply a number of
risk-management techniques that were not widely
used in the 1980s, such as measurements of potential
exposure, distributions of possible loss amounts, and
estimates of capital at risk.
CONCLUSION
U.S. banks continue to be active in emerging-market
countries despite the crises in recent years. Claims
held by U.S. banks on counterparties in Asia and
Eastern Europe declined over 1997-99, as U.S. banks
either suffered losses on claims or actively reduced
their exposure to those regions. Claims on counterparties in Latin America increased over the period,
perhaps an indication that US. banks rely on their
longer-standing, more entrenched ties to that region
and likely view it as a strategic growth area. However, for all regions the claims-to-capital ratios
have fallen, a result of U.S. banks bolstering their
capital over the entire period—international crises
notwithstanding.
Banking supervisors determine the potential threat
from international exposures by identifying risk areas
96
Federal Reserve Bulletin • February 2000
among foreign claims, assessing the capital supporting those claims, and evaluating banks' ability to
manage the risks associated with those claims. In
particular, high claims-to-capital ratios for U.S. banks
act as a signal for supervisors to focus on specific
U.S. banks or, in some cases, groups of banks. Such a
signal, in turn, may require a more detailed analysis
of country risk at the institutions in question. Finally,
supervisors evaluate the manner in which country
risk is being managed along with the other risks
facing U.S. banks.
•
97
Industrial Production and Capacity Utilization
for December 1999
Released for publication
January
14
Industrial production increased 0.4 percent in December, the same rate as in November. At 140.5 percent
of its 1992 average, industrial production in December was 5.0 percent higher than in December 1998.
For the fourth quarter as a whole, the total index
increased at an annual rate of 6.6 percent, up from
4.8 percent in the third quarter. The rate of capacity
utilization for total industry edged up in December, to
81.3 percent, a level 0.8 percentage point below its
1967-98 average.
Industrial production and capacity utilization
Percent of capacity
Ratio scale, 1992 = 100
_
Industrial production
140
Capacity utilization
130
—
Manufacturing
A / \
85
Total industry
120
r ^ f ^
Total industry
110
»
Manufacturing
Vv^jf
100
1
1
1990
1
1
1992
1
1
1994
1
1
1996
1
1
1988
1
1
1998
1
1
1990
1
1
1992
1
1
1994
1
1
1996
1
1
1998
Industrial production, market groups
Ratio scale, 1992 = 100
Ratio scale, 1992 = 100
—
Consumer goods
Durable
/ ^^
-
Nondurable
i
V
i
1
1
—
1
1
1
I
1
Ratio scale, 1992 = 100
_
—
Equipment
Business
1
S.
1
1
1
1
1
Defense and space
1
1
i H
^
1990
1992
1994
1998
1992
1996
1990
All series are seasonally adjusted. Latest series, December. Capacity is an index of potential industrial production.
J
1994
1996
I
L
1998
80
98
Federal Reserve Bulletin • February 2000
Industrial production and capacity utilization, December 1999
Industrial production, index, 1992= 100
Percentage change
Category
1999
1999'
Sept.r
Oct.
r
Nov.
.2
1.0
.4
.2
.8
Oct/
Nov.'
Dec. P
Total
138.1
139.4
139.9
140.5
Previous estimate
138.0
139.1
139.5
Major market groups
Products, total2
Consumer goods
Business equipment
Construction supplies
Materials
127.6
117.1
173.7
134.1
155.7
129.0
118.9
175.1
135.3
156.8
129.2
118.9
176.1
135.7
158.0
129.4
119.1
175.6
136.2
159.2
-.1
-.4
-.1
.9
.7
1.1
1.5
.8
.9
.7
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
142.9
175.0
111.8
98.3
117.7
144.3
176.4
113.1
99.3
118.6
145.2
177.7
113.6
99.8
115.5
145.5
177.9
114.0
100.2
119.5
.3
.3
.3
-.2
-.1
1.0
.8
1.2
1.0
.7
Dec. P
.4
5.0
.2
.0
.6
.3
.7
.2
.2
-.3
.4
.8
3.6
3.5
5.6
3.0
7.3
.6
.7
.5
.5
-2.6
.2
.1
.3
.4
3.5
5.1
7.0
2.6
2.2
6.2
MEMO
Capacity utilization, percent
1998
Average,
1967-98
Low,
1982
Dec. 1998
to
Dec. 1999
.3
Sept.
1999
High,
1988-89
Capacity,
percentage
change,
Dec. 1998
to
Dec. 1999
Dec.
71.1
85.4
Oct. r
Nov.r
Dec.P
80.6
80.6
81.2
81.2
81.3
4.1
80.6
82.1
Total
Sept.'
81.0
81.0
79.7
78.7
82.8
81.8
92.0
80.2
79.2
83.3
82.6
92.6
80.4
79.4
83.7
83.1
90.1
80.3
79.1
83.7
83.4
93.1
4.6
5.5
2.3
-.3
1.4
Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
81.1
80.5
82.4
87.5
87.4
69.0
70.4
66.2
80.3
75.9
85.7
84.2
88.9
88.0
92.6
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
MARKET
GROUPS
The output of consumer goods, which had been flat
in November, increased 0.2 percent in December.
The output of durable consumer goods declined for
a second month as the production of automotive
products fell a cumulative total of 2lA percent over
the last two months of the year. The production of
other durable consumer goods advanced, with
increases in the indexes for home electronics and
miscellaneous consumer durable goods more than
offsetting a sharp decline in appliances. Although the
monthly fluctuations in appliance output have been
volatile, production for the year as a whole was up
quite sharply. The production of nondurable consumer goods advanced 0.4 percent. Most of the gain
came from a rebound in the output of energy products after unusually mild weather in November had
cut sales of residential gas and electricity nearly
4 percent. The output of non-energy consumer
products edged up after a rise of about 2 percent
79.9
78.8
83.1
81.4
88.9
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
over the two preceding months; in December, the
production indexes for foods and tobacco and for
chemical products rose further but were mostly
offset by declines in the output of clothing and paper
products.
The production of business equipment, which had
increased about IV2 percent over the preceding two
months, eased a bit in December. The uptrend was
interrupted by a drop of 4.4 percent in the output
of transit equipment and of 1.1 percent in the
production of the "other equipment" group, particularly farm machinery and equipment. The output of
industrial equipment remained weak, edging down
in both November and December. The production
of information processing and related equipment
rose more than 1 percent, bringing the gain over the
last 12 months to nearly 24 percent. The output of
defense and space equipment fell more than 1 percent
in December, to a level 4.2 percent below that in
December 1998; the cumulative decline in this index
over the 1990s was about 40 percent.
Industrial Production and Capacity Utilization
The production of construction supplies rose
0.4 percent further in December, to a level 3.0 percent higher than in December 1998; from the third
quarter to the fourth quarter, this index increased
at an annual rate of about 7 percent. The output of
materials increased 0.8 percent after an average
monthly gain of 0.7 percent in the preceding three
months. The output of durable goods materials
increased 0.7 percent, a bit less than the average
monthly gain recorded over the past year. Another
strong increase in equipment parts, particularly semiconductors, was partly offset by a decline in the index
for original equipment parts used to make motor
vehicles. The output of nondurable goods materials
edged up 0.2 percent. The output of energy materials,
which had grown slowly over the year, jumped
1.8 percent in December after a 1 percent decline in
November.
INDUSTRY
GROUPS
Manufacturing output advanced 0.2 percent in
December, one-third as much as in November. The
declines in the production of motor vehicles and parts
and aircraft and parts reduced growth in manufacturing about 0.3 percentage point in December. For the
fourth quarter, the annual rate of factory output accelerated to more than 7 percent, with continued strength
in durables and a sharp step-up in the output of
nondurables, which had changed little, on balance,
between mid-1998 and the third quarter of 1999. In
the fourth quarter, the overall factory operating rate
increased 0.6 percentage point, to 80.3 percent.
The output of durables, which increased 7 percent
over the year, edged up in December as the output of
motor vehicles and parts, which dropped 2.8 percent
in December, reversed the gains made in the preceding three months. In addition, the production of iron
and steel edged down after a strong increase in
November, and the output of aerospace and miscellaneous transportation fell another 1.5 percent, bringing the decline in this group to nearly 14 percent over
1999. In December, the computer and office equipment industry again advanced less rapidly than in
earlier months, while the output of semiconductors
and related electronic components rose 3.2 percent,
in line with the rapid growth of the past year. The
recent recovery in the output of farm machinery,
which had erased only a small part of the earlier
severe decline, was interrupted in December. The
production in nondurable manufacturing increased
0.3 percent, to a level 2.6 percent higher than in
December 1998. Among nondurable manufacturing
99
industries, production gains were widespread; however, the output of leather and products and textile
mill products declined for another month. In the
fourth quarter, production rose substantially in the
foods, tobacco, chemicals, paper, and printing and
publishing industries.
The factory operating rate edged down in December, to 80.3 percent. Utilization in primary-processing
industries held at 83.7 percent, while that for
advanced-processing industries declined 0.3 percentage point, to 79.1 percent.
Output at utilities, which had fallen back more than
2Vi percent in November, increased 3.5 percent; the
operating rate at utilities rebounded 3 percentage
points, to 93.1 percent. Boosted by the continuing
recovery in oil and gas extraction, mine production
increased 0.4 percent, about the same gain as in
November; the utilization rate at mines, which
increased to 83.4 percent, was still noticeably below
its long-term average. While drilling and other oil
and gas field activity has been recovering since June,
the level of activity remains relatively low.
REVISION OF INDUSTRIAL PRODUCTION
CAPACITY UTILIZATION
AND
As previously announced, the Federal Reserve Board
on November 30, 1999, published a revision to the
index of industrial production (IP) and the related
measures of capacity and capacity utilization for
the period from January 1992 to October 1999. The
updated measures reflect both the incorporation of
newly available, more comprehensive source data
typical of annual revisions and, for some series, the
introduction of improved methods for compiling the
series. The new source data are for recent years,
primarily 1997 and 1998, and the modified methods
affect data from 1992 onward. In addition, the supplementary series on the gross value of products leaving
the industrial sector are now expressed in 1996 dollars; these series begin in 1977.
The updated IP measures include some annual data
from the Census Bureau's 1997 Census of Manufactures and from selected editions of its 1998 Current
Industrial Reports. Annual data from the U.S. Geological Survey on metallic and nonmetallic minerals
(except fuels) for 1997 and 1998 are also introduced.
The updating includes revisions to the monthly indicator for each industry (either physical product data,
production worker hours, or electric power usage)
and revised seasonal factors.
The revision introduced improved measures of
production for computers and office equipment
100
Federal Reserve Bulletin • February 2000
(SIC 357) and motor vehicles (SIC 3711, 3). The new
monthly measure for computers is derived from
detailed information on the major products produced
by the industry. For example, from 1994 to 1998,
quarterly data on the physical quantity and average
unit values of about 1,100 distinct models of personal
computers, notebooks, servers, and workstations are
used to construct the new IP index for computers;
previously, monthly electric power use by the industry was used as the within-year indicator of production. The new measures of motor vehicle production
incorporate price weights for the different models of
light vehicles; previously, all autos and light trucks
were weighted equally in compiling an aggregate
figure. In addition, the monthly production indicators
for bolts and fasteners (SIC 345) and for metalworking machinery (SIC 354) were changed from electric
power use to production worker hours.
Capacity and capacity utilization rates have been
revised to incorporate preliminary data from the Census Bureau's 1998 Survey of Plant Capacity, which
covers manufacturing, along with other new data on
capacity from the U.S. Geological Survey, the Department of Energy, and other organizations.
The revision is available on the Board's web site,
at www.federalreserve.gov/releases/gl7, and on
diskettes from Publications Services (telephone
202-452-3245). The revised data are also available
through the STAT-USA web site of the Department of Commerce (www.stat-usa.gov). Further
information on these revisions is available from
the Board's Industrial Output Section (telephone
202-452-3197).
•
101
Announcements
DIRECTIVE OF THE FEDERAL OPEN MARKET
COMMITTEE
The Federal Open Market Committee made no
change on December 21, 1999, in its target for the
federal funds rate.
Based on the available evidence, however, the
Committee remains concerned with the possibility
that over time increases in demand will continue to
exceed the growth in potential supply, even after
taking account of the remarkable rise in productivity
growth. Such trends could foster inflationary imbalances that would undermine the economy's exemplary performance.
Nonetheless, in light of market uncertainties associated with the century date change, the Committee
decided to adopt a symmetric directive in order to
indicate that the focus of policy in the intermeeting
period must be ensuring a smooth transition into the
Year 2000. At its next meeting the Committee will
assess available information on the likely balance of
supply and demand, conditions in financial markets,
and the possible need for adjustment in the stance of
policy to contain inflationary pressures.
APPOINTMENTS OF NEW MEMBERS AND A
NEW PRESIDENT AND VICE PRESIDENT OF THE
THRIFT INSTITUTIONS ADVISORY COUNCIL
The Federal Reserve Board on December 10, 1999,
announced the names of four new members of its
Thrift Institutions Advisory Council (TIAC) and designated a new president and vice president of the
council for 2000.
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 related to thrift institutions, the
housing industry, mortgage finance, and certain regulatory issues.
The new council president for 2000 is F. Weller
Meyer, President and CEO, Acacia Federal Savings
Bank, Falls Church, Virginia. The new vice president
is Thomas S. Johnson, Chairman and CEO, GreenPoint Bank, New York, New York.
The four new members, named for two-year terms
beginning January 1, are the following:
Tom R. Dorety, President and CEO, Suncoast Schools
Federal Credit Union, Tampa, Fla.
Cornelius D. Mahoney, Chairman, President, and CEO,
Woronoco Savings Bank, Westfield, Mass.
Mark H. Wright, President and CEO, USAA Federal
Savings Bank, San Antonio, Tex.
Clarence Zugelter, President, CEO, and Chairman of the
Board, First Federal Bank, F.S.B., Kansas City, Mo.
Other TIAC members whose terms continue
through 2000 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.
William A. Longbrake, Vice Chair 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.
INCREASE IN THE EXEMPTION THRESHOLD FOR
DEPOSITORY INSTITUTIONS REPORTING UNDER
HMDA
The Federal Reserve Board on December 15, 1999,
announced that the exemption threshold for depository institutions that are required to report data under
the Home Mortgage Disclosure Act (HMDA) had
been increased to $30 million. Under the revision to
the Board's staff commentary to Regulation C (Home
Mortgage Disclosure), depository institutions with
assets totaling $30 million or less as of December 31,
1999, are not required to collect HMDA data in 2000.
The Board is required to adjust annually the assetsize exemption threshold for depository institutions
102
Federal Reserve Bulletin • February 2000
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 1999.
EXTENSION OF COMMENT PERIOD ON
PROPOSALS TO ALLOW ELECTRONIC DELIVERY
OF FEDERALLY MANDATED DISCLOSURES
The Federal Reserve Board on December 9, 1999,
announced the reopening and extension of the comment period on proposals to allow electronic delivery
of federally mandated disclosures. On September 14,
1999, the Board published revised proposals for public comment under five consumer protection regulations: B (Equal Credit Opportunity), E (Electronic
Fund Transfers), M (Consumer Leasing), Z (Truth in
Lending), and DD (Truth in Savings).
The Board is reopening and extending the comment period to obtain views from individual consumers through focus group interviews. Although the
comment period is being extended primarily for the
purpose of conducting these focus groups, other
members of the public may also submit comments
during this period, but they are encouraged to submit
them as soon as possible.
Final action on the proposals is expected shortly
after the deadline for public comment, which is
March 3, 2000.
CHANGES FOR 2000 IN THE FEE SCHEDULES
FOR PRICED SERVICES OF THE FEDERAL
RESERVE BANKS
Depository institutions that use the Federal Reserve
Banks' electronic payment services will benefit from
continued price reductions in 2000 under the fee
schedules approved on December 17, 1999, by the
Federal Reserve Board. The effective date of all fees
have been delayed until April 3, 2000, to minimize
change during the period surrounding the rollover to
2000.
Prices across all electronic payment services will
decline nearly 5 percent in 2000, reflecting lower
prices for Fedwire funds, book-entry securities, and
automated clearinghouse (ACH) transactions. The
savings reflect continued efficiencies gained from
consolidating the Federal Reserve's automated processing facilities. Since 1996, prices for all electronic payment services have declined more than
38 percent.
In the aggregate, prices for Reserve Bank priced
services are projected to increase 1.3 percent in 2000.
The 2000 price increase is attributable to a 3.6 percent increase across paper payment services, reflecting higher fees for check products.
For 2000, the Reserve Banks will reduce the basic
fee for on-line Fedwire funds 11.9 percent and for
book-entry securities transfers 17.6 percent. ACH
origination fees will be reduced as much as 18.2 percent. Fees for paper check products will increase
3.3 percent, while fees for payer bank services will
increase 11 percent. The increase in check service
fees reflects, in part, increased investments in check
automation and electronic check technologies and
national standardization of payer bank product and
pricing structures. The priced services fee schedules
for 2000 are available from the Reserve Banks.
The Reserve Banks project that they will recover
99.0 percent of their priced services costs for 2000,
including imputed expenses, leaving net income of
$88.7 million, compared with $98.4 million of targeted return on equity. The Reserve Banks estimate
that they will recover 102.8 percent of their costs in
1999. The Monetary Control Act of 1980 requires the
Federal Reserve to recover the costs of providing
certain payment services over the long term. During
the 1989-98 period, the Reserve Banks recovered
99.9 percent of the costs of priced services, including
targeted return on equity.
On December 17, the Board also approved the
2000 private-sector adjustment factor (PSAF) for
Reserve Bank priced services of $192.6 million, an
increase of $76.8 million, or 66.3 percent, from the
1999 PSAF of $115.8 million. The large increase in
the PSAF for 2000 is due mainly to including additional pension assets and benefit liabilities in the
PSAF balance sheet. The PSAF is an allowance for
taxes and other imputed expenses that would have
been paid and return on capital that would have been
earned had the Federal Reserve's priced services
been provided by a private business firm.
ISSUANCE OF JOINT GUIDANCE ON ASSET
SECURITIZATION ACTIVITIES
The four federal banking agencies (the Federal
Deposit Insurance Corporation, the Federal Reserve
Board, the Office of the Comptroller of the Currency,
and the Office of Thrift Supervision) on December 13, 1999, issued a joint statement addressing the
agencies' supervisory approach to asset securitization
activities. The statement reminds financial institution
management and examiners of fundamental risk-
Announcements
management practices that should be in place at
institutions that engage in securitization activities.
The statement highlights the risks associated with
retained interests in securitization activities. It also
details current supervisory concerns about the valuation and reporting of these assets and concentrations
of these assets relative to capital.
Given the risks presented by these activities, the
bank regulatory agencies are actively considering the
establishment of regulatory restrictions that would
limit or eliminate the amount of certain retained
interests that may be recognized in determining the
adequacy of regulatory capital.
Reported values for retained interests should be
reasonable, conservative, and supported by objective
and verifiable documentation. Institutions should ensure that sufficient capital is held to support the risks
associated with securitization activities and are
expected to place concentration limits on retained
interests relative to equity capital. The statement reiterates that institutions should establish and implement an adequate and independent audit function to
effectively oversee securitization activities.
The statement is issued as part of the agencies'
ongoing review of securitization activities at insured
depository institutions. The agencies continue to
review banking institutions' valuation of retained
interests and the concentrations of these assets relative to capital. As applicable, the agencies will provide further guidance on the liquidity risk associated with over-reliance on asset securitization as a
funding source and on implicit recourse obligations.
The statement is available on request to Publications Services, Mail Stop 127, Board of Governors
of the Federal Reserve System, Washington, DC
20551 and also on the Board's public web site at
www.federalreserve.gov/
NORMAL OPERATIONS REPORTED FOR
FINANCIAL INSTITUTIONS AFTER THE
CENTURY DATE CHANGE
On the first day of the Year 2000, the nation's banks,
thrift institutions, and credit unions conducted business as usual, federal regulators said. No significant
disruptions resulting from the century date change
were detected, the regulators added.
The Federal Deposit Insurance Corporation, the
Federal Reserve Board, the Office of the Comptroller
of the Currency, the Office of Thrift Supervision, and
the National Credit Union Administration closely
monitored financial institution operating performance
during the first week of the Year 2000.
103
The Federal Reserve reported that the nation's
payment systems were functioning well and that currency supplies had been more than adequate to meet
demand. Credit cards, debit cards, checks, and automated teller machines were all working normally.
For the past three years, federal financial institution regulators provided oversight of the efforts of
banks, thrifts, and credit unions as they prepared their
computer systems for the Year 2000 century date
change.
SURVEY OF CONSUMER CONFIDENCE
IN Y2K PREPARATIONS BY BANKS
U.S. bank customers remained confident that their
banks were ready for the Year 2000, according to a
report issued by the Gallup Organization. Nine out of
ten bank customers continued to express confidence
in their bank's readiness.
The report was based on about 1,800 interviews
completed between November 13, 1999, and December 12, 1999, as part of an ongoing survey of adult
Americans who have bank accounts. The ongoing
survey is being sponsored by the Board of Governors
of the Federal Reserve System and the Federal
Deposit Insurance Corporation (FDIC).
"The survey shows that as we move closer to
January 1, 2000, consumers are extremely confident
that banks are prepared for Y2K," said FDIC Chairman Donna Tanoue.
The survey results also indicated that the public
remained confident that basic payment systems would
work properly during the century date change. Most
American adult depositors believed that they would
have access to their money; that checks would continue to be processed accurately; and that automatic
teller machines, credit card systems, and electronic
direct deposits would function normally.
"No one is predicting perfect performance for the
rollover period, but this data demonstrates that the
public is heading confidently into the weekend, making sensible and appropriate preparations," said
Edward W. Kelley, Jr., a member of the Board of
Governors of the Federal Reserve System.
Over the past several years, FDIC-insured financial
institutions identified and overhauled computer systems to make them Year 2000-ready. At the same
time, regulatory agencies closely monitored their
efforts. Based on their findings, the regulators said
that the banking industry would be prepared for the
Year 2000 and that it would be business as usual for
bank customers on January 1, 2000, and thereafter.
104
Federal Reserve Bulletin • February 2000
PUBLICATION OF THE DECEMBER 1 9 9 9
UPDATE TO THE BANK HOLDING
SUPERVISION MANUAL
COMPANY
The December 1999 update to the Bank Holding
Company Supervision Manual, Supplement No. 17,
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 guidance to address the
following topics.
1. Supervisory concerns expressed about trends indicating weakened funding and compliance with
loan underwriting standards, policies, internal
controls, and loan review procedures, when there
are favorable economic conditions and easy
access to financial markets that may not continue.
Funding and adherence to pre-established standards, policies, and procedures provide protections from concentrations of weakening credit
risk. The use of meaningful stress tests are encouraged during the lending decision process, validating a borrower's financial capacity to repay over
the short and long terms, thus guarding against
increased loan losses in an economic downturn.
2. The maintenance of the allowance for loan and
lease losses. Evolving examiner guidance is provided to emphasize the need for banking organizations to apply reserve practices that are balanced,
yet conservative. Accounting guidance is provided with respect to the Financial Accounting
Standards Board's Statements Nos. 5 and 114 and
the maintenance of loan-loss reserves.
3. The Federal Reserve System's initial and ongoing
program of risk-focused supervision framework
for large and other complex banking organizations. Several sections of the update set forth the
initial and ongoing risk-focused supervision,
monitoring, and inspection/examination program.
The guidance details the key elements, institutions, and specialty areas that are encompassed
by the risk-focused supervision framework. The
program endorses the concept of conducting,
when appropriate, a series of targeted inspections/
examinations during a supervisory cycle and
focusing on a single activity, business line, legal
entity, and their associated risks. The program
centers on avoidance of duplication, sharing of
information, and continued close coordination and
cooperation with federal and state supervisors.
Concerns are further expressed regarding certain environmental factors that could initiate swift
and dramatic changes in the risk profiles of
large complex banking organizations (LCBOs)
and, thus, their financial condition. The Federal
Reserve's ongoing supervision and monitoring
program portrays and uses a continuous portfolio
approach to supervision—the continuous assessment and evaluation of informational resources
and banking practices across a group of institutions with similar business lines, characteristics,
and risk profiles. Emphasis is placed on an organization's management of its internal systems and
controls, including rating systems.
Ongoing, risk-focused supervision requires
revision of supervisory ratings when there exists
strong evidence of a change in the financial condition or risk profile of a banking organization.
Such ratings are a continuum, not a point-in-time
assessment. When one supervisory rating (for
example, CAMELS or BOPEC) component is
changed, the other components, management, and
composite ratings need to be reaffirmed or revised.
4. Evaluating and monitoring counterparty risk management functions and systems. This guidance
focuses on transaction testing that is to be applied
for those activities, business lines, and products
experiencing significant growth, above-normal
profitability, or large future potential exposures.
Particular attention is placed on the following:
(1) the standards, methodologies, and techniques
used to measure and control counterparty credit
risk exposures; (2) the use and management of
credit enhancements to mitigate counterparty
credit risks; and (3) the use of risk limits and
monitoring systems that are established to set
meaningful limits on counterparty credit risk and
to alert management when the credit risk exposures exceed their established limits.
5. Capital maintenance and management for LCBOs.
Because of the growing scope and complexity of
business activities and ongoing financial innovation, simple ratios, including risk-based capital
ratios, may no longer suffice when assessing the
overall capital adequacy of many banking organizations. Examiners are to evaluate internal capital management processes to judge whether they
meaningfully tie the identification, monitoring,
and evaluation of risk to the determination of
the banking organization's capital needs. Fundamental elements of a sound and comprehensive
analysis of internal capital adequacy are stated for
the key areas of risk. The management of banking
organizations is encouraged to strengthen their
risk measurement capabilities and to integrate
Announcements
them more fully when evaluating their own capital
adequacy.
A more detailed summary of changes is included
with the update package. 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 at www.federalreserve.gov/boarddocs/
supmanual/
ENFORCEMENT ACTIONS AND
OF ACTIONS
TERMINATIONS
The Federal Reserve Board on December 6, 1999,
announced the termination of the provision that
addressed Year 2000 readiness of the written agreement by and among First Utah Bancorp, the First
Utah Bank, and Premier Data Corporation, all of
Salt Lake City, Utah, and the Federal Reserve Bank
of San Francisco.
105
The Federal Reserve Board on December 6, 1999,
announced the execution of a written agreement by
and between the Foxdale Bank, South Elgin, Illinois,
and the Federal Reserve Bank of Chicago.
The federal banking agencies (the Federal Reserve
Board, the Federal Deposit Insurance Corporation,
the National Credit Union Administration, the Office
of the Comptroller of the Currency, and the Office
of Thrift Supervision) announced on December 13.
1999, the termination of the May 21, 1999, agreement with TransAlliance, L.P., Bellevue, Washington. The agreement addressed the Year 2000 readiness of TransAlliance's electronic funds transfer
services.
The Federal Reserve Board on December 14, 1999,
announced the execution of a written agreement by
and between the Arab American Bank, New York,
New York, and the Federal Reserve Bank of
New York.
•
106
Minutes of the Meeting of the
Federal Open Market Committee
Held on November 16,1999
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 16, 1999, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Boehne
Mr. Ferguson
Mr. Gramlich
Mr. Kelley
Mr. McTeer
Mr. Meyer
Mr. Moskow
Mr. Stern
Messrs. Broaddus, Guynn, Jordan, and Parry,
Alternate Members of the Federal Open
Market Committee
Mr. Hoenig, Ms. Minehan, and Mr. Poole, Presidents
of the Federal Reserve Banks of Kansas City,
Boston, and St. Louis respectively
Mr. Kohn, Secretary and Economist
Mr. Bernard, Deputy Secretary
Ms. Fox, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Ms. Johnson, Economist
Mr. Prell, Economist
Ms. Cumming, Messrs. Howard, Hunter, Lang,
Lindsey, Rolnick, Slifman, and Stockton,
Associate Economists
Mr. Fisher, Manager, System Open Market Account
Messrs. Ettin and Reinhart, Deputy Directors,
Divisions of Research and Statistics and
International Finance respectively,
Board of Governors
Messrs. Madigan and Simpson, Associate Directors,
Divisions of Monetary Affairs and Research and
Statistics respectively, Board of Governors
Mr. Whitesell, Assistant Director, Division of
Monetary Affairs, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Messrs. Stewart and Stone, First Vice Presidents,
Federal Reserve Banks of New York and
Philadelphia respectively
Messrs. Beebe, Eisenbeis, Lacker, Rasche, and
Sniderman, Senior Vice Presidents, Federal
Reserve Banks of San Francisco, Atlanta,
Richmond, St. Louis, and Cleveland respectively
Messrs. Bentley, Fuhrer, and Kahn, Vice Presidents,
Federal Reserve Banks of New York, Boston,
and Kansas City respectively
Mr. Wynne, Research Officer, Federal Reserve Bank
of Dallas
By unanimous vote, the minutes of the meeting of
the Federal Open Market Committee held on October 5, 1999, were approved.
The Manager of the System Open Market Account
reported on recent developments in foreign exchange
markets. There were no open market transactions 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 October 5,1999,
through November 15, 1999. By unanimous vote, the
Committee ratified these transactions.
The Committee then turned to a discussion of
recent and prospective economic and financial developments, and the implementation of monetary policy
over the intermeeting period ahead.
The information reviewed at this meeting suggested that economic activity continued to expand
briskly. The limited data on aggregate demand that
had become available since the summer pointed to
some moderation in the growth of consumer spending and of business investment in capital equipment
and software. Residential construction appeared to
107
have weakened somewhat. However, industrial production was trending up, job growth was still solid,
and the unemployment rate had edged down. Despite
tight job markets, labor compensation had been rising
more slowly than last year. Inflation remained moderate, though at a pace above that in 1998 because of a
sharp rebound in energy prices.
A large increase in nonfarm payroll employment in
October followed a small rise in September; the
average gain for the two months was appreciable but
somewhat below the pace of earlier in the year. Job
growth rebounded strongly in most employment categories, but further small losses were posted in manufacturing and retail trade. The robust expansion in the
demand for workers in October led to a small decline
in the civilian unemployment rate, to 4.1 percent, a
new low for the year.
Industrial production recorded a strong gain in
October after having fallen slightly in September as
a result of the adverse effects of Hurricane Floyd.
Manufacturing and utilities output advanced strongly
in October, while mining activity edged up. The
increases in manufacturing were widespread; however, production of transit equipment, particularly
aircraft and parts, and farm equipment continued to
decline. The utilization of total industrial capacity
rebounded in October from the hurricane-related production losses of the previous month but remained
somewhat below its long-run average level.
Growth of consumer spending apparently had moderated somewhat further recently, but surveys indicated that consumer confidence continued to be high
and personal income rose briskly in the third quarter.
Total nominal retail sales changed little in September
and October, with purchases at auto dealerships falling in both months and sales at other stores growing
less rapidly on balance. Housing activity weakened
somewhat over the summer but was still at a high
level. Some of the drop in housing starts in September probably was attributable to unusually heavy
rains in parts of the South and Northeast. In addition,
sales of both new and existing homes declined appreciably in September.
The expansion of business fixed investment picked
up sharply in the third quarter, as a marked acceleration in outlays for durable equipment and computer
software more than offset a further weakening of
nonresidential construction activity. The strength in
spending for durable equipment was concentrated in
computer hardware and transportation equipment; the
latter included medium and heavy trucks, fleet sales
of light vehicles, and commercial aircraft. Outlays for
computer software and communications equipment
also were up appreciably. Trends in orders suggested
that the buoyancy in business spending for capital
equipment had continued into the fourth quarter.
Weakness in nonresidential building activity in the
third quarter was widespread, though office construction remained on a solid upward trend.
Business inventory investment in book value terms
picked up somewhat in the third quarter, but with
sales increasing rapidly stock-sales ratios generally
remained quite low. Manufacturers added slightly to
their stocks after two quarters of inventory liquidation. However, the buildup of stocks in the third
quarter did not keep pace with the rise in shipments,
and the sector's stock-shipments ratio was near the
bottom of its range over the preceding twelve months.
Wholesalers also added to their inventories in the
third quarter, and with stockbuilding keeping pace
with sales, the inventory-sales ratio for the sector
remained in the lower portion of its range over the
past year. In the retail sector, the pace of inventory
accumulation slowed noticeably in the third quarter,
reflecting a runoff of stocks at auto dealerships.
Excluding autos, the rate of retail inventory accumulation changed little from that of the second quarter,
and with sales rising rapidly the aggregate inventorysales ratio fell to its lowest quarterly level since 1980.
The deficit in U.S. trade in goods and services
widened on balance over July and August from its
average for the second quarter. The value of exports
picked up considerably over the two months, with
gains widely spread across major trade categories.
The value of imports surged, with large increases
recorded in all the major trade categories except
food. The available information indicated that economic expansion in the foreign industrial countries
strengthened further in the third quarter. Economic
recovery continued in Japan, though there were signs
that consumer demand was lagging somewhat. In the
euro area, the United Kingdom, and Canada, economic activity appeared to have accelerated in the
third quarter. Among the developing countries, economic activity continued to expand in emerging Asia
and parts of Latin America.
Consumer prices increased at a slightly faster rate
in September, with a further large rise in energy
prices a contributing factor. Core consumer inflation
also picked up in September, in part because of a
sharp jump in tobacco prices. Nonetheless, core consumer prices rose less over the twelve months ended
in September than over the preceding twelve-month
period. At the producer level, price inflation for finished goods other than food and energy items slowed
appreciably in October from the elevated September
rate, which had been boosted by the tobacco price
increase. For the year ended in October, core pro-
108
Federal Reserve Bulletin • February 2000
ducer prices rose appreciably more than in the preceding year. Measured on a year-over-year basis,
labor compensation rose more slowly in the year
ending in the third quarter than it had in the preceding year. However, the gain in the third quarter was a
little larger than the subdued average pace for the first
half of the year; the step-up was entirely attributable
to larger increases in benefits. Average hourly earnings edged up in October after a large rise in September. For the twelve months ended in October, average
hourly earnings decelerated slightly from the previous twelve months.
At its meeting on October 5, the Committee
adopted a directive that called for maintaining conditions in reserve markets consistent with an unchanged
federal funds rate of around 5lA percent. The members noted that the behavior of prices had continued
to be relatively subdued and that the risk of a substantial worsening in inflation and inflation expectations
over coming months seemed to be small. Nonetheless, they saw some pickup in inflation as a distinct
possibility under anticipated economic conditions and
concluded that the directive should indicate that prospective developments were more likely to warrant
an increase than a decrease in the funds rate objective
in the near term.
Open market operations throughout the intermeeting period were directed toward maintaining the federal funds rate at around 5'A percent, and the rate
averaged close to the Committee's target. On balance, most market interest rates posted small mixed
changes over the intermeeting interval. The Committee's announcement of a bias toward tightening surprised many market participants, and interest rates
rose somewhat after the meeting. Yields climbed
further in response to incoming data on producer
prices and retail sales that boosted market concerns
about unsustainable growth, higher inflation, and further monetary tightening. Over the second half of the
intermeeting period, however, rates largely retraced
their increases in reaction to the release of data indicating low wage and consumer price inflation. Most
measures of share prices in equity markets registered
sizable gains over the intermeeting period, apparently
reflecting stronger-than-expected earnings reports
and greater optimism about the prospects for continued robust output growth and low inflation.
In foreign exchange markets, the trade-weighted
value of the dollar changed little over the period in
relation to the currencies of a broad group of important U.S. trading partners. A small appreciation
against the currencies of the major foreign industrial
countries offset a comparable depreciation in relation
to the currencies of other important trading partners.
Among the major currencies, the dollar rose against
the euro and the pound sterling despite a tightening of
European monetary policy in response to the implications for future inflation of indications of a strong
pickup in economic activity. The dollar fell further
against the yen, whose strength presumably reflected
evidence of continued economic recovery in Japan
and the prospect of another substantial fiscal stimulus
package. The dollar's drop in terms of the currencies
of other important trading partners reflected in part
optimism about continued recovery in Asian emerging economies as well as signs of renewed political stability in some Latin American and Asian
countries.
M2 continued to grow at a moderate rate in October. The recent performance of this aggregate likely
was associated, at least in part, with the rise in market
interest rates earlier in the year that boosted the
opportunity cost of holding liquid balances. The
expansion of M3 picked up over September and
October, reflecting a strong acceleration in its non-M2
component that was associated with strong inflows
to institutional money market funds and stepped-up
issuance of large time deposits to meet credit
demands. For the year through October, M2 and M3
were estimated to have increased at rates somewhat
above their annual ranges for 1999. Total domestic
nonfinancial debt continued to expand at a pace
somewhat above the middle of its range.
The staff forecast prepared for this meeting suggested that the expansion would moderate gradually
to a rate around, or perhaps a little below, the growth
of the economy's estimated potential. The expansion
of domestic final demand increasingly would be held
back by the anticipated waning of positive wealth
effects associated with earlier large gains in equity
prices; the slower growth of spending on consumer
durables, houses, and business equipment and software in the wake of the prolonged buildup in the
stocks of these items; and the higher intermediateand longer-term interest rates that had evolved as
markets came to expect that a rise in short-term
interest rates would be needed to achieve sustainable,
noninflationary growth. The lagged effects of the
earlier rise in the foreign exchange value of the dollar
were expected to place continuing, though substantially diminishing, restraint on U.S. exports for some
period ahead. Core price inflation was projected to
rise somewhat over the forecast horizon, partly as a
result of the pass-through of higher non-oil import
prices and some firming of gains in nominal labor
compensation in persistently tight labor markets that
would not be fully offset by rising productivity
growth.
Minutes of the Federal Open Market Committee
In the Committee's discussion of current and prospective economic developments, members commented that the statistical and anecdotal information
that had become available since the October meeting
continued to point to robust growth in overall economic activity, despite some indications of softening
in interest-sensitive sectors of the economy. Although
productivity developments remained quite favorable,
the faster rise in productivity itself apparently had
tended to bolster demand more than supply through
its effects on equity prices and consumption and on
the demand for capital equipment. While real interest
rates had increased to some extent to restore balance
between supply and demand, they evidently had not
risen enough or had not been high for long enough,
and growth at an unsustainable pace continued to
ratchet up pressures in labor markets. Abstracting
from possible temporary fluctuations associated with
the upcoming century date change, the members saw
few signs of significant slowing in aggregate demand
over the next few months. Over a somewhat longer
horizon, however, they believed that growth in aggregate demand was likely to moderate to a more sustainable pace that would bring it into closer balance
with the expansion in aggregate supply. Key factors
cited by the members in support of their expectations
of slower growth in overall domestic spending were
the lagged and to some extent already evident effects
of the rise that had occurred in long-term interest
rates, including mortgage rates, and the effects on
business and consumer sentiment of a less buoyant
stock market, should the latter persist. However, the
recent depreciation of the dollar and the ongoing
strengthening of many foreign economies would
stimulate rising export demand and perhaps substantially reduce the drag exerted on the economy by the
foreign trade sector. The members acknowledged that
their forecasts were subject to a substantial degree
of uncertainty, but the risks on balance were seen
as tilted toward growth strong enough to put added
pressures on already tight labor markets. Greater
pressures on labor resources, should they materialize,
would at some point foster larger increases in labor
costs, with potentially adverse implications for price
inflation over time.
With regard to the prospective performance of key
sectors of the economy, forecasts of somewhat slower
growth in consumer spending appeared to be supported by recent reports of some moderation in sales
of motor vehicles from extraordinarily high levels.
Anecdotal reports relating to recent retail sales
around the country were mixed, but members indicated that their contacts in the retail industry were
uniformly optimistic about the outlook for sales dur
109
ing the holiday season and recent surveys suggested a
very high level of consumer confidence. Retail sales
might be also augmented during the closing weeks
of the year by precautionary purchases related to
century date change concerns. Looking ahead, and
abstracting from the unwinding in the early part of
2000 of some transitory stockpiling of consumer
goods, growth in consumer spending seemed likely
to moderate over time. In part, forecasts of a less
ebullient consumer sector reflected expectations of
reduced demand for household goods associated with
a mild downturn in housing activity and the previous
slowdown in mortgage refinancings that had lowered
household debt-servicing burdens and frequently had
made accumulated housing equity available for consumer expenditures. A potentially more important
factor in the outlook for consumer spending, however, was the prospect that the wealth effects from
sharp earlier increases in the value of stock market
holdings would wane in the absence of a new upsurge
in stock market prices.
Growth of business spending for equipment and
software was expected to moderate in the current
quarter, largely in conjunction with what was seen as
a temporary slowdown in purchases of computers in
the period before the century date change. However,
the members saw no significant evidence that the
strong uptrend in spending on capital equipment
might otherwise be weakening. In contrast to the
pattern for business fixed investment, nonfarm inventory investment was projected to rise in the current
quarter in connection with a temporary bulge related
to the century date change but also to bring lean
inventories into better alignment with anticipated
sales. Once the perturbations related to the century
date change had run their course, inventory growth
was expected to return to a more normal pace during
2000.
In the housing market, rising mortgage rates had
fostered some declines from recent peaks in starts
and sales, and persisting softness in housing activity
was anticipated. This expectation tended to be supported by anecdotal reports of moderating homebuilding activity in several parts of the country.
Nonetheless, the members cited a number of factors
that should tend to sustain overall housing activity at
a fairly elevated level. These included continuing
though diminishing backlogs of unbuilt homes, rising
incomes, and high levels of consumer confidence. In
any event, the outlook for housing was subject to
considerable uncertainty as reflected in recent surveys that had produced mixed results with regard to
the near-term prospects for housing activity.
Members anticipated that the dollar's recent depre-
110
Federal Reserve Bulletin • February 2000
ciation and the strengthening of foreign economies
would foster a significant further pickup in exports.
Indeed, available data and anecdotal reports from
around the country indicated that foreign demand
already had improved markedly for some U.S. products. In these circumstances, domestic demand would
need to decelerate considerably for growth to proceed
at a sustainable pace.
Concerning the outlook for inflation, members
noted that despite the long duration of very tight
labor markets across the nation, labor compensation
had increased at a slightly lower rate this year while
consumer price inflation had remained moderate,
albeit above year-earlier levels owing to a sharp rise
in energy prices. The deceleration in labor compensation may have been induced in large measure by the
low level of consumer price inflation in 1998. In
addition, a major factor underlying the persistence of
generally subdued price inflation in a period of robust
economic expansion was the continued acceleration
in productivity, which clearly was holding down
increases in unit production costs. The latter contributed to ongoing competitive pressures that severely
limited the ability of firms to raise prices, helping to
this point to keep inflation at a low level.
The members nonetheless remained concerned
about the outlook for inflation. They continued to
focus especially on the possibility that the anticipated
moderation in the growth of aggregate demand, taking into account the outlook for rising foreign
demand for U.S. goods and services, might not be
sufficient to avoid added pressures on labor and other
resources. To be sure, the economy's potential output
appeared to be expanding briskly, with much of the
impetus provided by accelerating productivity. Even
so, the pool of unemployed workers willing to take a
job had continued to be drawn down, and it seemed
likely to many members that prospective growth in
aggregate demand might generate increasing pressures on the economy's ability to produce goods and
services and thus add to inflationary pressures over
time. This concern was heightened by the prospect
that a number of developments that had tended to
contain inflation in the last few years were now
reversing. Members mentioned in particular the likelihood that increases in labor compensation might be
headed higher in lagged response to the pickup in
consumer price inflation this year. Also likely adding
to labor cost pressures were relatively large advances
in the cost of health care benefits and the possibility
of a higher minimum wage. Moreover, the turnaround in energy and import prices could tend to feed
through more directly into the prices of U.S.produced goods by raising costs and reducing com-
petitive pressures to hold down prices. Strengthening
demand around the world already seemed to be contributing to higher prices of materials and other nonlabor inputs in the production "pipeline." In general,
however, the members anticipated that any pickup in
inflation was likely to be gradual, with cost pressures
quite possibly continuing to be held largely in check
for some time by improving productivity trends. They
recognized that forecasts of rising inflation had failed
to materialize in recent years, raising questions about
their understanding of the empirical specification of
the relationships that currently underlie the inflation
process. On balance, though, the unsustainable pace
of economic expansion along with the reversal of
factors that previously had held down overall price
increases suggested a significant risk that inflation
would strengthen over time given prevailing financial
conditions.
Against this background, all the members supported raising the Committee's target for the federal
funds rate by 25 basis points at this meeting. Views
differed to an extent on the outlook for inflation and
policy going forward. However, with tightening
resource constraints indicating unsustainable growth,
only tentative signs that growth might be slowing,
and various factors that had been damping prices now
turning around, all the members agreed on the need
for a slight tightening at this meeting to raise the odds
on containing inflation and forestalling the inflationary imbalances that would undercut the very favorable performance of the economy. This view was
reinforced by the prospect that the Committee might
not find it desirable to adjust policy at its December
meeting when a tightening action could add to the
potential financial uncertainties and unsettlement surrounding the century date change. Accordingly, any
action might have to wait until the meeting in early
February, and the members agreed that the risks of
waiting for such an extended period were unacceptably high.
All the members accepted a proposal to adopt a
symmetric directive. Such a directive was viewed as
consistent with the Committee's current expectation
that no further policy move was likely to be considered before the Committee's meeting in February. In
the circumstances, a Committee decision to retain the
existing asymmetry toward tightening could well
send a misleading signal about the probability of
near-term action and have an unsettling effect on
financial markets at a time when concerns relating to
the century date change might be adding to normal
year-end pressures. As noted previously, however,
views differed to some degree regarding the subsequent outlook for policy. On the basis of currently
Minutes of the Federal Open Market Committee
available information, a number of members indicated that they were quite uncertain about the possible need for further tightening action over coming
months to keep inflation within acceptable limits.
Continued favorable price and unit cost data, driven
in part by improving productivity, suggested that any
further action should depend on incoming information about economic activity, pressures on resources,
and inflation. Other members, emphasizing the persistently strong growth in economic activity and the
unusually high level of labor resource utilization,
suggested that additional firming of the stance of
policy probably would be necessary to keep inflation
in check and hence maintain the favorable backdrop
for maximum economic growth. However, in view of
the questions surrounding the outlook, the amount of
firming already undertaken by the Committee this
year including at this meeting and its uncertain
effects, and the special situation in financial markets
over the year-end, they supported the adoption of a
symmetric directive. At the conclusion of this discussion, the Committee voted to authorize and direct the
Federal Reserve Bank of New York, until it was
instructed otherwise, to execute transactions in the
System Account in accordance with the following
domestic directive:
The information reviewed at this meeting suggests continued solid expansion of economic activity. Nonfarm payroll employment increased appreciably on average over
September and October, and the civilian unemployment
rate dropped to 4.1 percent in October, its low for the year.
Industrial production recorded a strong gain in October
after having been depressed in September by the effects of
hurricane Floyd. Total retail sales were flat in September
and October owing to a drop in sales at auto dealers; sales
at other stores were fairly robust. Housing activity softened
somewhat over the summer but has remained at a high
level. Trends in orders suggest that business spending on
capital equipment has continued to increase. The JulyAugust deficit in U.S. trade in goods and services was
higher than its average in the second quarter, as further
growth in imports exceeded the rise in exports. Inflation
has continued at a moderate pace, though above that in
1998 owing to a sharp rebound in energy prices. Labor
compensation rates have been rising more slowly than last
year.
Most market interest rates have posted small mixed
changes since the meeting on October 5, 1999. However,
measures of share prices in equity markets have registered
sizable increases over the intermeeting period. In foreign
exchange markets, the trade-weighted value of the dollar
has changed little over the period in relation to the currencies of a broad group of important U.S. trading partners.
111
M2 continued to grow at a moderate pace in October
while M3 accelerated. For the year through October, M2
and M3 are estimated to have increased at rates somewhat
above the Committee's annual ranges for 1999. Total
domestic nonfinancial debt has continued to expand at a
pace somewhat above the middle of its range.
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 in
June 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 1998 to
the fourth quarter of 1999. The range for growth of total
domestic nonfinancial debt was maintained at 3 to 7 percent for the year. For 2000, the Committee agreed on a
tentative basis in June to retain the same ranges for growth
of the monetary aggregates and debt, measured from the
fourth quarter of 1999 to the fourth quarter of 2000. The
behavior of the monetary aggregates will continue to be
evaluated in the light of progress toward price level stability, movements in their velocities, and developments in the
economy and financial markets.
To promote the Committee's long-run objectives of price
stability and sustainable economic growth, the Committee
in the immediate future seeks conditions in reserve markets
consistent with increasing the federal funds rate to an
average of around 5Vi percent. In view of the evidence
currently available, the Committee believes that prospective developments are equally likely to warrant an increase
or a decrease in the federal funds rate operating objective
during the intermeeting period.
Votes for this action: Messrs. Greenspan, McDonough.
Boehne, Ferguson, Gramlich, Kelley, McTeer, Meyers,
Moskow, and Stern. Votes against this action: None.
At this meeting, the working group chaired by
Mr. Ferguson provided an interim report on its work
to date concerning the wording of the Committee's
directives, the Committee's announcements after
each meeting, and related issues. The members
expressed broad agreement with the direction of the
working group's tentative recommendations and provided feedback on specific issues and wording. It was
contemplated that the Committee would consider the
working group's final report at a meeting in the near
future.
It was agreed that the next meeting of the Committee would be held on Tuesday, December 21, 1999.
The meeting adjourned at 1:40 p.m.
Donald L. Kohn
Secretary
113
Legal Developments
JOINT FINAL RULE—AMENDMENTS TO REGULATIONS
ON LOANS IN AREAS HAVING SPECIAL FLOOD
HAZARDS
The Office of the Comptroller of the Currency (OCC), the
Board of Governors of the Federal Reserve System
(Board), the Federal Deposit Insurance Corporation
(FDIC), the Farm Credit Administration (FCA), and the
National Credit Union Administration (NCUA) (collectively, the Agencies) are making technical amendments to their
regulations on loans in areas having special flood hazards.
This action removes an outdated cross-reference to Federal
Emergency Management Agency (FEMA) regulations that
had contained the text of the Standard Flood Hazard Determination Form (Form). This action is intended to update
and make accurate the Agencies' regulations regarding
loans in areas having special flood hazards.
Effective December 21, 1999, 12 C.F.R. Parts 22, 208,
339, 614, and 760 are amended as follows:
Part 22—Loans in Areas Having Special Flood
Hazards
1. The authority citation for Part 22 continues to read as
follows:
Authority: 12 U.S.C. 93a; 42 U.S.C. 4012a, 4104a, 4104b,
4106, and 4128.
2. In section 22.6, paragraph (a) is revised to read as
follows:
Section 22.6—Required use of standard flood
hazard determination form.
(a) Use of form. A bank shall use the standard flood hazard
determination form developed by the Director of
FEMA when determining whether the building or mobile home offered as collateral security for a loan is or
will be located in a special flood hazard area in which
flood insurance is available under the Act. The standard flood hazard determination form may be used in a
printed, computerized, or electronic manner. A bank
may obtain the standard flood hazard determination
form from FEMA, P.O. Box 2012, Jessup, MD 207942012.
Part 208—Membership of State Banking
Institutions in the Federal Reserve System
(Regulation H)
1. The authority citation for Part 208 continues to read as
follows:
Authority: 12 U.S.C. 24, 36, 92(a), 93(a), 248(a), 248(c),
321-338a, 371d, 461,481-486, 601, 611,1814,
1816,1818,1820(d)(9), 1823(j), 1828(o), 1831,
1831o, 1831p-l, 183lr-1, 1835a, 1882, 29012907, 3105, 3310, 3331-3351, and 3906-3909;
15 U.S.C. 78b, 781(b), 781(g), 781(i), 78o4(c)(5), 78q, 78q-l, and 78w; 31 U.S.C. 5318;
42 U.S.C. 4012a, 4104a, 4104b, 4106, and
4128.
2. In section 208.25, paragraph (f)(1) is revised to read as
follows:
Section 208.25—Loans in areas having special
flood hazards.
( f ) Required use of standard flood hazard determination
form.
(1) Use of form. A member bank shall use the standard flood hazard determination form developed
by the Director of FEMA when determining
whether the building or mobile home offered as
collateral security for a loan is or will be located
in a special flood hazard area in which flood
insurance is available under the Act. The standard
flood hazard determination form may be used in a
printed, computerized, or electronic manner. A
member bank may obtain the standard flood hazard determination form by written request to
FEMA, P.O. Box 2012, Jessup, MD 20794-2012.
Part 339—Loans in Areas Having Special Flood
Hazards
1. The authority citation for Part 339 continues to read as
follows:
Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and
4128.
2. In section 339.6, paragraph (a) is revised to read as
follows:
114
Federal Reserve Bulletin • February 2000
Section 339.6—Required use of standard flood
hazard determination form.
(a) Use of form. A bank shall use the standard flood hazard
determination form developed by the Director of
FEMA when determining whether the building or mobile home offered as collateral security for a loan is or
will be located in a special flood hazard area in which
flood insurance is available under the Act. The standard flood hazard determination form may be used in a
printed, computerized, or electronic manner. A nonmember bank may obtain the standard flood hazard
determination form by written request to FEMA, P.O.
Box 2021, Jessup, MD 20794-2012.
Part 614—Loan Policies and Operations
1. The authority citation for Part 614 continues to read as
follows:
Authority:
42 U.S.C. 4012a, 4104a, 4104b, 4106, and
4128; sees. 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11,
2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15, 3.0,
3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.3A, 4.12,
4.12A, 4.13, 4.13B, 4.14, 4.14A, 4.14C, 4.14D,
4.14E, 4.18, 4.18A, 4.19, 4.36, 4.37, 5.9, 5.10,
5.17, 7.0, 7.2, 7.6, 7.7, 7.8, 7.12, 7.13, 8.0, 8.5,
8.9 of the Farm Credit Act (12 U.S.C. 2011,
2013, 2014, 2015, 2017, 2018, 2019, 2071,
2073, 2074, 2075, 2091, 2093, 2094, 2096,
2121, 2122, 2124, 2128, 2129, 2131, 2141,
2149, 2154a, 2183, 2184, 2199, 2201, 2202,
2202a, 2202c, 2202d, 2202e, 2206, 2206a,
2207, 2219a, 2219b, 2243, 2244, 2252, 2279a,
2279a-2, 2279b, 2279b-1, 2279b-2, 2279f,
2279f-l, 2279aa, 2279aa-5, 2279aa-9); sec. 413
of Pub. L. 100-233, 101 Stat. 1568, 1639.
2. In section 614.490, paragraph (a) is revised to read as
follows:
Section 614.490—Required use of standard flood
hazard determination form.
(a) Use of form. System institutions must use the standard
flood hazard determination form developed by the Director of FEMA when determining whether the building or mobile home offered as collateral security for a
loan is or will be located in a special flood hazard area
in which flood insurance is available under the 1968
Act. The standard flood hazard determination form
may be used in a printed, computerized, or electronic
manner. A System institution may obtain the standard
flood hazard determination form by written request to
FEMA, P.O. Box 2012, Jessup, MD 20794- 2012.
Part 760—Loans in Areas Having Special Flood
Hazards
1. The authority citation for Part 760 continues to read as
follows:
Authority: 12 U.S.C. 1757, 1789; 42 U.S.C. 4012a, 4104a,
4104b, 4106, and 4128.
2. In section 760.6, paragraph (a) is revised to read as
follows:
Section 760.6—Required use of standard flood
hazard determination form.
(a) Use of form. A credit union shall use the standard flood
hazard determination form developed by the Director
when determining whether the building or mobile home
offered as collateral security for a loan is or will be
located in a special flood hazard area in which flood
insurance is available under the Act. The standard
flood hazard determination form may be used in a
printed, computerized, or electronic manner. A credit
union may obtain the standard flood hazard determination form from FEMA, P.O. Box 2012, Jessup, MD
20794-2012.
FINAL RULE—AMENDMENT TO STAFF COMMENTARY
INTERPRETING THE REQUIREMENTS OF 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 present adjustment reflects changes for the 12-month period ending in
November 1999. During this period, the index increased by
2.1 percent; as a result, the threshold is increased to
$30 million. Thus, depository institutions with assets of
$30 million or less as of December 31, 1999, are exempt
from data collection in 2000.
Effective January 1, 2000, 12 C.F.R. Part 203 is amended
as follows:
Part 203—Home Mortgage Disclosure (Regulation C)
1. The authority citation for Part 203 continues to read as
follows:
Authority: 12 U.S.C. 2801-2810.
2. In Supplement I to Part 203, under Section 203.3—
Exempt Institutions, under 3(a) Exemption based on
Legal Developments
location, asset size, or number of home-purchase loans,
paragraph 2 is revised to read as follows:
115
Section 6801.103—Prohibited financial interests.
(a)
Supplement I to Part 203—Stalf Commentary
*
*
(2)
Section 203.3—Exempt Institutions
3(a) Exemption based on location, asset size, or number of
home-purchase loans. * * *
2. Adjustment of exemption threshold for depository institutions. For data collection in 2000, the asset-size exemption threshold is $30 million. Depository institutions with assets at or below $30 million are exempt
from collecting data for 2000.
*
A primary government securities dealer or any
of its affiliates, if such employee has regular,
ongoing access to Class I Federal Open Market
Committee information.
(c) ^ ^
*
*
*
(i) Prior to Federal Reserve employment;
ORDERS ISSUED UNDER BANK HOLDING COMPANY
ACT
FINAL RULE—AMENDMENT TO SUPPLEMENTAL
STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE BOARD
The Board of Governors, with the concurrence of the
Office of Government Ethics (OGE), is amending 12 C.F.R.
Part 6801, its Supplemental Standards of Ethical Conduct
for Employees of the Board. This amendment would eliminate the general prohibition on ownership of stock in
primary dealers for most Board employees and expand the
availability of stock ownership waivers by allowing waivers to be granted permitting Board employees to retain
bank stock acquired prior to Federal Reserve employment
if the stock does not present a conflict of interest with the
employees' duties.
Effective December 8, 1999, 12 C.F.R. Part 6801 is
amended as follows:
Part 6801—Supplemental Standards of Ethical
Conduct for Employees of the Board of Governors
of the Federal Reserve System
1. The authority citation for Part 6801 continues to read as
follows:
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in
Government Act of 1978); 12 U.S.C. 244, 248;
E.O. 12674, 54 FR 15159, 3 C.F.R., 1989
Comp, p. 215, as modified by E.O. 12731,
55 FR 42547, 3 C.F.R., 1990 Comp, p. 306;
5 C.F.R. 2635.105, 2635.403(a), 2635.502,
2635.803.
2. Section 6801.103 is amended by:
a. Revising paragraph (a)(2);
b. Redesignating paragraphs (c)(l)(i) and (c)(l)(ii) as
(c)(l)(ii) and (c)(l)(iii), respectively; and
c. Adding a new paragraph (c)(l)(i). The revision and
addition read as follows:
Orders Issued Under Section 3 of the Bank Holding
Company Act
Exchange Bancshares of Moore, Inc.
Moore, Oklahoma
Order Approving the Formation of a Bank Holding
Company
Exchange Bancshares of Moore, Inc. ("Applicant") has
requested the Board's approval under section 3 of the Bank
Holding Company Act ("BHC Act") (12 U.S.C. § 1842)
to become a bank holding company by acquiring all the
outstanding voting shares of Exchange National Bank of
Moore, Moore, Oklahoma ("Bank").
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (64
Federal Register 51,125 (1999)). 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. Applicant is a newly
organized corporation formed for the purpose of acquiring
control of Bank. Bank is the 167th largest depository
institution in Oklahoma, controlling $37.4 million in deposits, representing less than 1 percent of total deposits in
depository institutions in the state.1
As noted above, Applicant is a de novo corporation and
does not control another depository institution. Accordingly, based on all the facts of record, the Board concludes
that consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market,
and that competitive considerations are consistent with
approval.
1. Deposit data are as of June 30, 1998. In this context, depository
institutions include commercial banks, savings associations, and savings banks.
116
Federal Reserve Bulletin • February 2000
The BHC Act also requires the Board to consider the
financial and managerial resources and future prospects of
the companies and banks involved in the proposal, the
convenience and needs of the community to be served, and
certain other supervisory factors. The Board has carefully
considered these factors in light of all the facts of record,
including comments from a Bank shareholder and director
("Protestant"), who contends that Applicant has undervalued his shares and, consequently, underestimated the cost
of acquiring Bank.2 The Board has also carefully reviewed
all the financial and managerial information provided by
Applicant and Protestant about the proposal, assessments
of the financial resources of Bank contained in confidential
reports of examination by the Office of the Comptroller of
the Currency ("OCC"), and other supervisory information.
Because the resulting organization has total assets of less
than $150 million, the Board has reviewed the proposal in
light of its Policy Statement on the Formation of Small
Bank Holding Companies.3
The Board notes that Bank currently is well capitalized.
In addition, under the proposal submitted by Applicant, the
projected financial condition of Applicant and Bank and
the projected debt-service obligation of Applicant are reasonable and consistent with the Board's guidelines. The
Board also has reviewed Applicant's ability to service the
debt if a court determines that a higher valuation of Protestant's shares is appropriate, and concludes that Applicant
appears to have sufficient resources to service any increased debt likely to result from a larger payment to
Protestant.
The Board has also reviewed relevant reports of examination of Bank and the managerial resources of Applicant's organizers, all of whom currently are officers and
directors of Bank. Based on these and all the other facts of
record, the Board concludes that financial and managerial
considerations and future prospects of Applicant and Bank
are consistent with approval.4 Considerations relating to
the convenience and needs of the community, including the
performance record of Bank under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.), and the other
2. Under state law, a shareholder dissenting from a share acquisition
is entitled to fair market value for the shareholder's shares, as determined by a state district court. See Okla. Stat. Ann. tit. 18, § 1091
(West 1999). Protestant argues that Applicant has not established its
ability to finance the proposal without adversely affecting the Bank's
financial condition if fair market value of Protestant's shares exceeds
the value assigned to the shares by Applicant's appraiser.
3. 12 C.F.R. 225, App. c.
4. Protestant maintains that actions taken by Applicant in connection with the proposal raise adverse managerial considerations. Protestant alleges that Applicant's principals are in violation of the bank's
shareholder and voting agreements. These questions involve the interpretation of state law and, as such, are matters appropriately adjudicated by the courts. Protestant also argues that the voting agreement
constitutes a voting trust that requires a notice to the OCC under the
Change in Bank Control Act, 12 U.S.C. § 1817(j), and that Applicant
has failed to file a notice with the OCC. The Board provided the OCC
with Protestant's comments, and the OCC did not file any comments
with respect to this proposal.
supervisory factors the Board must consider under section 3 of the BHC Act, also are consistent with approval.
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. The Board's approval
is specifically conditioned on compliance by Applicant
with all the commitments made in connection with the
application. For the purpose of this action, 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 decision
and, as such, may be enforced in proceedings under applicable law.
The proposed transaction 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 Kansas
City, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 8, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
BB&T Corporation
Winston-Salem, North Carolina
Order Approving the Acquisition of a Bank Holding
Company
BB&T Corporation, Winston-Salem, North Carolina
("BB&T"), 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 Premier Bancshares,
Inc., Atlanta, Georgia ("Premier"), and its four wholly
owned subsidiary depository institutions: Premier Bank,
Atlanta; Bank Atlanta, Decatur; Farmers and Merchants
Bank, Summerville; and Milton National Bank, Roswell,
all in Georgia.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (64
Federal Register 55,291 (1999)). 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. BB&T, with total
consolidated assets of $39.2 billion, operates depository
institutions in North Carolina, Georgia, South Carolina,
Maryland, Kentucky, Virginia, and West Virginia. BB&T
is the eighth largest depository institution in Georgia, controlling deposits of $1.5 billion, representing approximately 1.7 percent of total deposits in insured depository
Legal Developments
institutions in the state ("state deposits").1 Premier, with
total consolidated assets of $1.5 billion, is the ninth largest
depository institution in Georgia, controlling deposits of
$1.3 billion, representing approximately 1.6 percent of
state deposits. After consummation of the proposal, BB&T
would remain the eighth largest depository institution in
Georgia, controlling deposits of $2.8 billion, representing
approximately 3.3 percent of state deposits.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of such bank holding company if certain conditions
are met.2 For purposes of the BHC Act, the home state of
BB&T is North Carolina, and Premier's subsidiary banks
are in Georgia.3 All of the conditions for an interstate
acquisition enumerated in section 3(d) of the BHC Act are
met in this case.4 In light of all the facts of record, the
Board is permitted to approve the proposal under section 3(d) of the BHC Act.
117
BB&T and Premier compete directly in the Atlanta6 and
Milledgeville7 banking markets, both in Georgia. The
Board has carefully reviewed the competitive effects of the
proposal in each of these banking markets in light of all the
facts of record, including the number of competitors that
would remain in the market, the share of total deposits in
depository institutions in the market ("market deposits")
controlled by the companies involved in the proposal,8 the
concentration level of market deposits in the market and
the increase in this level as measured by the HerfindahlHirschman Index ("HHI") under the Department of Justice
Merger Guidelines ("DOJ Guidelines"), and other characteristics of the markets.9 Consummation of the proposal
without divestitures would be consistent with Board precedent and the DOJ Guidelines in the Atlanta banking market.10 This banking market would remain moderately concentrated after consummation of the proposal and
numerous competitors would remain in the market.
Consummation of the proposal in the Milledgeville
banking market would exceed the DOJ Guidelines. BB&T
is the sixth largest depository institution in the market,
controlling deposits of $45.7 million, representing approximately 8.9 percent of market deposits. Premier is the
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or be in
furtherance of an attempt to monopolize the business of
banking. Section 3 also prohibits the Board from approving
a proposal that would substantially lessen competition in
any relevant banking market unless the anticompetitive
effects of the proposal in that banking market 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
1. Asset data are as of June 30, 1999. Deposit data are as of June 30,
1999, and are adjusted to include acquisitions by BB&T after that
date. In this context, depository institutions include commercial banks,
savings banks, and savings associations.
2. See 12 U.S.C. § 1842(d). A bank holding company's home state
is the state in which the total deposits of all banking subsidiaries of
such company were the largest on July 1, 1966, or the date on which
the company became a bank holding company, whichever is later.
12 U.S.C. § 1841(o)(4)(c).
3. For purposes of section 3(d) of the BHC Act, the Board considers
a bank to be located in the states in which the bank is chartered,
headquartered, or operates a branch. See 12 U.S.C. §§ 1841(o)(4)-(7)
and 1842(d)(1)(A) and (2)(B).
4. See 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and
(B). BB&T meets the capital and managerial requirements established
under applicable law, and the subsidiary banks of Premier have been
in existence and operated for five years, as required by applicable state
law. See Ga. Code Ann. § 7 - l - 6 2 2 ( b ) ( l ) (Lexis 1999). After consummation of the proposal, BB&T would control less than 10 percent of
the total amount of deposits of insured depository institutions in the
United States and less than 30 percent of total deposits held by insured
depository institutions in Georgia, which is the percentage established
by state law. See Ga. Code Ann. § 7-l-622(b)(2)(B). All other requirements under section 3(d) of the BHC Act also would be met on
consummation of the proposal.
5. See 12 U.S.C. § 1842(c).
6. The Atlanta banking market is defined as the counties of Bartow,
Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinett, Hall (excluding the town of Clermont), Henry,
Newton, Paulding, Rockdale, and Walton, and the towns of Auburn
and Winder in Barrow County.
7. The Milledgeville banking market is defined as Baldwin and
Hancock Counties and the northern half of Wilkinson County. BB&T
entered the Milledgeville banking market in November 1999, through
the acquisition of First Liberty Financial Corp. and its subsidiary
bank, First Liberty Bank, both in Macon, Georgia.
8. Market share data for the Atlanta banking market are as of
June 30, 1998, and for the Milledgeville banking market as of June 30,
1999. These 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 (1983). Thus, the
Board has regularly included thrift deposits in the calculation of
market share on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991).
9. Under the DOJ Guidelines, 49 Federal Register 26,823 (June 29,
1984), a market is considered moderately concentrated when the postmerger HHI is between 1000 and 1800, and is considered highly
concentrated when the post-merger HHI is more than 1800. The
Department of Justice has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other
factors indicating anticompetitive effects) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by more than
200 points. The Department of Justice has stated that the higher than
normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limitedpurpose lenders and other nondepository financial institutions.
10. BB&T is the 14th largest depository institution in the market,
controlling deposits of $327.1 million, representing less than 1 percent
of market deposits. Premier is the eighth largest depository institution
in the market, controlling deposits of $1 billion, representing approximately 2.3 percent of market deposits. On consummation of the
proposal, BB&T would become the seventh largest depository institution in the market, controlling deposits of approximately $1.4 billion,
representing approximately 3 percent of market deposits. The HHI
would increase 3 points to 1210.
118
Federal Reserve Bulletin • February 2000
largest depository institution in the market, controlling
deposits of $130.4 million, representing approximately
24 percent of market deposits. The HHI would increase
430 points to 2002, and the market would become highly
concentrated. To mitigate the potential anticompetitive effects of the proposal in the Milledgeville banking market,
BB&T has committed to divest one branch that currently
controls approximately $19.3 million in deposits to a commercial banking organization that does not currently have a
presence in the market or to a suitable in-market competitor.11 After the proposed merger and divestiture, BB&T
would become the largest depository institution in the
banking market, controlling deposits of $158.2 million,
representing approximately 29.1 percent of market deposits. In addition, the HHI in the Milledgeville banking
market would increase not more than 240 points to 1812.
At least eight competitors would remain in the banking
market, including four competitors other than BB&T that
each would control 10 percent or more of market deposits.
The Board has considered the views of the Department
of Justice and the other banking agencies on the competitive effects of the proposal in each relevant banking market. The Department of Justice has advised the Board that,
in light of the proposed divestiture, consummation of the
proposal likely would not have a significantly adverse
effect on competition in any relevant banking market. The
Office of the Comptroller of the Currency and the Federal
Deposit Insurance Corporation have been afforded an opportunity to comment and have not objected to consummation of the proposal.
Based on all the facts of record, including the proposed
divestiture in the Milledgeville banking market and the
number and size of competitors remaining in the market,
the Board concludes that consummation of the proposal
would not result in any significantly adverse effects on
competition or on the concentration of banking resources
in the banking markets in which BB&T and Premier directly compete or in any other relevant banking market.
and certain supervisory factors. The Board has reviewed
these factors in light of the record, including supervisory
reports of examination assessing the financial and managerial resources of the organizations and financial information provided by BB&T. Based on all the facts of record,
the Board concludes that the financial and managerial
resources and the future prospects of BB&T, Premier, and
their respective subsidiary banks are consistent with approval, as are the other supervisory factors the Board must
consider under the BHC Act. In addition, considerations
related to the convenience and needs of the communities to
be served, including the records of performance of the
institutions involved under the Community Reinvestment
Act (12 U.S.C. § 2901 et seq.), are consistent with approval
of the proposal.
Other Considerations
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
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. The Board's approval
is specifically conditioned on compliance by BB&T with
all the commitments made in connection with the proposal
and with the conditions stated or referred to in this order,
including BB&T's divestiture commitments. For the purpose of this action, the commitments and conditions referred to above are deemed to be conditions imposed in
writing by the Board in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The proposed transaction shall not be consummated
before the fifteenth calendar day following the effective
date of this order, or later than three months after the
effective date of this order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 17, 1999.
The BHC Act requires the Board, in acting on an application, to consider the financial and managerial resources and
future prospects of the companies and banks involved, the
convenience and needs of the communities to be served,
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Banque Nationale de Paris
Paris, France
11. BB&T has committed to execute, before consummation of the
proposal, a sales agreement for the proposed divestiture with a purchaser determined by the Board to be competitively suitable, and to
complete the divestiture within 180 days of consummation of the
proposal. BB&T also has committed that, if it is unsuccessful in
completing the divestiture within the 180-day period, it will transfer
the unsold branch to an independent trustee that is acceptable to the
Board and will instruct the trustee to sell the branch promptly to an
alternative purchaser acceptable to the Board. See BankAmerica Corporation, 78 Federal Reserve Bulletin 338 (1992); United New Mexico Financial Corporation, 77 Federal Reserve Bulletin 484 (1991).
BB&T also has committed to submit to the Board, within 120 days
after consummation of the proposal, an executed trust agreement
acceptable to the Board stating the terms of the proposed divestiture.
Paribas
Paris, France
Order Approving Notice to Engage in Nonbanking
Activities
Banque Nationale de Paris ("BNP"), a bank holding company within the meaning of the Bank Holding Company
Act ("BHC Act"), and Paribas, a foreign banking organization subject to the BHC Act (collectively, "Notificants"), have requested the Board's approval under sec-
Legal Developments
tion 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 retain their ownership interest in Paribas Corporation, Paribas Asset Management, Inc., and Paribas
Futures, Inc., all in New York, New York (collectively,
"Companies"), and thereby engage in the following activities:
(1) Extending credit and servicing loans, in accordance
with section 225.28(b)(1) of Regulation Y (12 C.F.R.
225.28(b)(1));
(2) Asset management, servicing, and collection activities
related to extending credit, and acquiring debt in default, in accordance with section 225.28(b)(2) of Regulation Y (12 C.F.R. 225.28(b)(2));
(3) Providing financial and investment advisory services,
in accordance with section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6));
(4) Providing securities brokerage, riskless principal, private placement, futures commission merchant, and
other agency transactional services, in accordance with
section 225.28(b)(7) of Regulation Y (12 C.F.R.
225.28(b)(7));
(5) Underwriting and dealing in government obligations
and money market instruments that state member banks
may underwrite or deal in under 12 U.S.C. §§ 24 and
335 ("bank-eligible securities"), and engaging as principal in investing and trading activities, in accordance
with section 225.28(b)(8) of Regulation Y (12 C.F.R.
225.28(b)(8));
(6) Underwriting and dealing in, to a limited extent, all
types of debt and equity securities that a member bank
may not underwrite or deal in, except for ownership
interests in open-end investment companies ("bankineligible securities"); and
(7) Acting as the general partner of certain private investment funds that invest only in assets in which a bank
holding company is permitted to invest.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (64
Federal Register 59,772 (1999)). 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 4(c)(8) of the BHC Act.
Companies are wholly owned subsidiaries of Paribas.
Paribas previously controlled Companies in reliance on
grandfather rights established by section 8(c) of the International Banking Act. BNP acquired its indirect ownership
interest in Companies in August 1999, as a result of its
acquisition through a public tender offer of 65.2 percent of
the voting shares of Paribas.1 Paribas's grandfather rights
1. BNP received the Board's approval under section 4(c)(9) of the
BHC Act to retain temporarily its indirect ownership interest in
Companies pending submission of this notice. See Letter from Robert
deV. Frierson, Associate Secretary of the Board, to Paul E. Glotzer,
Esq., dated July 28, 1999. After August 1999, BNP acquired an
additional 31.1 percent of the voting shares of Paribas through a
second public tender oifer. BNP has indicated that it intends to
119
under section 8(c) of the IBA terminated on consummation
of BNP's acquisition of Paribas.2 BNP and Paribas have
not merged with each other and remain separate foreign
banking organizations.
Paribas, with consolidated total assets of approximately
$299 billion, is the fifth largest banking organization headquartered in France and the 27th largest in the world.
Paribas operates branches in New York, New York, and
Chicago, Illinois; agencies in Los Angeles, California, and
Houston, Texas; and representative offices in San Francisco, California; Atlanta, Georgia; and Dallas, Texas.3
Before its acquisition of Paribas, BNP had consolidated
total assets of approximately $365 billion, and was the
third largest banking organization headquartered in France
and the 22nd largest banking organization in the world.4 In
light of its acquisition of Paribas, BNP has consolidated
total assets of approximately $655 billion and is the fourth
largest banking organization in the world. BNP directly
operates branches in New York, New York; Los Angeles
and San Francisco, California; and Chicago, Illinois; agencies in Miami, Florida, and Houston, Texas; and a representative office in Dallas, Texas. BNP also controls BancWest
Corporation, San Francisco, California, which itself controls Bank of the West, San Francisco, California, and First
Hawaiian Bank, Honolulu, Hawaii.
Paribas Corporation currently engages in bank-ineligible
securities activities in the United States. BNP also engages
in bank-ineligible securities activities in the United States
through its section 20 subsidiary, BNP Capital Markets,
LLC, New York, New York ("BNP Capital"). BNP has
stated that it currently intends to operate BNP Capital and
Paribas Corporation as separate corporate entities, although
it may decide to merge the two entities at some point in the
future. Accordingly, Notificants have applied to hold Paribas Corporation pursuant to section 4(c)(8) of the BHC
Act. BNP Capital and Paribas Corporation are, and would
continue to be, registered as broker-dealers with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.).
Accordingly, both are, and would continue to be, subject to
the recordkeeping and reporting obligations, fiduciary stan-
exercise its rights under French law to acquire the remaining
3.7 percent of Paribas' voting shares and thereby acquire all of
Paribas' voting shares.
2. Paribas also controls several other subsidiaries that engaged in
nonbanking activities in the United States pursuant to grandfather
rights established by section 8(c) of the IBA. BNP and Paribas must
conform all the activities currently conducted by Paribas in reliance
on section 8(c)of the IBA to the requirements of the BHC Act within
two years of the date that BNP acquired control of Paribas. See
12 U.S.C. § 3106(c)(2).
3. Because BNP and Paribas continue to operate in the same
corporate form, BNP's acquisition of Paribas did not result in the
establishment by BNP of any additional branches, agencies or representative offices in the United States for purposes of section 211.24 of
the Board's Regulation K (12 C.F.R. 211.24). BNP has provided the
Board notice of its acquisition of control of Paribas as required by
section 211.24(a)(4)(i) of Regulation K (12 C.F.R. 211.24(a)(4)(i)).
4. Asset data are as of June 30, 1999, and ranking data are as of
December 31, 1998, and reflect exchange rates then in eifect.
120
Federal Reserve Bulletin • February 2000
dards, and other requirements of the Securities Exchange
Act of 1934 and the SEC.
Underwriting and Dealing in Bank-Ineligible Securities
The Board has determined that, subject to the prudential
framework of limitations established in previous decisions
to address the potential for conflicts of interests, unsound
banking practices, or other adverse effects, underwriting
and dealing in bank-ineligible securities are so closely
related to banking as to be a proper incident thereto within
the meaning of section 4(c)(8) of the BHC Act.5 The Board
also has determined that underwriting and dealing in bankineligible securities is consistent with section 20 of the
Glass-Steagall Act (12 U.S.C. § 377), provided that the
company engaged in the activities derives no more than
25 percent of its gross revenues from underwriting and
dealing in bank-ineligible securities over a two-year period.6 Notificants have committed that they will conduct
their bank-ineligible securities underwriting and dealing
activities subject to the 25-percent revenue limitation and
the prudential limitations previously established by the
Board. As long as BNP Capital and Paribas Corporation
remain separate corporate entities, each will be independently subject to the 25-percent revenue limit on underwriting and dealing in bank-ineligible securities. As a condition of this order, BNP, Paribas, and Paribas Corporation
are required to conduct their bank-ineligible securities activities subject to the Operating Standards for section 20
subsidiaries.7
Other Activities Approved by Regulation or Order
The Board previously has determined by regulation or
order that engaging in credit and credit-related activities;
financial and investment advisory activities; securities brokerage, riskless principal, private placement, futures commission merchant, and other agency transactional services;
and bank-eligible securities underwriting and dealing, are
closely related to banking for purposes of section 4(c)(8) of
5. See Canadian Imperial Bank of Commerce, et al., 76 Federal
Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al,
75 Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities
Industry Ass 'n v. Board of Governors of the Federal Reserve System,
900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al, 73 Federal Reserve
Bulletin 473 (1987), aff'd sub nom. Securities Industry Ass'n v. Board
of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.
1988), cert, denied, 486 U.S. 1059 (1988) (collectively, "Section 20
Orders").
6. See Section 20 Orders. Compliance with the revenue limitation
shall be calculated in accordance with the method stated in the Section
20 Orders, as modified by the Order Approving Modifications to the
Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), and 10
Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries of
Bank Holding Companies Engaged in Underwriting and Dealing in
Securities, 61 Federal Register 48,953 (1996); and Revenue Limit on
Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies
Engaged in Underwriting and Dealing in Securities, 61 Federal
Register 68,750 (1996) (collectively, "Modification Orders").
7. 12 C.F.R. 225.200.
the BHC Act.8 In addition, the Board previously has determined by order that private investment fund activities are
permissible for bank holding companies when conducted
within certain limits.9 Notificants have committed that
these activities will be conducted in accordance with the
Board's regulations and prior Board decisions relating to
these activities.
Proper Incident to Banking Standard
In order to approve the proposal, the Board also must
determine that the proposed activities are a proper incident
to banking, that is, that performance of the proposed activities by Notificants "can reasonably be expected to produce benefits to the public . . . that outweigh possible
adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or
unsound banking practices."10 As a part of its evaluation of
these factors, the Board considers the financial condition
and managerial resources of the notificants and their subsidiaries and the effect the transaction would have on those
resources.11
The Board has carefully considered the financial resources of BNP and Paribas and notes that the capital ratios
of both satisfy applicable risk-based standards under the
Basle Capital Accord, and are considered equivalent to the
capital levels that would be required of a United States
banking organization. The Board also has reviewed the
capitalization of BNP, Paribas, and Paribas Corporation in
accordance with the standards set forth in the Section 20
Orders and finds the capitalization of each to be consistent
with approval. The Board's determination is based on all
the facts of record, including Notificants' projections of the
volume of bank-ineligible securities underwriting and dealing activities proposed to be conducted by Paribas Corporation.
The Board also has carefully reviewed the managerial
resources of the organizations involved in light of all the
facts of record, including confidential examination reports
concerning BNP Capital and Paribas Corporation, and the
Board's supervisory experience with both BNP and Paribas. As noted above, BNP currently controls BNP Capital,
which engages in underwriting and dealing in bankineligible securities pursuant to the Board's Section 20
Orders. The Board previously has determined that BNP
8. See 12 C.F.R. 225.28(b)(1), (2), (6), (7), and (8).
9. See Dresdner Bank AG, 84 Federal Reserve Bulletin 361 (1998).
The private investment fund activities in which Notificants propose to
engage consist of serving as the investment adviser to and the general
partner of, and holding and placing equity interests in, certain investment funds that invest only in securities and other instruments that
Notificants would be permitted to hold directly under the BHC Act
("private investment funds"). The investment funds would include
limited partnerships and similar investment vehicles such as limited
liability companies. Notificants also propose to act as a commodity
pool operator for private investment funds organized as commodity
pools that invest in assets which BNP would be permitted to hold
directly under the BHC Act.
10. See 12 U.S.C. § 1843(c)(8).
11 .See 12 C.F.R. 225.26.
Legal Developments
and BNP Capital have established appropriate policies and
procedures to ensure compliance with the Board's Section 20 Orders, including computer, audit, and accounting
systems, internal risk management controls, and the necessary operational and managerial infrastructure.12 Notificants have stated that the policies and procedures in place
at BNP and BNP Capital to ensure compliance with the
Board's Section 20 Orders and Operating Standards will be
implemented at Paribas Corporation. On the basis of these
and all other facts of record, including the commitments
provided in this case and the proposed managerial structure
and risk management systems of Paribas Corporation, the
Board has concluded that financial and managerial considerations are consistent with approval.
The Board also has carefully considered the competitive
effects of the proposed transaction under section 4 of the
BHC Act. As noted above, Paribas currently controls Companies. To the extent that BNP and Companies offer different types of nonbanking products, the proposed acquisition
would result in no loss of competition. In those markets in
which the nonbanking product offerings of BNP and Companies overlap, such as securities brokerage, underwriting
and dealing in bank-eligible and bank-ineligible securities,
and investment advisory activities, there are numerous
existing and potential competitors. Consummation of the
proposal, therefore, would have a de minimis effect on
competition in the market for those services. Based on all
the facts of record, the Board has concluded that the
proposal would not result in any significantly adverse
competitive effects in any relevant market.
As noted above, Notificants have committed that Paribas
Corporation will conduct its bank-ineligible securities underwriting and dealing activities in accordance with the
prudential framework established by the Board's Section 20 Orders. Under the framework and conditions established in this order and the Section 20 Orders, and based on
all the facts of record, the Board concludes that the proposed bank-ineligible underwriting and dealing activities
are not likely to result in significantly adverse effects.
Similarly, the Board concludes that the conduct of the other
proposed nonbanking activities by Notificants under the
framework and conditions established in this order, prior
orders, and Regulation Y is not likely to result in any
significantly adverse effects.
The Board also expects that the proposed acquisition
would provide added convenience to the customers of BNP
and Paribas. Notificants have indicated that the transaction
would strengthen the position of the combined organization in French, European, and international financial markets, and would allow the combined organization to diversify its sources of revenue. In addition, there are public
benefits to be derived from permitting capital markets to
operate so that bank holding companies can make potentially profitable investments in nonbanking companies and
from permitting banking organizations to allocate their
12. See Letter from Kenneth R. Binning, Federal Reserve Bank of
San Francisco, to Larry B. Sobin, dated December 2, 1998.
121
resources in the manner they consider to be most efficient
when such investments are consistent, as in this case, with
the relevant considerations under the BHC Act.
Based on all the facts of record, the Board has determined that performance of the proposed activities by Notificants, under the framework established in this and prior
decisions, can reasonably be expected to produce public
benefits that outweigh any reasonably expected adverse
effects of the proposal. Accordingly, the Board has determined that performance of the proposed activities by Notificants is a proper incident to banking for purposes of
section 4(c)(8) of the BHC Act.
Conclusion
Based on all the facts of record, the Board has determined
that the notice should be, and hereby is, approved, subject
to all the terms and conditions in this order and the Section 20 Orders, as modified by the Modification Orders.
The Board's approval of this proposal extends only to
activities conducted within the limitations of those orders
and this order, including the Board's reservation of authority to establish additional limitations to ensure that the
activities of Notificants are consistent with safety and
soundness, avoidance of conflicts of interests, and other
relevant considerations under the BHC Act. Underwriting
and dealing in any manner other than as approved in this
order and the Section 20 Orders (as modified by the Modification Orders) is not within the scope of the Board's
approval and is not authorized for Notificants or Paribas
Corporation.
In reaching its conclusion, the Board has considered all
the facts of record in light of the factors that the Board is
required to consider under the BHC Act and other applicable statutes. The Board's approval is specifically conditioned on compliance by Notificants with all the commitments made in connection with this notice, and on the
Board's receiving access to information on the activities or
operations of Notificants and any of their affiliates that the
Board determines to be appropriate to determine and enforce compliance by Notificants and their affiliates with
applicable federal statutes. The Board's approval also is
subject to all the conditions set forth in this order and in
Regulation Y, including those in sections 225.7 and
225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)),
and to the Board's authority to require such modification or
termination of the activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
ensure compliance with, and to prevent evasion of, the
provisions of the BHC Act and the Board's regulations and
orders issued thereunder. These commitments and conditions are deemed to be conditions imposed in writing by
the Board in connection with its findings and decision and,
as such, may be enforced in proceedings under applicable
law.
This transaction shall not be consummated later than
three months after the effective date of this order unless
such period is extended for good cause by the Board or by
122
Federal Reserve Bulletin • February 2000
the Federal Reserve Bank of San Francisco, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 20, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
First Security Corporation
Salt Lake City, Utah
Zions Bancorporation
Salt Lake City, Utah
Order Approving the Merger of Bank Holding
Companies
First Security Corporation ("First Security"), 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 merge with Zions Bancorporation ("Zions")
and thereby acquire the subsidiary banks of Zions.1 First
Security 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 Zions
and thereby engage in certain permissible nonbanking activities.2
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(64 Federal Register 48,839 (1999)).3 The time for filing
1. Zions controls the following subsidiary banks: Zions First
National Bank, Salt Lake City, Utah; National Bank of Arizona,
Phoenix, Arizona; California Bank & Trust, La Jolla, California
("Zions Bank-CA"); Vectra Bank Colorado, N.A., Denver, Colorado;
Nevada State Bank, Las Vegas, Nevada; and The Commerce Bank of
Washington, N.A., Seattle, Washington. First Security proposes to
acquire Zions by merging Zions with and into First Security.
2. The nonbanking activities in which Zions engages and for which
First Security has sought Board approval under section 4 of the BHC
Act are listed in Appendix A.
3. Several commenters contend that First Security provided insufficient notice of the proposed transaction to the residents of certain Utah
towns; residents of rural Arizona, Colorado, Nevada, and Washington;
and residents of the states of Idaho and New Mexico. One commenter
asks the Board to require First Security to publish notice of the
transaction in every banking market affected by the transaction. The
Board requires a bank holding company that proposes to merge with
another bank holding company to publish notice of the proposal in a
newspaper of general circulation in the communities containing the
head office of the largest subsidiary bank of the applicant and the head
office of each bank to be acquired by the applicant. 12 C.F.R.
262.3(b)(l)(ii)(E). The record indicates that First Security has complied with the Board's rules relating to publication.
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.4
First Security, with total consolidated assets of
$22.1 billion, is the 39th largest commercial banking organization in the United States, controlling less than 1 percent of the total assets of insured commercial banks in the
United States ("total U.S. banking assets").5 First Security's subsidiary banks operate in California, Idaho, Nevada,
New Mexico, Oregon, Utah, and Wyoming. First Security
is the largest commercial banking organization in Utah,
controlling deposits of $5.0 billion, representing approximately 28.9 percent of total deposits in insured depository
institutions in the state ("state deposits").6 First Security
also engages in a broad range of permissible nonbanking
activities in the United States, including underwriting and
dealing in debt and equity securities to a limited extent.
Zions, with total consolidated assets of $17.6 billion, is
the 47th largest commercial banking organization in the
United States, controlling less than 1 percent of total U.S.
banking assets. The subsidiary banks of Zions operate in
Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah, and Washington. Zions is the second largest
commercial banking organization in Utah, controlling deposits of approximately $3.4 billion, representing approximately 20 percent of state deposits. Zions also engages in a
range of permissible nonbanking activities in the United
States.
After consummation of the proposal, and after accounting for the proposed divestitures discussed in this order,
First Security would become the 24th largest commercial
banking organization in the United States, with total consolidated assets of approximately $38 billion, representing
less than 1 percent of total U.S. banking assets, and First
Security's subsidiary banks would operate in ten states.
First Security also would remain the largest commercial
banking organization in Utah, controlling deposits of
$6.4 billion, representing approximately 44 percent of state
deposits.
Factors Governing Board Review of Transaction
The BHC Act sets forth the factors that the Board must
consider when reviewing the formation of a bank holding
company or the acquisition of banks. These factors are the
competitive effects of the proposal in the relevant geographic markets; the financial and managerial resources
and future prospects of the companies and banks involved
in the proposal; the convenience and needs of the community to be served, including the records of performance
4. First Security and Zions also have acquired an option to acquire
up to 19.9 percent of each other's voting shares. The options would
expire on consummation of the proposal and would not be exercisable
by First Security or Zions without Board approval.
5. Asset data are as of June 30, 1999, and ranking data are as of
December 31, 1998.
6. Deposit data are as of June 30, 1998, adjusted to reflect subsequent mergers and acquisitions. In this context, depository institutions
include commercial banks, savings banks, and savings associations.
Legal Developments
under the Community Reinvestment Act (12 U.S.C.
§ 2901 et seq.) ("CRA") of the insured depository institutions involved in the transaction; and the availability of
information needed to determine and enforce compliance
with the BHC Act.7 In cases involving interstate bank
acquisitions, the Board also must consider the concentration of deposits in the nation and relevant individual states
on consummation of the proposal, as well as compliance
with other provisions of section 3(d) of the BHC Act.
The Board has considered these factors in light of a
comprehensive record that includes information provided
by First Security, confidential supervisory and examination
information, and publicly reported financial and other information. The Board also has considered information provided by public commenters in connection with the proposal.8
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. For purposes of the BHC Act, the home state of First
Security is Utah,9 and the subsidiary banks of Zions are
located in Arizona, California, Colorado, Idaho, Nevada,
New Mexico, Utah, and Washington.10 All the conditions
for an interstate acquisition enumerated in section 3(d) are
met in this case.11 In light of all the facts of record, the
7. In cases involving a foreign bank, the Board also must consider
whether the foreign bank is subject to comprehensive supervision and
regulation on a consolidated basis by its home country supervisor.
8. The Board received comments from 17 public commenters.
9. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of such company were the
largest on July 1, 1966, or the date on which the company became a
bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C).
In addition to the interstate aspects of this proposal, this transaction
involves the acquisition by First Security, whose home state is Utah,
of a bank whose home state also is Utah. The Board does not believe
that section 3(d) of the BHC Act applies to the acquisition by a bank
holding company of a bank with the same home state as the bank
holding company, except to the extent that the bank operates branches
outside its home state. In this case, Utah law expressly states that bank
affiliation transactions are not subject to any state-imposed deposit
caps. The transaction in Utah also appears otherwise to comply with
applicable Utah state law.
10. For purposes of section 3(d), the Board considers a bank to be
located in the states in which the bank is chartered, headquartered, or
operates a branch.
11. First Security is adequately capitalized and adequately managed,
as defined by applicable law. 12 U.S.C. § 1842(d)(1)(A). Each subsidiary bank of Zions has been in existence and operated continuously for
at least the period of time required by applicable state law. See
12 U.S.C. § 1842(d)(1)(B). On consummation of the proposal, First
Security and its affiliates would control less than 10 percent of the
total amount of deposits of insured depository institutions in the
United States, and less than 30 percent, or the appropriate percentage
established by applicable state law, of total deposits held by insured
depository institutions in the states (other than Utah, the home state of
First Security, and Idaho) in which the insured depository institutions
of First Security and Zions both operate. 12 U.S.C. § 1842(d)(2). First
Security would control more than 30 percent of total deposits held by
123
Board is permitted to approve the proposal under section 3(d) of the BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or would be
in furtherance of any attempt to monopolize the business of
banking in any relevant banking market. The BHC Act also
prohibits the Board from approving a proposed bank acquisition that would substantially lessen competition in any
relevant banking market, unless the Board finds that the
anticompetitive effects of the proposal are clearly outweighed in the public interest by the probable effect of the
proposal in meeting the convenience and needs of the
community to be served.12
The proposed merger of First Security and Zions would
combine two banking organizations that are among the
largest providers of banking services in a number of markets in the western United States. The Board has carefully
analyzed the likely effect of the transaction on competition
in each relevant banking market in light of all the facts of
record, including information collected by the Federal Reserve System, information provided by First Security and
other competitors in the relevant markets, information provided by the Department of Justice and other relevant
agencies, and public information. The Board also has carefully considered public comments submitted on the competitive effects of the proposal. In particular, commenters
contend that the merger would reduce competition for
banking services and result in higher fees and reduced
customer convenience. In addition, commenters claim that
the merger would have substantial anticompetitive effects
in the Salt Lake market, in other portions of Utah, and in
other states.
A. Definition of Banking
Markets
In order to determine the effect of a particular transaction
on competition, it is necessary to designate the area of
effective competition between the parties, which the courts
have held is decided by reference to the relevant "line of
commerce," or product market, and geographic market.
Some commenters contend that the competitive analysis
should focus on the impact of the merger on the markets
for consumer credit, small business loans, and large-scale
commercial banking. Commenters also suggest that the
relevant geographic market for analyzing the merger
should be regional or statewide.
insured depository institutions in Idaho. The state deposit cap contained in section 3(d) does not apply, however, if a transaction that
exceeds the cap is approved by the appropriate state bank supervisor.
In this case, the Idaho state bank supervisor has approved the transaction, and, consequently, the state deposit cap contained in section 3(d)
does not prevent the Board from approving the transaction. All other
requirements of section 3(d) of the BHC Act would be met on
consummation of the proposal.
12. 12 U.S.C. § 1842(c)(1).
124
Federal Reserve Bulletin • February 2000
Product Market. The Board and the courts consistently
have recognized that the appropriate product market for
analyzing the competitive effects of bank mergers and
acquisitions is the cluster of products (various kinds of
credit) and services (such as checking accounts and trust
administration) offered by banking institutions.13 According to the Supreme Court, the clustering of banking products and services facilitates convenient access to these
products and services, and vests the cluster with economic
significance beyond the individual products and services
that constitute the cluster.14 Several studies support the
conclusion that both businesses and households continue to
seek this cluster of services.15 Consistent with these precedents and studies, and on the basis of the facts of record in
this case, the Board concludes that the cluster of banking
products and services represents the appropriate product
market for analyzing the competitive effects of this proposal.
Geographic Market. In defining the relevant geographic
market, the Board consistently has sought to identify the
area in which the cluster of banking products and services
is provided by competing institutions and in which purchasers of the products and services seek to obtain these
products and services.16 In applying these standards to
bank acquisition proposals, the Board and the courts repeatedly have held that the geographic market for the
cluster of banking products and services is local in nature.17 In delineating the relevant geographic market in
which to assess the competitive effects of a bank merger or
acquisition, the Board reviews population density; worker
commuting patterns; the usage and availability of banking
products; advertising patterns of financial institutions; the
presence of shopping, employment, healthcare, and other
necessities; and other indicia of economic integration and
the transmission of competitive forces among banks.18
13. See Chemical Banking Corporation, 82 Federal Reserve Bulletin 239 (1996) ("Chemical"), and the cases and studies cited therein.
The Supreme Court has emphasized that it is the cluster of products
and services that, as a matter of trade reality, makes banking a distinct
line of commerce. See United States v. Philadelphia National Bank,
374 U.S. 321, 357 (1963) ("Philadelphia National"); accord United
States v. Connecticut National Bank, 418 U.S. 656 (1974); United
States v. Phillipsburg National Bank, 399 U.S. 350 (1969) ("Phillipsburg National").
14. See Phillipsburg National, 399 U.S. at 361.
15. Elliehausen and Wolken, Banking Markets and the Use of
Financial Services by Households, 78 Federal Reserve Bulletin 169
(1992); Elliehausen and Wolken, Banking Markets and the Use of
Financial Services by Small- and Medium-Sized Businesses, 76 Federal Reserve Bulletin 726 (1990).
16. See, e.g., Sunwest Financial Services, Inc., 73 Federal Reserve
Bulletin 463 (1987); Pikeville National Corporation, 71 Federal Re68 Federal
serve Bulletin 240 (1985); Wyoming Bancorporation,
Reserve Bulletin 313 (1982), aff'd 729 F.2d 687 (10th Cir. 1984).
17. See Philadelphia National, 374 U.S. at 357; Phillipsburg
National; First Union Corporation, 84 Federal Reserve Bulletin 489
(1998); Chemical; St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673 (1982) ("St. Joseph").
18. See Chemical; Crestar Bank, 81 Federal Reserve Bulletin 200,
201 n.5 (1995); Pennbancorp, 69 Federal Reserve Bulletin 548
(1983); St. Joseph.
In applying these factors and principles, the Board has
employed a methodology that defines a retail banking
market by identifying a market core as cities or counties
that contain substantial employment opportunities and then
grouping surrounding areas with significant patterns of
commuting to and other indicia of economic integration
with the market core. The criteria for adding communities
to the market delineation become more stringent as the
counties become more remote from the core. Following
this approach, the Board has identified 32 local banking
markets in four states in which First Security and Zions
compete.19 As noted above, several commenters and the
applicant question the appropriate definition of the Salt
Lake City banking market. The definition of the appropriate market is not contested by commenters or the applicant
in the other markets in which First Security and Zions
compete. The Board has, therefore, paid special attention
to defining the relevant geographic banking market in the
Salt Lake City area.
B. Relevant Geographic Banking Market for the
Salt Lake City Area
The three metropolitan areas of Salt Lake City, Ogden, and
Provo-Orem are located in a corridor known as the Wasatch Front in north-central Utah. First Security contends
that the appropriate geographic market for analyzing competition for banking services along the Wasatch Front is a
single market that combines the Salt Lake City, Ogden, and
Provo-Orem Ranally Metropolitan Areas ("RMA"s). 2 ° The
Board has concluded, however, that there are three separate
banking markets along the Wasatch Front:
(i) The Salt Lake City banking market (which comprises the Salt Lake RMA and the towns of Fruit
Heights, Grantsville, Kaysville, and Tooele);
(ii) The Ogden banking market (which comprises the
Ogden RMA, excluding the towns of Fruit Heights
and Kaysville); and
(iii) The Provo-Orem banking market (which comprises
the Provo-Orem RMA).21
19. A commenter argues that First Security and Zions have a
monopoly on automated teller machines at the Salt Lake airport and in
shopping malls in northern Utah. As discussed above, consistent with
past practices and legal precedents, the Board defines the relevant
product market to be the entire cluster of banking products and
services and defines the relevant geographic market more broadly than
a single building or commercial location.
20. An RMA is a privately defined compact geographic area with
relatively high population density that is linked by commuting, retail,
and wholesale trade patterns.
First Security also argues that, if the Board determines not to
combine the Salt Lake, Ogden, and Provo-Orem RMAs, the Board
should, at a minimum, combine the Salt Lake and Ogden RMAs for
purposes of its competitive analysis. A commenter requests that the
Board treat the Salt Lake City, Ogden, and Provo-Orem RMAs as
separate banking markets.
21. Rand McNally's forthcoming Commercial Atlas and Marketing
Guide will exclude the towns of Fruit Heights and Kaysville from the
Ogden RMA and include them in the Salt Lake City RMA.
Legal Developments
Numerous factors suggest that the Salt Lake City, Ogden, and Provo-Orem RMAs constitute separate banking
markets. First, large distances and lack of continuous economic development separate the cities in the three RMAs.
Ogden is approximately 36 miles north of Salt Lake City
and 16 miles from the boundary of the Salt Lake market.
Provo is approximately 46 miles south of Salt Lake City
and 22 miles from the boundary of the Salt Lake market.
Orem is approximately 38 miles south of Salt Lake City
and 14 miles from the boundary of the Salt Lake market.
The Board also notes that development between the ProvoOrem and Salt Lake RMAs is not continuous. Population
density and commercial development is low along the
interstate that connects Provo-Orem to Salt Lake, from
Lehi, about seven miles south of the border between the
Provo-Orem and Salt Lake RMAs, to Draper, about six
miles north of the border. Although the development between the Ogden and Salt Lake RMAs is more continuous,
the development is predominantly residential for several
miles on either side of the border between the two RMAs.
Moreover, although the amount of commuting between
the Salt Lake City RMA and the two other RMAs is
increasing, overall commuting levels remain low. Commuting data for 1990 from the U.S. Bureau of the Census
("Census Bureau") indicate that 10.8 percent of workers
residing in the Ogden RMA, and 7.2 percent of workers
residing in the Provo-Orem RMA, commute to jobs in the
Salt Lake market. More recent data on traffic flows between Ogden and Salt Lake and Provo-Orem and Salt Lake
indicate that the commuting rates between the RMAs have
increased since 1990. These more recent data suggest that
approximately 13 percent of workers residing in the Ogden
RMA and less than 10 percent of workers residing in the
Provo-Orem RMA commuted to jobs in the Salt Lake
market in 1998.
Other facts do not indicate that banking forces are transmitted throughout the Wasatch Front at this time. Rather,
the three RMAs appear to function as separate banking
markets. Based on all the facts of record, the Board believes that the relevant banking markets for considering the
effects of the proposal along the Wasatch Front are the
three separate banking markets surrounding the Salt Lake
City, Ogden, and Provo-Orem RMAs.
C. Competitive Analysis in Salt Lake City and
Other Banking Markets with Divestitures
As part of the proposal, First Security has committed to
divest 64 branches, which account for more than $2 billion
in deposits, in 21 markets in order to reduce the potential
for adverse effects on competition.22 After accounting for
22. With respect to each market in which First Security has committed to divest offices to mitigate the anticompetitive effects of the
proposal, First Security has committed to execute, before consummation of the acquisition of Zions, sales agreements for the proposed
divestitures with a purchaser determined by the Board to be competitively suitable, and to complete the divestitures within 180 days of
consummation of the acquisition of Zions. First Security also has
125
the proposed divestitures, consummation of the proposal
would be consistent with Board precedent and the Department of Justice Merger Guidelines ("DOJ Guidelines")23
in at least 16 of the 21 markets: Bonners Ferry, Burley,
Montpelier, and Twin Falls, Idaho; and Box Elder, Cedar
City, Delta, Ephraim, Logan, Moab, Monticello, Park City,
Price, Richfield, Roosevelt, and Vernal, Utah.24 In light of
these divestitures, the transaction would result in no increase in the HHI in the Bonners Ferry and Montpelier,
Idaho; and Delta, Ephraim, Moab, Monticello, Price, Richfield, Roosevelt, and Vernal, Utah, banking markets. In
addition, numerous competitors would remain in most of
these banking markets after consummation of the proposal.
In the five remaining banking markets involving divestitures, including the Salt Lake City market, consummation
of the proposal could increase the level of market concentration to levels that exceed the DOJ Guidelines. The
Board has conducted a careful review of the competitive
effects of the proposal in these markets, and considered
whether other factors either mitigate the competitive effects of the proposal in the markets or indicate that the
proposal would have a significantly adverse effect on competition in any of the markets. The number and strength of
factors necessary to mitigate the competitive effects of a
proposal depend on the level of concentration and size of
increase in market concentration.25
Salt Lake City, Utah. First Security operates the largest
of 21 depository institutions in the Salt Lake banking
market, and controls $2.7 billion in deposits, representing
33.6 percent of total deposits in depository institutions in
the market ("market deposits").26 Zions operates the seccommitted that, if it is unsuccessful in completing any divestiture
within 180 days of consummation, it will transfer the unsold branche s ) to an independent trustee that is acceptable to the Board and will
instruct the trustee to sell the branch(es) promptly to one or more
alternative purchasers acceptable to the Board. See BankAmerica
Corporation, 78 Federal Reserve Bulletin 338 (1992); United New
Mexico Financial Corporation, 11 Federal Reserve Bulletin 484
(1991). First Security also has committed to submit to the Board,
before consummation of the acquisition of Zions, an executed trust
agreement acceptable to the Board stating the terms of these divestitures.
23. See 49 Federal Register 26,823 (June 29, 1984). Under the DOJ
Guidelines, a market in which the post-merger Herfindahl-Hirschman
Index ("HHI") is less than 1000 points is considered to be unconcentrated. 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 postmerger HHI is at least 1800 and the merger increases the HHI by more
than 200 points. The Department of Justice has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limitedpurpose lenders and other nondepository financial entities.
24. These banking markets are discussed in Appendix D.
25. See NationsBank Corporation, 84 Federal Reserve Bulletin 129
(1998).
26. Market concentration calculations include deposits of thrift
institutions at 50 percent, except as discussed in the order. The Board
previously has indicated that thrift institutions have become, or have
the potential to become, significant competitors of commercial banks.
See Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 143
(1984). Thus, the Board has regularly included thrift deposits in the
126
Federal Reserve Bulletin • February 2000
ond largest depository institution in the market, and controls $1.7 billion in deposits, representing 20.6 percent of
market deposits. On a combined basis, First Security and
Zions would control approximately 54.2 percent of market
deposits, and the HHI would increase approximately 1388
points to 3204, an amount that would exceed the DOJ
Guidelines in a highly concentrated market.
In order to address the potential anticompetitive effects
of the proposal in the Salt Lake banking market, First
Security proposes to divest 17 branches in the market, with
$682 million in deposits (representing 8.4 percent of market deposits), to an out-of-market banking organization or
an in-market banking organization that currently controls
less than 6 percent of market deposits. This divestiture
represents almost one-half of the originally proposed increase in market share and would allow a new entrant to
become immediately competitive in the market or significantly enhance the market share of a small in-market
competitor.
In reviewing the competitive effects of the proposal in
the Salt Lake banking market and the adequacy of the
proposed divestiture, the Board also has taken into account
the structure of the market. In particular, the Board has
considered that one savings association operating in the
market provides a range of consumer, mortgage, and other
banking products and services and, through an affiliate,
serves as a significant source of commercial loans in the
market. Competition from this savings association closely
approximates competition from a commercial bank. On
this basis, the Board concludes that deposits controlled by
this organization should be weighted at 100 percent in
calculating market concentration under the DOJ Guidelines.27
Credit unions also are particularly active competitors in
the Salt Lake market.28 Although Utah credit unions are
membership organizations, numerous credit unions in the
Salt Lake market are open to all persons in the market or to
a substantial majority of the population of the market.
calculation of market share on a 50-percent weighted basis. See, e.g.,
First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991).
27. The Board previously has indicated that it may consider the
competitiveness of a savings association at a level greater than
50 percent of the savings association's deposits, if appropriate. See
Banknorth Group, Inc., 75 Federal Reserve Bulletin 703 (1989). After
the proposed merger and divestiture, and after taking into account the
deposits controlled by this thrift, First Security would control
45.9 percent of market deposits, and the HHI would increase by no
more than 713 points to a level that would not exceed 2529 points.
28. A commenter contends that the Board should not include the
deposits of any credit union in its antitrust analysis.
First Security also contends that the Board should include certain
Utah-chartered industrial loan companies in the Board's structural
analysis of the Salt Lake market. A commenter argues that the Board
should not include these companies in its analysis. The Board's use of
a 200-point increase in the HHI as a threshold in its competitive
analysis, rather than a lower level, reflects in part the competitive
influence of financial institutions other than banks. Because industrial
loan companies in Utah are primarily credit card institutions, take few
demand deposits, and generally do little lending in the local market,
the Board has determined not to include these companies more specifically in calculating market concentration in this case.
Significantly, these credit unions operate through streetlevel branches accessible to the public. On the basis of the
activities, open membership, branch operations, size, number, and market shares of credit unions in the market,29 the
Board concludes that credit unions exert a competitive
influence that mitigates in part the potential anticompetitive effects of the proposal.30
First Security argues that, for purposes of evaluating the
competitive factors in the Salt Lake market, the Board
should exclude certain categories of deposits that First
Security and Zions contend overstate their competitive
strength in the Salt Lake market.31 First Security contends
that these deposits either are unavailable for lending in the
Salt Lake market or represent deposits that are raised
outside the market or in a national market and are available
to support out-of-market banking activities. On this basis,
First Security argues that inclusion of these deposits in
calculations of the market share indices for First Security
and Zions in Salt Lake distorts the indices.32
The Board generally has not adjusted its market share
calculations in previous cases to exclude out-of-market
deposits because of the difficulty of making comparable
adjustments for other firms in the market and because
out-of-market deposits are typically available to support
lending and other banking activities at any location. The
Board has under very limited circumstances adjusted market indices to account for certain types of government
deposits, however, where special conditions limited the use
of the deposits. In this case, the Board continues to believe,
for the same reasons, that it is generally not appropriate to
exclude categories of deposits.
This case has unique circumstances, however, that reduce the difficulties of making an adjustment for a limited
number of out-of-market deposits. The comparability problem is less severe in this case than in past cases reviewed
by the Board because First Security and Zions are the only
two large banking organizations headquartered in the Salt
Lake market that appear to have generated significant outof-market deposits.33
29. Credit unions account for approximately 21 percent of total
deposits in the market.
30. Thirty-four credit unions compete with banks in the market.
Although these credit unions are a competitive force, the Board has
not considered them to be full competitors of banks because they do
not provide the full range of banking products and services. If the
Board were to include the deposits of these 34 credit unions in the
market and weight them at 50 percent, the HHI for the Salt Lake
market would increase by no more than 571 points to 2036, and First
Security would have a post-merger market share of approximately
41 percent.
31. One commenter contends that the Board should not exclude any
such deposits.
32. The categories of deposits that First Security proposes to exclude are deposits relating to mortgage escrow accounts, correspondent banking accounts, certificates of deposit ("CD"s) in amounts
greater than $100,000, brokered CDs, trust accounts, and out-ofmarket commercial and retail accounts.
33. Firms ranked third through seventh in the market are large
organizations headquartered in other states that would be unlikely to
have any out-of-market deposits booked in the Salt Lake market. The
Legal Developments
The Board continues to believe that deposits maintained
by a banking organization in a specific market, including
deposits generated outside the market, represent an important measure of the banking organization's capacity to
compete in that market.34 First Security and Zions have
generated some deposits from out-of-market sources, however, that are subject to legal or other restrictions that
constrain the organizations' ability to use the deposits to
support their general banking activities. These deposits
have been generated from various governments and municipalities outside Utah, involve escrow accounts for mortgages made outside Utah, or represent correspondent banking accounts with institutions outside Utah. With each of
these deposit types, First Security and Zions are limited by
law, contract, or duration of relationship in their ability to
use the deposits for any activity other than supporting the
deposit account. Because of the limited availability of
these deposits and because the data suggest that making
adjustments for First Security and Zions would not distort
market calculations for other competitors in the Salt Lake
market, the Board has taken into account as a mitigating
factor this limited set of out-of-market deposits in this
case.35
The presence of other bank competitors also is an important factor in this market. At least 20 depository institutions
would remain in the market after consummation of the
proposal, including four bank holding companies and one
savings association holding company that each have more
than $80 billion in assets. The second and third largest
depository institutions in the market are among the largest
commercial banking organizations in the United States.
These organizations would control approximately 10.2 percent and 8.2 percent, respectively, of market deposits.
In addition, the Salt Lake market is attractive for entry
by out-of-market competitors. According to the Census
Bureau, the population of the Salt Lake City RMA increased 14.5 percent from 1990 to 1998, which was significantly higher than the national rate. The increase in employment between 1990 and 1998 was 28 percent, which
was over twice the national rate. Moreover, in 1998, the
Salt Lake City unemployment rate was 3.9 percent, which
was below the national rate of 4.5 percent.
Based on all the facts of record, the Board concludes that
the considerations discussed above, including the proposed
divestitures, the number and strength of competitors in the
largest firm, other than First Security and Zions, with its headquarters
in the market controls only 2.5 percent of market deposits.
34. Exclusion of out-of-market deposits from an analysis of the
competitive strength of an organization in the market where the
deposits are maintained would incorrectly suggest that these deposits
are unavailable to support the organization's activities in the market. It
would also lead to the anomaly that certain types of out-of-market
deposits are not counted in any part of the competitive analysis even
though these deposits are available to support banking activities
anywhere.
35. If government trust, mortgage escrow, and correspondent banking deposits originated by First Security and Zions outside Utah but
held in the Salt Lake market were excluded from market calculations,
the HHI for the market would increase by no more than 523 points to
a level that does not exceed 1927.
127
market, the strong presence of bank-like credit unions, the
distortional effects of out-of-market deposits, the attractiveness of the market for entry by out-of-market competitors,
and other factors mitigate the potentially adverse competitive effects in the Salt Lake City banking market.
Ogden, Utah. First Security operates the largest of
13 depository institutions in the Ogden banking market,
and controls $450 million in deposits, representing 36.8
percent of market deposits. Zions operates the fourth largest depository institution in the market, and controls $116
million in deposits, representing 9.5 percent of market
deposits. First Security proposes to divest three branches in
the market, with $77 million in deposits (representing
approximately 6.3 percent of market deposits). After the
proposed merger and divestiture, First Security would continue to Operate the largest depository institution in the
market, controlling 39.9 percent of market deposits, and
the HHI would increase by less than 393 points to a level
that does not exceed 2382.36
Several factors suggest that the increase in market concentration in the Ogden market, as measured by the HHI,
does not reflect a significantly adverse effect on competition in the market. At least twelve depository institutions
would remain in the market after consummation of the
proposal, including four large multistate banking organizations other than First Security. In addition, at least two
banking organizations other than First Security would each
control more than 10 percent of market deposits, and five
banking organizations other than First Security would each
control more than 5 percent of market deposits, after consummation. As noted above, First Security has committed
to divest branches controlling 6.3 percent of market deposits. The proposed divestiture would either add a new competitor or would enhance the competitive presence of a
smaller competitor.
In addition, the Ogden banking market has characteristics that make it attractive for entry. The population of the
market increased by 16 percent from 1990 to 1998, which
was almost double the national rate. Employment in the
market increased by 27 percent during the same time
period, more than double the national rate. One firm entered the Ogden market de novo in 1997.
Moreover, as in the case of the Salt Lake banking
market, credit unions have a significant presence in the
Ogden market, and many credit unions are uniquely open
and accessible to all or almost all persons in the market. In
particular, eight credit unions have membership rules based
on geography or other characteristics that allow a substantial majority of the residents in the market to be members,
36. As in the Salt Lake market and for the same reasons, competition from one savings association operating in the Ogden market
closely approximates competition from commercial banks in the market. Accordingly, the Board has weighted deposits controlled by this
organization at 100 percent in calculating market concentration under
the DOJ Guidelines.
128
Federal Reserve Bulletin • February 2000
and maintain street-level branches that are accessible to the
public.37
Provo-Orem, Utah. First Security operates the second
largest of 14 depository institutions in the Provo-Orem
banking market, and controls $535 million in deposits,
representing 29.9 percent of market deposits. Zions operates the largest depository institution in the market, and
controls $536 million in deposits, representing 30 percent
of market deposits. First Security proposes to divest eight
branches in the market, with $359 million in deposits
(representing approximately 20.1 percent of market deposits) to an out-of-market banking organization or an
in-market banking organization that currently controls
2.4 percent or less of market deposits. After the proposed
merger and divestiture, First Security would operate the
largest depository institution in the market, controlling
39.8 percent of market deposits, and the HHI would increase by less than 292 points to a level that does not
exceed 2383.38
In reviewing the competitive effects of the proposal in
this market, the Board has considered that a significant
portion of the HHI increase resulting from the proposed
transaction is caused by the fact that the divested branches
control a large amount of deposits. If First Security were to
divest the branches, which represent approximately
20 percent of market deposits and two-thirds of the deposits being acquired by First Security in the market, as a unit
to an out-of-market firm, the proposal would be consistent
with the DO J Guidelines.39 The Board believes that sale of
these branches substantially mitigates the potential anticompetitive effects of the proposal by helping to create a
viable competitor to First Security in the market. Sale of
these branches to an in-market competitor that currently
has only a nominal market share would have similar benefits to an out-of-market sale.
At least 13 depository institutions would remain in the
market after consummation of the proposal, including four
large multistate banking organizations other than First Security. At least three banking organizations other than First
Security would control more than 10 percent of market
deposits after consummation. As noted above, First Security's proposed divestiture of approximately 20 percent of
market deposits would either add a strong new competitor
or would enhance substantially the competitive presence of
a smaller competitor.
37. If the deposits of these credit unions were included in market
share calculations at 50 percent, the HHI for the Ogden market would
increase by no more than 207 points to a level that does not exceed
1612.
38. As in the Salt Lake market and for the same reasons, competition from one savings association operating in the Provo-Orem market
closely approximates competition from commercial banks in the market. Accordingly, the Board has weighted deposits controlled by this
organization at 100 percent in calculating market concentration under
the DOJ Guidelines.
39. If First Security were to divest the relevant Provo-Orem
branches to an out-of-market firm, the HHI would increase by 195
points to 2286.
In addition, the Provo-Orem banking market has characteristics that make it attractive for entry. The population of
the market increased by 21 percent from 1990 to 1998.
Recent entries by depository institutions also confirm that
the Provo-Orem banking market is attractive for entry.
Three firms have entered the market de novo since 1993.
Moreover, as in the case of the Salt Lake banking
market, credit unions have a significant presence in the
Provo-Orem market, and many credit unions are uniquely
open and accessible to all or almost all persons in the
market. In particular, ten credit unions have membership
rules based on geography or other characteristics that allow
a substantial majority of the residents in the market to be
members, and maintain street-level branches that are accessible to the public.40
St. George, Utah. First Security operates the second
largest of 11 depository institutions in the St. George
banking market, and controls $241 million in deposits,
representing 39 percent of market deposits. Zions operates
the largest depository institution in the market, and controls $245 million in deposits, representing 39.6 percent of
market deposits. First Security proposes to divest four
branches in the market, with $221 million in deposits
(representing approximately 35.7 percent of market deposits). After the proposed merger and divestiture, First Security would operate the largest depository institution in the
market, controlling 42.8 percent of market deposits, and
the HHI would increase by less than 325 points to a level
that does not exceed 3471.
As in the Provo-Orem market, the Board has considered
that a significant portion of the HHI increase in the St.
George market is caused by the fact that the divested
branches control a large amount of deposits. In fact, in this
market, First Security proposes to divest almost all of the
deposits held by Zions in the market, with the result that
the market share controlled by First Security would increase by less than 4 percent as a result of the proposed
merger and divestiture. If First Security were to divest the
branches, which represent approximately 36 percent of the
market, as a unit to an out-of-market firm, the proposal
would be consistent with the DOJ Guidelines 41 The Board
believes that sale of these branches substantially mitigates
the potential anticompetitive effects of the proposal by
helping to create a viable competitor to First Security in the
market. The sale of these branches to an in-market competitor that currently has only a nominal market share would
have benefits similar to an out-of-market sale.
At least ten depository institutions would remain in the
market after consummation of the proposal, including two
large multistate banking organizations other than First Se-
40. If the deposits of these credit unions were included in market
share calculations at 50 percent, the HHI for the Provo-Orem market
would increase by no more than 254 points to a level that does not
exceed 2082. Credit unions without the characteristics discussed above
control approximately 12 percent of market deposits.
41. If First Security were to divest the relevant St. George branches
to an out-of-market firm, the HHI would increase by 25 points to
3171.
Legal Developments
curity. In addition, the St. George banking market has
characteristics that make it attractive for entry. The population of the market increased by 69 percent from 1990 to
1998, making the St. George area one of the fastestgrowing regions by population in Utah. Recent entries by
depository institutions also confirm that the St. George
banking market is attractive for entry. Five firms have
entered the market de novo since 1993.
Moreover, as in the case of the Salt Lake banking
market, credit unions have a significant presence in the St.
George market, and many credit unions are uniquely open
and accessible to all or almost all persons in the market. In
particular, five credit unions have membership rules based
on geography or other characteristics that allow a substantial majority of the residents in the market to be members,
and maintain street-level branches that are accessible to the
public.42
Lewiston, Idaho. First Security operates the largest of
eight depository institutions in the Lewiston banking market, and controls $115 million in deposits, representing
27.4 percent of market deposits. Zions operates the seventh
largest depository institution in the market, and controls
$17 million in deposits, representing 4.1 percent of market
deposits. First Security proposes to divest one branch in the
market, with $9.7 million in deposits (representing approximately 2.3 percent of market deposits). After the proposed
merger and divestiture, First Security would continue to
operate the largest depository institution in the market,
controlling 29.1 percent of market deposits, and the HHI
would increase by less than 214 points to a level that does
not exceed 2128.
Several mitigating factors suggest that the increase in
market concentration in the Lewiston market, as measured
by the HHI, does not reflect a significantly adverse effect
on competition in the market. At least seven depository
institutions would remain in the market after consummation of the proposal, including two large multistate banking
organizations other than First Security. In addition, at least
two banking organizations other than First Security would
control more than 10 percent of market deposits and at
least five banking organizations other than First Security
would control more than 5 percent of market deposits after
consummation. As noted above, First Security has committed to divest one branch controlling 2.3 percent of market
deposits. The proposed divestiture would either add a new
competitor or would enhance the competitive presence of a
smaller competitor.
In addition, the Lewiston banking market has characteristics that make it attractive for entry. The population of the
market increased by 13 percent from 1990 to 1998. Moreover, two firms have entered the Lewiston market de novo
since 1995.
42. If the deposits of these credit unions were included in market
share calculations at 50 percent, the HHI for the St. George market
would increase by no more than 250 points to a level that does not
exceed 2709.
D. Competitive Analysis of Banking
without Divestitures
129
Markets
Consummation of the proposal without divestitures would
be consistent with Board precedent and the DOJ Guidelines in ten of the remaining 11 banking markets: Los
Angeles and Riverside-San Bernardino, California; Blackfoot, Boise, Idaho Falls, Moscow-Pullman, Ontario, and
Pocatello, Idaho; and Carson City and Reno, Nevada 43
Las Vegas, Nevada. Consummation of the proposal
would exceed the DOJ Guidelines as measured by the HHI
in the Las Vegas, Nevada, banking market. First Security
operates the fourth largest of 19 depository institutions in
the Las Vegas banking market, and controls $879 million
in deposits, representing 9.1 percent of market deposits.
Zions operates the third largest depository institution in the
market, and controls $1.1 billion in deposits, representing
11.2 percent of market deposits. After consummation of
the proposal, First Security would operate the third largest
depository institution in the market, controlling 20.3 percent of market deposits, and the HHI would increase by
203 points to 2096.
Numerous mitigating factors suggest that the increase in
market concentration in the Las Vegas market, as measured
by the HHI, does not reflect a significantly adverse effect
on competition in the market. At least 18 depository institutions would remain in the market after consummation of
the proposal. Several large multistate banking organizations, other than First Security, would compete in this
market, including one organization that would remain the
largest depository institution in the market with 30.2 percent of market deposits, and another organization that
would remain the second largest depository institution in
the market with 26.5 percent of market deposits.
In addition, the Las Vegas banking market has characteristics that make it attractive for entry. The population of
Las Vegas increased 56 percent from 1990 to 1998, which
was more than six times the national rate. Employment
increased 51 percent between 1990 and 1998, which was
more than four times the national rate of 12 percent.
During the last decade, the Las Vegas unemployment rate
has been consistently low compared with the national rate.
Recent entries by depository institutions also confirm that
the Las Vegas banking market is attractive for entry. Eight
of the 19 depository institutions in the market entered
de novo since 1994. Three depository institutions have
entered by acquisition in the past five years, and another
group has an application to organize a de novo bank
pending before the state banking authority.
The Board believes that these considerations and other
factors mitigate the potentially adverse competitive effects
of the proposal in the Las Vegas banking market.
43. These banking markets are discussed in Appendix C.
130
Federal Reserve Bulletin • February 2000
E. Views of Other Agencies and Conclusion
The Department of Justice also has conducted a detailed
review of the expected competitive effects of the proposal.
The Department of Justice has advised the Board that, in
light of the proposed divestitures, consummation of the
proposal would not be likely to have a significantly adverse
effect on competition in any relevant banking market. The
Office of the Comptroller of the Currency ("OCC") and
the Federal Deposit Insurance Corporation ("FDIC") have
been afforded an opportunity to comment and have not
objected to consummation of the proposal.
After carefully reviewing all the facts of record, including public comments on the competitive effects of the
proposal, and for the reasons discussed in the order and
appendices, the Board concludes that consummation of the
proposal would not be likely to result in a significantly
adverse effect on competition or on the concentration of
banking resources in any of the 32 markets in which First
Security and Zions both compete, or in any other relevant
banking market. Accordingly, based on all the facts of
record and subject to completion of the proposed divestitures, the Board has determined that competitive factors
are consistent with approval of the proposal.
Financial, Managerial and Other Supervisory Factors
The Board has carefully considered the financial and managerial resources and future prospects of the companies
and banks involved in the proposal and other supervisory
factors in light of all the facts of record, including public
comments.44 In evaluating the financial and managerial
factors, the Board has reviewed relevant reports of examination and other supervisory information prepared by the
Federal Reserve Bank of San Francisco ("Reserve Bank")
and other federal financial supervisory agencies. The Board
also has reviewed information submitted by First Security
about the programs that First Security and Zions have
implemented to prepare their systems for the Year 2000,
and confidential examination and supervisory information
assessing the efforts of the two banking organizations to
ensure Year 2000 readiness, both before and after consummation of the proposed transaction.
In evaluating financial factors in expansion proposals by
banking organizations, the Board consistently has considered capital adequacy to be especially important.45 The
Board expects banking organizations contemplating expansion to maintain strong capital levels substantially in excess of the minimum levels specified in the Board's Capital
44. Several commenters express concerns about the financial and
managerial resources of First Security and Zions. The comments
include contentions that the financial strength of Vectra Bank Colorado, N.A., has declined since its acquisition by Zions and that the
merger would add an unresponsive layer of management above Vectra
Bank. Another commenter alleges that an officer of Zions may have
violated the insider trading rules of the Securities and Exchange
Commission ("SEC"), and that comment was sent to the SEC.
45. See Banc One Corporation, 84 Federal Reserve Bulletin 961
(1998).
Adequacy Guidelines. The Board notes that First Security
and Zions and their subsidiary banks are well capitalized
and would remain so on consummation of the proposal.
The Board has considered that the proposed merger is
structured as a stock-for-stock transaction and would not
increase the debt service requirements of the combined
organization.
The Board also has carefully considered the managerial
resources of First Security and Zions and the record of the
federal banking agencies in supervising these organizations
in light of all the facts of record, including confidential
examination and other supervisory information.46 Based on
all the facts of record, the Board concludes that considerations relating to the financial and managerial resources
and future prospects of the organizations involved are
consistent with approval, as are the other supervisory factors that the Board must consider under section 3 of the
BHC Act.47
Convenience and Needs Factor
The Board also has carefully considered the effect of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record, including
comments received on the effect the proposal would have
on the communities to be served by the combined organization.48
A. CRA Performance Examinations
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the CRA. As
provided in the CRA, the Board evaluates the record of
performance of an institution in light of examinations by
the appropriate federal supervisors of the CRA performance records of the relevant institutions. An institution's
most recent CRA performance evaluation is a particularly
important consideration in the applications process because
it represents a detailed, on-site evaluation of the institu-
46. Commenters express dissatisfaction with an alleged lack of
diversity in the current staff and management of First Security and
Zions. The racial and gender composition of staff and management are
not factors the Board is authorized to consider under the BHC Act.
47. Commenters note that First Security and Zions are defendants in
several pending judicial proceedings. There has been no adjudication
of wrongdoing by First Security or Zions in any of these matters, and
each matter currently is pending before a forum that can provide the
plaintiffs adequate redress if their allegations can be sustained.
48. One commenter opposes the proposal based in part on an
unfavorable experience with First Security Bank in a particular business dealing and on a belief that the merger would reduce the amount
of capital available to small businesses. The Board has reviewed this
comment in light of all the facts of record, including the records of
First Security and Zions of assisting to meet the credit needs of small
businesses. The Board also has provided a copy of this comment to
the OCC, the primary federal supervisor of First Security Bank.
Legal Developments
tion's overall record of performance under the CRA by its
appropriate federal supervisor.49
All of First Security's subsidiary banks received either
"outstanding" or "satisfactory" ratings at the most recent
examinations of their CRA performance. In particular, First
Security Bank, N.A., Ogden, Utah ("First Security Bank"),
which represents approximately 76 percent of the assets
controlled by First Security and is First Security's lead
bank, received an "outstanding" rating from the OCC, as
of June 30, 1996 (the "First Security Examination").50 All
the subsidiary banks of Zions also received either "outstanding" or "satisfactory" ratings at their most recent
CRA examinations. In particular, Zions First National
Bank, Salt Lake City, Utah ("Zions Bank"), which is
Zions' lead bank and represents approximately 37 percent
of the assets controlled by Zions, received an "outstanding" rating from the OCC at its most recent examination,
as of July 25, 1997 (the "Zions Examination").51
Examiners found no evidence of prohibited discrimination or other illegal credit practices at First Security Bank
or Zions Bank and identified no violations of fair lending
laws. Examiners also reviewed the assessment areas delineated by the depository institutions and found that these
assessment areas were reasonable and did not arbitrarily
exclude low- to moderate-income ("LMI") areas.
49. See Interagency Questions and Answers Regarding Community
Reinvestment, 64 Federal Register 23,618 and 23,641 (1999).
50. First Security Bank of New Mexico, N.A., Albuquerque, New
Mexico, received an "outstanding" CRA performance rating from the
OCC, as of December 6, 1995; and First Security Bank of Nevada,
Las Vegas, Nevada, received a "satisfactory" CRA rating from the
Reserve Bank, as of January 11, 1999. Although First Security Bank
of California, N.A., West Covina, California, has not yet been examined for CRA performance, its two predecessor banks received "satisfactory" CRA performance ratings from their appropriate federal
financial supervisory agency: California State Bank, West Covina,
California, received a "satisfactory" CRA performance rating from
the FDIC, as of July 22, 1996; and Marine National Bank, Irvine,
California, received a "satisfactory" CRA performance rating from
the OCC, as of September 6, 1996.
51. Nevada State Bank received an "outstanding" CRA performance rating from the FDIC, as of May 17, 1999; National Bank of
Arizona received a "satisfactory" rating from the OCC, as of May 3,
1999; Vectra Bank received an "outstanding" CRA rating from the
Federal Reserve Bank of Kansas City, as of September 30, 1996; and
The Commerce Bank of Washington, N.A., received a "satisfactory"
CRA rating from the OCC, as of June 25, 1996. Although Zions
Bank-CA has not yet been examined for CRA performance, all its
predecessor banks received "satisfactory" CRA performance ratings
from their appropriate federal financial supervisory agency: Grossmont Bank, San Francisco, California, received a "satisfactory" CRA
performance rating from the FDIC, as of August 28, 1996; First
Pacific National Bank, Escondido, California, received a "satisfactory" CRA performance rating from the OCC, as of October 31, 1996;
Sumitomo Bank of California, San Francisco, California, received a
"satisfactory" CRA performance rating from the FDIC, as of September 12, 1996; and Regency Bank, Fresno, California, received a
"satisfactory" CRA performance rating from the Reserve Bank, as of
February 16, 1999.
131
B. First Security's CRA Performance Record
In the First Security Examination, examiners found that the
bank demonstrated an excellent response to the primary
credit needs of its communities.52 Examiners noted that the
bank responded to its communities' credit needs by providing conventional and government-insured real estate mortgages, home improvement loans, farm loans, small business loans, and government-guaranteed student loans.
Examiners also concluded that the bank originated a high
volume of loans in its delineated communities. From January 1, 1995, through June 30, 1996, the period covered by
the examination ("assessment period"), First Security
Bank extended 93 percent (by dollar) of its mortgage loans
and 82 percent (by dollar) of its small business and farm
loans in its delineated communities.
Moreover, examiners noted that the bank's loan-todeposit ratio was 106 percent, as of June 30, 1996, which
was substantially above the peer bank's average of
90 percent; and that the bank extended a significant volume
of mortgage loans relative to the bank's resources, market
competition, and the credit needs of the community. Examiners indicated that the bank originated more than
$275 million of government-insured mortgages in Utah
and Idaho during the assessment period.53 In addition,
during 1997 and 1998, First Security Bank made more than
2,160 HMDA-reportable loans, totaling approximately
$117 million, to LMI borrowers in the Metropolitan Statistical Area ("MSA") portions of its Utah assessment areas,
representing approximately 27 percent of all HMDAreportable loans made by First Security in such areas.
Examiners also noted that the bank's volume of small
business and farm loans originated during the assessment
period was high. As of June 30, 1996, the bank had
outstanding $700 million in small business loans; small
business and farm loans represented more than 10 percent
of the bank's total outstanding loan portfolio. The bank
also made 385 Small Business Administration ("SBA")
loans, totaling $53.2 million, during the assessment period,
and had preferred lender status with the SBA. In addition,
during 1997 and 1998, First Security Bank originated
approximately 5,800 small business and small farm loans,
totaling approximately $560 million, in its Utah assessment areas; and more than 80 percent of the small business
loans of First Security Bank were made to businesses with
less than $1 million in annual revenues, and approximately
22 percent were made to businesses in LMI census tracts.
The First Security Examination also indicated that the
bank demonstrated a strong commitment to direct and
indirect community development. Examiners stated that
52. In the First Security Examination, examiners also considered the
loan originations of Crossland Mortgage Company, a subsidiary of
First Security Bank.
53. First Security Bank is an active participant in the Utah and
Idaho Housing Finance Agency programs. In both states, the bank is
the largest participating lender by dollar and number of loans. During
the assessment period, the bank originated $85 million through the
Utah Housing Finance Agency and $42 million through the Idaho
Housing Finance Agency.
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Federal Reserve Bulletin • February 2000
the bank had taken a leadership role in 19 community
development projects from September 1994 to June 1996,
which resulted in the construction of 706 new LMI housing
units in Idaho and Utah. In Idaho, the bank was one of ten
financial institutions participating in the Idaho Community
Reinvestment Corporation ("ICRC"), a statewide organization providing housing for LMI persons. Through the
ICRC, the bank participated in nine housing projects,
which provided a total of 478 new housing units for LMI
persons, and provided $2.9 million in loans. The bank also
made $3.4 million of debt and equity investments in an
80-unit, low-income housing complex for elderly residents
of Salt Lake City and $1.8 million in debt and equity
investments in the Oak Park Project, which was developing
142 affordable housing units in Boise, Idaho, in cooperation with the Idaho Housing Agency and the City of Boise.
C. Zions' CRA Performance Record
The Zions Examination reported that Zions Bank had a
strong record of ascertaining the credit needs of its communities, including LMI neighborhoods, and had implemented
an effective program to meet those credit needs. Examiners
noted that the bank had originated a significant volume of
mortgage, consumer, and small business loans in its delineated community.54
Zions Bank originated more than 11,500 HMDAreportable loans, totaling approximately $1 billion, in its
delineated community during the assessment period.55 In
1996, 89 percent of its mortgage loans (88 percent by
volume) were originated in the bank's delineated community. Examiners indicated that the bank also offered affordable housing products to help meet the needs of LMI
individuals, including the Federal National Mortgage Association ("FNMA")'s "Good Neighbor" Loan Program,
several Department of Housing and Urban Development
Native American loan programs, the FNMA Rural Housing Direct Leveraging Program, the FNMA Fixed Term
Community Home Improvement Loan, and the FNMA
Fixed Term Home Improvement Loan. Down payments
and underwriting criteria for these programs were generally more flexible than for conventional mortgage products.56 Examiners further noted that Zions Bank was an
active participant in Federal Housing Administration, Veterans Administration, Utah Housing Finance Authority,
and other government-insured real estate lending programs. In addition, examiners indicated that the bank had
been a significant provider of mortgage loans to LMI
individuals.
54. The lending activities of Zions Mortgage Company, at the time a
subsidiary of Zions Bank, were also considered by the examiners who
conducted the Zions Examination.
55. The Zions Examination reviewed Zions Bank's activities during
1995, 1996, and through July 25, 1997. During this period, the bank's
assessment area consisted of the entire state of Utah.
56. Zions Bank also initiated a consumer loan program designed for
LMI persons. The program extends loan maturities by up to
12 months and employs more flexible underwriting standards.
Zions Bank has remained an active mortgage lender to
LMI individuals since the Zions Examination. During 1997
and 1998, Zions Bank made more than 2,140 HMDAreportable loans, totaling approximately $146 million, to
LMI borrowers in the MSA portions of the bank's Utah
assessment area, representing approximately 23 percent of
all HMDA-reportable loans made by Zions Bank in such
areas.
In 1996, Zions Bank originated approximately 1,960
small business loans, totaling $199 million. Small business
loans represented 26 percent (by number) and 46 percent
(by dollar volume) of the total commercial loans originated
by the bank during 1996. Seventy-eight percent of the
bank's 1996 small business loans were in amounts of less
than $100,000. In addition, more than 98 percent of the
bank's small business loans in 1996 were originated in its
delineated community. In 1996, Zions Bank originated 583
farm loans, totaling $27.4 million. Of these loans, 542 (93
percent by number) and $24.4 million (89 percent by dollar
volume) were to small farms. The bank also was an active
participant in SBA lending programs. Examiners noted that
the percentage of the bank's small business loans in LMI
census tracts compared favorably with the distribution of
LMI census tracts in the bank's community.
Zions Bank also has extended a significant number of
small business and small farm loans since the Zions Examination. First Security has indicated that, during 1997 and
1998, Zions Bank originated approximately 13,500 small
business and small farm loans, totaling $1.38 billion; and
from August 1, 1997, to December 31, 1998, more than
76 percent of the small business loans of the bank were in
amounts of $100,000 or less, and approximately 26 percent
were made to businesses in LMI census tracts.
The Zions Examination also concluded that Zions Bank
was a leader in providing community development loans,
investments, grants, and services to its delineated community. Examiners noted, in particular, that the bank made
approximately $800,000 in loans and committed more than
$700,000 in low-income housing tax credits to Blue Mountain Dine, a project designed to build 20 modular housing
units for elderly low-income Native Americans not residing on the reservation. The bank also invested $389,000 in
Crimson Court and $468,000 in Washington Mill, two
low-income housing projects in Provo and Park City, Utah,
respectively. In addition, the bank had invested $4 million
through mid-1997 in Wasatch Venture Capital Corporation, a small business investment company formed by the
bank to provide loans to start-up companies.
First Security and Zions have banks that operate in
various other states, including Arizona, California, Colorado, Nevada, New Mexico, Oregon, Washington, and
Wyoming. The banking assets of First Security and Zions
in these states are small compared to their total banking
assets.57 Examinations of the CRA performance of the
57. Although First Security and Zions have a sizable presence in
California, both companies are relatively new entrants to the state.
First Security entered the state in 1998, and Zions entered the state in
Legal Developments
subsidiary banks of First Security and Zions operating in
these states found no evidence of prohibited discrimination
or other illegal credit practices.58
D. HMDA Data
The Board also has considered First Security's and Zions'
lending record in light of comments regarding the HMDA
data of the organizations' subsidiaries.59 The 1997 and
1998 data indicate that First Security Bank originated a
larger percentage of its housing-related loans in the MSA
portions of its Utah assessment area to LMI individuals
and residents of minority census tracts than did Utah
lenders in the aggregate.60 The 1997 and 1998 data also
indicate that Zions Bank denied a smaller percentage of
housing-related applications received from African Americans, LMI individuals, and residents of LMI census tracts
than did lenders in the aggregate in Utah. The 1998 data
further demonstrate that Zions Bank-CA originated a larger
percentage of its housing-related loans in its assessment
area to LMI individuals than did California lenders in the
aggregate.
In other respects, however, the data may reflect certain
disparities in the rates of loan applications, originations,
and denials by racial group and income level.61 The Board
is concerned when the record of an institution indicates
disparities in lending, and believes that all banks are obligated to ensure that their lending practices are based on
criteria that ensure not only safe and sound lending, but
also equal access to credit by creditworthy applicants regardless of their race or income level. The Board recognizes that HMDA data alone provide an incomplete measure of an institution's lending in its community because
these data cover only a few categories of housing-related
lending. HMDA data, moreover, provide only limited information about the covered loans.62 HMDA data, therefore,
1997. Their California bank subsidiaries have not yet been examined
for CRA performance.
58. Examiners found substantive violations of HMDA's reporting
provisions at Sumitomo Bank of California in 1996, but Zions did not
acquire Sumitomo Bank until 1998.
59. Some commenters note that First Security made a lower percentage of its home purchase and refinance loans in minority census tracts
than did Utah lenders in the aggregate. Another commenter states that
the disparity ratios for home purchase loan denials of Zions Bank-CA
with respect to low-income and minority applicants in one particular
county significantly exceeded those of its competitors.
60. The aggregate represents the cumulative lending for all institutions that have reported HMDA data in a given market.
61. For instance, First Security Bank's housing-related loans to
African Americans in its Utah assessment area in 1998, as a percentage of its total mortgage lending in such area, was slightly below the
aggregate, and the percentage of Zions Bank's housing-related loans
originated in minority and LMI census tracts in its Utah assessment
area in 1998 also was below the aggregate.
62. The data, for example, do not account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for an independent assessment of whether an applicant
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
133
have limitations that make them an inadequate basis, absent other information, for concluding that an institution
has not adequately assisted in meeting its community's
credit needs or has engaged in illegal lending discrimination.
Because of the limitations of HMDA data, the Board has
considered these data carefully in light of other information. As noted above, examiners found no evidence of
prohibited discrimination or other illegal credit practices at
the subsidiary banks of First Security and Zions at their
most recent completed examinations. Examiners reviewed
the fair lending policies and procedures of the banks and
found the policies and procedures to be comprehensive and
appropriate for monitoring compliance with fair lending
laws. The Board also has considered the HMDA data in
light of First Security's and Zions' lending records, which
show that the organizations' subsidiary banks assist significantly in helping to meet the credit needs of their communities, including LMI areas.
E. Branch Closings
A commenter expresses concern about branch closings in
connection with the proposal. First Security has indicated
that there may be some branch closings as a result of the
proposed merger, which it expects to be limited to locations in California, Idaho, Nevada, and Utah where both
First Security and Zions currently operate branches. First
Security has submitted preliminary and confidential information concerning branches that are under consideration
for closure in the four states, but has indicated that the
plans are subject to change.
The Board has carefully considered the public comments
regarding the potential branch closings in light of all the
facts of record, including the preliminary branch closing
information provided by First Security. The Board also has
carefully considered the branch closing policies of First
Security and Zions and the record of the institutions in
opening and closing branches, as well as the review by
examiners of the organizations' implementation of their
policies.
The branch closing policies of First Security Bank and
Zions Bank require that the bank's board of directors
approve all branch closings. Both branch closing policies
also require that the bank, before any decision to close a
branch, consider whether the closing would have an adverse impact on the community and explore alternative
solutions to the branch closing. The policies also require
the bank to solicit the views of community leaders to the
extent that the closing may have an adverse community
impact.
Examiners reviewed the branch closing policies and
records of opening and closing branches of First Security
Bank and Zions Bank during the First Security Examination and the Zions Examination. Examiners of First Secu-
frequently cited for a credit denial) are not available from HMDA
data.
134
Federal Reserve Bulletin • February 2000
rity Bank found that the bank had a good record of opening
and closing branches in Idaho and Utah. Examiners of
Zions Bank noted that the bank had not closed an office
since 1990 and concluded that the bank had a very good
record of opening offices, and that the bank's branches
were readily accessible to all segments of its delineated
community.
The Board also notes that federal banking law provides a
specific mechanism for addressing branch closings. Federal law requires an insured depository institution to provide notice to the public and to the appropriate federal
regulatory agency at least 30 days before closing a
branch.63 The law does not authorize federal regulators to
prevent the closing of any branch. Any branch closings
resulting from the proposed transaction will be considered
by the appropriate federal supervisor at the next CRA
examination of the relevant subsidiary bank.
To permit the Board to monitor the effectiveness of the
branch closing policies of First Security and Zions, the
Board conditions its action on this proposal on the requirement that First Security report to the Federal Reserve
System semiannually during the two-year period after consummation all branch closings, including consolidations,
that occur as a result of this proposal. For branches closed
in LMI census tracts, First Security should indicate the
proximity of the closed branch to the closest branch of
First Security and the steps that First Security took to
mitigate the impact of the branch closure.
F. Conclusion on Convenience and Needs
The Board has carefully considered all the facts of record,64
including the public comments received, responses to the
comments, and the CRA performance records of the subsidiary banks of First Security and Zions, in reviewing the
proposal's effect on the convenience and needs of the
communities to be served by the combined organization.65
63. Section 42 of the Federal Deposit Insurance Act (12 U.S.C.
§ 1831r-l), as implemented by the Interagency Policy Statement on
Branch Closings (64 Federal Register 34,844 (1999)), requires that a
bank provide the public with at least 30 days notice and the appropriate federal supervisory agency with at least 90 days notice before the
date of the proposed branch closing. The bank also is required to
provide reasons and other supporting data for the closure, consistent
with the institution's written policy for branch closings.
64. One commenter requests that the Board condition its approval of
the proposal on First Security's making certain community reinvestment and other commitments. The Board notes that the CRA requires
only that, in considering an acquisition proposal, the Board carefully
review the actual record of performance of the relevant depository
institutions in helping to meet the credit needs of their communities.
The CRA does not require depository institutions to make pledges as
to future performance under the CRA. The Board also notes that the
future activities of First Security's subsidiary banks will be reviewed
by the appropriate federal supervisors in future performance examinations, and such CRA performance records will be considered by the
Board in any subsequent applications by First Security to acquire a
depository institution.
65. Several commenters express concern that the merger of First
Security and Zions would result in the loss of jobs. The effect of a
proposed transaction on employment in a community is not among the
In connection with the proposal, First Security has indicated that it does not intend to make any changes in the
CRA policies or programs of either organization's banks.
Based on a review of the entire record, and for the
reasons discussed above, the Board concludes that convenience and needs considerations, including the CRA performance records of the subsidiary banks of First Security and
Zions, are consistent with approval of the proposal.66
Nonbanking Activities
First Security also has filed notice under section 4(c)(8) of
the BHC Act to acquire the nonbank subsidiaries of Zions.
Through these subsidiaries, First Security would engage in
a number of nonbanking activities, including acting as a
general insurance agent; acting as a principal, agent, or
broker for credit-related insurance; and data processing and
transmission activities.67 The Board has determined by
regulation or order that the types of activities for which
notice has been provided are closely related to banking for
purposes of section 4(c)(8) of the BHC Act.68
In order to approve a notice under section 4(c)(8) of the
BHC Act, the Board also must determine that the acquisition of the nonbank subsidiaries of Zions and the performance of the proposed activities by First Security are a
proper incident to banking; that is, the Board must determine that the proposed transaction "can reasonably be
expected to produce benefits to the public . . . that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts
of interests, or unsound banking practices."69
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 those resources. For the reasons noted above, and
based on all the facts of record, the Board has concluded
factors included in the BHC Act, and the convenience and needs
factor has been consistently interpreted by the federal banking agencies, the courts, and the Congress to relate to the effect of a proposal
on the availability and quality of banking services in the community.
See Wells Fargo & Company, 82 Federal Reserve Bulletin 445, 457
(1996).
66. A few commenters express concern that the proposal would
result in the loss of jobs. The elfect of a proposed transaction on
employment in a community is not among the factors included in the
BHC Act, and the convenience and needs factor has been consistently
interpreted by the federal banking agencies, the courts, and Congress
to relate to the effect of a proposal on the availability and quality of
banking services in the community. See Wells Fargo & Company, 82
Federal Reserve Bulletin 445, 457 (1996).
67. First Security currently engages in insurance activities grandfathered under section 4(c)(8)(G) of the BHC Act (12 U.S.C.
§ 1843(c)(8)(G)) ("Exemption G"). First Security would be the legal
entity surviving the merger with Zions and, based on the structure of
the transaction and all of the other facts of this case, the Board has
determined that First Security would retain its exemption to engage in
Exemption G activities after consummation of the proposed merger.
68. See 12 C.F.R. 225.28(b)(ll)(i) and (vii) and (14).
69. 12 U.S.C. § 1843(c)(8).
Legal Developments
that financial and managerial considerations are consistent
with approval of the notice.
The Board also has considered the competitive effects of
the proposed acquisition by First Security of the nonbanking subsidiaries of Zions. Each of the markets in which the
nonbanking subsidiaries of First Security and Zions compete is unconcentrated, and there are numerous providers
of each of these services. As a result, the Board expects
that consummation of the proposal would have a de minimus effect on competition for these services. Based on all
the facts of record, the Board concludes that it is unlikely
that significantly adverse competitive effects would result
from the nonbanking acquisitions proposed in this transaction.
First Security has indicated that the proposed transaction
would create a stronger organization with enhanced earnings potential. First Security also has represented that the
combined organization would have an increased capacity
to serve its customers' credit needs and would be able to
provide retail and business customers a broader range of
products and services with a more efficient and comprehensive delivery system. In addition, there are public benefits
to be derived from permitting capital markets to operate so
that bank holding companies can make potentially profitable investments in nonbanking companies and from permitting banking organizations to allocate their resources in
the manner they consider to be most efficient when such
investments and actions are consistent, as in this case, with
the relevant considerations under the BHC Act.
The Board also believes that the conduct of the proposed
nonbanking activities within the framework of Regulation Y and Board precedent is not likely to result in any
significant adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices, and that any adverse effects would be outweighed by the public benefits of
the proposal, such as increased customer convenience and
gains in efficiency. Accordingly, based on all the facts of
record, the Board has determined that the balance of public
interest factors that the Board must consider under the
proper incident to banking standard of section 4(c)(8) of
the BHC Act is favorable and consistent with approval.
Conclusion
Based on the foregoing, the Board has determined that the
transaction should be, and hereby is, approved.70 In reach-
70. Several commenters requested that the Board hold a public
meeting or hearing on the proposal. Section 3(b) of the BHC Act does
not require the Board to hold a public hearing on an application unless
the appropriate supervisory authority for the bank to be acquired
makes a timely written recommendation of denial of the application.
The Board has not received such a recommendation from the appropriate supervisory authorities.
Under its rules, the Board also may, in its discretion, hold a public
meeting or hearing on an application to acquire a bank if a meeting or
hearing is necessary or appropriate to clarify factual issues related to
the application and to provide an opportunity for testimony. 12 C.F.R.
225.16(e). Section 4 of the BHC Act and the Board's rules thereunder
135
ing its conclusion, the Board has considered all the facts of
record in light of the factors that it is required to consider
under the BHC Act and other applicable statutes.71 The
Board's approval is specifically conditioned on compliance
by First Security with all the commitments made in connection with this application and notice, including the
commitments discussed in this order, and the conditions set
forth in this order and the above-noted Board regulations
and orders. The Board's approval of the nonbanking aspects of the proposal also is subject to all the conditions set
forth in Regulation Y, including those in sections 225.7 and
225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)),
and to the Board's authority to require such modification or
termination of the activities of a bank holding company or
any of its subsidiaries as the Board finds necessary to
ensure compliance with, and to prevent evasion of, the
provisions of the BHC Act and the Board's regulations and
orders issued thereunder. These commitments and conditions are deemed to be conditions imposed in writing by
the Board in connection with its findings and decision and,
as such, may be enforced in proceedings under applicable
law.
The acquisition of the subsidiary banks of Zions may not
be consummated before the fifteenth calendar day after the
effective date of this order, and the proposal may not be
consummated later than three months after the effective
date of this order, unless such period is extended for good
cause by the Board or by the Reserve Bank, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 13, 1999.
provide for a hearing on a notice to acquire nonbanking companies if
there are disputed issues of material fact that cannot be resolved in
some other manner. 12 U.S.C. § 1843(c)(8); 12 C.F.R. 225.25(a)(2).
The Board has considered carefully these commenters' requests in
light of all the facts of record. In the Board's view, commenters have
had ample opportunity to submit their views, and they submitted
written comments that have been considered carefully by the Board in
acting on the proposal. The commenters' requests fail to demonstrate
why their written comments do not present their evidence adequately
and fail to identify disputed issues of fact that are material to the
Board's decision that would be clarified by a public meeting or
hearing. For these reasons, and based on all the facts of record, the
Board has determined that a public meeting or hearing is not required
or warranted in this case. Accordingly, the requests for a public
meeting on the proposal are denied.
71. A number of commenters have requested that the Board delay
action or extend the comment period on the proposal. The Board has
accumulated a significant record in this case, including reports of
examination, supervisory information, public reports and information,
and considerable public comment. In the Board's view, for the reasons
discussed above, commenters have had ample opportunity to submit
their views and, in fact, have provided substantial written submissions
that have been considered carefully by the Board in acting on the
proposal. Moreover, the BHC Act and Regulation Y require the Board
to act on proposals submitted under those provisions within certain
time periods. Based on a review of all the facts of record, the Board
concludes that the record in this case is sufficient to warrant Board
action at this time, and that further delay of consideration of the
proposal, extension of the comment period, or denial of the proposal
on the grounds discussed above or on the basis of informational
insufficiency is not warranted.
136
Federal Reserve Bulletin • February 2000
Voting for this action: Chairman Greenspan and Governors Kelley,
Meyer, and Gramlich. Absent and not voting: Vice Chairman Ferguson.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
Appendix A
Nonbanking Subsidiaries of Zions Bancorporation
(1) Zions Life Insurance Company, Salt Lake City, Utah,
and thereby engage in underwriting credit-related insurance, in accordance with section 225.28(b)(ll)(i) of
Regulation Y (12 C.F.R. 225.28(b)(ll)(i));
(2) Zions Insurance Agency, Inc., Salt Lake City, Utah,
and thereby engage in insurance agency activities, in
accordance with section 225.28(b)(ll)(vii) of Regulation Y (12 C.F.R. 225.28(b)(ll)(vii)); and
(3) Cash Access, Inc., Salt Lake City, Utah, and thereby
engage in data processing and transmission activities
through the leasing, installing, and servicing of automated teller machines, in accordance with section
225.28(b)(14) of Regulation Y (12 C.F.R.
225.28(b)(14)).
Montpelier: The towns of Montpelier and Paris.
Moscow-Pullman: The town of Moscow, Idaho; and the
towns of Colfax, Palouse, and Pullman,
Washington.
Ontario: The towns of Fruitland, New Plymouth,
Payette, and Weiser, Idaho; and the towns of
Nyssa, Ontario, and Vale, Oregon.
Pocatello: Pocatello RMA.
Twin Falls: The towns of Buhl, Filer, Gooding, Hagerman,
Hazelton, Jerome, Kimberly, Richfield, Shoshone, Twin Falls, and Wendell.
C. Nevada Banking Markets
Carson City: The towns of Carson City, Dayton, Gardnerville, Minden, and Virginia City.
Las Vegas: Las Vegas RMA.
Reno: Reno RMA and the town of Fernley.
Appendix B
D. Utah Banking Markets
Banking Markets in which First Security and Zions
Directly Compete
Box Elder: The towns of Brigham City and Trementon.
A. California Banking Markets
Cedar City: The towns of Cedar City and Parowan.
Los Angeles: Los Angeles Ranally Metropolitan Area
("RMA") and the towns of Rancho Santa
Margarita and Rosamond.
Delta: The towns of Delta and Fillmore.
Ephraim: The towns of Ephraim, Gunnison, Manti, Mt.
Pleasant, and Moroni.
Riverside-San Bernardino: Riverside-San Bernardino
RMA and the towns of Banning, Beaumont, and Nuevo.
Logan: Logan RMA and the towns of Lewiston and Richmond, Utah; and the town of Preston, Idaho.
B. Idaho Banking Markets
Moab: The town of Moab.
Blackfoot: The town of Blackfoot.
Monticello: The towns of Blanding and Monticello, Utah;
and the town of Dove Creek, Colorado.
Boise: Boise RMA and the towns of Emmett, Homedale,
Marsing, Parma, and Wilder.
Ogden: Ogden RMA, excluding the towns of Kaysville
and Fruit Heights.
Bonners Ferry: The town of Bonners Ferry.
Park City: The towns of Coalville, Heber City, Kamas,
and Park City.
Burley: The towns of Albion, Burley, Paul, and
Rupert.
Price: The towns of Castle Dale, Helper, Huntington, and
Price.
Idaho Falls: Idaho Falls RMA and the towns of Shelley
and Ririe.
Provo-Orem: Provo-Orem RMA.
Lewiston: Lewiston RMA.
Richfield: The towns of Monroe, Richfield, and Salina.
Legal Developments
Roosevelt: The towns of Altamont, Duchesne, and Roosevelt.
Salt Lake City: Salt Lake City RMA and the towns of
Fruit Heights, Grantsville, Kaysville, and
Tooele.
St. George: The towns of Hildale, Hurricane, Santa Clara,
Springdale, St. George, and Washington,
Utah; and the towns of Mesquite and Overton,
Nevada.
Vernal: The town of Vernal.
Appendix C
Certain Banking Markets with No Divestitures
A. California Banking Markets
Los Angeles - First Security is the 25th largest depository
institution in the market, controlling deposits of $838 million, representing less than 1 percent of market deposits.
Zions is the tenth largest depository institution in the
market, controlling deposits of $2.1 billion, representing
approximately 1.5 percent of market deposits. On consummation of the proposal, First Security would become the
ninth largest depository institution in the market, controlling deposits of $3 billion, representing 2.1 percent of
market deposits. The HHI would increase 1 point to 1028.
Riverside-San Bernardino - First Security is the 23rd largest depository institution in the market, controlling deposits of $32 million, representing less than 1 percent of
market deposits. Zions is the 28th largest depository institution in the market, controlling deposits of $23 million,
representing less than 1 percent of market deposits. On
consummation of the proposal, First Security would become the 19th largest depository institution in the market,
controlling deposits of $55 million, representing less than 1
percent of market deposits. The HHI would increase less
than 1 point to 1610.
B. Idaho Banking Markets
Blackfoot - First Security is the second largest depository
institution in the market, controlling deposits of $38 million, representing approximately 26.9 percent of market
deposits. Zions is the sixth largest depository institution in
the market, controlling deposits of $4 million, representing
approximately 2.5 percent of market deposits. On consummation of the proposal, First Security would remain the
second largest depository institution in the market, controlling deposits of $42 million, representing 29.4 percent of
market deposits. The HHI would increase 135 points to
3254.
Boise - First Security is the second largest depository
institution in the market, controlling deposits of $855 million, representing approximately 27.8 percent of market
deposits. Zions is the 13th largest depository institution in
137
the market, controlling deposits of $9 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, First Security would remain the second
largest depository institution in the market, controlling
deposits of $864 million, representing 28.1 percent of
market deposits. The HHI would increase 17 points to
2671.
Idaho Falls - First Security is the second largest depository
institution in the market, controlling deposits of $196 million, representing approximately 25.4 percent of market
deposits. Zions is the tenth largest depository institution in
the market, controlling deposits of $6 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, First Security would remain the second
largest depository institution in the market, controlling
deposits of $202 million, representing 26.2 percent of
market deposits. The HHI would increase 39 points to
2022.
Moscow-Pullman - First Security is the second largest
depository institution in the market, controlling deposits of
$85 million, representing approximately 20.7 percent of
market deposits. Zions is the tenth largest depository institution in the market, controlling deposits of $9 million,
representing approximately 2.3 percent of market deposits.
On consummation of the proposal, First Security would
remain the second largest depository institution in the
market, controlling deposits of $94 million, representing
23 percent of market deposits. The HHI would increase
94 points to 1575.
Ontario - First Security is the second largest depository
institution in the market, controlling deposits of $78 million, representing approximately 16.6 percent of market
deposits. Zions is the seventh largest depository institution
in the market, controlling deposits of $26 million, representing 5.6 percent of market deposits. On consummation
of the proposal, First Security would remain the second
largest depository institution in the market, controlling
deposits of $105 million, representing 22.2 percent of
market deposits. The HHI would increase 185 points to
1747.
Pocatello - First Security is the largest depository institution in the market, controlling deposits of $129 million,
representing approximately 36.1 percent of market deposits. Zions is the tenth largest depository institution in the
market, controlling deposits of $2 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, First Security would remain the largest
depository institution in the market, controlling deposits of
$131 million, representing 36.5 percent of market deposits.
The HHI would increase 32 points to 2523.
C. Nevada Banking Markets
Carson City - First Security is the third largest depository
institution in the market, controlling deposits of $109 million, representing approximately 12.6 percent of market
deposits. Zions is the seventh largest depository institution
in the market, controlling deposits of $62 million, representing approximately 7.1 percent of market deposits. On
138
Federal Reserve Bulletin • February 2000
consummation of the proposal, First Security would remain the third largest depository institution in the market,
controlling deposits of $171 million, representing
19.7 percent of market deposits. The HHI would increase
179 points to 2024.
Reno - First Security is the seventh largest depository
institution in the market, controlling deposits of $105 million, representing approximately 3.5 percent of market
deposits. Zions is the fourth largest depository institution
in the market, controlling deposits of $395 million, representing approximately 13.2 percent of market deposits. On
consummation of the proposal, First Security would become the fourth largest depository institution in the market,
controlling deposits of $500 million, representing
16.7 percent of market deposits. The HHI would increase
93 points to 2095.
Appendix D
Security would remain the largest depository institution in
the market, controlling deposits of $36 million, representing 53.6 percent of market deposits. The HHI would remain unchanged at 4164.
Twin Falls - First Security is the largest depository institution in the market, controlling deposits of $369 million,
representing approximately 40.1 percent of market deposits. Zions is the seventh largest depository institution in the
market, controlling deposits of $18 million, representing
approximately 2 percent of market deposits. First Security
proposes to divest one branch, controlling deposits of
$5 million, to an out-of-market firm or a competitively
suitable in-market firm. On consummation of the proposal,
and after accounting for the proposed divestiture, First
Security would remain the largest depository institution in
the market, controlling deposits of $382 million, representing 41.5 percent of market deposits. The HHI would increase no more than 131 points to no more than 2487.
Certain Banking Markets with Divestitures
B. Utah Banking Markets
A. Idaho Banking
Box Elder - First Security is the largest depository institution in the market, controlling deposits of $123 million,
representing approximately 54 percent of market deposits.
Zions is the fourth largest depository institution in the
market, controlling deposits of $19 million, representing
8.5 percent of market deposits. First Security proposes to
divest one branch, controlling deposits of $19 million, to
an out-of-market firm or a competitively suitable in-market
firm. On consummation of the proposal, and after accounting for the proposed divestitures, First Security would
remain the largest depository institution in the market,
controlling deposits of $123 million, representing
54 percent of market deposits. The HHI would increase no
more than 162 points to no more than 3553.
Cedar City - First Security is the second largest depository
institution in the market, controlling deposits of $76 million, representing approximately 34.5 percent of market
deposits. Zions is the third largest depository institution in
the market, controlling deposits of $46 million, representing 20.8 percent of market deposits. First Security proposes to divest one branch, controlling deposits of
$39 million, to an out-of-market firm. On consummation of
the proposal, and after accounting for the proposed divestitures, First Security would remain the second largest depository institution in the market, controlling deposits of
$84 million, representing 37.9 percent of market deposits.
The HHI would increase 118 points to 3739.
Delta - First Security is the largest depository institution in
the market, controlling deposits of $54 million, representing approximately 66.3 percent of market deposits. Zions
is the second largest depository institution in the market,
controlling deposits of $28 million, representing 33.7 percent of market deposits. First Security proposes to divest
one branch, controlling deposits of $28 million, to an
out-of-market firm. On consummation of the proposal, and
after accounting for the proposed divestitures, First Security would remain the largest depository institution in the
market, controlling deposits of $54 million, representing
Markets
Bonners Ferry - First Security is the largest depository
institution in the market, controlling deposits of $40 million, representing approximately 50.2 percent of market
deposits. Zions is the third largest depository institution in
the market, controlling deposits of $18 million, representing approximately 22.7 percent of market deposits. First
Security proposes to divest one branch, controlling deposits of $18 million, to an out-of-market firm. On consummation of the proposal, and after accounting for the proposed
divestitures, First Security would remain the largest depository institution in the market, controlling deposits of
$40 million, representing 50.2 percent of market deposits.
The HHI would remain unchanged at 3769.
Burley - First Security is the second largest depository
institution in the market, controlling deposits of $83 million, representing approximately 23 percent of market deposits. Zions is the fifth largest depository institution in the
market, controlling deposits of $31 million, representing
8.6 percent of market deposits. First Security proposes to
divest one branch, controlling deposits of $31 million, to
an out-of-market firm or a competitively suitable in-market
firm. On consummation of the proposal, and after accounting for the proposed divestitures, First Security would
remain the second largest depository institution in the
market, controlling deposits of $83 million, representing
23 percent of market deposits. The HHI would increase by
no more than 93 to no more than 2149.
Montpelier - First Security is the largest depository institution in the market, controlling deposits of $36 million,
representing approximately 53.6 percent of market deposits. Zions is the second largest depository institution in the
market, controlling deposits of $22 million, representing
33.6 percent of market deposits. First Security proposes to
divest two branches, controlling deposits of $22 million, to
an out-of-market firm. On consummation of the proposal,
and after accounting for the proposed divestitures, First
Legal Developments
66.3 percent of market deposits. The HHI would remain
unchanged at 5529.
Ephraim - First Security is the largest depository institution in the market, controlling deposits of $29 million,
representing approximately 24.7 percent of market deposits. Zions is the third largest depository institution in the
market, controlling deposits of $27 million, representing
23.4 percent of market deposits. First Security proposes to
divest two branches, controlling deposits of $29 million, to
an out-of-market firm. On consummation of the proposal,
and after accounting for the proposed divestitures, First
Security would become the third largest depository institution in the market, controlling deposits of $27 million,
representing 23.4 percent of market deposits. The HHI
would remain unchanged at 2213.
Logan - First Security is the largest depository institution
in the market, controlling deposits of $224 million, representing approximately 34.1 percent of market deposits.
Zions is the second largest depository institution in the
market, controlling deposits of $204 million, representing
31 percent of market deposits. First Security proposes to
divest five branches, controlling deposits of $177.8 million, to an out-of-market firm or a competitively suitable
in-market firm. On consummation of the proposal, and
after accounting for the proposed divestitures, First Security would remain the largest depository institution in the
market, controlling deposits of $250 million, representing
38.1 percent of market deposits. The HHI would increase
no more than 172 points to no more than 2564.
Moab - First Security is the largest depository institution in
the market, controlling deposits of $50 million, representing approximately 70.3 percent of market deposits. Zions
is the second largest depository institution in the market,
controlling deposits of $21 million, representing 29.7 percent of market deposits. First Security proposes to divest
two branches, controlling deposits of $21 million, to an
out-of-market firm. On consummation of the proposal, and
after accounting for the proposed divestitures, First Security would remain the largest depository institution in the
market, controlling deposits of $50 million, representing
70.3 percent of market deposits. The HHI would remain
unchanged at 5826.
Monticello - First Security is the largest depository institution in the market, controlling deposits of $36 million,
representing approximately 55.9 percent of market deposits. Zions is the third largest depository institution in the
market, controlling deposits of $14 million, representing
21.7 percent of market deposits. First Security proposes to
divest two branches, controlling deposits of $14 million, to
an out-of-market firm. On consummation of the proposal,
and after accounting for the proposed divestitures, First
Security would remain the largest depository institution in
the market, controlling deposits of $36 million, representing 55.9 percent of market deposits. The HHI would remain unchanged at 4096.
Park City - First Security is the largest depository institution in the market, controlling deposits of $156 million,
representing approximately 42.4 percent of market deposits. Zions is the second largest depository institution in the
139
market, controlling deposits of $111 million, representing
30 percent of market deposits. First Security proposes to
divest four branches, controlling deposits of $106.6 million, to an out-of-market firm or a competitively suitable
in-market firm. On consummation of the proposal, and
after accounting for the proposed divestitures, First Security would remain the largest depository institution in the
market, controlling deposits of $161 million, representing
43.5 percent of market deposits. The HHI would increase
no more than 176 points to no more than 3095.
Price - First Security is the second largest depository
institution in the market, controlling deposits of $57 million, representing approximately 24.8 percent of market
deposits. Zions is the largest depository institution in the
market, controlling deposits of $105 million, representing
45.8 percent of market deposits. First Security proposes to
divest three branches, controlling deposits of $57 million,
to an out-of-market firm. On consummation of the proposal, and after accounting for the proposed divestitures,
First Security would become the largest depository institution in the market, controlling deposits of $105 million,
representing 45.8 percent of market deposits. The HHI
would remain unchanged at 3054.
Richfield - First Security is the second largest depository
institution in the market, controlling deposits of $37 million, representing approximately 24.9 percent of market
deposits. Zions is the largest depository institution in the
market, controlling deposits of $85 million, representing
56.6 percent of market deposits. First Security proposes to
divest two branches, controlling deposits of $37 million, to
an out-of-market firm. On consummation of the proposal,
and after accounting for the proposed divestitures, First
Security would become the largest depository institution in
the market, controlling deposits of $85 million, representing 56.6 percent of market deposits. The HHI would remain unchanged at 4007.
Roosevelt - First Security is the largest depository institution in the market, controlling deposits of $61 million,
representing approximately 60.5 percent of market deposits. Zions is the second largest depository institution in the
market, controlling deposits of $40 million, representing
39.5 percent of market deposits. First Security proposes to
divest 2 branches, controlling deposits of $40 million, to an
out-of-market firm. On consummation of the proposal, and
after accounting for the proposed divestitures, First Security would remain the largest depository institution in the
market, controlling deposits of $61 million, representing
60.5 percent of market deposits. The HHI would remain
unchanged at 5220.
Vernal - First Security is the largest depository institution
in the market, controlling deposits of $65 million, representing approximately 50.5 percent of market deposits.
Zions is the second largest depository institution in the
market, controlling deposits of $64 million, representing
49.5 percent of market deposits. First Security proposes to
divest one branch, controlling deposits of $65 million, to
an out-of-market firm. On consummation of the proposal,
and after accounting for the proposed divestitures, First
Security would become the second largest depository insti-
140
Federal Reserve Bulletin • February 2000
tution in the market, controlling deposits of $64 million,
representing 49.5 percent of market deposits. The HHI
would remain unchanged at 5001.
HSBC Holdings pic
London, United Kingdom
HSBC Finance Netherlands
London, United Kingdom
HSBC Holdings BV
Amsterdam, Netherlands
Republic New York Corporation
New York, New York
Republic National Bank of New York
New York, New York
Order Approving Applications to Acquire a Bank
Holding Company and to Merge Banks, and Notice to
Acquire Nonbanking Companies
HSBC Holdings pic ("HSBC"), HSBC Finance Netherlands ("HFN"), and HSBC Holdings BV ("HHBV"), all
bank holding companies within the meaning of the Bank
Holding Company Act ("BHC Act"), have requested the
Board's approval under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire all the voting shares of
Republic New York Corporation ("RNYC"), and its
wholly owned subsidiary banks, Republic National Bank
of New York ("Republic Bank") and Republic Bank California National Association, Beverly Hills, California
("Republic California"). 1 HSBC, HFN, and HHBV also
have 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 RNYC and thereby
engage in permissible nonbanking activities.2 Republic
Bank has applied under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the "Bank
Merger Act") to merge with HSBC Bank USA ("HSBC
Bank"), a state member bank that is the primary U.S.
1. HSBC proposes to acquire RNYC by merging an indirect, wholly
owned acquisition subsidiary with and into RNYC, with RNYC as the
surviving corporation. HSBC proposes to hold the corporation resulting from the merger of RNYC with HSBC USA, Inc. through an
intermediate holding company in the United States, HSBC North
America, Inc. Because this intermediate company would indirectly
control a U.S. bank, it would be a bank holding company for purposes
of the BHC Act.
2. The nonbanking activities in which RNYC engages and for which
HSBC, HFN, and HHBV have sought Board approval under section 4
of the BHC Act include factoring, in accordance with section
225.28(b)(1) of Regulation Y (12 C.F.R. 225.28(b)(1)); trust company
functions, in accordance with section 225.28(b)(5) of Regulation Y
(12 C.F.R. 225.28(b)(5)); agency transactional services, in accordance
with section 225.28(b)(7) of Regulation Y (12 C.F.R. 225.28(b)(7));
and investment transactions as a principal, in accordance with section
225.28(b)(8) of Regulation Y (12 C.F.R. 225.28(b)(8)).
banking subsidiary of HSBC.3 In addition, HSBC proposes
to acquire the foreign operations and Edge corporations
of RNYC pursuant to section 4(c)(13) of the BHC Act
(12 U.S.C. § 1843(c)(13)) and section 25A of the Federal
Reserve Act (12 U.S.C. § 611 et seq.) and the Board's
Regulation K (12 C.F.R. 211), and Republic Bank proposes
to acquire the Agreement corporation subsidiary of HSBC
Bank pursuant to section 25 of the Federal Reserve Act
(12 U.S.C. § 601 et seq.) and Regulation K.4
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (64
Federal Register 35,660 (1999); 64 Federal Register
36,876 (1999)). 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, the Federal Reserve Act, and the
Bank Merger Act.
HSBC, with total consolidated assets of $497 billion is
the largest banking organization headquartered in the
United Kingdom and is the eighth largest banking organization in the world.5 HSBC operates subsidiary banks in
New York State and California that control deposits of
$22.1 billion.6 Three of HSBC's non-U.S. subsidiary banks
also maintain branches in the U.S.7 HSBC, HFN, and
HHBV also engage in a broad range of permissible nonbanking activities in the United States through subsidiaries,
including underwriting and dealing in debt and equity
securities to a limited extent.
RNYC, with total consolidated assets of $51.2 billion, is
the 19th largest commercial banking organization in the
United States and the sixth largest commercial banking
organization in New York State. RNYC operates subsidiary banks in New York State and California that control
aggregate deposits of $13.6 billion. RNYC and its subsidiaries also engage in certain permissible nonbanking activities in the United States, including dealing in debt and
equity securities to a limited extent.
3. Republic Bank has applied to the New York State Banking
Department to convert from a national to a New York State charter,
and to the Board under section 9 of the Federal Reserve Act
(12 U.S.C. § 321 et seq.) for membership of the converted bank in the
Federal Reserve System. On completion of the merger of Republic
Bank and HSBC Bank, Republic Bank would change its name to
HSBC Bank USA ("New HSBC Bank").
4. HSBC also has requested the Board's approval to hold and
exercise an option to acquire up to 19.9 percent of the shares of
RNYC's common stock.
5. Asset data are as of June 30, 1999, and ranking data are as of
December 31, 1998, and are based on exchange rates then applicable.
6. Deposit data are as of June 30, 1999.
7. The Hongkong and Shanghai Banking Corporation Limited,
Hong Kong Special Administrative Region, People's Republic of
China ("HSBL"), and Midland Bank pic, London, United Kingdom,
each maintain a branch in New York, New York; and Hongkong Bank
of Canada, Vancouver, Canada, maintains branches in Portland, Oregon, and Seattle, Washington. In addition, HSBC Equator Bank pic,
London, United Kingdom, has a representative office in Washington,
D.C.
Legal Developments
Factors Governing Board Review of Transaction
The BHC Act sets forth the factors that the Board must
consider when reviewing the formation of a bank holding
company or the acquisition of banks. These factors are the
competitive elfects of the proposal in the relevant geographic markets; the financial and managerial resources
and future prospects of the companies and banks involved
in the proposal; the convenience and needs of the community to be served, including the records of performance
under the Community Reinvestment Act (12 U.S.C.
§ 2901 et seq.) ("CRA") of the insured depository institutions involved in the transaction; the availability of information needed to determine and enforce compliance with
the BHC Act and other applicable federal banking law;
and, in the case of applications involving a foreign bank,
whether the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by its home
country supervisor. In cases involving interstate bank acquisitions, the Board also must consider the concentration
of deposits in the nation and relevant individual states, and
compliance with other provisions of section 3(d) of the
BHC Act.
The Board has considered these factors in light of a
comprehensive record that includes information provided
by HSBC, confidential supervisory and examination information, and publicly reported financial and other information. The Board also has considered information collected
from the primary home country supervisor of HSBC and
various federal and state agencies, including the New York
State Banking Department, and other relevant agencies. In
addition, the Board has considered information provided
by public commenters in connection with the proposal.8
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. For purposes of the BHC Act, the home state of
HSBC is New York,9 and the subsidiary banks of RNYC
are located in New York, Florida, and California.10
HSBC's U.S. subsidiary banks maintain branches in New
York, Pennsylvania, and California.
Section 3(d) of the BHC Act provides that the Board
may not approve a proposal if, after consummation, the
applicant would control more than 10 percent of the total
deposits of insured depository institutions in the United
8. The Board received comments from 12 public commenters.
9. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of such company were the
largest on July 1, 1966, or the date on which the company became a
bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C).
10. For purposes of section 3(d), the Board considers a bank to be
located in the states in which the bank is chartered, headquartered, or
operates a branch.
141
States.11 In addition, the Board may not approve a proposal
if, on consummation of the proposal, the applicant would
control 30 percent or more of the total deposits of insured
depository institutions in any state in which both the applicant and the organization to be acquired operate an insured
depository institution, or such higher or lower percentage
established by state law.12
On consummation of the proposal, HSBC would control
approximately 1 percent of the total amount of deposits of
insured depository institutions in the United States. HSBC
would control less than 30 percent or the appropriate
percentage established by applicable state law of total
deposits held by insured depository institutions in the states
in which HSBC and RNYC both operate an insured depository institution. All other requirements of section 3(d) of
the BHC Act also would be met after consummation of the
proposal.13 In light of all the facts of record, the Board is
permitted to approve the proposal under section 3(d) of the
BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly. The BHC
Act also prohibits the Board from approving a proposed
bank acquisition that would substantially lessen competition in any relevant banking market unless the anticompetitive elfects 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.14
HSBC and RNYC control banking operations that compete directly in the New York/New Jersey Metropolitan
banking market ("New York banking market"). 15 HSBC is
the ninth largest depository institution in the New York
banking market, controlling deposits of $10 billion, representing approximately 2.4 percent of total deposits in depository institutions in the New York banking market
("market deposits"). RNYC is the eighth largest deposi-
11.12 U.S.C. § 1842(d)(2)(A). For this purpose, insured depository
institutions include all insured banks, savings banks, and savings
associations.
12. 12 U.S.C. § 1842(d)(2)(B)-(D).
13. HSBC is adequately capitalized and adequately managed, as
defined by applicable law. 12 U.S.C. § 1842(d)(1)(A). Republic
California has been in existence and operated continuously for at least
the period of time required by applicable state laws. See 12 U.S.C.
§ 1842(d)(1)(B); Cal. Fin. Code § 3825 (1999) (5 years). Additionally, Pennsylvania law authorizes an out-of-state bank to establish and
maintain branches acquired from a predecessor in a merger, on condition of reciprocity with the laws of the state where the acquiring bank
is chartered. 7 P.S. § 904(a) (1999). New York law provides such
reciprocity. N.Y. Banking Law § 225.1 (1999).
14. 12 U.S.C. § 1842(c)(1).
15. The New York banking market includes Bronx, Dutchess,
Kings, Nassau, New York, Orange, Putnam, Queens, Richmond,
Rockland, Suffolk, Sullivan, Ulster, and Westchester Counties in New
York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth,
Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a
portion of Mercer Counties in New Jersey; Pike County in Pennsylvania; and portions of Fairfield and Litchfield Counties in Connecticut.
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Federal Reserve Bulletin • February 2000
tory institution in the New York banking market, controlling deposits of $13.6 billion, representing approximately
3.2 percent of market deposits.16 On consummation of the
proposal, New HSBC Bank would become the fifth largest
depository institution in the New York banking market,
and HSBC would control total deposits of approximately
$23.7 billion in the market, including deposits in the New
York branches of HSBC's foreign banking subsidiaries,
HSBL and Midland Bank pic. After the transaction, the
market would remain unconcentrated, as measured by the
Herfindahl-Hirschman Index ("HHI") under the Department of Justice Merger Guidelines ("DOJ Guidelines").17
In addition, numerous competitors would remain in the
New York banking market. Based on these and all other
facts of record, the Board concludes that consummation of
the proposal would not result in any significantly adverse
effects on competition or on the concentration of banking
resources in the New York banking market or any other
relevant banking market.
Financial and Managerial Resources
The Board has carefully considered the financial and managerial resources and future prospects of the companies
and banks involved in the proposal, the effect the proposed
transaction would have on such resources, and other supervisory factors in light of all the facts of record, including
public comments.
In evaluating the financial and managerial factors, the
Board has considered the terms of the merger, including
the proposed financing arrangements for the transaction.
The Board also has reviewed the proposed structure of the
combined organization, and various commitments made by
HSBC regarding the proposal. In addition, the Board has
reviewed confidential examination and other supervisory
information assessing the financial and managerial strength
of HSBC and its subsidiaries and of RNYC and its subsidiaries. Moreover, the Board has reviewed information submitted by HSBC about the programs that HSBC and RNYC
have implemented to prepare their systems for the year
2000 changeover and confidential examination and supervisory information assessing the organizations' efforts to
ensure Year 2000 readiness, both before and after the
proposed transaction.
16. Deposit and ranking data for the New York banking market are
as of June 30, 1998.
17. The HHI in the New York banking market would increase from
771 to 786 as a result of the proposed transaction. See 49 Federal
Register 26,823 (June 29, 1984). Under the DOJ Guidelines, a market
in which the post-merger HHI is less than 1000 points is considered to
be unconcentrated. The Department of Justice has informed the Board
that a bank merger or acquisition generally will not be challenged (in
the absence of other factors indicating anticompetitive effects) unless
the post-merger HHI is at least 1800 and the merger increases the HHI
by more than 200 points. The Department of Justice has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognize the competitive effects of
limited purpose lenders and other nondepository financial entities. As
noted, the HHI in the New York banking market would remain less
than 1000 points after consummation of the proposal.
In evaluating financial factors in expansion proposals by
banking organizations, the Board consistently has considered capital adequacy to be especially important.18 The
Board expects banking organizations contemplating expansion to maintain strong capital levels substantially in excess of the minimum levels specified in the Board's Capital
Adequacy Guidelines. HSBC's capital ratios exceed the
minimum levels that would be required under the Basle
Capital Accord and are considered equivalent to the capital
that would be required of a U.S. banking organization.
Moreover, the proposed transaction would not materially
affect the capital position of HSBC or RNYC and is not
expected to have a significantly adverse effect on the
financial resources of HSBC. Other financial factors are
consistent with approval.
The Board has also considered the managerial resources
of HSBC and RNYC in light of all the facts of record,
including confidential examination and other supervisory
information.19 In particular, the Board has taken into account the record of operation by HSBC of banks, branches,
and representative offices in the United States. Based on all
the facts of record, the Board concludes that considerations
relating to the financial and managerial resources and future prospects of the organizations involved are consistent
with approval.20
Convenience and Needs Factor
In acting on this proposal, the Board also must consider the
convenience and needs of the communities to be served
and take into account the records of the relevant depository
institutions under the CRA. The CRA requires the federal
financial supervisory agencies to encourage financial institutions to help meet the credit needs of local communities
in which they operate, consistent with their safe and sound
operation, and requires the appropriate federal supervisory
authority to take into account an institution's record of
meeting the credit needs of its entire community, including
18. See Chemical Banking Corporation, 82 Federal Reserve Bulletin 239 (1996).
19. One commenter expressed concerns about the managerial resources of Republic Bank, contending that its purchase of mortgagebacked securities issued by a subprime lender, Delta Funding Corporation, Woodbury, New York ("Delta"), reflected poorly on its fair
lending safeguards. The Board has also considered these comments in
reviewing the convenience and needs factors in this case.
20. In reviewing the managerial resources factor, the Board has
considered available information, including confidential and supervisory information, regarding the charges of securities fraud filed against
the owner and founder of Princeton Global Management Limited, a
customer of Republic New York Securities Corporation ("RNYSC"),
a subsidiary of RNYC. Neither RNYC nor RNYSC has been charged
with wrongdoing by any government authority in connection with this
matter, and RNYC has suspended the chief executive officer of
RNYSC and replaced the management of RNYSC's Futures Division.
In addition, the Board notes that HSBC has reviewed the activities of
RNYSC, and the Board has taken account of plans by HSBC to
address potential effects that might result from the Princeton matter.
The Board is coordinating its review of this matter with the functional
regulators of RNYSC and other appropriate law enforcement authorities.
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low- and moderate-income ("LMI") neighborhoods, in
evaluating bank expansion proposals. The Board has carefully considered the convenience and needs factor and the
CRA performance records of the subsidiary depository
institutions of HSBC and RNYC in light of all the facts of
record, including public comments on the proposal.
Twelve persons submitted written comments on various
aspects of the proposal and, in particular, the effect of the
proposal on the convenience and needs of the affected
communities and the CRA performance records of the
depository institutions involved. Several commenters opposed the proposal, alleging that HSBC and, to a lesser
extent, RNYC have inadequate records of meeting the
banking and credit needs of the communities they serve
and, in particular, of communities with predominantly LMI
and minority populations. Other commenters expressed the
view that the proposal should not be approved absent
certain specific commitments from HSBC to improve various aspects of its CRA-related programs. Some commenters praised the community reinvestment programs of
Republic Bank in New York City, in particular its community development lending and affordable mortgage and
consumer banking products, and expressed concern that
these products or programs would not be continued after
the banks merge.
A. CRA Performance Examinations
As provided in the CRA, the Board has evaluated the
convenience and needs factor in light of examinations by
the appropriate federal supervisors of the CRA performance records of the relevant institutions. An institution's
most recent CRA performance review is a particularly
important consideration in the applications process because
it represents a detailed on-site evaluation of the institution's overall record of performance under the CRA by the
appropriate federal financial supervisory agency.21
Both of HSBC's subsidiary banks have been examined
for CRA performance and received "satisfactory" ratings
in the most recent CRA examinations.22 In particular,
HSBC's lead bank, HSBC Bank, received "satisfactory"
performance ratings from the Federal Reserve Bank of
New York ("Reserve Bank"), as of October 5, 1998, and
from the New York State Banking Department, on June 30,
1998.
Both of RNYC's subsidiary banks that are subject to the
CRA also received "satisfactory" ratings in the most re-
21. The Interagency Questions and Answers Regarding Community
Reinvestment provide that a CRA examination is an important and
often controlling factor in the consideration of an institution's CRA
record. See 64 Federal Register 23,641 (1999).
22. In addition to HSBC Bank (formerly Marine Midland Bank),
HSBC also owns, through HSBC USA, Inc., 40 percent of the equity
of Wells Fargo HSBC Trade Bank N.A., San Francisco, California
("Trade Bank"), a national bank joint venture with Wells Fargo &
Company. For CRA purposes, Trade Bank is evaluated as a wholesale
financial institution because it is devoted solely to international trade
finance and international banking services.
143
cent examinations of their CRA performance.23 Republic
Bank, RNYC's lead bank, received its "satisfactory" rating from the Office of the Comptroller of the Currency
("OCC"), as of May 15, 1997.
HSBC represents that it has no immediate plans to alter
materially Republic Bank's CRA program, and that it will
continue the principal features of the program until 2001.
HSBC has also said that it will honor all outstanding loan,
investment, and contribution commitments that have been
made by Republic Bank through the year 2000, and that a
significant portion of the CRA investment initiatives of
Republic Bank will be continued beyond 2000. HSBC has
indicated that it intends to use Republic Bank's retail
lending operations to increase HSBC's lending to LMI
individuals in the New York City metropolitan area. Consequently, the Board has taken into account the CRA performance records of both HSBC and RNYC in evaluating this
proposal.24
B. HSBC's CRA Performance Record
HSBC Bank. Examiners concluded that HSBC Bank's
lending activity had been responsive to the credit needs of
its assessment areas, and commended the geographic distribution of HSBC Bank's lending within its assessment
areas as well as its penetration among borrowers of different income levels.25 Examiners described HSBC Bank's
community lending performance as excellent. During the
examination period, HSBC Bank had $137.7 million in
community development loan commitments, $82.4 million
(60 percent) of which supported affordable housing initiatives that provided for the construction or rehabilitation of
3,517 affordable housing units in its assessment area. Loans
for economic development activity totaled $44 million, and
community service lending accounted for $11.2 million.
Examiners characterized as excellent the geographic distribution of home improvement and small business loans
23. Republic Bank Delaware National Association, Wilmington,
Delaware, is an uninsured limited purpose trust company and, thus, is
not subject to the CRA.
24. One commenter expressed concern that the proposed transaction
might result in job losses in the New York City area, and that the
proposal could result in increased fees for banking products and
services. The effect of a proposed acquisition on employment in a
community is not among the factors included in the BHC Act, and the
convenience and needs factor has been interpreted consistently by the
federal banking agencies, the courts, and Congress to relate to the
effect of a proposal on the availability and quality of banking services
in the community. See Wells Fargo & Company, 82 Federal Reserve
Bulletin 445, 457 (1996).
HSBC Bank and Republic Bank offer a full range of banking
products and services, including low-fee bank accounts, and New
HSBC Bank intends to continue to offer affordable basic checking and
savings accounts. Moreover, although the Board has recognized that
banks help to serve the banking needs of communities by making
basic services available at nominal or no charge, the CRA does not
require an institution to limit the fees charged for its services or
provide any specific types of credit products.
25. Examiners also considered the lending activity of HSBC Bank's
affiliated mortgage company HSBC Mortgage Corporation ("HSBC
Mortgage").
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Federal Reserve Bulletin • February 2000
made by HSBC Bank. Examiners found that the number of
small business loans made by HSBC Bank in LMI census
tracts was approximately 30 times greater than the number
of loans it made in non-LMI census tracts, and that the
level of home improvement loan originations in LMI census tracts was the same as the level of such originations in
non-LMI tracts. In addition, examiners characterized
HSBC's geographic distribution of home purchase and
refinance loans as adequate. HSBC's Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.) ("HMDA") lending
to moderate-income borrowers was described as good, and
such lending to low-income borrowers was found to be
adequate. Examiners found HSBC Bank's small business
lending to reflect good penetration among small and large
businesses. Between September 1, 1996, and June 30,
1998, 74 percent of HSBC Bank's small business loans in
its assessment area were for $100,000 or less, and
47 percent of those loans were to businesses with reportable gross annual revenues of $1 million or less.
HSBC has indicated that HSBC Bank and HSBC Mortgage have a variety of products and programs intended for
LMI individuals and small businesses, including mortgage
products from the Veterans Administration, Federal Housing Administration, Freddie Mac, and the State of New
York Mortgage Agency ("SONYMA"), as well as its own
low-down payment mortgage products.26 From 1997 to
1998, HSBC Bank made 419 loans under the SONYMA
Low Interest Rate Program, which provides below-market
interest rate loans for first-time homebuyers with higher
than usual debt levels. Additionally, in the last two years,
HSBC Bank has made more than $11 million in loans
through the Fannie Mae Community Home Buyer program, which focuses on LMI borrowers.27 Examiners
found no evidence of prohibited discriminatory or other
illegal credit practices by HSBC Bank.
HSBC Bank participates in several small business initiatives including the Business Consortium Fund, which provides contract financing to certified minority businesses
across the United States; the Buffalo and Erie County
Regional Development Corporation, under which HSBC
Bank has extended $1.5 million in loans to women- and
minority-owned businesses; the Excelsior Link Deposit
program, run by the Empire State Development Corporation, through which HSBC has approved loans with an
26. A number of commenters expressed concern that HSBC Bank's
mortgage products are more standardized, and thus potentially less
able to meet the credit needs of particular communities, than those of
Republic Bank. One commenter suggested that in general HSBC Bank
did not provide adequate affordable lending products or homeowner
education programs for LMI communities.
27. HSBC Bank also provides grants to assist first-time homebuyers
in meeting down payment requirements through a program sponsored
by the Federal Home Loan Bank of New York ("FHLBNY"). HSBC
Bank also participates in the FHLB System's Affordable Housing
Program, which provides subsidized funds to finance the purchase,
construction, and rehabilitation of owner-occupied and rental housing
for LMI households. One commenter requested that HSBC Bank
commit to remaining a member of FHLBNY. HSBC indicated that it
has not decided whether to continue its membership after consummation of the proposal.
aggregate balance of $16.5 million to smaller businesses;
the New York Business Development Corporation, through
which HSBC Bank provides $7.5 million for lending and
with which HSBC Bank has entered into four participations totaling $8.1 million; and the Community Preservation Corporation ("CPC") and the Community Lending
Corporation, to which HSBC Bank has contributed a total
of $9.5 million for construction lines of credit and
$12.4 million for long-term loans aimed at financing affordable housing for LMI families in downstate and upstate New York, respectively.28
The CRA performance examination concluded that
HSBC Bank had an adequate level of qualified community
development investments and grants, and exhibited an adequate responsiveness to the credit and community development needs of its assessment areas.29 At the time of the
examination, HSBC Bank had $14.9 million in investments
and deposits in various community development entities,
and $639,000 in charitable grants and contributions to
organizations supporting community development projects
and programs. A total of $14.2 million in investments and
grants were targeted for affordable housing. HSBC Development, which was acquired by HSBC Bank as part of its
1997 acquisition of First Federal Savings and Loan of
Rochester, New York, specializes in building and rehabilitating affordable housing in the Buffalo and Rochester
areas. In 1998, HSBC Development was involved in six
projects which, when completed, will have constructed or
rehabilitated 81 homes in Rochester and 54 homes in
Buffalo.
Examiners rated HSBC Bank's performance on the service test portion of the CRA examination as outstanding,
finding that HSBC Bank provided a very high level of
banking services in its assessment area. HSBC Bank operates 374 branches, 92 of which are in LMI census tracts.30
Examiners also noted that HSBC Bank offered a variety of
alternative delivery systems, including automatic teller machines ("ATMs") and banking by phone and home computer. In the New York City area, Spanish- and Chinesespeaking representatives were available to help telephone
banking customers, and 57 of HSBC Bank's ATMs in the
New York City area were programmed in Spanish, Chinese, or both. Additionally, HSBC Mortgage operated nine
mortgage loan production offices in New York State, including one in an LMI area. The CRA performance examination also concluded that HSBC Bank's record of opening
and closing branches during the examination period improved the accessibility of its service delivery systems,
especially in LMI areas.
28. One commenter urged that HSBC offer construction lending, in
particular, for affordable housing projects. The CRA does not require
an institution to offer any specific credit products but allows an
institution to help serve the credit needs of the institution's community by providing credit of the types consistent with the institution's
overall business strategy and expertise.
29. One commenter called for HSBC to expand its community
development grant program.
30. This information is based upon branch data provided by HSBC,
as of June 11, 1999.
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Examiners also noted that HSBC Bank offers no- or
low-minimum balance savings accounts for all its customers and commended HSBC Bank's community development services, such as home buyer and home improvement
seminars, credit counseling workshops, and small business
financing seminars.31
Trade Bank. Trade Bank received a "satisfactory" rating
from the OCC in its most recent CRA performance evaluation. Examiners concluded that it had an effective program
for ascertaining community credit needs, which was carried out in conjunction with Wells Fargo Bank, N.A.
("Wells Fargo"), and used information from Wells Fargo's
Corporate Community Development Group, which worked
with elected officials, public advocates, private nonprofit
agencies and for- profit developers to identify community
credit needs, especially in LMI areas. Additionally, in
1996, Trade Bank conducted a credit needs survey that
focused on credit availability in Trade Bank's particular
market of international trade finance and banking services.
Examiners also found that Trade Bank's board of directors
is generally involved in CRA activities through its
Compliance/CRA Committee.
The CRA performance examination found that Trade
Bank used specialized marketing media, such as trade
journals, trade shows, conferences, and seminars to communicate with the business community that needed the
services it provided. Examiners found that Trade Bank's
level of lending was responsive to the specialized credit
needs of its delineated community, and that Trade Bank
had addressed a significant portion of the identified need
for international trade finance in that community. As of
September 30, 1996, Trade Bank had total loans outstanding of $254 million. Examiners further found that the
geographic distribution of Trade Bank's wholesale credit
extensions was reasonable, and that there was no evidence
of prohibited or illegal credit practices.
Trade Bank's community development activities were
found to be appropriately responsive to credit and economic development needs in its delineated community. For
example, during the examination period Wells Fargo committed to loans totaling $2 million on behalf of Trade Bank
to develop five affordable housing projects with 189 units
of multifamily, low-income rental housing. All the units
were to be available to families with incomes of 60 percent
or less of the area's median family income, and all the
projects were in Trade Bank's delineated community.
Trade Bank's other current community development investments totaled more than $3 million.
145
Republic Bank. Examiners found that Republic Bank's
efforts to ascertain the credit needs of its communities were
strong and identified several products designed to meet
those needs. Republic Bank's board of directors was found
actively to support the Bank's CRA programs and to
oversee them effectively, and examiners deemed satisfactory Republic Bank's marketing efforts to inform its communities of available credit products and services.
The CRA performance examination found that Republic
Bank had a satisfactory overall record of originating loan
products that addressed the credit needs of its communities.32 The examiners' analysis of lending patterns for
mortgage, consumer, and small business loans indicated
reasonable penetration in all segments of Republic Bank's
delineated communities, including LMI areas. Using 1995
HMDA data, examiners found that for loans to LMI census
tracts in the New York City market, Republic Bank ranked
seventh in number of loans approved and fourth in dollar
amount out of 210 lenders, originating 241 loans totaling
$33.5 million. This represented 3.3 percent of the number
of originations and 3.1 percent of the total dollar amount
lent by all lenders in those LMI tracts in 1995. Regarding
loans to LMI applicants in the New York City market, the
examiners found that Republic Bank ranked seventh out of
177 lenders with 2.3 percent of the number of LMI loans
and 2.6 percent of the dollar amount. In 1996, Republic
Bank originated 183 loans worth $11.1 million to LMI
borrowers in New York City, Westchester, and Long
Island, and 79 loans totaling $3.9 million to LMI borrowers in Florida, which examiners concluded was reasonable
relative to its presence in the market, competitive factors,
and demographic characteristics. The CRA performance
examination concluded that loan applications were received from all segments of the community, including LMI
areas, and that Republic Bank was in substantial compliance with the various fair lending laws.
The CRA performance examination noted that Republic
Bank had offered special mortgages for LMI borrowers
through FNMA's Community Home Buyer Program since
1990. Examiners also noted Republic Bank's program for
low-cost, below market rate mortgages for homebuyers in
New York City Housing Partnership ("NYCHP") projects.
According to Republic Bank, in 1998, the program was
offered at two NYCHP projects in Brooklyn, two in the
Bronx, and one in Manhattan. Republic Bank is also a
founding member of the New York Mortgage Coalition
("NYMC"), which helps LMI individuals and families
purchase homes. Through the NYMC program, community
groups provide mortgage and credit education, counseling,
and application assistance, while the NYMC member
banks provide specialized mortgage products that include
lower down payments and fees. According to Republic
Bank, since 1993 the NYMC has originated approximately
$110 million in home loans in the New York City market.
Examiners found that in 1996 Republic Bank originated
517 loans to small businesses in LMI census tracts in the
New York City area, representing 27 percent of all its small
31. One commenter urged HSBC to focus on African-Americans
and Hispanics for its credit counseling and homebuyer education
services.
32. Examiners also considered the home mortgage lending activity
of Republic Bank's subsidiary, Republic Consumer Lending Group,
Inc.
C. RNYC's CRA Performance Record
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Federal Reserve Bulletin • February 2000
business loans in the region. In Florida, 31 percent of its
small business loans were made in LMI tracts. According
to Republic Bank, in 1998 it originated or renewed approximately $180 million in loans to 1,758 borrowers, and
78 percent of those loans were for less than $100,000.
Republic Bank is also a preferred Small Business Administration ("SBA") lender, and in 1998, made $1.3 million in
new SBA loans. Since 1993, Republic Bank has had a
micro-financing program in the New York City area that
provides lines of credit and short-term loans of up to
$50,000 to nonprofit organizations, start-up enterprises,
and small businesses with less than $1 million in annual
sales that do not meet its normal credit criteria. In 1998,
Republic Bank made $374,000 in micro-loans under the
program and originated almost $2 million in micro-lines of
credit.
The CRA performance examination commended Republic Bank's Community Affairs Department as a leader in
developing programs to promote affordable housing and
economic development. It found the overall level of participation in community development activities to be reasonable and consistent with available opportunities. Examiners determined that from April 1995 to March 1997,
Republic Bank made $13.5 million in community development loans and $43.4 million in community development
investments. Republic Bank has indicated that in 1998 it
originated more than $25 million in community development loans, with more than one-half of that amount for
construction and rehabilitation projects.
Examiners took note of several of Republic Bank's
community development efforts, including the New York
Equity Fund ("NYEF"), an investment pool formed to
rehabilitate New York City buildings to provide rental
housing to low- and very-low-income families; Global
Resources for Affordable Neighborhood Development
("GRAND"), which provides loans to build the new
homes projects of NYCHP; Primary Care Development
Corporation ("PCDC"), which provides loans to support
the development of primary care programs in New York
City; and the CPC. Republic Bank has indicated that it is
still involved with all these programs, and that it has made
total loans to NYEF since 1989 of more than $35 million,
total investments of $43.5 million, and an investment commitment for 1999 of $15 million. In addition, in 1999,
Republic Bank has committed to lend $5 million to
GRAND, and $5 million to support PCDC's lending program. Republic Bank has provided CPC with a $10 million
revolving line of credit, plus commitments of $4 million in
1999 for a non-recourse program and $17 million to purchase collateralized trust notes issued by CPC.33
The CRA performance examination found that Republic
Bank provided services in response to special community
credit needs, that its offices provided reasonable access to
all members of its communities, and that its branch closing
33. Several commenters praised Republic Bank's community development lending, calling it "a significant source of support for community revitalization" in New York City.
policy was consistent with regulatory guidelines. It noted
that Republic Bank provided alternative delivery systems,
including automatic teller machines ("ATMs"), and 24hour banking by phone and home computer. Additionally,
Republic Bank has indicated that it uses Spanish and
Chinese language advertising, in addition to advertising
that focuses on Hispanic and African-American communities.
Republic California. Republic California received a
"satisfactory" rating from the OCC in its most recent CRA
performance evaluation. Examiners concluded that Republic California's lending activity adequately addressed the
community's credit needs, based on an evaluation of
the volume and patterns of lending, inside and outside the
assessment area. Examiners also concluded that Republic
California's trade finance program was focused on severely underserved communities, and that a majority of
Republic California's letter of credit financing was in low
income areas that had no nearby banking offices. A substantial majority of lending by Republic California was
found to be in the assessment area, and geographic loan
distribution was determined to be good. Republic California also has a micro-loan program similar to the one
offered by Republic Bank. Republic California participates
in a number of affordable housing programs that include
below-market interest rates, reduced costs, and other features designed to respond to the needs of LMI families.
Examiners also conducted a fair lending review of Republic California's consumer lending portfolio and found no
violations of the substantive provisions of the antidiscrimination laws and regulations.
Examiners concluded that Republic California is active
in community development lending, given its size and
business focus. From January 1995 through June 1997,
Republic California originated 10 community development
loans totaling $925,000 throughout its assessment area.
The CRA performance examination also concluded that
Republic California had a good record of providing community development investments in its assessment area and
throughout Los Angeles County. At the time of the examination, Republic California had investments of $9.2 million, primarily in bonds and other securities that funded
housing for LMI families and in LMI census tracts. According to Republic California, its current community development investment portfolio in its assessment area is
$28.8 million, $27.7 million of which is invested in bonds,
securities, and federal low-income tax credits serving LMI
communities.
D. HMDA Data
The Board has also carefully considered the lending
records of HSBC and RNYC in light of comments on the
1997 and 1998 HMDA data of the organizations' subsidiaries.34 The data reflect certain disparities and weaknesses in
34. Several commenters were critical of HSBC Bank's lending
record as reflected in its 1997 and 1998 HMDA data. Among the
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the rates of loan applications, originations, and denials by
racial group and income level.35 The Board is concerned
when the record of an institution indicates such disparities
in lending, and believes that all banks are obligated to
ensure that their lending practices are based on criteria that
ensure not only safe and sound lending but also equal
access to credit by creditworthy applicants regardless of
their race or income level. The Board recognizes that
HMDA data alone provide an incomplete measure of an
institution's lending in its community because these data
cover only a few categories of housing-related lending.
HMDA data, moreover, provide only limited information
about the covered loans.36 HMDA data, therefore, have
limitations that make them an inadequate basis, absent
other information, for concluding that an institution has not
adequately assisted in meeting its community's credit
needs or has engaged in illegal lending discrimination.
Because of the limitations of HMDA data, the Board has
considered these data carefully in light of other information, including examination reports that provide an on-site
evaluation of the compliance by the subsidiary banks of
HSBC and RNYC with fair lending laws and the overall
lending and community development activities of the
banks. In particular, examiners have found substantial compliance with fair lending laws at the most recent examinations of the subsidiary depository institutions of HSBC and
RNYC. The Board also has considered the HMDA data in
light of HSBC's and RNYC's overall lending records,
which show that the organizations' subsidiary depository
institutions assist significantly in helping to meet the credit
needs of their communities, including LMI areas, through
a variety of forms of lending, including small business
loans and community development lending.
The data for 1998 generally show that HSBC37 increased
the number of HMDA-related loans it made to AfricanAmerican, Hispanic, and LMI applicants and to applicants
147
in LMI and minority census tracts,38 and that the overall
proportion of loans by HSBC to LMI applicants was only
slightly lower than the aggregate. HMDA data for 1998
show that RNYC significantly increased its overall volume
of HMDA-related loans from 1997, including increases in
the number of loans to African-American and LMI applicants and to borrowers in LMI and minority census tracts.39
Importantly, the information collected in the examination
process does not indicate that HSBC engaged in any prohibited discriminatory practices. In addition, although
HSBC received a lower percentage of loan applications
from African-Americans than the aggregate, HSBC originated loans to a higher percentage of its African-American
applicants than did the aggregate. In its most recent CRA
examination, HSBC received a "high satisfactory" rating
for its overall lending performance. As noted above, HSBC
has a number of lending programs that benefit LMI communities and individuals that are not reflected in HMDA
data. These programs include HSBC's community development lending, much of which finances affordable housing, and its small business lending.
The Board notes that HSBC has provided projections to
the New York State Banking Department ("NYSBD") that
it would increase the dispersion of its applications in
majority minority census tracts40 of New York State by the
end of 2000 and has undertaken a variety of initiatives to
increase its lending in predominantly minority and LMI
areas. The Board encourages HSBC to continue to pursue
these initiatives and, as a condition to approval of the
proposal, requires HSBC to provide the Reserve Bank with
a copy of the semiannual reports that HSBC files with the
NYSBD concerning its efforts to achieve the projections.
In addition, the Board expects HSBC to address any weaknesses in its CRA record noted at the most recent CRA
examinations.
Branch Closings
criticisms made by the commenters were that HSBC Bank makes too
few of its HMDA- related loans to minority applicants and in predominantly minority areas; that the disparity between the denial rates for
white and minority loan applicants is too large; that HSBC Bank's
overall market share of loans in LMI areas is too small; and that
HSBC Bank attracts too few minority and LMI loan applicants. One
commenter identified the level of HSBC Bank's single-family housing
lending as requiring improvement.
35. For example, HSBC's mortgage originations in LMI and minority census tracts and to African-American and Hispanic applicants, as
a percentage of its total mortgage lending, are lower relative to the
aggregate and relative to the demographics of the markets in which
HSBC operates. In this context, the aggregate means the cumulative
lending for all institutions that have reported HMDA data in a given
market.
36. The data, for example, do not account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for an independent assessment of whether an applicant
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
frequently cited for a credit denial) are not available from HMDA
data.
37. HMDA data for HSBC represent the combined lending of
HSBC Bank and HSBC Mortgage in the MSA portions of HSBC
Bank's New York assessment area.
HSBC Bank and Republic Bank together operate 456
branches in New York State, including 103 in LMI census
tracts.41 HSBC has indicated that it has not yet made any
decisions on possible branch closures or consolidations as
a result of the proposed transaction, although HSBC has
indicated that it is evaluating for possible consolidation
fewer than 20 pairs of HSBC Bank and Republic Bank
branches that have offices that are in close proximity to
each other. According to HSBC, six of the branch pairs
under review for possible consolidation involve locations
that could affect LMI areas. Five of the six branch pairs
38. In this case, minority tracts are those in which 80 percent or
more of the population are minorities.
39. HMDA data for RNYC represent the combined lending of
Republic Bank and its subsidiary, Republic Consumer Lending Group,
Inc., in Republic Bank's New York assessment area.
40. Majority minority tracts are those in which more than 50 percent
of the population are minorities.
41. This total includes branches in block numbering areas, where
the branch is located outside a MSA, and is based on branch data
provided by HSBC, as of June 11, 1999.
148
Federal Reserve Bulletin • February 2000
that might affect LMI areas involve branches that are
within 500 feet of each other. Examiners found that HSBC
Bank's branch closure policy conforms to the Joint Interagency Policy Statement Regarding Branch Closings.42
HSBC Bank's policy requires consideration of the impact
of a branch closure on the branch's neighborhood and that
requires advance written notice of any branch closure be
provided to the community. The examination found that
past branch closures by HSBC Bank were conducted in
accordance with its branch closure policy, and that HSBC
Bank provided reasons for closings and timely advance
notification to customers and regulatory authorities.
F. Conclusion on Convenience and Needs
The Board has carefully considered all the facts of record 43
including public comments received, responses to the comments, and reports of examinations of CRA performance of
the institutions involved, in reviewing the proposal's effect
on the convenience and needs of the communities to be
served by the combined organization.44 Based on a review
of the entire record, and for the reasons discussed in this
order, the Board has concluded that convenience and needs
considerations, including the CRA performance records of
42. 64 Federal Register 34,844 (1999).
43. Several commenters urged the Board to condition approval of
the proposal on HSBC's making certain community reinvestment and
other commitments. The CRA requires the Board, in considering
HSBC's application to acquire RNYC and RNYC's subsidiaries, to
review carefully the actual record of past performance of the insured
depository institutions controlled by HSBC and RNYC in helping to
meet the credit needs of their communities. Consistent with this
mandate, the Board previously has held that, to gain approval of a
proposal to acquire an insured depository institution, an applicant
must demonstrate a satisfactory record of performance under the CRA
at the time an application is filed with the Board without reliance on
plans or commitments for future action. See Totalbank Corporation of
Florida, 81 Federal Reserve Bulletin 876 (1995); First Interstate
Bank Systems of Montana, Inc., 11 Federal Reserve Bulletin 1007
(1991). The Board notes that the future activities of HSBC's subsidiary banks will be reviewed by the appropriate federal supervisors in
future performance examinations, and such CRA performance records
will be considered by the Board in any subsequent applications by
HSBC to acquire a depository institution.
44. One commenter maintained that the purchase by Republic Bank
of mortgage-backed securities ("MBSs") issued by Delta, which
recently reached a settlement with New York State authorities regarding its lending practices, suggests that Republic Bank lacks fair
lending compliance safeguards and might constitute a discriminatory
lending practice. Republic Bank purchased MBSs issued by Delta on
10 occasions between July 1997 and June 1999. The Board has
reviewed Republic Bank's standards for investing in MBSs and has
found nothing to suggest that its decisions to invest in particular
MBSs are based on any prohibited criteria. Moreover, RNYC has
indicated that it was not involved in originating the underlying loans
that were securitized or in developing the criteria governing the types
of loans that were securitized. The Board has forwarded a copy of all
comments on Delta to the Department of Justice, the Department of
Housing and Urban Development, and the Federal Trade Commission, which have responsibility for reviewing compliance with the fair
lending laws by nonbanking companies.
the subsidiary depository institutions of HSBC and RNYC,
are consistent with approval.45
Other Considerations
Under section 3 of the BHC Act, the Board may not
approve any application by a company that involves a
foreign bank unless the bank is "subject to comprehensive
supervision or regulation on a consolidated basis by the
appropriate authorities in the bank's home country."46
HSBC is the parent company for various banking and
nonbanking companies ("HSBC Group"), including subsidiary banks located in the United Kingdom and elsewhere. The Financial Services Authority ("FSA") is the
consolidated supervisor for the HSBC Group.47
The Board previously has determined, in other applications under the International Banking Act (12 U.S.C.
§ 3101 et seq.) ("IBA") and the BHC Act involving
United Kingdom banks, that those banks were subject to
home country supervision on a consolidated basis 48 The
Board also previously has determined that the HSBC
Group is supervised on substantially the same terms and
conditions as those United Kingdom banks. Moreover, the
Board previously determined that the requirements of section 3(c)(3)(B) of the BHC Act regarding comprehensive,
consolidated supervision were met in connection with an
application involving HSBC.49 Based on all the facts of
record, the Board has concluded that the requirements of
section 3(c)(3)(B) of the BHC Act regarding comprehensive, consolidated supervision are met in this case.
The BHC Act also requires the Board to determine that
the foreign bank has provided adequate assurances that it
will make available to the Board such information on its
45. One commenter raised an issue concerning a labor dispute
between Republic Bank and a union representing some of the bank's
support personnel. Several claims resulting from this dispute have
been filed with the National Labor Relations Board, which has jurisdiction over such matters.
46. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the
Board determines whether a foreign bank is subject to consolidated
home country supervision under the standards set forth in Regulation
K. 12 C.F.R. 225.13(a)(4). Regulation K provides that a foreign bank
may be considered subject to consolidated supervision if the Board
determines that the bank is supervised or regulated in such a manner
that its home country supervisor receives sufficient information on the
worldwide operations of the foreign bank, including the relationships
of the bank to its affiliates, to assess the foreign bank's overall
financial condition and compliance with law and regulation. 12 C.F.R.
211.24(c)(l)(ii).
47. In June 1998, the FSA assumed the bank supervisory functions
formerly exercised by the Bank of England. This transfer of supervisory responsibilities has not resulted in any substantial changes in the
scope or nature of the supervision of U.K. banks.
48. See Bank of Scotland, 84 Federal Reserve Bulletin 230 (1998);
West Merchant Bank Limited, 81 Federal Reserve Bulletin 519 (1995).
The Board has previously determined that HSBL and HSBC Equator
Bank pic, members of the HSBC Group, are subject to comprehensive, consolidated supervision. HSBC Equator Bank pic, 84 Federal
Reserve Bulletin 564 (1998); The Hongkong and Shanghai Banking
Corporation Limited, 81 Federal Reserve Bulletin 902 (1995).
49. Wells Fargo & Company, HSBC Holdings pic, et al, 81 Federal
Reserve Bulletin 1037 (1995).
Legal Developments
operations and activities and those of its affiliates that the
Board deems appropriate to determine and enforce compliance with the BHC Act. HSBC has committed that, to the
extent not prohibited by applicable law, it will make available to the Board such information on the operations of
HSBC and any of its affiliates that the Board deems necessary to determine and enforce compliance with the BHC
Act, the IBA, and other applicable federal law. HSBC has
also committed to cooperate with the Board to obtain any
waivers or exemptions that may be necessary in order to
enable HSBC to make any such information available to
the Board. In light of these commitments and other facts of
record,50 the Board has concluded that HSBC has provided
adequate assurances of access to any appropriate information the Board may request. For these reasons, and based
on all the facts of record, the Board has concluded that the
supervisory factors it is required to consider under section
3(c)(3) of the BHC Act are consistent with approval.
Nonbanking Activities
HSBC has also filed a notice under section 4(c)(8) of the
BHC Act to acquire RNYC's nonbanking subsidiaries and
thereby to engage in factoring, trust company functions,
agency transactional services for customer investments,
and investment transactions as principal. The Board has
determined by regulation or order that the activities for
which notice has been provided are closely related to
banking for purposes of section 4(c)(8) of the BHC Act.51
HSBC has committed to conduct these activities in conformance with Regulation Y and all applicable regulations
and orders governing each activity.52
In order to approve HSBC's notice to engage in nonbanking activities, the Board must determine that the acquisition of the nonbanking subsidiaries of RNYC and the
performance of those activities by HSBC is a proper incident to banking. That is, the Board must determine that the
proposed transaction "can reasonably be expected to produce benefits to the public . . . that outweigh possible
adverse effects, such as undue concentration of resources,
50. The Board notes that it previously has reviewed relevant provisions of confidentiality, secrecy, and other laws in the jurisdictions in
which HSBC has material operations. See HSBC Equator Bank pic, 84
Federal Reserve Bulletin 564 (1998); The Hongkong and Shanghai
Banking Corporation Limited, 81 Federal Reserve Bulletin 902
(1995).
51. See 12 C.F.R. 225.28(b)(1), (5), (7), and (8).
52. HSBC has applied to acquire Republic New York Securities
Corporation ("RNYSC"), a subsidiary of RNYC that currently is
engaged in underwriting and dealing in bank-ineligible securities, to a
limited extent, pursuant to section 20 of the Glass-Steagall Act
(12 U.S.C. § 377). However, HSBC and RNYC have committed that
on or before consummation of the proposal, RNYC will cease underwriting and dealing in bank-ineligible securities or performing any
other activity restricted by section 20 of the Glass-Steagall Act.
HSBC has indicated that all section 20 activities performed by HSBC
will be conducted solely through HSBC Securities, Inc. See HSBC
Holdings pic, et al, 82 Federal Reserve Bulletin 356 (1996).
149
decreased or unfair competition, conflicts of interests, or
unsound banking practices."53
As part of its evaluation of these factors, the Board
considers the financial condition and managerial resources
of HSBC and its subsidiaries, including the companies to
be acquired, and the effect of the proposed transaction on
those resources. For the reasons noted above, and based on
all the facts of record, the Board has concluded that financial and managerial resources are consistent with approval
of this notice.
The Board also has considered the competitive effects of
the proposed acquisition by HSBC of the nonbanking
subsidiaries of RNYC in light of all the facts of record,
including the public comments received. The markets in
which the nonbanking subsidiaries of HSBC and RNYC
compete are national or regional and are unconcentrated.
The Board concludes that consummation of this proposal
would have a de minimis effect on the markets for lending
and trust company and agency transactional services. The
Board notes that numerous competitors would remain in
each of these 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.
HSBC has indicated that the proposed transaction would
increase the financial stability of the combined organization by assisting it in maintaining a well-balanced revenue
stream and a broad capital base, and would also allow it to
realize significant cost savings. 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.54
The Board also believes that the conduct of the proposed
nonbanking activities within the framework of Regulation
Y and Board precedent is not likely to result in adverse
effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices, that would outweigh the public
benefits of the proposal, such as increased customer convenience and gains in efficiency. Accordingly, based on all
the facts of record, the Board has determined that the
balance of public interest factors 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.
HSBC has requested approval under section 4(c)(13) of
the BHC Act and section 211.5(c) of the Board's Regulation K (12 C.F.R. 211.5(c)) to acquire the non-U.S. operations of RNYC. HSBC also has applied under section
53. 12 U.S.C. § 1843(c)(8).
54. See, e.g., Norwest Corporation, 84 Federal Reserve Bulletin
1088 (1998); Deutsche Bank AG, 85 Federal Reserve Bulletin 509
(1999).
150
Federal Reserve Bulletin • February 2000
25 A of the Federal Reserve Act and section 211.4 of
Regulation K (12 C.F.R. 211.4) to acquire Republic International Bank of New York (Miami), Miami, Florida, and
Republic International Bank of New York (Delaware),
Wilmington, Delaware. In addition, Republic Bank has
applied under sections 9 and 25 of the Federal Reserve Act
(12 U.S.C. §§ 321 et seq. and 601 et seq.) to establish the
Nassau, Bahamas branch of HSBC Bank as a branch of
Republic Bank, and has applied under section 25 of the
Federal Reserve Act and section 211.4 of Regulation K to
acquire HSBC Bank's subsidiary, Marine Midland Overseas Corporation, an Agreement corporation. The Board
concludes that all the factors required to be considered
under the Federal Reserve Act, the BHC Act, and Regulation K are consistent with approval of the proposal.
In addition, Republic Bank has applied under section 9
of the Federal Reserve Act to become a member of the
Federal Reserve System after its conversion to a New York
State charter. The Board has considered the factors it is
required to consider when reviewing applications pursuant
to section 9 of the Federal Reserve Act and finds those
factors to be consistent with approval.
Conclusion
Based on the foregoing, the Board has determined that the
applications and notices should be, and hereby are, approved.55 In reaching its conclusion, the Board has considered all the facts of record in light of the factors that the
Board is required to consider under the BHC Act and other
55. Three commenters requested that the Board hold a public
meeting or hearing on the proposal. Section 3(b) of the BHC Act does
not require the Board to hold a public hearing on an application unless
the appropriate supervisory authority for the bank to be acquired
makes a timely written recommendation of denial of the application.
The Board has not received such a recommendation from the appropriate supervisory authorities.
Under its rules, the Board also may, in its discretion, hold a public
meeting or hearing on an application to acquire a bank if a meeting or
hearing is necessary or appropriate to clarify factual issues related to
the application and to provide an opportunity for testimony. 12 C.F.R.
225.16(e). Section 4 of the BHC Act and the Board's rules thereunder
provide for a hearing on a notice to acquire nonbanking companies if
there are disputed issues of material fact that cannot be resolved in
some other manner. 12 U.S.C. § 1843(c)(8); 12 C.F.R. 225.25(a)(2).
The Board has considered carefully these commenters' requests in
light of all the facts of record. In the Board's view, commenters have
had ample opportunity to submit their views, and did submit written
applicable statutes. The Board's approval is specifically
conditioned on compliance by HSBC with all the commitments made in connection with this application and notice,
and on the Board's receiving access to information on the
activities or operations of HSBC and any of its affiliates
that the Board determines to be appropriate to determine
and enforce compliance by HSBC and its affiliates with
applicable federal statutes. The Board's approval of the
nonbanking aspects of the proposal also is subject to all the
conditions set forth in this order and in Regulation Y,
including those in sections 225.7 and 225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)), and to the Board's
authority to require such modification or termination of the
activities of a bank holding company or any of its subsidiaries as the Board finds necessary to ensure compliance
with, and to prevent evasion of, the provisions of the BHC
Act and the Board's regulations and orders issued thereunder. These commitments and conditions are deemed to be
conditions imposed in writing by the Board in connection
with its findings and decision and, as such, may be enforced in proceedings under applicable law.
The acquisition of RNYC's subsidiary banks may not be
consummated before the fifteenth calendar day after the
effective date of this order, and the proposal may not be
consummated later than three months after the effective
date of this order, unless such period is extended for good
cause by the Board or by the Reserve Bank, acting pursuant to delegated authority.
By order of the Board of Governors, effective December 6, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON
Associate Secretary of the Board
comments that have been considered carefully by the Board in acting
on the proposal. The commenters' requests fail to demonstrate why
their written comments do not present their views adequately and fail
to identify disputed issues of fact that are material to the Board's
decision that would be clarified by a public meeting or hearing. For
these reasons, and based on all the facts of record, the Board has
determined that a public meeting or hearing is not required or warranted in this case. Accordingly, the requests for a public meeting on
the proposal are denied.
Legal Developments
151
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 4
Applicant(s)
Bank(s)
Effective Date
The Chase Manhattan Corporation,
New York, New York
First National of Nebraska, Inc.,
Omaha, Nebraska
Hambrecht & Quist Group,
San Francisco, California
Networking and Information Consulting,
Inc.,
West Des Moines, Iowa
Heller Financial, Inc.,
Chicago, Illinois
SFS Holding Corp,
Park Ridge, New Jersey
December 2, 1999
The Fuji Bank, Limited,
Tokyo, Japan
December 8, 1999
December 9, 1999
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
BancFirst Corporation,
Oklahoma City, Oklahoma
Banknorth Group, Inc.,
Burlington, Vermont
Chesapeake Bancorp Employee
Stock Ownership Plan with
401(k) Provisions,
Chestertown, Maryland
China Trust Holdings N.V,
Curacao, Netherlands Antilles
First State Bank,
Oklahoma City, Oklahoma
BNG Interim Bank, N.A.,
Glen Falls, New York
Chesapeake Bancorp,
Chestertown, Maryland
Kansas City
November 30, 1999
Boston
December 24, 1999
Richmond
December 13, 1999
New York
December 13, 1999
Kansas City
December 23, 1999
Richmond
December 6, 1999
Cleveland Holding Company,
Cleveland, Oklahoma
Coastal Banking Company, Inc.
Beaufort, South Carolina
China Trust Capital AJS,
Denmark
China Trust Capital BV,
Amsterdam, The Netherlands
China Trust Holdings Corporation,
New York, New York
China Trust Bank (USA),
Torrance, California
Heritage Bancorp, Inc.,
Cleveland, Oklahoma
First Bank of Cleveland,
Cleveland, Oklahoma
Lowcountry National Bank,
Beaufort, South Carolina
152
Federal Reserve Bulletin • February 2000
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Community Bancshares, Inc.,
Chanute, Kansas
Edna Bancshares,Inc.,
Edna, Kansas
First State Bank,
Edna, Kansas
American Heritage Bancorp, Inc.,
El Reno, Oklahoma
CSB Bancshares, Inc.,
Ellsworth, Kansas
Kansas City
November 29, 1999
Kansas City
December 10, 1999
Kansas City
December 2, 1999
Bancshares of Dyer, Inc.,
Dyer, Tennessee
Mid Central Bancorp, Inc.,
Warsaw, Missouri
Osage Valley Bank,
Warsaw, Missouri
The State Bank of the Alleghenies,
Covington, Virginia
Davison State Bank,
Davison, Michigan
Prague Bancorp, Inc.,
Prague, Oklahoma
The Prague National Bank,
Prague, Oklahoma
Locust Grove Bancshares, Inc.,
Locust Grove, Oklahoma
Bank of Locust Grove,
Locust Grove, Oklahoma
Lakeside Bank of Salina,
Salina, Oklahoma
UB&T Financial Services Corporation,
Rockmart, Georgia
General Bank,
Los Angeles, California
GBC Bancorp,
Los Angeles, California
Mountain West Bank,
Coeur d'Alene, Idaho
American Bancshares, Inc.,
Bradenton, Florida
Atlanta
December 10, 1999
St. Louis
December 2, 1999
Richmond
December 16, 1999
Chicago
December 8, 1999
Kansas City
December 8, 1999
Kansas City
December 9, 1999
Atlanta
December 2, 1999
San Francisco
November 18, 1999
Minneapolis
December 3, 1999
Kansas City
December 15, 1999
DSP Investments, Limited,
La Cygne, Kansas
Kansas City
December 16, 1999
The Bank of Grain Valley,
Grain Valley, Missouri
Mt. Diablo Bancshares,
Danville, California
Mt. Diablo National Bank,
Danville, California
Kansas City
December 3, 1999
San Francisco
December 22, 1999
Country Banc Holding Company,
Edmond, Oklahoma
CSB Bancshares, Inc.'s Amended
Employee Stock Ownership Plan,
Ellsworth, Kansas
Cumberland Bancorp, Inc.,
Nashville, Tennessee
Exchange National Bancshares, Inc.
Jefferson City, Missouri
F&M National Corporation,
Winchester, Virginia
Fentura Bancorp, Inc.,
Fenton, Michigan
First Ada Bancshares, Inc.,
Ada, Oklahoma
First Pryor Bancorp, Inc.,
Pryor, Oklahoma
GB&T Bancshares, Inc.,
Gainesville, Georgia
General Savings Bank of
Washington,
Bellevue, Washington
Glacier Bancorp, Inc.,
Kalispell, Montana
Gold Banc Corporation, Inc.,
Leawood, Kansas
Gold Banc Acquisition Corp. XI,
Inc.,
Leawood, Kansas
Gold Banc Corporation, Inc.,
Leawood, Kansas
Gold Banc Acquisition Corp. XIII,
Inc.,
Leawood, Kansas
Grain Valley Bancshares, Inc.,
Grain Valley, Missouri
Greater Bay Bancorp,
Palo Alto, California
Legal Developments
153
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Heritage Bancshares, Inc.,
Lucama, North Carolina
LandMark Financial Holding
Company,
Sarasota, Florida
Marion Bancshares, Inc.,
Marion, Kansas
MBT Bancshares, Inc.,
Kansas City, Missouri
Network Bancorp USA,
Ontario, California
Norton Bancshares, Inc.,
Norton, Kansas
Overton Merger Corporation,
Livingston, Tennessee
The Heritage Bank,
Lucama, North Carolina
Landmark Bank of Florida,
Sarasota, Florida
Richmond
December 10, 1999
Atlanta
December 9, 1999
Marion National Bank,
Marion, Kansas
Whiting Bankshares, Inc.,
Whiting, Kansas
Network Bank USA,
Ontario, California
Consolidated Insurance, Inc.,
Hill City, Kansas
Overton Financial Corporation,
Livingston, Tennessee
Union Bank and Trust,
Livingston, Tennessee
The Peoples Bank,
Tallassee, Alabama
Kansas City
December 3, 1999
Kansas City
November 23, 1999
San Francisco
December 21, 1999
Kansas City
December 16, 1999
Atlanta
November 26, 1999
Atlanta
December 22, 1999
Community Bank of Chaska,
Chaska, Minnesota
First National Bank,
Uvalde, Texas
Market Street Bancshares, Inc.,
Mt. Vernon, Illinois
Minneapolis
December 1, 1999
Dallas
December 23, 1999
St. Louis
December 13, 1999
The Rockhold, Brown & Company
Bank,
Bainbridge, Ohio
The First State Bank,
Hallsville, Texas
Smith River Community Bank, N.A.
Martinsville, Virginia
Potomac Valley Bank,
Petersburg, West Virginia
Bank of Steinauer,
Steinauer, Nebraska
Martin County Fidelity Bancshares
Company,
Fairmont, Minnesota
Martin County National Bank,
Fairmont, Minnesota
Oklahoma National Bank,
Tulsa, Oklahoma
Cleveland
December 1, 1999
Dallas
December 2, 1999
Richmond
December 10, 1999
Richmond
November 26 1999
Kansas City
December 15, 1999
Minneapolis
November 23, 1999
Kansas City
December 23, 1999
Peoples Bancshares of Tallassee,
Inc.,
Tallassee, Alabama
Peregrine Corporation,
Chaska, Minnesota
Praesidium Capital Corporation,
Purchase, New York
Bob S. Prince Insurance Agency,
Inc.,
McLeansboro, Illinois
Rockhold-Brown Bancshares, Inc.,
Bainbridge, Ohio
Ruff Partners, Ltd.,
Long view, Texas
Smith River Bankshares, Inc.,
Martinsville, Virginia
South Branch Valley Bancorp, Inc.:
Moorefield, West Virginia
Steinauer Bancorp,
Steinauer, Nebraska
Truman Bancshares, Inc.,
Truman, Minnesota
Twenty-First Century Financial
Services Company,
Tulsa, Oklahoma
154
Federal Reserve Bulletin • February 2000
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
UBS AG,
Zurich and Basel, Switzerland
UBS (USA) Inc.,
Stamford, Connecticut
ARI Acquisition Corporation,
Boston, Massachusetts
Allegis Realty Investors, LLC,
Hartford, Connecticut
AgriVest LLC,
Boston, Massachusetts
Allegis Capital LLC,
Hartford, Connecticut
Bank of Leipsic Company,
Leipsic, Ohio
Valley Bancorp.,
Phoenix, Arizona
North County Bancorp,
Escondido, California
North County Bank,
Escondido, California
Prime Bancshares, Inc.,
Houston, Texas
Prime Bank,
Houston, Texas
Texas Bancshares, Inc.,
San Antonio, Texas
First National Bank of South Texas,
San Antonio, Texas
Bank of South Texas,
Corpus Christi, Texas
New York
November 29, 1999
Cleveland
December 1, 1999
Minneapolis
December 8, 1999
San Francisco
December 15, 1999
San Francisco
December 10, 1999
San Francisco
November 24, 1999
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Bank of America Corporation,
Charlotte, North Carolina
Bank of Montreal,
Montreal, Canada
Bankmont Financial Corp., Chicago,
Illinois
The Bank of New York Company,
Inc.,
New York, New York
Signio, Inc.,
Redwood City, California
Burke, Christensen, and Lewis
Securities, Inc.,
Chicago, Illinois
Richmond
December 14, 1999
Chicago
December 1, 1999
BNY ESI & Co., Inc.,
New York, New York
Institutional Securities Trading, LLC,
Savannah, Georgia
DB Advisors L.L.C.,
New York, New York
New York
December 1, 1999
New York
December 1, 1999
The Fidelity Deposit and Discount
Bank,
Dunmore, Pennsylvania
Philadelphia
December 7, 1999
United Bancshares, Inc.,
Columbus Grove, Ohio
United Financial Corp.,
Great Falls, Montana
Wells Fargo & Company,
San Francisco, California
Wells Fargo & Company,
San Francisco, California
Wells Fargo & Company,
San Francisco, California
Section 4
Deutsche Bank AG,
Frankfurt am Main, Federal
Republic of Germany
Fidelity D & D Bancorp, Inc.,
Dunmore, Pennsylvania
Legal Developments
155
Section 4—Continued
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
First Citizens Bancorporation of
South Carolina, Inc.,
Columbia, South Carolina
Great Pee Dee Bancorp, Inc.,
Cheraw, South Carolina
First Federal Savings and Loan
Association of Cheraw,
Cheraw, South Carolina
Heritage Bancorp, Inc.,
Laurens, South Carolina
Heritage Federal Bank,
Laurens, South Carolina
Mountain States Micrographics, Inc.,
Englewood, Colorado
Insync Investments, Ltd,
Omaha, Nebraska
Vernon, Shall, Morgan & Company,
Akron, Ohio
Security State Bank,
Sumner, Nebraska
M&I Bank FSB,
Las Vegas, Nevada
Pleasantview Limited Partnership,
Des Moines, Iowa
Taylor & Towson Insurance Agency,
Ocilla, Georgia
Taylor & Towson Insurance Finance
Company,
Ocilla, Georgia
NatWest Group Holdings Corporation,
New York, New York
Identrus, LLC,
New York, New York
Enskilda Securities, Inc.,
Stockholm, Sweden
Darien Consulting Group,
Deluth, Georgia
Prepaid Technologies, LLC,
Birmingham, Alabama
Global Asset Management Limited,
Hamilton, Bermuda
Strand, Atkinson, Williams and York,
Inc.,
Portland, Oregon
Richmond
December 15, 1999
Richmond
December 15, 1999
Kansas City
December 24, 1999
Cleveland
December 7, 1999
Kansas City
December 22, 1999
Chicago
December 20, 1999
Atlanta
December 21, 1999
New York
November 30, 1999.
New York
November 29, 1999
Richmond
December 7, 1999
Atlanta
November 29, 1999
New York
November 29, 1999
San Francisco
November 24, 1999
First Citizens Bancorporation of
South Carolina, Inc.,
Columbia, South Carolina
First National of Nebraska, Inc.,
Omaha, Nebraska
Futura Banc Corp.,
Urbana, Ohio
Hometown Banc Corp,
Grand Island, Nebraska
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Mid State Banks, Inc.,
Cordele, Georgia
National Westminster Bank pic,
London, England
Skandinaviska Enskilda Banken AB,
Stockholm, Sweden
Southern Financial Bancorp, Inc.,
Warrenton, Virginia
Synovus Financial Corp.,
Columbus, Georgia
UBS AG,
Zurich, Switzerland
Umpqua Holdings Corporation,
Roseburg, Oregon
156
Federal Reserve Bulletin • February 2000
Sections 3 and 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Main Street Trust, Inc.
Champaign, Illinois
Banklllinois Financial Corporation,
Champaign, Illinois
First Decatur Bancshares, Inc.,
Decatur, Illinois
Banklllinois,
Champaign, Illinois
The First National Bank of Decatur,
Decatur, Illinois
First Trust Bank of Shelbyville,
Shelbyville, Illinois
FirsTech, Inc.,
Decatur, Illinois
Rainbow Investment Company, Inc.,
Tuckerman, Arkansas
First Place Financial Corporation,
Farmington, New Mexico
First National Bank of Farmington,
Farmington, New Mexico
Capital Bank,
Albuquerque, New Mexico
Western Bank,
Gallup, New Mexico
Burns National Bank of Durango,
Durango, Colorado
FPFC Management LLC,
Farmington, New Mexico
Chicago
December 9, 1999
St. Louis
December 15, 1999
San Francisco
December 17, 1999
Walden Financial Group, Inc.
Pocahontas, Arkansas
Wells Fargo & Company,
San Francisco, California
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
AmTrade International Bank of
Georgia,
Atlanta, Georgia
Columbia Bank,
Tampa, Florida
AmTrade International Bank of Florida,
Miami, Florida
Atlanta
November 29, 1999
Southern Exchange Bank,
Tampa, Florida
Atlanta
December 8, 1999
Legal Developments
157
Applications Approved Under Bank Merger Act 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
F&M Bank-Northeast,
Pulaski, Wisconsin
F&M Merger Corporation,
Kaukauna, Wisconsin
F&M Bank-Grant County,
Fennimore, Wisconsin
F&M Bank-Lakeland,
Woodrulf, Wisconsin
F&M Bank-Central,
Stevens Point, Wisconsin
F&M Bank-Superior,
Superior, Wisconsin
F&M Bank Landmark,
Hudson, Wisconsin
F&M Bank-Kiel,
Kiel, Wisconsin
F&M Bank-East Troy,
East Troy, Wisconsin
F&M Bank-Prairie du Chien,
Prairie du Chien, Wisconsin
F&M Bank-Winnebago County,
Omro, Wisconsin
F&M Bank-Jefferson,
Jefferson, Wisconsin
F&M Bank-Elkhorn,
Elkhorn, Wisconsin
F&M Bancorporation, Inc.,
Kaukauna, Wisconsin
F&M Bank-Hilbert,
Hilbert, Wisconsin
F&M Bank-Appleton,
Appleton, Wisconsin
F&M Bank-Algoma,
Algoma, Wisconsin
F&M Bank-New London,
New London, Wisconsin
F&M Bank-Darlington,
Darlington, Wisconsin
F&M Bank-Waushara County,
Wautoma, Wisconsin
F&M Bank-Brodhead,
Brodhead, Wisconsin
F&M Bank-Kaukauna,
Kaukauna, Wisconsin
Gold Banc Corporation,
Leawood, Kansas
First Capital Bank,
Guthrie, Oklahoma
Associated Bank Illinois, NA,
Rockford, Illinois
Potomac Interim Bank, Inc.,
Petersburg, West Virginia
Chicago
December 2, 1999
Chicago
December 2, 1999
Chicago
December 2, 1999
Kansas City
December 22, 1999
Kansas City
December 22, 1999
Chicago
December 3, 1999
Richmond
November 26, 1999
F&M Bank-Kaukuana,
Kaukauna, Wisconsin
F&M Bank-Northeast,
Pulaski, Wisconsin
Gold Bank,
Leawood, Kansas
Grant County Bank,
Medford, Oklahoma
Midwest Bank of Western Illinois,
Monmouth, Illinois
Potomac Valley Bank,
Petersburg, West Virginia
158
Federal Reserve Bulletin • February 2000
Applications Approved Under Bank Merger Act—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Wesbanco Bank Wheeling,
Wheeling, West Virginia
Wesbanco Bank Charleston, Inc.,
Charleston, West Virginia
Wesbanco Bank Fairmont, Inc.,
Fairmont, West Virginia
Wesbanco Bank Parkersburg, Inc.,
Parkersburg, West Virginia
Cleveland
December 7, 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.
Irontown Housing Corp. v. Board of Governors, No. 99-9549
(10th Cir., filed December 27, 1999). Petition for review of
Board order dated December 13, 1999, approving the
merger of Zions Bancorporation with First Security Corporation.
Wasserman v. Federal Reserve Bank, No. 99-6280 (2d Cir.,
filed August 26, 1999). Appeal of district court dismissal of
case challenging refusal by the Board and the Federal
Reserve Bank of New York to investigate certain matters.
Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed
August 3, 1999). Employment discrimination action.
Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D.
Cal., filed July 21, 1999). Action relating to impounded
bank drafts.
Sedgwick v. Board of Governors, No. Civ. 99 0702 (D. Arizona, filed April 14, 1999). Action under Federal Tort
Claims Act alleging violation of bank supervision requirements. The Board filed a motion to dismiss on June 15,
1999.
Hunter v. Board of Governors, No. 1:98CV02994 (ESH)
(D.D.C., filed December 9, 1998). Action under the Freedom of Information Act and the Privacy Act. The Board
filed a motion to dismiss or for summary judgment on
July 22, 1999.
Folstad v. Board of Governors, No. 1:99 CV 124 (W.D. Mich.,
filed February 17, 1999). Freedom of Information Act complaint. On November 16, 1999, the district court granted the
Board's motion for summary judgment and dismissed the
action.
Nelson v. Greenspan, No. 1:99CV00215 (EGS) (D.D.C., filed
January 28, 1999). Employment discrimination complaint.
On March 29, 1999, the Board filed a motion to dismiss the
action.
Fraternal Order of Police v. Board of Governors, No.
1:98CV03116 (WBB) (D.D.C., filed December 22, 1998).
Declaratory judgment action challenging Board labor practices. On February 26, 1999, the Board filed a motion to
dismiss the action.
Independent Community Bankers 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. On November 2, 1999, the court affirmed the Board's order.
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 and cross-appeal of district court
order granting in part and denying in part the Board's
motion for summary judgment seeking prejudgment interest
and a statutory surcharge in connection with a civil money
penalty assessed by the Board. On February 24, 1999, the
court granted the Board's appeal and denied the crossappeal, and remanded the matter to the district court for
determination of prejudgment interest due to the Board.
Fenili v. Davidson, No. C-98-01568-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.
Goldman v. Department of the Treasury, No. 98-9451 (11th
Circuit, filed November 10, 1998). Appeal from a District
Court order dismissing an action challenging Federal Reserve notes as lawful money.
Kerr v. Department of the Treasury, No. CV-S-97-01877DWH (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. The court dismissed the action on
March 31, 1999, and on April 28, 1999, the plaintiff filed a
notice of appeal.
Bettersworth v. Board of Governors, No. 97-CA-624 (W.D.
Tex., filed August 21, 1997). Privacy Act case. On June 1,
1999, the Board filed a motion for summary judgment.
Legal Developments
TERMINATION OF ENFORCEMENT ACTIONS
First Utah Bancorp,
First Utah Bank,
Premier Data
Corporation
Salt Lake City, Utah
The Federal Reserve Board announced on December 6, the
termination of the provision that addressed Year 2000
readiness of the Written Agreement by and among First
Utah Bancorp, the First Utah Bank, and Premier Data
Corporation, all of Salt Lake City, Utah, and the Federal
Reserve Bank of San Francisco.
Trans Alliance, L.P.
Bellevue,
Washington
The Federal Reserve Board, the Federal Deposit Insurance
Corporation, the National Credit Union Administration, the
Office of the Comptroller of the Currency, and the Office of
Thrift Supervision announced on December 13, 1999, the
termination of the May 21, 1999, Agreement with TransAlliance, L.P., Bellevue, Washington. The Agreement ad-
159
dressed the Year 2000 readiness of TransAlliance's electronic funds transfer services.
WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS
Arab American
New York, New
Bank
York
The Federal Reserve Board announced on December 14,
1999, the execution of a Written Agreement by and between the Arab American Bank, New York, New York,
and the Federal Reserve Bank of New York.
Foxdale Bank
South Elgin,
Illinois
The Federal Reserve Board announced on December 6,
1999, the execution of a Written Agreement by and between the Foxdale Bank, South Elgin, Illinois, and the
Federal Reserve Bank of Chicago.
A1
Financial and Business Statistics
A3
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank Credit
A4
A5
A6
Reserves, money stock, and debt measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Policy Instruments
A7
A8
A9
Federal Finance—Continued
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
A l l Maturity distribution of loan and security
holding
All
Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and liabilities
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 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
A3 6 Total outstanding
A3 6 Terms
Flow of Funds
A37
A39
A40
A41
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
A27 Federal debt subject to statutory limitation
DOMESTIC NONFINANCIAL STATISTICS
Selected Measures
A42
A42
A43
A44
A46
A47
A48
A49
Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving
2
Federal Reserve Bulletin • February 2000
INTERNATIONAL STATISTICS
Summary
Securities
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
Holdings
and
Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange
Rates
A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Assets and liabilities of commercial banks,
September 30, 1999
A66 Terms of lending at commercial banks,
November 1999
A72 Assets and liabilities of U.S. branches and
agencies of foreign banks, September 30, 1999
A76 INDEX TO STATISTICAL TABLES
Reported by Nonbanking
Enterprises in the United
Business
States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners
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
G-10
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
Group of Ten
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PMI
PO
REIT
REMIC
RHS
RP
RTC
SCO
SDR
SIC
VA
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
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
Rural Housing Service
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
DomesticNonfinancialStatistics • February 2000
1.10
RESERVES, MONEY STOCK, A N D DEBT MEASURES
Percent annual rate of change, seasonally adjusted'
1998
1999
1999
Monetary or credit aggregate
Q4
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base3
5
6
7
8
Q2
Q3r
Julyr
Aug/
Sept.1"
Oct/
Nov.
-1.8
-2.5
-.6
8.7
-1.2
1.0
-1.3
9.1
-6.6
-5.6
-6.7
10.1
— 15.4
-15.0
-17.1
8.5
-24.9
-20.3
-29.6
8.0
2.5
1.1
1.6
7.1
1.3
-.6
1.5
11.3
-33.3
-33.0
-32.0
16.6
8.1
2.9
9.5
26.3
5.0
11.0
12.9
6.3
2.8
7.2
7.6
6.71
3.5
5.8r
5.8r
7.0r
-2.2
5.3
5.5
6.0
-1.6
5.7
5.1
5.6
3.2
5.8
4.7
6.7
-9.7
5.1
6.0
7.1
5.6
5.2
9.5
6.6
10.4
5.5
16.9
n.a.
13.0
18.3r
8.7
8.7r
6.5r
5.8r
7.8
6.0
8.0
3.4
6.7
1.5
9.8
8.5
5.1
21.4
4.0
48.0
17.6
.3
3.5r
11.6
-5.5
,0r
9.7
-3.3
-3.1r
11.7
1.8
3.2
14.0
1.6
17.4
8.0
4.3
-13.4
14.4
8.2
20.3
4.2
7.2
54.1
-1.3
9.8
65.4
2
Concepts of money and debt4
Ml
M2
M3
Debt
Nontransaction
9 In M25
10 In M3 only 6
Q1
institutions
components
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
10.1
-6.7
10.4
12.8
-6.5
7.6
14.6
-7.r
-7.0
15.0
-3.9
4.2
19.0
-3.1
10.9
4.2
1.9
6.8
4.5
4.2
9.4
-3.4
5.3
-8.0
-6.3
9.1
10.8
Money market mutual funds
17 Retail
18 Institution-only
28.5
41.8
20.5
17.9
10.7
14.5
6.9
7.5
1.9
-4.6
9.9
22.9
8.7
6.3
9.6
25.1
11.7
37.4
Repurchase agreements and Eurodollars
19 Repurchase agreements10
20 Eurodollars10
18.9
3.2
14.1
-.8
-2.9r
32.0
16.2
-7.7
1.9
-17.1
7.0
-33.3
-1.2
-6.0
-11.6
-21.7
39.0
63.3
-2.8
9.2
-3.1
9.6r
-2.3
9.7r
-.3
7.8
1.4
6.8
1.0
8.3
-4.2
10.2
-5.8
10.0
11
12
13
Debt components4
21 Federal
22 Nonfederal
1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, 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
n.a.
n.a.
depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
Average of
daily figures
Average of daily figures for week ending on date indicated
1999
1999
Sept.
Oct.
Nov.
Oct. 13
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Nov. 24
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
Repurchase agreements—triparty4
7
Acceptances
Loans to depository institutions
Adjustment credit
8
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding
536,558
542,985
561,178
541,218
544,464
543,573
550,730
552,242
561,722
562,828
490,477
2,373
490,849
428
492,811
0
491,044
0
490,907
0
490,711
0
490,916
0
491,960
0
492,677
0
494,001
0
238
9,515
0
0
206
1,916
14,248
0
183
0
33,382
0
219
0
14,659
0
198
0
18,123
0
194
0
17,061
0
188
0
23,800
0
187
0
24,151
0
181
0
33,669
0
181
0
35,095
0
57
283
0
0
288
33,328
35
224
3
0
482
34,594
172
65
12
0
416
34,138
26
263
0
0
781
34,225
15
224
1
0
553
34,444
40
191
7
0
324
35,047
104
115
36
0
277
35,294
91
64
5
0
521
35,262
435
59
4
0
415
34,280
69
59
6
0
329
33,088
11,046
7,667
27,381
11,050
7,200
27,546
11,049
7,200
27,667
11,051
7,200
27,513
11,050
7,200
27,554
11,050
7,200
27,595
11,049
7,200
27,636
11,049
7,200
27,650
11,049
7,200
27,664
11,049
7,200
27,678
542,365
0
89
550,941
0
94
569,575
0
93
549,939
0
97
551,699
0
94
553,281
0
92
557,187
0
94
562,862
0
95
568,272
0
95
573,167
0
95
6,389
226
7,100
248
18,524
7,712
5,179
182
7,165
278
18,362
6,580
5,055
213
7,176
252
18,384
6,346
5,235
202
7,080
319
18,195
5,916
5,421
187
7,097
291
18,332
7,146
5,206
180
7,062
260
18,242
5,095
4,968
177
7,276
230
18,324
8,359
4,814
187
7,136
246
18,313
4,488
4,726
264
7,085
256
18,369
8,568
5,340
203
7,162
255
18,437
4,096
Nov. 10
Nov. 17
Nov. 24
ABSORBING RESERVE FUNDS
.. ..
17 Currency in circulation
18 Reverse repurchase agreements—triparty . . .
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments .
23
Other
24 Other Federal Reserve liabilities and capital
25 Reserve balances with Federal Reserve Banks
Wednesday figures
End-of-month figures
Sept.
Oct.
Nov.
Oct. 13
Oct. 20
Oct. 27
Nov. 3
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities 2
2
Bought outright—System account 3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Repurchase agreements—triparty4
7
Acceptances
Loans to depository institutions
Adjustment credit
8
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding
546,150
548,919
575,843
544,224
550,310
548,132
554,921
555,322
564,024
570,798
489,037
7,607
490,738
0
492,910
0
491,282
0
491,367
0
492,051
0
491.529
0
491,928
0
493,096
0
494,529
0
238
14,456
0
0
188
0
22,560
0
181
0
49,440
0
198
0
15,520
0
198
0
23,550
0
188
0
20,065
0
188
0
26,580
0
181
0
27,820
0
181
0
35,320
0
181
0
41,455
0
179
300
0
0
65
34,268
41
123
10
0
-297
35,556
8
65
5
0
122
33,111
16
245
0
0
2,543
34,420
14
209
6
0
353
34,614
27
174
10
0
277
35,340
533
81
210
0
669
35,131
27
58
7
0
-160
35,459
2,115
64
5
0
570
32,671
299
64
9
0
939
33,321
11,047
7,200
27,457
11,049
7,200
27,636
11,049
7,200
27,692
11,051
7,200
27,513
11,050
7,200
27,554
11,050
7,200
27,595
11,049
7,200
27,636
11,049
7,200
27,650
11,049
7,200
27,664
11,049
7,200
27,678
544,101
0
93
555,720
0
94
582,964
0
85
551,657
0
95
553,072
0
92
555,633
0
94
560,960
0
95
567,290
0
95
571,225
0
97
578,669
0
85
6,641
243
7,392
191
19,105
14,088
4,527
189
7,276
202
18,401
8,395
5,025
501
7,294
221
18,618
7,075
4,948
284
7,080
270
17,775
7,879
4,925
167
7,097
311
17,991
12,459
4,363
172
7,062
223
17,951
8,479
5,610
162
7,276
258
18,040
8,404
4,870
161
7,136
242
17,943
3,483
5,228
171
7,085
247
18,141
7,743 r
4,525
171
7,162
253
18,196
7,662
ABSORBING RESERVE FUNDS
17 Currency in circulation
.. ..
18 Reverse repurchase agreements—triparty . . .
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments .
23
Other
24 Other Federal Reserve liabilities and capital
25 Reserve balances with Federal Reserve Banks"
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
4. Cash value of agreements arranged through third-party custodial banks. These agreements are collateralized by U.S. government and federal agency securities.
5. Excludes required clearing balances and adjustments to compensate for float,
A6
DomesticNonfinancialStatistics • February 2000
1.12
RESERVES A N D BORROWINGS
Depository Institutions 1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility8
Extended credit9
1997
1998
Dec.
1
2
3
4
5
6
7
8
9
10
11
12
1996
Dec.
Dec.
May
June
July
Aug.
Sept.
Oct.
Nov.
13,330
44,525
37,844
6,681
51,174
49,758
1,416
155
87
68
10,664
44,740
37,255
7,485
47,920
46,235
1,685
324
245
79
9,021
44,305
35,997
8,308
45,018
43,435
1,583
117
101
15
10,070
42,459
34,805
7,654
44,875
43,619
1,256
127
39
89
8,539
42,632
33,856
8,776
42,394
41,133
1,261
145
18
127
7,797
44,059
34,005
10,054
41,802
40,726
1,076
309
83
226
7,802
44,664
34,069
10,595
41,871
40,742
1,129
344
72
271
0
0
0
0
0
0
0
7,698
44,519
34,089
10,430
41,787
40,590
1,197
338
56
282
0
0
6,768r
47,019
33,933
13,086
40,702
39,549r
l,153 r
281
52
221
8
0
6,288
50,742
34,677
16,065
40,965
39,631
1,334
236
157
71
7
0
1999
Biweekly averages of daily figures for two week periods ending on dates indicated
1999
July 28
1
2
3
4
5
6
7
8
9
10
11
12
Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility8
Extended credit9
Aug. 11
Aug. 25
Sept. 8
Sept. 22
Oct. 6
Oct. 20
Nov. 3
Nov. 17
Dec. 1
8,041
43,899
34,198
9,702
42,238
41,098
1,140
266
17
249
7,923
44,994
34,123
10,871
42,046
40,967
1,078
409
146
263
7,421
44,786
34,003
10,783
41,423
40,289
1,134
304
31
273
8,470
43,774
34,126
9,648
42,596
41,388
1,207
318
35
284
7,440
44,556
34,327
10,229
41,766
40,744
1,022
323
48
276
0
0
0
0
0
7,380
45,199
33,636
11,563
41,016
39,524
1,491
385
91
294
1
0
6,544
47,350
33,998
13,352
40,542
39,408
1,133
265
21
244
1
0
6,721 r
47,593
34,014r
13,579r
40,735
39,742r
993r
246
72
153
22
0
6,524
49,510
34,046
15,464
40,569
39,196
1,373
329
263
62
5
0
5,934
52,797
35,510
17,287
41,444
40,075
1,369
133
64
62
7
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates refer
to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Borrowing at the discount window under the terms and conditions established for the
Century Date Change Special Liquidity Facility in effect from October 1, 1999 through
April 7, 2000.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit1
On
1/14/00
Effective
date
Seasonal credit
Previous
rate
On
1/14/00
Effective
date
Special Liquidity Facility credit4
Extended credit
Previous
rate
On
1/14/00
Effective
date
Previous
rate
On
1/14/00
Effective
date
Previous
rate
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
11/16/99
11/18/99
11/18/99
11/16/99
11/16/99
11/17/99
11/18/99
11/18/99
11/18/99
11/16/99
11/17/99
11/16/99
Range of rates for adjustment credit in recent years
Range (or
level)—All
F.R. Banks
9
20
11
12
3
10
21
22
16
20
1
3
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10.5
10.5
10.5-11
11
11-12
12
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
1981—May 5
8
Nov. 2
6
Dec. 4
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13-14
14
13-14
13
12
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
9
13
Nov. 21
26
Dec. 24
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985—May 20
24
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
5.5-6
6
6
6
1988—Aug.
11
6-6.5
6.5
6.5
6.5
1989—Feb. 24
27
6.5-7
7
7
7
F.R. Bank
of
N.Y.
In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
13
14
14
13
13
12
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17
1984—Apr.
1990—Dec. 19
6.5
6.5
1
4
30
2
13
17
6
7
20
24
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
2
7
3-3.5
3
1994—May 17
18
Aug. 16
18
Nov. 15
17
3-3.5
3.5
3.5^1
4
4-4.75
4.75
3.5
3.5
4
4
4.75
4.75
1
9
4.75-5.25
5.25
5.25
5.25
1996—Jan. 31
Feb. 5
5.00-5.25
5.00
5.00
5.00
1998—Oct. 15
16
Nov. 17
19
4.75-5.00
4.75
4.50-4.75
4.50
4.75
4.75
4.50
4.50
1999—Aug. 24
26
Nov. 16
18
4.50-4.75
4.75
4.75-5.00
5.00
4.75
4.75
4.75
5.00
5.00
5.00
1991—Feb.
Apr.
May
Sept.
Nov.
Dec.
1992—July
1995—Feb.
9
1. Available on a short-term basis to help depository institutions meet temporary needs for
funds that cannot be met through reasonable alternative sources. The highest rate established
for loans to depository institutions may be charged on adjustment credit loans of unusual size
that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period; however, it is never less than
the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit may
be provided when exceptional circumstances (including sustained deposit drains, impaired
access to money market funds, or sudden deterioration in loan repayment performance) or
practices involve only a particular institution, or to meet the needs of institutions experiencing
difficulties adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion
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
Effective date
In effect Jan. 14, 2000
3
3
ordinarily is reestablished on the first business day of each two-week reserve maintenance
period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4. Available in the period between October 1, 1999, and April 7, 2000, to help depository
institutions in sound financial condition meet unusual needs for funds in the period around the
century date change. The interest rate on loans from the special facility is the Federal Open
Market Committee's intended federal funds rate plus 150 basis points.
5. 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
DomesticNonfinancialStatistics • February 2000
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Type of deposit
1
2
Net transaction accounts2
$0 million-$44.3 million3 .
More than $44.3 million4 .
12/30/99
12/30/99
3
Nonpersonal time deposits^
12/27/90
4
Eurocurrency liabilities6. . .
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, 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 instalments, 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 30, 1999, for depository institutions that report weekly, and with the period
beginning January 20, 2000, for institutions that report quarterly, the amount was decreased
from $46.5 million to $44.3 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 30, 1999, for depository institutions that report
weekly, and with the period beginning January 20, 2000, for institutions that report quarterly,
the exemption was raised from $4.9 million to $5.0 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 Vi years was reduced from 3 percent to 1 l /l 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 l /l years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of l'/2
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 11/2 years (see note 5).
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1999
Type of transaction
and maturity
1997
1996
1998
May
Apr.
June
Aug.
July
Sept.
Oct.
U . S . T R E A S U R Y SECURITIES 2
23
24
25
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
26
27
Matched transactions
Gross purchases
Gross sales
28
29
Repurchase agreements
Gross purchases
Gross sales
30
Net change in U.S. Treasury securities
1
?
3
4
5
6
7
8
9
10
11
1?
N
14
15
16
17
18
19
20
21
22
9,901
0
426,928
426,928
0
9,147
0
436,257
435,907
0
3,550
0
450,835
450,835
2,000
0
0
48,142
48,142
0
0
0
37,107
37,107
0
0
0
35,045
35,045
0
0
0
42,037
42,037
0
0
0
37,052
37,052
0
0
0
42,643
42,643
0
0
0
35,844
35,844
0
524
0
30,512
-41,394
2,015
5,549
0
41,716
-27,499
1,996
6,297
0
46,062
-49,434
2,676
1,677
0
3,768
-3,370
726
1,421
0
3,768
-4,607
0
880
0
2,740
-5,540
0
951
0
3,279
-368
41
429
0
7,669
-10,798
0
960
0
3,468
-2,125
0
0
0
3,831
-368
170
3,898
0
-25,022
31,459
20,080
0
-37,987
20,274
12,901
0
-37,777
37,154
3,362
0
-3,768
3,020
4,442
0
-3,768
2,562
948
0
-2,740
5,540
0
0
-3,279
0
1,272
0
-4,751
8,433
0
0
-3,468
2,125
0
0
-3,831
0
1,116
0
-5,469
6,666
3,449
0
-1,954
5,215
2,294
0
-5,908
7,439
945
0
0
0
1,584
0
0
2,045
65
0
0
0
0
0
0
373
447
0
-2,918
1,290
0
0
0
0
0
0
0
0
1,655
0
—20
3,270
5,897
0
-1,775
2,360
4,884
0
-2,377
4,842
262
0
0
350
2,890
0
0
0
0
0
0
0
0
0
0
0
1,075
0
0
1,075
0
0
0
0
0
0
0
374
17,094
0
2,015
44,122
0
1,996
29,926
0
4,676
6,246
0
726
10,337
0
0
1,893
0
0
951
0
41
3,223
0
0
960
0
0
0
0
170
3,092,399
3,094,769
3,577,954
3,580,274
4,395,430
4,399,330
366,838
364,476
356,960
358,362
380,872
380,464
347,067
346,747
374,032
373,159
348,014
350,151
332,708
330,856
457,568
450,359
810,485
809,268
512,671
514,186
45,067
48,867
27,605
30,531
17,710
14,614
27,707
33,612
23,097
23,717
29,369
24,337
100
7,707
19,919
41,022
19,835
4,082
6,008
5,397
-4,675
3,476
3,855
-5,924
0
0
409
0
0
1,540
0
25
322
0
0
0
0
0
0
0
0
52
0
0
10
0
0
11
0
0
0
0
0
50
75,354
74,842
160,409
159,369
284,316
276,266
20,623
22,937
38,167
36,962
32,786
32,104
46,941
48,840
61,968
56,053
53,224
47,963
9,636
24,092
103
-500
7,703
-2,314
1,205
630
-1,909
5,904
5,261
-14,506
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
68,061
45,501
F E D E R A L A G E N C Y OBLIGATIONS
31
3?
33
Outright transactions
Gross purchases
Gross sales
Redemptions
34
35
Repurchase agreements
Gross purchases
Gross sales
36
Net change in federal agency obligations
Reverse repurchase agreements
3 7 Gross purchases
3 8 Gross sales
39
40
Repurchase agreements
Gross purchases
Gross sales
0
0
0
0
0
0
0
0
0
0
41
Net change in triparty obligations
0
0
0
0
0
0
0
0
0
22,560
7,213
6,028
-6,584
9,380
9,116
2,130
42
Total net change in System Open Market Account. . .
20,021
40,522
27,538
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
1,768
2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.
A10
1.18
DomesticNonfinancialStatistics • February 2000
FEDERAL RESERVE B A N K S
Condition and Federal Reserve Note Statements 1
Millions of dollars
Wednesday
1999
Account
Oct. 2 7
Nov. 3
End of month
1999
Nov. 10
Nov. 17
Nov. 2 4
Sept. 30
Oct. 3 1
Nov. 3 0
Consolidated condition statement
ASSETS
11,050
7.200
317
11,049
7,200
305
11,049
7,200
289
11,049
7,200
272
11,049
7,200
261
11,047
7,200
298
11,049
7,200
331
11,049
7,200
237
211
0
0
824
0
0
92
0
0
2,184
0
0
372
0
0
480
0
0
173
0
0
78
0
0
20,065
26,580
27,820
35,320
41,455
0
22,560
49,440
188
0
1 Gold certificate account
2 Special drawing rights certificate account
3
188
0
181
0
181
0
181
0
238
14,456
188
0
181
0
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Triparty
Obligations
7 Repurchase agreements—triparty
2
3
Federal agency obligations
8 Bought outright
9 Held under repurchase agreements
3
492,051
491,529
491,928
493,096
494,529
496,644
490,738
492,910
11 Bought outright
Bills
17
13
Notes
14
Bonds
15 Held under repurchase agreements
492,051
200,350
211,272
80,429
0
491,529
199,823
211,275
80,430
0
491,928
200,217
211,279
80,432
0
493,096
200,414
212,248
80,434
0
494,529
199,902
213,266
81,361
0
489,037
197,183
211,801
80,053
7,607
490,738
199,035
211,273
80,430
0
492,910
198,278
213,270
81,362
0
16 Total loans and securities
512,515
519,120
520,021
530,782
536,538
511,817
513,659
542,609
6,656
1,341
8,434
1,346
6,984
1,347
8,857
1,347
8,204
1,348
5,649
1,336
4,726
1,344
9,245
1,353
16,120
17,464
16,254
17,264
16,258
17,661
16,262
14,861
16,266
15,518
16,105
16,864
16,251
17,678
16,292
15,297
572,664
580,970
580,809
590,629
596,384
570,317
572,239
603,282
528,449
0
533,724
0
540,025
0
543,930
0
551,338
0
517,035
0
528,509
0
555,595
0
19,533
21,511
15,551
20,536
19,673
28,759
20,420
20,517
14,775
4,363
172
223
15,480
5,610
162
258
10,277
4,870
161
242
14,889
5,228
171
247
14,723
4,525
171
253
21,684
6,641
243
191
15,502
4,527
189
202
14,771
5,025
501
221
6,730
4,444
7,696
4,360
7,291
4,343
8,022
4,518
7,178
4,583
5,418
5,323
4,909
4,455
8,552
4,600
559,156
567,291
567,209
577,006
582,771
556,535
558,293
589,265
6,354
5,952
1,201
6,361
5,952
1,366
6,372
5,952
1,276
6,378
5,952
1,294
6,374
5,952
1,287
6,330
5,952
1,499
6,355
5,952
1,639
6,372
5,952
1,694
572,664
580,970
580,809
590,629
596,384
570,317
572,239
603,282
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10 Total U.S. Treasury securities
4
17 Items in process of collection
18 Bank premises
Other assets
19 Denominated in foreign currencies
6
2 0 All other
5
2 1 Total assets
LIABILITIES
2 2 Federal Reserve notes
2
2 3 Reverse repurchase agreements—triparty
2 4 Total deposits
25
26
27
28
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
2 9 Deferred credit items
7
3 0 Other liabilities and accrued dividends
31 Total liabilities
CAPITAL ACCOUNTS
3 2 Capital paid in
3 3 Surplus
3 4 Other capital accounts
3 5 Total liabilities and capital accounts
MEMO
3 6 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
3 7 Federal Reserve notes outstanding (issued to Banks)
38
LESS: Held by Federal Reserve Banks
Federal Reserve notes, net
39
40
41
42
43
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
4 4 Total collateral
827,758
299,309
528,449
826,931
293,208
533,724
826,244
286,220
540,025
825,430
281,501
543,930
825,190
273,852
551,338
827,075
310,040
517,035
827,249
298,740
528,509
825,379
269,785
555,595
11,050
7,200
0
510,199
11,049
7,200
0
515,475
11,049
7,200
1,847
519,929
11,049
7,200
0
525,681
11,049
7,200
0
533,089
11,047
7,200
0
498,788
11,049
7,200
0
510,261
11,049
7,200
0
537,346
528,449
533,724
540,025
543,930
551,338
517,035
528,509
555,595
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Cash value of agreements arranged through third-party custodial banks.
3. Face value of the securities.
4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.
5. Valued monthly at market exchange rates.
6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
7. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
1999
Type of holding and maturity
End of month
1999
Nov. 30
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Nov. 24
Sept. 30
Oct. 31
1 Total loans
211
824
92
2,184
372
480
173
78
2 Within fifteen days1
3. Sixteen days to ninety days
181
29
766
58
43
47
2,177
5
359
12
330
150
106
66
46
31
492,051
491,529
491,928
493,096
494,529
496,644
490,738
492,910
10,377
103,172
141,937
121,200
50,211
65,153
17,543
96,798
141,595
120,225
50,213
65,154
18,076
102,309
135,945
120,226
50,216
65,156
11,795
104,149
140,438
122,120
50,513
64,082
16,011
99,625
140,233
123,135
50,517
65,009
10,704
96,836
152,924
121,199
50,204
64,777
7,085
105,645
141,442
121,201
50,212
65,153
8,277
102,802
143,889
122,413
50,520
65,010
11 Total federal agency obligations
188
188
181
181
181
14,694
188
181
12
13
14
15
16
17
7
6
45
10
120
0
7
6
45
10
120
0
0
6
45
10
120
0
0
31
20
10
120
0
0
31
20
10
120
0
14,496
17
51
10
120
0
7
6
45
10
120
0
0
31
20
10
120
0
4 Total U.S. Treasury securities 2
5
6
7
8
9
10
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
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.
2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
A12
1.20
Domestic Financial Statistics • February 2000
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE 1
Billions of dollars, averages of daily figures
1999
Item
1995
Dec.
1996
Dec.
1997
Dec.
1998
Dec.
Apr.
Total reserves3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base 6
June
July
Aug.
Sept.
Oct.
Nov.
41.98
41.67
41.67
40.90
541.20
42.07
41.72
41.72
40.94
544.42
42.11
41.77
41.77
40.92
549.56
40.94 r
40.66
40.66
39.79
557.16 r
41.22
40.98
40.98
39.89
569.35
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1
2
3
4
5
May
56.45
56.20
56.20
55.16
434.10
50.16
50.01
50.01
48.75
451.37
46.86
46.54
46.54
45.18
478.88
44.90
44.79
44.79
43.32
512.32
43.98
43.81
43.81
42.82
528.74
44.36
44.23
44.23
43.11
534.86
42.87
42.72
42.72
41.61
537.63
Not seasonally adjusted
6
7
8
9
10
Total reserves7
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves8
Monetary base 9
58.02
57.76
57.76
56.73
439.03
51.45
51.30
51.30
50.04
456.63
48.01
47.69
47.69
46.33
484.98
45.12
45.00
45.00
43.54
518.28
43.67
43.50
43.50
42.51
526.77
44.91
44.78
44.78
43.65
533.12
42.43
42.29
42.29
41.17
535.88
41.85
41.54
41.54
40.77
540.98
41.92
41.58
41.58
40.79
543.87
41.85
41.51
41.51
40.65
548.13
40.77
40.49
40.49
39.62
555.51 r
41.04
40.80
40.80
39.70
571.82
57.90
57.64
57.64
56.61
444.45
1.29
.26
51.17
51.02
51.02
49.76
463.40
1.42
.16
47.92
47.60
47.60
46.24
491.79
1.69
.32
45.02
44.90
44.90
43.44
525.06
1.58
.12
43.65
43.48
43.48
42.49
533.49
1.16
.17
44.88
44.75
44.75
43.62
539.98
1.26
.13
42.39
42.25
42.25
41.13
542.82
1.26
.15
41.80
41.49
41.49
40.73
548.07
1.08
.31
41.87
41.53
41.53
40.74
550.86
1.13
.34
41.79
41.45
41.45
40.59
555.19
1.20
.34
40.70
40.42
40.42
39.55
562.64 r
1.15r
.28
40.97
40.73
40.73
39.63
578.94
1.33
.24
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS10
11
12
13
14
15
16
17
Total reserves 11
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base 12
Excess reserves' 3
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK A N D DEBT MEASURES 1
Billions of dollars, averages of daily figures
1999
Item
1995
Dec.
1996
Dec.
1997
Dec.
1998
Dec.
Aug.'
Sept.'
Oct.'
Nov.
Seasonally adjusted
1
2
3
4
Measures2
Ml
M2
M3
Debt
5
6
7
8
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
l,126.9 r
3,649.3r
4,618.6 r
13,716.6r
l,081.6 r
3,824.2r
4,955.8 r
14,463.6r
l,075.2 r
4,046.7'
5,403.4
15,227.9'
1,093.7'
4,401.4'
5,995.7'
16,250.4'
1,102.9
4,567.2
6,216.5
16,971.3
1,094.0
4,586.5
6,247.5
17,071.1
1,099.1
4,606.4
6,297.0
17,164.4
1,108.6
4,627.7
6,385.8
n.a.
372.3
8.5r
389.4
356.7
394.1
8.3r
403.0
276.2
424.5
8.1'
396.5
246.2
459.2
8.2'
377.5
248.8
490.9
9.0
363.4
239.6
495.0
8.7
352.9
237.4
499.2
8.5
354.6
236.8
505.2
8.2
357.5
237.7
2,522.4
969.3r
2,742.6
1,131.6r
2,971.5
1,356.7'
3,307.6
1,594.3'
3,464.3
1,649.3
3,492.5
1,661.0
3,507.3
1,690.6
3,519.1
1,758.2
Commercial banks
11 Savings deposits, including MMDAs
12 Small time deposits9
13 Large time deposits10' 11
775.3
575.0
346.5r
905.2
593.7
414.7r
1,022.9
626.1
489.9'
1,189.8
626.0
540.4'
1,269.2
615.5
532.0
1,284.4
619.7
541.0
1,288.9
623.4
565.4
1,287.5
628.5
596.2
Thrift institutions
14 Savings deposits, including MMDAs
15 Small time deposits9
16 Large time deposits 10
359.8
356.7
74.5
367.1
353.8
78.4
377.3
343.2
85.9
415.2
325.9
89.1
456.6
313.6
89.2
458.3
314.7
89.9
457.0
316.1
89.3
454.6
318.5
90.1
Money market mutual funds
17 Retail
18 Institution-only
455.5
255.9
522.8
313.3
602.0
379.9
750.7
516.2
809.5
556.4
815.4
559.3
821.9
571.0
829.9
588.8
Repurchase agreements and Eurodollars
19 Repurchase agreements12
20 Eurodollars12
198.7
93.7
211.3
113.9
251.7
149.3
297.8
150.7
310.7
161.1
310.4
160.3
307.4
157.4
317.4
165.7
3,639.1
10,077.5r
3,781.3
10,682.3r
3,711.0
13,260.3
3,698.1
13,373.0
3,680.1
13,484.3
n.a.
n.a.
Nontransaction
9 In M27
10 In M3 only 8
components
Debt components
21 Federal debt
22 Nonfederal debt
3,800.3
11,427.6'
3,750.8
12,499.6'
Not seasonally adjusted
23
24
25
26
Measures2
Ml
M2
M3
Debt
27
28
29
30
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
l,152.6 r
3,671.9r
4,638.2r
13,716.2r
l,105.1 r
3,844.0r
4,972.7 r
14,460.3'
1,097.8'
4,064.9'
5,419.6
15,224.9'
1,115.7'
4,418.2'
6,011.8'
16,247.2'
1,098.1
4,561.6
6,199.5
16,910.6
1,088.6
4,572.2
6,219.3
17,016.8
1,096.4
4,590.9
6,280.1
17,107.9
1,113.0
4,626.6
6,390.8
n.a.
376.2
8.8r
407.2
360.5
397.9
8.6r
419.9
278.8
428.9
8.3'
412.3
248.3
464.2
8.4r
392.4
250.7
490.2
8.6
362.0
237.3
493.4
8.5
351.0
235.7
499.0
8.4
354.1
234.9
506.4
8.3
361.2
237.1
2,519.3
966.3r
2,738.9
l,128.7 r
2,967.2
1,354.7'
3,302.5
1,593.6'
3,463.5
1,638.0
3,483.6
1,647.1
3,494.6
1,689.1
3,513.6
1,764.2
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits9
35 Large time deposits10' 11
774.1
573.8
345.7r
903.3
592.7
413.2 r
1,020.4
625.3
487.3'
1,186.8
625.4
536.8'
1,268.4
615.1
532.2
1,277.5
619.3
541.5
1,279.5
624.2
568.4
1,283.4
628.9
598.1
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits9
38 Large time deposits10
359.2
355.9
74.3
366.3
353.2
78.1
376.4
342.8
85.4
414.1
325.6
88.5
456.3
313.4
89.2
455.8
314.5
90.0
453.6
316.5
89.8
453.2
318.7
90.4
Money market mutual funds
39 Retail
40 Institution-only
456.1
257.7
523.2
316.0
602.3
384.5
750.6
523.3
810.4
548.0
816.4
547.5
820.7
566.7
829.4
591.0
Repurchase agreements and Eurodollars
41 Repurchase agreements12
42 Eurodollars12
193.8
94.9
205.7
115.7
245.1
152.3
290.5
154.5
308.9
159.7
309.1
159.1
306.0
158.2
318.3
166.4
3,665.8
13,244.8
3,655.8
13,361.0
3,635.4
13,472.5
Nontransaction
31 In M2 7
32 In M3 only8
components
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
3,645.9
10,070.3r
3,787.9
10,672.-4r
3,805.8
11,419.2'
3,754.9
12,492.3'
n.a.
n.a.
A14
DomesticNonfinancialStatistics • February 2000
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
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 deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enter-
prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A15
Assets and Liabilities 1
A. All commercial banks
Billions of dollars
Wednesday figures
Monthly averages
19991
1998
Account
Nov.
May
June
July
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 17
Nov. 24
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
:....
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
17
18
19
20
21
22
23
24
25
26
28 Residual (assets less liabilities)
4,582.5
1,242.4
820.0
422.4
3,340.2
972.6
1,379.8
98.5
1,281.3
480.1
122.4
385.3
214.7
253.5
344.9
4,607.0
1,246.3
817.4
428.9
3,360.6
980.4
1,396.8
106.4
1,290.4
481.0
116.0
386.4
207.5
263.7
355.2
4,626.3
1,246.9
809.9
437.0
3,379.4
984.6
1,421.4
115.2
1,306.1
481.1
107.9
384.5
218.2
271.1
358.4
4,696.6
1,245.3
796.6
448.7
3,451.4
1,003.8
1,436.0
116.7
1,319.3
484.9
130.8
395.7
213.7
277.5
365.8
4,639.2
1,230.8
796.5
434.3
3,408.4
995.8
1,427.2
116.0
1,311.2
480.8
114.7
389.8
220.1
269.0
356.1
4,668.5
1,234.7
794.0
440.8
3,433.8
1,001.9
1,430.4
116.3
1,314.1
481.2
129.3
391.0
209.8
271.9
360.5
4,682.0
1,236.6
792.8
443.8
3,445.4
1,003.8
1,435.5
116.7
1,318.8
484.6
127.4
394.1
209.1
267.3
364.2
4,720.9
1,258.9
801.9
457.0
3,461.9
1,004.6
1,437.1
117.1
1,319.9
488.1
132.1
400.0
219.7
297.9
373.1
5,289.4
5,325.4
5,319.4
5337.0
53743
5,414.7
5,494.0
5,424.7
5,4513
5,463.2
5,552.0
3,374.9
649.6
2,725.2
723.6
2,001.7
994.4
321.5
672.9
203.9
271.1
3,377.2
655.7
2,721.5
718.8
2,002.7
1,017.0
335.5
681.4
215.1
275.5
3,392.4
650.0
2,742.4
722.5
2,019.9
1,018.5
337.2
681.3
212.5
274.3
3,385.4
636.8
2,748.7
720.4
2,028.3
1,025.5
336.5
689.0
222.4
279.7
3,395.9
634.9
2,761.0
728.6
2,032.5
1,044.8
340.5
704.3
218.3
282.5
3,435.1
632.3
2,802.8
765.7
2,037.1
1,042.9
350.0
692.9
219.6
286.8
3,480.1
624.9
2,855.2
803.9
2,051.3
1,059.0
352.0
707.0
226.0
294.0
3,456.4
618.9
2,837.5
783.0
2,054.5
1,044.5
357.0
687.6
219.8
284.5
3,458.5
617.0
2,841.5
794.2
2,047.3
1,041.8
348.1
693.7
224.7
289.0
3,460.0
613.8
2,846.2
802.8
2,043.4
1,047.7
344.7
703.0
231.8
293.9
3,503.2
647.3
2,856.0
812.2
2,043.8
1,078.8
361.0
717.9
221.5
301.1
4,844.2
4,884.7
4,897.7
4,913.0
4,941.5
4,984.4
5,059.0
5,005.2
5,014.0
5,033.4
5,104.7
423.6r
7
4,547.6
1,226.4
814.0
412.4
3,321.2
964.5
1,367.4
97.9
1,269.5
481.1
122.2
385.9
223.9
258.2
348.0
4,857.0r
27 Total liabilities
4,553.1
1,211.2
812.8
398.3
3,341.9
963.3
1,366.0
103.7
1,262.4
491.0
131.0
390.5
224.4
261.0
345.5
3,322.7
670.2
2,652.5
726.1
1,926.4
l,016.6r
321.4r
695.2r
214.5
303.2
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign oflices
Other liabilities
4,516.8
1,192.7
799.9
392.8
3,324.1
957.3
1,360.4
104.3
1,256.2
495.8
126.8
383.8
227.4
259.9
344.1
5,280.6r
16 Total assets 6
4,529.6r
1,222.0'
790.0
432.0r
3,307.6r
955.0r
1,323.7
102.6
1,221.1
496.0
150.0
382.9
217.8r
251.2
339.9"
445.2
440.7
421.8
423.9
432.8
430.2
435.0
419.5
437.3
429.7
447.3
Not seasonally adjusted
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
4,543.1/
l,228.2 r
792.4
435.8r
3,314.8r
954.5r
1,327.7
103.4
1,224.3
496.4
152.5r
383.7
227.3r
257.9
338.3r
4,519.5
1,198.2
808.1
390.1
3,321.3
961.7
1,359.8
103.9
1,256.0
493.4
126.6
379.8
223.2
257.6
345.6
4,546.9
1,207.9
812.3
395.6
3,339.0
963.6
1,366.6
103.3
1,263.3
488.3
130.4
390.1
221.7
256.6
351.4
4,531.6
1,215.2
806.1
409.1
3,316.4
962.1
1,368.4
97.7
1,270.7
478.7
120.2
386.9
217.6
250.4
350.6
4,561.5
1,229.5
808.2
421.3
3,332.0
963.9
1,382.4
98.7
1,283.7
481.2
118.7
385.8
206.9
243.1
347.7
4,597.1
1,235.2
807.3
427.9
3,361.9
976.5
1,400.5
107.2
1,293.3
483.9
112.7
388.3
204.0
261.0
357.2
4,630.8
1,243.4
m.2
439.2
3,387.5
985.6
1,425.1
116.1
1,309.0
481.8
108.7
386.2
214.7
271.4
355.8
4,710.6
1,251.6
798.7
452.9
3,459.0
1,003.9
1,440.8
117.7
1,323.1
485.2
132.2
396.9
220.4
284.7
364.3
4,664.0
1,237.9
798.5
439.4
3,426.0
1,000.4
1,432.5
117.0
1,315.6
481.4
118.3
393.4
227.8
271.4
358.9
4,683.1
1,240.5
796.6
443.9
3,442.6
1,001.9
1,438.4
117.4
1,321.1
481.2
130.2
390.9
215.8
272.0
360.8
4,695.3
1,242.1
794.0
448.1
3,453.2
1,004.3
1,439.7
117.8
1,321.9
484.5
128.5
396.0
217.8
282.1
361.3
4,727.4
1,263.6
802.0
461.6
3,463.8
1,003.3
1,440.1
118.1
1,322.0
488.5
133.4
398.5
221.0
293.6
365.7
5308.4 r
5,287.1
5317.8
5,292.0
53003
5360.0
5,413.4
5,520.4
5,4625
5,472.1
5,497.0
5,548.1
3,348.5
680.5
2,668.0
731.0
1,937.0
1,022. l r
325.1r
(91.Cf
216.4
303.6
3,365.5
640.6
2,724.9
724.8
2,000.1
1,002.5
322.4
680.1
210.1
270.8
3,375.2
650.8
2,724.4
716.1
2,008.3
1,020.5
335.4
685.1
209.3
274.8
3,376.1
639.3
2,736.8
715.8
2,021.0
1,009.2
332.6
676.5
204.7
273.5
3,371.5
620.4
2,751.1
717.7
2,033.3
1,002.0
329.4
672.7
217.4
279.6
3,394.5
629.0
2,765.5
730.0
2,035.4
1,039.7
336.8
702.9
214.3
281.4
3,437.6
624.1
2,813.5
767.3
2,046.2
1,045.7
347.7
698.0
221.3
285.3
3,506.5
634.6
2,871.9
809.0
2,062.8
1,066.0
356.4
709.6
227.7
294.1
3,481.4
624.7
2,856.7
785.7
2,071.0
1,056.0
358.9
697.0
217.9
283.7
3,486.8
618.1
2,868.7
799.7
2,069.0
1,046.4
350.9
695.6
225.8
289.0
3,494.3
630.9
2,863.4
806.2
2,057.2
1,057.1
350.0
707.1
225.7
294.1
3,508.1
643.3
2,864.7
818.7
2,046.0
1,078.9
363.6
715.3
231.7
301.5
4^905r
4,848.8
4,879.8
4,863.4
4,870.5
4,929.9
4,989.9
5,094-3
5,039.0
5,047.9
5,071.1
5,120.2
56 Residual (assets less liabilities) 7
417.8r
438.3
438.0
428.6
429.8
430.1
423.5
426.1
423.5
424.2
425.9
427.9
MEMO
57 Revaluation gains on oif-balance-sheet
items 8
58 Revaluation losses on off-balancesheet items 8
114.2
89.5
89.5
91.8
96.5
98.4
96.5
98.2
89.8
93.5
92.0
104.5
113.0
91.0
91.2
92.6
98.8
97.1
95.2
97.6
90.7
93.8
92.4
102.8
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44 Total assets 6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
....
55 Total liabilities
Footnotes appear on p. A21.
A16
1.26
Domestic Financial Statistics • February 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
Account
1999r
1998
Nov.
Wednesday figures
May
June
July
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 17
Nov. 24
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
3,918.7 r
1,006.4
708.0
298.4
2,912.3 r
730.8
l,301.1 r
102.6
l,198.5 r
496.0
84.8
299.5'
190.7r
216.4
303.0r
17
18
19
20
21
22
23
24
25
26
....
27 Total liabilities
28 Residual (assets less liabilities)7
4,027.0
1,036.7
728.1
308.6
2,990.2
771.9
1,349.0
97.9
1,251.0
481.1
69.6
318.7
196.4
223.2
315.8
4,058.8
1,052.5
736.0
316.5
3,006.4
777.1
1,362.2
98.5
1,263.7
480.1
67.4
319.5
188.9
215.5
315.9
4,088.4
1,057.2
735.8
321.4
3,031.2
783.2
1,379.2
106.4
1,272.8
481.0
64.8
323.0
184.7
222.9
325.9
4,108.6
1,060.3
730.2
330.1
3,048.3
785.6
1,403.6
115.2
1,288.3
481.1
56.2
321.8
195.3
227.0
326.6
4,155.4
1,051.5
718.3
333.2
3,104.0
802.9
1,418.6
116.7
1,301.9
484.9
68.7
328.8
190.9
227.1
331.0
4,120.4
1,046.9
719.2
327.6
3,073.5
797.6
1,409.6
116.0
1,293.5
480.8
59.0
326.6
195.6
221.6
323.3
4,142.2
1,050.2
718.5
331.7
3,091.9
800.0
1,412.9
116.3
1,296.6
481.2
71.2
326.6
189.7
222.7
327.6
4,149.5
1,049.4
718.0
331.4
3,100.2
801.2
1,418.0
116.7
1,301.3
484.6
67.9
328.4
184.9
216.9
329.7
4,165.1
1,053.0
718.3
334.7
3,112.1
803.9
1,419.8
117.1
1,302.7
488.1
68.9
331.4
197.5
246.0
337.4
4,651.4
4,701.7
4,704.5
4,720.8
4,763.0
4,798.5
4,845.1
4,801.5
4,822.9
4,821.9
4,886.7
3,007.4
657.4
2,350.0
425.2
1,924.8
801.8r
289.2 r
512.6 r
115.3
227.2
3,064.4
639.1
2,425.3
425.6
1,999.7
821.7
300.1
521.6
118.7
211.1
3,071.5
644.8
2,426.6
426.2
2,000.5
836.0
309.0
527.1
145.6
214.1
3,081.9
639.1
2,442.8
425.8
2,017.1
846.1
312.7
533.5
145.2
211.0
3,076.2
625.8
2,450.5
426.2
2,024.3
853.3
312.9
540.5
150.5
218.0
3,084.8
624.0
2,460.8
433.5
2,027.3
875.9
315.3
560.6
152.2
218.0
3,104.1
620.8
2,483.2
447.9
2,035.3
873.3
327.2
546.0
166.2
224.0
3,122.0
613.6
2,508.3
458.9
2,049.5
879.8
325.1
554.7
182.0
228.3
3,115.1
608.2
2,507.0
453.2
2,053.7
868.6
329.3
539.3
169.5
221.8
3,109.0
606.2
2,502.9
457.0
2,045.9
872.2
327.8
544.5
179.3
225.9
3,102.6
601.7
2,500.8
459.2
2,041.7
872.6
320.3
552.3
186.1
231.3
3,138.4
636.0
2,502.4
461.1
2,041.3
894.3
330.4
563.9
182.1
232.6
4,151.6 r
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
4,020.6
1,015.1
724.5
290.7
3,005.5
766.6
1,346.8
103.7
1,243.2
491.0
79.0
322.0
199.9
227.5
312.1
4,571.1 r
16 Total assets 6
3,976.9
996.6
712.6
284.0
2,980.2
755.3
1,340.6
104.3
1,236.4
495.8
73.4
315.0
200.8
223.9
308.2
4,215.9
4,267.2
4,284.2
4,298.0
4,330.9
4,367.5
4,412.1
4,375.1
4,386.5
4,392.5
4,447.4
419.5'
435.4
434.5
420.3
422.8
432.2
431.0
433.0
426.4
436.4
429.3
439.3
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
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 assets5
45
46
47
48
49
50
51
52
53
54
55 Total liabiUties
56 Residual (assets less liabilities)
7
MEMO
57 Revaluation gains on off-balance-sheet
items8
58 Revaluation losses on off-balancesheet items8
59 Mortgage-backed securities9
Footnotes appear on p. A21.
4,017.6
1,012.7
723.6
289.2
3,004.8
768.6
1,347.6
103.3
1,244.4
488.3
78.2
322.1
197.2
222.2
319.0
4,014.2
1,027.2
720.8
306.4
2,987.0
770.3
1,350.2
97.7
1,252.4
478.7
68.0
319.9
190.1
215.4
319.3
4,041.5
1,040.8
725.2
315.6
3,000.7
770.1
1,364.9
98.7
1,266.2
481.2
63.7
320.8
181.2
205.4
318.1
4,079.5
1,046.7
726.6
320.2
3,032.8
779.6
1,382.9
107.2
1,275.7
483.9
61.3
325.0
181.1
220.4
327.6
4,109.2
1,054.1
724.6
329.5
3,055.1
785.6
1,407.2
116.1
1,291.1
481.8
57.3
323.2
191.8
226.7
324.1
4,166.4
1,054.8
720.0
334.8
3,111.6
801.7
1,423.2
117.7
1,305.5
485.2
70.9
330.6
197.6
233.6
329.3
4,136.8
1,048.5
720.3
328.2
3,088.3
799.7
1,414.7
117.0
1,297.7
481.4
62.7
329.9
203.3
223.1
326.1
4,153.0
1,052.1
719.9
332.2
3,100.9
798.9
1,420.8
117.4
1,303.4
481.2
73.0
327.0
195.7
222.4
327.8
4,160.0
1,051.9
719.2
332.7
3,108.2
800.5
1,422.1
117.8
1,304.3
484.5
70.2
330.9
193.6
230.9
327.0
4,171.0
1,056.2
719.1
337.1
3,114.8
801.5
1,422.7
118.1
1,304.6
488.5
71.0
331.1
198.8
241.6
329.7
4,655.4
4,697.4
4,681.1
4,687.6
4,749.5
4,792.8
4,867.5
4,830.0
4,839.6
4,852.3
4,881.9
3,033.6
667.8
2,365.8
430.7
1,935.1
807.3r
292.8r
514.5r
113.7
226.6
3,052.7
630.3
2,422.4
424.5
1,997.9
829.8
301.0
528.8
126.7
211.3
3,068.8
640.1
2,428.6
422.6
2,006.0
839.6
308.8
530.8
141.2
213.9
3,068.0
628.4
2,439.6
420.9
2,018.7
836.8
308.1
528.7
139.9
211.1
3,064.9
609.5
2,455.4
424.3
2,031.1
829.9
305.8
524.1
147.5
217.8
3,083.9
617.7
2,466.2
433.1
2,033.2
870.8
311.6
559.2
149.8
217.3
3,106.5
612.6
2,493.9
450.0
2,044.0
876.0
324.9
551.1
166.1
223.1
3,148.9
623.4
2,525.5
464.9
2,060.6
886.8
329.5
557.3
181.0
227.6
3,140.7
613.8
2,526.9
458.2
2,068.7
880.1
331.3
548.8
166.9
221.2
3,137.3
607.5
2,529.8
463.0
2,066.8
876.8
330.6
546.3
178.4
225.4
3,138.8
618.8
2,520.0
465.0
2,054.9
882.0
325.6
556.3
178.2
230.6
3,143.7
632.4
2,511.3
467.5
2,043.8
894.3
333.0
561.3
187.2
231.6
4,181.2 r
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices . . . .
Other liabilities
3,984.8
1,003.8
720.0
283.8
2,981.0
762.5
1,340.3
103.9
1,236.4
493.4
73.5
311.4
196.6
222.0
310.5
4,595.0 r
44 Total assets 6
3,928.8 r
1,009.4
710.0
299.4
2,919.4r
729.1
1,304.9r
103.4
1,201.5
496.4
87.8
301.2 r
200.2r
222.5
301.2r
4,220.6
4,263.4
4,255.8
4,260.1
4,321.7
4,371.8
4,444.3
4,408.9
4,417.9
4,429.6
4,456.8
413.8 r
434.8
434.0
425.2
427.6
427.8
421.0
423.2
421.1
421.7
422.7
425.0
65.6
54.2
54.6
54.4
58.4
60.1
60.9
59.8
54.8
58.3
56.9
61.8
68.1
346.0
56.1
335.4
57.1
334.0
56.3
339.3
62.5
343.3
59.8
346.0
60.0
346.4
59.8
347.3
55.6
345.9
58.7
348.1
57.5
347.3
61.7
346.7
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
All
Assets and Liabilities 1 —Continued
C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
1999r
1998
Nov.
May
June
July
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 17
Nov. 24
Seasonally adjusted
Assets
1 Bank credit
7
Securities in bank credit
3
U.S. government securities
4
Trading account
Investment account
6
Other securities
Trading account
7
8
Investment account
9
State and local government .
in
Other
11
Loans and leases in bank credit2 . . .
17
Commercial and industrial
H
Bankers acceptances
14
Other
15
Real estate
Revolving home equity
16
17
Other
Consumer
18
19
Security3
20
Federal funds sold to and
repurchase agreements
with broker-dealers
Other
71
22
State and local government
Agricultural
23
24
Federal funds sold to and
repurchase agreements
with others
All other loans
75
76
Lease-financing receivables
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
79
Other
30 Cash assets4
31 Other assets5
32 Total assets 6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2,451.6
582.3
386.5
22.3
364.2
195.9
99.7
96.1
24.5
71.7
1,869.3
540.2
1.3
538.9
721.3
74.0
647.3
302.3
78.4
2,438.0
548.5
378.0
22.3
355.7
170.5
71.9
98.6
24.8
73.8
1,889.5
553.5
1.0
552.5
723.8
75.1
648.7
297.8
68.3
2,465.7
559.4
384.2
25.1
359.1
175.1
71.1
104.0
25.3
78.7
1,906.4
561.9
1.0
561.0
723.2
74.2
649.1
292.8
73.9
2,457.5
577.0
384.5
22.7
361.7
192.6
73.6
119.0
25.4
93.5
1,880.4
564.4
1.0
563.4
717.9
68.2
649.7
283.4
64.3
2,475.2
590.6
392.1
23.3
368.8
198.5
77.5
121.0
25.7
95.3
1,884.6
567.9
1.1
566.8
722.9
68.8
654.2
281.0
62.2
2,490.5
593.6
390.3
20.9
369.4
203.3
78.1
125.2
25.7
99.5
1,896.9
571.0
1.1
569.9
734.4
76.7
657.7
279.1
59.5
2,489.3
594.5
383.9
20.0
363.9
210.6
81.7
128.9
26.1
102.7
1,894.7
567.6
1.1
566.4
747.0
85.0
662.1
277.6
51.0
2,530.4
590.6
377.4
18.0
359.4
213.2
82.4
130.8
27.3
103.5
1,939.9
581.9
1.1
580.8
755.5
86.2
669.3
281.7
62.9
2,500.3
584.6
376.1
19.2
356.9
208.5
76.9
131.5
27.2
104.4
1,915.7
577.3
1.1
576.2
750.3
85.7
664.6
279.1
53.2
2,520.3
588.1
376.0
19.2
356.9
212.0
80.1
131.9
27.3
104.7
1,932.3
579.5
1.1
578.4
752.2
86.0
666.1
279.8
65.4
2,522.7
587.5
376.3
16.4
359.9
211.2
80.2
130.9
27.3
103.6
1,935.2
579.8
1.1
578.7
753.9
86.2
667.8
281.4
62.2
2,540.1
593.7
379.0
18.3
360.7
214.7
84.5
130.2
27.3
102.8
1,946.4
582.6
1.2
581.5
756.4
86.5
669.9
283.6
63.1
62.1
16.3
11.6
8.9
51.5
16.9
11.4
8.6
55.7
18.2
11.4
8.6
46.9
17.5
11.7
8.5
45.3
16.9
11.9
8.8
42.2
17.3
11.9
8.8
34.2
16.8
12.0
8.9
45.1
17.8
11.8
8.8
37.3
16.0
11.8
8.9
47.4
18.0
11.8
8.8
44.7
17.6
11.8
8.8
44.1
19.1
11.8
8.8
12.9
89.9
103.6
124.1
10.7
96.0
119.3
143.6
15.6
99.0
120.0
145.0
4.3
104.1
121.7
139.9
7.7
99.1
123.1
134.7
11.0
96.8
124.4
132.8
9.8
94.2
126.7
146.0
12.0
96.3
128.9
137.5
11.0
95.9
128.2
142.4
11.2
95.0
128.5
136.9
12.3
96.0
128.8
134.1
11.9
99.0
129.1
142.4
78.0
46.0
148.2
236.8
88.4
55.2
153.2
234.1
87.4
57.6
156.3
237.4
89.8
50.1
150.7
238.0
86.2
48.5
143.3
235.7
83.6
49.2
150.0
245.8
90.8
55.2
154.2
242.4
72.6
64.9
153.2
247.8
84.7
57.8
148.3
240.1
72.9
64.0
150.8
243.9
67.6
66.5
145.4
248.2
76.3
66.1
168.4
252.5
2,922.3
2,930.3
2,965.9
2,947.9
2,950.6
2,980.4
2,993.2
3,030.2
2,992.2
3,0133
3,011.9
3,064.7
1,696.1
374.6
1,321.5
234.3
1,087.2
627.0
206.8
420.1
111.7
198.0
1,697.0
355.8
1.341.2
226.2
1.115.0
630.2
213.7
416.5
113.6
180.0
1,697.2
357.6
1,339.6
228.2
1,111.5
639.9
218.7
421.2
141.5
182.0
1,695.7
352.4
1,343.3
229.7
1,113.6
639.2
215.5
423.7
140.9
179.7
1,682.4
337.7
1,344.7
227.3
1,117.4
644.7
217.1
427.6
147.0
184.9
1,688.2
338.5
1,349.7
233.0
1,116.8
661.8
219.1
442.7
148.8
183.9
1,689.6
335.4
1,354.2
242.9
1,111.2
658.9
234.6
424.3
161.9
189.6
1,696.5
330.7
1,365.8
249.8
1,116.0
666.5
234.4
432.1
177.5
194.1
1,692.5
326.4
1,366.1
245.5
1,120.7
656.9
238.5
418.4
165.3
188.2
1,690.1
326.2
1,363.9
248.3
1,115.6
657.9
235.0
422.8
174.8
192.0
1,683.0
322.6
1,360.4
250.4
1,110.0
660.0
230.3
429.7
181.4
197.2
1,706.7
342.9
1,363.8
251.3
1,112.5
681.2
239.8
441.4
177.5
197.9
2,632.8
2,620.8
2,660.6
2,655.5
2,659.0
2,682.7
2,699.9
2,734.7
2,703.0
2,714.8
2,721.5
2,763.2 '
289.5
309.4
305.3
292.4
291.6
297.7
293.3
295.6
289.2
298.4
290.4
301.5
A18
1.26
Domestic Financial Statistics • February 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
C. Large domestically chartered commercial banks—Continued
Monthly averages
Account
1998
Nov.
1999
May
June
July
Wednesday figures
r
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 17
Nov. 24
2,532.7
592.0
379.7
20.6
359.0
238.2
120.9
23.5
57.6
39.8
212.3
80.1
132.2
27.4
104.9
1,940.7
579.8
1.1
578.7
758.4
86.7
410.0
261.6
279.5
67.2
2,537.3
593.0
380.5
18.7
361.8
237.9
123.9
23.0
60.8
40.1
212.5
80.2
132.3
27.4
104.9
1,944.3
580.8
1.1
579.7
757.6
87.0
408.3
262.3
281.0
64.5
2,548.5
598.4
381.5
19.7
361.8
237.8
123.9
23.5
60.3
40.2
216.9
84.5
132.4
27.6
104.9
1,950.1
581.9
1.2
580.7
758.9
87.2
408.8
262.8
283.2
65.2
Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities ..
51
Other
52
One year or less
53
One to five years
54
More than five years . . .
55
Other securities
56
Trading account
57
Investment account
58
State and local government . .
59
Other
60
Loans and leases in bank credit2 ..
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Security3
70
Federal funds sold to and
repurchase agreements
with broker-dealers . . . .
71
Other
72
State and local government . . . .
73
Agricultural
74
Federal funds sold to and
repurchase agreements
with others
75
All other loans
76
Lease-financing receivables . . . .
77 Interbank loans
78
Federal funds sold to and
repurchase agreements
with commercial banks
79
Other
80 Cash assets4
81 Other assets5
83
84
85
86
87
88
89
90
91
92
93 Total liabilities
94 Residual (assets less liabilities)7
....
2,455.6
555.1
381.4
23.5
357.9
235.2
122.8
25.3
57.7
39.9
173.7
71.1
102.6
25.1
77.5
1,900.5
562.0
1.0
561.0
721.2
73.9
392.7
254.6
290.8
73.1
2,443.4
569.2
378.6
20.9
357.7
233.9
123.8
25.2
58.8
39.7
190.6
73.6
117.0
25.0
92.0
1,874.2
563.0
1.0
562.0
717.1
68.3
394.0
254.8
281.6
62.7
2,455.7
580.5
383.1
22.2
360.9
237.6
123.3
24.9
59.0
39.5
197.4
77.5
120.0
25.4
94.6
1,875.2
562.1
1.1
561.1
723.5
69.1
398.5
255.9
281.6
58.4
2,478.3
585.5
382.9
20.7
362.2
240.7
121.5
24.4
58.2
38.8
202.6
78.1
124.5
25.6
98.9
1,892.9
568.6
1.1
567.4
734.7
77.2
400.0
257.5
280.9
56.0
2,491.1
591.5
381.3
20.8
360.5
238.5
122.0
25.2
59.0
37.7
210.1
81.7
128.4
26.2
102.2
1,899.6
569.0
1.1
567.9
749.2
85.6
404.3
259.2
277.6
52.1
2,544.4
596.1
381.4
19.9
361.5
238.3
123.1
23.6
59.7
39.8
214.7
82.4
132.3
27.4
104.9
1,948.3
582.2
1.1
581.1
759.7
86.9
410.5
262.2
281.4
65.1
2,519.0
589.4
380.4
21.3
359.1
238.5
120.7
24.3
58.5
37.9
209.0
76.9
132.0
27.2
104.8
1,929.7
580.9
1.1
579.7
754.2
86.4
407.0
260.9
279.1
56.9
65.3
16.2
11.7
9.0
51.2
17.2
11.3
8.6
54.1
19.0
11.3
8.7
45.3
17.4
11.6
8.8
41.8
16.6
11.9
9.0
38.8
17.1
12.0
9.0
35.2
16.8
12.0
9.0
47.4
17.7
11.9
8.9
40.7
16.2
11.9
9.0
50.0
17.2
12.0
8.9
47.3
17.2
12.0
8.9
45.7
19.6
12.0
8.9
12.9
92.8
102.6
125.5
10.7
92.6
119.2
143.7
15.6
97.6
120.2
145.4
4.3
103.9
121.3
137.8
7.7
98.3
122.5
129.5
11.0
97.4
123.3
130.4
9.8
95.2
125.8
141.4
12.0
99.4
127.6
138.3
11.0
99.6
127.0
144.1
11.2
96.4
127.3
135.8
12.3
99.8
127.4
136.4
11.9
100.6
127.6
140.0
80.8
44.7
152.2
233.6
87.5
56.3
151.7
236.4
86.5
58.8
152.1
242.7
86.2
51.5
144.8
240.2
81.2
48.3
136.4
237.2
81.6
48.9
148.8
247.0
87.0
54.4
154.6
239.9
75.5
62.9
157.4
244.4
88.3
55.8
149.4
240.2
74.0
61.7
149.8
241.5
71.5
64.9
155.6
243.9
76.2
63.8
163.9
245.5
2,928.8
2,957.1
2,927.9
2,920.3
2,965.7
2,988.5
3,045.7
3,014.0
3,021.0
3,034.6
3,0593
1,710.2
381.3
1,328.8
239.8
1,089.0
630.4
208.8
421.6
110.1
198.0
1,682.6
349.4
1,333.3
225.1
1,108.2
637.9
214.7
423.2
121.7
180.0
1,691.2
354.0
1,337.2
224.6
1,112.6
642.3
218.3
424.0
137.1
182.0
1,684.4
345.6
1,338.8
224.8
1,113.9
630.1
211.8
418.3
135.7
179.7
1,672.4
328.3
1,344.1
225.4
1,118.6
621.2
210.7
410.5
144.0
184.9
1,684.2
335.1
1,349.1
232.5
1,116.6
654.1
215.0
439.1
146.4
183.9
1,688.2
330.2
1,357.9
245.0
1,113.0
658.8
230.4
428.4
161.8
189.6
1,710.8
336.8
1,374.0
255.9
1,118.2
671.2
237.0
434.2
176.5
194.1
1,705.3
329.5
1,375.8
250.5
1,125.3
665.9
238.7
427.2
162.7
188.2
1,701.2
324.7
1,376.5
254.3
1,122.2
662.0
236.9
425.1
173.9
192.0
1,704.1
334.6
1,369.5
256.3
1,113.3
667.0
233.8
433.3
173.5
197.2
1,706.7
340.4
1,366.4
257.7
1,108.6
677.7
240.1
437.6
182.6
197.9
2,648.7
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices . . .
Other liabilities
2,435.7
550.2
380.8
20.8
360.1
239.5
120.5
24.3
55.9
40.4
169.4
71.9
97.5
24.9
72.6
1,885.5
558.0
1.0
557.0
721.1
74.8
392.0
254.3
295.6
68.4
2,937.4
82 Total assets 6
2,464.5
587.6
390.8
24.6
366.2
262.5
103.7
28.0
39.3
36.4
196.8
99.7
97.1
24.6
72.5
1,876.9
539.8
1.3
538.5
724.7
74.6
406.4
243.7
302.0
81.5
2,622J
2,652.5
2,629.8
2,622.6
2,668.5
2,698.4
2,752.6
2,722.1
2,729.2
2,741.7
2,764.9
288.7
306.6
304.6
298.1
297.7
297.2
290.1
293.1
291.9
291.8
292.9
294.4
'
MEMO
95 Revaluation gains on off-balancesheet items8
96 Revaluation losses on off-balancesheet items8
97 Mortgage-backed securities9
98
Pass-through securities
99
CMOs, REMICs, and other
mortgage-backed securities . .
100 Net unrealized gains (losses) on
available-for-sale securities10 . . .
101 Offshore credit to U.S. residents" . . .
Footnotes appear on p. A21.
65.6
54.2
54.6
54.4
58.4
60.1
60.9
59.8
54.8
58.3
56.9
61.8
68.1
291.0
200.2
56.1
266.8
177.9
57.1
264.2
176.5
56.3
268.9
182.6
62.5
273.3
186.2
59.8
275.5
184.8
60.0
273.6
183.8
59.8
275.8
186.3
55.6
273.7
183.4
58.7
276.0
185.9
57.5
275.7
186.4
61.7
275.7
186.7
90.8
88.9
87.6
86.4
87.1
90.7
89.8
89.4
90.3
90.1
89.3
89.1
3.1
39.1
.6
37.7
.0
37.0
-3.3
36.3
-4.2
32.2
-4.9
27.8
-5.6
26.7
-5.8
24.8
-5.7
24.9
-5.7
24.3
-5.8
24.7
-5.8
25.3
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
A19
Assets and Liabilities 1 —Continued
D. Small domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
1999r
1998
Account
Nov.
May
June
July
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 17
Nov. 24
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
1,467.1
424.1
321.6
102.5
1,043.0
190.6
579.8
28.6
551.2
193.7
6.3
72.5
66.7
68.2
66.2
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
28 Residual (assets less liabilities)7
1,583.7
461.9
343.9
118.0
1,121.8
209.2
639.3
29.8
609.5
199.0
5.2
69.0
54.2
72.2
80.2
1,597.9
463.6
345.5
118.1
1,134.3
212.2
644.9
29.7
615.1
201.9
5.3
70.1
51.9
73.0
80.2
1,619.4
465.8
346.2
119.5
1,153.6
218.0
656.5
30.3
626.3
203.6
5.3
70.2
49.3
72.8
84.2
1,625.0
460.9
340.9
120.0
1,164.1
221.0
663.1
30.5
632.5
203.2
5.8
71.0
53.4
73.9
83.2
1,620.1
462.3
343.1
119.2
1,157.8
220.3
659.3
30.4
628.9
201.6
5.8
70.8
53.2
73.3
83.3
1,621.8
462.1
342.5
119.7
1,159.7
220.5
660.7
30.3
630.4
201.4
5.8
71.3
52.8
71.9
83.6
1,626.8
461.9
341.6
120.2
1,165.0
221.4
664.1
30.5
633.6
203.2
5.7
70.6
50.8
71.5
81.4
1,625.0
459.3
339.3
120.0
1,165.7
221.2
663.4
30.6
632.8
204.5
5.8
70.7
55.1
77.7
84.9
1,721.1
1,735.8
1,756.6
1,770.2
1,782.7
1,805.2
1,814.9
1,8093
1,809.7
1,809.9
1,821.9
1,311.3
282.8
1,028.5
190.9
837.6
174.8
82.3
92.4
3.6
29.2
1,367.4
283.3
1,084.1
199.4
884.7
191.5
86.5
105.1
5.0
31.1
1,374.2
287.2
1,087.0
198.0
889.0
196.2
90.3
105.9
4.1
32.1
1,386.2
286.7
1,099.5
196.0
903.5
207.0
97.2
109.8
4.3
31.3
1,393.9
288.1
1,105.8
198.9
906.9
208.6
95.8
112.8
3.5
33.1
1,396.6
285.5
1,111.1
200.6
910.5
214.0
96.1
117.9
3.4
34.2
1,414.5
285.4
1,129.1
205.0
924.1
214.3
92.6
121.7
4.3
34.4
1,425.4
282.9
1,142.5
209.0
933.5
213.3
90.7
122.6
4.5
34.2
1,422.6
281.7
1,140.8
207.8
933.1
211.7
90.8
120.9
4.2
33.7
1,418.9
280.0
1,138.9
208.7
930.2
214.4
92.7
121.6
4.5
33.9
1,419.6
279.2
1,140.4
208.8
931.6
212.6
90.1
122.6
4.7
34.1
1,431.7
293.2
1,138.6
209.8
928.8
213.1
90.6
122.5
4.6
34.7
1,595.1
1,606.6
1,628.7
1,639.0
1,648.2
1,667.6
1,677.5
1,672.1
1,671.7
1,671.0
1,684.2
130.0
27 Total liabilities
1,569.5
459.7
343.6
116.0
1,109.8
207.4
631.0
29.7
601.3
197.7
5.3
68.4
56.5
72.5
77.8
1,518.8
....
1,554.9
455.7
340.2
115.5
1,099.1
204.7
623.6
29.5
594.1
198.3
5.1
67.4
54.9
71.2
74.7
1,648.8
16 Total assets 6
1,538.9
448.2
334.6
113.5
1,090.7
201.9
616.8
29.2
587.6
198.0
5.1
68.9
57.2
70.8
74.1
126.0
129.2
127.9
131.2
134.5
137.7
137.5
137.2
138.0
138.9
137.8
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
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 assets5
1,464.3
421.8
319.3
102.5
1,042.5
189.3
580.2
28.8
551.4
194.5
6.3
72.2
74.7
70.3
67.6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
55 Total liabilities
56 Residual (assets less liabilities)7
....
1,562.0
457.6
342.1
115.5
1,104.4
206.6
626.4
29.4
597.1
197.5
5.1
68.7
51.8
70.1
76.3
1,570.8
458.0
342.1
115.8
1,112.8
207.3
633.1
29.5
603.6
197.1
5.3
70.0
52.4
70.6
79.0
1,585.8
460.3
342.1
118.2
1,125.5
208.0
641.4
29.6
611.8
199.6
5.2
71.3
51.7
69.0
80.9
1,601.2
461.3
343.7
117.6
1,139.9
211.1
648.2
30.0
618.2
203.0
5.3
72.3
50.7
71.7
80.5
1,618.1
462.7
343.3
119.4
1,155.5
216.5
658.0
30.5
627.5
204.2
5.3
71.4
50.4
72.0
84.2
1,622.0
458.7
338.6
120.0
1,163.3
219.5
663.5
30.8
632.7
203.7
5.8
70.8
59.3
76.2
84.9
1,617.8
459.1
339.9
119.2
1,158.6
218.9
660.4
30.6
629.8
202.3
5.8
71.3
59.2
73.7
85.9
1,620.3
460.1
340.2
119.9
1,160.2
219.1
662.4
30.7
631.7
201.7
5.8
71.2
60.0
72.5
86.3
1,622.7
458.9
338.7
120.2
1,163.8
219.6
664.5
30.8
633.7
203.6
5.7
70.5
57.2
75.2
83.1
1,622.5
457.8
337.6
120.2
1,164.7
219.6
663.8
30.9
632.9
205.3
5.8
70.2
58.8
77.7
84.2
1,657.6
44 Total assets 6
1,549.0
453.5
339.2
114.3
1,095.5
204.5
619.2
29.1
590.1
197.7
5.1
68.9
52.9
70.3
74.1
1,726.5
1,7403
1,753.2
1,7673
1,783.8
1,8043
1,821.8
1,816.0
1^185
1,817.7
1,822.6
1,323.5
286.4
1,037.0
190.9
846.1
176.9
84.0
92.8
3.6
28.6
1,370.1
280.9
1,089.1
199.4
889.7
191.9
86.3
105.6
5.0
31.3
1,377.6
286.2
1,091.4
198.0
893.4
197.3
90.5
106.8
4.1
31.9
1,383.6
282.8
1,100.8
196.0
904.8
206.8
96.3
110.4
4.3
31.3
1,392.5
281.2
1,111.3
198.9
912.4
208.6
95.1
113.6
3.5
32.8
1,399.6
282.5
1,117.1
200.6
916.5
216.7
96.6
120.1
3.4
33.5
1,418.4
282.4
1,136.0
205.0
931.0
217.2
94.5
122.7
4.3
33.5
1,438.0
286.6
1,151.5
209.0
942.4
215.6
92.5
123.1
4.5
33.5
1,435.4
284.2
1,151.1
207.8
943.4
214.2
92.6
121.6
4.2
33.1
1,436.0
282.8
1,153.2
208.7
944.6
214.8
93.6
121.2
4.5
33.3
1,434.7
284.3
1,150.5
208.8
941.7
214.9
91.9
123.1
4.7
33.5
1,437.0
292.0
1,144.9
209.8
935.1
216.6
92.9
123.7
4.6
33.7
1,532.5
1,5983
1,610.9
1,626.0
1,637.5
1,653.2
1,673.4
1,691.7
1,686.8
1,688.7
1,687.8
1,692.0
125.1
128.2
129.4
127.2
129.9
130.6
130.9
130.1
129.2
129.8
129.9
130.6
55.0
68.6
69.8
70.3
70.0
70.5
72.8
71.5
72.2
72.1
71.6
71.0
MEMO
57 Mortgage-backed securities9
Footnotes appear on p. A21.
A20
1.26
Domestic Financial Statistics • February 2000
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities 1 —Continued
E. Foreign-related institutions
Billions of dollars
Monthly averages
Account
1999r
1998
Nov.
Wednesday figures
May
June
July
Aug.
1999
Sept.
Oct.
Nov.
Nov. 3
Nov. 10
Nov. 10
Nov. 24
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
14
15
16
17
18
19
20
21
523.7
189.9
84.0
105.9
333.8
195.4
17.6
54.9
65.8
25.7
38.0
29.0
518.5
189.1
81.6
107.5
329.4
197.2
17.6
51.3
63.4
22.9
40.8
29.3
517.7
186.5
79.7
106.9
331.1
198.9
17.8
51.6
62.8
22.9
44.1
31.8
541.2
193.8
78.3
115.5
347.4
200.9
17.4
62.2
66.9
22.8
50.4
34.8
518.8
183.9
77.3
106.7
334.9
198.2
17.7
55.7
63.2
24.5
47.4
32.8
526.4
184.5
75.5
109.0
341.8
201.9
17.5
58.1
64.3
20.1
49.2
33.0
532.5
187.2
74.8
112.4
345.3
202.6
17.5
59.5
65.7
24.2
50.3
34.5
555.8
205.9
83.6
122.3
349.9
200.7
17.3
63.2
68.6
22.2
51.9
35.7
638.0
623.7
614.9
616.2
611.2
616.2
648.9
623.2
6283
6413
6653
310.4
10.5
299.9
172.7
21.4
151.3
85.2
59.9
305.7
10.9
294.8
180.9
26.6
154.4
69.4
61.4
310.5
10.9
299.6
172.3
24.5
147.8
67.3
63.3
309.2
11.0
298.2
172.1
23.6
148.6
72.0
61.7
311.1
10.9
300.2
168.9
25.3
143.7
66.1
64.5
331.0
11.5
319.6
169.7
22.8
146.9
53.4
62.8
358.1
11.3
346.9
179.2
26.9
152.3
44.0
65.6
341.3
10.8
330.5
175.9
27.7
148.2
50.3
62.6
349.5
10.8
338.6
169.6
20.3
149.3
45.4
63.0
357.5
12.0
345.4
175.1
24.4
150.7
45.7
62.6
364.8
11.2
353.6
184.6
30.6
154.0
39.3
68.6
6283
6175
613.5
615.0
610.6
616.9
646.9
630.1
627.5
640.9
6573
4.1
23 Residual (assets less liabilities)7
520.6
189.7
85.9
103.8
330.9
192.6
18.5
52.6
67.2
27.4
35.0
32.1
705.4
22 Total liabilities
532.5
196.1
88.4
107.7
336.4
196.7
19.2
52.0
68.5
24.5
33.5
33.4
315.3
12.8
302.5
214.8
32.3
182.6
99.3
76.0
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
539.9
196.0
87.3
108.8
343.9
201.9
19.8
53.3
68.8
26.6
35.9
35.9
709.5
13 Total assets 6
610.9
215.6
82.0
133.6
395.4
224.2
22.5
65.3
83.3
27.1
34.8
36.9
9.8
6.2
1.4
1.2
.6
-.7
2.0
-6.9
.9
.4
8.0
Not seasonally adjusted
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
41
42
43
44
45
46
47
48
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
....
49 Total liabilities
50 Residual (assets less liabilities)7
534.7
194.4
88.0
20.0
68.1
106.3
64.5
41.9
340.3
199.3
19.6
53.0
68.5
26.6
35.6
35.2
529.4
195.2
88.8
21.6
67.2
106.4
63.0
43.4
334.2
195.0
19.0
52.2
68.0
24.5
34.3
32.4
517.4
188.1
85.4
19.9
65.5
102.7
60.6
42.1
329.4
191.8
18.3
52.2
67.0
27.4
34.9
31.4
520.0
188.7
83.0
17.3
65.7
105.7
64.8
40.9
331.3
193.8
17.5
55.0
65.0
25.7
37.7
29.6
517.7
188.5
80.7
15.6
65.1
107.8
69.6
38.2
329.2
196.8
17.6
51.4
63.3
22.9
40.6
29.7
521.6
189.2
79.6
14.6
65.0
109.6
71.4
38.2
332.4
200.0
18.0
51.4
63.0
22.9
44.7
31.7
544.2
196.8
78.7
9.0
69.7
118.1
78.7
39.4
347.4
202.2
17.6
61.4
66.3
22.8
51.1
35.0
527.1
189.4
78.2
11.3
66.9
111.2
72.7
38.5
337.7
200.7
17.9
55.6
63.5
24.5
48.3
32.8
530.1
188.4
76.7
9.5
67.2
111.7
72.9
38.8
341.7
203.0
17.7
57.1
63.9
20.1
49.6
33.0
535.3
190.3
74.9
6.9
68.0
115.4
76.6
38.8
345.0
203.9
17.6
58.3
65.1
24.2
51.2
34.3
556.4
207.4
83.0
11.0
72.0
124.4
84.1
40.4
349.0
201.8
17.4
62.4
67.4
22.2
52.0
36.0
713.4
40 Total assets 6
614.1
218.8
82.4
14.9
67.5
136.4
84.4
52.0
395.4
225.4
22.8
64.6
82.5
27.1
35.3
37.0
631.8
620.4
610.9
612.7
610.5
620.6
652.9
632.5
632.5
644.7
6663
314.9
12.7
302.1
214.8
32.3
182.6
102.7
77.0
312.8
10.3
302.5
172.7
21.4
151.3
83.4
59.4
306.4
10.7
295.7
180.9
26.6
154.4
68.1
61.0
308.1
10.8
297.2
172.3
24.5
147.8
64.8
62.4
306.6
10.9
295.7
172.1
23.6
148.6
69.8
61.8
310.6
11.4
299.2
168.9
25.3
143.7
64.5
64.1
331.1
11.5
319.6
169.7
22.8
146.9
55.2
62.2
357.6
11.2
346.4
179.2
26.9
152.3
46.7
66.5
340.7
10.9
329.8
175.9
27.7
148.2
51.0
62.5
349.5
10.6
338.9
169.6
20.3
149.3
47.4
63.6
355.5
12.1
343.4
175.1
24.4
150.7
47.5
63.5
364.4
10.9
353.5
184.6
30.6
154.0
44.5
69.9
709.4
628.2
616.4
607.6
610.4
608.2
618.1
650.0
630.0
630.0
641.6
663.4
4.0
3.5
4.0
3.3
2.2
2.3
2.5
2.9
2.4
2.5
3.2
2.9
48.6
35.3
34.9
37.4
38.1
38.3
35.7
38.4
35.0
35.2
35.1
42.8
44.9
34.8
34.1
36.2
36.3
37.3
35.2
37.8
35.1
35.1
34.9
41.2
MEMO
51 Revaluation gains on off-balance-sheet
items8
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
DomesticNonfinancialStatistics • February 2000
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December
1999
Item
1994
Financial companies
2
3
1996
1997
1998
May
June
July
Aug.
Sept.
Oct.
595,382
674,904
775,371
966,699
1,163,303
1,230,009
1,221,020
1,242,107
1,257,658
1,274,726
1,321,163
223,038
207,701
275,815
210,829
361,147
229,662
513,307
252,536
614,142
322,030
710,857
268,129
705,603
272,014
712,718
277,570
710,320
290,228
718,380
293,381
751,245
296,998
164,643
1 All issuers
1995
188,260
184,563
200,857
227,132
251,023
243,404
251,819
257,110
262,965
272,920
1
Dealer-placed paper, total'
Directly placed paper, total3
4 Nonfinancial companies4
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
B. Bankers Dollar Acceptances 1
Millions of dollars, not seasonally adjusted, year ending September2
1996
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 B Y BANKS
1998
1999
25,774
14,363
10,094
709
7,770
736
6,862
523
4,884
461
4,261
9,361
1 Total amount of reporting banks' acceptances in existence
2 Amount of other banks' eligible acceptances held by reporting banks
3 Amount of own eligible acceptances held by reporting banks (included in item 1)
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1)
1997
25,832
Item
10,467
5,413
3,498
2. Data on bankers dollar acceptances are gathered from approximately 55 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 Loans 1
Percent per year
Date of change
1997—Jan.
Mar.
1998—Sept.
Oct.
Nov.
1999—July
Aug.
Nov.
1
26
30
16
18
1
25
17
Rate
8.25
8.50
8.25
8.00
7.75
8.00
8.25
8.50
Period
Average
rate
1997
1998
1999
8.44
8.35
8.00
1997--Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
8.25
8.25
8.30
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call
Period
1998—Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Ocl
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
Period
1999—Jan
Feb
Mar.
Apr
Mav
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
7.75
7.75
7.75
7.75
7.75
7.75
8.00
8.06
8.25
8.25
8.37
8.50
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
1999, week ending
1999
1996
Item
1997
1998
Aug.
Sept.
Oct.
Nov.
Oct. 29
Nov. 5
Nov. 12
Nov. 19
Nov. 26
MONEY MARKET INSTRUMENTS
1 Federal funds 1 ' 2,3
2 Discount window borrowing 2,4
5.30
5.02
5.46
5.00
5.35
4.92
5.07
4.56
5.22
4.75
5.20
4.75
5.42
4.86
5.18
4.75
5.27
4.75
5.20
4.75
5.44
4.75
5.52
5.00
Commercial
paper*5,6
Nonfinancial
3
1-month
4
2-month
3-month
5
n.a.
n.a.
n.a.
5.57
5.57
5.56
5.40
5.38
5.34
5.18
5.23
5.25
5.28
5.29
5.32
5.28
5.30
5.88
5.37
5.82
5.81
5.27
5.30
5.90
5.27
5.78
5.88
5.26
5.83
5.78
5.42
5.82
5.79
5.47
5.82
5.78
n.a.
n.a.
n.a.
5.59
5.59
5.60
5.42
5.40
5.37
5.20
5.24
5.28
5.29
5.31
5.32
5.29
5.32
5.93
5.38
5.85
5.85
5.28
5.31
5.97
5.29
5.85
5.92
5.28
5.83
5.82
5.43
5.84
5.83
5.48
5.84
5.82
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.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.31
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.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.31
5.31
5.54
5.57
5.39
5.30
5.30
5.64
5.37
5.75
6.02
5.89
5.94
5.83
6.06
5.95
6.04
5.93
5.88
5.76
5.91
5.82
5.91
5.80
5.35
5.39
5.47
5.54
5.62
5.73
5.49
5.47
5.44
5.25
5.41
5.83
5.34
5.50
5.89
5.36
6.13
6.04
5.50
6.00
5.97
5.36
6.14
6.07
5.36
6.07
6.03
5.37
5.96
5.94
5.51
5.97
5.94
5.56
5.96
5.93
5.38
5.61
5.45
5.36
5.48
6.09
5.97
6.12
6.04
5.94
5.94
5.95
5.01
5.08
5.22
5.06
5.18
5.32
4.78
4.83
4.80
4.72
4.87
4.91
4.68
4.88
4.96
4.86
4.98
5.12
5.07
5.20
5.24
4.96
5.10
5.20
4.98
5.10
5.15
5.05
5.16
5.19
5.10
5.22
5.25
5.12
5.27
5.33
5.02
5.09
5.23
5.07
5.18
5.36
4.81
4.85
4.85
4.76
4.88
4.95
4.73
4.91
5.00
4.88
4.98
5.12
5.07
5.17
5.17
5.00
5.12
n.a.
5.00
5.09
n.a.
5.03
5.12
5.17
5.12
5.22
n.a.
5.11
5.24
n.a.
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
5.05
5.13
5.14
5.15
5.28
5.26
5.72
5.58
5.20
5.68
5.77
5.84
6.15
5.94
6.43
6.07
5.25
5.66
5.75
5.80
6.12
5.92
6.50
6.07
5.43
5.86
5.94
6.03
6.33
6.11
6.66
6.26
5.55
5.86
5.92
5.97
6.17
6.03
6.48
6.15
5.51
5.92
6.01
6.09
6.36
6.16
6.68
6.30
5.45
5.78
5.87
5.95
6.16
6.00
6.48
6.12
5.50
5.78
5.83
5.88
6.10
5.96
6.42
6.06
5.56
5.87
5.91
5.95
6.15
6.02
6.44
6.11
5.65
5.96
6.00
6.03
6.23
6.10
6.53
6.22
6.80
6.67
5.69
6.37
6.43
6.60
6.42
6.61
6.42
6.35
6.38
6.48
5.52
5.79
5.76
5.32
5.50
5.52
4.93
5.14
5.09
5.47
5.93
5.58
5.56
6.06
5.69
5.78
6.23
5.92
5.77
6.23
5.86
5.85
6.31
5.99
5.79
6.24
5.88
5.81
6.26
5.83
5.73
6.21
5.84
5.73
6.21
5.87
7.66
7.54
6.87
7.77
7.78
7.93
7.73
7.95
7.76
7.68
7.69
7.76
7.37
7.55
7.69
8.05
7.27
7.48
7.54
7.87
6.53
6.80
6.93
7.22
7.40
7.68
7.84
8.15
7.39
7.68
7.84
8.20
7.55
7.79
7.99
8.38
7.36
7.62
7.79
8.15
7.55
7.83
8.01
8.42
7.34
7.64
7.82
8.27
7.29
7.57
7.74
8.13
7.34
7.58
7.76
8.06
7.41
7.65
7.83
8.12
2.19
1.77
1.49
1.25
1.27
1.28
1.21
1.29
1.24
1.22
1.19
1.18
6
7
8
Financial
1-month
2-month
3-month
(historical)3-5'7
9
10
11
Commercial paper
1-month
3-month
6-month
12
13
14
Finance paper, directly placed (historical)
1-month
3-month
6-month
15
16
Bankers
acceptances3,5,9
3-month
6-month
17
18
19
Certificates of deposit, secondary
1-month
3-month
6-month
3,5,8
market3,10
20 Eurodollar deposits, 3-month 3,11
24
25
26
US. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction high 3 , 5 , 1 2
3-month
6-month
1-year
27
28
29
30
31
32
33
34
Constant
maturities13
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
21
22
23
U.S. TREASURY NOTES AND BONDS
Composite
35 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's
series14
36 Aaa
37 Baa
38 Bond Buyer series 15
CORPORATE BONDS
39 Seasoned issues, all industries 16
40
41
42
43
Rating
Aaa
Aa
A
Baa
group
MEMO
Dividend-price
ratio17
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. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
A1 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.15 (519) weekly and
G.13 (415) monthly statistical releases. For ordering address, see inside front cover.
A24
1.36
DomesticNonfinancialStatistics • February 2000
STOCK MARKET
Selected Statistics
1999
Indicator
1996
1997
1998
Mar.
Apr.
May
June
Aug.
July
Sept.
Oct.
Nov.
Prices and trading volume (averages of daily figures)1
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance
357.98
453.57
327.30
126.36
303.94
456.99
574.97
415.08
143.87
424.84
550.65
684.35
468.61
190.52
516.65
603.69
751.93
491.25
218.11
544.08
627.75
780.84
523.08
228.48
564.99
635.62
791.72
537.88
242.98
562.66
629.53
783.96
520.66
241.36
546.43
648.83
809.33
528.72
250.50
557.92
621.03
778.82
492.13
241.84
521.59
607.87
769.47
462.33
237.71
493.37
599.04
753.94
450.13
285.16
490.92
634.22
791.41
474.78
502.58
539.20
6 Standard & Poor's Corporation
( 1 9 4 1 - 4 3 = 10)2
670.49
873.43
1,085.50
1,281.66
1,334.76
1,332.07
1,322.55
1,380.99
1,327.49
1,318.17
1,300.01
1,390.99
7 American Stock Exchange
(Aug. 31, 1973 = 50) 3
570.86
628.34
682.69
711.08
748.29
787.02
772.01
803.75
781.33
788.74
786.96
819.60
409,740
22,567
523,254
24,390
666,534
28,870
776,538
29,563
874,818
38,895
785,778
35,241
723,025
28,806
721,294
25,754
709,569
27,795
772,627
32,540
882,422
35,762
866,281
33,330
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers'
97,400
126,090
140,980
156,440
172,880
177,984
176,930
178,360
176,390
179,316
182,272
206,280
Free credit balances at brokers5
11 Margin accounts6
12 Cash accounts
22,540
40,430
31,410
52,160
40,250
62,450
40,120
59,435
41,200
60,870
41,250
61,665
42,865
64,100
44,330
60,000
44,230
62,600
47,125
62,810
51,040
61,085
49,480
68,200
Margin requirements (percent of market value and effective date)7
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
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
1.38
A25
FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1999
1997
1998
1999
May
US. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit (—), total
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (—))
12 Other 2
June
July
Aug.
Sept.
Oct.
1,579,292
1,187,302
391,990
1,601,235
1,290,609
310,626
-21,943
-103,307
81,364
1,721,798
1,305,999
415,799
1,652,552
1,335,948
316,604
69,246
-29,949
99,195
1,827,285
1,382,817
444,468
1,703,639
1,382,861
320,778
123,646
-45
123,691
199,507
156,929
42,578
145,939
136,141
9,799
53,568
20,788
32,779
121,923
87,959
33,964
147,086
117,652
29,434
-25,164
-29,693
4,530
126,324
91,554
34,770
129,127
97,984
31,143
-2,803
-6,430
3,627
200,396
161,304
39,092
143,427
108,308
35,119
56,969
52,996
3,973
121,035
89,009
32,026
147,701
119,506
28,196
-26,667
-30,497
3,830
121,375
86,909
34,466
149,011
116,991
32,020
-27,635
-30,082
2,446
38,171
604
-16,832
-51,211
4,743
-22,778
-88,304
-17,580
-17,762
-22,246
-27,459
-3,863
1,193
13,553
10,418
26,470
3,160
-26,827
-47,718
-20,069
10,818
5,754
8,891
12,022
6,132
41,488
-19,985
43,621
7,692
35,930
38,878
4,952
33,926
56,458
6,641
49,817
53,102
6,720
46,382
39,549
4,984
34,565
36,389
5,559
30,831
56,458
6,641
49,817
47,567
4,527
43,040
6,079
5,025
1,054
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts
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;
net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government.
A26
1.39
DomesticNonfinancialStatistics • February 2000
U.S. BUDGET RECEIPTS A N D OUTLAYS 1
Millions of dollars
Fiscal year
Calendar year
Source or type
1997
1998
1998
1999
1999
1999
H2
HI
H2
HI
Sept.
Oct.
Nov.
RECEIPTS
1 All sources
1,721,798
2 Individual income taxes, net
3
Withheld
4
Nonwithheld
Refunds
5
Corporation income taxes
Gross receipts
6
7
Refunds
8 Social insurance taxes and contributions, net . . .
Employment taxes and contributions2
9
Unemployment insurance
10
11
Other net receipts3
12
13
14
15
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4
1,827,285
773,810
922,630
825,057
966,045
200,396
121,035
121,375
828,586
646,483
281,527
99,476
879,480
693,940
308,185
122,706
354,072
306,865
58,069
10,869
447,514
316,309
219,136
87,989
392,332
339,144
65,204
12,032
481,527
351,068
240,278
109,467
89,250
49,244
43,077
3,072
63,505
57,596
7,129
1,221
57,477
59,668
2,298
4,490
213,249
24,593
571,831
540,014
27,484
4,333
216,325
31,645
611,832
580,880
26,480
4,472
104,659
10,135
260,795
247,794
10,724
2,280
109,353
14,220
312,713
293,520
17,080
2,112
104,163
14,250
268,466
256,142
10,121
2,202
106,861
17,092
324,831
306.235
16,378
2,216
42,571
2,336
55,481
54,794
332
356
7,175
4,995
43,879
42,412
1,049
418
3,461
1,809
49,013
45,759
2,868
386
57,673
18,297
24,076
32,658
70,399
18,336
27,782
34,777
31,133
9,679
10,262
13,348
29,922
8,546
12,971
15,829
33,366
9,838
12,359
18,735
31,015
8,440
14,915
15,140
7,167
1,727
2,294
4,242
4,181
1,788
2,554
2,948
6,072
1,621
2,465
3,075
l,703,639 r
824,368
815,884
877,414
817,235
143,427 r
OUTLAYS
16 All types
1,652,552
147,701
149,011
17
18
19
20
21
22
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
268,456
13,109
18,219
1,270
22,396
12,206
276,792
15,264
19,397
981
22,303
24,359
140,873
9,420
10,040
411
11,106
10,590
129,351
4,610
9,426
957
10,051
2,387
140,196
8,297
10,142
699
12,671
16,757
134,414
6,879
9,319
797
10,351
9,803
24,279
1,382
1,773
375
2,246
1,150
24,036
1,000
1,524
-311
1,528
6,759
23,224
1,522
1,661
-199
2,078
7,401
23
24
25
26
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
1,014
40,332
9,720
2,966
38,856
12,791
-3,526
20,414
5,749
-2,483
16,196
4,863
4,046
20,836
6,972
-1,629
17,082
5,368
6,877 r
4,260
1,330
1,698
3,750
1,627
1,108
3,890
1,244
27 Health
28 Social security and Medicare
29 Income security
30
31
32
33
34
Veterans benefits and services
Administration of justice
General government
Net interest5
Undistributed offsetting receipts 6
54,919
57,438
26,851
25,928
27,762
29,003
5,437
5,175
4,070
131,440
572,047
233,202
140,803
580,491
237,180
63,552
283,109
106,353
65,053
286,305
125,196
67,838
316,809
109,481
69,320
261,146
126,552
13,031
48,681
16,897
12,229
48,179
17,607
12,124
48,686
18,216
41,781
22,832
13,444
243,359
-47,194
43,210
25,837
16,058
230,265
-40,445
22,077
10,212
7,302
122,620
-22,795
19,615
11,287
6,139
122,345
-21,340
22,750
12,041
9,136
116,954
-25,793
20,105
13,149
6,650
116,655
-17,724
3,615
2,306
1,696
15,259
-7,164
3,657
2,127
1,117
18,894
-2,896
3,795
2,579
646
20,410
-3,441
1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do not correspond to calendar year data because revisions from the Budget have not
been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Federal employee retirement contributions and civil service retirement and
disability fund.
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S.
Government, Fiscal Year 2000\ 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
A27
FEDERAL D E B T SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1997
1998
1999
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
1 Federal debt outstanding
5,446
5,536
5,573
5,578
5,556
5,643
5,681
5,668
5,685 r
2 Public debt securities
3
Held by public
4
Held by agencies
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
5,614
3,787
1,827
5,652
3,795
1,857
5,639
3,685
1,954
5,656
3,667r
l,989 r
33
26
7
34
27
7
31
26
5
30
26
4
29
26
4
29
29
1
29
28
1
29
28
1
29r
28r
lr
5,328
5,417
5,457
5,460
5,440
5,530
5,566
5,552
5,568
5,328
0
5,416
0
5,456
0
5,460
0
5,439
0
5,530
0
5,566
0
5,552
0
5,568
0
5,950
5,950
5,950
5,950
5,950
5,950
5,950
5,950
5,950
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
1998
Type and holder
1995
1996
1997
Q4
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
15
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds1
Nonmarketable2
State and local government series
Foreign issues 3
Government
Public
Savings bonds and notes
Government account series4
Non-interest-bearing
By holder 5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks
18 Private investors
19
Depository institutions
Mutual funds
20
21
Insurance companies
22
State and local treasuries6
Individuals
Savings bonds
23
Pension funds
24
Private
25
State and Local
26
27
Foreign and international7
Other miscellaneous investors6,8
28
Q1
Q2
Q3
4,988.7
5,323.2
5,502.4
5,614.2
5,614.2
5,651.6
5,638.8
5,656.3
4,964.4
3,307.2
760.7
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
5,494.9
3,456.8
715.4
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5
5,605.4
3,355.5
691.0
1,960.7
621.2
50.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8
5,605.4
3,355.5
691.0
1,960.7
621.2
50.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8
5,643.1
3.361.3
725.5
1,912.0
632.5
59.2
2,281.8
167.5
33.5
33.5
.0
180.6
1,870.2
8.5
5,629.5
3,248.5
647.8
1,868.5
632.5
59.9
2,381.0
172.6
30.9
30.9
.0
180.0
1,967.5
9.3
5,647.2
3,233.0
653.2
1,828.8
643.7
67.6
2,414.2
168.1
31.0
31.0r
.0
180.0
2,005.2
9.0
1,304.5
391.0
3,307.7
315.4
286.5
241.5
289.8
1,497.2
410.9
3,431.2
296.6
315.8
214.1
257.0
1,655.7
451.9
3,414.6
300.3
321.5r
176.6
239.3
1,826.8
471.7
3,334.0
237.3r
343.2r
144.6
269.3
1,826.8
471.7
3,334.0
237.3r
343.2r
144.6
269.3
1,857.1
464.5
3,327.6
241.1'
351.l r
143.8r
272.5r
1,953.6
493.8
3,199.3
243.0
328.1
141.8
279.1
1,989.1
496.5
3,175.6
n.a.
n.a.
n.a.
n.a.
185.0
368.2r
176.5r
191.7r
835.2
786. l r
187.0
392.7r
189.2r
203.5r
1,102.1
665.9r
186.5
421,0 r
204. l r
216.9r
1,241.6
527.9r
186.7
434.7 r
218. l r
216.6 r
1,278.7
439.6 r
186.7
434.7 r
218.l r
216.6 r
1,278.7
439.6 r
186.6
437.2 r
220.0 r
217.2 r
l,272.1 r
416.6 r
186.6
439.5
226.6
212.9
l,258.6 r
322.6
186.3
n.a.
n.a.
n.a.
1,281.3
n.a.
1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.
1999
1998
2,106.1
7. Includes nonmarketable foreign series treasury securities and treasury deposit funds.
Excludes treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.
A28
1.42
DomesticNonfinancialStatistics • February 2000
Transactions 1
U.S. GOVERNMENT SECURITIES DEALERS
Millions of dollars, daily averages
1999
1999, week ending
Item
Aug.
Sept.
26,323
99,186
68,592
826
Oct.
Sept. 29
Oct. 6
Oct. 13
Oct. 20
27,445
23,806
82,426
54,516
586
90,839
57,462
1,096
24,693
26,101
23,011
95,035
62,209
629
103,945
55,369
2,314
86,924
53,537
562
45,889
46,570
111
1,018
45,499
47,373
52,951
847
1,279
939
5,126
4,832
66,417
5,858
4,593
64,305
6,420
3,874
63,248
9,346
4,149
44,491
105,210
4,070
25,261
88,466
4,534
23,835
93,305
4,969
21,540
89,717
52,553
41,156
76,506
53,504
40,469
79,898
51,671
41,708
Oct. 27
Nov. 3
Nov. 17
Nov. 24
24,314
22,047
24,326
82,519
61,196
1,499
90,643
55,937
506
95,703
65,940
460
37,437
35,985
23,983
114,337
73,508
989
110,793
66,208
722
90,562
55,396
782
46,227
42,441
42,844
43,062
968
849
790
498
44,939
57,105
47,022
314
818
4,810
3,479
68,329
9,770
3,856
102,275
5,901
3,737
46,148
4,641
3,006
44,349
1,229
7,009
7,220
45,512
7,963
2,895
101,830
5,719
3,474
53,088
4,170
5,246
33,059
100,747
4,507
20,472
100,831
4,023
21,249
85,585
5,426
30,508
92,226
5,662
18,721
93,708
4,720
17,042
99,241
4,606
17,991
124,018
5,295
33,378
111,932
5,922
19,791
91,447
4,356
12,852
81,819
57,639
24,019
86,898
58,157
47,080
78,448
55,394
71,768
77,302
47,267
27,427
75,426
46,560
27,307
87,188
53,183
27,521
102,253
50,816
68,452
101,777
61,193
33,298
79,276
53,311
20,207
n.a.
n.a.
n.a.
n.a.
Nov. 10
2
OUTRIGHT TRANSACTIONS
1
2
3
4
5
6
7
8
9
By type 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
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
13
U.S. Treasury
14
Federal agency
15
Mortgage-backed
10
11
12
FUTURES TRANSACTIONS3
By type of deliverable security
16 U.S. Treasury bills
Coupon securities, by maturity
17
Five years or less
18
More than five years
19 Inflation-indexed
Federal agency
20 Discount notes
Coupon securities, by maturity
21
One year or less
22
More than one year, but less than
or equal to five years
23
More than five years
24 Mortgage-backed
0
0
4,701
14,980
0
2,226
13,642
0
2,543
12,576
0
n.a.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
n.a.
n.a.
n.a.
3,354
12,564
0
2,186
10,767
0
3,050
14,003
0
1,862
12,112
0
2,247
14,719
0
4,375
14,753
0
2,016
12,676
0
2,451
16,092
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
1,819
14,028
0
n.a.
OPTIONS TRANSACTIONS4
25
26
27
28
29
30
31
32
33
By type of underlying security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
0
0
0
0
0
0
1,197
4,480
0
842
3,440
0
1,039
3,802
0
645
0
0
1,110
0
0
1,244
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,033
0
0
917
0
0
498
0
0
0
0
0
0
0
0
0
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in five business days or less and "when-issued"
securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.
0
0
0
0
0
591
0
0
1,617
0
0
1,943
0
0
2,692
0
0
1,316
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
996 .
0
0
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Federal Finance
1.43
U.S. GOVERNMENT SECURITIES DEALERS
A29
Positions and Financing1
Millions of dollars
1999
1999, week ending
Item
Aug.
Sept.
Sept. 29
Oct.
Oct. 6
Oct. 13
Oct. 20
Oct. 27
Nov. 3
Nov. 10
Nov. 17
Positions'*
3
NET OUTRIGHT POSITIONS
1
2
3
4
5
6
7
8
9
By type 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
165
1,862
7,071
-341
1,598
8,456
8,929
8,872
6,450
18,382
-107
-31,236
-7,689
3,370
-33,167
-14,651
3,758
-33,679
-22,651
3,781
-30,337
-15,694
3,531
-33,225
-19,135
4,161
-35,289
-21,983
4,035
-39,504
-22,914
3,528
-26,047
-24,494
3,622
-34,706
-25,412
3,489
-31,322
-22,166
3,421
-29,763
-24,574
3.201
29,448
38,620
40,900
37,279
40,332
39,198
35,664
44,242
48,044
49,010
40,261
4,065
5,158
6,085
5,246
7,256
5,764
5,706
5,925
5,837
5,310
5,385
6,923
1,023
17,990
6,989
2,346
18,585
4,438
2.913
20,356
7,430
2,615
15,596
4,438
1.664
16,636
5,018
2,981
22.120
4,406
3,119
22,955
3,714
3,071
17,281
4,749
4,028
23,680
5,362
3,958
26,743
4,505
3,010
27,531
n.a.
n.a.
n.a.
n.a.
NET FUTURES POSITIONS4
By type of deliverable security
10 U.S. Treasury bills
Coupon securities, by maturity
11
Five years or less
12
More than five years
13 Inflation-indexed
Federal agency
14 Discount notes
Coupon securities, by maturity
15
One year or less
More than one year, but less than
16
or equal to five years
17
More than five years
18 Mortgage-backed
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
10,940
-5,879
0
7,803
-420
0
10,122
9,652
0
6,301
1,302
0
10,411
4,912
0
12,073
9,957
0
9,928
11,952
0
9,652
13,256
0
7,435
5,893
0
2,222
284
0
2,345
484
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
-1,661
-553
0
-57
-1,552
0
-1,669
-3,571
0
456
-1,483
0
-614
-4,075
0
-1,441
-4,888
0
-2,486
-2,656
0
-2,542
-3,140
0
-692
-2,863
0
148
-587
0
193
-1,132
0
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.
3,540
n.a.
n.a.
2,105
69
28
1,011
n.a.
n.a.
2,103
n.a.
n.a.
1,728
32
826
68
32
509
70
6
1,062
n.a.
n.a.
-726
NET OPTIONS POSITIONS
19
20
21
22
23
24
25
26
27
By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
n.a.
32
1,053
n.a.
n.a.
39
-880
Financing5
Reverse repurchase agreements
78 Overnight and continuing
29 Term
273.639
780,367
290,610
792,662
288,446
806,146
303,871
810,388
295,403
765,661
289,515
792,836
293,341
810,239
268,989
831,878
301,622
837,974
259,922
894,097
313,198
727,327
Securities borrowed
10 Overnight and continuing
31 Term
254,149
87,850
250,667
91,796
255,880
96,565
243,384
95,524
260,255
93,727
254,576
93,874
257,963
98,054
252,632
98,817
253,642
98,985
239,261
103,531
246,802
91,623
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,583
n.a.
2,393
n.a.
2,235
n.a.
2,351
n.a.
Repurchase agreements
34 Overnight and continuing
35 Term
694,296
650,774
692,032
680,923
694,423
683,085
684,837
724,393
689,566
640,089
691,509
660,904
695,993
693,946
689,536
709.638
712,610
720,925
647,053
811,122
711,383
628,116
Securities loaned
36 Overnight and continuing
37 Term
9,885
7,269
9,063
7,026
9,040
7,090
9,006
6,689
9,019
6,916
9,106
6,671
8,814
7,412
9,051
7,368
9,329
7,032
9,454
7,005
9,199
6,743
Securities pledged
38 Overnight and continuing
39 Term
53,526
8,213
53,966
8,116
54,712
8,382
54,502
8,354
57,870
8,370
57,441
8,276
52,812
8,383
53,435
8,499
50,756
8,379
50,163
7,927
49,651
6,116
Collateralized
40 Total
18,826
23,284
25,763
24,024
25,111
20,695
27,676
26,642
30,725
25,868
23,329
Securities received as pledge
32 Overnight and continuing
33 Term
2,395
n.a.
n.a.
n.a.
1,907
n.a.
loans
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate positions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
'"when-issued" securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
A30
1.44
DomesticNonfinancialStatistics • February 2000
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
1999
Agency
1995
1996
1997
1998
May
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department1
4
Export-Import Bank2'3
5
Federal Housing Administration4
6
Government National Mortgage Association certificates of
participation5
/
Postal Service6
8
Tennessee Valley Authority
9
United States Railway Association6
10 Federally sponsored agencies7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks8
15
Student Loan Marketing Association 9
16
Financing Corporation10
Farm Credit Financial Assistance Corporation11
17
18
Resolution Funding Corporation12
MEMO
19 Federal Financing Bank debt 13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
July
Aug.
844,611
925,823
1,022,609
1,296,477
1,404,576
1,425,396
l,457,925 r
29,380
6
1,447
84
27,792
6
552
102
26,502
6
n.a.
205
26,094
6
n.a.
88
26,370
6
n.a.
99
26,204
6
n.a.
105
26,107
6
n.a.
109
n.a.
5,765
29,429
n.a.
n.a.
n.a.
27,853
n.a.
n.a.
n.a.
27,786
n.a.
n.a.
n.a.
26,496
n.a.
n.a.
n.a.
26,088
n.a.
n.a.
n.a.
26,364
n.a.
n.a.
n.a.
26,198
n.a.
n.a.
n.a.
26,101
n.a.
807,264
243,194
119,961
299,174
57,379
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
994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996
1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996
1,378,482
421,655
317,533
492,913
66,608
38,129
8,170
1,261
29,996
1,399,026
437,109
314,412
499,897
67,749
37,959
8,170
1,261
29,996
1,431,721
444,775
334,575
502,653
66,922
40,843
8,170
1,261
29,996
1,465,793
458,320
340,972
517,200
67,269
40,310
8,170
1,261
29,996
78,681
58,172
49,090
44,129
41,131
40,585
39,901
39,341
2,044
5,765
n.a.
3,200
n.a.
1,431
n.a.
n.a.
n.a.
n.a.
552
n.a.
n.a.
n.a.
n.a.
1
n.a.
1
1
n.a.
21,015
17,144
29,513
18,325
16,702
21,714
13,530
14,898
20,110
9,500
14,091
20,538
8,275
13,997
18,859
Sept.
1,491,900
37,347
6
2,050
97
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration, the Department
of Health, Education, and Welfare, the Department of Housing and Urban Development, the
Small Business Administration, and the Veterans Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation, therefore details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
June
f
t
f
I
t
+
f
1
n.a.
1
1
n.a.
7,935
13,877
18,773
7,445
13,944
18,512
t
I
1
n.a.
1,499,532
481,639
341,144
524,880
67,938
41,921
170
1,261
29,996
f
1
n.a.
I
t
n a.
7,270
13,969
18,102
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance
1.45
N E W SECURITY ISSUES
A31
Tax-Exempt State and Local Governments
Millions of dollars
1999
Type of issue or issuer,
or use
1996
1997
1998
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
1 All issues, new and refunding 1
171,222
214,694
262,342
15,758
16,234
23,428
18,671
15,746
18,433
17,497
17,428
By type of issue
2 General obligation
3 Revenue
60,409
110,813
69,934
134,989
87,015
175,327
6,443
9,315
5,294
10,941
10,997
12,431
6,206
12,465
4,268
11,478
5,171
13,262
4,183
13,314
4,996
12,433
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
13,651
113,228
44,343
18,237
134,919
70,558
23,506
178,421
60,173
907
10,010
4,841
1,220
11,279
3,735
1,236
18,414
3,779
2,194
13,572
2,906
911
11,578
3,257
2,341
13,449
2,642
1,753
12,186
3,557
929
12,613
3,886
7 Issues for new capital
112,298
135,519
160,568
10,474
12,149
19,509
12,172
12,530
14,973
14,908
14,084
26,851
12,324
9,791
24,583
6,287
32,462
31,860
13,951
12,219
27,794
6,667
35,095
36,904
19,926
21,037
n.a.
8,594
42,450
2,734
1,107
1,372
n.a.
618
2,592
2,795
1,791
603
n.a.
1,058
3,760
3,793
1,650
1,594
n.a.
739
7,195
3,415
1,264
535
n.a.
850
2,729
2,842
1,955
1,038
n.a.
585
3,255
2,885
1,886
1,976
n.a.
1,271
3,941
2,049
1,674
1,176
n.a.
726
4,509
2,732
892
1,893
n.a.
668
5,213
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
N E W SECURITY ISSUES
SOURCE. Securities Data Company beginning January
Digest before then.
1990; Investment
Dealer's
U.S. Corporations
Millions of dollars
1999
Type of issue, offering,
or issuer
1996
1997
1998
Mar.
Apr.
May
June
July
Aug.
Sept/
Oct.
1 All issues 1
773,110
929,256
1,128,491
126,161
85,862
110,475
96,608
96,608
83,466
82,414
58,176
2 Bonds 2
651,104
811,376
1,001,736
116,440
76,721
94,713
88,338
83,546
75,708
75,807
47,102
By type of offering
3 Sold in the United States
4 Sold abroad
567,671
83,433
708,188
103,188
923,771
77,965
101,024
15,416
65,886
10,834
86,730
7,983
79,031
9,306
69,451
14,095
63,383
12,325
65,679
10,128
37,721
9,382
1,224
2,935 r
5,022 r
6,44 l r
1,372
1,467
MEMO
5 Private placements, domestic
43,688'
54,990 r
37,845 r
2,133 r
1,670 r
By industry group
6 Nonfinancial
7 Financial
167,904
483,200
222,603
588,773
307,935
693,801
39,818
76,623
30,676
46,045
32,843
61,870
24,531
63,807
25,526
58,020
22,704
53,005
20,655
55,151
13,990
33,112
8 Stocks 3
122,006
117,880
126,755
9,721
9,141
15,762
8,270
13,062
7,758
6,607
11,074
By type of offering
9 Public
10 Private placement 4
122,006
n.a.
117,880
n.a.
126,755
n.a.
9,721
n.a.
9,141
n.a.
15,762
n.a.
8,270
n.a.
13,062
n.a.
7,758
n.a.
6,607
n.a.
11,074
n.a.
By industry group
11 Nonfinancial
12 Financial
80,460
41,546
60,386
57,494
74,113
52,642
8,534
1,187
7,640
1,501
10,425
5,337
6,436
1,834
11,589
1,473
6,379
1,379
5,647
960
10,717
357
1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data are not available.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.
A32
1.47
DomesticNonfinancialStatistics • February 2000
Net Sales and Assets 1
O P E N - E N D INVESTMENT COMPANIES
Millions of dollars
1999
Item
1998
1997
Apr.
1 Sales of own shares 2
May
June
July
Aug.
Sept.
Oct.
Nov.
1,190,900
1,461,430
166,324
140,422
138,502
140,926
132,991
132,226
140,738
158,574
918,728
272,172
1,217,022
244,408
139,035
27,288
127,800
12,622
117,953
20,550
128,173
12,754
125,908
7,084
126,207
6,019
124,052
16,686
146,716
11,858
4 Assets 4
3,409,315
4,173,531
4,505,237
4,442,880
4,650,385
4,585,131
4,548,784
4,498,964
4,705,746
4,874,572
5 Cash5
6 Other
174,154
3,235,161
191,393
3,982,138
211,243
4,293,994
211,580
4,231,300
214,779
4,435,607
209,061
4,376,070
209,349
4,339,435
209,709
4,289,255
225,762
4,479,985
215,395
4,659,177
2 Redemptions of own shares
3 Net sales 3
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.
1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.
1.48
CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1997
Account
1996
1997
1998
1999
1998
Q4
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits-tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits
7 Inventory valuation
8 Capital consumption adjustment
Q1
Q2
Q3
Q4
Q1
Q2
Q3
753.9
726.3
223.6
502.7
297.7
205.0
837.9
795.9
238.3
557.6
333.7
223.9
846.1
781.9
240.2
541.7
348.6
193.1
853.5
811.6
244.1
567.4
344.8
222.6
858.3
788.9
239.9
548.9
346.5
202.5
847.9
792.0
241.1
550.9
347.3
203.6
843.8
780.1
244.3
535.8
348.4
187.4
834.3
766.7
235.6
531.0
352.2
178.8
882.0
818.1
248.0
570.1
356.4
213.7
875.5
835.8
254.4
581.4
361.5
219.9
879.2
853.8
259.4
594.3
367.3
227.0
3.1
24.4
7.4
34.6
20.9
43.3
4.0
38.0
29.5
39.9
13.6
42.4
19.8
43.9
20.8
46.9
13.3
50.6
-13.6
53.2
-26.7
52.1
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
1998
Account
1996
1997
1999
1998
Ql
Q2
Q3
Q4
Ql
Q2
Q3
ASSETS
Accounts receivable, gross 2
2
Consumer
Business
3
4
Real estate
1
637.1
244.9
309.5
82.7
663.3
256.8
318.5
87.9
711.7
261.8
347.5
102.3
667.2
251.7
325.9
89.6
676.0
251.3
334.9
89.9
687.6
254.0
335.1
98.5
711.7
261.8
347.5
102.3
733.8
261.7
362.8
109.2
756.5
269.2
373.7
113.5
776.5
271.3
382.9
122.3
55.6
13.1
52.7
13.0
56.3
13.8
52.1
13.1
53.2
13.2
52.4
13.2
56.3
13.8
52.9
13.4
53.4
13.4
54.0
13.6
7 Accounts receivable, net
8 All other
568.3
290.0
597.6
312.4
641.6
337.9
601.9
329.7
609.6
340.1
622.0
313.7
641.6
337.9
667.6
363.3
689.7
373.2
708.8
368.6
9 Total assets
858.3
910.0
979.5
931.6
949.7
935.7
979.5
1,030.8
1,062.9
1,077.4
19.7
177.6
24.1
201.5
26.3
231.5
22.0
211.7
22.3
225.9
24.9
226.9
26.3
231.5
24.8
222.9
25.1
231.0
27.0
205.3
60.3
332.5
174.7
93.5
64.7
328.8
189.6
101.3
61.8
339.7
203.2
117.0
64.6
338.2
193.1
102.1
60.0
348.7
188.9
103.9
58.3
337.6
185.4
103.6
61.8
339.7
203.2
117.0
64.6
366.7
220.3
131.5
65.4
383.1
226.1
132.2
84.7
396.2
216.0
148.2
858.3
910.0
979.5
931.6
949.7
936.6
979.5
1,030.8
1,062.9
1,077.4
5 LESS: Reserves for unearned income
Reserves for losses
6
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
16 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses,
Securities Market and Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A33
Owned and Managed Receivables 1
Billions of dollars, amounts outstanding
1999
Type of credit
1996
1997
1998
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
1 Total
762.4
810.5
875.8
931.9
938.1
954.7
967.4
972.8
978.4
2
3
4
307.6
111.9
342.9
327.9
121.1
361.5
352.8
131.4
391.6
369.5
142.8
419.5
372.4
141.2
424.5
375.9
144.2
434.6
380.8
146.7
439.9
381.9
148.9
442.0
384.1
149.3
445.0
Consumer
Real estate
Business
Not seasonally adjusted
5 Total
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Consumer
Motor vehicles loans
Motor vehicle leases
Revolving 2
Other3
Securitized assets4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6
769.7
818.1
884.0
931.6
942.9
948.9
962.2
968.4
976.7
310.6
86.7
92.5
32.5
33.2
330.9
87.0
96.8
38.6
34.4
356.1
103.1
93.3
32.3
33.1
368.3
105.1
95.3
31.3
32.0
374.6
108.6
95.6
32.4
32.6
378.1
108.5
97.0
32.8
32.0
382.0
112.7
98.3
33.0
31.6
383.1
109.5
98.1
30.7
32.8
384.6
110.3
98.4
31.5
32.4
36.8
8.7
.0
20.1
111.9
52.1
30.5
44.3
10.8
.0
19.0
121.1
59.0
28.9
54.8
12.7
8.7
18.1
131.4
75.7
26.6
65.8
11.6
8.7
18.3
142.8
83.6
31.5
65.3
11.3
9.7
19.0
141.2
80.5
33.0
68.3
11.1
9.9
18.4
144.2
83.6
33.1
68.0
10.8
9.4
18.1
146.7
86.0
33.7
73.5
10.6
10.2
17.8
148.9
87.7
34.6
74.1
10.3
10.1
17.6
149.3
87.7
35.1
28.9
.4
347.2
67.1
25.1
33.0
9.0
194.8
59.9
134.9
47.6
33.0
.2
366.1
63.5
25.6
27.7
10.2
203.9
51.5
152.3
51.1
29.0
.1
396.5
79.6
28.1
32.8
18.7
198.0
50.4
147.6
69.9
27.4
.3
420.5
84.4
31.6
33.8
19.0
203.8
51.7
152.1
78.9
27.5
.2
427.1
82.8
30.9
32.7
19.2
208.3
53.3
155.1
82.6
27.2
.2
426.7
78.8
31.7
27.9
19.3
208.5
52.9
155.6
89.2
26.8
.2
433.5
78.6
33.3
26.8
18.5
210.5
53.1
157.4
92.7
26.5
.2
436.3
80.3
34.5
26.8
19.0
208.0
48.2
159.8
94.7
26.2
.2
442.8
84.3
34.9
30.3
19.1
210.5
49.4
161.1
97.1
24.0
2.7
21.3
.0
11.3
4.7
6.6
2.4
33.0
2.4
30.5
.0
10.7
4.2
6.5
4.0
29.2
2.6
24.7
1.9
13.0
6.6
6.4
6.8
32.0
2.2
27.8
1.9
13.2
6.5
6.6
8.3
32.1
2.9
27.2
2.0
13.3
6.7
6.6
8.0
28.4
2.8
23.5
2.0
13.8
7.1
6.7
7.9
30.4
2.7
25.7
2.0
13.5
6.9
6.6
7.8
31.0
2.6
26.4
2.0
14.6
7.7
6.9
7.7
28.8
2.5
24.3
2.0
14.3
7.6
6.8
7.7
NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown
before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A34
1.53
DomesticNonfinancialStatistics • February 2000
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
1999
Item
1996
1997
1998
May
June
July
Aug.
Sept.
Oct.
Nov.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Termsx
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
180.1
140.3
80.4
28.2
1.02
195.2
151.1
80.0
28.4
.89
207.5
161.6
79.8
28.7
.69
211.0
162.0
79.0
28.6
.72
207.6
158.2
78.6
28.5
.83
213.8
163.1
78.3
28.5
.68
210.3
161.8
78.8
29.1
.64
214.4
165.1
79.0
29.1
.71
220.8
167.0
77.4
29.0
.73
7.56
7.77
8.03
7.57
7.73
7.76
6.95
7.08
7.00
6.78
6.89
7.17
6.92
7.03
7.59
7.16
7.29
7.75
6.99
7.09
7.87
6.99
7.09
7.76
7.06
7.17
7.77
7.13
7.24
7.79
8.19
7.48
Yield (percent per year)
6 Contract rate1
7 Effective rate1'3
8 Contract rate (HUD series) 4
182.4
139.2
78.2
27.2
1.21
7.89
7.26
7.04
6.43
7.58
6.79
8.13
7.21
8.00
7.28
8.10
7.53
8.05
7.42
8.02
7.52
8.06
7.37
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203) 5
10 GNMA securities 6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/VA insured
13
Conventional
287,052
30,592
256,460
316,678
31,925
284,753
414,515
33,770
380,745
464,530
38,938
425,592
473,315
41,143
432,172
480,651
44,132
436,519
495,302
47,846
447,456
504,938
49,456
455,482
509,990
50,639
459,351
518,337
52,632
465,705
14 Mortgage transactions purchased (during period)
68,618
70,465
188,448
25,640
15,934
14,004
21,094
15,200
10,057
14,683
Mortgage commitments (during
15 Issued7
16 To sell 8
65,859
130
69,965
1,298
193,795
1,880
12,517
178
19,507
351
12,966
260
18,153
478
7,998
609
10,480
1,710
12,050
381
Mortgage holdings (end of period f
17 Total
18
FHA/VA insured
19
Conventional
137,755
220
137,535
164,421
177
164,244
255,010
785
254,225
285,881
1,610
284,271
299,184
1,726
297,458
300,093
1,735
298,358
306,214
1,708
304,506
315,968
l,689 r
314,279 r
318,682
1,744
316,938
323,027
1,744
321,283
Mortgage transactions
20 Purchases
21 Sales
125,103
119,702
117,401
114,258
267,402
250,565
22,503
21,972
21,950
20,349
17,602
16,835
18,674
17,468
15,238
14,153
13,323
12,671
11,869
11,129
128,995
120,089
281,899
20,052
21,610
14,988
18,951
14,608
10,810
10,501
period)
FEDERAL HOME LOAN MORTGAGE CORPORATION
(during
period)
22 Mortgage commitments contracted (during period) 9
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points'' paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured
by the Federal Housing Administration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
Real Estate
1.54
A35
MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1999
1998
Type of holder and property
1995
1996
1997
Q3
Q4
Ql
Q2'
Q3P
1 All holders
4,603,981 r
4,901,568 r
5,216,785 r
5,574,398 r
5,728,167 r
5,867,271 r
6,019,110
6,181,073
By type of property
2 One- to four-family residences
3 Multifamily residences
4 Nonfarm, nonresidential
5
3,510,319 r
277,002
732,100
84,561
3,721,917 r
294,783
797,734
87,134
3,959,565'
310,456
856,464
90,299
4,223,398'
330,595
926,039
94,366'
4,328,434'
340,773'
962,454'
96,506
4,420,931'
351,643'
997,294'
97,404'
4,533,159
359,275
1,027,022
99,655
4,647,881
372,474
1,058,954
101,764
1,900,089
1,090,189
646,545
42,521
377,293
23,830
596,763
482,353
61,987
52,135
288
213,137
8,890
28,714
165,876
9,657
1,981,885
1,145,389
677,603
45,451
397,452
24,883
628,335
513,712
61,570
52,723
331
208,161
6,977
30,750
160,314
10,120
2,083,978
1,245,315
745,510
49,670
423,148
26,986
631,822
520,672
59,543
51,252
354
206,841
7,187
30,402
158,780
10,472
2,137,438
1,295,828
770,340
52,205
444,596
28,688
634,251
525,844
56,696
51,312
399
207,359
6,594
30,565
159,189
11,011
2,194,814'
1,337,217'
797,196'
52,871
458,115'
29,035
643,957'
533,792
56,825
52,923'
417
213,640
6,590
31,522
164,004
11,524
2,202,241'
1,336,669'
782,128'
56,170
468,859'
29,512
646,510'
534,772'
56,763
54,539'
435
219,063
6,956
31,528
168,862
11,717
2,242,515
1,361,355
790,125
58,572
482,115
30,544
656,518
544,832
55,020
56,222
443
224,642
7,295
31,813
173,568
11,966
2,321,982
1,418,510
824,677
63,130
499,327
31,377
676,260
560,447
57,285
58,070
459
227,212
7,548
32,120
175,242
12,302
308,757
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
178,807
163,648
15,159
28,428
1,673
26,755
43,753
39,901
3,852
295,192
2
2
0
41,596
17,303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
168,813
155,008
13,805
29,602
1,742
27,860
46,504
41,758
4,746
286,167
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
161,308
149,831
11,477
30,657
1,804
28,853
48,454
42,629
5,825
287,125
7
7
0
40,907
17,025
11,736
7,566
4,579
3,405
1,550
1,855
0
0
0
0
0
482
72
82
328
0
159,104
149,069
10,035
32,009
1,883
30,126
51,211
44,254
6,957
292,636
7
7
0
40,851
16,895
11,739
7,705
4,513
3,674
1,849
1,825
0
0
0
0
0
361
54
61
245
0
157,675
147,594
10,081
32,983
1,941
31,042
57,085
49,106
7,979
288,216'
6
6
0
40,691
16,777
11,731
7,769
4,413
3,578'
1,753'
1,825
0
0
0
0
0
315
47
54
214
0
157,185
147,063
10,122
33,128
1,949
31,179
53,313
44,140
9,173
288,038
8
8
0
40,766
16,653
11,735
7,943
4,435
3,490
1,623
1,867
0
0
0
0
0
189
28
32
129
0
155,637
145,033
10,604
33,666
1,981
31,685
54,282
43,574
10,708
289,159
8
8
0
40,766
16,653
11,735
7,943
4,435
3,889
2,013
1,876
0
0
0
0
0
163
24
28
111
0
154,420
142,982
11,438
34,218
2,013
32,205
55,695
44,010
11,685
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
2,273,022
536,879
523,225
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
447,173
318,000
29,218
99,955
0
2,548,301
541,540
527,043
14,497
635,726
633,124
2,602
798,460
770,979
27,481
2
0
0
0
2
572,573
391,736
40,895
139,942
0
2,632,829'
537,446
522,498
14,948
646,459
643,465
2,994
834,518
804,205
30,313
1
0
0
0
1
614,405'
410,900
44,644'
158,861'
0
2,762,733'
543,280'
527,886'
15,395
687,179
684,240
2,939
881,815
849,513
32,302
1
0
0
0
1
650,459'
430,653
48,393'
171,413
0
2,861,115
553,242
537,333
15,909
718,085
714,844
3,241
911,435
877,863
33,572
1
0
0
0
1
678,353
447,938
50,679
179,736
0
2,928,475
569,155
552,787
16,368
738,581
735,088
3,493
938,484
903,531
34,953
1
0
0
0
1
682,254
438,676
52,851
190,727
0
531,926 r
372,037 r
64,970
77,112
17,806
559,609 r
363,143 r
69,179
109,119
18,169
573,619'
366,744'
72,629
115,467
18,779
601,534'
383,877'
74,987
123,107
19,562
607,888'
392,343'
74,971
120,600
19,974
614,081'
393,047'
75,249
125,638'
20,147
627,442
404,028
75,524
127,310
20,580
641,457
417,424
75,512
127,536
20,985
By type of holder
6 Major financial institutions
7
Commercial banks2
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
12
Savings institutions^
13
One- to four-family
14
Multifamily
Nonfarm, nonresidential
1.*)
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration4
27
One- to four-family
28
Multifamily
29
Nonfarm, nonresidential
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
Multifamily
33
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Nonfarm, nonresidential
38
Farm
Federal Deposit Insurance Corporation
39
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
43
Farm
44
Federal National Mortgage Association
45
One- to four-family
46
Multifamily
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts5
54
Government National Mortgage Association
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Multifamily
63
Farmers Home Administration4
64
One- to four-family
65
Multifamily
Nonfarm, nonresidential
66
67
Farm
68
Private mortgage conduits
69
One- to four-family 6
70
Multifamily
Nonfarm, nonresidential
71
72
Farm
73 Individuals and others7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential
77
Farm
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.
6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.
A36
1.55
DomesticNonfinancialStatistics • February 2000
CONSUMER CREDIT'
Millions of dollars, amounts outstanding, end of period
1999
Holder and type of credit
1996
1997
1998
May
July1"
June
Aug. r
Sept.r
Oct.
Seasonally adjusted
1 Total
1,182,439
1,234,122
1,300,491
1,343,427
1,347,831
1,356,404
1,363,184
1,366,678
1,370,880
499,532
682,907
2 Revolving
3 Nonrevolving 2
531,295
702,828
560,653
739,838
571,957
771,470
578,530
769,301
583,309
773,096
584,523
778,661
584,588
782,090
584,285
786,595
Not seasonally adjusted
4 Total
1,211,590
1,264,103
1,331,742
1,331,267
1,340,414
1,349,610
1,364,404
1,370,182
1,375,989
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets 3
526,769
152,391
144,148
44,711
77,745
265.826
512,563
160,022
152,362
47,172
78,927
313,057
508,932
168,491
155,406
51,611
74,877
372,425
492,852
168,490
158,102
55,982
68.051
387,790
477.774
173,617
158,177
57,161
68,042
405,643
477,908
173,374
159,920
58,126
68,235
412,047
476,561
177,331
162,412
59,091
68,896
420,113
472,524
172,956
164,055
60,055
67,559
433,033
472,230
174,159
165,947
61,020
68,148
434,485
By major type of credit4
11 Revolving
12
Commercial banks
Finance companies
13
14
Credit unions
Savings institutions
15
16
Nonfinancial business
17
Pools of securitized assets 3
522,860
228,615
32,493
17,826
10,313
44,901
188,712
555,858
219,826
38,608
19,552
11,441
44,966
221,465
586,528
210,346
32,309
19,930
12,450
39,166
272,327
566.019
190.216
31,296
18.732
12.641
34.446
278,688
572,463
178,031
32,408
18,856
12,775
34.618
295,775
575,499
175,928
32,846
19,054
13,004
34,830
299,837
580,691
170,272
33,014
19,335
13,233
35,421
309,416
581,437
168,882
30.731
19,489
13,461
34,232
314,642
583,053
167,325
31,453
19,454
13,690
34,681
316,450
18 Nonrevolving
19
Commercial banks
Finance companies
20
21
Credit unions
Savings institutions
22
23
Nonfinancial business
24
Pools of securitized assets 3
688.730
298.154
119,898
126.322
34,398
32,844
77.114
708,245
292,737
121,414
132,810
35,731
33,961
91,592
745,214
298,586
136,182
135,476
39,161
35,711
100,098
765.248
302,636
137,194
139,370
43,341
33,605
109,102
767,951
299,743
141,209
139,321
44,386
33,424
109,868
774,111
301,980
140,528
140,866
45,122
33,405
112,210
783,713
306,289
144,317
143,077
45.858
33,475
110,697
788,745
303,642
142,225
144,566
46,594
33,327
118,391
792,936
304,905
142.706
146,493
47,330
33,467
118,035
5
6
7
8
9
10
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 motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.
1.56
3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF CONSUMER CREDIT 1
Percent per year except as noted
1999
Item
1996
1997
1998
Apr.
May
June
July
Aug.
Sept.
Oct.
INTEREST RATES
Commercial banks2
1 48-month new car
2 24-month personal
9.05
13.54
9.02
13.90
8.72
13.74
n.a.
n.a.
8.30
13.26
n.a.
n.a.
n.a.
n.a.
8.44
13.38
n.a.
n.a.
n.a.
n.a.
Credit card plan
3 All accounts
4 Accounts assessed interest
15.63
15.50
15.77
15.57
15.71
15.59
n.a.
n.a.
15.21
14.94
n.a.
n.a.
n.a.
n.a.
15.08
14.79
n.a.
n.a.
n.a.
n.a.
Auto finance companies
5 New car
6 Used car
9.84
13.53
7.12
13.27
6.30
12.64
6.52
12.17
6.57
12.16
6.60
12.31
6.68 r
12.67 r
6.28
12.96
6.47
13.13
7.07
13.28
51.6
51.4
54.1
51.0
52.1
53.5
52.8
56.0
52.4
56.1
52.3
56.0
52.0
56.1
51.7
55.8
52.1
55.9
53.2
55.8
91
100
92
99
92
99
92
99
92
99
92
99
92
99
92
100
92
100
92
100
16,987
12,182
18,077
12,281
19,083
12,691
19,435
13,647
19,539
13,700
19,722
13,816
19,873
13,609
20,012
13,374
20,154
13,449
20,335
13,613
OTHER TERMS3
Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed
11 New car
12 Used car
(dollars)
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
Flow of Funds
1.57
A37
FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1997
Transaction category or sector
1993
1994
1999
1998
1995
Q4
Ql
Q2
Q3
Q4
QI
l,074.2 r
l,288.1 r
Q2r
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . .
584.4
575.8
721.0 r
745.4 r
787. l r
913.7 r
l,077.3 r
l,044.2 r
By sector and instrument
7 Federal government
Treasury securities
Budget agency securities and mortgages
4
256.1
248.3
7.8
155.8
155.7
.2
144.4
142.9
1.5
145.0
146.6
-1.6
23.1
23.2
-.1
-5.5
-7.3
1.7
-14.5
-12.1
-2.4
-28.4
-26.9
-1.4
-113.5
-113.1
-.4
-54.1
-66.3
12.2
-75.2
-73.7
-1.5
5 Nonfederal
328.3
420.0
576.6 r
600.3 r
764.0r
919.3r
1,091.8r
l,072.6 r
i,oi4.r
l,128.3 r
1,363.3'
998.7
10.0
74.8
75.2
6.4
-18.9
122.4
160.1
-5.1
-33.6
1.0
58.4
21.4
-35.9
23.3
75.2
34.0
177.0
183.4
-2.1
-6.5
2.2
124.9
18.1
-48.2
91.1
103.7
67.2
205.7r
180.4r
7.6
16.2
1.6
138.9
-.9
2.6
116.3
70.5
33.5
289.7r
245.3r
11.5
30.4
2.6
88.8
13.7
71.4
150.5
106.5
69.1
300.2r
237.6r
10.8
48.7
3.2
52.5
12.8
99.9
163.6
178.1
141.4
280.4r
190.6r
18.3
68.6
2.9
43.1
51.1
113.5
278.8
35.0
76.3
478.2 r
378.3r
21.6
74.1
4.1
58.9
3.8
101.3
294.8
169.2
40.8
400.7 r
289. r
21.1
83.8
6.7
62.1
85.6
82.9
108.0
107.8
77.7
472.6 r
375.2r
16.1
75.9
5.5
79.6
-43.0
89.6
193.2
120.9
102.5
595. r
429. l r
30.6
126.8
8.6
69.9
64.4
100.7
274.0
70.0
151,0r
573.9 r
415.r
35.9
119.3
3.6
129.2r
3.4
48.0
287.6
22.2
-16.7
594.1
422.9
34.7
127.5
9.0
60.1
209.4
52.7
46.9
3.2
2.6
66.2
316.3
150.0
142.3
3.3
4.4
-46.2
350.9r
277.2
243.7
30.6
2.9
-51.5
354.0r
253.2
164.6
83.8
4.8
-6.8
327.3r
380.6
297.0
77.4
6.2
56.1
312.8r
520.3
425.0
86.6
8.6
86.2
465. r
532.5
426.9
97.1
8.4
94.2
420.3r
570.3
467.4
95.4
7.5
82.0
473.4r
470.7
365.8
97.6
7.3
70.0
528.6r
524.6
413.7
103.3
7.5
75.1
556.4r
719.5r
611.2 r
101.6
6.6
87.4
517.1
445.9
332.6
114.2
-.9
35.7
Bank loans n.e.c
Other loans and advances
69.8
-9.6
82.9
.7
-4.2
-13.9
-26.1
12.2
1.4
-1.4
71.1
13.5
49.7
8.5
-.5
77.2
11.3
55.8
9.1
1.0
57.6
3.7
47.2
8.5
-1.8
44.8
.7
34.2
15.7
-5.8
95.0
55.3
42.5
5.2
-8.0
97.9
-25.5
119.2
8.4
-4.2
-19.6
6.2
-27.2
3.6
-2.2
-38.9
-4.7
-34.2
9.8
-9.7
17.3
18.3
.9
.9
-2.8
-36.4
-27.1
-12.6
5.6
-2.3
28 Total domestic plus foreign
654.2
561.9
792.1 r
822.6 r
844.7 r
958.5 r
l,172.3 r
l,142.1 r
6
7
8
9
in
11
1?
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Multifamily residential
Commercial
Consumer credit
By borrowing sector
17
18
19
20
•>1
22
Nonfinancial business
Corporate
Nonfarm noncorporate
State and local government
23 Foreign net borrowing in United States
Commercial paper
74
76
27
900.6 r
886.6
-112.2
-112.8
.6
881.0 r
l,035.3 r
l,305.4 r
850.1
Financial sectors
29 Total net borrowing by financial sectors
294.4
468.4
453.9
548.9
652.2
961.6 r
931.3
988.9
1,056.3
1,298.7
l,214.2 r
1,042.9
By instrument
30 Federal government-related
31
Government-sponsored enterprise securities
32
Mortgage pool securities
33
Loans from U.S. government
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
114.5
.0
290.9
157.9
133.0
.0
249.2
142.5
106.7
.0
405.4
166.4
239.0
.0
555.8
294.0
261.7
.0
673.3
510.5
162.8
.0
592.2r
193.0
399.2r
.0
579.1
304.7
274.4
.0
129.1
-5.5
123.1
-14.4
22.4
3.6
180.9
40.5
121.8
-13.7
22.6
9.8
249.8
42.7
195.9
2.5
3.4
5.3
317.5
92.2
176.9
12.6
27.9
7.9
439.4
166.7
209.0
13.2
35.6
14.9
670.7
244.7
348.8
-4.7
61.7
20.1
682.1
236.7
346.3
57.3
32.7
9.1
583.5
135.6
361.8
-9.7
76.0
19.9
500.5
141.0
177.4
60.2
82.3
39.6
625.4
130.7
281.9
12.4
169.9
30.6
622.0r
78.3
490.8 r
-8.8
41.6
20.1
463.8
57.8
289.8
10.5
117.9
-12.3
13.4
11.3
.2
.2
80.6
84.7
85.4
-1.4
.0
1.7
12.0
6.3
20.1
12.8
.2
.3
172.1
115.4
76.5
48.7
-11.5
10.2
.5
23.1
22.5
2.6
-.1
-.1
105.9
98.2
142.4
50.2
-2.2
4.5
-5.0
34.9
13.0
25.5
.1
1.1
90.4
141.1
153.9
45.9
4.1
11.9
-2.0
64.1
46.1
19.7
.1
.2
98.4
114.5
200.7
48.7
-4.6
39.6
8.1
80.7
61.4
41.7
.3
-.3
157.9
133.0
374.8
70.7
-46.8
66.0
7.0
95.9
82.8
10.6
.5
.0
142.5
106.7
283.0
74.6
29.4
63.1
-1.0
139.2
80.8
31.2
61.7
63.7
1.0
1.6
294.0
261.7
294.2
-12.0
2.3
79.3
-2.6
11.2
66.3
103.2
.4
1.8
510.5
162.8
335.7
17.8
3.0
44.0
12.4
40.9
31.1
58.0
1.5
3.3
193.0
399.2r
300.5r
71.2
-4.6
25.6
-31.1
166.5
72.7
58.6
1.4
3.0
304.7
274.4
335.8
88.4
5.1
-19.7
-17.4
-63.8
34
35
36
37
38
39
40
41
47
43
44
45
46
47
48
49
50
51
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
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
-.6
166.4
239.0
352.4
91.9
-28.2
64.4
20.0
-28.6
A38
DomesticNonfinancialStatistics • February 2000
1.57
FUNDS RAISED IN U.S. CREDIT MARKETS 1 —Continued
1997
Transaction category or sector
1995
1996
1998
1999
1997
Q4
Ql
Q2
Q3
Q4
Ql
Q2r
All sectors
52 Total net borrowing, all sectors
948.6
1,030.3
l,246.0 r
l,371.5 r
l,496.9 r
l,920.1 r
2,103.6 r
2,131.0 r
l,937.3 r
2,334.0 r
2,519.6 r
1,893.0
53
54
55
56
57
58
59
60
-5.1
421.4
74.8
281.2
-7.2
-.8
126.0
58.4
35.7
448.1
-35.9
157.3
62.9
50.4
186.8
124.9
74.3
348.5
-48.2
336.7
114.7
70.1
211.0r
138.9
102.6
376.5
2.6
348.9
92.1
62.5
297.6r
88.8
184.1
235.9
71.4
406.7
128.2
102.8
315.l r
52.5
258.2
285.3
99.9
546.5
189.2
197.4
300.5r
43.1
343.0
234.7
113.5
667.6
97.6
101.0
487.3 r
58.9
113.8
377.1
101.3
775.8
167.9
112.5
420.5 r
62.1
232.7
442.3
82.9
258.2
171.6
157.8
512.2r
79.6
83.0
619.1
89.6
440.9
143.0
262.7
625.7r
69.9
161.1
517.0 r
100.7
765.7 r
62.1
189.8r
594.0r
129.2r
34.1
467.0
48.0
564.8
38.3
98.9
581.8
60.1
—9.8r
121.3 r
113.2
r
r
-94.9
-374.0
270.9
8.2
208.2
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
Funds raised through mutual funds and corporate equities
61 Total net issues
425.0 r
113.4 r
131.5 r
209.1 r
165.6 r
116.8 r
215.2 r
262.0 r
— 166.7 r
62 Corporate equities
63
Nonfinancial corporations
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares
133.0r
21.3
63.4
48.3r
292.0
12.8r
-44.9
48.1
9.6r
100.6
-16.0r
-58.3
50.4
-8.1r
147.4
—28.5r
-69.5
60.0
- 19.0r
237.6
-99.6 r
-114.4
42.0
—27. l r
265.1
-144.1 r
-143.3
1.7
—2.5r
260.9
-107.1 r
-139.2
14.0
18.l r
322.3
-115.8 r
-129.1
12.3 r
-340.1 r
-308.4
-32.8
l.C
173.4
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.
1.0
377.8
-234.6
-491.3
317.4
—60.8r
224.8
- 132.0
-65.7
-33.4
—32.9r
253.3r
Flow of Funds
1.58
A3 9
SUMMARY OF FINANCIAL TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
Transaction category or sector
1993
1994
1996
1995
1999r
1998
1997
1997
Q4
Ql
Q2
Q3
Q4
Ql
Q2
NET LENDING IN CREDIT MARKETS^
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 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
948.6
1,030.3
l,246.0 r
l,371.5 r
l,496.9 r
l,920.1 r
2,103.6 r
2,131.0 r
l,937.3 r
2,334.0 r
2,519.6
1,893.0
30.0
-10.6
9.1
-1.1
32.6
-18.4
129.3
807.8
36.2
142.2
149.6
-9.8
.0
2.4
-23.3
21.7
9.5
100.4
27.7
50.2
24.7
20.4
159.5
20.0
87.8
84.7
82.8
-20.9
.0
.4
14.8
-31.0
231.2
268.0
17.7
.6
-55.0
-27.4
132.3
694.1
31.5
163.4
148.1
11.2
.9
3.3
6.7
28.1
7.1
72.0
24.9
46.1
30.9
30.0
-7.1
-3.7
117.8
115.4
69.4
48.3
-24.0
-.7
-44.2
-17.8
- 89.4 r
6.1 r
-8.8
4.7
-91.4
-.2
273.9
1,061.7
12.7
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
-8.3
100.0
21.5
56.0
33.6
86.5
52.5
10.5
86.7
98.2
120.6
49.9
-3.4
1.4
90.1
-21.2
24.8 r
63.7 r
-.8
-4.3
-33.7
-7.4
414.4
939.7
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
69.6
22.5
52.3
37.3
88.8
48.9
4.7
84.2
141.1
123.6
18.4
8.2
4.4
-15.7
14.0
-67.9r
-65.2r
-2.3
-.6
.1
5.1
310.7
l,249.0 r
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
—25.0r
104.8r
25.2
65.5
63.8
87.5
80.9
-2.9
94.3
114.5
162.3
21.9
-9.1
20.2
14.9
55.6 r
36.0 r
-4.6r
-13.0
-.6
54.2
9.2
203.9
l,670.9 r
54.3
447.4
357.6
69.3
19.4
1.1
8.9
6.5
—25.2r
76.2 r
36.3 r
79.5
42.7
141.8
64.8
-2.9
158.1
133.0
321.9
-19.7
-93.6
38.9
71.7
130.4'
-39.5r
—54.0r
8.4
.0
6.1
15.7
223.8
l,903.6 r
27.6
306.7
268.4
17.5
15.3
5.5
11.8
16.1
—10.5r
23.4
74.5
67.4
159.3
156.4
4.5
198.3
106.7
223.9
28.7
58.8
25.6
245.8
86.0 r
521.8 r
395.4 r
—47.9r
.0
174.3
12.9
321.8
l,274.6 r
11.5
132.7
130.0
15.2
-17.6
5.1
2.1
22.7
- U.3 r
63.4
-1.5
130.1
78.4
208.1
146.4
4.5
150.6
239.0
321.4
24.0
-56.4
6.1
-183.1
- 14.3r
m.r
-28.3r
13.7r
.0
125.7
13.8
60.8
1,751.5 r
41.6
250.1
309.2
-68.1
6.0
2.9
17.9
21.0
- 16.0r
65.6
-7.7
95.6
65.6
255.5
92.9
4.5
264.7
261.7
248.7
79.5
4.5
-11.3
77.0
-6o.r
— 300.4 r
—425.5r
33.3 r
.0
91.7
11.7
390.7
2,232. l r
3.5
531.5
540.2
-12.1
-7.4
10.7
113.3
16.0
—13.5r
86.0
67.6 r
174.4
48.5
353.1
103.5
4.5
429.5
162.8
312.7
75.3
6.0
-40.8
-209.1
310.0
261.1
-3.6
.4
52.2
17.1
250.2
1,942.2
71.8
68.9
134.1
-54.9
-6.0
-4.4
102.7
34.7
-7.6
82.2
-19.7
60.5
77.2
227.6
103.0
4.4
157.2
399.2
282.9
92.2
-9.1
1.7
184.5
27.9
346.5
288.9
4.5
-.2
53.3
6.7
35.1
1,504.8
62.4
135.4
231.5
-105.7
.4
9.2
88.8
32.1
-8.4
84.0
26.7
150.0
40.7
-92.6
121.0
4.4
259.2
274.4
319.0
79.6
10.2
-2.2
-191.0
111.0
948.6
1,030.3
l,246.0 r
l,371.5 r
l,496.9 r
l,920.1 r
2,103.6 r
2,131.0 r
l,937.3 r
2,334.0 r
2,519.6
1,893.0
8.8
2.2
.6
35.3
10.0
-12.7
96.6
65.6
142.3
110.5
147.4
128.9r
26.7
45.8
235.1
6.2
4.0
65.2 r
444.6
-6.3
-.5
.1
85.9
-51.6
15.8
97.2
114.0
145.8
41.4
-28.5r
237.6
114.8r
52.4
44.5
246.9
16.0
-8.6
3.4r
498.3
.7
-.5
.0
106.8
-19.7
41.5
97.1
122.5
157.6
120.9
-99.6r
265.1
125.9r
111.0
59.3 r
304.0
16.8
—56.3r
11.l r
516.2 r
17.5
.0
-1.9
100.6
54.3
72.1
136.7
59.2
149.9
103.3
-144.1r
260.9
152.5r
128.0
57.4r
304.1
3.9
—56.5r
—40.1r
226.4 r
1.0
.0
.3
-46.5
-95.2
52.6
99.0
187.8
213.6
250.3
-107.1r
322.3
138.6 r
159.3
49,3
294.7
12.2
—45.7r
-8.6r
l,069.4 r
8.1
.0
.2
92.9
40. l r
90.1
84.9
-5.6
247.2
-100.8
— 115.8r
377.8
8.9
.0
1.7
84.9
43.9 r
-24.9
144.7
81.8
367.9
231.1
-340.1r
173.4
63.8 r
167.0
51.7
279.5
-14.0
-4.0
.0
127.7
48.5
61.1
-68.0
-5.9
204.9
408.2
-132.0
253.3
175.1
-86.9
40.8
285.7
-8.2
-32.0
14.1
216.5
-5.4
.0
2.1
99.3
90.2
10.1
100.0
42.6
100.5
-14.5
-94.9
208.2
235.6
134.1
59.6
324.4
39.5
-25.9
22.1
1,114.3
92.5'
1.2'
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
Officii 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
.8
.0
.4
-18.5
50.5
117.3
-70.3
-23.5
20.2
71.3
133.0r
292.0
76.8 r
61.4
37.1
268.0
11.4
.9
28.3 r
356.0
-5.8
.0
.7
52.9
89.8
-9.7
-39.9
19.6
43.3
78.2
12.8r
100.6
120.0r
-.1
35.5
254.7
2.6
17.8
58.2'
245.6
731.2 r
8.6
.0
-2.3
-131.9
— 122.8r
72.8
281.2
104.4
313.1
-170.3
-234.61
224.8
-48.3r
-27.2
59.0
313.8
8.8r
—48.8r
19.4r
580.7 r
2,361.7 r
2,107.1 r
2,793.1 r
2,990.3 r
3,377.4 r
3,504.2 r
4,650.8 r
3,519.8 r
3,919.2 r
3,534.2 r
4,004.6
4,334.9
-.2
-5.7
4.2
50.5
15.6r
-129.8r
-.2
43.0
-2.7
67.7
16.6
— 128.0r
-.5
25.1
-3.1
20.2
21.1
-188.5'
-.9
59.6
-3.3
4.5
22.8 r
-37.6r
-.6
106.8
-19.9
62.3
26.8 r
~225.9 r
-2.4
145.5
-38.1
185.1
19.8r
—563.7r
-.2
-95.7
35.1
120.8
14.2r
125.lr
-.3
149.9r
8.9
-170.0
9.1 r
—245.6r
1.1
69.9
22.3
110.2
r
28.2r
-81.
l
-3.4
-156.5
-52.8
,0r
19.6r
78.6 r
-1.5
62.7
58.7
364.1
-15.6
-489.5
.6
84.4
-1.7
80.0
2.5
-550.9
— I6.(f
134.3
53.3
272.9
1.8r
—46.5r
-13.9r
295.6 r
27.5'
-51.2'
-60.9'
-1.5
-1.3
20.6 r
-4.8
-2.8
27.4 r
-6.0
-3.8
15.6r
.5
-4.0
—21.2r
-2.7
-3.9
33.2 r
-10.0
-5.0
45.5 r
8.3
-4.0
72.2 r
-44.4
-2.9
— 110.5r
32.4
-3.6
-64.4r
-21.l r
-1.8
-1.9
67.1
-41.4
-1.0
-20.7
2,409.2 r
2,090.9 r
2,913.1 r
2,970.0 r
3,401.3 r
3,727.5 r
4,375.1 r
3,925.7 r
3,804.2 r
3,657.5 r
3,962.4
4,783.1
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.l and F.5. For ordering address, see inside front cover.
—27.9'
2. Excludes corporate equities and mutual fund shares.
14.0
-1.8
A40
1.59
Domestic Financial Statistics • February 2000
S U M M A R Y OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
1997
I9y4
1998
1999
1997
Q4
Q2
Qi
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
13,013.9
13,734.3
14,477.4
15,261.1
15,261.1
15,522.2
15,742.1
15,956.2
16,283.6
16,588.0
16,758.7
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
26.5
3,804.9
3,778.3
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
3,752.2
3,723.7
28.5
3,759.7
3,731.6
28.1
3,651.7
3,623.4
28.3
5 Nonfederal
9,521.6
10,097.6
10,695.6
11,456.3
11,456.3
11,691.4
11,993.2
12,236.0
12,531.4
12,828.3
13,107.0
6
/
8
y
10
n
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
4,374.2
3,330.0
261.5
699.8
83.0
983.9
157.4
1,293.5
1,344.1
863.6
736.9
4,579.4
3,509.8
269.1
716.0
84.6
1,122.8
156.4
1,296.0
1,460.4
934.1
770.4
4,866.8
3,719.0
284.3
776.4
87.1
1,211.6
168.6
1,367.5
1,610.9
1,040.5
839.5
5,165.2
3,954.8
295.0
825.1
90.3
1,264.1
168.6
1,367.5
1,610.9
1,040.5
839.5
5,165.2
3,954.8
295.0
825.1
90.3
1,264.1
193.1
1,397.1
1,680.6
1,047.9
863.5
5,273.3
4,037.9
300.4
843.6
91.3
1,236.0
202.5
1,429.3
1,754.3
1,097.6
873.1
5,379.7
4,116.4
305.7
864.6
93.0
1,256.8
216.9
1.439.9
1,781.3
1,120.6
886.8
5,504.0
4,216.4
309.7
883.6
94.4
1,286.6
193.0
1,464.3
1,829.6
1,148.8
913.8
5,650.3
4,321.1
317.4
915.3
96.5
1,331.7
223.9
1,491.0
1,898.1
1,165.2
947.5
5,784.1
4,413.8
326.6
946.3
97.4
1,318.6
232.4
1,510.0
1,963.3
1,178.4
945.8
5,939.2
4,526.0
335.8
977.7
99.7
1,338.0
1/
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
4,427.0
3,972.9
2,708.9
1,121.8
142.2
1,121.7
4,782.2
4,245.2
2,947.7
1,152.4
145.1
1,070.2
5,105.1
4,527.1
3,141.0
1,236.1
149.9
1,063.4
5,433.3
4,903.5
3,433.8
1,313.6
156.1
1,119.5
5,433.3
4,903.5
3,433.8
1,313.6
156.1
1,119.5
5,494.5
5,052.6
3,559.4
1,337.9
155.3
1,144.3
5,613.2
5,209.2
3,686.4
1,361.8
161.0
1,170.8
5,746.1
5,311.1
3,762.5
1,385.5
163.1
1,178.8
5,903.6
5,428.0
3,852.2
1,411.9
163.8
1,199.8
5,985.9
5,619.2
4,019.2
1,437.6
162.4
1,223.2
6,128.1
5,740.7
4,107.9
1,466.7
166.2
1,238.2
23 Foreign credit market debt held in
United States
370.3
441.4
518.7
570.1
570.1
591.6
617.1
612.8
603.7
607.8
596.5
24 Commercial paper
25
26 Bank loans n.e.c
27 Other loans and advances
42.7
242.3
26.1
59.3
56.2
291.9
34.6
58.8
67.5
347.7
43.7
59.8
65.1
394.9
52.1
58.0
65.1
394.9
52.1
58.0
76.7
405.6
53.4
55.9
71.4
435.4
55.5
54.8
74.0
428.6
56.4
53.8
72.9
420.0
58.9
52.0
77.2
420.2
59.1
51.3
70.1
415.4
60.5
50.4
13,384.2
14,175.8
14,996.0
15,831.2
15,831.2
16,113.8
16,359.2
16,568.9
16,887.3
17,195.8
17,355.2
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
29 Total credit market debt owed by
financial sectors
3,822.2
4,278.8
4,827.7
5,446.8
5,446.8
5,670.1
5,926.8
6,195.5
6,515.6
6,809.7
7,073.6
30
31
32
33
34
3b
36
3/
38
39
By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
2,172.7
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
1,901.9
486.9
1,204.7
51.4
135.0
24.1
2,608.3
896.9
1,711.4
.0
2,219.4
579.1
1,381.5
64.0
162.9
31.9
2,821.1
995.3
1,825.8
.0
2,625.7
745.7
1,557.5
77.2
198.5
46.8
2,821.1
995.3
1,825.8
.0
2,625.7
745.7
1,557.5
77.2
198.5
46.8
2,878.0
1,030.9
1,847.1
.0
2,792.1
804.9
1,640.8
90.6
206.6
49.1
2,981.4
1,072.5
1,908.9
.0
2,945.4
838.9
1,738.7
88.2
225.6
54.1
3,121.7
1,146.0
1,975.7
.0
3,073.8
874.2
1,786.2
103.2
246.2
64.0
3,292.0
1,273.6
2,018.4
.0
3,223.6
906.7
1,849.4
107.2
288.7
71.6
3,434.1
1,321.8
2,112.3
.0
3,375.6
926.4
1,969.3
104.1
299.1
76.6
3,580.8
1,398.0
2,182.8
.0
3,492.7
940.9
2,042.9
106.8
328.6
73.6
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
94.5
133.6
112.4
.5
.6
700.6
1,472.1
570.1
34.3
433.7
18.7
40.0
211.0
102.6
148.0
115.0
.4
.5
806.5
1,570.3
712.5
29.3
483.9
16.5
44.6
248.6
113.6
150.0
140.5
.4
1.6
896.9
1,711.4
866.4
27.3
529.8
20.6
56.5
312.7
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,078.2
35.3
554.5
16.0
96.1
373.7
140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,078.2
35.3
554.5
16.0
96.1
373.7
148.7
181.2
162.9
.7
1.8
1,030.9
1,847.1
1,142.9
35.1
571.9
23.4
111.9
411.6
159.6
190.5
170.7
.8
1.6
1,072.5
1,908.9
1,230.4
40.1
596.9
16.3
128.0
410.5
169.6
196.1
186.6
1.0
2.0
1,146.0
1,975.7
1,307.0
39.4
589.4
16.9
147.8
417.9
188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,394.6
42.5
597.5
17.7
158.8
414.4
187.5
202.6
226.9
1.5
3.3
1,321.8
2,112.3
1,463.8
34.8
614.4
16.5
165.2
459.1
202.7
202.7
241.6
1.8
4.0
1,398.0
2,182.8
1,542.9
30.2
639.2
17.8
160.3
449.6
21,783.9
22,286.0
22,764.5
23,402.9
24,005.5
24,428.7
1,074.8
6,708.7
1,397.1
3,727.0
1,191.9
1,126.1
5,322.4
1,236.0
1,112.7
6,730.3
1,429.3
3,928.3
1,241.3
1,153.6
5,433.7
1,256.8
1,165.1
6,841.9
1,439.9
3,996.0
1,280.3
1,186.8
5,568.0
1,286.6
1,172.6
7,044.3
1,464.3
4,098.9
1,314.9
1,254.4
5,721.9
1,331.7
1,227.6
7,193.8
1,491.0
4,287.6
1,328.3
1,297.8
5,860.7
1,318.6
1,243.3
7,232.5
1,510.0
4,421.6
1,345.6
1,324.8
6,012.7
1,338.0
All sectors
53 Total credit market debt, domestic and foreign . . .
54
55
56
57
58
59
60
61
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
17,206.4
18,454.5
19,823.7
21,278.1
21,278.1
623.5
5,665.0
1,341.7
2,504.0
834.9
860.5
4,393.0
983.9
700.4
6,013.6
1,293.5
2,840.7
949.6
930.6
4,603.4
1,122.8
803.0
6,390.0
1,296.0
3,189.6
1,041.7
993.1
4,898.7
1,211.6
979.4
6,626.0
1,367.5
3,563.3
1,169.8
1,095.9
5,212.0
1,264.1
979.4
6,626.0
1,367.5
3,563.3
1,169.8
1,095.9
5,212.0
1,264.1
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.
Flow of Funds
1.60
A41
S U M M A R Y OF FINANCIAL ASSETS A N D LIABILITIES 1
Billions of dollars except as noted, end of period
1994
1995
1996
1999r
1998
1997
Transaction category or sector
1997
Q4
QL
Q2
Q3
Q4
QL
Q2
CREDIT MARKET DEBT OUTSTANDING2
? Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
4
Nonfarm noncorporate business
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
10
Monetary authority
Commercial banking
11
U.S.-chartered banks
12
13
Foreign banking offices in United States
Bank holding companies
14
Banks in U.S.-affiliated areas
N
16
Savings institutions
17
Credit unions
18
Bank personal trusts and estates
19
Life insurance companies
20
Other insurance companies
?L
Private pension funds
State and local government retirement funds
??.
Money market mutual funds
Mutual funds
?4
?5
Closed-end funds
Government-sponsored enterprises
26
Federally related mortgage pools
71
Asset-backed securities issuers (ABSs)
78
Finance companies
29
30
Mortgage companies
31
Real estate investment trusts (REITs)
3?
Brokers and dealers
Funding corporations
33
17,206.4
18,455.1 r
19,826.6 r
21,282.8 r
21,282.8 r
21,789.0 r
22,291.6 r
22,770.5 r
23,409.3 r
24,021.3
24,458.8
2,988.8
1,932.1
289.2
37.6
729.9
202.9
1,216.0
12,798.8
368.2
3,254.3
2,869.6
337.1
18.4
29.2
920.8
246.8
248.0
1,487.5
446.4
660.9
497.4
459.0
718.8
86.0
663.3
1,472.1
532.8
476.2
36.5
24.6
93.3
106.0
2,857.4 r
1,896.LR
280.4
42.3
638.6
202.7
1,531.1
13,863.9
380.8
3,520.1
3,056.1
412.6
18.0
33.4
913.3
263.0
239.7
1,587.5
468.7
716.9
531.0
545.5
771.3
96.4
750.0
1,570.3
653.4
526.2
33.0
26.0
183.4
87.4
2,927.5 r
2,014.5 r
270.2
38.0
604.8
195.3
1,926.6
14,777.2
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
232.0
1,657.0
491.2
769.2
568.2
634.3
820.2
101.1
807.9
1,711.4
777.0
544.5
41.2
30.4
167.7
101.4
2,815.9 r
l,905.6 r
268.0
37.4
605.0
200.4
2,256.8
16,009.8 r
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
207.0 r
l,751.1 r
515.3
834.7
632.0
721.9
901.1
98.3
902.2
1,825.8
939.3
566.4
32.1
50.6
182.6
152.3r
2,815.9 r
l,905.6 r
268.0
37.4
605.0
200.4
2,256.8
16,009.8 r
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
207.0 r
l,751.1 r
515.3
834.7
632.0
721.9
901.1
98.3
902.2
1,825.8
939.3
566.4
32.1
50.6
182.6
152.3r
2,798.2 r
l,905.2 r
249.6
37.4
606.0
204.3
2,317.1
16,469.4 r
433.8
4,093.4
3,505.1
517.9
31.2
39.2
931.3
306.7
204.3 r
1,777.3
521.1
853.4
648.9
775.0
940.0
99.4
951.4
1,847.1
989.2
572.0
46.8
57.0
244.0
177.5r
2,886.3 r
l,958.8 r
238.5 r
37.4
651.6
207.5
2,396.0
16,801.8 r
440.3
4,136.4
3,543.6
525.6
26.8
40.4
930.8
315.1
201.5 r
1,793.2
520.8
885.9
668.5
815.9
979.1
100.5
989.4
1,908.9
1,068.9
579.0
32.7
58.5
198.3
178.3 r
2,919.9 r
1,957.LR
244.4 r
37.4
681.1
210.9
2,412.2
17,227.5 r
446.5
4,195.7
3,616.2
510.1
28.3
41.1
939.3
320.5
197.5 r
1,810.6
518.8 r
909.8
684.9
869.9
1,005.9
101.7
1,055.4
1,975.7
1,134.2
592.7
33.8
55.7
217.5
161.6 r
2,860.8 r
l,849.2 r
269.8 r
37.4
704.4
213.9
2,534.3
17,800.2 r
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.8
324.2
194.1 r
1,828.0
535.7
953.4
697.0
965.9
1,025.9
102.8
1,163.0
2,018.4
1,216.0
618.4
35.3
45.5
165.2
158.5 r
2,926.3
1,924.7
247.0
37.5
717.1
218.2
2,601.0
18,275.9
466.0
4,338.4
3,782.9
487.8
25.0
42.7
990.8
330.2
192.2
1,853.7
530.8
968.5
716.3
1,036.2
1,050.8
103.9
1,201.9
2,112.3
1,280.4
639.9
33.0
45.9
211.4
173.3
2,966.3
1,947.1
249.2
37.7
732.3
219.8
2,608.4
18,664.2
485.1
4,383.4
3,847.6
465.7
25.1
45.0
1,011.4
341.0
190.1
1,874.7
537.5
1,006.0
726.5
1,001.8
1,084.0
105.0
1,267.0
2,182.8
1,359.7
660.9
35.6
45.3
163.6
202.7
17,206.4
18,455.1 r
19,826.6 r
21,282.8 r
21,282.8 r
21,789.0 r
22,291.6 r
22,770.5 r
23,409.3 r
24,021.3
24,458.8
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
520.3
4,948.1
1,569. l r
101.4
699.4
5,287.2
63.7
10.2
18.2
418.8
290.7
1,229.3
2,279.7
476.9
745.3
660.0
1,852.8
305.7
566.2
5,767.8
l,698.0 r
107.6
803.0
5,634.7
53.7
9.7
18.3
516.1
240.8
1,245.1
2,377.0
590.9
891.1
701.5
2,342.4
358.1
610.6
6,642.5
L,812.8 r
123.6
871.7
6,098.8
48.9
9.2
18.3
618.8
219.4
1,286.6
2,474.1
713.4
1,048.7
822.4
2,989.4
469.1
665.0
7,894.4
l,938.6 r
140.4
942.5 r
6,666.5 r
48.9
9.2
18.3
618.8
219.4
1,286.6
2,474.1
713.4
1,048.7
822.4
2,989.4
469.1
665.0
7,894.4
l,938.6 r
140.4
942.5 r
6,666.5 r
48.2
9.2
18.4
607.2
179.6
1,259.2
2,525.4
760.9
1,J30.7
889.3
3,339.3
505.3
677.3
8,583.1
l,940.8 r
151.7
l,002.7 r
6,741.0 r
50.1
9.2
18.4
630.4
189.2r
1,320.7
2,531.0
754.0
1,153.7
861.5
3,438.4
540.6
690.6
8,730.8
l,933.9 r
144.6 r
999.8 r
6,791.2 r
54.5
9.2
18.8
651.7
198.7
1,282.3
2,553.8
776.5
1,249.7
918.9
3,137.3
579.0
703.5
8,194.6
l,954.5 r
155.0 r
908.6 r
7,013.LR
60.1
9.2
18.3
639.9
187.7
1,334.2
2,626.5
805.5
1,334.2
875.0
3,610.5
577.4
718.3
9,160.7
l,970.2 r
152.9 r
l,001.0 r
7,053.7 r
53.6
8.2
18.3
671.8
180.4
1,311.4
2,637.6
804.3
1,416.0
980.3
3,758.4
552.7
730.9
9,258.8
1,981.2
159.7
1,012.5
7,074.2
50.9
8.2
18.8
696.6
201.7
1,354.1
2,644.6
809.0
1,398.1
974.2
4,049.4
587.9
745.8
9,711.7
2,039.6
161.5
1,059.8
7,158.2
37,810.1 r
1 Total credit market assets
41,383.6 r
45,331.1 r
50,248.3 r
50,248.3 r
52,158.3 r
53,079.8 r
53,130.2 r
55,544.5 r
56,631.7
58,128.9
21.1
6,333.3 r
3,404.9 r
22.1
8,495.7 r
3,640.4 r
21.4
10,255.8 r
3,833.3 r
21.1
13,181.4 r
4,171.8 r
21.1
13,181 -4r
4,17I.8 r
21.2
14,842. LR
4,213.6 r
21.0
14,987.0 r
4,284.7 r
21.2
13,121.2 r
4,331.3 r
21.6
15,413.4 r
4,395.3 r
20.7
15,893.6
4,405.1
20.8
17,018.0
4,489.9
-5.4
325.4
-6.5
66.2
48.8
-641.61
-5.8
360.2
-9.0
86.4
62.4
—1,011.4r
-6.7
431.4
-10.6
90.9
76.7
-1,339.6r
-7.3
534.0
-32.2
153.1
93.5
-1,668.9r
-7.3
534.0
-32.2
153.1
93.5
—1,668.9 r
-7.4
510.1
-21.2
187.4
89.6
-1,868.2r
-7.4
547.6 r
-17.1
140.9
95.8 r
—1,929.2 r
-7.2
565. l r
-15.4
175.2
102.2 r
—2,015.4 r
-8.0
547.2 r
-27.0
168.4
103.5r
—2,319.9 r
-8.4
562.8
-11.3
263.5
90.7
-2,436.0
-8.2
583.9
-10.6
279.8
111.3
-2,588.2
3.4
38.0
182.6 r
3.1
34.2
198.2r
-1.6
30.1
176.7 r
-8.1
26.2
199.5r
-8.1
26.2
199.5r
-10.4
21.4
163.5 r
-16.1
24.2
119.4 r
-12.0
15.7
99. l r
-3.9
23.1
168.0 r
-7.2
18.9
129.2
-12.4
22.1
108.7
47,558.3""
53,823.6 r
59,994.4 r
68,332.7 r
68,332.7 r
72,170.3 r
73,414.4 r
71,696.7 r
76,723.3 r
78,348.9
81,171.0
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Total credit market debt
35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Mutual fund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade payables
Taxes payable
Investment in bank personal trusts
Miscellaneous
53
Financial assets not included in liabilities ( + )
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
57
58
59
60
61
62
Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
Floats not included in assets (—)
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Total identified to sectors as assets
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.l 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 2000
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
Monthly data seasonally adjusted, and indexes 1992=100, except as noted
1999
Measure
1996
1998
1997
Mar.
Apr.
May
June
July
Aug. r
Sept.r
Oct/
Nov. p
1 Industrial production 1
119.4
127.1
132.4
135.1
135.5
136.2
136.6
137.4
137.7
138.0
139.1
139.5
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
114.2
115.3
112.4
120.4
110.8
127.8
119.6
121.1
115.1
132.1
115.3
139.0
123.7
125.4
116.2
142.7
118.8
146.5
126.0
127.3
116.7
145.9
121.6
150.3
126.2
127.6
116.5
147.0
121.7
150.8
126.8
128.2
116.8
148.4
122.3
151.7
126.8
128.3
117.0
148.3
121.7
153.1
126.9
128.6
116.8
149.3
121.5
155.0
127.6
129.5
117.6
150.5
121.7
154.6
127.5
129.0
116.9
150.3
122.6
155.6
128.8
130.6
118.8
151.3
123.4
156.3
129.0
130.8
118.9
151.7
123.4
157.3
121.3
130.1
136.4
139.7
140.2
141.0
141.4
142.0
142.5
142.9
144.0
144.6
81.5
82.4
80.9
79.6
79.5
79.7
79.6
79.7
79.7
79.7
80.0
80.1
10 Construction contracts3
130.9r
143.3
157.5
167.0r
173.01
176.0 r
179.0 r
175.0 r
161.0
167.0
168.0
162.0
11 Nonagricultural employment, total4
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
Service-producing
15
16 Personal income, total
17
Wages and salary disbursements
18
Manufacturing
19
Disposable personal income 5
20 Retail sales 5
117.3
2.4
97.4
98.6
123.1
165.2
159.7
135.6
164.1
162.5
120.3
2.4
98.2
99.6
126.5
175.4
171.3
144.6
172.9
170.1
123.4
2.3
98.5
99.6
130.1
185.7
184.4
152.4
181.7
178.5
125.4
102.5
97.4
98.2
132.7
193.2
193.2
154.4
188.8
189.8
125.7
102.5
97.2
98.0
133.1
194.1
194.3
155.1
189.7
190.9
125.7
102.1
97.0
97.8
133.2
194.9
195.2
155.9
190.3
192.8
126.0
102.1
96.8
97.5
133.6
196.4
196.3
156.8
191.8
192.6
126.3
102.3
97.1
98.0
134.0
197.0
197.8
158.2
192.1
194.5
126.5
101.9
96.7
97.4
134.3
197.9
198.6
158.0
193.4
197.1
126.6
102.1
96.7
97.4
134.4
198.1
199.5
158.6
193.0
197.1
126.8
102.1
96.6
97.4
134.7
200.6
200.7
159.5
195.8
197.8
127.1
102.3
96.6
97.4
135.0
201.5
201.3
158.3
196.6
199.5
Prices6
21 Consumer ( 1 9 8 2 - 8 4 = 1 0 0 )
22 Producer finished goods (1982=100)
156.9
131.3
160.5
131.8
163.0
130.7
165.0
131.1
166.2
131.9
166.2
132.4
166.2
132.7
166.7
132.9
167.1
133.7
167.9
134.8
168.2
135.0
168.3
135.0
2
3
4
5
6
7
Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing (percent) 2 . .
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83
(February 1997), pp. 67-92, and the references cited therein. For details about the construction of individual industrial production series, see "Industrial Production: 1989 Developments
and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources.
2.11
3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted
1999
Category
1996
1997
1998
Apr.
May
June
July
Aug.
Sept.1
Oct.r
Nov.
1
HOUSEHOLD SURVEY DATA
1 Civilian labor force 2
Employment
2
Nonagricultural industries3
3
Agriculture
Unemployment
4
Number
5
Rate (percent of civilian labor force)
133,943
136,297
137,673
139,091
139,019
139,408
139,254
139,264
139,386
139,662
139,827
123,264
3,443
126,159
3,399
128,085
3,378
129,685
3,384
129,929
3,295
130,078
3,354
130,015
3,292
130,192
3,219
130,413
3,137
130,693
3,203
130,781
3,304
7,236
5.4
6,739
4.9
6,210
4.5
6,022
4.3
5,795
4.2
5,975
4.3
5,947
4.3
5,853
4.2
5,836
4.2
5,766
4.1
5,743
4.1
119,608
122,690
125,833
128,134
128,162
128,443
128,816
128,945
129,048
129,311
129,545
18,495
580
5,418
6,253
28,079
6,911
34,454
19,419
18,657
592
5,686
6,395
28,659
7,091
36,040
19,570
18,716
575
5,965
6,551
29,299
7,341
37,525
19,862
18,473
538
6,277
6,750
29,689
7,611
38,697
20,099
18,429
531
6,239
6,758
29,725
7,621
38,782
20,077
18,396
526
6,258
6,781
29,789
7,636
38,952
20,105
18,449
528
6,270
6,799
29,915
7,647
39,055
20,153
18,378
524
6,246
6,813
29,919
7,650
39,205
20,210
18,366
527
6,293
6,831
29,903
7,653
39,257
20,218
18,352
528
6,313
6,840
29,940
7,667
39,429
20,242
18,350
528
6,368
6,855
29,947
7,675
39,549
20,273
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment 4
7
8
9
10
11
12
13
14
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government
1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annual data are averages of monthly figures. By definition, seasonality does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
4. Includes all full- and part-time employees who worked during, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
Selected Measures
2.12
A43
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1999
1998
1998
1999
1998
1999
Series
Q4
Q1
Q3r
Q2
Output (1992 = 100)
Q4
Q1
Q2
Q3
Capacity (percent of 1992 output)
Q4
Q1
Q2
Q3r
Capacity utilization rate (percent)2
1 Total industry
133.9
134.6
136.1
137.7
165.3
167.3
169.2
170.7
81.0
80.4
80.5
80.7
2 Manufacturing
138.3
139.2
140.9
142.5
172.5
174.8
176.9
178.7
80.2
79.6
79.6
79.7
121.1
147.4
122.2
148.1
122.5
150.5
123.4
152.5
146.4
185.6
147.4
188.6
148.2
191.4
149.0
193.7
82.8
79.4
82.9
78.5
82.7
78.6
82.8
78.7
167.1
122.2
122.3
116.9
129.1
221.3
349.4
147.5
170.8
122.5
125.1
121.4
129.6
227.9
374.6
150.6
174.4
120.4
128.5
126.4
131.2
232.3
400.7
153.3
206.0
144.2
146.5
146.9
146.0
256.5
438.8
184.6
210.3
145.3
147.6
148.5
146.5
265.7
461.8
184.8
214.2
146.3
148.5
150.0
146.8
275.5
482.0
184.8
217.6
147.4
149.3
151.3
147.0
285.3
498.5
184.9
80.5
83.7
83.2
78.3
89.3
84.1
77.9
80.6
79.5
84.1
82.9
78.7
88.1
83.3
75.7
79.8
79.8
83.7
84.2
80.9
88.3
82.7
77.7
81.5
80.2
81.7
86.1
83.5
89.3
81.4
80.4
82.9
3
4
Primary processing3
Advanced processing4
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
165.8
120.7
121.8
114.9
130.4
215.6
341.6
148.7
102.4
98.9
95.9
94.0
126.6
126.8
126.6
126.2
80.9
78.0
75.7
74.5
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
111.3
106.7
114.5
115.1
123.5
114.0
111.8
109.6
115.8
115.9
122.9
116.3
111.6
111.1
115.1
116.3
123.5
114.1
111.5
111.7
116.1
117.0
124.2
114.6
138.5
131.4
133.0
149.5
134.6
121.1
139.1
131.4
133.8
150.0
135.9
121.8
139.5
131.5
134.5
150.4
137.2
122.2
139.9
131.6
135.3
150.7
138.4
122.7
80.3
81.2
86.1
77.0
91.7
94.1
80.4
83.4
86.6
77.3
90.4
95.6
80.0
84.5
85.6
77.3
90.0
93.3
79.7
84.9
85.8
77.6
89.7
93.4
100.4
113.0
116.5
97.6
114.6
116.6
97.1
116.6
118.9
98.2
118.2
120.5
120.4
126.5
124.3
120.4
126.9
124.7
120.3
127.3
125.2
120.2
127.8
125.6
83.3
89.3
93.7
81.1
90.3
93.5
80.7
91.6
95.0
81.7
92.5
95.9
1973
1975
Previous cycle 5
High
Low
High
20 Mining
21 Utilities
Electric
22
Low
Latest cycle 6
High
Low
1999
1998
Nov.
June
July
Aug.r
Sept.r
Oct.
Nov.p
Capacity utilization rate (percent)2
1 Total industry
89.2
72.6
87.3
71.1
85.4
78.1
80.9
80.5
80.7
80.7
80.6
81.0
81.0
2 Manufacturing
88.5
70.5
86.9
69.0
85.7
76.6
80.2
79.6
79.7
79.7
79.7
80.0
80.1
91.2
87.2
68.2
71.8
88.1
86.7
66.2
70.4
88.9
84.2
77.7
76.1
82.6
79.4
82.7
78.6
82.9
78.6
82.8
78.8
82.8
78.7
83.0
79.1
83.3
79.1
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
93.6
92.7
95.2
89.3
73.1
75.5
73.7
71.8
74.2
80.3
83.1
82.2
76.3
89.6
79.9
83.3
85.6
82.8
89.1
80.3
82.7
85.9
83.7
88.6
80.2
81.6
86.8
84.4
89.9
80.0
80.9
85.6
82.6
89.3
80.1
81.4
86.2
83.3
89.8
80.1
81.6
88.1
87.0
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
84.0
77.9
80.1
81.8
78.7
82.7
81.5
80.9
82.3
81.1
80.5
82.3
81.6
79.7
84.1
81.8
80.2
83.7
81.2
80.2
84.6
78.4
67.6
81.9
66.6
87.3
79.2
80.8
75.2
74.9
75.0
73.4
71.9
70.7
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
80.5
81.5
84.8
77.7
93.9
94.8
79.7
84.2
85.9
77.3
89.5
92.6
79.4
85.3
85.2
76.9
90.9
93.9
79.7
84.8
85.6
78.1
87.8
93.0
79.9
84.4
86.6
77.8
90.5
93.3
80.5
86.7
86.5
78.5
90.9
94.6
80.7
85.8
86.5
79.1
91.1
92.6
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
84.2
87.6
92.2
80.7
92.1
95.5
81.3
93.9
97.7
81.9
92.2
95.5
81.9
91.4
94.5
82.6
93.0
96.6
83.2
90.8
94.9
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing3
Advanced processing4
20 Mining
71 Utilities
Electric
22
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83
(February 1997), pp. 67-92, and the references cited therein. For details about the construction of individual industrial production series, see "Industrial Production: 1989 Developments
and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
A44
2.13
Domestic Nonfinancial Statistics • February 2000
INDUSTRIAL PRODUCTION
Indexes and Gross Value 1
Monthly data seasonally adjusted
Group
1992
proportion
1998
1999
1998
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.r
Sept.r
Oct.
Nov. p
Index (1992 = 100)
MAJOR MARKETS
1 Total index
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Products
Final products
Consumer goods, total
Durable consumer goods
Automotive products
Autos and trucks
Autos, consumer
Trucks, consumer
Auto parts and allied goods . . . .
Other
Appliances, televisions, and air
conditioners
Carpeting and furniture
Miscellaneous home goods
Nondurable consumer goods
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
Fuels
Residential utilities
100.0
132.4
133.8
134.1
134.5
135.1
135.5
136.2
136.6
137.4
137.7
138.0
139.1
139.5
125.4
126.6
116.3
149.1
143.7
149.4
111.7
185.2
134.8
152.8
125.8
127.3
117.2
150.9
142.0
148.7
109.0
187.2
131.8
158.0
126.0
127.3
116.7
149.9
140.0
147.0
110.8
182.5
129.3
157.8
126.2
127.6
116.5
152.0
142.0
149.0
112.8
185.7
131.4
160.0
126.8
128.2
116.8
152.8
145.4
153.2
108.8
197.2
133.6
158.3
126.8
128.3
117.0
154.0
147.4
157.5
112.4
202.0
132.5
158.8
126.9
128.6
116.8
153.4
143.7
148.9
107.2
184.0
135.3
161.1
127.6
129.5
117.6
155.5
150.6
162.9
114.2
208.9
132.8
158.7
127.5
129.0
116.9
153.5
145.5
152.8
114.3
189.8
134.4
159.6
128.8
130.6
118.8
156.4
147.4
155.1
114.7
196.8
135.7
163.5
129.0
130.8
118.9
156.0
147.4
154.4
107.4
203.5
136.6
162.6
326.3
124.0
114.3
108.5
106.1
90.1
120.9
104.5
116.4
112.0
117.9
353.8
124.4
114.6
110.1
107.5
90.7
122.7
106.2
118.8
114.3
120.4
345.4
124.5
114.9
110.3
108.8
90.4
124.0
105.2
114.5
110.1
116.1
60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5
125.4
116.2
142.7
134.7
138.4
109.7
167.4
128.6
149.0
125.1
126.8
115.6
145.4
142.0
150.2
113.7
183.2
129.9
147.3
124.9
126.0
115.1
146.0
141.7
148.2
115.5
179.1
131.8
148.8
1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1
262.8
117.9
115.2
109.9
108.6
95.2
120.9
105.6
112.6
110.5
113.1
273.3
117.7
110.1
108.6
108.4
91.3
122.0
103.4
106.3
109.6
104.7
283.5
115.9
111.0
107.9
107.2
91.3
120.2
102.8
108.6
110.1
107.6
299.7
121.1
111.0
108.7
108.4
91.7
119.7
101.5
113.1
112.2
113.3
320.0
122.8
113.6
109.3
109.4
92.0
122.8
100.4
109.9
113.4
108.2
317.6
119.6
115.7
108.9
108.4
91.3
121.6
98.8
115.4
110.7
117.2
325.8
120.2
116.9
108.3
107.8
91.8
118.7
99.9
115.1
111.5
116.4
311.1
121.0
117.2
108.4
107.7
90.2
120.5
100.3
114.7
110.9
116.1
319.0
121.0
116.2
108.4
107.3
90.2
120.2
101.5
115.3
109.9
117.4
329.9
124.1
115.9
108.3
106.7
89.2
119.4
102.0
118.6
121.7
319.0
122.1
115.4
108.9
106.5
90.1
122.7
103.2
116.6
110.0
119.3
146.3
167.0
219.4
642.8
138.1
137.2
133.8
139.7
75.8
116.0
171.2
145.2
166.3
220.9
657.8
138.6
134.8
131.0
133.0
75.2
105.2
172.5
144.6
165.9
223.0
677.5
137.0
132.8
130.9
132.6
75.0
99.8
173.3
144.9
166.3
224.5
703.1
135.8
131.2
128.9
139.9
75.4
97.4
169.2
145.9
167.5
229.2
736.1
135.2
129.5
129.0
143.0
75.6
100.8
168.8
147.0
169.4
236.9
773.0
136.0
129.4
130.7
135.7
75.1
97.2
164.7
148.4
171.2
244.3
805.8
135.3
128.9
131.2
134.0
75.2
99.8
161.3
148.3
171.2
248.2
830.2
133.7
128.2
132.2
130.2
74.6
100.1
158.9
149.3
172.6
253.8
851.9
135.4
127.5
131.2
123.8
74.5
102.0
151.5
150.5
173.9
259.9
892.8
133.6
128.1
135.3
123.2
74.7
107.1
151.3
150.3
173.8
261.0
926.9
133.8
124.6
132.0
126.3
73.6
111.3
144.4
151.3
174.9
266.3
957.0
135.3
121.0
130.6
125.3
73.8
115.7
145.0
151.7
175.4
268.8
977.1
134.4
120.3
133.4
128.0
72.9
120.8
147.0
118.8
120.0
130.3
113.9
121.1
132.2
114.5
121.4
133.3
114.3
121.3
132.5
114.7
121.6
131.7
115.6
121.7
131.3
116.1
122.3
132.9
116.1
121.7
132.6
115.3
121.5
133.2
114.6
121.7
132.9
115.1
122.6
134.0
115.8
123.4
135.0
116.4
123.4
136.0
115.8
147.9
187.7
145.5
319.6
130.3
118.6
148.5
189.2
147.2
322.1
131.2
119.3
111.7
101.8
114.4
111.3
114.6
101.6
98.8
107.0
148.2
188.8
145.4
323.1
130.8
119.1
9.7
6.3
3.3
146.5
182.1
146.2
295.6
130.2
122.8
112.7
106.9
115.7
112.9
112.4
103.1
101.0
107.8
96.5
116.1
111.6
113.4
101.8
99.1
106.8
148.7
189.2
148.4
324.4
129.8
116.8
112.4
100.2
115.6
112.8
114.4
101.7
99.1
106.7
150.3
191.9
149.9
331.5
130.9
119.8
112.7
101.2
116.3
113.6
113.3
102.4
99.1
108.9
150.8
193.1
147.7
340.5
130.4
120.1
112.8
101.8
116.5
114.2
111.9
102.2
97.3
111.7
151.7
194.3
148.4
345.0
130.4
119.9
113.8
101.8
115.3
116.0
114.2
102.2
98.3
109.9
153.1
197.2
150.5
355.2
130.6
122.6
114.2
101.2
117.7
116.9
112.0
101.6
98.9
106.8
155.0
200.3
153.9
364.6
131.1
122.8
114.5
101.2
116.3
117.7
113.0
102.9
100.2
108.0
154.6
199.9
147.2
369.0
131.6
123.3
114.4
101.1
116.3
117.4
113.2
102.3
100.3
106.1
155.6
202.2
155.8
371.0
131.1
121.9
114.8
100.4
118.9
117.6
112.5
101.7
99.6
105.7
156.3
202.5
153.8
374.8
131.2
123.4
115.7
102.2
118.5
118.5
114.5
102.7
100.3
107.3
157.3
204.9
155.7
379.8
132.5
126.1
115.9
100.8
118.5
119.1
114.5
102.0
99.9
106.0
97.1
95.1
132.4
131.9
133.6
133.1
133.7
133.2
133.9
133.5
134.4
133.9
135.1
134.6
135.4
134.9
136.1
135.6
136.4
135.9
137.3
136.7
137.4
137.1
137.9
137.1
139.0
138.4
139.4
138.7
98.2
27.4
26.2
128.1
115.0
128.8
113.8
116.7
128.7
113.4
115.9
128.8
114.6
116.7
129.1
115.5
118.0
129.5
115.1
116.9
129.7
114.8
116.7
130.2
114.8
117.0
130.6
114.8
117.2
131.2
115.0
116.6
131.4
115.2
117.7
131.4
115.0
117.0
132.4
116.8
118.8
132.7
117.0
119.4
12.0
165.6
170.8
170.3
169.9
170.6
171.9
173.8
175.7
175.7
177.4
178.3
178.5
180.0
180.2
12.1
29.8
142.6
160.2
144.8
162.4
143.7
163.3
142.7
162.9
142.4
163.6
142.6
165.5
143.4
166.3
144.2
167.4
143.6
169.5
144.4
171.6
144.6
171.3
143.6
172.9
143.9
173.5
143.9
175.0
123.7
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
1.1
4.0
2.5
1.2
1.3
3.3
.6
.2
142.7
161.2
205.7
526.9
139.0
130.0
123.3
139.8
75.4
134.6
166.3
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.2
5.3
8.9
128.0
113.4
37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
Converted fuel materials
50
133.8
39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
111.8
102.7
112.8
112.7
113.7
102.1
100.4
105.3
111.3
111.1
SPECIAL AGGREGATES
51
52
53
54
55
56
57
58
Total excluding autos and trucks
Total excluding motor vehicles and parts
Total excluding computer and office
equipment
Consumer goods excluding autos and trucks .
Consumer goods excluding energy
Business equipment excluding autos and
trucks
Business equipment excluding computer and
office equipment
Materials excluding energy
116.7
Selected Measures
2.13
INDUSTRIAL PRODUCTION
Group
Indexes and Gross Value 1 —Continued
1992
proportion
SIC
code
A45
1999
1998
1998
avg.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. r
Sept.1
Oct.
Nov.P
Index (1992 = 100)
MAJOR INDUSTRIES
100.0
132.4
133.8
133.8
134.1
134.5
135.1
135.5
136.2
136.6
137.4
137.7
138.0
139.1
139.5
85.4
26.5
58.9
136.4
121.2
144.0
138.3
120.8
147.5
138.4
121.9
147.2
138.6
122.2
147.2
139.3
122.1
148.4
139.7
122.4
148.8
140.2
122.2
149.6
141.0
122.5
150.7
141.4
122.7
151.2
142.0
123.3
151.8
142.5
123.4
152.6
142.9
123.6
153.0
144.0
124.2
154.4
144.6
124.8
155.1
24
25
45.0
2.0
1.4
160.7
118.5
122.0
165.4
119.9
123.7
166.2
122.5
123.3
166.3
122.6
122.7
166.8
122.3
124.6
168.1
121.7
125.8
169.4
121.5
123.8
170.8
123.9
124.4
172.2
122.2
124.4
173.8
121.5
125.7
174.4
120.2
126.4
174.9
119.6
127.9
176.1
120.5
126.8
177.0
121.1
126.2
32
33
331,2
331PT
333-6,9
34
2.1
3.1
1.7
.1
1.4
5.0
126.8
125.6
122.6
115.3
129.4
128.8
130.1
120.5
112.1
101.6
130.9
128.6
131.8
122.5
116.5
102.7
130.0
129.8
133.1
122.9
118.1
106.8
128.9
129.0
132.2
120.1
114.6
106.8
127.0
128.4
130.8
124.0
118.1
108.3
131.4
128.5
128.8
123.9
119.4
109.3
129.4
128.0
128.5
123.9
120.1
111.4
128.6
127.2
127.8
127.4
124.5
110.7
130.8
128.3
129.3
128.0
126.2
111.1
130.2
128.6
130.2
129.6
127.6
115.9
132.1
128.5
129.7
128.0
125.3
112.4
131.3
128.3
130.6
129.1
126.7
121.8
132.1
128.4
132.3
132.3
132.7
127.2
131.8
128.7
59 Total index
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 products
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
92 Mining
93
Metal
94
Coal
Oil and gas extraction
95
96
Stone and earth minerals
97 Utilities
98
Electric
Gas
99
35
8.0
206.4
215.3
216.6
217.5
221.7
224.6
227.0
228.4
228.2
230.0
231.4
235.4
239.0
240.3
357
36
37
371
371PT
1.8
7.3
9.5
4.9
2.6
675.1
315.1
121.6
141.7
127.8
805.3
341.7
124.9
148.0
138.1
832.2
344.8
123.9
147.1
136.4
868.1
346.7
122.7
146.5
136.5
907.1
347.5
123.2
147.8
135.0
947.6
354.0
122.6
148.1
134.0
987.5
366.4
122.1
148.4
135.7
1,021.6
373.3
122.8
150.6
138.3
1,048.2
384.2
123.5
152.9
142.0
1,075.1
399.2
122.9
152.2
135.8
1,123.7
401.3
122.9
152.2
146.8
1,167.5
401.5
123.3
155.6
139.4
1,206.7
408.2
121.9
154.9
140.7
1,232.9
412.8
121.9
156.6
141.1
372-6,9
38
39
4.6
5.4
1.3
101.7
112.6
122.0
102.3
113.0
119.5
101.2
112.8
120.8
99.4
113.3
120.6
99.3
112.9
121.8
97.9
113.7
122.9
96.5
115.1
124.2
96.0
116.7
125.5
95.2
117.0
124.5
94.7
117.2
125.2
94.7
117.7
125.2
92.6
116.9
125.1
90.5
118.5
125.5
89.0
118.5
124.7
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
111.6
109.3
106.2
110.9
96.6
114.9
105.1
115.1
113.3
133.2
77.1
111.6
110.9
96.0
107.0
93.3
112.8
105.1
116.2
114.8
134.9
75.1
111.1
110.3
91.1
106.4
93.2
114.9
105.3
114.7
114.8
135.6
73.2
111.3
111.0
94.8
108.0
92.3
115.7
104.3
114.5
117.2
135.4
71.9
112.3
111.4
99.2
110.5
92.2
115.9
104.3
116.6
117.0
135.6
71.5
111.8
110.9
95.4
110.1
91.8
115.9
103.7
116.8
114.9
135.8
71.3
111.5
110.6
94.1
111.4
92.4
115.0
104.2
115.6
114.6
136.2
70.6
111.9
110.6
95.4
110.9
91.2
114.6
104.1
117.0
114.2
137.4
70.9
111.3
110.0
94.5
110.8
90.7
115.7
103.5
116.3
113.4
136.4
71.3
111.0
108.9
96.0
112.3
89.8
115.0
102.8
115.8
115.1
138.0
69.1
111.5
108.9
94.8
111.7
89.2
115.8
103.6
117.7
114.1
137.6
70.2
111.8
109.4
90.9
111.2
89.0
117.4
104.7
117.3
114.6
139.2
69.4
112.8
110.4
93.6
114.3
89.4
117.6
106.0
118.5
116.2
137.9
68.6
113.2
111.4
95.9
113.0
89.0
117.8
105.4
119.5
113.9
138.6
68.9
10
12
13
14
6.9
.5
1.0
4.8
.6
103.8
109.1
109.7
99.5
123.4
101.5
109.4
112.4
94.7
128.9
98.1
106.6
109.2
91.5
124.1
98.0
102.9
107.7
91.2
129.4
97.4
101.3
108.9
90.7
127.1
97.5
98.5
103.9
92.1
126.6
96.7
100.5
107.3
90.8
121.8
97.4
100.2
106.1
91.8
123.9
97.1
98.9
107.0
91.4
123.3
97.8
96.2
110.0
92.3
120.5
98.5
93.0
110.7
93.2
123.0
98.4
92.8
109.4
93.0
125.5
99.2
93.1
108.8
93.9
127.6
99.9
95.8
110.0
94.2
129.4
7.7
6.2
1.6
114.4
116.9
103.2
110.8
114.7
93.3
112.5
115.9
97.5
114.5
115.8
108.8
112.6
114.9
102.5
116.8
491.493PT
492.493PT
119.1
106.4
116.3
118.6
105.7
116.1
118.4
105.8
117.4
119.6
107.5
119.8
122.6
107.4
117.8
120.0
108.2
116.9
118.9
108.0
119.2
121.6
108.0
116.4
119.7
101.4
80.5
136.1
137.8
138.0
138.2
138.9
139.3
139.8
140.5
140.8
141.4
142.0
142.2
143.4
144.0
83.6
131.4
132.5
132.5
132.4
133.0
133.1
133.4
134.1
134.3
134.8
135.1
135.3
136.2
136.7
5.9
563.8
645.5
656.4
665.0
676.0
700.3
731.6
81.1
120.4
120.7
120.7
120.6
121.1
121.0
120.9
121.3
121.2
121.3
121.6
121.7
122.4
122.8
79.5
118.5
118.8
118.7
118.6
119.1
118.9
118.7
119.1
118.9
118.9
119.1
119.2
120.0
120.3
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
753.3
780.5
812.1
830.4
842.3
858.9
876.6
Gross value (billions of 1992 dollars, annual rates)
Major Markets
105 Products, total
2,001.9
2,644.3
2,677.2
2,674.9
2,693.7
2,699.9
2,701.8
2,710.2
2,721.9
2,723.6
2,726.1
2,742.0
2,738.4
2,768.8
2,764.3
106 Final
1,552.1
2,037.0
2,064.3
2,056.0
2,072.5
2,079.5
2,080.1
2,087.2
2,095.3
2,100.3
2,102.8
2,118.5
2,110.8
2,137.4
2,133.1
107
Consumer goods
108
Equipment
109 Intermediate
1,049.6
502.5
449.9
1,271.0
767.0
606.1
1,270.5
795.1
611.7
1,267.6
789.6
617.5
1,286.4
787.0
619.9
1,292.3
788.1
619.1
1,287.9
793.3
620.4
1,288.4
800.1
621.7
1,290.1
806.7
625.2
1,295.1
806.7
622.1
1,292.4
812.3
622.0
1,301.3
819.0
622.4
1,295.2
817.7
626.3
1,316.9
822.1
630.3
1,309.8
825.3
630.0
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 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utiliza-
tion: 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 2000
HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1999
Item
1998
Jan.
Mar.
Feb.
Apr.
May
June
July
Aug.
Sept.
Oct.
1,619
1,210
409
1,655
1,289
366
l,026 r
704 r
322
1,594r
l,267 r
327 r
340
1,506
1,171
335
l,637 r
l,295 r
342 r
l,023 r
701 r
322 r
l,652 r
1,313 r
339 r
320
1,594
1,178
416
1,637
1,340
297
1,020
704
316
1,637
1,296
341
321
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
1 Permits authorized
2
One-family
3
Two-family or more
4 Started
One-family
6
Two-family or more
Under construction at end of period1
One-family
9
Two-family or more
10 Completed
ii
One-family
12
Two-familv or more
13 Mobile homes shipped
Price of units sold
of dollars)2
16 Median
1/ Average
1,604
1,184
421
1,617
1,271
346
935
638
297
1,473
1,158
315
372
1,778
1,275
503
1,820
1,393
427
1,011
697
314
1,648
1,292
356
390
1,738
1,306
432
1,752
1,380
372
1,032
712
320
1,528
1,246
282
381
1,654
1,242
412
1,746
1,394
352
1,036
714
322
1,700
1,357
343
383
1,572
1,214
358
1,577
1,260
317
1,031
708
323
1,633
1,324
309
368
1,591
1,243
348
1,668
1,389
279
1,029
708
321
1,650
1,334
316
365
1,641
1,241
400
1,607
1,305
302
1,017
702
315
1,674
1,346
328
355
1,641
1,247
394
1,680
1,332
348
1,021
704
317
1,609
1,263
346
336
757
326
804
287
886
300
908
295
909
297
885
300
952
300
914
304
932
306
929
305
923
307
848
310
986
312
146.0
176.2
152.5
181.9
152.5
182.8
159.9
191.4
155.0
189.4
160.0
191.4
154.8
188.2
158.3
193.4
157.9
188.8
155.0
193.5
159.9
193.9
159.0
198.9
4,196
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period1
1,441
1,062
379
1,474
1,134
340
834
570
264
1,406
1,120
285
354
140.0
166.4
1
a
1,426
1,070
356
1,477
1,161
316
819
584
235
1,406
1,123
283
361
4,381
4,970
5,060
5,140
5,420
5,250
5,000
5,630
5,400
5,240
5,130
4,790
115.8
141.8
121.8
150.5
128.4
159.1
130.3
162.8
128.1
159.6
129.6
162.3
130.7
163.8
132.8
167.4
136.9
174.2
136.0
171.9
137.4
174.3
134.4
170.2
133.1
167.3
(thousands
EXISTING UNITS (one-family)
18 Number sold
Price of units sold
of dollars)2
19 Median
20 Average
(thousands
Value of new construction (millions of dollars) 3
CONSTRUCTION
21 Total put in place
581,920
617,877
664,451
697,858
710,657
715,396
704,582
698,461
698,852
702,517
698,381
697,450
699,268
22 Private
23
Residential
24
Nonresidential
25
Industrial buildings
26
Commercial buildings
Other buildings
28
Public utilities and other
447,593
255,577
192,017
32,644
75,829
30,648
52,896
474,842
265,908
208,933
31,355
86,190
37,198
54,190
518,987
293,569
225,418
32,308
95,252
39,438
58,421
543,471
315,828
227,643
29,895
100,164
38,833
58,751
548,682
318,483
230,199
28,967
102,802
40,449
57,981
555,362
323,133
232,229
29,052
103,983
39,840
59,354
547,885
322,213
225,672
26,217
102,180
39,737
57,538
546,880
321,803
225,077
24,975
104,134
38,876
57,092
546,931
320,913
226,018
25,465
104,457
38,592
57,504
546,375
320,352
226,023
26,246
103,441
38,365
57,971
541,690
318,816
222,874
25,679
102,498
37,735
56,962
539,767
318,838
220,929
23,772
103,920
37,323
55,914
537,633
319,906
217,727
22,416
102,203
37,659
55,449
29 Public
30
Military
Highway
31
32
Conservation and development
Other
33
134,326
2,604
39,883
5,827
86,012
143,035
2,559
44,295
5,576
90,605
145,464
2,588
45,067
5,487
92,322
154,387
1,881
50,538
6,018
95,950
161,975
2,636
54,880
6,271
98,188
160,033
2,223
53,099
6,194
98,517
156,697
2,268
50,897
6,016
97,516
151,581
2,128
48,542
5,101
95,810
151,921
2,137
45,518
5,845
98,421
156,142
2,305
47,747
5,810
100,280
156,691
1,679
48,148
6,581
100,283
157,682
1,941
49,087
6,277
100,377
161,635
2,264
46,766
6,174
106,431
21
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 A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Item
Change from 3 months earlier
(annual rate)
1998
1998
Nov.
Change from 1 month earlier
Index
level,
Nov.
1999
1999
1999
1999
Nov.
Dec.
Mar.
June
Sept.
July
Aug.
Sept.
Oct.
Nov.
CONSUMER PRICES2
(1982-84=100)
1.5
1 All items
->
Food
3 Energy items
4 All items less food and energy
Commodities
6
Services
2.6
2.0
1.5
2.9
4.2
.3
.3
.4
.2
.1
168.3
2.3
-9.2
2.3
.7
3.1
1.9
10.6
2.1
.8
2.7
2.8
-5.1
2.5
2.5
2.5
1.7
5.8
.9
-3.0
2.7
1.7
14.2
2.3
2.0
2.5
2.5
29.4
2.5
2.5
2.3
.2
2.1
.2
.1
.3
.2
2.7
.1
-.1
.2
.2
1.7
.3
.7
.2
.2
-.1
.2
.1
.3
.1
.0
.2
-.2
.4
165.2
111.2
178.4
145.0
197.5
-.6
.2
-11.1
2.3
-.1
3.1
.4
15.4
3.0
.1
2.2
.3
-8.9
8.3
.3
.6
2.1
5.7
-1.3
-.6
2.8
.0
23.2
.8
-.3
7.1
2.4
42.4
3.8
.6
.2
-,6r
3.0"
.0
-.1
.5
,l r
3.8r
-.1
.0
1.1
1.0
2.2
1.1
.2
-.1
-.7
-1.0
.3
.3
.2
.1
1.4
.1
-.1
135.0
135.4
84.0
153.5
138.3
-2.7
-1.5
3.3
1.5
-4.5
-2.7
.3
-.9
6.1
3.1
6.6
2.7
,8r
.4
,5r
.2
.3
.1
.3
.4
.3
.1
126.2
134.4
-7.2
-31.1
-15.6
-2.8
45.7
9.7
-7.0
13.5
-24.3
4.1
-21.1
.9
-.8
163.8
8.6
1.2
121.9
26.6
-4.3r
4.3r
1.8r
3.5r
6.0r
1.9r
1.3
10.4
2.2
-.1
-4.8
2.4
1.0
8.8
.3
99.5
97.5
142.8
PRODUCER PRICES
(1982=100)
7 Finished goods
Consumer foods
9
Consumer energy
10
Other consumer goods
11
Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
A48
2.16
Domestic Nonfinancial Statistics • February 2000
GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
Q3
Q4
Ql
Q2
GROSS DOMESTIC PRODUCT
1 Total
7,813.2
8,300.8
8,759.9
8,797.9
8,947.6
9,072.7
9,146.2
By source
2 Personal consumption expenditures
Durable goods
3
Nondurable goods
4
5
Services
5,237.5
616.5
1,574.1
3,047.0
5,524.4
642.9
1.641.7
3.239.8
5.848.6
698.2
1,708.9
3,441.5
5,889.6
696.9
1.716.6
3.476.1
5.973.7
722.8
1,742.9
3.508.0
6,090.8
739.0
1.787.8
3.564.0
6,200.8
751.6
1,824.8
3.624.3
1,242.7
1,212.7
899.4
225.0
674.4
313.3
1,383.7
1,315.4
986.1
254.1
732.1
329.2
1.531.2
1,460.0
1.091.3
272.8
818.5
368.7
1,535.3
1.461.7
1.087.2
271.7
815.4
374.5
1.580.3
1,508.9
1.121.4
278.0
843.4
387.5
1,594.3
1,543.3
1.139.9
274.7
865.2
403.4
1.585.4
1.567.8
1,155.4
272.5
882.9
412.4
30.0
22.2
68.3
65.6
71.2
70.9
73.7
74.7
71.4
56.2
51.0
40.9
17.6
12.8
-89.0
874.2
963.1
-88.3
968.0
1,056.3
-149.6
966.3
1,115.9
-165.7
949.1
1.114.8
-161.2
981.8
1.143.1
-201.6
966.9
1,168.5
-245.8
978.2
1,224.0
17 Government consumption expenditures and gross investment
18
Federal
19
State and local
1,421.9
531.6
890.4
1,481.0
537.8
943.2
1.529.7
538.7
991.0
1,538.7
539.7
999.0
1.554.8
546.7
1,008.1
1.589.1
557.4
1,031.8
1.605.9
561.6
1,044.3
By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
7.783.2
2.921.3
1,331.9
1.589.4
4,191.0
670.9
8,232.4
3,074.1
1,424.8
1,649.3
4,434.7
723.7
8,688.7
3,239.1
1,528.9
1,710.3
4,664.6
785.1
8,724.2
3,231.9
1,519.9
1,712.1
4,700.4
791.9
8,876.2
3,318.4
1,571.4
1,747.0
4,747.9
809.9
9,021.6
3.365.6
1,584.3
1,781.3
4.820.7
835.3
9,128.6
3.406.6
1.601.7
1,804.9
4,885.5
836.5
30.0
19.1
10.9
68.3
35.6
32.8
71.2
39.0
32.3
73.7
39.8
33.9
71.4
38.6
32.8
51.0
24.1
27.0
17.6
6.3
11.4
7,813.2
8,165.1
8,516.3
8,536.0
8,659.2
8,737.9
8,778.6
6,210.2
6,634.9
7.036.4
7.087.1
7,193.8
7,334.5
7,423.1
4,395.6
3,630.1
641.0
2,989.1
765.4
275.4
490.0
4,675.7
3,884.7
664.4
3,220.3
791.0
290.1
500.9
5,011.2
4.189.5
692.8
3,496.7
821.7
306.0
515.7
5,053.6
4,227.9
696.7
3.531.2
825.7
308.1
517.7
5.134.7
4.300.8
702.8
3,598.0
833.9
311.8
522.1
5,217.7
4,371.5
715.8
3,655.7
846.2
318.3
528.0
5,287.1
4,432.6
721.3
3,711.3
854.5
321.5
533.0
544.7
510.5
34.3
578.6
549.1
29.5
606.1
581.0
25.1
606.4
583.6
22.9
637.1
596.0
41.1
639.9
607.5
32.5
655.3
621.2
34.1
6 Gross private domestic investment
Fixed investment
7
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
MEMO
29 Total G D P 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' income 1
39
Business and professional 1
40
Farm1
41 Rental income of persons 2
129.7
130.2
137.4
139.3
147.0
148.6
148.8
42 Corporate profits1
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment
753.9
726.3
3.1
24.4
837.9
795.9
7.4
34.6
846.1
781.9
20.9
43.3
843.8
780.1
19.8
43.9
834.3
766.7
20.8
46.9
882.0
13.3
50.6
875.5
835.8
-13.6
53.2
46 Net interest
386.3
412.5
435.7
440.8
446.3
456.4
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
818.1
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
Selected Measures
2.17
A49
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1999
1998
Account
1996
1997
1998
Q3
Q4
Ql
Q2
Q3 r
PERSONAL INCOME AND SAVING
1 Total personal income
6,547.4
6,951.1
7,358.9
7,413.6
7,530.8
7,630.2
7,732.6
7,831.4
2 Wage and salary disbursements
Commodity-producing industries
3
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
3,626.5
908.2
673.7
822.4
1,254.9
641.0
3,888.9
975.5
718.8
879.1
1,369.8
664.4
4,186.0
1,038.7
757.5
944.6
1,509.9
692.8
4,224.4
1,045.6
762.3
953.5
1,528.6
696.7
4,297.3
1,056.6
765.6
969.9
1,568.0
702.8
4,371.5
1,062.9
767.0
986.3
1,606.6
715.8
4,432.6
1,075.1
774.8
997.6
1,638.5
721.3
4,509.4
1,090.2
786.4
1,013.4
1,675.5
730.3
490.0
544.7
510.5
34.3
129.7
297.4
810.6
928.8
537.6
500.9
578.6
549.1
29.5
130.2
333.4
854.9
962.4
565.8
515.7
606.1
581.0
25.1
137.4
348.3
897.8
983.6
578.1
517.7
606.4
583.6
22.9
139.3
348.0
909.3
986.5
579.6
522.1
637.1
596.0
41.1
147.0
351.9
906.4
991.0
581.1
528.0
639.9
607.5
32.5
148.6
356.1
907.4
1,007.8
588.9
533.0
655.3
621.2
34.1
148.8
361.2
920.5
1,013.6
593.0
538.5
654.0
633.0
21.0
139.0
367.0
938.8
1,021.3
599.0
8 Other labor income
9 Proprietors' income 1
Business and professional'
11
Farm'
12 Rental income of persons 2
Dividends
14 Personal interest income
Transfer payments
16
Old age survivors, disability, and health insurance benefits
in
n
n
17
18 EQUALS: Personal income
19
298.1
315.9
318.0
322.0
328.9
332.3
336.7
6,951.1
7,358.9
7,413.6
7,530.8
7,630.2
7,732.6
7,831.4
26 Saving rate (percent)
1,088.3
1,113.0
1,124.8
1,139.4
1,160.4
6,325.3
6,417.8
6,505.4
6,593.2
6,671.0
5,711.7
6,056.6
6,100.5
6,190.3
6,310.3
6,425.2
6,531.5
271.1
229.7
224.8
227.5
195.1
168.0
139.5
29,428.2
19,726.9
21,385.0
30,466.8
20,275.0
21,954.0
31,471.9
21,059.1
22,636.0
31,509.8
21,154.3
22,715.0
31,882.2
21,339.5
22,924.0
32,112.8
21,640.6
23,110.0
32,179.6
21,854.1
23,239.0
32,543.3
22,059.6
23,343.0
4.5
3.7
3.6
3.5
3.0
2.5
2.1
1,349.3
MEMO
Per capita (chained 1992 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
1,072.6
6,286.2
4.8
22 EQUALS: Personal saving
968.3
5,982.8
272.1
LESS: Personal outlays
869.7
5,677.7
5,405.6
LESS: Personal tax and nontax payments
20 EQUALS: Disposable personal income
21
280.4
6,547.4
LESS: Personal contributions for social insurance
1,521.3
1,646.0
1,664.1
1,685.4
1,727.8
1,709.5
1,735.6
1,382.3
1,389.4
1,359.3
1,355.7
139.5
252.4
-26.7
GROSS SAVING
27 Gross saving
1,290.4
28 Gross private saving
1,362.0
1,371.2
1,367.7
79 Personal saving
.30 Undistributed corporate profits'
31 Corporate inventory valuation adjustment
272.1
232.5
3.1
271.1
265.9
7.4
229.7
257.2
20.9
224.8
251.1
19.8
227.5
246.5
20.8
195.1
277.6
13.3
168.0
259.5
-13.6
Capital consumption
39 Corporate
33 Noncorporate
543.6
238.5
579.4
249.8
619.2
261.5
625.0
263.3
637.1
267.7
645.8
271.0
657.2
274.6
676.5
287.2
34 Gross government saving
35
Federal
36
Consumption of fixed capital
37
Current surplus or deficit (—), national accounts
38
State and local
39
Consumption of fixed capital
40
Current surplus or deficit ( —), national accounts
58.9
-51.5
85.3
-136.8
110.4
88.9
21.4
159.3
37.7
86.6
-48.8
121.5
94.0
27.5
274.8
134.3
87.4
46.9
140.5
98.8
41.7
296.4
147.1
87.5
59.6
149.3
99.4
49.9
303.0
147.8
88.1
59.7
155.2
101.1
54.2
338.3
187.2
89.6
97.6
151.1
102.4
48.7
350.2
208.3
90.2
118.1
141.9
104.3
37.6
379.9
225.1
91.2
133.8
154.8
106.0
48.9
41 Gross investment
1,382.1
1,518.1
1,598.4
1,576.2
1,623.0
1,628.4
1,574.0
1,594.4
42 Gross private domestic investment
43 Gross government investment
44 Net foreign investment
1,242.7
250.2
-110.7
1,383.7
258.1
-123.7
1,531.2
268.7
-201.5
1,535.3
273.5
-232.6
1,580.3
272.6
-229.9
1,594.3
289.8
-255.7
1,585.4
292.2
-303.7
1,635.0
295.7
-336.3
32.8
-3.2
-47.6
-87.9
-62.4
-99.4
-135.5
-141.2
allowances
45 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
A50
3.10
International Statistics • February 2000
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1998
Item credits or debits
1996
1997
1999
1998
Q3
1 Balance on current account
2
Balance on goods and services
3
Exports
4
Imports
5
Income, net
6
Investment, net
7
Direct
8
Portfolio
9
Compensation of employees
10
Unilateral current transfers, net
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
-129,295
-104,318
849,806
-954,124
17,210
21,754
67,746
-45,992
-4,544
-42,187
-143,465
-104,730
938,543
-1,043,273
3,231
8,185
69,220
-61,035
-4,954
-41,966
-220,562
-164,282
933,907
-1,098,189
-12,205
-6,956
59,405
-66,361
-5,249
-44,075
Q4
Ql
Q2r
Q3 P
-63,476
-45,724
229,284
-275,008
-6,965
-5,637
11,834
-17,471
-1,328
-10,787
-61,669
-43,262
236,904
-280,166
-4,933
-3,571
14,558
-18,129
-1,362
-13,474
-68,654
-53,974
231,904
-285,878
-4,340
-2,946
14,834
-17,780
-1,394
-10,340
-80,909
-65,085
234,512
-299,597
-4,612
-3,225
13,990
-17,215
-1,387
-11,212
-89,949
-73,825
242,626
-316,451
-4,920
-3,520
15,657
-19,177
-1,400
-11,204
-989
68
-429
185
-50
119
-392
-673
12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16
Foreign currencies
6,668
0
370
-1,280
7,578
-1,010
0
-350
-3,575
2,915
-6,784
0
-149
-5,118
-1,517
-2,026
0
188
-2,078
-136
-2,369
0
-227
-1,924
-218
4,068
0
563
3
3,502
1,159
0
-190
1,413
-64
1,950
0
-185
2,268
-133
17 Change in U.S. private assets abroad (increase, —)
18
Bank-reported claims 3
19
Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net
-386,441
-91,555
-86,333
-115,859
-92,694
-464,354
-144,822
-120,403
-89,174
-109,955
-285,605
-24,918
-25,041
-102,817
-132,829
-60,256
-33,344
-20,320
14,994
-21,586
-48,188
37,192
16,202
-70,809
-30,773
-19,335
27,771
-13,853
8,132
-41,385
-155,480
-42,519
-16,816
-64,579
-31,566
-102,760
384
-32,098
-26,511
-44,535
22 Change in foreign official assets in United States (increase, + )
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities"
26
Other U.S. liabilities reported by U.S. banks3
27
Other foreign official assets 4
127,390
115,671
5,008
-316
5,704
1,323
18,119
-6,690
4,529
-1,798
22,286
-208
-21,684
-9,957
6,332
-3,113
-11,469
-3,477
-46,489
-32,811
1,906
-224
-12,866
-2,494
24,352
31,836
1,562
-1,054
-7,133
-859
4,708
800
5,993
-1,594
-589
98
-628
-6,708
5,792
-647
1,437
-502
12,106
12,880
1,932
-1,163
-1,832
289
28 Change in foreign private assets in United States (increase, + )
29
U.S. bank-reported liabilities 2
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
U.S. currency flows
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in United States, net
447,457
16,478
39,404
154,996
17,362
130,240
88,977
733,542
149,026
107,779
146,433
24,782
196,258
109,264
524,321
40,731
9,412
46,155
16,622
218,026
193,375
140,036
77,313
11,875
-1,438
7,277
20,103
24,906
125,453
-21,811
-53,210
24,391
6,250
49,328
120,505
84,152
-14,184
20,188
-8,781
2,440
61,540
22,949
274,899
34,938
8,871
-5,407
3,057
79,067
154,373
195,047
30,965
12,136
9,713
4,697
93,062
44,474
35 Capital account transactions, net5
36 Discrepancy
37
Due to seasonal adjustment
Before seasonal adjustment
38
672
-65,462
292
-143,192
617
10,126
-65,462
-143,192
10,126
148
31,878
-10,582
42,460
166
-37,695
4,144
-41,839
166
-5,224
5,264
-10,488
178
-38,827
276
-39,103
166
-15,887
-10,209
-5,678
MEMO
Changes in official assets
39 U.S. official reserve assets (increase, —)
40 Foreign official assets in United States, excluding line 25
(increase, + )
41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
6,668
-1,010
-6,784
-2,026
-2,369
4,068
1,159
1,950
127,706
19,917
-18,571
-46,265
25,406
6,302
19
13,269
14,911
12,124r
-11,499
-ll,642r
2,058
1,966
-1,047
1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-41.
2. Reporting banks included all types of depository institutions as well as some brokers
and dealers.
3. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
4. Consists of investments in U.S. corporate stocks and in debt securities of private
2,057 r
corporations and state and local governments.
5. Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics
3.11
A51
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1999
Item
1996
1997
1998
Apr.
May
Aug.r
July
June
Sept.r
Oct.p
1 Goods and services, balance
2
Merchandise
3
Services
-104,318
-191,270
86,952
-104,731
-196,652
91,921
-164,282
-246,932
82,650
-18,787
-25,334
6,547
-21,390
-27,899
6,509
-24,604
-31,179
6,575
-24,886
-31,422
6,536
-23,953
-30,132
6,179
-24,152
-30,211
6,059
-25,937
-31,996
6,059
4 Goods and services, exports
5
Merchandise
6
Services
849,806
612,057
237,749
938,543
679,715
258,828
933,907
670,246
263,661
78,113
55,269
22,844
77,978
55,121
22,857
78,623
55,472
23,151
79,122
55,890
23,232
82,171
59,139
23,032
82,025
58,934
23,091
81,920
58,702
23,218
7 Goods and services, imports
8
Merchandise
9
Services
-954,124
-803,327
-150,797
-1,043,273
-876,366
-166,907
-1,098,189
-917,178
-181,011
-96,900
-80,603
-16,297
-99,368
-83,020
-16,348
-103,227
-86,651
-16,576
-104,008
-87,312
-16,696
-106,124
-89,271
-16,853
-106,177
-89,145
-17,032
-107,857
-90,698
-17,159
1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
U.S. RESERVE ASSETS
Millions of dollars, end of period
1999
Asset
1996
1997
1998
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. p
75,090
1 Total
2 Gold stock, including Exchange
Stabilization Fund1
3 Special drawing rights2,3
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
69,954
81,755
72,121
71,689
73,305
72,649 r
73,414
73,230
72,318
71,517
11,049
10,312
11,050
10,027
11,041
10,603
11,049
9,784
11,046
9,719
11,048
9,925
11,046r
10,152
11,047
10,284
11,049
10,232
11,049
10,326
11,049
10,336
15,435
38,294
18,071
30,809
24,111
36,001
21,689
29,599
21,462
29,462
21,462
30,870
19,885
31,566
19,978
32,105
19,571
32,378
18,707
32,236
17,950
32,182
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
SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1999
Asset
1996
1997
1998
May
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
July
Aug.
Sept.
Oct.
Nov.
Dec. p
167
457
167
157
409
257
166
243
189
501
71
638,049
11,197
620,885
10,763
607,574
10,343
606,579
10,340
611,372
10,329
619,004
10,329
626,669
10,271
634,086
10,155
621,351
10,114
629,430
10,015
632,482
9,933
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
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 2000
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1999
Item
1997
1998
Apr.
4
5
6
7
8
9
10
11
12
July
Aug.
Sept.
Oct.P
By area
Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
759,933 r
766,509
760,410
765,708
773,494
782,505 r
778,681
782,881
135,384
148,301
125,878r
134,177
135,731
135,765
124,270
136,199
126,180
138,518
125,873
147,492
126,220
153,499
124,148
152,457
124,509
154,582
428,004
5,994
58,822
432,127
6,074
61,677
418,350
6,231
70,432
421,573
6,143
72,225
421,970
5,982
73,058
420,197
6,022
73,910
422,591 r
6,060
74,135r
420,877
6,098
75,101
419,629
6,139
78,022
252,289
36,177
96,942
400,144
9,981
7,058
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
256,026
36,715
79,498r
400,64 r
10,059
3,080
245,500
38,563
81,379
413,991
9,656
3,506
242,386
38,181
81,075
411,739
9,326
3,789
241,989
39,001
76,828
421,282
8,378
4,316
240,546
39,147
77,832
430,050
8,376
3,629
243,334
39,342
75,339
438,300
8,119r
4,157
241,233
39,337
74,279
437,957
8,215
3,746
243,412
39,682
73,613
439,862
7,847
4,551
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;
3.16
June
776,505
1 Total1
2
3
May
LIABILITIES TO, A N D CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1994 benchmark survey of foreign portfolio investment in the United
States.
Reported by Banks in the United States 1
Millions of dollars, end of period
1998
Item
1995
1996
1999
1997
Dec.
1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers2
109,713
74,016
22,696
51,320
6,145
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
103,383
66,018
22,467
43,551
10,978
117,524
83,038
28,661
54,377
8,191
Mar.
June
Sept.
101,125
78,152
45,985
32,167
20,718
101,359
80,642
42,147
38,495
11,039
97,751
67,864
41,895
25,969
23,474
110,322
77,946
48,719
29,227
11,534
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.
Bank-Reported Data
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
A53
Reported by Banks in the United States1
Millions of dollars, end of period
1999
Item
1996
1997
1998
Apr.
May
June
July
Aug.
Sept.
Oct. p
BY HOLDER AND TYPE OF LIABILITY
1,162,148
6
5
7 Banks' custodial liabilities
8
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
9
10
instruments7
Other
11 Nonmonetary international and regional organizations
Banks' own liabilities
12
1.3
14
15
16
17
18
19
Demand deposits
Time deposits 2
Other3
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments7
Other
20 Official institutions'
Banks' own liabilities
21
Demand deposits
72
23
Time deposits 2
Other3
24
25
26
27
28
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments7
Other
29 Banks 10
Banks' own liabilities
30
31
Unaffiliated foreign banks
Demand deposits
32
33
Time deposits 2
Other3
34
Own foreign offices 4
35
36
37
38
39
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments7
Other
4 0 Other foreigners
41
42
43
44
45
46
47
48
Banks' own liabilities
Demand deposits
Time deposits 2
Other3
Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments7
Other
8
..
1,334,719
1,352,678
1,382,649
1,339,888
l,385,468 r
1,375,439
1,373,322
884,873
29,556
152,226
140,245
562,846
880,209
31,180
157,680
160,670
530,679
900,891
32,184
156,515
160,800
551,392
920,125
36,322
156,677
152,683
574,443
889,661
43,183
156,891
151,819
537,768
907,916
44,940
154,299 R
152,863 R
555,814
927,045
44,594
156,330
160,871
565,250
931,126
39,451
160,423
157,276
573,976
400,047
193,239
462,898
183,494
454,510
178,514
451,787
177,768
462,524
179,351
450,227
187,872
477,552
192,096
448,394
189,030
442,196
188,486
72,011
94,265
Other3
Own foreign offices 4
1,347,771
882,980
31,344
198,546
168,011
485,079
403,150
236,874
2 Banks' own liabilities
3
Demand deposits
Time deposits 2
4
1,283,027
758,998
27,034
186,910
143,510
401,544
1 Total, all foreigners
93,641
113,167
141,699
137,705
129,051
146,945
124,100
149,919
123,246
159,927
121,567
140,788
132,405
153,051
128,914
130,450
129,252
124,458
13,972
13,355
29
5,784
7,542
11,690
11,486
16
5,466
6,004
11,883
10,850
172
5,793
4,885
15,921
15,184
13
6,324
8,847
14,067
13,320
25
5,840
7,455
17,987
16,002
49
7,231
8,722
18,463
16,964
66
7,380
9,518
18,268 R
16,856 R
31
6,419
10,406 R
18,646
17,726
21
7,370
10,335
17,823
16,982
187
8,712
8,083
617
352
204
69
1,033
636
737
555
747
616
1,985
956
1,499
953
1,412
896
920
661
841
628
265
0
133
2
397
0
182
0
131
0
1,029
0
533
13
516
0
259
0
213
0
312,019
283,685
102,028
2,314
41,396
260,055
80,251
271,496
86,001
260,469
264,698
273,365
279,719
58,318
49,291
78,445
2,952
26,643
48,850
80,400
2,652
26,845
50,903
276,605
76,780
2,932
279,091
3,599
29,049
53,353
79,452
2,789
27,372
77,801
3,003
29,602
47,646
232,613
198,921
181,657
148,301
179,804
134,177
185,495
135,765
181,017
136,199
186,253
138,518
192,965
147,492
33,266
426
33,151
205
44,953
674
49,443
287
44,586
232
47,582
153
694,835
562,898
161,354
13,692
89,765
57,897
401,544
815,247
641,447
156,368
16,767
83,433
56,168
485,079
885,047
675,998
113,152
14,071
46,219
52,862
562,846
848,313
646,602
115,923
13,344
50,206
52,373
530,679
881,368
676,341
124,949
15,957
49,217
59,775
551,392
131,937
23,106
173,800
31,915
209,049
35,359
201,711
29,636
17,027
91,804
35,393
106,492
45,102
128,588
141,322
103,339
11,802
58,025
33,512
172,405
128,019
12,247
68,251
47,521
37,983
14,495
79,406
1,511
33,336
44,559
2,537
24,407 r
50,857 r
79,362
2,314
25,301
29,141
48,547
47,907
201,918
153,499
199,825
152,457
199,729
154,582
45,094
379
48,297
122
46,633
735
44,804
343
910,025
695,251
120,808
15,812
47,998
56,998
574,443
853,184
656,403
118,635
14,086
49,540
55,009
537,768
888,328
676,931
121,117
15,436
49,444 r
56,237 r
555,814
877,876
692,246
126,996
14,084
49,585
63,327
565,250
873,070
697,493
17,111
46,864
59,542
573,976
205,027
28,323
214,774
27,757
196,781
28,284
211,397
26,314
185,630
24,749
175,577
22,203
34,959
137,116
35,580
141,124
36,983
150,034
37,459
131,038
41,541
143,542
40,370
120,511
41,241
112,133
190,786
117,774
12,310
70,612
34,852
198,989
132,422
14,224
72,101
46,097
196,774
131,778
13,413
74,086
44,279
189,939
130,427
17,509
74,805
38,113
194,876
135,894
26,379
73,126
36,389
199,153
136,328
26,936
74,029 r
35,363 r
202,312
140,293
27,557
74,074
38,662
203,338
137,289
19,839
75,706
41,744
44,386
12,954
73,012
13,322
66,567
12,558
64,996
12,630
59,512
12,120
58,982
11,143
62,825
11,387
62,019
11,163
66,049
11,073
21,453
2,035
24,964
6,468
51,247
8,443
44,467
9,542
43,803
8,563
37,652
9,740
38,481
9,358
42,051
9,387
41,652
9,204
42,994
11,982
14,573
16,083
27,026
21,718
24,141
22,569
21,811
22,565
24,367
26,340
123,517
MEMO
4 9 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
A54
3.17
International Statistics • February 2000
LIABILITIES TO FOREIGNERS Reported by Banks in the United States 1 —Continued
1999
Item
1996
1997
1998
Apr.
May
June
July
Aug.
Sept.
Oct.p
AREA
5 0 T o t a l , all f o r e i g n e r s
1,162,148
1,283,027
1,347,771
1,334,719
1,352,678
1,382,649
1,339,888
l,385,468r
1,375,439
1,373,322
51 Foreign countries
1,148,176
1,271,337
1,335,888
1,318,798
1,338,611
1,364,662
1,321,425
1,367,200
1,356,793
1,355,499
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
419,672
2,717
41,007
1,514
2,246
46,607
23,737
1,552
11,378
7,385
317
2,262
7,968
18,989
1,628
39,023
4,054
181,904
239
25,145
427,367
3,178
42,818
1,437
1,862
44,616
21,357
2,066
7,103
10,793
710
3,235
2,439
15,775
3,027
50,654
4,286
181,554
233
30,224
409,543
2,428
37,991
1,300
1,655
49,097
18,575
2,237
5,910
11,037
1,181
2,277
2,693
11,075
1,974
54,551
5,783
169,826
221
29,732
434,124
2,224
39,227
1,267
1,645
48,328
24,689
2,691
5,943
11,752
1,210
2,461
2,794
8,083
3,429
66,214
5,810
178,015
242
28,100
430,580
2,678
31,298
961
1,384
45,235
21,999
2,737
6,192
12,152
1,049
2,439
2,871
8,678
2,966
65,967
5,914
187,310
254
28,496
438,232
2,770
31,242
1,143
1,358
42,622
23,950
3,168
6,426
12,206
1,184
2,237
2,756
7,700
3,851
60,758
7,786
200,038
289
26,748
450,827
3,210
34,834
1,811
1,335
42,424
23,719
3,121
5,840
11,292
1,333
1,912
2,665
8,194
3,779
76,176
7,883
192,431
270
28,598
453,747
3,205
33,688
1,903
1,222
45,809
24,478
3,358
6,231
11,634
1,225
1,976
2,816
9,479
4,571
69,338
8,368
196,490
266
27,690
442,594
3,299
38,663
2,658
1,269
45,761
25,471
3,322
6,306
13,882
951
1,875
3,713
9,294
5,381
65,971
8,253
178,019
267
28,239
52 Europe
Austria
53
54
B e l g i u m and L u x e m b o u r g
5B
Denmark
Finland
56
57
France
Germany
58
59
Greece
60
Italy
Netherlands
61
Norway
62
Portugal
63
Russia
64
Spain
65
Sweden
66
Switzerland
67
Turkey
68
United Kingdom
69
70
Yugoslavia 1 1
Other Europe and other former U.S.S.R.12
71
7 2 Canada
'
38,920
28,341
30,212
28,360
28,543
30,416
29,862
30,409
29,728
34,959
7 3 L a t i n A m e r i c a and C a r i b b e a n .-.•
74
Argentina
/5
Bahamas
76
Bermuda
Brazil
77
British W e s t I n d i e s
78
79
Chile
Colombia
80
Cuba
81
82
Ecuador
Guatemala
83
84
Jamaica
Mexico
85
Netherlands Antilles
86
Panama
87
88
Peru
Uruguay
89
Venezuela
90
Other
91
467,529
13,877
88,895
5,527
27,701
251,465
2,915
3,256
21
1,767
1,282
628
31,240
6,099
4,099
834
1,890
17,363
8,670
536,393
20,199
112,217
6,911
31,037
276,418
4,072
3,652
66
2,078
1,494
450
33,972
5,085
4,241
893
2,382
21,601
9,625
554,808
19,013
118,085
6,846
15,800
302,472
5,010
4,616
62
1,572
1,333
577
37,148
5,010
3,864
840
2,486
19,894
10,180
578,156
18,349
118,648
6,957
17,128
322,011
6,805
4,710
64
1,688
1,386
534
36,004
5,633
3,974
819
2,345
20,512
10,589
591,047
16,428
118,122
7,951
17,295
334,386
7,236
4,861
64
1,800
1,449
547
37,588
3,853
3,984
854
2,331
21,204
11,094
610,201
17,804
123,549
9,168
14,696
347,368
5,918
4,615
70
1,930
1,468
527
37,920
5,662
4,130
816
2,552
20,393
11,615
554,346
17,202
122,465
9,410
15,389
294,208
6,744
4,634
70
1,975
1,425
471
39,024
3,012
3,844
836
2,319
20,437
10,881
581,338
17,061
132,442
9,319
15,399
315,799
5,805
4,452
72
1,724
1,521
533
36,301
3,408
3,816
994
2,147
19,796
10,749
570,200
15,544
139,101
8,747
16,208
299,601
6,601
4,708
76
1,792
1,471
550
35,028
2,927
4,029
1,041
2,175
19,451
11,150
572,510
17,545
134,111
10,902
13,223
307,939
6,559
5,008
72
1,831
1,484
549
32,208
2,688
4,007
957
2,217
19,900
11,310
92
249,083
269,379
307,960
287,723
269,026
276,917
283,218
288,974
287,227
287,950
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
11,840
17,722
4,567
3,554
6,281
143,401
13,060
3,250
6,501
14,959
25,992
13,441
12,708
20,900
5,250
8,282
7,749
168,563
12,524
3,324
7,359
15,609
32,251
16,350
12,641
26,338
5,979
7,434
7,037
142,326
10,003
2,440
6,296
14,497
36,382
14,753
10,795
25,728
5,520
6,211
7,004
132,605
11,387
2,492
5,739
15,453
31,339
13,366
11,408
24,575
5,421
6,530
6,144
143,635
12,901
2,273
5,296
15,168
30,200
10,872
12,482
24,200
5,864
7,309
5,076
145,652
12,792
2,177
6,054
15,581
35,159
12,359
12,678
24,149
5,408
6,633
5,059
145,403
12,723
2,189
5,809
15,942
40,622
11,914
12,514
23,368
5,625
6,468
5,688
149,578
11,903
2,414
5,281
14,367
38,107
10,460
12,023
24,316
5,659
6,037
5,158
151,632
9,935
2,134
4,983
16,825
38,788
105 Africa
106
Egypt
107
Morocco
South Africa
108
Zaire
109
Oil-exporting countries14
110
Other
111
8,116
2,012
112
458
10
2,626
2,898
10,347
1,663
138
2,158
10
3,060
3,318
8,905
1,339
97
1,522
5
3,088
2,854
7,874
1,599
90
1,165
4
2,534
2,482
7,713
1,339
72
1,132
12
2,508
2,650
7,485
1,576
101
1,091
16
2,247
2,454
7,508
1,566
116
1,049
13
2,281
2,483
7,660
1,851
108
885
13
2,510
2,293
8,064
1,852
118
753
13
2,807
2,521
8,037
1,364
174
828
14
2,912
2,745
112 Other
Australia
113
114
Other
7,938
6,479
1,459
7,205
6,304
901
6,636
5,495
1,141
7,142
5,987
1,155
8,158
6,820
1,338
9,063
7,624
1,439
8,259
7,252
1,007
7,992
6,963
1,029
7,827
6,788
1,039
9,449
8,199
1,250
13,972
12,099
1,339
534
11,690
10,517
424
749
11,883
10,221
594
1,068
15,921
13,494
1,304
1,123
14,067
11,759
653
1,655
17,987
14,987
898
2,102
18,463
15,822
819
1,822
18,268
16,112R
725
1,431
18,646
16,570
662
1,414
17,823
15,939
960
924
93
94
95
96
97
98
99
100
101
102
103
104
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
M i d d l e Eastern oil-exporting countries13
Other
1 1 5 N o n m o n e t a r y international and r e g i o n a l o r g a n i z a t i o n s
International15
116
Latin American regional16
117
Other regional17
118
..
11. S i n c e D e c e m b e r 1 9 9 2 , h a s e x c l u d e d B o s n i a , Croatia, a n d S l o v e n i a .
12. I n c l u d e s the B a n k f o r I n t e r n a t i o n a l S e t t l e m e n t s . S i n c e D e c e m b e r 1 9 9 2 , h a s
i n c l u d e d all parts o f the f o r m e r U . S . S . R . ( e x c e p t R u s s i a ) , a n d B o s n i a , Croatia, and S l o v e n i a .
13. C o m p r i s e s B a h r a i n , Iran, Iraq, K u w a i t , O m a n , Qatar, S a u d i A r a b i a , a n d U n i t e d A r a b
E m i r a t e s ( T r u c i a l States).
14. C o m p r i s e s A l g e r i a , G a b o n , L i b y a , a n d N i g e r i a .
15. P r i n c i p a l l y the International B a n k f o r R e c o n s t r u c t i o n and D e v e l o p m e n t . E x c l u d e s
" h o l d i n g s o f d o l l a r s " o f the International M o n e t a r y F u n d .
16. P r i n c i p a l l y the I n t e r - A m e r i c a n D e v e l o p m e n t B a n k .
17. A s i a n , A f r i c a n , M i d d l e E a s t e r n , and E u r o p e a n r e g i o n a l o r g a n i z a t i o n s , e x c e p t the B a n k
f o r International S e t t l e m e n t s , w h i c h i s i n c l u d e d in " O t h e r E u r o p e . "
Bank-Reported Data
3.18
A55
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1999
Area or country
1996
1998
1997
Apr.
May
June
July
Aug.
Sept.
Oct."
750,179
1 Total, all foreigners
599,925
708,225
735,058
735,992
750,581
750,859
720,597
731,139 r
758,600
2 Foreign countries
597,321
705,762
731,441
730,739
746,094
746,786
716,190
727,983 r
755,010
745,255
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
233,320
1,043
7,187
2,383
1,070
15,251
15,923
575
7,283
5,697
827
669
789
5,735
4,223
46,874
1,982
106,349
53
9,407
236,299
2,389
7,533
2,297
1,349
15,942
17,188
651
6,727
7,251
970
1,060
787
2,949
4,141
48,468
1,943
105,248
55
9,351
265,789
2,902
9,811
2,141
1,480
15,800
18,367
585
6,434
8,588
753
1,134
1,016
4,516
2,950
65,488
1,918
112,946
54
8,906
299,977
2,514
10,028
1,901
1,730
18,253
20,793
551
6,783
8,724
717
1,122
768
6,178
3,005
75,544
2,288
130,859
54
8,165
292,697
3,855
9,214
1,763
2,197
19,944
23,965
628
7,451
9,334
821
1,056
831
4,606
3,199
66,927
2,219
125,262
50
9,375
305,153r
3,080
7,463
1,442
1,915
19,040r
23,558 r
659
7,747
10,132
583
1,222
782
3,700
4,082
71,866
2,268
137,646r
49
7,919
316,097
2,335
7,229
1,756
1,855
19,253
22,995
663
7,957
9,425
1,252
1,342
814
5,104
4,184
90,187
2,383
129,305
50
8,008
293,346
2,633
9,575
2,352
1,669
21,527
23,616
743
6,670
8,940
949
1,691
871
4,073
4,292
78,448
2,390
114,182
51
8,674
3 Europe
Austria
4
Belgium and Luxembourg
5
Denmark
6
7
Finland
8
France
9
Germany
in
Greece
ii
Italy
Netherlands
17.
13
Norway
14
Portugal
15
Russia
16
Spain
Sweden
17
Switzerland
18
19
Turkey
United Kingdom
70
Yugoslavia2
71
Other Europe and other former U.S.S.R.3
22
26,436
27,189
47,036
40,726
41,116
37,454
31,957
32,109
37,197
35,761
74 Latin America and Caribbean
75
Argentina
Bahamas
76
Bermuda
77
78
Brazil
79
British West Indies . .
30
Chile
31
Colombia
37
Cuba
33
Ecuador
Guatemala
34
35
Jamaica
36
Mexico
Netherlands Antilles
37
38
Panama
39
40
Uruguay
Venezuela
41
42
Other
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
343,730
8,924
89,379
8,782
21,696
145,471
7,913
6,945
0
1,311
886
424
19,428
17,838
4,364
3,491
629
2,129
4,120
342,720
9,553
96,455
5,011
16,213
153,749
8,255
6,523
0
1,400
1,127
239
21,227
6,779
3,584
3,275
1,126
3,089
5,115
365,185
10,075
84,023
4,426
14,803
193,351
7,810
6,106
0
1,135
1,062
326
19,470
5,711
4,329
3,111
772
3,138
5,537
352,496
10,318
78,480
6,276
14,893
184,978
7,545
5,877
0
1,104
1,157
327
19,316
5,867
3,298
3,053
724
3,245
6,038
326,063
10,776
71,996
6,111
14,870
166,508
7,531
5,570
0
1,069
1,033
303
18,638
5,484
3,353
2,975
1,050
3,479
5,317
311,721
10,482
77,049
7,813
14,629
146,859
7,153
5,590
0
993
1,075
311
18,978
5,101
3,064
2,710
1,105
3,501
5,308
310,159
10,257
77,674
9,747
13,844
137,214r
6,900
5,046
0
889
1,053
322
17,819
14,032
2,898
2,516
1,049
3,460
5,439r
320,987
10,296
85,386
8,481
14,010
142,500
6,810
4,821
0
844
1,064
330
18,255
13,298
2,941
2,534
946
3,325
5,146
334,078
10,142
87,085
9,815
14,216
158,298
6,846
4,791
0
793
1,084
318
17,780
7,497
2,904
2,442
778
4,096
5,193
43
122,478
125,092
98,606
79,297
77,699
74,693
72,240
73,247 r
72,449
72,861
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
922
13,991
2,200
2,651
768
59,549
18,162
1,689
2,259
10,790
10,532
1,261
1,041
9,080
1,440
1,942
1,166
46,712
8,289
1,465
1,807
16,130
8,273
3,421
866
6,309
1,703
1,911
803
32,703
11,160
1,546
1,732
11,669
5,474
3,006
763
4,977
1,458
2,061
1,236
30,664
12,326
1,808
1,623
10,569
7,208
3,745
870
7,102
1,569
1,760
1,955
27,093
11,317
1,669
1,850
10,127
5,636
3,144
904
5,333
1,708
1,791
1,433
25,900
12,753
1,380
1,683
9,396
6,815
2,758
937
4,969
1,728
1,711
1,669
26,226
12,194
1,279
1,549
11,21 r
7,016
2,032
790
5,224
1,736
1,689
951
27,978
11,093
1,491
1,432
11,379
6,654
1,841
802
4,740
1,856
1,636
857
28,339
12,432
1,562
1,373
10,665
6,758
2,776
247
524
584
0
420
1,001
3,530
247
511
805
0
1,212
755
3,122
257
372
643
0
936
914
2,688
228
463
567
0
257
1,173
2,448
221
444
640
0
288
855
2,629
241
454
724
0
340
870
2,499
252
431
598
0
297
921
2,178
209
444
449
0
280
796
2,293
225
437
506
0
323
802
2,299
251
439
589
0
253
767
63 Other
Australia
64
65
Other
5,709
4,577
1,132
6,341
5,300
1,041
6,637
6,173
464
6,544
6,060
484
6,546
6,093
453
5,970
5,636
334
5,076
4,811
265
5,137
4,907
230
5,987
5,770
217
6,910
6,659
251
6
66 Nonmonetary international and regional organizations . . .
2,604
2,463
3,617
5,253
4,487
4,073
4,407
3,156
3,590
4,924
23 Canada
44
45
46
47
48
49
5n
51
57
53
54
55
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries4
Other
56
57
58
59
6n
61
62
Morocco
South Africa
Zaire
Oil-exporting countries5
Other
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 2000
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States 1
Millions of dollars, end of period
1999
Type of claim
1996
1997
1998
Apr.
May
735,992
35,787
485,425
93,733
23,938
69,795
121,047
750,581
36,616
492,192
99,864
25,234
74,630
121,909
June
July
Aug.r
Sept.
720,597
38,465
460,268
99,715
24,859
74,856
122,149
731,139
35,689
457,930
108,961
23,716
85,245
128,559
758,600
34,995
488,320
102,051
24,407
77,644
133,234
1
Total
743,919
852,852
875,954 r
2
3
4
5
6
7
8
Banks' claims
Foreign public borrowers
Own foreign offices2
Unaffiliated foreign banks
Deposits
Other
All other foreigners
599,925
22,216
341,574
113,682
33,826
79,856
122,453
708,225
20,581
431,685
109,230
30,995
78,235
146,729
735,058
23,540
484,525
106,281
27,196
79,085
120,712
143,994
77,657
144,627
73,110
140,896R
79,363R
147,601R
94,575R
141,962
87,222
51,207
53,967
47,914R
42,670R
40,604
15,130
17,550
13,619
10,356
Oct.p
14,136
Claims of banks' domestic customers3
Deposits
Negotiable and readily transferable
instruments4
12
Outstanding collections and other
claims
9
10
11
898,460 r
750,859
37,344
488,803
104,102
24,164
79,938
120,610
900,562
750,179
40,833
486,674
96,945
24,791
72,154
125,727
MEMO
13
Customer liability on acceptances
10,388
9,624
14
Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States5
39,661
33,816
4,450R
4,519
39,978
33,474
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
31,210
29,165
4,614
32,857
32,336
27,750
33,827
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.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States 1
Millions of dollars, end of period
1998
Maturity, by borrower and area2
1995
1996
1999'
1997
Dec.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
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
Africa
All other3
Maturity of more than one year
14
Europe
Canada
15
16
Latin America and Caribbean
17
18
Africa
19
All other3
June
Sept.p
224,932
258,106
276,550
250,479 r
242,360
259,215
270,119
178,857
14,995
163,862
46,075
7,522
38,553
211,859
15,411
196,448
46,247
6,790
39,457
205,781
12,081
193,700
70,769
8,499
62,270
186,585r
13,669r
172,916r
63,894
9,840
54,054
175,402
20,902
154,500
66,958
13,290
53,668
186,861
24,656
162,205
72,354
11,667
60,687
198,303
22,809
175,494
71,816
11,980
59.836
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
97,207
33,964
2,211
4,188
68,679 r
10,948r
81,846r
18,006r
1,835
5,271
66,875
7,832
71,122
21,347
1,571
6,655
84,721
6,705
65,821
21,977
1,543
6,094
82,744
8,598
79,202
20,844
1,119
5,796
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
2,525
42,049
10,235
1,236
1,484
14,923
3,140
33,443
10,018
1,233
1,137
16,949
2,766
33,539
10,972
1,160
1,572
18,764
3,261
36,910
10,471
1,105
1,843
18,440
3,139
37,046
10,644
1,087
1,460
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
Mar.
2. Maturity is time remaining until maturity,
3. Includes nonmonetary international and regional organizations.
Bank-Reported Data
3.21
CLAIMS ON FOREIGN COUNTRIES
A57
Held by U.S. and Foreign Offices of U.S. Banks 1
Billions of dollars, end of period
1997
Area or country
1995
1999
1998
1996
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
Junep
551.9
645.3
678.8
711.0
719.3
739.1
749.7
738.9
714.1
678.3
667.3
206.0
13.6
19.4
27.3
11.5
3.7
2.7
6.7
82.4
10.3
28.5
228.3
11.7
16.6
29.8
16.0
4.0
2.6
5.3
104.7
14.0
23.7
250.0
9.4
17.9
34.1
20.2
6.4
3.6
5.4
110.6
15.7
26.8
247.8
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
249.0
11.2
15.5
25.5
19.7
7.3
4.8
5.6
120.1
13.5
25.8
278.3
16.2
20.5
28.8
19.5
8.3
3.1
6.9
134.9
16.5
23.7
268.3
15.1
19.9
28.9
18.0
8.1
2.2
7.5
130.4
15.6
22.8
255.8
13.4
18.4
31.1
11.5
7.9
2.3
8.3
121.5
16.7
24.7
246.4
14.1
19.5
32.0
13.2
8.9
3.6
7.3
110.6
15.7
21.3
255.7
14.8
18.4
29.2
11.6
10.9
2.3
7.8
122.7
16.5
21.6
13 Other industrialized countries
14
Austria
15
Denmark
Finland
16
Greece
17
18
Norway
19
Portugal
Spain
20
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia
50.2
.9
2.6
.8
5.7
3.2
1.3
11.6
1.9
4.7
1.2
16.4
65.7
1.1
1.5
.8
6.7
8.0
.9
13.2
2.7
4.7
2.0
24.0
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
28.0
64.5
1.5
2.4
1.3
5.1
3.6
.9
11.7
4.5
8.2
2.2
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
72.1
1.9
2.1
1.4
5.8
3.4
1.3
15.2
6.5
9.6
5.0
20.0
71.6
2.1
2.8
1.6
5.8
3.3
1.1
17.5
5.2
10.3
3.7
18.2
68.5
1.4
2.2
1.5
6.0
3.2
1.3
13.6
4.8
10.6
3.5
20.3
75.8
2.5
3.2
1.4
6.2
2.9
1.3
14.3
5.0
10.1
3.4
25.3
76.5
2.7
2.8
.8
5.7
2.9
1.2
15.8
4.7
10.1
3.4
26.5
25 OPEC2
2.6
Ecuador
27
Venezuela
2.8
Indonesia
29
Middle East countries
African countries
30
22.1
.7
2.7
4.8
13.3
.6
19.7
1.1
2.4
5.2
10.7
.4
22.3
.9
2.1
5.6
12.5
1.2
22.9
1.2
2.2
6.5
11.8
1.1
26.0
1.3
2.5
6.7
14.4
1.2
25.7
1.3
3.3
5.5
14.3
1.4
25.3
1.2
3.2
5.1
15.5
.3
25.9
1.2
3.1
4.7
16.1
.8
27.1
1.2
3.2
4.8
17.0
1.0
26.0
1.1
3.4
4.5
16.6
.4
25.9
1.0
3.1
4.9
16.4
.4
112.6
130.3
140.6
137.0
138.7
147.4
141.7
140.6
147.9
143.7
145.3
Other
12.9
13.7
6.8
2.9
17.3
.8
2.8
14.3
20.7
7.0
4.1
16.2
1.6
3.3
16.4
27.3
7.6
3.3
16.6
1.4
3.4
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
27.2
9.1
3.6
17.9
2.2
4.4
22.3
24.9
9.3
3.4
18.4
2.2
4.6
22.3
24.2
8.3
3.2
25.3
2.2
5.4
23.5
23.6
8.5
3.2
18.9
2.2
5.4
22.0
24.7
8.2
3.1
18.0
2.1
5.5
39
40
41
42
43
44
45
46
47
Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
1.8
9.4
4.4
.5
19.1
4.4
4.1
4.9
4.5
2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1
3.6
10.6
5.3
.8
16.3
6.4
7.0
7.3
4.7
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
3.9
11.3
4.9
.9
14.5
4.7
5.4
4.9
3.7
2.8
12.2
5.3
.9
12.9
5.1
4.7
5.3
3.1
3.0
12.8
5.3
1.1
13.7
5.7
5.1
4.6
2.9
5.1
11.7
5.5
1.1
13.3
5.9
5.3
4.5
3.0
5.3
11.9
6.5
2.0
14.9
5.9
5.6
4.1
2.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
.4
.7
.0
.9
.7
.7
.1
.9
1.1
.7
.0
.9
.9
.7
.0
.9
.9
.6
.0
.8
1.0
.6
.0
1.1
1.5
.6
.0
.8
1.7
.5
.0
1.1
1.3
.5
.0
1.0
1.4
.5
.0
1.2
1.4
.5
.0
.9
52 Eastern Europe
53
Russia4
Other
54
4.2
1.0
3.2
6.9
3.7
3.2
7.1
4.2
2.9
9.8
5.1
4.7
9.1
5.1
4.0
12.0
7.5
4.6
10.9
6.8
4.1
6.0
2.8
3.2
5.2
2.2
3.1
6.1
2.2
3.9
5.1
1.9
3.2
99.2
11.0
6.3
32.4
10.3
1.4
.1
25.0
13.1
.1
57.6
134.7
20.3
4.5
37.2
26.1
2.0
.1
27.9
16.7
.1
59.6
129.6
16.1
7.9
35.1
15.8
2.6
.1
35.2
16.7
.3
57.6
138.9
19.8
9.8
45.7
21.7
2.1
.1
27.2
12.7
.1
80.8
139.0
23.3
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1
129.3
29.2
9.0
24.9
14.0
3.2
.1
33.8
15.0
.1
101.3
125.8
24.7
9.3
34.2
10.5
3.3
.1
30.0
13.5
.2
95.7
121.9
29.0
10.4
30.6
6.0
4.0
.2
30.6
11.1
.2
104.5
94.1
33.0
4.6
15.4
2.6
3.9
.1
23.4
11.2
.2
115.5
83.0
30.2
3.8
6.3
2.7
3.9
.1
22.8
13.1
.2
97.3
70.6
16.1
5.6
7.0
1.2
3.9
.1
21.9
14.6
.1
88.1
1 Total
2 G-10 countries and Switzerland
Belgium and Luxembourg
3
France
4
Germany
5
6
Italy
Netherlands
7
Sweden
8
9
Switzerland
10
United Kingdom
11
Canada
Japan
12
31 Non-OPEC developing countries
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
55 Offshore banking centers
56
Bahamas
Bermuda
57
58
Cayman Islands and other British West Indies
59
Netherlands Antilles
60
Panama5
61
Lebanon
62
Hong Kong, China
63
Singapore
64
Other*
7
65 Miscellaneous and unallocated
1. Data after June 1999 are not available.
The banking offices covered by these data include U.S. offices and foreign branches of U.S.
banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered include
U.S. agencies and branches of foreign banks. Beginning March 1994, the data include large
foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A58
International Statistics • February 2000
3.22
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
1996
1999
1997
Mar.
June
Sept.
Dec.
Mar.
June
1 Total
46,448
61,782
57,382
55,681
51,433
49,279
46,570
46,663
49,337
2 Payable in dollars
3 Payable in foreign currencies
33,903
12,545
39,542
22,240
41,543
15,839
41,601
14,080
40,026
11,407
38,410
10,869
36,668
9,902
34,030
12,633
36,032
13,305
By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
24,241
12,903
11,338
33,049
11,913
21,136
26,877
12,630
14,247
25,691
12,911
12,780
22,322
11,988
10,334
19,331
9,812
9,519
19,255
10,371
8,884
22,458
11,225
11,233
25,058
13,205
11,853
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
22,207
11,013
11,194
28,733
12,720
16,013
30,505
10,904
19,601
29,990
10,107
19,883
29,111
9,537
19,574
29,948
10,276
19,672
27,315
10,978
16,337
24,205
9,999
14,206
24,279
10,935
13,344
10
11
Payable in dollars
Payable in foreign currencies
21,000
1,207
27,629
1,104
28,913
1,592
28,690
1,300
28,038
1,073
28,598
1,350
26,297
1,018
22,805
1,400
22,827
1,452
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
15,622
369
999
1,974
466
895
10,138
23,179
632
1,091
1,834
556
699
17,161
18,027
186
1,425
1,958
494
561
11,667
18,793
127
1,545
2,518
472
130
12,185
15,468
75
1,699
2,441
484
189
8,765
12,905
150
1,457
2,167
417
179
6,610
12,589
79
1,097
2,063
1,406
155
5,980
16,098
50
1,178
1,906
1,337
141
9,729
19,578
70
1,287
1,959
2,104
143
13,097
632
1,401
2,374
1,027
19
Canada
539
389
693
781
320
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,783
59
147
57
866
12
2
1,668
236
50
78
1,030
17
1
1,386
141
229
143
604
26
1
965
17
86
91
517
21
1
1,320
6
49
76
845
51
1
1,351
1
73
154
834
23
1
1,495
7
101
152
957
59
2
1,528
1
78
137
1,064
22
2
1,369
1
52
131
944
19
1
27
28
29
Asia
Japan
Middle Eastern oil-exporting countries1
5,988
5,436
27
6,423
5,869
25
4,387
4,102
27
4,197
3,964
18
4,315
3,869
0
4,005
3,754
0
3,785
3,612
0
3,475
3,337
1
3,217
3,035
2
30
31
Africa
Oil-exporting countries2
150
122
38
0
60
0
33
0
29
0
31
0
28
0
31
2
29
0
66
340
643
676
651
650
665
545
545
7,700
331
481
767
500
413
3,568
9,767
479
680
1,002
766
624
4,303
10,228
666
764
1,274
439
375
4,086
9,951
565
840
1,068
443
407
4,041
9,987
557
612
1,219
485
349
3,743
11,010
623
740
1,408
440
507
4,286
10,030
278
920
1,392
429
499
3,697
8,580
229
654
1,088
361
535
3,008
8,718
189
656
1,143
432
497
2,959
32
33
34
35
36
37
38
39
Allother
3
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,040
1,090
1,175
1,347
1,206
1,504
1,390
1,597
1,670
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,740
1
205
98
56
416
221
2,574
63
297
196
14
665
328
2,176
16
203
220
12
565
261
2,051
27
174
249
5
520
219
2,285
14
209
246
27
557
196
1,840
48
168
256
5
511
230
1,618
14
198
152
10
347
202
1,612
11
225
107
7
437
155
1,674
19
180
112
5
490
149
10,421
3,315
1,912
13,422
4,614
2,168
14,966
4,500
3,111
14,672
4,372
3,138
13,611
3,995
3,194
13,539
3,779
3,582
12,342
3,827
2,852
10,428
2,715
2,479
10,039
2,753
2,209
48
49
50
Japan
Middle Eastern oil-exporting countries
51
52
Africa
Oil-exporting countries2
619
254
1,040
532
874
408
833
376
921
354
810
372
794
393
727
377
832
392
53
Other3
687
840
1,086
1,136
1,101
1,245
1,141
1,261
1,346
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
A59
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1999
1998
Type of claim, and area or country
1995
1996
1997
Mar.
June
Sept.
Dec.
Mar.
June
1 Total
52,509
65,897
68,128
71,004
63,188
67,976
77,462
68,973
63,804
2 Payable in dollars
3 Payable in foreign currencies
48,711
3,798
59,156
6,741
62,173
5,955
65,359
5,645
57,587
5,601
62,034
5,942
72,171
5,291
63,988
4,985
56,968
6,836
By type
4 Financial claims
Deposits
5
Payable in dollars
6
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies
27,398
15,133
14,654
479
12,265
10,976
1,289
37,523
21,624
20,852
772
15,899
12,374
3,525
36,959
22,909
21,060
1,849
14,050
11,806
2,244
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
37,262
15,406
13,374
2,032
21,856
19,867
1,989
46,260
30,199
28,549
1,650
16,061
14,049
2,012
38,136
18,686
17,101
1,585
19,450
17,419
2,031
31,877
13,350
11,636
1,714
18,527
14,762
3,765
11 Commercial claims
12
Trade receivables
13
Advance payments and other claims
25,111
22,998
2,113
28,374
25,751
2,623
31,169
27,536
3,633
30,703
26,888
3,815
30,847
26,764
4,083
30,714
26,330
4,384
31,202
27,202
4,000
30,837
26,724
4,113
31,927
27,791
4,136
14
15
Payable in dollars
Payable in foreign currencies
23,081
2,030
25,930
2,444
29,307
1,862
29,223
1,480
29,599
1,248
28,793
1,921
29,573
1,629
29,468
1,369
30,570
1,357
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
7,609
193
803
436
517
498
4,303
11,085
185
694
276
493
474
7,922
14,999
406
1,015
427
677
434
10,337
14,187
378
902
393
911
401
9,289
14,091
518
796
290
975
403
9,639
14,473
496
1,140
359
867
409
9,849
12,294
661
864
304
875
414
7,766
12,800
469
913
302
955
530
8,357
13,898
457
1,368
367
959
504
8,589
2,851
3,442
3,313
4,688
3,020
4,090
2,503
3,111
2,828
14,500
1,965
81
830
10,393
554
32
20,032
1,553
140
1,468
15,536
457
31
15,543
2,308
108
1,313
10,462
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
15,758
2,105
63
710
10,960
1,122
50
27,714
403
39
835
24,388
1,245
55
18,825
666
41
1,112
14,621
1,583
72
11,486
467
39
1,102
7,393
1,702
71
1,579
871
3
2,221
1,035
22
2,133
823
11
2,174
791
9
2,376
886
12
2,121
928
13
3,027
1,194
9
2,648
942
8
2,801
949
5
Africa
Oil-exporting countries
276
5
174
14
319
15
325
16
155
15
157
16
159
16
174
26
228
5
All other3
583
569
652
720
732
663
563
578
636
9,824
231
1,830
1,070
452
520
2,656
10,443
226
1,644
1,337
562
642
2,946
12,120
328
1,796
1,614
597
554
3,660
12,854
232
1,939
1,670
534
476
4,828
12,882
216
1,955
1,757
492
418
4,664
13,029
219
2,098
1,502
463
546
4,681
13,246
238
2,171
1,822
467
483
4,769
12,782
281
2,173
1,599
415
367
4,529
12,961
286
2,094
1,660
389
385
4,615
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
35
36
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,951
2,165
2,660
2,882
2,779
2,291
2,617
2,983
2,855
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
4,364
30
272
898
79
993
285
5,276
35
275
1,303
190
1,128
357
5,750
27
244
1,162
109
1,392
576
5,481
13
238
1,128
88
1,302
441
6,082
12
359
1,183
110
1,462
585
5,773
39
173
1,062
91
1,356
566
6,296
24
536
1,024
104
1,545
401
5,930
10
500
936
117
1,431
361
6,278
21
583
887
127
1,478
384
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries'
7,312
1,870
974
8,376
2,003
971
8,713
1,976
1,107
7,638
1,713
987
7,367
1,757
1,127
7,190
1,789
967
7,192
1,681
1,135
7,080
1,486
1,286
7,690
1,511
1,465
55
56
Africa
Oil-exporting countries
654
87
746
166
680
119
613
122
657
116
740
128
711
165
685
116
738
202
57
Other3
1,006
1,368
1,246
1,235
1,080
1,691
1,140
1,377
1,405
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
A60
3.24
International Statistics • February 2000
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1999
Transaction, and area or country
1997
1999
1998
Jan.—
Oct.
Apr.
May
June
July
Aug.
Sept.
Oct."
188,099
179,783
178,428
166,212
175,565
172,191
219,295
211,548
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
1,097,958
1,028,361
1,574,185
1,524,189
1,845,350
1,765,070
222,900 r
205,307 r
185,646 r
177,108 r
179,785
167,878
3 Net purchases, or sales (—)
69,597
49,996
80,280
17,593 r
8,538 r
11,907
8,316
12,216
3,374
7,747
4 Foreign countries
69,754
50,376
80,312
17,577 r
8,549 r
11,893
8,361
12,225
3,359
7,773
62,688
6,641
9,059
3,831
7,848
22,478
-1,406
5,203
383
2,072
4,787
472
342
68,124
5,672
9,195
8,249
5,001
23,952
-4,689
760
-1,449
-12,347
-1,171
639
-662
74,173
4,201
9,355
5,077
3,776
35,810
1,519
2,192
-334
1,387
4,883
389
986
11,493
534
1,814
417
1,934
3,758
-129
5,596 r
-355
905
1,458
37
30
5,260
-206
971
738
481
1,822
-159
2,049 r
419
574
464
138
268
7,663
919
1,376
1,181
1,452
1,300
401
2,474
64
1.271
681
81
-61
6,171
-55
-354
404
-2,822
8,498
153
2,935
-273
-671
-452
14
32
9,568
269
1,322
566
827
4,578
-50
846
174
1,666
1,269
-39
60
7,237
146
111
-538
1,185
4,775
-927
-4,688
-26
1,463
2,652
61
239
7,767
1,033
1,728
164
-1,404
3,778
531
-3,163
-15
2,372
1,696
-23
304
-157
-380
-32
16
-11
14
-45
15
-26
610,116
475,958
905,782
727,044
722,223
509,968
70,044
47,516
66,558
49,145
67,569
52,197
75,778
47,984
76,270
48,902
80,374
55,131
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
-9
BONDS2
19 Foreign purchases
20 Foreign sales
64,64 l r
46,667
21 Net purchases, or sales ( - )
134,158
178,738
212,255
22,528
17,413
15,372
27,794
17,974 r
27,368
25,243
22 Foreign countries
133,595
179,081
212,567
22,468
17,326
15,383
27,520
18,001 r
27,037
26,107
71,631
3,300
2,742
3,576
187
54,134
6,264
34,733
2,155
16,996
9,357
1,005
811
130,057
3.386
4,369
3,443
4,826
99,637
6,121
23,938
4,997
12,662
8,384
190
1,116
119,465
1,549
6,623
2,130
3,662
88,993
3,565
50,128
2,176
35,021
13,143
1,008
1,204
10,527
-36
-43
106
467
8,617
319
5,967
364
4,904
1,215
331
56
10,911
352
797
168
128
8,310
413
3,382
-717
3,224
0
82
31
9,553
258
321
187
-26
7,651
184
4,603
-114
1,458
310
-307
6
18,196
447
1,707
336
705
13,582
-23
5,088
-182
4,031
3,020
122
288
10,736r
160
31r
144
322
8,273 r
286
5,558
-219
1,179
827
59
402
13,724
24
752
279
496
9,766
908
5,490
257
6,698
4,375
-189
149
13,819
53
1,202
103
360
10,112
263
6,398
178
4,847
2,081
343
259
563
-343
-312
60
87
-11
274
-27
331
-864
23
24
25
26
27
28
29
30
31
32
33
34
35
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
-40,942
756,015
796,957
-48,171
1,451,704
1,499,875
37 Stocks, net purchases, or sales ( —)
38
Foreign purchases
39
Foreign sales
40 Bonds, net purchases, or sales (—)
41
Foreign purchases
42
Foreign sales
6,227
929,923
923.696
-17,350
1,328,281
1,345,631
13,809
922,043
908,234
-8,812
686,390
695,202
5,503 r
98,607 r
93,104 r
-5,147
73,376
78,523
2,455 r
86,345 r
83,890 r
-499
72,372
72,871
6,220
97,622
91,402
8,969
79,013
70,044
-2,236
106,264
108,500
-4,777
63,975
68,752
594
91,851
91,257
-6,421
70,061
76,482
1,069
97,456
96,387
1,132
66,661
65,529
-7,930
96,608
104,538
-1,220
62,533
63,753
-89,113
-11,123
4,997
356 r
l,956 r
15,189
-7,013
-5,827
2,201
-9,150
44 Foreign countries
-88,921
-10,778
4,678
474 r
2,056 r
15,219
-7,104
-6,010
2,271
-9,156
45
46
47
48
49
50
51
-29,874
-3,085
-25,258
-25,123
-10,001
-3,293
-2,288
12,632
-1,901
-13,798
-3,992
-1,742
-1,225
-2,494
52,136
-682
-11,504
-33,631
-35,588
18
-1,659
9,710
-449
-4,433r
-3,946
-3,445
20
-428
5,845 r
-537
-2,351r
-494r
-704
112
-519
16,749
1,202
-2,785
194
-1.241
-25
-116
-3,759
-1,055
445
-3,330
-4,323
-21
616
-1,829
525
-299
-4,303
-4,805
4
-108
2,226
303
602
-210
-565
-116
-534
2,331
321
-1,827
-9,485
-10,006
63
-559
-192
-345
319
-118
-100
-30
91
183
-70
6
43 Net purchases, or sales (—), of stocks and bonds
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
52 Nonmonetary international and
regional organizations
....
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions
3.25
MARKETABLE U.S. TREASURY BONDS A N D NOTES
A61
Foreign Transactions 1
Millions of dollars; net purchases, or sales (—) during period
1999
1999
Area or country
1997
1998
Jan.—
Oct.
Apr.
May
June
July
Aug.
Sept.
Oct."
1 Total estimated
184,171
49,039
-10,990
-3,271
5,638
-609
-6,242
19,118
87
-9,734
2 Foreign countries
183,688
46,570
-11,292
-3,257
5,316
-815
-6,226
18,847
-4
-9,905
3
4
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada
144,921
3,427
22,471
1,746
-465
6,028
98,253
13,461
-811
23,797
3,805
144
-5,533
1,486
5,240
14,384
4,271
615
-41,342
1,074
1,168
1,494
1,013
-3,312
-22,588
-20,191
7,679
-15,394
476
-653
-256
-462
-302
-6,672
-7,525
1,205
-3,997
121
-290
797
-21
-121
-4,528
45
2,580
-5,796
753
538
-77
579
971
-7,215
-1,345
460
-5,740
37
643
-1,224
-229
-216
1,385
-6,136
1,382
1,771
105
1,438
453
876
-714
1,934
-2,321
1,339
-9,268
12
-963
-423
-45
234
-3,534
-4,549
1,459
-405
-351
78
130
-6
365
-1,854
1,233
-657
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
-2,554
655
-549
-2,660
39,567
20,360
1,524
1,041
-3,662
59
9,523
-13,244
27,433
13,048
751
-2,364
-2,917
241
-282
-2,876
26,271
16,217
-1,800
817
5,200
2
3,654
1,544
5,973
6,475
-11
-230
1,364
88
-123
1,399
5,631
1,284
-198
-64
-1,403
-31
-52
-1,320
6,489
4,905
-246
-319
693
131
-43
605
-2,319
-394
-178
-64
8,695
15
1,650
7,030
6,832
2,913
-622
832
3,003
10
2,982
11
5,344
5.259
-302
-240
-9,911
25
-1,777
-8,159
942
344
-202
328
483
621
170
2,469
1,502
199
302
-10
669
-14
15
0
322
223
122
206
-8
192
-16
-101
191
271
233
175
91
98
-9
171
184
-1
183,688
43,959
139,729
46,570
4,123
42,447
-11,292
-12,498
1,206
-3,257
-6,696
3,439
5,316
3,223
2,093
-815
397
-1,212
-6,226
-1,773
-4,453
18,847
2,394 r
16,453 r
7,636
-12
-16,554
2
7,813
1
65
0
2,887
0
238
0
-38
0
130
1
6
1
8
9
10
11
17
13
14
15
16
17
18
19
Japan
Africa
Other
20 Nonmonetary international and regional organizations
International
71
22
Latin American regional
MEMO
73 Foreign countries
74
Official institutions
Other foreign
25
Oil-exporting countries
26 Middle East 2
27
1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
-4
— 1,714 r
l,710 r
401
0
-9,905
-1,248
-8,657
201
0
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
A62
3.28
International Statistics • February 2000
FOREIGN EXCHANGE RATES A N D INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U S . DOLLAR 1
Currency units per dollar except as noted
1999
1997
1999
July
Aug.
Sept.
Oct.
Nov.
Dec.
Exchange Rates
COUNTRY/CURRENCY UNIT
1
2
3
4
5
6
7
8
9
10
11
12
Australia/dollar2
Austria/schilling
Belgium/franc
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro 3
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
13
14
15
16
17
18
19
20
21
22
23
Hong Kong/dollar
India/rupee
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar
Norway/krone
Portugal/escudo
24
25
26
27
28
29
30
31
32
33
34
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound"
Venezuela/bolivar
74.37
12.206
35.81
1.0779
1.3849
8.3193
6.6092
n.a.
5.1956
5.8393
1.7348
273.28
62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
n.a.
5.3473
5.8995
1.7597
295.70
64.54
n.a.
n.a.
1.8207
1.4858
8.2781
6.9900
1.0653
n.a.
n.a.
n.a.
306.30
65.62
n.a.
n.a.
1.8023
1.4890
8.2776
7.1792
1.0370
n.a.
n.a.
n.a.
313.52
64.46
n.a.
n.a.
1.8859
1.4932
8.2772
7.0144
1.0605
n.a.
n.a.
n.a.
307.84
64.95
n.a.
n.a.
1.8987
1.4771
8.2774
7.0828
1.0497
n.a.
n.a.
n.a.
311.68
65.09
n.a.
n.a.
1.9688
1.4776
8.2775
6.9450
1.0706
n.a.
n.a.
n.a.
307.71
63.88
n.a.
n.a.
1.9314
1.4674
8.2782
7.2019
1.0328
n.a.
n.a.
n.a.
318.24
64.10
n.a.
n.a.
1.8442
1.4722
8.2794
7.3597
1.0110
n.a.
n.a.
n.a.
326.19
7.7431
36.36
151.63
1,703.81
121.06
2.8173
7.918
1.9525
66.25
7.0857
175.44
7.7467
41.36
142.48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25
7.7594
43.13
n.a.
n.a.
113.73
3.8000
9.553
n.a.
52.94
7.8071
n.a.
7.7603
43.36
n.a.
n.a.
119.33
3.8000
9.370
n.a.
52.61
7.9029
n.a.
7.7638
43.50
n.a.
n.a.
113.23
3.8000
9.398
n.a.
52.59
7.8036
n.a.
7.7665
43.60
n.a.
n.a.
106.88
3.8000
9.341
n.a.
52.30
7.8361
n.a.
7.7696
43.55
n.a.
n.a.
105.97
3.8000
9.575
n.a.
51.42
7.7402
n.a.
7.7718
43.46
n.a.
n.a.
104.65
3.8000
9.416
n.a.
51.22
7.9367
n.a.
7.7728
43.52
n.a.
n.a.
102.58
3.8000
9.427
n.a.
50.87
8.0113
n.a.
1.4857
4.6072
947.65
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
1.6951
6.1191
1,189.84
n.a.
70.868
8.2740
1.5045
32.322
37.887
161.72
606.82
1.6958
6.1182
1,189.10
n.a.
71.912
8.4431
1.5474
32.338
37.143
157.51
611.17
1.6787
6.1302
1,198.31
n.a.
71.868
8.2589
1.5093
32.076
38.060
160.58
615.95
1.6965
6.0563
1,201.00
n.a.
71.942
8.2264
1.5262
31.848
40.060
162.47
625.41
1.6757
6.1029
1,205.29
n.a.
71.747
8.1492
1.4896
31.828
39.416
165.72
630.75
1.6699
6.1424
1,176.98
n.a.
72.040
8.3586
1.5543
31.794
38.749
162.05
634.80
1.6745
6.1503
1,136.80
n.a.
72.018
8.4910
1.5841
31.625
38.227
161.32
644.28
Indexes 4
NOMINAL
35 Broad (January 1997= 100) 5
36 Major currencies (March 1973 = 100) 6
3 / Other important trading partners (January
1997 = 100) 7
104.44
91.24
116.48
95.79
116.87
94.07
117.97
96.31
117.00
94.31
116.38
92.92
115.88
91.94
116.08
92.87
116.09
93.23
104.67
126.03
129.94
128.73
129.73
130.60
131.06
129.93
129.34
91.33
92.25
99.35
97.25
98.72
96.73
REAL
38 Broad (March 1973= 100)5
39 Major currencies (March 1973= 100) 6
40 Other important trading partners (March
1973 = 100) 7
95.87
108.50
107.68
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. As of January 1999, the euro is reported in place of the individual euro area currencies.
These currency rates can be derived from the euro rate by using the fixed conversion rates (in
currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564
Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds
1936.27
40.3399
2.20371
200.482
166.386
Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
99.96 r
99.19
1
107.30 "
99.08 r
97.13
98.53 r
95.91
98.00 r
95.02 r
98.13
96.11
97.88
96.33
r
r
108.31'
107.09
106.14
108.00
108.36
4. The December 1999 Bulletin contains revised index values resulting from the annual
revision to the trade weights. For more information on the indexes of the foreign exchange
value of the dollar, see Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.
A63
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Issue
December 1999
Anticipated schedule of release dates for periodic releases
Page
A72
SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
May
August
November
February
A64
A64
A64
A64
May
August
November
February
1999
1999
1999
2000
A66
A66
A66
A66
May
August
November
February
1999
1999
1999
2000
A72
A72
A72
All
July 1999
October 1999
January 2 0 0 0
A64
A64
A64
A64
A64
A72
A73
September 1998
September 1999
A76
A76
September 1998
September 1999
A79
A79
banks
December 31, 1998
March 31, 1999
June 30, 1999
September 30, 1999
Terms of lending at commercial
February 1999
May 1999
August 1999
November 1999
1999
1999
1999
2000
September 1998
September 1999
of commercial
Page
September 1998
September 1999
Assets and liabilities
Issue
banks
Assets and liabilities of U.S. branches and agencies
December 31, 1998
March 31, 1999
June 30, 1999
September 30, 1999
of foreign
banks
Pro forma balance sheet and income statements for priced service
March 31, 1999
June 30, 1999
September 30, 1999
operations
Residential
1997
1998
lending reported
Act
Disposition
1997
1998
of applications
Small loans to businesses
1997
1998
Community
1997
1998
development
under the Home Mortgage
for private
mortgage
Disclosure
insurance
and farms
lending reported
under the Community
Reinvestment
Act
A64
4.20
Special Tables • February 1999
DOMESTIC A N D FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition, September 30, 1999
Millions of dollars except as noted
Banks with foreign offices'
Item
Total
Domestic
total
Banks with domestic
offices only 2
Total
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
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
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
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
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
7 5 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs
/ 6 Intangible assets
n All other assets
Under 100
4,763,210
3,742,628
3,056,003
1,431,665
275,541
319,723
230,416
249,680
114,558
n.a.
n.a.
32,002
86,056
17,065
160,373
111,272
84,859
26,413
24,052
,080
16,969
56,680
30,244
17,019
13,225
17,726
1,463
7,248
13,363
f
T
n.a.
1
I
1
<
•
n.a.
n.a.
MEMO
34 Federal funds sold and securities purchased under agreements to resell
Over 100
5,449,834
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)
13
Issued by U.S. government agencies
14
Issued by U.S. government-sponsored agencies
Securities issued by states and political subdivisions in the United States
15
16
General obligations
17
Revenue obligations
18
Industrial development and similar obligations
Mortgage-backed securities (MBS)
19
20
Pass-through securities
21
Guaranteed by GNMA
22
Issued by FNMA and FHLMC
Privately issued
23
24
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS)
25
Issued or guaranteed by FNMA, FHLMC or GNMA
Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA
26
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
All other equity securities
Domestic
•
12,881
4,483
1,018,234
112,492
29,949
589,966
71,137
355,365
33,140
72,903
8,216
196,345
4,707
191,638
8 S, 131
64,185
23,291
654
449,754
282,131
73,797
207,297
1,037
167,623
119,803
3,280
44,540
138,185
n.a.
n.a.
33,326
63,076
2,119
60,957
27,293
18,783
8,073
436
294,598
193,880
44,014
149,210
655
100,719
71,304
2,132
27,282
111,668
54,333
57,335
22,195
99,046
1,885
97,160
47,907
36,083
11,648
177
141,046
78,754
26,352
52,070
331
62,292
44,300
992
17,000
24,424
24,106
318
9,802
34,224
703
33,520
12,931
9,319
3,571
41
14,110
9,497
3,430
6,016
51
4,613
4,198
156
259
2,093
n.a.
n.a.
1,329
2,326
7,477
382
947
n.a.
9,802
23,524
n.a.
12,585
n.a.
7,095
15,101
224,168
180,734
173,482
130,047
39,331
11,355
3,328,120
3,242
3,324,878
56,989
110
3,267,779
3,038,425
2,492
3,035,933
n.a.
n a.
n.a.
2,239,813
1,700
2,238,113
39,021
108
2,198,984
1,950,118
950
1,949,168
n.a.
n.a.
n.a.
919,614
1,156
918,459
15,515
1
902,943
168,693
386
168,306
2,453
1
165,852
1,419,239
806,755
f
T
105,470
n.a.
n.a.
n.a.
46,318
941,992
n.a.
n.a.
.,438
n.a.
n.a.
1,387,789
122,654
31,384
780,963
97,284
683,679
51,154
401,633
87,419
n.a.
n.a.
n.a.
45,456
782,777
n.a.
n.a.
652
n.a.
n.a.
t
101,752
53,141
25,463
23,147
10,634
747,881
604,638
143,243
1,333
321
1,011
775,304
62,200
5,711
481,647
6 3,681
412,966
28,927
196,819
8 3,701
52,718
25,407
5,575
9,772
58 3,666
580,971
7,695
547
319
227
516,821
52,534
14,258
252,771
26,282
226,490
20,133
177,124
3,616
3,305
111
200
18,084
165,407
164,744
663
92
n.a.
n.a.
95,663
7,921
11,414
46,545
2,321
44,223
2,094
27,690
102
n.a.
n.a.
n.a.
17,600
28,704
n.a.
n.a.
13
n.a.
n.a.
515,113
178,673
336,440
472,425
n.a.
n.a.
299,560
103,936
195,624
256,871
n.a.
n.a.
191,150
72,206
118,944
24,403
2,531
21,872
19,382
135,081
n.a.
n.a.
n.a.
n.a.
144,088
19,377
103,318
n a.
n a.
n.a.
n.a.
139,212
12,328
126,054
9,188
116,866
n.a.
n.a.
133,518
12,323
94,291
1,749
92,542
17,859
74,683
128,642
6,246
8,218
19
8,199
1,839
6,359
9,982
808
810
n.a.
n.a.
n.a.
n.a.
589
697
22,063
1,160
365
270
n.a.
13,330
39,462
1
5,358
312
73
5
n.a.
819
5,481
n.a.
235,481
71,774
3,179
7,823
8.789
n.a.
83,693
209,189
f
1
n.a.
\
19,867
n.a.
n.a.
1
n.a.
1
1
234,764
44,353
1,708
7,385
8,514
n.a.
69,545
164,247
f
F
n.a.
19,867
n.a.
n.a.
Commercial Banks
4.20
A65
DOMESTIC A N D FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, September 30, 1999
Millions of dollars except as noted
Banks with foreign offices'
Item
Total
Domestic
total
Total
Domestic
Banks with domestic
offices only 2
Over 100
Under 100
78 Total liabilities, limited-life preferred stock, and equity capital
5,449,834
n.a.
3,742,628
n.a.
1,431,665
275,541
79 Total liabilities
4,989,919
4,303,295
3,442,599
2,755,975
1,301,001
246,318
80 Total deposits
Individuals, partnerships, and corporations
81
U.S. government
82
States and political subdivisions in the United States
83
Commercial banks in the United States
84
85
Other depository institutions in the United States
Foreign banks, governments, and official institutions
86
Banks
87
Governments and official institutions
88
Certified and official checks
89
3,68 3,293
3,286,614
n.a.
n.a.
83,245
n.a.
130,483
n.a.
n.a.
17,037
3,077,723
2,867,037
7,122
136,998
32,904
9,579
8,133
n.a.
n.a.
15,950
2,400,590
2,104,427
n.a.
n.a.
75,321
n.a.
129,991
8 ?,459
40,532
9,469
1,798,019
1,684,850
6,265
61,362
24,980
4,539
7,641
6,745
896
8,382
1,046,196
970,970
713
57,651
6,776
3,509
485
483
2
6,092
233,507
211,216
144
17,985
1,148
1,530
7
n.a.
n.a.
1,476
653,004
561,708
2,542
40,737
22,203
3,064
6,798
n.a.
n.a.
15,950
367,810
313,284
2,124
17,448
17,858
2,345
6,368
5,783
584
8,382
220,512
192,151
346
16,824
4,039
638
424
422
2
6,092
64,682
56,273
72
6,465
306
82
7
n.a.
n.a.
1,476
510,452
444,252
2,358
15,854
22,192
3,051
6,795
n.a.
n.a.
15,950
330,526
283,785
2,013
9,779
17,857
2,345
6,365
5,783
582
8,382
146,155
129,855
287
4,839
4,031
627
424
422
2
6,092
33,771
30,612
57
1,236
304
80
6
n.a.
n.a.
1,476
1,430,209
1,371,566
4,141
43,914
7,122
2,194
1,273
962
311
825,684
778,819
367
40,827
2,737
2,872
61
61
0
168,826
154,943
71
11,520
842
1,449
1
n.a.
n.a.
296,605
40,951
n.a.
264,762
6,197
n.a.
115,648
n.a.
92,518
3,573
99
130,472
270
4,510
n.a.
23,363
3,685
165
4
6,510
5
19
n.a.
2,423
130,664
29,223
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
1 10
111
112
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
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
137
138
139
140
141
142
143
144
145
146
MEMO
Trading assets at large banks 4
U.S. Treasury securities (domestic offices)
U.S. government agency corporation obligations
Securities issued by states and political subdivisions in the United States
Mortgage-backed securities
Other debt securities
Other trading assets
Trading assets in foreign banks
Revaluation gains on interest rate, foreign exchange rate, and other
commodity and equity contracts
Total individual retirement (IRA) and Keogh plan accounts
Total brokered deposits
Fully insured brokered deposits
Issued in denominations of less than $100,000
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
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Total time deposits of $100,000 or more
All negotiable order of withdrawal (NOW) accounts
147 Number of banks
NOTE. 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.
2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year,
n.a.
2,424,719
2,305,328
4,579
96,261
10,701
6,514
1,335
n.a.
n.a.
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
127 Total equity capital
128
129
130
131
132
133
1.34
135
136
n.a.
420,179
44,689
177,966
440,057
i,827
75,091
n.a.
142,815
459,915
235,317
•
n.a.
130,084
64,919
•
n.a.
,599
392,808
44,689
n.a.
401,745
6,472
n.a.
115,648
n.a.
n.a.
323,976
40,951
177,863
303,075
,552
70,562
n.a.
117,029
300,028
105,232
11,929
3,638
1,005
7,532
9,668
6,542
0
234,742
64,919
150,505
83,871
59,986
10,788
64,849
i
49,198
824,205
424,409
736,178
439,926
139,495
n.a.
8,599
•
n a.
130,084
164
n.a.
104,658
11,872
3,515
958
7,436
9,536
6,491
0
574
57
122
47
96
131
51
0
64,849
80,691
51,617
30,462
4,688
70
57,769
28,815
26,231
4,864
n.a.
12,044
3,439
3,293
1,235
25,773
577,860
257,161
341,627
253,561
36,320
21,366
219,217
144,669
309,461
152,338
72,977
2,058
27,129
22,579
85,091
34,027
30,198
2,976
5,459
n.a.
n.a.
were $100 million or more. (These banks file the FFIEC 032 or FFIEC 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 • February 2000
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 1-5, 1999
E. Commercial and industrial loans made byU.S.branchesandagenciesofforeignbanks1
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Days
Subject to
prepayment
penalty
Secured by
collateral
Made under
commitment
LOAN RISK3
1 All commercial and industrial loans
2
Minimal risk
Low risk
3
4
Moderate risk
Other
5
7.03
6.01
6.52
7.22
7.71
126,278
22,136
21,439
36,213
28,823
802
3,742
1,264
630
730
429
311
428
538
420
43.6
64.7
23.7
40.6
38.5
10.7
4.2
14.0
12.6
8.5
31.7
83.2
39.6
19.7
12.6
76.6
96.2
85.0
74.1
71.3
8.02
8.17
7.23
8.21
24,505
586
2,158
8,354
5,619
411
469
321
334
296
571
812
438
618
945
55.8
62.4
34.9
61.2
59.6
13.6
56.3
24.3
12.4
22.6
5.4
3.5
4.8
2.4
17.4
73.8
88.4
85.2
92.3
95.3
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
6.43
5.71
6.13
6.59
6.93
49,043
13,985
8,623
12,401
7,949
1,264
25,363
3,991
1,116
1,025
189
53
233
273
144
44.4
83.9
18.7
25.2
25.3
10.9
1.7
17.8
15.2
7.7
44.4
95.8
45.6
21.7
1.8
71.6
96.5
80.1
54.5
45.3
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
6.80
6.19
6.42
6.84
7.41
31,496
5,367
6,843
8,853
8,841
1,743
4,884
3,562
1,390
1,361
444
691
466
535
215
29.0
15.2
25.2
34.8
30.3
6.1
3.6
8.7
9.1
2.2
33.1
61.1
39.8
31.0
11.6
81.2
96.5
92.7
82.7
64.0
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
7.58
7.01
7.00
7.48
8.22
16,234
714
939
899
550
1,801
642
852
569
682
606
41.7
73.4
22.1
40.4
42.1
7.4
5.4
7.7
10.5
4.3
37.3
83.1
47.7
29.8
26.5
88.9
96.0
87.3
26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other
8.02
6.51
8.40
8.47
7.50
3,300
375
556
1,357
633
72.1
13.0
48.0
87.8
83.2
8.1
17.1
6.5
3.6
2.3
10.5
4.0
35.9
4.8
4.0
56.5
89.9
49.9
34.3
80.0
2.2
By maturity/repricing
6 Zero interval
7
Minimal risk
8
Low risk
Moderate risk
9
10
Other
interval6
1,812
3,184
4,830
5,527
220
353
225
284
323
Weightedaverage 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
9.26
8.44
7.43
6.57
2,720
11,020
35,279
77,259
3.2
3.2
2.9
2.5
168
125
61
38
87.8
74.6
45.1
37.0
32.6
22.3
11.9
7.7
7.9
23.8
39.7
75.8
84.7
78.9
74.5
6.16
6.25
6.69
7.11
25,481
26,493
12,241
47,540
14,522
3.3
3.1
2.3
2.2
3.0
61
12
71.0
22.6
17.1
47.7
42.8
22.8
11.8
22.3
1.9
6.1
5.2
12.1
65.0
54.9
8.4
82.4
44.5
74.0
94.9
67.7
BASE RATE OF LOAN4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
26
38
202
Financial Markets
4.23
TERMS OF LENDING AT COMMERCIAL B A N K S
Survey of Loans Made, November 1-5, 1999
B. Commercial and industrial loans made by all domestic banks'
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Days
Subject to
prepayment
penalty
Secured by
collateral
Made under
commitment
LOAN RISK5
608
648
528
653
658
44.0
22.6
26.3
15.1
10.8
18.8
14.6
15.9
20.9
66.9
35.2
16.7
6.9
78.1
93.4
81.9
80.1
83.7
536
812
442
54.1
56.3
35.0
62.0
71.6
15.3
46.0
24.3
12.8
28.6
1.5
4.3
4.2
.6
69.5
85.6
85.8
92.1
94.1
397
353
335
396
337
37.6
33.9
25.9
34.8
34.4
19.5
10.5
23.7
19.8
8.9
31.5
79.9
55.2
27.7
4.8
75.1
93.2
74.1
67.0
55.0
1,173
5,897
2,643
1,175
450
653
787
566
672
619
30.9
7.5
19.2
39.6
57.4
10.4
5.0
14.4
12.1
7.1
32.5
69.4
26.9
23.3
20.5
90.5
95.4
94.6
362
436
470
337
815
839
233
717
914
1,194
54.2
55.1
26.9
56.5
74.8
8.0
14.9
3.6
7.1
7.6
19.4
70.1
19.8
17.6
11.1
89.0
89.6
84.5
90.2
98.6
73.8
13.0
48.0
8.3
17.1
6.5
3.7
2.5
10.8
4.0
35.9
4.9
4.3
57.9
89.9
49.9
35.1
86.5
78.6
52.8
26.7
32.7
23.1
13.4
12.9
3.8
16.8
29.1
76.7
30.7
12.9
34.2
37.5
19.7
24.9
26.9
4.1
6.8
1.4
16.3
58.1
32.9
9.4
7.30
6.22
6.49
7.35
8.23
75,031
7,395
14,603
28,114
12,401
504
1,662
917
508
340
8.14
8.02
7.23
8.71
20,953
474
2,142
8,079
4,444
322
329
242
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
6.82
5.88
6.22
6.68
7.47
24,487
2,064
6,218
8,912
2,881
661
7,774
3,304
834
402
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
6.78
6.13
6.25
6.92
8.14
18,105
3,825
4,106
6,599
2,529
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
7.49
6.30
6.51
7.53
8.70
7,385
646
1,506
2,779
1,706
26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other
8.04
6.51
8.40
8.49
7.52
3,222
375
556
1,327
585
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
Moderate risk
4
5
Other
By maturity/repricing
6 Zero interval
7
Minimal risk
8
Low risk
Moderate risk
9
10
Other
interval6
8.18
215
353
225
278
299
Weightedaverage risk
rating5
1.8
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
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
9.26
8.55
7.61
6.66
2,673
9,745
24,119
38,494
6.00
6.18
6.93
7.13
22,338
10,139
10,123
19,876
12,556
3.2
3.0
2.5
171
137
BASE RATE OF LOAN
Footnotes appear at end of table.
3.2
2.6
2.3
2.6
2.9
67
5
29
58
228
80.0
41.9
89.4
90.0
76.2
A67
A68
4.23
Special Tables • February 2000
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 1-5, 1999
E. Commercial and industrial loans made byU.S.branchesandagenciesofforeignbanks1
Amount of loans (percent)
Weightedaverage
Item
(percent)
2
loans
(millions
of dollars)
size
(thousands of
dollars)
maturity3
Days
Secured by
collateral
Callable
Subject to
prepayment
penalty
Made under
common
base pricing
rate4
LOAN RISK5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
7.18
6.21
6.30
7.26
8.15
62,682
6,883
11,865
23,059
10,105
894
7,228
3,111
955
454
600
651
487
642
697
36.6
18.9
14.2
41.8
54.7
9.9
8.5
11.6
8.9
11.0
24.1
70.2
43.1
19.0
7.8
80.9
96.7
91.1
84.4
81.9
Foreign
Foreign
Domestic
Prime
Prime
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other
7.99
8.09
6.82
8.02
8.54
16,995
361
1,261
6,552
3,517
699
1,285
1,217
611
339
536
913
307
600
607
47.8
54.1
21.2
56.5
65.2
8.2
48.4
8.6
7.3
18.0
1.5
5.6
5.6
1.8
.7
66.5
95.8
91.7
95.2
93.5
Prime
Prime
Other
Prime
Prime
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
6.77
5.88
6.06
6.72
7.35
20,916
2,062
5,006
7,232
2,708
719
8,619
3,992
928
603
387
353
318
396
333
28.8
33.8
9.3
23.2
31.0
12.0
10.5
13.0
8.5
7.9
36.4
79.9
68.4
33.0
4.8
82.1
93.2
90.0
75.8
52.7
Domestic
Fed funds
Domestic
Domestic
Fed funds
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
Other
6.74
6.21
6.20
6.86
8.17
16,547
3,571
3,935
5,846
2,325
1,779
19,785
5,454
1,885
507
679
797
574
708
650
28.3
3.4
17.7
36.4
56.5
8.8
1.9
13.4
10.4
5.8
33.7
71.3
27.9
23.4
20.9
91.4
98.0
94.7
86.2
88.4
Foreign
Foreign
Foreign
Foreign
Prime
2 1 31 to 365 days
7.37
5,942
1,831
977
47.6
5.1
23.2
93.1
22
6.22
6.73
7.37
8.71
561
1,312
2,379
1,236
4,312
2,748
2,515
1,059
201
49.5
17.2
54.8
66.1
9.9
2.0
5.3
4.6
76.9
22.5
20.2
13.9
100.0
87.0
93.2
99.0
Foreign
Foreign
Foreign
Foreign
Foreign
50
47
52
58.1
.6
4.3
19.3
17.0
51
90.2
78.0
.9
3.4
2.1
69.8
5.1
7.5
63.5
99.5
75.9
34.2
86.0
Other
Other
Foreign
Prime
Other
87.1
75.7
48.2
20.9
36.6
20.0
9.5
7.3
2.0
4.3
18.9
31.6
85.9
89.0
81.3
79.0
Prime
Prime
Prime
Foreign
By maturity/repricing
20
23
24
25
interval6
Minimal risk
Low risk
Moderate risk
Other
790
983
1,595
Months
26 More than 365 days
27
Minimal risk
28
Low risk
29
Moderate risk
30
Other
7.78
6.31
7.50
8.46
8.12
1,811
322
286
830
246
926
3,135
1,425
1,313
365
Weightedaverage risk
rating5
49
.8
*
Weightedaverage
maturity/
repricing
interval6
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
9.02
8.43
7.51
6.70
1,225
6,621
19,864
34,972
3.5
3.4
3.0
2.5
46
49
58
59
Average size
(thousands
of dollars)
BASE RATE OF LOAN4
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
8.74
6.00
6.15
6.91
6.93
17,109
7,696
9,801
17,641
10,435
3.3
2.7
2.4
2.5
2.9
63
3
20
43
148
74.0
12.6
11.8
30.1
27.4
13.7
3.6
25.7
3.8
3.7
1.6
21.4
59.6
34.5
10.7
80.2
50.0
90.0
90.8
79.5
311
7,424
7,619
3,194
1,451
Financial Markets
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 1-5, 1999
D. Commercial and industrial loans made by small domestic banks1
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Days
Subject to
prepayment
penalty
Secured by
collateral
Made under
commitment
LOAN RISK
4.7
25.5
64.1
49.0
41.9
60.9
91.6
7.91
6.29
7.33
7.75
8.59
12,349
513
2,738
5,055
2,296
157
147
226
162
162
667
606
802
736
81.7
72.5
79.2
80.5
92.3
41.4
41.9
49.8
40.9
37.5
8.75
7.77
7.82
8.87
9.34
3,958
113
881
1,527
927
117
164
157
110
116
540
231
658
624
374
81.0
63.5
54.7
85.9
96.0
45.7
38.2
46.7
36.4
68.9
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
7.13
8.82
6.87
6.50
9.30
3,571
2
1,211
1,679
173
506
228
547
396
389
88.7
100.0
94.4
84.8
88.5
63.3
1,929
579
65
67.7
68.4
24.7
5.1
4.6
34.1
89.6
8.6
29.4
91.8
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
7.14
5.15
7.44
7.36
7.83
1,557
254
170
753
204
254
543
205
299
199
327
589
334
330
260
59.2
65.8
53.1
64.6
67.7
27.7
49.0
37.3
25.1
22.2
20.5
41.7
4.3
22.5
16.9
81.3
58.6
93.7
94.7
55.4
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
7.96
1,443
85
194
400
470
84
63
71
55
507
278
455
220
504
170
81.2
92.4
92.6
67.1
97.9
19.9
47.5
14.1
17.8
15.3
3.7
25.2
72.0
4.98
8.47
8.67
26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other
8.37
7.72
9.36
8.53
7.09
94.0
87.8
98.0
89.1
98.5
13.3
3.5
13.5
8.3
1.9
4.0
2.1
50.6
32.0
22.4
36.6
86.9
89.4
84.5
74.4
84.9
29.3
29.8
31.7
1.7
2.9
7.0
4.8
66.9
75.5
75.8
38.7
85.6
87.8
44.6
66.3
86.9
39.2
91.9
63.3
6.5
22.0
10.0
20.1
3.2
79.4
16.5
71.6
83.4
59.7
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
Moderate risk
4
5
Other
By maturity/repricing
6 Zero interval
7
Minimal risk
8
Low risk
Moderate risk
9
10
Other
1.2
6.3
3.1
interval6
6.80
1,411
53
270
496
340
108
56
119
120
265
Weightedaverage risk
rating5
1.4
.0
2.2
2.2
.4
.2
.2
1.2
1.8
3.8
6.2
4.6
82.7
53.3
77.3
78.7
96.6
21.1
68.1
72.8
97.5
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
35
36
37
38
39
Prime 7
Fed funds
Other domestic
Foreign
Other
2.9
2.9
3.0
6.26
1,448
3,124
4,255
3,522
9.11
6.00
6.92
7.10
8.13
5,228
2,443
322
2,235
2,121
3.1
2.6
2.0
3.3
2.7
9.47
8.78
8.10
272
328
119
2.8
BASE RATE OF LOAN4
Footnotes appear at end of table.
11
284
177
670
A69
A70
4.23
Special Tables • February 2000
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of Loans Made, November 1-5, 1999
E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Days
Subject to
prepayment
penalty
Secured by
collateral
Made under
commitment
47.3
91.1
48.9
30.0
16.8
74.4
97.5
91.7
53.3
62.0
LOAN RISK5
1 All commercial and industrial loans
Minimal risk
2
3
Low risk
Moderate risk
4
5
Other
6.63
5.91
6.59
6.78
7.32
51,247
14,741
6,836
8,099
16,423
5,990
10,061
6,608
3,743
5,423
7.34
8.82
3,552
112
2,206
401
9.04
9.15
275
1,175
603
2,030
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
6.05
5.68
5.91
6.35
6.62
24,556
11,921
2,405
3,489
5,068
14,067
41,699
8,629
8,344
8,569
1
1
1
34
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
6.82
6.31
6.66
6.59
7.11
13,392
1,542
2,737
2,254
6,312
5,092
3,424
7,437
3,003
7,180
173
456
320
153
61
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
7.66
7.41
7.44
7.41
8.00
8,849
1,167
1,678
2,052
3,821
3,783
2,591
4,969
3,840
3,923
465
1,193
421
323
329
Weightedaverage risk
rating3
Weightedaverage
maturity/
repricing
interval6
By maturity/repricing
6 Zero interval
7
Minimal risk
Low risk
8
9
Moderate risk
10
Other
184
144
228
163
261
43.0
85.8
18.2
12.1
21.1
4.2
.9
3.8
5.5
2.9
66.0
88.4
*
3.3
100.0
38.4
14.2
.9
51.2
92.6
2.3
interval6
*
1,044
1,968
99.2
100.0
*
*
19.7
80.7
99.9
99.6
2.8
3.6
7.1
21.1
6.2
.1
68.2
97.1
95.6
22.4
39.7
26.3
34.4
34.3
20.7
19.4
.2
33.8
40.7
58.7
53.6
8.5
68.7
99.3
89.9
69.7
55.3
31.4
83.5
17.9
18.6
27.5
6.9
52.3
90.2
72.7
46.2
33.3
99.5
89.8
82.2
91.7
.0
.7
20.1
.0
.2
.1
.0
.4
.2
.1
11.5
15.1
2.8
88.8
26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
8.77
7.62
7.05
6.47
47
1,275
11,160
38,766
3.0
2.9
2.8
2.5
54.9
44.6
28.5
47.1
28.8
16.3
8.4
2.6
18.4
38.7
88.3
85.0
75.7
73.7
9.25
3,144
16,355
2,119
27,664
1,966
3.5
3.3
2.9
2.0
4.0
30.5
17.6
37.5
57.5
76.9
45.1
3.8
31.9
9.5
98.4
70.8
2.3
99.5
46.1
BASE RATE OF LOAN4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
6.26
6.61
6.52
6.98
.3
1.4
.2
98.4
13.6
Financial Markets
A71
NOTES TO TABLE 4.23
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 0.16 percentage
point. 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.
5. A complete description of these risk categories is available from the Banking Analysis
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 3 1 - 3 9 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 3 1 - 3 9 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 repricing 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 remain fixed until 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 that reprice daily mature or reprice on 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 8.26 percent for all banks; 8.25 percent for
large domestic banks, 8.35 percent for small domestic banks; and 8.19 percent for U.S.
branches and agencies of foreign banks.
A72
4.30
Special Tables • February 2000
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1999Continued
Millions of dollars except as noted
All states 2
Item
1 Total assets 4
Total
including
IBFs 3
New York
IBFs
only 3
Total
including
IBFs
Illinois
California
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
851,483
173,980
680,784
144,819
28,823
5,399
53,215
7,296
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted debits
Currency and coin (U.S. and foreign)
5
Balances with depository institutions in United States
6
7
U.S. branches and agencies of other foreign banks
(including IBFs)
Other depository institutions in United States (including IBFs) . . .
8
Balances with banks in foreign countries and with foreign central
y
banks
Foreign branches of U.S. banks
10
Banks in home country and home-country central banks
11
12
All other banks in foreign countries and foreign central banks . . . .
Balances with Federal Reserve Banks
13
711,312
82,727
2,550
16
48,699
89,865
41,841
0
n.a.
15,852
561,374
75,607
2,495
12
46,444
74,821
38,160
0
n.a.
15,008
28,067
627
7
1
511
2,224
130
0
n.a.
57
53,104
5,524
11
0
1,144
5,914
3,304
0
n.a.
665
41,134
7,565
15,095
757
39,409
7,035
14,322
686
341
170
57
0
965
179
605
60
31,076
713
5,138
25,225
386
25,989
637
3,940
21,411
n.a.
26,357
624
5,088
20,644
300
23,152
553
3,903
18,696
n.a.
88
0
23
65
20
73
0
23
50
n.a.
4,359
56
15
4,289
10
2,640
56
15
2,569
n.a.
14 Total securities and loans
432,914
40,094
331,465
29,355
26,266
1,751
35,182
2,560
112,939
22,998
46,182
4,914
n.a.
n.a.
104,061
21,486
43,650
4,273
n.a.
n.a.
1,311
67
203
485
n.a.
n.a.
6,439
1,431
1,922
116
n.a.
n.a.
43,759
11,432
32,327
4,914
2,785
2,130
38,925
11,071
27,854
4,273
2,631
1,642
1,041
267
774
485
109
376
3,086
30
3,056
116
30
85
71,295
10,701
9,564
51,030
5,993
2,716
19
3,258
66,335
10,187
8,906
47,242
5,623
2,596
19
3,008
605
299
90
216
300
100
0
200
3,522
0
5
3,517
0
0
0
0
320,258
283
319,975
35,209
29
35,180
227,615
210
227,405
25,109
27
25,082
24,984
29
24,955
1,266
1
1,265
28,759
17
28,742
2,444
0
2,444
16,990
25.694
6,450
4,867
1,583
15
19,229
800
18,428
50,767
102
17,359
3,192
2,920
272
0
14,167
182
13,985
1,542
11,436
15,402
4,004
2,742
1,262
0
11,397
761
10,636
40,578
100
9,950
1,848
1,745
103
0
8,102
143
7,960
1,255
2,946
1,631
1,161
1,138
23
0
470
0
470
1,302
0
960
516
502
14
0
444
0
444
0
398
2,788
791
635
156
0
1,997
10
1,987
3,999
0
2,364
704
549
155
0
1,660
10
1,650
5
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
Foreign banks
43
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
206,195
168,205
37,989
423
6
417
13,626
222
13,403
6
0
6
142,618
115,006
27,612
71
1
70
11,509
222
11,287
6
0
6
18,864
17,400
1,464
19
3
15
282
0
282
0
0
0
20,188
18,025
2,163
328
0
328
71
0
71
0
0
0
3,700
9.020
6,714
2,498
19
58
2,991
8,459
5,836
2,229
19
40
157
0
66
24
0
0
95
0
429
4
0
0
47
48
49
50
51
52
53
54
55
56
57
58
757
757
0
91,504
32,871
1,263
621
642
31,609
140,171
140,171
0
0
0
719
1,219
n.a.
n.a.
n.a.
1,219
84,115
n.a.
225
225
0
59,358
28,608
899
458
441
27,709
119,410
119,410
0
0
0
717
966
n.a.
n.a.
n.a.
966
69,998
n.a.
0
0
0
68
501
133
132
2
368
756
756
0
0
0
2
41
n.a.
n.a.
n.a.
41
3,175
n.a.
532
532
0
6,932
1,945
177
25
152
1,768
111
111
0
0
0
0
50
n.a.
n.a.
n.a.
50
1,382
n.a.
15 Total securities, book value
16
U.S. Treasury
17
Obligations of U.S. government agencies and corporations
Other bonds, notes, debentures, and corporate stock (including state
18
and local securities)
Securities of foreign governmental units
19
20
All Other
21 Federal funds sold and securities purchased under agreements to
resell
22
U.S. branches and agencies of other foreign banks
Commercial banks in United States
23
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
Commercial banks in United States (including IBFs)
30
U.S. branches and agencies of other foreign banks
31
32
Other commercial banks in United States
Other depository institutions in United States (including IBFs)
33
Banks in foreign countries
34
Foreign branches of U.S. banks
35
Other banks in foreign countries
36
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 institutions5
Net due from head office and other related depository institutions . . .
Net due from establishing entity, head office, and other related
depository institutions5
n.a.
84,115
n.a.
69,998
n.a.
3,175
n.a.
1,382
59 Total liabilities 4
851,483
173,980
680,784
144,819
28,823
5,399
53,215
7,296
60 Liabilities to nonrelated parties
711,828
152,812
585,300
126,898
11,632
5,148
44,646
5,478
Footnotes appear at end of table.
U.S. Branches and Agencies
4.30
A73
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1999'—Continued
Millions of dollars except as noted
All states2
Item
61 Total deposits and credit balances
Individuals, partnerships, and corporations
62
63
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
64
Commercial banks in United States (including IBFs)
65
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
Other banks in foreign countries
70
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)
Individuals, partnerships, and corporations
75
76
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
77
Commercial banks in United States (including IBFs)
78
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
Other banks in foreign countries
83
84
Foreign governments and official institutions
(including foreign central banks)
85
All other deposits and credit balances
Certified and official checks
86
87 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
88
89
U.S. addressees (domicile)
90
Non U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
91
92
U.S. branches and agencies of other foreign banks
93
Other commercial banks in United States
94
Banks in foreign countries
Foreign branches of U.S. banks
95
Other banks in foreign countries
96
97
Foreign governments and official institutions
(including foreign central banks)
98
All other deposits and credit balances
99
Certified and official checks
100 Nontransaction accounts (including MMDAs, excluding IBFs)
Individuals, partnerships, and corporations
101
102
U.S. addressees (domicile)
Non U.S. addressees (domicile)
103
Commercial banks in United States (including IBFs)
104
105
U.S. branches and agencies of other foreign banks
106
Other commercial banks in United States
Banks in foreign countries
107
108
Foreign branches of U.S. banks
109
Other banks in foreign countries
Foreign governments and official institutions
110
(including foreign central banks)
111
All other deposits and credit balances
112 IBF deposit liabilities
Individuals, partnerships, and corporations
113
114
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
115
Commercial banks in United States (including IBFs)
116
U.S. branches and agencies of other foreign banks
117
118
Other commercial banks in United States
Banks in foreign countries
119
Foreign branches of U.S. banks
120
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.
Total
excluding
IBFs3
IBFs
only*
New York
Total
excluding
IBFs
Illinois
California
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
310,881
230,558
213,635
16,923
40,409
12,845
27,564
10,005
1,026
8,978
102,423
11,095
12
11,083
13,574
11,470
2,104
56 898
4,486
52,412
249,715
178,319
166,937
11,382
35,711
11,511
24,200
9,625
1,025
8,600
90,233
6,434
12
6,421
13,097
11,074
2,023
53,178
4,063
49,115
4,593
2,725
1,273
1,452
464
0
464
11
0
11
1,215
191
0
191
120
120
0
159
0
159
20,417
17,943
17,827
116
1,335
285
1,050
151
0
151
2,301
34
0
34
223
148
75
1,403
423
980
12,929
16,826
155
20,489
367
11,478
14,442
139
17,223
302
7
1,383
3
704
40
982
5
1
639
2
8,402
7,013
4,991
2,022
54
34
20
673
2
671
6,512
5,415
4,252
1,163
50
33
16
467
1
466
273
255
146
109
0
0
0
11
0
11
421
417
414
3
0
0
0
0
0
0
298
209
155
243
197
139
2
2
3
2
0
1
7,878
6,665
4,895
1,770
40
24
16
651
2
649
6,188
5,264
4,176
1,088
37
23
13
445
1
444
217
200
134
67
0
0
0
11
0
11
419
415
412
3
0
0
0
0
0
0
n.a.
n.a.
n.a.
291
76
155
236
67
139
2
0
3
2
0
1
302,478
223,545
208,644
14,901
40,355
12,811
27,544
9,331
1,024
8,307
243,203
172,904
162,685
10,219
35,661
11,478
24,184
9,158
1,024
8,134
4,320
2,470
1,127
1,343
464
0
464
0
0
0
19,995
17,525
17,413
113
1,335
285
1,050
150
0
150
12,631
16,617
11,235
14,245
5
1,381
n.a.
380
5
n.a.
102,423
11,095
12
11,083
13,574
11,470
2,104
56,898
4,486
52,412
20,489
367
n.a.
90,233
6,434
12
6,421
13,097
11,074
2,023
53,178
4,063
49,115
17,223
302
n.a.
1,215
191
0
191
120
120
0
159
0
159
704
40
n.a.
2,301
34
0
34
223
148
75
1,403
423
80
639
2
A74
4.30
Special Tables • February 2000
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1 9 9 9 C o n t i n u e d
Millions of dollars except as noted
All states2
Item
Total
including
IBFs3
124 Federal funds purchased and securities sold under agreements to
repurchase
125
U.S. branches and agencies of other foreign banks
126
Other commercial banks in United States
127
Other
128 Other borrowed money
129 Owed to nonrelated commercial banks in United States (including
IBFs)
130
Owed to U.S. offices of nonrelated U.S. banks
131
Owed to U.S. branches and agencies of nonrelated
foreign banks
132 Owed to nonrelated banks in foreign countries
133
Owed to foreign branches of nonrelated U.S. banks
134
Owed to foreign offices of nonrelated foreign banks
135 Owed to others
IBFs
only3
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
126,269
13,953
11,149
101,167
82,682
109,311
8,857
7,102
93,352
64,860
14,063
2,730
477
10,856
21,405
1,235
573
350
313
4,183
595
344
16
236
3,302
7,933
2,197
2,233
3,502
6,199
1,936
512
475
949
1,215
5,332
413
10,718
4,993
4,340
335
877
90
522
70
695
102
220
0
7,695
19,662
1,156
18,506
49,925
4,919
17,182
664
16,518
5,181
5,725
15,252
855
14,397
38,890
4,005
12,926
369
12,557
4,140
787
2,636
296
2,340
670
452
2,611
296
2,315
170
593
224
0
224
5,280
220
205
0
205
790
89,574
1,320
71,181
1,196
406
35
7,796
26
1,723
60,039
27,812
....
21,375
5,523
968
14, 584
27,695
13,095
5,400
136 All other liabilities
137
Branch or agency liability on acceptances executed and
outstanding
138
Trading liabilities
139
Other liabilities to nonrelated parties
140 Net due to related depository institutions5
141
Net due to head office and other related depository institutions
142
Net due to establishing entity, head office, and other related
depository institutions5
California
New York
n.a.
46
1,274
1,185
46,090
23,906
n.a.
46
1,151
135
57
215
n. a.
0
35
338
5,914
1,545
n.a.
0
25
139,655
139,655
21,168
n.a.
95,484
95,484
17,922
n.a.
17,190
17,190
251
n.a.
8,569
8,569
1,818
n.a.
n.a.
21,168
n.a.
17,922
n.a.
251
n.a.
1,8 18
MEMO
143 Non-interest-bearing balances with commercial banks
in United States
144 Holding of own acceptances included in commercial and
industrial loans
145 Commercial and industrial loans with remaining maturity of one year
or less (excluding those in nonaccrual status)
146
Predetermined interest rates
147
Floating interest rates
148 Commercial and industrial loans with remaining maturity of more
than one year (excluding those in nonaccrual status)
149
Predetermined interest rates
150
Floating interest rates
Footnotes appear at end of table.
0
2,338
1,847
110,752
73,378
37,374
93,986
23.317
70,669
•
n.a.
2,221
0
1,334
•
69,351
44,949
24,402
72,258
19,308
52,950
n.a.
33
197
9,823
4,997
4,826
8,911
1,619
7,292
0
•
n.a.
0
11
249
15,594
13,687
1,907
4,512
620
3,892
•
n a.
U.S. Branches and Agencies
4.30
A75
ASSETS A N D LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 1999'—Continued
Millions of dollars except as noted
All states2
Item
151 Components of total 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
New York
Total
excluding
IBFs3
IBFs
only3
Total
excluding
IBFs
IBFs
only
302,476
297,599
n.a.
n.a.
244,740
240,516
4,877
n.a.
4,224
All states"
IBFs
only
Total
excluding
IBFs
IBFs
only
n.a.
n.a.
4,137
4,089
n.a.
n.a.
20,477
19,895
n.a.
n.a.
n.a.
48
n.a.
582
n.a.
New York
IBFs
only
Total
including
IBFs
IBFs
only
31,129
373
n.a.
0
28,151
195
n.a.
0
1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of
Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." 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 that report were available through the Federal
Reserve monthly statistical release G.l 1, last issued on July 10, 1980. Data in this table and in
the G. 11 tables are not strictly comparable because of differences in reporting panels and in
definitions of balance sheet items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to
permit banking offices located in the United States to operate international banking facilities
(IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column.
These data are either included in or excluded from the total columns as indicated in the
headings. The notation "n.a." indicates that no IBF data have been reported for that item,
Illinois
Total
excluding
IBFs
Total
including
IBFs
154 Immediately available funds with a maturity greater than one day
included in other borrowed money
155 Number of reports filed6
California
California
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
1,694
75
n.a.
0
741
30
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. Total 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.ll monthly statistical release,
gross balances were included in total assets and total liabilities. Therefore, total asset and total
liability figures in this table are not comparable to those in the G. 11 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.
76
Federal Reserve Bulletin • February 2000
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
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
Real estate mortgages held, by holder and property, 35
Terms of lending, 64-65
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
Euro, 62
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 branches, U.S. banks and agencies, 71, 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
Money and capital markets, 23
Mortgages, 34
Prime rate, 22, 66-71
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
Investments (See also specific types)
Commercial banks, 4, 15-21, 66-71
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, 72
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22, 66-71
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, 37^11
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)
78
Federal Reserve Bulletin • February 2000
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
ROGER W. FERGUSON, JR., Vice Chairman
LAURENCE H . MEYER
OFFICE OF BOARD
DIVISION OF INTERNATIONAL
MEMBERS
LYNN S. FOX, Assistant to the Board
DONALD J. WINN, Assistant to the Board
WINTHROP P. HAMBLEY, Deputy Congressional
Liaison
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL
DIVISION
]. 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
DIVISION OF BANKING
SUPERVISION
AND
REGULATION
RICHARD SPILLENKOTHEN,
Director
STEPHEN C. SCHEMERING, Deputy
Director
HERBERT A . BIERN, Associate
Director
ROGER T. COLE, Associate
Director
WILLIAM A . RYBACK, Associate
Director
GERALD A . EDWARDS, JR., Deputy Associate
Director
STEPHEN M . HOFFMAN, JR., Deputy Associate
Director
JAMES V. HOUPT, Deputy Associate
Director
JACK P. JENNINGS, Deputy Associate
Director
MICHAEL G. MARTINSON, Deputy Associate
Director
SIDNEY M . SUSSAN, Deputy Associate
Director
MOLLY S. WASSOM, Deputy Associate
Director
HOWARD A . AMER, Assistant
Director
NORAH M . BARGER, Assistant
Director
BETSY CROSS, Assistant
Director
RICHARD A . SMALL, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Project
Director,
National Information
Center
EDWARD W . K E L L E Y , J R .
KAREN H . JOHNSON,
FINANCE
Director
DAVID H. HOWARD, Deputy
Director
VINCENT R. REINHART, Deputy
Director
THOMAS A . CONNORS, Deputy
Director
DALE W. HENDERSON, Associate
Director
DONALD B . ADAMS, Senior
Adviser
RICHARD T. FREEMAN, Assistant
Director
WILLIAM L. HELKIE, Assistant
Director
STEVEN B . KAMIN, Assistant
Director
RALPH W. TRYON, Assistant
Director
DIVISION OF RESEARCH AND
MICHAEL J. PRELL,
STATISTICS
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 WHITE, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
GLENN B . CANNER, Senior
Adviser
DAVID S. JONES, Senior
Adviser
DIVISION OF MONETARY
DONALD L . KOHN,
AFFAIRS
Director
DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Associate
Director
RICHARD D . PORTER, Deputy Associate
Director
WILLIAM C. WHITESELL, Assistant
Director
NORMAND R. V. BERNARD, Special Assistant to the
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
DOLORES S . SMITH,
Director
GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Assistant
Director
MAUREEN P. ENGLISH, Assistant
Director
ADRIENNE D . HURT, Assistant
Director
IRENE SHAWN M C N U L T Y , Assistant
Director
Board
A79
EDWARD M . G R A M L I C H
OFFICE OF
STAFF DIRECTOR FOR
MANAGEMENT
STEPHEN R. MALPHRUS, Staff
MANAGEMENT
Director
DIVISION
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R. PAULEY, Associate Director, Human Resources
Function
SHEILA CLARK, EEO Programs
Director
DIVISION OF SUPPORT
ROBERT E . FRAZIER,
SERVICES
Director
GEORGE M. LOPEZ, Assistant Director
DAVID L. WILLIAMS, Assistant Director
DIVISION
OF INFORMATION
RICHARD C . STEVENS,
TECHNOLOGY
Director
MARIANNE M. EMERSON, Deputy Director
TILLENA G. CLARK, Assistant
Director
MAUREEN HANNAN, Assistant
Director
Director
P o KYUNG KIM, Assistant
RAYMOND H. MASSEY, Assistant
Director
EDWARD T. MULRENIN, Assistant
Director
DAY W. RADEBAUGH, JR., Assistant Director
DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS
LOUISE L . ROSEMAN,
OPERATIONS
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
OFFICE OF THE INSPECTOR
GENERAL
BARRY R
- SNYDER, Inspector General
DONALD L. ROBINSON, Deputy Inspector
General
80
Federal Reserve Bulletin • February 2000
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
WILLIAM J. MCDONOUGH, Vice
Chairman
Chairman
J. ALFRED BROADDUS, JR.
JACK G U Y N N
LAURENCE H . MEYER
ROGER W . FERGUSON, JR.
JERRY L. JORDAN
ROBERT T. PARRY
EDWARD M . GRAMLICH
EDWARD W . KELLEY, JR.
ALTERNATE
MEMBERS
THOMAS M . HOENIG
MICHAEL H . MOSKOW
CATHY E . MINEHAN
WILLIAM POOLE
JAMIE B . STEWART, JR.
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
KAREN H . JOHNSON,
Economist
MICHAEL J. PRELL,
Economist
CHRISTINE M . CUMMING, Associate
Economist
DAVID H. HOWARD, Associate
WILLIAM C. HUNTER, Associate
RICHARD W. LANG, Associate
DAVID E. LINDSEY, Associate
ARTHUR J. ROLNICK, Associate
HARVEY ROSENBLUM, Associate
LAWRENCE SLIFMAN, Associate
DAVID J. STOCKTON, Associate
PETER R. FISHER, Manager,
FEDERAL
ADVISORY
System
Account
COUNCIL
NORMAN R. BOBINS, S e v e n t h District
KATIE S. WINCHESTER, E i g h t h District
R. SCOTT JONES, N i n t h District
C. Q. CHANDLER, Tenth District
RICHARD W. EVANS, JR., E l e v e n t h District
WALTER A . DODS, JR., T w e l f t h District
LAWRENCE K. FISH, First District
DOUGLAS A . WARNER III, S e c o n d District
RONALD L. HANKEY, Third District
DAVID A . DABERKO, Fourth District
L. M . BAKER, JR., Fifth District
WILLIAM G. SMITH, JR., S i x t h District
Open Market
Economist
Economist
Economist
Economist
Economist
Economist
Economist
Economist
JAMES ANNABLE,
WILLIAM J. KORSVIK,
Co-Secretary
Co-Secretary
A81
CONSUMER
ADVISORY
COUNCIL
DWIGHT GOLANN, Boston, Massachusetts, Chairman
LAUREN ANDERSON, N e w Orleans, Louisiana, Vice
Chairman
WALTER J. BOYER, Dallas, Texas
TERESA A. BRYCE, Charlotte, North Carolina
DOROTHY BROADMAN, San Francisco, California
MALCOLM M. BUSH, Chicago, Illinois
ROBERT M. CHEADLE, Ada, Oklahoma
MARY ELLEN DOMEIER, N e w U l m , Minnesota
JEREMY D. EISLER, Biloxi, Mississippi
ROBERT F. ELLIOTT, Prospect Heights, Illinois
LESTER W. FIRSTENBERGER, Middletown, Connecticut
JOHN C. GAMBOA, San Francisco, California
ROSE M. GARCIA, Las Cruces, N e w M e x i c o
VINCENT J. GIBLIN, West Caldwell, N e w Jersey
KARLA S. IRVINE, Cincinnati, Ohio
WILLIE M. JONES, Boston, Massachusetts
THRIFT INSTITUTIONS
ADVISORY
M. DEAN KEYES, St. Louis, Missouri
GWENN S. KYZER, Allen, Texas
JOHN C. LAMB, Sacramento, California
ANNE S. LI, Trenton, N e w Jersey
MARTHA W. MILLER, Greensboro, North Carolina
DANIEL W. MORTON, Columbus, Ohio
JEREMY NOWAK, Philadelphia, Pennsylvania
MARTA RAMOS, San Juan, Puerto Rico
DAVID L. RAMP, St. Paul, Minnesota
RUSSELL W. SCHRADER, San Francisco, California
ROBERT G. SCHWEMM, Lexington, Kentucky
DAVID J. SHIRK, Tarrytown, N e w York
GARY S. WASHINGTON, Chicago, Illinois
ROBERT L. WYNN, II, Madison, W i s c o n s i n
COUNCIL
F. WELLER MEYER, Falls Church, Virginia, President
THOMAS S. JOHNSON, N e w York, N e w York, Vice
President
JAMES C. BLAINE, Raleigh, North Carolina
LAWRENCE L. BOUDREAUX III, N e w Orleans, Louisiana
TOM R. DORETY, Tampa, Florida
BABETTE E. HEIMBUCH, Santa Monica, California
WILLIAM A. LONGBRAKE, Seattle, Washington
CORNELIUS D. MAHONEY, Westfield, Massachusetts
KATHLEEN E. MARINANGEL, McHenry, Illinois
ANTHONY J. POPP, Marietta, Ohio
MARK H. WRIGHT, San Antonio, Texas
CLARENCE ZUGELTER, Kansas City, Missouri
82
Federal Reserve Bulletin • February 2000
Federal Reserve Board Publications
For ordering
assistance,
write P U B L I C A T I O N S S E R V I C E S ,
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( 2 0 2 ) 7 2 8 - 5 8 8 6 . You may also use the publications
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form
available
on the Board's
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Wide
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site
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payment should accompany
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to the
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of the Federal Reserve System or may be
ordered via Mastercard,
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foreign residents should be drawn on a U.S. bank.
BOOKS AND MISCELLANEOUS
PUBLICATIONS
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
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A N N U A L REPORT, 1 9 9 8 .
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States, its possessions, Canada, and M e x i c o . Elsewhere,
$ 3 5 . 0 0 per year or $ . 8 0 each.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
RATE
TABLES
(Truth
in
Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each v o l u m e
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GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 6 7 2 p p . $ 8 . 5 0 e a c h .
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EDUCATION
PAMPHLETS
Short pamphlets
suitable for classroom
available without
charge.
use. Multiple
copies
are
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection L a w s
A Guide to Business Credit for W o m e n , Minorities, and Small
Businesses
Series on the Structure of the Federal Reserve
System
The Board of Governors of the Federal Reserve S y s t e m
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
H o m e Mortgages: Understanding the Process and Your Right
to Fair Lending
H o w to File a Consumer Complaint about a Bank
Making S e n s e of Savings
SHOP: The Card You Pick Can S a v e You M o n e y
W e l c o m e to the Federal Reserve
W h e n Your H o m e is on the Line: What You Should K n o w
About H o m e Equity Lines of Credit
K e y s to Vehicle Leasing
Looking for the Best Mortgage
A83
STAFF STUDIES: Only Summaries
BULLETIN
Printed
in the
1 6 4 . THE
1989-92
CREDIT
CRUNCH
FOR REAL ESTATE,
James T. Fergus and John L. Goodman, Jr. July
2 0 pp.
by
1993.
Studies and papers on economic and financial subjects that are of
general interest. Requests to obtain single copies of the full text or
to be added to the mailing list for the series may be sent to
Publications
Services.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE "OPERATING
PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES,
Staff Studies 1 - 1 5 8 , 161, 163, 165, 166, 168, and 169 are out of
print.
1 7 0 . THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGULATIONS: A N ANALYSIS OF EXPERIENCE WITH THE TRUTH
IN SAVINGS ACT, b y G r e g o r y E l l i e h a u s e n and Barbara R.
by Stephen A. Rhoades. July 1994. 37 pp.
Lowrey, D e c e m b e r 1997. 17 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g a n d
Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n A .
Rhoades. February 1992. 11 pp.
1 7 1 . THE COST OF BANK REGULATION: A REVIEW OF THE EVI-
DENCE, by Gregory Elliehausen, April 1998. 35 pp.
1 7 2 . USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR-
KET DISCIPLINE, by Study Group o n Subordinated N o t e s
and Debentures, Federal Reserve System, D e c e m b e r 1999.
6 9 pp.
84
Federal Reserve Bulletin • February 2000
Maps of the Federal Reserve System
1
_
I
_
1 2
SAN
^
FRANCISCO
w ^ ' v ^ u
C H I C A G O ®
1
| |
^
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B o s TON
•
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W NEW YORK
PHTTADLLPHIA
a
RICHMOND
ATLANIA
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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
2-B
1—A
3-C
4-D
5-E
Baltimore
Pittsburgh
\
Mh
NY
MD
^PA
,
CI
—wv
NH
Buffalo
MA
NC
• Cincinnati
•Chariot Ie
®
^
i;T
NY
sc
^ R I
BOSTON
N E W YORK
PHILADELPHIA
6-F
CLEVELAND
l-R
7-G
•
1 N—
RICHMOND
Nashville
KY
/
\M
Birmingham.
MS
il
(
OA
-A—
Jacksonville
L.A
; IN
r
Louisville
Detroit <
•
TN
AR
• Memphis
FI
New Orleans
J
MS
Miami
ATLANTA
CHICAGO
S T . LOUIS
9-1
ND
• Helena
MINNEAPOLIS
12-L
10-J
WY
Omaha®
CO
MO
KS
•
Denver
NM
Oklahoma Cit\
OK
KANSAS CITY
11-K
TX
|
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Salt Lake City
Houston
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*
• L o s
, jSBBISl
I H ^ R
Angeles
San Antonio
AZ
DALLAS
S A N FRANCISCO
86
Federal Reserve Bulletin • February 2000
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
William C. Brainard
William O. Taylor
Cathy E. Minehan
Paul M. Connolly
N E W YORK*
10045
Peter G. Peterson
Charles A. Heimbold, Jr.
Bal Dixit
Vice President
in charge of branch
William J. McDonough
Jamie B. Stewart, Jr.
Buffalo
14240
Carl W. Turnipseed 1
PHILADELPHIA
19105
Joan Carter
Charisse R. Lillie
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
David H. Hoag
To be announced
George C. Juilfs
John T. Ryan, III
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Jeremiah J. Sheehan
Wesley S. Williams, Jr.
George L. Russell, Jr.
Joan H. Zimmerman
John F. Wieland
Paula Lovell
D. Bruce Carr
William E. Flaherty
Karen Johnson-Street
Frances F. Marcum
Dwight H. Evans
Jack Guynn
Patrick K. Barron
Arthur C. Martinez
Robert J. Darnall
Timothy D. Leuliette
Michael H. Moskow
William C. Conrad
Susan S. Elliott
Charles W. Mueller
To be announced
J. Stephen Barger
Mike P. Sturdivant, Jr.
William Poole
W. LeGrande Rives
James J. Howard
Ronald N. Zwieg
William P. Underriner
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
H. B. Zachry, Jr.
To be announced
Edward O. Gaylord
Patty P. Mueller
Robert D. McTeer, Jr.
Helen E. Holcomb
Gary G. Michael
Nelson C. Rising
Lonnie Kane
Nancy Wilgenbusch
Barbara L. Wilson
Richard R. Sonstelie
Robert T. Parry
John F. Moore
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
N e w Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
K A N S A S CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
S A N FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Barbara B.Henshaw
Robert B. Schaub
William J. Tignanelli 1
Dan M. Bechter 1
James M. McKee
Andre T. Anderson
Robert J. Slack
James T. Curry III
Melvyn K. Purcell 1
Robert J. Musso 1
David R. Allardice 1
Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard
Samuel H. Gane
Carl M. Gambs 1
Kelly J. Dubbert
Steven D. Evans
Sammie C. Clay
Robert Smith, III 1
James L. Stull 1
Mark L. Mullinix 1
Raymond H. Laurence 1
Andrea P. Wolcott
Gordon R. G. Werkema 2
* Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President
A87
Publications of Interest
FEDERAL
RESERVE
CONSUMER
CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
brochures covering individual credit laws and topics,
as pictured below.
Five brochures on the mortgage process are available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, A
Consumer's Guide to Mortgage Settlement Costs,
Home Mortgages: Understanding the Process and
Your Right to Fair Lending, and Looking for the Best
Mortgage: Shop, Compare, Negotiate. These brochures were prepared in conjunction with the Federal
Home Loan Bank Board and in consultation with
other federal agencies and trade and consumer
groups. The Board also publishes the Consumer
Handbook to Credit Protection Laws, a complete
guide to consumer credit protections. This forty-fourpage booklet explains how to shop and obtain credit,
how to maintain a good credit rating, and how to go
about resolving credit problems.
Shop . . . The Card You Pick Can Save You Money
is designed to help consumers comparison shop when
looking for a credit card. It contains the results of the
Federal Reserve Board's biannual survey of the terms
of credit card plans offered by credit card issuers
throughout the United States. Because the terms can
affect the amount an individual pays for using a
credit card, the booklet lists the annual percentage
rate (APR), annual fee, grace period, type of pricing
(fixed or variable rate), and a telephone number for
each card issuer surveyed. A Guide to Business Credit
for Women, Minorities, and Small Businesses covers
the credit application process and points out sources
of technical assistance for small business loans.
Up to 100 copies of consumer publications are
available free of charge from Publications Services,
Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
88
Federal Reserve Bulletin • February 2000
Publications of Interest
FEDERAL RESERVE REGULATORY
SERVICE
To promote public understanding of its regulatory functions, the Board publishes the Federal Reserve Regulatory Service, a four-volume loose-leaf service containing all Board regulations as well as related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains citation indexes and a subject index.
The Monetary Policy and Reserve
Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included is the Board's list of
foreign margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, BB, and DD,
and associated materials.
GUIDE TO THE FLOW OF FUNDS
the Federal Reserve Regulatory Service and $75 for
each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the service and $90 for each handbook.
The Federal Reserve Regulatory Service is also available on CD-ROM for use on personal computers. For a
standalone PC, the annual subscription fee is $300. For
network subscriptions, the annual fee is $300 for 1 concurrent user, $750 for a maximum of 10 concurrent
users, $2,000 for a maximum of 50 concurrent users,
and $3,000 for a maximum of 100 concurrent users.
Subscribers outside the United States should add $50
to cover additional airmail costs. For further information, call (202) 452-3244.
All subscription requests must be accompanied by a
check or money order payable to the Board of Governors of the Federal Reserve System. Orders should be
addressed to Publications Services, mail stop 127, Board
of Governors of the Federal Reserve System, Washington, DC 20551.
ACCOUNTS
Guide to the Flow of Funds Accounts explains in detail
how the U.S. financial flow accounts are prepared. The
accounts, which are compiled by the Division of
Research and Statistics, are published in the Board's
quarterly Z.l statistical release, "Flow of Funds
Accounts, Flows and Outstandings." The Guide updates
and replaces Introduction to Flow of Funds, published
in 1980.
The 670-page Guide begins with an explanation of
the organization and uses of the flow of funds accounts
and their relationship to the national income and
product accounts prepared by the U.S. Department of
Commerce. Also discussed are the individual data
series that make up the accounts and such proce-
The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers, and
risk-reduction policy. It includes Regulations CC, J, and
EE, related statutes and commentaries, and policy
statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for
dures as seasonal adjustment, extrapolation, and
interpolation.
The balance of the Guide contains explanatory tables
corresponding to the tables of financial flows data that
appeared in the September 1992 Z.l release. These
tables give, for each data series, the source of the data or
the methods of calculation, along with annual data for
1991 that were published in the September 1992 release.
Guide to the Flow of Funds Accounts is available for
$8.50 per copy from Publications Services, Board of
Governors of the Federal Reserve System, Washington,
DC 20551. Orders must include a check or money order,
in U.S. dollars, made payable to the Board of Governors
of the Federal Reserve System.
A89
Federal Reserve Statistical Releases
Available on the Commerce Department's
Economic Bulletin Board
The Board of Governors of the Federal Reserve System makes some of its statistical releases available to
the public through the U.S. Department of Commerce's economic bulletin board. Computer access
to the releases can be obtained by subscription.
For further information regarding a subscription to
the economic bulletin board, please call (202) 4821986. The releases transmitted to the economic bulletin board, on a regular basis, are the following:
Reference
Number
Statistical release
Frequency of release
H.3
Aggregate Reserves
Weekly/Thursday
H.4.1
Factors Affecting Reserve Balances
Weekly/Thursday
H.6
Money Stock
Weekly/Thursday
H.8
Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions
Weekly/Monday
H.10
Foreign Exchange Rates
Weekly/Monday
H.15
Selected Interest Rates
Weekly/Monday
G.5
Foreign Exchange Rates
Monthly/end of month
G.17
Industrial Production and Capacity Utilization
Monthly/midmonth
G.19
Consumer Installment Credit
Monthly/fifth business day
Z. 1
Flow of Funds
Quarterly
@FedFRASER