Full text of Federal Reserve Bulletin : January 1994
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VOLUME 80 •
NUMBER 1 •
JANUARY 1994
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
that the Federal Reserve is engaged in an
aggressive effort in its fair lending examinations to identify any violations of the fair lending laws for corrective action, before the Senate
Committee on Banking, Housing, and Urban
Affairs, November 4, 1993.
1 TREASURY AND FEDERAL RESERVE
FOREIGN EXCHANGE OPERATIONS
During the August-October period, the dollar
appreciated 3.7 percent against the Japanese
yen, depreciated 3.2 percent against the German mark, and was little changed on a tradeweighted average basis, declining 0.4 percent.
5 STAFF
STUDIES
In The Economics of the Private Placement
Market, the authors examine the economic
foundations of the market for privately placed
debt, analyze the market's role in corporate
finance, and determine its relationship to other
corporate debt markets. They also analyze the
effects on the market of recent occurrences
such as a credit crunch in the belowinvestment-grade segment, the adoption of
Rule 144A by the Securities and Exchange
Commission, and the changing role of commercial banks.
19 John P. LaWare, member, Board of Governors,
presents the views of the Board on the proposed legislation on Fair Trade in Financial
Services (H.R.3248) and says that the legislation would change two fundamental principles
in U.S. policy toward participation by foreign
financial firms in U.S. markets—national treatment and grandfather rights for existing foreign
banking operations—and says that both of these
principles are worth preserving, before the Subcommittee on International Development,
Finance, Trade and Monetary Policy of the
House Committee on Banking, Finance and
Urban Affairs, November 9, 1993.
23
ANNOUNCEMENTS
CAPACITY
Response to proposals to restructure the banking supervisory agencies.
Industrial production rose 0.8 percent in October after an upwardly revised gain of 0.4 percent in September. The utilization of total
industrial capacity increased 0.8 percentage
point between August and October. It now
stands at 82.4 percent, the highest rate since
August 1990 and 0.5 percentage point above
the 1967-92 average.
Availability of 1994 fee schedules for services
provided by the Federal Reserve Banks.
7 INDUSTRIAL PRODUCTION
UTILIZATION
10 STATEMENTS
TO THE
AND
CONGRESS
Lawrence B. Lindsey, member, Board of Governors, presents the results of the 1992 Home
Mortgage Disclosure Act (HMDA) data and
says that the HMDA data provide a starting
point for in-depth analyses of the mortgage
lending practices of individual institutions and
Approval of volume-based pricing for certain
services and products offered by the Federal
Reserve Banks of Richmond and Minneapolis.
Increase in the net transaction accounts to
which a 3 percent reserve requirement applies.
Approval of an extension of an interim provision in Regulation O.
Supplemental information to the proposed rule
on real estate appraisals; interagency notice of
proposed rulemaking prescribing safety and
soundness standards required by section 132 of
the Federal Deposit insurance Corporation
Improvement Act of 1991; advance notice of
porposed rulemaking on Regulation M; proposed amendments to Regulation DD; proposal
to expand the Fedwire funds transfer format
and adopt a more comprehensive set of data
elements.
Publication of a revision of the Bank Holding
Company Supervision Manual.
Change in Board staff.
25 MINUTES OF THE FEDERAL OPEN
MARKET COMMITTEE MEETING
At its meeting on September 21, 1993, the
Committee adopted a directive that called for
maintaining the existing degree of pressure on
reserve positions and that did not include a
presumption about the likely direction of any
adjustment to policy during the intermeeting
period. Accordingly, the directive indicated that
in the context of the Committee's long-run
objectives for price stability and sustainable
economic growth, and giving careful consideration to economic, financial, and monetary
developments, slightly greater or slightly lesser
reserve restraint might be acceptable during the
intermeeting period. The contemplated reserve
conditions were expected to be consistent with
modest growth in M2 and M3 over the balance
of the year.
33 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A 1 FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
November 24, 1993.
A 3 GUIDE
TO TABULAR
PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A 6 9 GUIDE
TO STATISTICAL
RELEASES
AND
SPECIAL TABLES
A 7 0 INDEX TO STATISTICAL
TABLES
A72 BOARD OF GOVERNORS AND STAFF
A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A 7 6 FEDERAL RESERVE
PUBLICATIONS
BOARD
A78 MAPS OF THE FEDERAL RESERVE
SYSTEM
A80 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report describes Treasury and System foreign exchange operations for the period
from August through October 1993. It was presented by Peter R. Fisher, Senior Vice President
and Manager for Operations of the Federal
Reserve Bank of New York. Frank Keane was primarily responsible for preparation of the report.
During the August-October period, the dollar
appreciated 3.7 percent against the Japanese yen,
depreciated 3.2 percent against the German mark,
and was little changed on a trade-weighted average
basis, declining 0.4 percent.1 On August 19, the
1. The dollar's movements on a trade-weighted basis are measured using an index developed by the staff at the Board of
Governors of the Federal Reserve System.
U.S. monetary authorities purchased $165 million
against the yen in the period's only intervention
operation.
APPRECIATION AND SUBSEQUENT REVERSAL
OF THE YEN AGAINST THE DOLLAR
During early August, the yen strengthened against
the currencies of all major industrialized countries,
reaching record highs against the dollar, the mark,
the Swiss franc, the pound sterling, and the Canadian and Australian dollars. On August 11, the
release of data indicating a wider-than-expected
expansion of 28 percent (year-on-year) in Japan's
merchandise trade surplus to $11.84 billion triggered a sharp yen appreciation, and it traded to a
1. Exchange rate movement of the dollar against the Japanese yen, May-October 1993
2
Federal Reserve Bulletin • January 1994
new high against the dollar of ¥103.50. Continuing
weakness in domestic economic indicators was perceived as evidence that a reduction of Japan's
current account surplus was unlikely in the near
term, and the yen moved to several new daily highs
against the dollar, peaking at a postwar high of
¥100.40 on August 17.
From August 16 to 18, conditions in the Japanese money markets were eased. On August 19, the
Japanese cabinet met and agreed to try to devise
additional measures to stimulate domestic demand.
The dollar was trading at ¥102.50 in early New
York dealing on August 19 but then declined
quickly to ¥101.35 after the release of data on the
U.S. merchandise trade deficit, which, at $12.1 billion for June, was worse than expected; at the same
time, the dollar abruptly declined 1 pfennig against
the mark. The U.S. monetary authorities intervened
shortly after the release of the trade data. During
the day, they purchased a total of $165 million
against the yen, shared equally between the Federal
Reserve and the Treasury's Exchange Stabilization
Fund. This operation was coordinated with another
monetary authority.
Initially, the operations surprised market participants, and the dollar promptly rose. During the
morning, Treasury Under Secretary Summers
released a statement welcoming the decline in
Japanese money market rates and expressing concern that further yen appreciation could retard
growth in the Japanese and world economies. Operations continued after Under Secretary Summers's
statement but ceased before noon. Market participants subsequently continued to cover short positions throughout the afternoon, and the dollar
reached a high of ¥106.75 before closing the day at
¥105.95.
In the month after the operation, the dollar-yen
exchange rate largely traded between ¥103.00 and
¥106.00, as market participants increasingly
focused on the apparent weakness of the Japanese
economy. A series of Japanese data releases
showed continued weak business sentiment, deteriorating corporate profits, and a decline of 0.4 percent in second-quarter gross domestic product.
Consequently, when the Bank of Japan lowered the
official discount rate (ODR) on September 21 by a
greater-than-expected reduction of 75 basis points
2. Exchange rate movement of the dollar against the German mark, May-October 1993
Treasury and Federal Reserve Foreign Exchange Operations
3
3. Implied three-month Eurocurrency interest rates: December futures contract
Interest rate differential
Interest rate
1.25
1.00
Japanese yen
0.75
Interest rate differential
Interest rate
2.75
German mark
2.50
2.25
U.S. dollar
August
September
October
to 1.75 percent, the action was perceived as an
appropriate supplement to the government's efforts
to stimulate the economy, not as a device to avoid
further yen appreciation. Favorable reactions by
senior U.S. officials to the Bank of Japan's action
led to a perception that tensions between the United
States and Japan on trade issues had given way to
greater cooperation, and the yen declined about
1.5 percent, closing on September 21 at ¥106.18.
The dollar firmed gradually over the latter half of
the three-month period, while expectations of nearterm volatility in the dollar-yen exchange rate
dwindled substantially. The implied one-month
option volatility fell from about 14 percent in midSeptember to about 10 percent in late October. The
period closed with the dollar-yen exchange rate
trading steadily above ¥108.00 in late October.
August
September
October
the Exchange Rate Mechanism (ERM) to fluctuate
within 15 percent of their central parities. However,
authorities from Germany and the Netherlands
agreed to maintain their bilateral exchange rate
within 2.25 percent of their central parity. During
the uncertainty created by the currency turmoil in
Europe, market participants had aggressively accumulated dollar positions in late July. When widely
anticipated European interest rate reductions failed
to materialize in the first few weeks of August, the
4. Short-term interest rates, selected countries,
AujmstrOctober 1993
Percent
Germany
7
6
5
United States
APPRECIATION OF THE MARK AGAINST THE
DOLLAR IN THE WAKE OF THE ERM CRISIS
Japan
The European Community finance ministers and
central bank governors agreed, effective Monday, August 2, to permit currencies participating in
n
~~i'
August
September
October
4
Federal Reserve Bulletin • January 1994
1. Federal Reserve reciprocal currency arrangements
Millions of dollars
Institution
Amount of
facility,
October 31, 1993
2.
Net profits or losses (-) on U.S. Treasury
and Federal Reserve foreign exchange operations1
Millions of dollars
Period and item
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
Deutsche Bundesbank
Bank of Italy
Bank of Japan
250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000
Bank of Mexico
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
700
500
250
300
4,000
Bank for International Settlements
Dollars against Swiss francs
Dollars against other authorized European
currencies
Total
600
1,250
30,100
mark began to appreciate against the dollar. The
negative sentiment toward the dollar during this
period was reinforced by market reports of dollar
sales by European central banks to adjust reserve
positions after July's currency turmoil and by a
widening of interest rate differentials in the mark's
favor implied by Eurocurrency futures contracts.
The Bundesbank Council's decision on
August 26 to leave official rates unchanged disappointed market expectations of an interest rate cut,
and banks were caught short of funds at the end of
a reserve period. When the council did lower the
discount and Lombard rates 50 basis points to
6.25 percent and 7.25 percent respectively on September 9, the concurrent, smaller-than-expected
reduction of 10 basis points to 6.70 percent in the
Bundesbank's money market repurchase rate led to
continued tightness in German money markets.
These developments resulted in continued mark
strength against the dollar. Although the midSeptember political unrest in Russia caused the
dollar to appreciate briefly against the mark, the
dollar again drifted lower when the crisis was
resolved, closing at DM1.6013 on October 13.
On October 21, the Bundesbank Council surprised exchange markets by again reducing its dis-
Valuation profits and losses on
outstanding assets and liabilities
as of July 31. 1993
Realized, August 1October 31, 1993
Valuation profits and losses on
outstanding assets and liabilities
as of October 31, 1993
Federal
Reserve
U.S. Treasury
Exchange
Stabilization
Fund
3,226.6
3,005.5
22.1
22.1
3,368.5
2,839.0
1. Data are on a value-date basis.
count and Lombard rates 50 basis points to
5.75 percent and 6.75 percent respectively. The
council also announced that it would conduct the
following week's fourteen-day repurchase agreement at a fixed rate of 6.40 percent, a reduction of
27 basis points from the previous day's variablerate repurchase agreement. The dollar, which had
begun rising gradually against the mark before the
announcement, rose steadily over the remainder of
the period, closing at DM1.6857 on October 29.
OTHER OPERATIONS
The Federal Reserve and the Treasury's Exchange
Stabilization Fund (ESF) each realized profits of
$22.1 million from the sales of Japanese yen in the
market. Cumulative valuation gains on outstanding
foreign currency balances as of the end of October
were $3,368.5 million for the Federal Reserve and
$2,839.0 million for the ESF.
The Federal Reserve and the ESF regularly
invest their foreign currency balances in a variety
of instruments that yield market-related rates of
return and that have a high degree of liquidity and
credit quality. A portion of the balances is invested
in securities issued by foreign governments. As of
the end of October, the Federal Reserve and the
ESF held, either directly or under repurchase agreements, $10,004.3 million and $10,276.6 million
respectively in foreign government securities valued at end-of-period exchange rates.
•
5
Staff Studies
The staff members of the Board of Governors of the
Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range of
economic and financial subjects. From time to time
the studies that are of general interest are published in the Staff Studies series and summarized in
the Federal Reserve Bulletin. The analyses and
conclusions set forth are those of the authors and
do not necessarily indicate concurrence by the
Board of Governors, by the Federal Reserve Banks,
or by members of their staffs.
Single copies of the full text of each study are
available without charge. The titles available are
shown under "Staff Studies" in the list of Federal
Reserve Board publications at the back of each
Bulletin.
STUDY SUMMARY
THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET
Mark Carey, Stephen Prowse, John Rea, and Gregory Udell
Prepared as a staff study in spring 1993
The private placement market is an important
source of long-term funds for U.S. corporations.
Nonetheless, it has received relatively little attention in the financial press or the academic literature, partly because of the nature of the instrument
itself. In particular, a private placement is a debt or
equity security sold in the United States that is
exempt from registration with the Securities and
Exchange Commission by virtue of being issued in
transactions "not involving any public offering."
Thus, information about private transactions is
often limited, and following and analyzing developments in the market are difficult. Indeed, the last
major study of the private placement market was
published in 1972, and only a few articles have
appeared in economics and finance journals since
then.
This study examines the economic foundations
of the market for privately placed debt, analyzes
the market's role in corporate finance, and determines its relationship to other corporate debt markets. One key characteristic of the private placement market is that it is information intensive,
meaning that lenders must on their own obtain
information about borrowers through due diligence
and loan monitoring. Many borrowers in this market are smaller, less-well-known companies or
those with complex financings, and thus they can
be served only by lenders willing to perform extensive credit analyses. Such borrowers effectively
have no access to the public bond market, which
provides funding primarily to large, well-known
firms posing credit risks that can be evaluated and
monitored with publicly available information.
In this respect, private market lenders, which are
mainly life insurance companies, resemble banks
more than they resemble buyers of publicly issued
corporate debt. However, the private placement
market is not exactly like the bank loan market:
Private placements are mainly longer-term, fixedrate debt, and borrowers in this market are on
average larger and less information problematic
than bank borrowers. Private placements typically
have fewer and weaker covenants and are less
frequently secured than bank loans.
The study compares the terms of private placements with those of public bonds and bank loans
and analyzes the characteristics of borrowers, their
6
Federal Reserve Bulletin • January 1994
motivations for using the private market, and the
operations of lenders. It presents an explanation
grounded in theories of financial intermediation
and financial contracting for the structure of the
market and for the differences between the private
market and other markets for corporate debt. It also
describes the process by which private issuance
occurs, focusing on the role of agents, which advise
issuers and assist in distributing securities.
Finally, the study analyzes some recent occurrences affecting the market, including a credit
crunch in the below-investment-grade segment, the
adoption of Rule 144A by the Securities and
Exchange Commission, and the changing role of
commercial banks. In the past, life insurance companies were the primary buyers of low-rated private placements, but most have stopped buying
such issues, leaving many medium-sized borrowers
with few alternatives for long-term debt financing.
The study's explanation for the crunch, which
emphasizes a confluence of market and regulatory
events, highlights the fragility of informationintensive markets.
The adoption of Rule 144A in 1990, which clarified the circumstances under which a privately
placed security could be resold, has led to the
development of a market segment for private placements that are not information intensive. This new
segment is thus fundamentally different from the
older, traditional market and has many characteristics of the public bond market. Its primary attraction for borrowers has been the availability of
funds at interest rates only slightly higher than
those in the public market without the costs of
registration.
Commercial banks act both as agents in the
private placement market and as providers of loans
that compete somewhat with private placements.
The study considers the prospects for a substantial
increase in competition between the bank loan and
private placement markets and for a substantial
change in banks' roles as agents.
•
7
Industrial Production and Capacity Utilization
for October 1993
Released for publication
November
15
Industrial production rose 0.8 percent in October
after an upwardly revised gain of 0.4 percent in
September. This recent acceleration was fueled by
a rebound in the production of motor vehicles and
parts—up 3.9 percent in September and 7.3 percent
in October after four months of negative to flat
growth. Excluding motor vehicles and parts, industrial production increased 0.3 percent in September
and 0.4 percent in October. At 112.2 percent of its
1987 average, total industrial production was
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Durable
manufacturing
1988
1989
1990
1992
1991
1993
1988
1990
1989
1991
1992
1993
Capacity and industrial production
Ratio scale, 1987 production = 100
Ratio scale, 1987 production =100
— Total industry
Capacity
-
140
— Manufacturing
120
—
Capacity
^
100
Production
1
1
1
1
1
1
1
1
1
1
140
.
—
^ ^ ^ ~
Production
80
1
'
1
1
1
1
1
1
1
1
1
1
1
1
1
Percent of capacity
Manufacturing
90
—
—
Utilization
Utilization
80
^
— -
70
J
1981
1983
I
1985
L
1987
J
1989
L
1991
1
1993
1981
1
1
1983
1
1
1985
All series are seasonally adjusted. Latest series, October. Capacity is an index of potential industrial production.
1
1
1987
100
80
Percent of capacity
Total industry
120
1
1
1989
1
1
1991
1
1993
8
Federal Reserve Bulletin • January 1994
Industrial production and capacity utilization1
Industrial production, index, 1987 = 100
Percentage change
1993
Category
19932
r
July
Aug.
Total
110.8
Previous estimate
110.7
Major market groups
Products, total3
Consumer goods ...
Business equipment
Construction supplies
Materials
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
r
Sept.
Oct.p
July'
110.9
111.4
112.2
3
.1
.4
110.9
111.0
.2
.1
.2
110.0
107.7
137.1
98.4
112.0
110.1
107.5
137.6
98.5
112.1
110.7
107.9
139.4
99.5
112.4
111.7
109.3
141.3
99.7
113.0
.6
.3
.8
1.7
-.1
.1
-.1
.3
.1
.1
111.6
115.4
107.0
96.4
116.9
111.8
115.6
107.1
95.5
117.8
112.5
116.8
107.2
97.2
114.9
113.5
118.3
107.5
96.6
115.0
.3
.7
-.2
-1.7
1.8
.1
.2
.1
-.9
.8
Aug.'
Sept.'
Oct.p
.8
4.4
.5
.4
1.3
1.0
.3
.9
1.2
1.4
.2
.6
4.3
2.7
10.9
5.3
4.6
.6
1.0
.1
1.7
-2.5
.9
1.3
.4
-.5
.1
5.1
7.7
1.6
-1.0
2.0
MEMO
Capacity utilization, percent
1992
Average,
1967-92
Low,
1982
Oct. 1992
to
Oct. 1993
1993
High,
1988-89
Oct.
July'
Aug.'
Sept.'
Oct.p
Capacity,
percentage
change,
Oct. 1992
to
Oct. 1993
Total
81.9
71.8
84.8
80.2
81.7
81.6
81.9
82.4
1.6
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
81.2
80.7
82.2
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.1
83.3
89.1
87.0
92.6
79.2
77.9
82.3
87.1
85.6
80.7
79.2
84.5
86.5
88.1
80.7
79.1
84.7
85.8
88.7
81.1
79.6
84.7
87.4
86.4
81.7
80.3
85.0
86.9
86.4
1.8
2.2
.9
-.8
1.1
1. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
2. Change from preceding month.
4.4 percent above its level a year ago. The utilization of total industrial capacity increased 0.8 percentage point between August and October. It now
stands at 82.4 percent, the highest rate since August 1990 and 0.5 percentage point above the
1967-92 average.
When analyzed by market group, the data show
that the turnaround in motor vehicles and parts
contributed to strong October gains in the indexes
for durable consumer goods, business equipment,
and durable goods materials. The production of
consumer durables other than automotive products
increased 1.3 percent, a rise led by gains in the
production of household furniture and appliances.
The production of consumer nondurables rose
0.6 percent, as growth in the output of food and
tobacco, consumer chemical products, and fuels
more than offset an 0.8 percent decline in the
3. Contains components in addition to those shown,
r Revised,
p Preliminary.
output of clothing. Aside from motor vehicles and
parts, other types of business equipment also
advanced: Output of industrial equipment gained
0.3 percent, and the production of information processing equipment and that of other equipment
both rose 0.9 percent. In contrast, the index for
defense and space equipment continued its downward trend, declining 0.9 percent.
After increasing 1.0 percent in September, the
output of construction supplies grew only 0.2 percent in October. In contrast, the overall output of
materials increased 0.6 percent, up from 0.3 percent in September. This increase was concentrated
largely in durable goods materials, which expanded
1.1 percent. Along with the pickup in the output of
motor vehicle parts, continued gains in the production of computer parts and semiconductors paced
the growth in durable goods materials. Elsewhere
Industrial Production and Capacity Utilization
in the materials group, the production of nondurable goods materials advanced 0.4 percent, but the
production of energy materials declined 0.3 percent
because of a decrease in oil and natural gas
extraction.
When analyzed by industry group, the data show
that after rising 0.6 percent in September, manufacturing output expanded 0.9 percent in October. The
output of durable goods industries grew 1.3 percent, but the production of nondurable goods industries rose only 0.4 percent. Along with the gains in
the motor vehicles and parts industry, noticeable
increases were also recorded in the furniture, iron
9
and steel, fabricated metals, nonelectrical machinery, electrical machinery, food, tobacco, textiles,
chemicals, petroleum, and leather industries. As a
result, the utilization of manufacturing capacity
increased 0.6 percentage point in October, to
81.7 percent, one-half percentage point above its
average rate from 1967 to 1992. And the utilization
rate in primary-processing industries reached
85.0 percent, well above its longer-run average rate
of 82.2 percent.
Utilities production edged up 0.1 percent
in October, but mining output slipped back
0.5 percent.
•
10
Statements to the Congress
Statement by Lawrence B. Lindsey, Member,
Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, November
4, 1993
I am pleased to appear before your committee
today to present the results of the 1992 Home
Mortgage Disclosure Act (HMDA) data. I will
also make some remarks about the Federal Reserve's fair lending enforcement efforts.
Discrimination tears at the fabric of our democratic society. For the Federal Reserve, no
single consumer issue is of greater concern than
ensuring that the credit-granting process in the
institutions that we regulate is free of unfair bias.
Fairness in the assessment of credit applications
is absolutely critical to our nation's well-being.
Racial discrimination in particular—no matter
how subtle, and whether intended or not—cannot, and will not, be tolerated.
The Federal Reserve's primary responsibility
with respect to the HMDA data is to provide the
data processing services for all the agencies
under the auspices of the Federal Financial Institutions Examination Council (FFIEC) as a
matter of operational convenience.
The responsibility for gathering the HMDA
information, and ensuring that institutions follow
fair lending practices, is allocated by law to six
federal agencies. Of the more than 9,000 institutions that reported HMDA data in 1992, the
Federal Reserve supervised approximately 600.
For fair lending compliance—which applies not
just to the institutions that file HMDA data but to
all depositories—we supervise about 1,000 of the
almost 13,000 banks and thrift institutions.
GENERAL
DATA
DESCRIPTION
The most striking feature of the HMDA data for
1992 is the enormous rise in the total number of
housing loans applied for, compared with earlier
years. The HMDA data show that more than
10 million such loans were applied for, compared
with fewer than 7 million in 1991 and just 5.2 million in 1990. There is no question that a combination of lower interest rates and an improving
and expanding economy in 1992 were the primary reasons for this growth.
The primary source of the growth in the volume of reported home lending activity was a
dramatic increase in home refinancing. In 1992,
5.2 million applications for home refinancing
were reported, compared with just 2.1 million in
the previous year. The total number of home
purchase loan applications also rose nearly
300,000. In addition, the number of applications
for home improvement loans rose modestly. Not
only was the number of applications up, but so
was the number of approvals. More than 4 million home refinancing loans were approved, 77.7
percent of the total applied for, compared with
roughly 1.5 million and a 73.2 percent approval
rate in 1991. Home purchase approval rates for
conventional loans were also up modestly, from
71.2 percent in 1991 to 72.9 percent in 1992.
Approval rates for government-backed loans also
rose.
This higher approval rate benefited both
black and white applicants. Conventional home
purchase loan approval rates rose 1.4 percentage points for blacks and 1.9 percentage points
for whites. Government-backed mortgage approval rates rose 2.0 percentage points for
blacks and 3.0 percentage points for whites. Of
those individuals refinancing their homes, black
approval rates rose roughly 6 percentage
points, while white approval rates rose 4 percentage points. I would point out that these
rises in approval rates for refinancings are particularly striking given that the number of applications for both groups more than doubled.
And finally, with regard to home improvement
loans, black approval rates rose 3.5 percentage
Statements to the Congress
points, while white approval rates rose 1.9
percentage points.
Approval rates also rose across the board for
all income groups. Home refinancing loan approval rates rose roughly 4 percentage points for
each major income group, while home purchase
loan approval rates rose most dramatically for
low-income borrowers. The approval rate for
applicants with incomes less than 80 percent of
the metropolitan statistical area (MSA) median
income went from 59.8 percent in 1991 to 68.9
percent in 1992 for conventional loans. For government-backed loans, the same group experienced a rise in approval rate from 66.2 percent to
74.8 percent. Approval rates for other income
groups, on the other hand, were up roughly 1 to
2 percentage points.
The disparities between black and white approval and denial rates persist. For example,
looking at conventional home purchase loans,
about 36 percent of black applicants and 27
percent of Hispanic applicants were denied
credit, compared with 16 percent of white applicants and 15 percent of Asian applicants—
roughly the same as in 1991, although a slight
improvement for black applicants. This matter
continues to be of great concern.
Before going on, it is important to stress what
conclusions can be drawn from the HMDA data.
There is no question that the differential denial
rates and approval rates for different income
groups are troubling. However, the denial rates
for applicants categorized by their race or national origin reflect a variety of factors. One
factor relates to differences in the proportion of
each group with relatively low incomes. In 1992,
21.0 percent of the white applicants for conventional home purchase loans had incomes that
were less than 80 percent of the median family
income for their MSA. The comparable percentages for blacks, Hispanics, and Asians were 37.1
percent, 27.6 percent, and 16.1 percent respectively.
Although the distribution of applicants by income may account for some variation among
racial groups in loan disposition rates, looking at
the 1992 HMDA data, other factors account for
most of the difference. Differences in income do
not completely explain it. This conclusion is
evident because, after controlling for income,
11
white applicants for conventional home loans in
all income groupings have lower rates of denial
than do black and Hispanic applicants. In fact,
the denial rate of 21.1 percent for whites in the
lowest income category (less than 80 percent of
the MSA median family income) is the same as
for blacks in the highest income category (more
than 120 percent of the MSA median family
income).1
Differential treatment on the basis of race and
national origin may contribute to the variation,
but it too does not fully explain the disparities in
denial rates across racial and ethnic groups. For
example, the study by the Federal Reserve Bank
of Boston of lending patterns in Boston concluded that, after controlling for all known financial factors, race and national origin appeared to
account for differences in denial rates among
applicants. At the same time, the study also
concluded that differences in income, together
with other financial characteristics, alone would
have caused black and Hispanic applicants to be
denied credit at nearly twice the rate of white
applicants.
The Boston study highlighted the limitations of
interpreting the HMDA data. Such limitations do
not in any way diminish the importance of ensuring equal access to credit for all Americans. The
data merely point out the problems with relying
on purely statistical analysis in reaching conclusions about the fairness of lending decisions. As
I will note later in my remarks, the approach
taken by the Federal Reserve and other agencies
in developing new analytic techniques for investigating lending bias strikes a balance between
traditional investigative techniques and computerassisted statistical analysis. In particular, we use
statistics to identify specific loan files that are
suspicious and require further investigation.
However, statistics alone can never, and should
never, be used as the sole criterion for determining whether discrimination exists in a particular
institution.
1. In the highest income category, the denial rate was 8.8
percent for whites in 1992; the denial rate for blacks in the
lowest income category was 36.0 percent.
12 Federal Reserve Bulletin • January 1994
THE DISCLOSURE
PROCESS
Under HMDA, most mortgage lenders that have
offices in metropolitan areas, including independent mortgage companies, disclose information
on the disposition of home loan applications and
on the race or national origin, gender, and annual
income of loan applicants and borrowers. Lenders also disclose, for loans originated or purchased during a year, the loans they sold, classified by the type of secondary market purchaser,
and may indicate the reasons for denial of other
applications.2
Covered institutions record separately, for
each loan application acted on and each loan
purchased, the items of information required by
the Federal Reserve Board's Regulation C.
Lenders submit this information to their respective federal regulator, which then sends the data
to us for processing. Acting through the Federal
Reserve, the FFIEC produces disclosure statements for each covered lender to make available
to the public, plus an aggregate report for each
metropolitan statistical area. These reports show
the overall lending activity for covered lenders in
each MSA and, together with the individual
disclosure statements for lenders active in a
given MSA, are available to the public at central
data depositories. This information is also made
available to the public in libraries throughout the
United States.
Besides the print versions of the disclosure
statements and aggregate reports, the FFIEC
makes HMDA data available to the public in
other forms. For instance, the HMDA reports or
underlying data are available on microfiche, computer tape, and PC diskette and soon will be
provided on CD ROM. The CD ROM format
should be much more manageable than paper and
microfiche for many users—especially those who
view the data at central depositories—and will
offer selections for viewing the data by MSA or
by institution.
2. Expanded data collection was required pursuant to
amendments to HMDA in the Financial Institutions Reform,
Recovery and Enforcement Act of 1989 (FIRREA). The
expansion in coverage of mortgage companies came with
FIRREA and with the amendments to HMDA in the Federal
Deposit Insurance Corporation Improvement Act of 1991.
QUALITY
OF THE
DATA
I would like to say a few words about the quality
of the HMDA data. Over the years, we and the
other agencies that process HMDA data have had
concerns about errors in the data that are submitted to us. By and large, errors can be traced to the
data submitted (such as a lender's recording incorrect census tract numbers), although a few
may arise during the agencies' data entry of loan
register data submitted in hard copy. In the past
three years, we have improved our capability to
identify errors. As a result, we have succeeded in
reducing the data errors in computer records from
roughly 5 percent in 1990 and 1991 to less than
one-half of 1 percent now.
Other types of errors cannot be identified at the
processing stage. It is difficult to know, for instance, whether a financial institution has incorrectly identified the race of the applicant or has
entered a census tract number that is valid but that
is not correct for the property location to which
the loan relates. Such errors evade our centralized
data quality checks. Our examiners have stepped
up their efforts to detect these problems during
bank examinations, and we require institutions to
correct and resubmit their HMDA data when we
find errors. Financial institutions are strongly encouraged to ensure that they report accurate information; we help them by providing software
with edit-check capabilities and through distribution of the FFIEC publication A Guide to HMDA
Reporting: Getting it Right!
DETAILED RESULTS OF THE 1992
DATA
COLLECTION
HMDA
The 1992 HMDA data reflect information submitted by 9,073 lenders, including 5,468 commercial
banks, 1,395 savings and loan associations, 1,706
credit unions, and 504 mortgage companies (of
which 224 were unaffiliated with a depository
institution). The number of lenders disclosing
data fell about 3 percent from 1991, a reflection of
acquisitions, mergers, and failures.3 Although
3. The total number of reporters will be higher for 1993,
given the increased number of independent mortgage compa-
Statements to the Congress
the number of reporting institutions fell, the total
number of applications and loans reported increased more than 50 percent, from 7.89 million
in 1991 to 12.01 million in 1992. Much of the
increase was due to refinancing activity.
Volume of Applications
and
Loans
In 1992, lenders covered by HMDA acted on
roughly 10.03 million home loan applications—
3.54 million for purchasing, 5.22 million for refinancing, and 1.24 million for improving dwellings
for one to four families, and the balance for loans
on multifamily dwellings for five or more families. 4 Nearly 78 percent of the reported applications for home purchase loans were for conventional mortgage loans; the remainder were for
government-backed forms of credit—loans insured or guaranteed by the Federal Housing
Administration (FHA), the Veterans Administration (VA), or the Farmers Home Administration
(FmHA). The predominant reason for the substantial increase in volume of home loan applications reported in 1992 was the growth in refinancing activity. Spurred primarily by lower interest
rates, the volume of applications to refinance an
existing mortgage loan increased in 1992 almost
150 percent over the previous year. The growth
in refinancings also reflects innovations in the
marketplace, including the greater availability of
"no-fee" loans and more efficient processing of
applications that helped reduce closing costs. 5
Among the different racial and ethnic groups, the
increase in 1992 applications for conventional
loans by Asians was 5 percent, by blacks 22
percent, by Hispanics 8 percent, and by whites
17 percent. Applications for government-backed
loans decreased roughly 5 percent for each
group.
The conventional mortgage share of all reported home purchase loan applications in-
nies that will report lending activity as a consequence of
changes in coverage that took effective January 1, 1993.
4. Besides applications, lenders also reported data on 1.98
million loans they purchased during 1992 from other institutions.
5. "No-fee" loans are those in which the consumer incurs
no out-of-pocket expense to pay either closing costs or
discount points on the loan. Such loans are often written with
a higher interest rate to compensate.
13
creased roughly 4 percent from 1991 to 1992.
This change in market share reflects a substantial
decline in FHA activity. In 1991 the FHA accounted for 20.4 percent of all purchase loan
applications and 20.5 percent of all home purchase loans. In 1992 these shares were 15.7
percent and 16.3 percent respectively. Recent
increases in the cost to homebuyers using FHA
loans, and greater availability of conventional
loan products designed to reach low- and
moderate-income homebuyers, likely account for
the reduced reliance on FHA loans.
Despite this decline, the FHA program is favored by many thousands of households, particularly among first-time homebuyers. For instance, in 1992 almost half of the homebuyers
using section 203(b) FHA loans (the principal
type of FHA single-family mortgage loan program) were first-time homebuyers. The proportion had been even higher in 1991, when 57
percent of the FHA borrowers were first-time
homebuyers.6 On the other hand, the program is
used infrequently to refinance existing home
loans. Historically, FHA loans have accounted
for only 3 percent to 4 percent of the refinancings
annually. In 1992, FHA loans accounted for 3.7
percent of the 3.95 million refinancing loans
reported by lenders covered by HMDA. One can
surmise that households refinancing a loan often
have accumulated sufficient equity in the home
and no longer need the FHA's low-downpayment
feature.
Use of Various Loan Products for
Purchase
Home
In 1992, 33.4 percent of home purchase loan
applicants with low incomes (income less than 80
percent of the median family income for their
MSA) applied for government-backed loans,
compared with 13.2 percent of applicants with
high incomes (income more than 120 percent of
the median family income for their MSA). The
greater reliance of lower-income households on
government-backed loans reflects several factors. For instance, low-income households are
6. U.S. Department of Housing and Urban Development,
Characteristics of FHA Single-Family Mortgage:
Sections of National Housing Act, (HUD, 1991).
Selected
14 Federal Reserve Bulletin • January 1994
much more likely to have limited money available to meet downpayment and closing cost
requirements; hence, they are much more likely
to use government-backed home loan programs. Conversely, the maximum limits on
FHA loan insurance make this program less
useful to households seeking to buy expensive
properties.
Among the racial groups, blacks are much
more likely than other groups to seek government-backed home purchase loans. In 1992,
41.2 percent of black applicants who applied for
a home purchase loan sought governmentbacked loans; the comparable figures for Hispanics, whites, and Asians were 31 percent,
20.9 percent, and 10.6 percent respectively.
These differences among racial groups are not
entirely attributable to differences in income.
For instance, among low-income loan applicants, 53.3 percent of blacks sought FHA or VA
loans, whereas only 40.4 percent of Hispanic
applicants, 31.2 percent of white applicants,
and 21.7 percent of Asian applicants applied for
a government-backed loan.
Disposition
of Loan
Applications
The 1992 HMDA data continue to show that
lenders approve most home loan applications,
particularly for buying a home or refinancing an
existing loan. In regard to home purchase loans,
lenders approved roughly 72.9 percent of applications for conventional financing and 74.1 percent of applications for government-backed financing. For refinancings, they approved 77.7
percent of the applications.
A comparison of the 1991 and 1992 HMDA
data indicates that, nationally, denied applications for conventional home purchase loans
declined somewhat, dropping from 18.9 percent
in 1991 to 17.8 percent in 1992. Denial rates
were also slightly lower in 1992 for applications
for government-backed home purchase loans
and for home improvement loans. For refinancings, on the other hand, denial rates dropped
significantly—from 15.9 percent in 1991 to 12.4
percent in 1992. In general, low interest rates in
1992 coupled with relatively stable home values
made homeownership more affordable in 1992
than in 1991 and may account for the lower
denial rates. In addition, innovative mortgage
loan programs by many lenders and greater use
of affordable home loan programs sponsored by
secondary market institutions may also have
contributed to the decline in denial rates.
Disposition
Applicants
Rate for Different Groups of
The rates of approval and denial vary considerably among home loan applicants grouped by
their income and racial characteristics. Nationwide in 1992, 80.5 percent of the applicants for
conventional home purchase loans who were in
the highest income grouping were approved for
loans, compared with 68.9 percent for the lowest income grouping. A similar relationship
between approval rates and applicant income is
found for other types of home loans, including
government-backed home purchase loans and
loans for refinancing and for home improvement.
As in previous years, the 1992 HMDA data
show that greater proportions of black and Hispanic loan applicants than of Asian and white
applicants are turned down for credit. Consistent
with these findings, the data also indicate that the
rate of loan denial generally increases as the
proportion of minority residents in a neighborhood increases.
Nationwide, for conventional home purchase
loans, 35.9 percent of black applicants, 27.3
percent of Hispanic applicants, 15.9 percent of
white applicants, and 15.3 percent of Asian applicants were denied credit in 1992. By comparison, the denial rates nationwide in 1991 for
conventional loans were 37.4 percent for blacks,
26.5 percent for Hispanics, 14.9 percent for
Asians, and 17.3 percent for whites.
The numbers for government-backed loans reflect somewhat lower rejection rates than for
conventional loans. In 1992, 23.8 percent of
black applicants, 18.5 percent of Hispanic applicants, 13.5 percent of Asian applicants, and 12.8
percent of white applicants were denied credit.
In 1991, by comparison, the rates of loan denial
were 26.4 percent for blacks, 18.9 percent for
Hispanics, 16.3 percent for whites, and 12.5
percent for Asians.
Statements to the Congress
Changes in the Amount
Income and Race
of Lending
by
In recent years, lenders have targeted low- and
moderate-income households and those seeking
to buy homes in low- and moderate-income
neighborhoods. Often such applicants have the
necessary income to purchase homes in the price
range they seek but lack the money to meet
traditional downpayment and closing cost requirements. In some special programs, such as
those sponsored by Fannie Mae and Freddie
Mac, loan underwriting guidelines have been
made more flexible. For example, these agencies' Community Homebuyers Programs have
reduced the amount that must come from the
applicant's own funds to cover the downpayment
and closing costs, and lenders may take into
account rent and utility payment records in lieu
of other credit history information.7 Other lender
programs also target households with low asset
levels and help keep monthly payments within
the borrower's reach by waiving the usual requirements for private mortgage insurance on
these very low downpayment loans.
It is difficult to gauge how much these targeted
loan programs have increased homebuying opportunities for low- and moderate-income households. Our analysis of the 1992 HMDA data
does, however, reveal a 27.1 percent increase in
conventional home purchase loans to applicants
from the two lowest income groupings (borrowers whose incomes were below the median family
income for their MSA). The number of conventional loans to borrowers from the two highest
income groupings (borrowers whose incomes
were equal to or greater than the median family
income for their MSA) also increased but by a
more modest 12.3 percent rate.
We have seen some change in the volume of
conventional home purchase loans to different
racial groups from 1991 to 1992. Blacks had the
largest growth in the number of loans received,
increasing 25.9 percent from 1991 to 1992. The
7. Other changes in the underwriting guidelines pertain to
the treatment of nontaxable income and income from seasonal part-time or second jobs, income continuity and job
stability, debt-to-income ratios, the appraiser's neighborhood
and home improvement analyses, and property condition.
15
increase in loans extended to white households
was a substantial 20.5 percent; the increases for
Hispanics and Asians were a more modest 7.6
percent and 5.6 percent respectively. The number of loans made to minorities is not necessarily
large, however. For example, out of a total of
1,896,000 conventional loans made in 1992 to the
four largest racial or ethnic groups, whites received 1,582,030, Asians received 68,416, Hispanics received 66,995, and blacks received
56,516.
For each group, the largest percentage gains in
conventional home purchase loans occurred
among homebuyers with incomes below the median family income for their MSA. For example,
among blacks whose incomes were below the
median, the increase was 33.9 percent. The percentage changes for whites, Hispanics, and
Asians in this income group were 28.2 percent,
25.4 percent, and 42.2 percent respectively.
Continuing Efforts to Eliminate
Discrimination
Lending
The HMDA reports reveal that credit history
problems and excessive debt levels relative to
income are the reasons most frequently given for
credit denials. But specific information for applicants—on their level of debt, debt repayment
record, employment experience, and other factors pertinent to an assessment of credit risk—is
not available from the HMDA data. Nor do the
HMDA data tell us about the specific underwriting standards used to assess prospective borrowers' applications. A popular tendency assumes
that high denial rates are the result of unfair bias.
In fact, the HMDA data by themselves do not
give us a sufficient basis for assessing the fairness
of the loan process or whether fair lending laws
have been violated. The HMDA data do, however, provide a valuable tool to begin the inquiry
into this question.
If you read the HMDA data on denial rates for
minority applicants as synonymous with lending
discrimination, then the similarities in each
year's HMDA data would suggest that lending
discrimination may be intractable. I do not believe that to be the case. But it will take new and
increased measures to prevent, root out, and
eliminate the problem. Such measures to deal
16 Federal Reserve Bulletin • January 1994
with the problem, both directly and indirectly,
are under way—among all the regulatory agencies—through enhancing examiner capabilities
for detecting fair lending violations by financial
institutions, increasing public information about
discrimination in lending, and reforming the
Community Reinvestment Act regulation.
Fair Lending
Enforcement
In our program for enforcing fair lending, the
Federal Reserve follows a coordinated approach.
It focuses on examining for compliance with fair
lending laws and more broadly on ensuring that
credit is made available to low- and moderateincome areas, including those with substantial
minority populations. Our approach also encompasses an aggressive program to investigate consumer complaints, provide consumer and creditor education, and gain insight through research.
Let me describe each segment briefly. In the
research area, the study by the Federal Reserve
Bank of Boston is well known. In my view, that
study, released in October 1992, has done more
than any other single effort to advance our understanding about fair mortgage lending and to
suggest ways for us to attack the problem. It
served to shift the focus, I believe, from an
ongoing debate on whether unlawful discrimination exists in the mortgage markets to a concerted effort on the part of financial institutions,
the regulatory agencies, and members of the
public to search for ways to eliminate discriminatory practices.
Other research pieces—on HMDA data,
household debt, credit shopping practices, the
secondary market, and other related subjects—
also have advanced our knowledge. And last
week, the Federal Reserve released a comprehensive report to the Congress that compares the
risks and returns of lending in low-income, minority, and distressed neighborhoods with those
in other communities.
In regard to enforcement, the Federal Reserve
System has oversight responsibility for approximately 1,000 state member banks. We have a
comprehensive program of consumer compliance
examinations, established in 1977, that are carried out by specially trained examiners. The
scope of these examinations includes the Equal
Credit Opportunity and Fair Housing Acts, and
from the beginning our examiners have been
trained to place special emphasis on problems
involving potential discrimination of the kind
prohibited by those statutes.
The Federal Reserve examines every state
member bank at periodic intervals and on a
regular basis. On average, about two-thirds of
state member banks are examined each year for
compliance with the fair lending and consumer
protection laws. In general, examinations are
scheduled every eighteen months for banks with
a satisfactory record. For a limited number of
banks with exceptional records, examinations
take place every two years. Those banks with
less than satisfactory records are examined every
six months or every year, depending on the
severity of their problems.
The examination procedures focus primarily
on comparing the treatment of members of a
minority or protected class with other loan applicants. First, the examiner reviews the bank's
loan policies and procedures by looking at bank
documents and interviewing lending personnel.
The examiner seeks to determine, among other
things, the bank's credit standards, and then—
using a sample of actual loan applicants—to
determine whether bank personnel have applied
those standards uniformly. Special note is taken
of applications received from minorities, women,
and others whom the fair lending laws were
designed to protect. The examiner looks at the
same information the bank used to make its
credit decision, including credit history, income,
and total debt burden. If the bank's credit standards appear not to have been followed, or not
applied consistently, these findings are discussed
with lending personnel and a more intensive
investigation is undertaken. Finally, an overall
analysis of the bank's treatment of applications
from minorities, women, and others within protected classes is conducted to identify any patterns or individual instances that might indicate
applicants were treated less favorably than other
loan applicants. When we find violations through
any of these techniques, we will require correction by the institution, notification to the applicant, and referral of the matter to the Department
of Justice or Department of Housing and Urban
Development in appropriate cases.
Statements to the Congress
Another important part of the examination
involves talking with people in the community
who are knowledgeable about local credit needs.
Federal Reserve examiners routinely ask members of the community, local government officials, and the like about perceptions of credit
availability for minorities and low- and moderateincome persons. The answers may suggest that a
particular area of the bank needs additional scrutiny and may provide insights into how the bank
is serving the credit needs of its local community,
particularly among those protected by the antidiscrimination statutes.
But as you know, even with these procedures,
it is difficult for our examiners to find evidence
that we can be sure proves racial discrimination.
Consequently, we have been searching for ways
to provide them with better detection tools.
Recently, the Federal Reserve System developed
a computerized statistical model for using
HMDA data in the fair lending portion of the
examination, and we have shared this tool with
the other financial regulators. I believe the model
we have developed has the potential to be a
substantial step forward, although we are still
making adjustments to make sure it works as we
want it to.
Starting with the HMDA data, the model allows the examiner to more expeditiously select a
sample of loans for review. Ultimately, it enables
us to match minority and nonminority pairs of
applicants with similar credit characteristics, but
different loan outcomes, for a more intensive fair
lending review than would otherwise be possible
for the examiner to make. Once the pairs are
selected, examiners reexamine the credit files for
the individual applicants to determine if discrimination may have played a part in reaching different outcomes. Our field tests of this "regression analysis" program have demonstrated its
promise. We are working to refine the model,
reduce the level of examiner resources that have
been needed in some examinations, and implement the program throughout the Federal Reserve examination system. Although such comparisons of minority and majority applicants
have always been a part of the Federal Reserve's
fair lending examination, we believe that this
computerized selection process will enable examiners to better focus their efforts and spend
17
their time more effectively on the actual fair
lending review of loan files.
Besides this "micro" use of the HMDA data,
the Federal Reserve has developed, after discussions with the FFIEC constituent agencies, a
computerized system for analyzing the expanded
data collected under HMDA. The system is
versatile and allows the data to be segmented by
demographic characteristics such as race, gender, and income levels, or geographic boundaries. Examiners can now sort through vast
quantities of data to focus attention on data for
specific lending markets and to compare an individual HMDA reporter's performance against
that of all other lenders in the area. They can
more readily determine whether a bank is effectively serving, through mortgage and home improvement lending, all segments of its market,
including low- and moderate-income and minority neighborhoods. And examiners can use this
information to get a profile of the bank before
they begin their examination, which gives them a
head start in their investigation. We have been
holding HMDA training sessions on how to use
this system around the country for our examiners, as well as those from other agencies.
The Federal Reserve has also developed the
capability to map by computer the geographic
location of a bank's lending products, including
mortgage loans. The mapping integrates demographic information for the bank's local community. We believe that this type of analysis and
presentation will enhance our ability to assess a
bank's CRA performance in meeting the credit
needs of its local community, including minority
areas. The mapping should also be helpful in
evaluating a bank's geographic delineation of its
local CRA service area to ensure that it does not
exclude low- and moderate-income neighborhoods.
As you know, at President Clinton's behest,
the financial regulatory agencies are also currently at work revising the regulations that implement the Community Reinvestment Act. One
of our main goals with CRA reform is to make the
standards used to judge lenders' performance
more clear and objective. We are also trying to
make sure that unwarranted paperwork and unnecessary regulatory burden are eliminated and
that the focus of our efforts is clearly placed on
18 Federal Reserve Bulletin • January 1994
the lending results achieved. The CRA obligates
financial institutions to ensure that they are helping to meet the credit needs of their entire
community, including low- and moderate-income
areas. They cannot effectively meet this standard
under the CRA if they discriminate against some
segment of their community in making loans. It is
our hope that reforming and strengthening the
administration of CRA will result in greater investment in communities that may have suffered
from disinvestment and discrimination.
The Federal Reserve's consumer complaint
program is another element in our overall effort
to enforce fair lending laws. Our procedures
provide special guidance for investigating complaints alleging loan discrimination. Such complaints can prompt an on-site investigation by
Reserve Bank personnel at the state member
bank accused of discrimination. We also have a
referral agreement with HUD for mortgage complaints and have sent a number of complaints to
them for investigation. As in our examinations
area, we are devoting considerable attention to
strengthening our complaint processing system
by increasing oversight, tightening deadlines for
investigation, ensuring more personal contact
with complainants, and making the public more
aware of our procedures.
Public education also plays a role in our fair
lending enforcement. We have distributed a pamplet entitled Home Mortgage Lending and Equal
Treatment, A Guide for Financial Institutions to
all the institutions we supervise. It identifies
lending standards and practices that may produce unintended discriminatory effects, and it
cautions lenders about their use. The pamphlet
focuses on race and includes examples of subtle
forms of discrimination, such as unduly conservative appraisal practices in changing neighborhoods; property standards such as size and age
that may exclude homes in older neighborhoods;
and unrealistically high minimum-loan amounts.
More recently, a comprehensive booklet was
published and widely circulated by the Federal
Reserve Bank of Boston, entitled Closing The
Gap: A Guide To Equal Opportunity Lending.
This significant and informative pamphlet is designed to straightforwardly address lending discrimination and what can be done to avoid it. It
challenges lenders to reconsider every aspect of
their lending operations, from the hiring of loan
officers to the treatment and evaluation of applicants, to ensure that loan decisions are not made
on the basis of race or ethnicity. The publication
has been widely distributed, with more than
50,000 copies in circulation. In an effort to reach
even more people with the information in Closing
the Gap, the Reserve Banks of Boston, Chicago,
and San Francisco are developing a videotape
patterned on the pamphlet for use by banks in
their in-house fair lending training. We hope that
the training tape will be available for use in early
1994. We have also published a brochure entitled
Home Mortgages: Understanding the Process
and Your Right to Fair Lending to inform consumers about the mortgage application process
and about their rights under fair lending and
consumer protection laws.
Several public notices by the financial regulatory agencies recently also have stressed the
need for financial institutions to provide credit on
a nondiscriminatory basis. For example, the joint
statements on credit availability discussed equal
credit lending obligations. Also, a recent letter
from Chairman Greenspan and the heads of the
other supervisory agencies to the chief executive
officers of all financial institutions stressed the
importance of compliance with fair lending laws,
and it provided guidance on how each institution
could improve its performance.
One suggestion, which the letter recommended
as a useful way to minimize the opportunity for
bias in the evaluation of loan applications, is the
so-called "second review" procedure. This procedure was suggested to address a concern raised
by the Federal Reserve Bank of Boston study,
which indicated that among marginally qualified
applicants, white applicants were more likely to
benefit from a lender's discretion in approving
loans than black or Hispanic applicants. A second review would involve a financial institution's
simply taking a second look at all the applications
it expects to deny, as well as some loan approvals, to ensure that its existing credit standards
were applied fully and fairly. We understand that
the procedure provides lenders with greater comfort that they have made credit decisions in an
unbiased manner. It can serve as another useful
tool for lenders, suggesting adjustments in institutional behavior to correct racially disparate
Statements to the Congress
loan practices that may be occurring despite the
institution's policies to the contrary. It also
should assure borrowers who are aware of the
procedure that an institution seeks to treat all
applicants fairly.
The Board believes the goal of ensuring fair
access to credit also can be advanced by focusing
on positive actions that a lender may take.
Through our Community Affairs program, the
Federal Reserve conducts outreach and provides
educational and technical assistance to help financial institutions and the public understand
and address community development and reinvestment issues. We have increased resources to
Community Affairs activities at the Reserve
Banks—now staffed with more than fifty people—to enable the Federal Reserve System to
respond to the growing number of requests for
information and assistance from banks and others on the Community Reinvestment Act, fair
lending, and community development topics. Efforts have been expanded to work with financial
institutions, banking associations, governmental
entities, businesses, and community groups to
develop community lending programs that help
finance affordable housing, small and minority
business, and other revitalization projects. Overall, the Reserve Bank's Community Affairs pro-
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on International Development, Finance, Trade and Monetary Policy of
the Committee on Banking, Finance and Urban
Affairs, U.S. House of Representatives, November 9, 1993
I appreciate the opportunity to present the views
of the Federal Reserve Board on the proposed
legislation on Fair Trade in Financial Services
(H.R.3248). Given our direct responsibilities
with respect to the financial services industry and
our desire to ensure a healthy and efficient environment for the provision of financial services,
the Federal Reserve has a special interest in this
legislation.
The proposed legislation has two major elements. First, the Secretary of the Treasury
19
grams sponsor or cosponsor about a hundred
programs a year, involving thousands of participants, as a way to encourage economic development and ensure fair lending.
CONCLUSION
The 1992 national HMDA data continue to show,
like the data in preceding years, relatively high
rates of denial of home mortgage applications for
minorities. They remain a troubling cause for
concern about racial discrimination in mortgage
lending. For us and for the other regulatory
agencies, the data provide a starting point for
in-depth analyses of the mortgage lending practices of individual institutions. We are engaged in
an aggressive effort in our fair lending examinations to identify any violations of the fair lending
laws for corrective action, referral to the Department of Justice, or both.
Fairness in assessing credit applications, without regard to race, sex, or other prohibited bases,
is absolutely critical to our nation's well-being.
Let there be no misunderstanding on that point.
Racial discrimination cannot and will not be
tolerated. We are committed to its elimination to
the best of our ability.
•
would be required to submit to the Congress
every two years a report identifying those countries that do not offer national treatment to U.S.
banks or securities firms. In the case of a country
in which failure to accord national treatment is
found to have a significant adverse effect on U.S.
firms, the Secretary of the Treasury must, in
general, enter into negotiations with the country
to end the discrimination. The Secretary may, at
his discretion, publish in the Federal Register a
determination that a country does not give national treatment; if he does so, regulatory agencies would have discretionary authority to use
such a determination as a basis for denying
applications by financial institutions from that
country to make acquisitions or start new activities.
Second, if the Secretary of the Treasury has
published in the Federal Register such a deter-
20
Federal Reserve Bulletin • January 1994
mination with respect to a country, institutions
from that country that are already operating in
the United States may not commence "any new
line of business" or conduct business from a
"new location" without obtaining prior approval
from the appropriate federal regulators. This
provision would appear to apply to new U.S.
activities or U.S. offices for which no approval is
currently required for either domestic or foreign
banks. For example, a foreign-owned U.S. bank
may decide to begin to offer consumer mortgage
lending or investment advisory services. Currently, no application for regulatory approval is
required. However, under the proposed legislation such activities would appear to constitute
"new lines of business" requiring regulatory
approval.
Thus, the legislation would change two fundamental principles in our policy toward participation by foreign financial firms in U.S. markets—
national treatment and maintenance of rights
lawfully acquired, that is, grandfather rights.
Both of these principles are worth preserving.
I want to emphasize that the Federal Reserve
shares the objectives of the proposed legislation.
These objectives are important and their achievement desirable. U.S. financial firms deserve to
have the same opportunities to conduct operations in foreign financial markets as domestic
firms have in those markets. They do not now
have those opportunities in all markets. Such fair
treatment would benefit not just U.S. firms but
also the host foreign countries themselves and
the world financial system in general.
Although the Federal Reserve shares these
important objectives, it opposes this kind of
legislation, as it has before. In our view, it is not
clear that the proposed approach would achieve
the objectives, and it could have unfortunate,
unintended consequences.
The principle of national treatment was established as U.S. policy with respect to foreign
banks by the International Banking Act of 1978.
Over many years the U.S. government has assumed a leadership role in building an international consensus around this concept. National
treatment is acknowledged by virtually all major
industrial countries as the principle upon which
regulation of the international operations of
banks ought to be, but is not always, based. The
U.S. policy of national treatment—which has
long set an example to others—seeks to ensure
that foreign and domestic banks have a fair and
equal opportunity to participate in our markets.
The motivation is not merely a commitment to
equity and nondiscrimination, although such a
commitment in itself is worthy. More fundamentally, the motivation is also to provide consumers
of financial services with access to a deep, varied, competitive, and efficient banking market in
which they can satisfy their financial needs on
the best possible terms.
As the Federal Reserve has previously noted
in connection with this proposed legislation, our
policy of national treatment has served this country well. The U.S. banking market, and U.S.
financial markets more generally, are the most
efficient, most innovative, and most sophisticated in the world. It is not a coincidence that our
markets are also among the most open to foreign
competition. Foreign banks, by their presence
and with the resources they bring from their
parents, make a significant contribution to our
market and to our economic growth; they enhance the availability and reduce the cost of
financial services to U.S. firms and individuals,
as well as to U.S. public sector entities.
The proposed legislation would replace the
U.S. policy of national treatment with a policy of
reciprocal national treatment. Through this legislation, the United States would be saying that
we are prepared to forgo the benefits of foreign
banks' participation in our market if U.S. banks
were not allowed to compete fully and equitably
abroad. Some might think that having a reciprocity provision on the books is merely a bargaining
tool, not to be used. But once on the books, the
temptation to impose sanctions becomes real,
creating the potential for retaliation and for closing rather than opening markets.
The Federal Reserve strongly believes that
there are better ways to encourage other countries to open their markets. Market forces and
the desire to enhance the functioning of domestic
financial markets are often the most potent forces
to induce financial market liberalization. Moreover, it is well understood that any country that
wants to have a financial market with sufficient
international stature to compete with New York
and London must liberalize and open its market
Statements to the Congress
and that any country repressing or restraining its
financial sector will witness an exodus of financial firms to other markets that are less restrained.
Nevertheless, U.S. authorities have not relied
solely on market forces. In 1979, after passage of
the International Banking Act, the Treasury Department, with the help of the Federal Reserve
and other agencies, prepared its first National
Treatment study; this study has been updated
several times, most recently in 1990, and we have
begun the process of another update. Pursuant to
the Omnibus Trade and Competitiveness Act of
1988, updated studies will be prepared regularly
in the future. Based on the findings of those
reports, the Treasury has engaged formally—and
others informally—in bilateral talks with several
countries.
Beyond those efforts, the Federal Reserve and
others urged countries of the European Community (EC) strongly and with some success to
modify and soften the reciprocity provisions in
their proposed Second Banking Directive. We
have participated in a range of committees at the
Bank for International Settlements in Basle and
at the Organization for Economic Cooperation
and Development in Paris, where work has been
aimed, in part, at establishing the legal, supervisory, and regulatory conditions that are a precondition for ensuring a "level playing field." In
addition, the Federal Reserve has joined others
in the U.S. government in working to reach a
meaningful agreement on trade in financial services within the North American Free Trade
Agreement and the current Uruguay round of
multilateral trade negotiations. We believe that
this approach, which has the same objective as
the proposed legislation, is more constructive.
I turn now to grandfathering, a practice widely
accepted internationally as a means of protecting
investment in existing foreign banking operations
at a time of statutory change. Operations of
foreign banks in the United States were grandfathered in the International Banking Act. With
respect to foreign operations of U.S. banks, the
Federal Reserve, along with others in the U.S.
government and the U.S. financial industry, objected strenuously when the European Community was considering the elimination of grandfather rights for foreign banks, including U.S.
21
banks, operating in Europe; in the end the EC
agreed to preserve those rights.
If, contrary to this widely accepted practice,
the Congress were to adopt the proposed legislation, the United States could no longer hold to
a principled position in advocating liberalization
in international circles. By telling existing foreign-owned banks in the United States that the
rules and procedures that have applied equally to
them and to all other banks operating in the
United states now apply only to U.S.-owned
banks, we would be denying national treatment
to foreign banks. This could be counterproductive. We would run the risk of introducing instability and discouraging foreign investment in our
markets. Moreover, market access for U.S. firms
might be reduced de facto as countries tighten
their own regulations in anticipation of the need
to negotiate with the United States.
We should remember that we have witnessed
substantial liberalization and structural reform in
financial markets abroad over the past decade.
Like members of the Congress, we too would
like to see more progress. But it is easy to
understate the extent to which progress has been
made in opening up foreign markets as a consequence of both the inexorable pressure of market
forces and the diplomatic efforts of U.S. officials.
Many countries are already open to U.S. firms to
an extent that was not true just several years ago.
For example, deregulation of interest rates in
Japan is now, or soon will be, largely complete,
and a wide range of market instruments has been
developed. These reforms, which had been a
principal objective of U.S. negotiators, provide
U.S. financial firms with a level playing field with
respect to funding in Japanese markets.
CONCLUSION
National treatment is an important concept, but in
its implementation it is also an elusive one. Because it is enormously difficult to apply national
treatment in a world in which the structures of
banking markets in various countries differ significantly, it is tempting to seek what may appear to
be direct, clear-cut solutions. However, lawmakers in each country, including the United States,
22
Federal Reserve Bulletin • January 1994
must balance considerations of competitive equity
with other legitimate concerns.
We should remember that financial markets are
regulated markets. They are regulated for a reason: Authorities in each country have the responsibility of ensuring the safety and soundness, and
the integrity, of their markets. We should hesitate
to dictate to others the pace of change or the
specific nature of change any more than others
should be allowed to dictate to us regarding such
matters. We must recognize that U.S. markets are
not as open as other countries would like and that
many of the kinds of complaints lodged by us
regarding the structure of other countries' markets are also lodged against us.
The desirability of liberalization as an objective in the financial sector, as in other sectors, is
virtually universally accepted. U.S. financial
firms have demonstrated their competitive ability to provide financial services to firms and
residents of all countries, in a world in which
national financial markets are increasingly
integrated and international flows of capital
are increasingly hard to constrain. To be sure,
other countries have provisions for reciprocity in their statutes, but we do not need it.
The United States alone has the opportunity to
continue to exercise leadership in this area. I
sincerely hope we take that opportunity.
•
23
Announcements
RESPONSE TO PROPOSALS TO
RESTRUCTURE
THE BANKING SUPERVISORY
AGENCIES
The Federal Reserve Board issued on November
23, 1993, the following statement in response to
questions about proposals to restructure the banking supervisory agencies:
It is the long-held conviction of the Board that
a hands-on role in banking supervision is essential to carrying out the Federal Reserve's responsibilities for the stability of the financial system
and is vital for the effective conduct of monetary
policy. While the Board recognizes the overlaps
in bank supervision that have emerged in recent
years, it is essential that any proposal for change
preserves the important benefits of the current
system.
AVAILABILITY OF FEE SCHEDULES
SERVICES PROVIDED BY THE
FEDERAL RESERVE BANKS
FOR
The Federal Reserve Board announced on November 15, 1993, the 1994 fee schedules for services
provided by the Federal Reserve Banks. The fees
became effective January 3, 1994.
The fee schedules apply to check collection,
automated clearinghouse activities, funds transfer
and net settlement, book-entry securities, noncash
collection, special cash services, and electronic
connections to the Federal Reserve. The 1994 fee
schedules are available from the Reserve Banks.
In 1994, total costs for priced services, including
float, a portion of special project costs, and the
private sector adjustment factor (PSAF), are projected to be $745.5 million. Total revenue is projected to be $774.4 million, resulting in net income
of $20.2 million, compared with a targeted return
on equity of $34.6 million.
At the same time, the Board approved the 1994
PSAF for priced services of the Reserve Banks of
$103.6 million, an increase of $11.8 million, or
12.8 percent, from the $91.4 million targeted for
1993.
The PSAF is an allowance for the taxes that
would have been paid and the return on capital that
would have been provided had the Federal Reserve's priced services been provided by a private
firm.
APPROVAL OF VOLUME-BASED PRICING FOR
CERTAIN SERVICES AND
PRODUCTS
OFFERED BY THE FEDERAL RESERVE BANKS
OF RICHMOND AND
MINNEAPOLIS
The Federal Reserve Board announced on November 15, 1993, approval of volume-based pricing for
the noncash collection services and for selected
check products offered by the Federal Reserve
Banks of Richmond and Minneapolis, effective
January 3, 1994.
The volume-based pricing will accomplish the
following:
• Set volume-based cash letter and coupon envelope fees for the noncash collection services
• Permit the Minneapolis Reserve Bank and the
Richmond Federal Reserve District to set volumebased fees for selected check products.
The specific noncash collection and check fees
appear in the 1994 fee schedules for priced services, which are available from the Reserve Banks.
INCREASE IN THE NET
TRANSACTION
ACCOUNTS TO WHICH A 3 PERCENT
RESERVE REQUIREMENT
APPLIES
The Federal Reserve Board announced on November 19, 1993, an increase from $46.8 million to
$51.9 million in the net transaction accounts to
which a 3 percent reserve requirement will apply in
1994.
24
Federal Reserve Bulletin • January 1994
The Board also changed from $3.8 million to
$4.0 million the amount of reservable liabilities of
each depository institution that is subject to a
reserve requirement of 0 percent.
Additionally, the Board maintained at $44.8 million the deposit cutoff level that is used in conjunction with the reservable liabilities exemption
amount to determine the frequency of deposit
reporting.
APPROVAL OF EXTENSION OF AN
INTERIM PROVISION IN REGULATION O
The Federal Reserve Board announced on November 17, 1993, approval of a ninety-day extension of
an interim provision in Regulation O (Loans to
Executive Officers, Directors, and Principal Shareholders of Member Banks) permitting adequately
capitalized small banks to raise their limit on aggregate lending to insiders from 100 percent up to
200 percent of unimpaired capital and surplus. The
extension is effective from November 18, 1993,
through February 18, 1994.
The extension was made to provide Board staff
with additional time to review public comments on
whether the interim rule should be made permanent, modified, or permitted to expire.
PROPOSED ACTIONS
The Federal Reserve Board and other financial
institutions regulatory agencies on November 10,
1993, requested comment on supplemental information to the proposed rule on real estate appraisals. Comments were requested by December 10,
1993.
The Board on November 16, 1993, requested
public comment on an interagency notice of proposed rulemaking prescribing safety and soundness
standards required by section 132 of the Federal
Deposit Insurance Corporation Improvement Act
of 1991 (FDICA). Comments were requested by
January 3, 1994.
The Board on November 17, 1993, requested
public comment on an advance notice of proposed
rulemaking on Regulation M (Consumer Leasing)
under the Board's Regulatory Planning and Review
program. Comments were requested by January 24,
1994.
The Board on November 23, 1993, issued for
public comment proposed amendments to its Regulation DD (Truth in Savings). Comments were
requested by January 13, 1994.
The Board published for public comment on
November 29, 1993, a proposal to expand the
Fedwire funds transfer format and adopt a more
comprehensive set of data elements. The Board
is proposing to implement the new format by
late 1996. Comments were requested by March 4,
1994.
PUBLICATION OF A REVISION TO THE BANK
HOLDING COMPANY SUPERVISION MANUAL
The second 1993 revision of the Bank Holding
Company Supervision Manual has been published
by the Board's Division of Banking Supervision
and Regulation and is now available for purchase
by the public. The Manual is used by Federal
Reserve examiners in the supervision, regulation,
and inspection of bank holding companies and their
subsidiaries. A copy of the revision is available for
$4.00.
New topics addressed include split-dollar life
insurance policy arrangements, in-substance foreclosures, the returning of nonaccrual loans to
accrual status, day-trading and free-riding schemes,
new futures commission merchant nonbanking
activities, and the providing of administrative and
certain other nonbanking services to mutual funds.
The Manual and the December 1993 revision
may be obtained from Publications Services, mail
stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551. A copy
of the Manual and its December 1993 revision
supplement is available at a cost of $50.00.
CHANGE IN BOARD STAFF
The Federal Reserve Board announced the resignation of Ellen Maland, Assistant Secretary in the
Office of the Secretary, effective November 29,
1993.
•
25
Minutes of the
Federal Open Market Committee Meeting
of September 21, 1993
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, September 21, 1993, at
9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Angell
Mr. Boehne
Mr. Keehn
Mr. Kelley
Mr. LaWare
Mr. Lindsey
Mr. McTeer
Mr. Mullins
Ms. Phillips
Mr. Stern
Messrs. Broaddus, Jordan, Forrestal, and Parry,
Alternate Members of the Federal Open
Market Committee
Messrs. Hoenig, Melzer, and Syron, Presidents
of the Federal Reserve Banks of Kansas City,
St. Louis, and Boston respectively
Mr. Kohn, Secretary and Economist
Mr. Bernard, Deputy Secretary
Mr. Coyne, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Patrikis, Deputy General Counsel
Mr. Prell, Economist
Mr. Truman, Economist
Messrs. R. Davis, Lang, Lindsey, Promisel,
Rolnick, Rosenblum, Scheld, Siegman,
Simpson, and Slifman, Associate Economists
Mr. Fisher, Manager for Foreign Operations,
System Open Market Account
Mr. Ettin, Deputy Director, Division of Research
and Statistics, Board of Governors
Mr. Madigan, Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Stockton, Associate Director, Division of
Research and Statistics, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Ms. Browne, Messrs. T. Davis, Dewald, and
Goodfriend, Senior Vice Presidents, Federal
Reserve Banks of Boston, Kansas City,
St. Louis, and Richmond respectively
Messrs. Judd, King, and Ms. White, Vice
Presidents, Federal Reserve Banks of
San Francisco, Atlanta, and New York
respectively
Mr. Gavin, Assistant Vice President, Federal
Reserve Bank of Cleveland
Ms. Krieger, Manager, Open Market Operations,
Federal Reserve Bank of New York
By unanimous vote, the minutes for the meeting
of the Federal Open Market Committee held on
August 17, 1993, were approved.
By unanimous vote, Joan E. Lovett and Peter R.
Fisher were selected to serve at the pleasure of
the Committee in the capacities of Manager for
D o m e s t i c Operations, S y s t e m Open Market
Account, and Manager for Foreign Operations,
System Open Market Account respectively, on the
understanding that their selection was subject to
their being satisfactory to the Federal Reserve Bank
of New York.
Secretary's Note: Advice subsequently was received
that the selections indicated above were satisfactory to
the Federal Reserve Bank of New York.
The Manager for Foreign Operations reported on
developments in foreign exchange markets and on
System transactions in foreign currencies during
26
Federal Reserve Bulletin • January 1994
the period August 17, 1993, through September 20,
1993. By unanimous vote, the Committee ratified
these transactions.
Ms. Betsy B. White, Vice President for Domestic Operations of the Federal Reserve Bank of New
York, reported on developments in domestic financial markets and on System open market transactions in government securities and federal agency
obligations during the period August 17, 1993,
through September 20, 1993. By unanimous vote,
the Committee ratified these transactions.
The Committee then turned to a discussion of the
economic and financial outlook and the formulation of monetary policy for the intermeeting period
ahead. A summary of the economic and financial
information available at the time of the meeting
and of the Committee's discussion is provided
below, followed by the domestic policy directive
that was approved by the Committee and issued to
the Federal Reserve Bank of New York.
The information reviewed by the Committee
at this meeting suggested that economic activity,
adjusted for the temporary depressing effects of the
flood in the Midwest, was continuing to expand at a
moderate pace. Consumer spending was up, and
business purchases of durable equipment had
recorded further healthy gains. On the other hand,
housing activity had shown a muted response to the
declines in mortgage rates that had occurred
through the spring, and gains in manufacturing
output and in employment had been limited in
recent months. After rising at an accelerated rate in
the early part of the year, consumer prices had
increased more slowly in recent months and producer prices had fallen.
Total nonfarm payroll employment edged lower
in August after a sizable gain in July. Hiring in the
service-producing sectors, especially in health and
business services, was down in August from the
pace of recent months, and more jobs were lost in
manufacturing. Construction employment also
moved lower, retracing part of the July increase.
On the other hand, the average workweek rose to a
relatively high level in August, and as a result,
aggregate hours worked by production or nonsupervisory workers were significantly above the
second-quarter average. The civilian unemployment rate declined to 6.7 percent.
Industrial production posted a further moderate
gain in August. Manufacturing output more than
accounted for the increase, as strikes damped mining production and utilities output was unchanged
following large gains in earlier months. Within
manufacturing, the output of motor vehicles and
parts was unchanged. Excluding the motor vehicle
component, another sharp gain in computers and
related electronic components boosted the production of business equipment, while the output of
consumer goods declined as a result of a retrenchment in appliance production following the
advance posted in July. Total utilization of manufacturing capacity edged up again in August.
Total retail sales were little changed in real terms
in July and August. Despite the recent sluggishness, however, real spending for goods in July and
August was appreciably above the level in the
second quarter. In addition, real expenditures for
services had grown rapidly in July; this reflected
both high energy consumption associated with unusually hot weather and robust spending for other
services. The persistence of hot weather through
August suggested that spending on energy services
continued at a high level for that month. After a
slight decline in July, housing starts rose substantially in August. Single-family starts accounted for
all of the August increase, as multifamily starts fell
further and continued to hover around their thirtyyear low.
Growth in real business fixed investment
appeared to be slowing in the third quarter from the
robust pace earlier in the year. Shipments of nondefense capital goods dropped substantially in July,
with all of the decline occurring in the volatile
aircraft component. For capital goods other than
aircraft and parts, shipments again moved higher in
July; while the demand for computing equipment
strengthened after dropping off somewhat in the
second quarter, shipments of other types of durable
equipment softened. In addition, heavy-truck sales
were off substantially in July after advancing
steadily since late 1992, and fleet sales of light
vehicles were down in July and August. Investment
in nonresidential structures posted its largest
advance in three years in the second quarter. However, construction activity fell in July in reflection
of a sharp decline in the construction of commercial structures other than offices.
Business inventories contracted sharply in July
after changing little in June. The bulk of the July
decline occurred in the retail sector and reflected
Minutes of the Federal Open Market Committee Meeting
drawdowns in inventories at automobile dealerships. Non-auto retail inventories edged down in
July; with sales flat, the ratio of non-auto inventories to sales remained near the high end of the
range for the past several years. In the wholesale
trade sector, stocks were trimmed somewhat
further in July, but the inventory-to-sales ratio
remained at the midpoint of its range over the past
three years. Manufacturing stocks were unchanged
in July after a small reduction in June. With shipments down in July owing to weak shipments of
aircraft and motor vehicles, the stocks-to-sales ratio
rebounded but was still at a low level.
The nominal U.S. merchandise trade deficit
decreased in July, but it remained essentially
unchanged from its average rate in the second
quarter. The value of exports edged lower in July,
while the value of imports fell by more, retracing
nearly all of the sizable June rise. The decline in
imports was primarily in automotive products, consumer goods, and oil. The performance of the
major foreign industrial economies continued to
present a mixed picture. Economic activity in
Japan, after increasing slightly in the first quarter,
evidenced renewed weakness in the second quarter
that apparently persisted into the third quarter. In
western Germany, real output rose in the second
quarter, but much of the gain apparently stemmed
from unintended inventory accumulation. In France
and Italy, economic activity appeared to have
leveled out in the second quarter after declining
earlier. By contrast, both the United Kingdom and
Canada recorded further modest gains in economic
activity.
Producer prices of finished goods fell sharply
further in August; higher prices for consumer foods
were more than offset by lower prices for the
energy and the nonfood, non-energy components
of the index. For finished goods other than food
and energy, producer prices increased over the
twelve months ended in August by a considerably
smaller amount than in the previous twelve-month
period. Consumer prices rose a little faster in
August than in July, with an increase in food prices
counterbalancing a decline in prices of consumer
energy goods. For nonfood, non-energy items, consumer prices advanced over the twelve months
ended in August by an amount comparable to that
recorded for the twelve months ended in August
1992. Average hourly earnings of production or
27
nonsupervisory workers were up in August after
little change on balance in June and July; the rise
reflected in part overtime earnings in manufacturing. Over the twelve months ended in August, this
measure of earnings increased by about the same
amount as in the previous twelve-month period.
At its meeting on August 17, 1993, the Committee adopted a directive that called for maintaining
the existing degree of pressure on reserve positions
and that, in contrast to the two previous directives,
did not include a tilt toward possible firming of
reserve conditions during the intermeeting period.
Accordingly, the directive indicated that in the
context of the Committee's long-run objectives for
price stability and sustainable economic growth,
and giving careful consideration to economic,
financial, and monetary developments, slightly
greater reserve restraint or slightly lesser reserve
restraint might be acceptable during the intermeeting period. The reserve conditions associated with
this directive were expected to be consistent with
modest growth of M2 and little net change in M3
over the balance of the third quarter.
Open market operations were directed during the
intermeeting period toward maintaining the existing degree of pressure on reserve positions. The
federal funds rate remained close to 3 percent over
the period, while adjustment plus seasonal borrowing averaged somewhat above anticipated levels,
reflecting demand for adjustment credit by banks
experiencing temporary technnical difficulties.
Other short-term interest rates were little
changed on balance over the intermeeting period,
while yields on intermediate- and long-term debt
obligations declined somewhat. The drop in longerterm yields appeared to be associated with incoming data indicating continuing sluggishness in economic activity and the more favorable performance
of broad measures of prices. Major indexes of
stock prices increased somewhat further over the
intermeeting period, evidently reflecting lower
bond yields and heavy inflows to stock mutual
funds.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies depreciated on balance over the intermeeting period. Much of the dollar's decline
reflected the strength of the mark and other European currencies, which was related in part to the
unexpectedly slow pace of monetary easing in
28
Federal Reserve Bulletin • January 1994
Germany and other European countries. Against
the yen, the dollar rebounded early in the intermeeting period from the historical low that occurred
around the time of the Committee's August meeting. The dollar was buoyed by joint central bank
sales of yen against the dollar and by the accompanying public statement from the U.S. Treasury that
was seen by market participants as signaling a new
attitude toward any further appreciation of the yen.
On September 21, the dollar rose sharply on news
that President Yeltsin had dissolved the Russian
Parliament.
Growth of M2 continued at a slow rate in
August. The sluggishness in this aggregate, which
occurred despite further rapid expansion in its Ml
component, apparently reflected ongoing efforts by
households to shift funds away from depository
accounts in search of better returns. M3 turned up
after declining in June and July; however, expansion of this aggregate continued to be held down by
declines in institution-only money market funds.
For the year through August, M2 and M3 were
estimated to have grown at rates close to the lower
ends of the Committee's ranges for the year. Total
domestic nonfinancial debt had expanded moderately in recent months, and for the year through
July it was estimated to have increased at a rate
in the lower half of the Committee's monitoring
range.
The staff projection prepared for this meeting
suggested moderate growth in economic activity
and limited reductions in margins of unemployed
labor and capital through next year. Fiscal restraint,
uncertainty about other government policies, and
slow growth of foreign industrial economies over
the near term would act as a constraint on the
economy. However, improving balance-sheet positions and credit supply conditions were lifting an
unusual constraint on spending, and the lower interest rates would encourage further increases in consumer spending, housing construction, and business fixed investment. The continued slack in labor
and product markets, coupled with some tempering
of inflation expectations, was expected to foster
further reductions in wage and price inflation.
In the Committee's discussion of current and
prospective economic conditions, members commented that recent developments had not altered
their outlook for moderate and sustained expansion
in economic activity. The members acknowledged
that the interpretation of ongoing developments
presented some unusual problems, notably the difficulty of reconciling the appreciable growth in employment thus far this year with the slow expansion
in measured output; the associated drop in measured productivity was especially surprising in
light of the business drive toward more efficient
operations. Moreover, the economic outlook clearly
remained subject to a variety of uncertainties,
including potential developments abroad that were
especially difficult to predict. Nonetheless, while
temporary factors were likely to depress thirdquarter expansion, the members saw little in the
current statistical or anecdotal reports on the
domestic economy that pointed to the likelihood of
a significant deviation from a moderate growth
trend. It was noted in this connection that the
inhibiting effects of increased fiscal restraint and
expected further weakness in net exports needed to
be weighed against the favorable effects on interestsensitive spending of considerably reduced
intermediate- and long-term interest rates and the
much improved financial condition of many business firms and households. With regard to the
outlook for inflation, some members suggested that
the prospects for continued slack in resource utilization were consistent with a disinflationary trend,
but the disparate factors bearing on the outlook for
inflation as well as the swings in price performance
experienced in recent quarters argued for caution in
assessing the future course of inflation.
In their review of developments around the
nation, members commented that business conditions remained uneven across local areas and industries, but they characterized general economic
activity in most regions as ranging from little
change to moderate growth since midsummer.
However, business conditions continued to be quite
weak in some areas, notably in California, and
business sentiment appeared to have remained cautious in much of the nation. One member emphasized uneven conditions of a different kind. Relatively disadvantaged members of the population,
often living in inner cities, had high and rising
expectations about their economic prospects. At
the same time, however, some traditional paths of
upward mobility were being cut back, such as the
military and civil service within the government
and office jobs more generally. In addition, regulations aimed at correcting some problems in finan-
Minutes of the Federal Open Market Committee Meeting
cial institutions—such as real estate appraisal and
downpayment requirements—were having unintended adverse effects on lower-income businesses
and households, and other proposals aimed at promoting minority lending were in danger of promising more than they could deliver. An apparently
widening gap between economic realities and aspirations might not have measurable implications for
the macroeconomic outlook over short periods of
time, but they reflected a worrisome trend in terms
of the longer-run health of the economy.
In other comments, members referred to a number of financial developments that had favorable
implications for sustained economic expansion.
Business firms and consumers had made substantial progress in strengthening their balance sheets,
and while the process of adjusting balance sheets
evidently was still under way, the material improvement accomplished thus far had diminished
financial risks and constraints on spending. Banking institutions had bolstered their capital positions
and were in a better position to accommodate
increases in loan demand. Bond and stock markets
had exhibited considerable strength. In this connection, however, a few members commented on the
apparently growing concern in financial markets
that current equity prices were high relative to
earnings and dividends. A correction in U.S. equity
markets could trigger cumulative selling, especially by mutual funds, which had garnered substantial new investors, some of whom might not
fully appreciate the risks of their new assets relative to deposits. On the positive side, there were
good reasons for optimism on the trajectory of
business profits in an environment of low inflation
and moderate growth. Moreover, some managers of
mutual funds reportedly were taking steps to
strengthen the liquidity of their portfolios, and
members reported on efforts to improve individual investor awareness of the risks of equity
investments.
During their review of the prospective performance of key sectors of the economy, members
gave somewhat mixed reports on retail sales in
recent weeks, but they generally anticipated that
consumer spending would provide continued if not
strong support to sustained economic expansion.
As had been true for an extended period, consumer
attitudes remained hesitant in the context of concerns about employment and income prospects and,
29
in the case of many consumers with higher
incomes, increased income tax liabilities. Some
members expressed the view that more vigorous
growth in employment might well occur as the
expansion matured, and such a development would
be likely to have a favorable effect on consumer
attitudes and spending.
Cautious attitudes also appeared to have held
back housing demand and construction activity
despite declines in mortgage interest rates. The
combination of some further declines in mortgage
interest rates recently and a tendency for house
prices to stabilize or even to firm in some markets
seemed to have induced appreciable and widespread strengthening in demand for single-family
housing. Indeed, despite persisting weakness in
some areas, housing markets were described as
quite strong in many parts of the country, and the
overall improvement in housing activity might not
be captured in the latest statistics. Other construction activity appeared on the whole to have bottomed out and might have begun to trend higher.
Anecdotal reports suggested a pickup in the volume of commercial property transactions, though
apparently not yet in the prices of commercial
properties in most areas, and rising construction
outlays were anticipated for commercial, industrial,
and institutional facilities as economic activity continued to expand. Office construction was likely to
remain generally depressed as excess capacity continued to be absorbed, but such construction might
not decline further. Members also anticipated
appreciable further growth in business spending for
equipment, notably for the purpose of enhancing
productivity in an environment of strong competitive pressures; concurrently, spending to expand
capacity seemed likely to remain relatively limited
unless consumer spending gathered more momentum in coming quarters than was now anticipated.
On balance, business fixed investment was
expected to continue to provide considerable support to the economic expansion.
The passage of deficit-reduction legislation in
July implied increased fiscal restraint but also
appeared to have improved confidence in financial
markets and in the business community more generally regarding the ability of the federal government to enact needed legislation. At the same time,
the new taxes stemming from that legislation and a
greater focus on the potential for further legisla-
30
Federal Reserve Bulletin • January 1994
tion, notably health care reform and its implications for mandated business costs, were a key factor in sustaining cautious attitudes among business
executives. Members also referred to the constraining effects in many areas, and on the economy more generally, of current and prospective
cutbacks in defense expenditures, spending curbs
by state and local governments, and the outlook
for further tax increases by many of these
governments.
The prospects for net exports also were cited as a
negative factor in the economic outlook. Expectations of persisting weakness in some major foreign
economies implied relatively limited growth in U.S.
exports in a period when moderate expansion in
this country was likely to foster somewhat more
rapid increases in U.S. imports. Some members
also commented that the controversial NAFTA legislation under consideration in the Congress continued to dominate business discussions in parts of the
country. It was suggested that whatever its eventual
benefits for the three nations immediately involved
might be, a defeat of that legislation could prove to
be a setback for the GATT negotiations with dislocative implications for world trade.
Many members referred to the more favorable
price developments that had occurred since the
early part of the year when key measures of inflation had surged. While it was premature to conclude that a distinct disinflationary trend had been
reestablished, the members generally agreed that
price pressures were likely to remain subdued given
their projections of some continuing slack in
resource utilization. Favorable developments tending to support that conclusion included the persistence of intensely competitive conditions in most
markets for goods around the country. The costs of
materials purchased by business firms generally
were reported to be rising only slowly, if at all.
There were indications of fairly tight labor markets
in some areas, but wage pressures remained limited
even in those markets. At the same time, the costs
of worker benefits continued to rise fairly rapidly
and many business contacts were expressing concern about the possibility of further mandated cost
increases related to the health care reform legislation. For the next several months, relatively rapid
increases in food prices associated with weatherrelated crop losses and an increase in the excise tax
on gasoline would tend to boost consumer prices.
On balance, these developments were not seen as
inconsistent with longer-run progress toward price
stability, though the inflation outlook remained subject to considerable uncertainty.
In the Committee's discussion of policy for the
intermeeting period ahead, all of the members
agreed that recent economic and financial developments pointed to the desirability of an unchanged
policy stance. The members recognized that neither
the pace of the economic expansion nor the uncertain progress toward price stability reflected a
wholly satisfactory economic performance, but at
this point the present posture of monetary policy
continued to offer the best promise in their view of
promoting sustained economic growth in the context of subdued if not declining inflation.
From the perspective of a variety of financial
measures, the current monetary policy continued to
be quite accommodative. Short-term interest rates
were low, indeed close to zero after adjustment for
inflation, and there had been appreciable further
declines in longer-term interest rates. Growth of
M2 remained slow, but it had picked up since
earlier in the year, and M3 had expanded in
August, albeit at a sluggish rate, after declining in
previous months. One member observed that
growth in M2, adjusted to include certain stock and
bond mutual funds, was estimated to have accelerated since early spring to a fairly healthy pace.
Narrow measures of money and reserves, though
subject to a variety of influences, were growing at
rates that suggested an ample provision of liquidity
to the economy.
In considering possible adjustments to policy
during the intermeeting period, all of the members
endorsed a proposal to retain a symmetrical directive. While current economic uncertainties were
mirrored in uncertainties about the future course of
monetary policy, the members agreed that developments in the period until the next meeting in
mid-November were not likely to call for any
adjustment to policy. Beyond the nearer term,
however, both the timing and, in the view of at
least some members, the direction of the next policy change could not be foreseen at this time.
While they did not see convincing evidence that
monetary policy was overly stimulative at this
point, some members were concerned that the current stance, as reflected in short-term interest rates,
was quite accommodative and probably would need
Minutes of the Federal Open Market Committee Meeting
to be firmed at some point. These members stressed
the need to remain especially alert to potential
inflationary developments against the background of persisting inflationary expectations and
uncertain progress toward price stability. Other
members, while sharing this concern to an extent,
gave some weight to the possibility that the expansion might remain quite sluggish for a period;
under the circumstances, they foresaw the need to
maintain an accommodative policy posture and
could not rule out the possibility that the next
policy move might have to be toward greater monetary stimulus.
At the conclusion of the Committee's discussion,
all the members indicated their support of a directive that called for maintaining the existing degree
of pressure on reserve positions and that did not
include a presumption about the likely direction of
any adjustment to policy during the intermeeting
period. Accordingly, in the context of the Committee's long-run objectives for price stability and
sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, the Committee decided that slightly
greater or slightly lesser reserve restraint might be
acceptable during the intermeeting period. According to a staff analysis, the reserve conditions contemplated at this meeting were expected to be
consistent with modest growth in M2 and M3 over
the balance of the year.
At the conclusion of the meeting, the Federal
Reserve Bank of New York was authorized and
directed, until instructed otherwise by the Committee, to execute transactions in the System account
in accordance with the following domestic policy
directive:
The information reviewed at this meeting suggests
that economic activity is continuing to expand at a
moderate pace. Total nonfarm payroll employment
edged down in August after a sizable gain in July, but
the average workweek rose to a relatively high level and
the civilian unemployment rate declined to 6.7 percent.
Industrial production has advanced moderately over
recent months. Retail sales changed little in real terms
in July and August after increasing appreciably in the
second quarter. Housing starts were down slightly in
July but rose substantially in August. Available indicators suggest a slowing in the expansion of business
capital spending from a robust pace earlier in the year.
The nominal U.S. merchandise trade deficit was about
unchanged in July from its average rate in the second
quarter. After rising at an accelerated rate in the early
31
part of the year, consumer prices have increased
more slowly and producer prices have fallen in recent
months.
Short-term interest rates have changed little since the
Committee meeting on August 17, while yields on intermediate and long-term debt obligations have declined
somewhat. In foreign exchange markets, the tradeweighted value of the dollar in terms of the other G-10
currencies depreciated substantially over the intermeeting period.
M2 continued to expand at a slow rate in August,
while M3 turned up after declining in June and July. For
the year through August, M2 and M3 are estimated to
have grown at rates close to the lower end of the Committee's ranges for the year. Total domestic nonfinancial
debt has expanded at a moderate rate in recent months,
and for the year through July it is estimated to have
increased at a rate in the lower half of the Committee's
monitoring 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 at its meeting in July
lowered the ranges it had established in February for
growth of M2 and M3 to ranges of 1 to 5 percent and
0 to 4 percent respectively, measured from the fourth
quarter of 1992 to the fourth quarter of 1993. The
Committee anticipated that developments contributing to
unusual velocity increases would persist over the balance of the year and that money growth within these
lower ranges would be consistent with its broad policy
objectives. The monitoring range for growth of total
domestic nonfinancial debt also was lowered to 4 to
8 percent for the year. For 1994, the Committee agreed
on tentative ranges for monetary growth, measured from
the fourth quarter of 1993 to the fourth quarter of 1994,
of 1 to 5 percent for M2 and 0 to 4 percent for M3. The
Committee provisionally set the monitoring range for
growth of total domestic nonfinancial debt at 4 to 8 percent for 1994. The behavior of the monetary aggregates
will continue to be evaluated in the light of progress
toward price level stability, movements in their velocities, and developments in the economy and financial
markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. In the context of
the Committee's long-run objectives for price stability
and sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, slightly greater reserve restraint or
slightly lesser reserve restraint might be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with modest growth
in M2 and M3 over the balance of the year.
Votes for this action: Messrs. Greenspan, McDonough, Angell, Boehne, Keehn, Kelley, LaWare, Lindsey, McTeer, Mullins, Ms. Phillips, and Mr. Stern.
Votes against this action: None.
32
Federal Reserve Bulletin • January 1994
It was agreed that the next meeting of the Committee would be held on Tuesday, November 16,
1993.
The meeting adjourned at 12:35 p.m.
During the intermeeting period, available members participated in three telephone conference calls
to discuss issues relating to the release of information about discussions at Federal Open Market
Committee meetings. These calls were prompted
by hearings on such issues that were held by the
House Committee on Banking, Finance, and Urban
Affairs. The discussions took into account informa-
tion that unedited transcripts for meetings since
early 1976 were maintained by the FOMC secretariat at the Board of Governors. The members did
not reach any decisions on these matters during
these conferences. In the course of two further
telephone conferences during the intermeeting
period, the Committee reviewed economic and
financial developments affecting Mexico and discussed various contingencies that might involve the
Federal Reserve.
Donald L. Kohn
Secretary
33
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
D
The Board of Governors is amending 12 C.F.R. Part
204, its Regulation D (Reserve Requirements of Depository Institutions) to increase the amount of transaction
accounts subject to a reserve requirement ratio of three
percent, as required by section 19(b)(2)(C) of the Federal Reserve Act, from $46.8 million to $51.9 million of
net transaction accounts. This adjustment is known as
the low reserve tranche adjustment. The Board has
increased from $3.8 million to $4.0 million the amount
of reservable liabilities of each depository institution
that is subject to a reserve requirement of zero percent.
This action is required by section 19(b)(ll)(B) of the
Federal Reserve Act, and the adjustment is known as
the reservable liabilities exemption adjustment. The
Board is also leaving unchanged at $44.8 million the
deposit cutoff level that is used in conjunction with the
reservable liabilities exemption amount to determine
the frequency of deposit reporting.
Effective December 14, 1993, 12 C.F.R. Part 204 is
amended as follows:
Part 204—Reserve Requirements of Depository
Institutions
1. The authority citation for Part 204 is revised to read
as follows:
Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601,
611, and 3105.
2. In section 204.9 paragraph (a) is revised to read as
follows:
Section 204.9—Reserve requirement ratios.
(a) (1) Reserve percentages. The following reserve
ratios are prescribed for all depository institutions,
Edge and Agreement Corporations, and United
States branches and agencies of foreign banks:
Category
Net transaction accounts1
$0 to $51.9 million
over $51.9 million
Nonpersonal time deposits
Eurocurrency liabilities
Reserve Requirement
3 percent of amount
$1,437,000 plus 10 percent of
amount over $51.9 million
0 percent
0 percent
1. Dollar amounts do not reflect the adjustment to be made by the
next paragraph.
(2) Exemption from reserve requirements. Each
depository institution, Edge or agreement corporation, and U.S. branch or agency of a foreign bank is
subject to a zero percent reserve requirement on an
amount of its transaction accounts subject to the low
reserve tranche in paragraph (a)(1) of this section
not in excess of $4.0 million determined in accordance with section 204.3(a)(3) of this part.
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Bank of Colorado Holding Company
Vail, Colorado
Order Approving Formation of a Bank Holding
Company
Bank of Colorado Holding Company, Vail, Colorado
("Colorado Holding Company"), has applied under
section 3(a)(1) of the Bank Holding Company Act
("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a
bank holding company by acquiring all the voting
shares of Vail National Bank, Vail, Colorado
("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 36,689 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Colorado Holding Company is a nonoperating corporation formed for the purpose of becoming a bank
holding company through the acquisition of Bank.
Bank is the 196th largest commercial banking organization in Colorado, controlling deposits of approximately $57 million, representing less than 1 percent of
total deposits in commercial banks in the state.1
Colorado Holding Company and Bank do not compete directly in any banking market. Accordingly,
1. State deposit data are as of December 31, 1992.
34
Federal Reserve Bulletin • January 1994
consummation of this proposal would not have a
significantly adverse effect on competition or the concentration of banking resources in any relevant banking market.
The financial and managerial resources and future
prospects of Colorado Holding Company and Bank
and other supervisory factors that the Board must
consider under section 3 of the BHC Act are consistent with approval of this proposal.2 Considerations
relating to the convenience and needs of the communities to be served also are consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval of this
transaction is specifically conditioned upon compliance with all the commitments made by Colorado
Holding Company in connection with this application.
For purposes of this action, these commitments and
conditions will both be considered 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 before
the thirtieth calendar day following the effective date
of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Federal Reserve Bank
of Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 2, 1993.
Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Angell, Kelley, La Ware, and
Phillips. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON
Associate Secretary of the Board
2. The Board has carefully reviewed comments from two individuals ("Protestants") who filed a lawsuit against Bank in connection
with a residential construction loan they obtained from Bank. Protestants contend that Bank breached duties owed to Protestants by failing
to obtain lien waivers from subcontractors before disbursing the loan
proceeds, thereby exposing Protestants to potential liability to the
subcontractors. The Board has carefully considered the Protestants'
comments in light of all facts of record, including a judgment rendered
in favor of Bank by the District Court for the County of Eagle,
Colorado, on the merits of Protestants' allegations. The Board also
has considered reports of examination by Bank's primary federal
regulator, the Office of the Comptroller of the Currency, that assessed
the adequacy of the bank's loan-disbursement and lien-waiver policies
for real estate construction loans. In light of all the facts of record, the
Board does not believe that Protestants' allegations warrant denial of
this application.
First Banks, Inc.
St. Louis, Missouri
Order Approving Acquisition of Shares of a Bank
Holding Company
First Banks, Inc., St. Louis, Missouri ("First
Banks"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied pursuant to section 3 of the BHC Act
(12 U.S.C. § 1842), to acquire up to 19.99 percent of
the voting shares of Southside Bancshares Corporation, St. Louis, Missouri ("Southside"). 1 First Banks
has proposed to acquire these shares of Southside as a
passive investment.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 35,957 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
First Banks, with consolidated assets of approximately $2 billion, controls three banks in Illinois and
one bank and one savings association in Missouri.2
First Banks is the tenth largest commercial banking
organization in Missouri, controlling $535 million in
deposits, representing approximately 1 percent of total
bank deposits in commercial banking organizations in
the state.3 Southside, with consolidated assets of approximately $526.5 million, operates five banks in
Missouri. It is the 12th largest commercial banking
organization in Missouri, controlling $507.3 million in
deposits, representing less than 1 percent of the total
deposits in commercial banking organizations in the
state. If First Banks were deemed to control Southside
following consummation of this proposal, First Banks
would become the seventh largest commercial banking
organization in Missouri, controlling $1 billion in deposits, representing approximately 1.9 percent of total
deposits in commercial banking organizations in the
state.
In reviewing an application under section 3 of the
BHC Act, the Board is required to consider various
factors, including certain supervisory factors, the effects of the acquisition on competition, the financial
and managerial resources and future prospects of the
organizations and institutions involved, and the con-
1. First Banks currently controls 4.99 percent of Southside. First
Banks holds options to acquire 13.1 percent of Southside and plans to
purchase an additional 1.9 percent of Southside's shares through
private or open market transactions.
2. Asset data are as of March 31, 1993.
3. Deposit data are as of June 30, 1992.
Legal Developments
venience and needs of the community to be served.
12 U.S.C. § 1842(c). The Board has considered First
Banks's proposal in light of these factors.
Effects of Acquisition on Competition
The Board has previously indicated that the acquisition of less than a controlling interest in a bank is not
a normal acquisition for a bank holding company.4
However, the requirement in section 3(a)(3) of the
BHC Act that the Board's approval be obtained before
a bank holding company acquires more than 5 percent
of the voting shares of a bank suggests that Congress
contemplated the acquisition by bank holding companies of between 5 and 25 percent of the voting shares
of banks. Moreover, nothing in section 3(c) of the
BHC Act requires denial of an application solely
because a bank holding company proposes to acquire
less than a controlling interest in a bank or a bank
holding company. On this basis, the Board has previously approved the acquisition by a bank holding
company of less than a controlling interest in a bank.5
First Banks and Southside compete directly in the
St. Louis and Hermann, Missouri, banking markets.
In the St. Louis banking market,6 First Banks is the
seventh largest commercial bank or thrift institution
("depository institution"), controlling deposits of
$730.9 million, representing approximately 2.7 percent
of total deposits in depository institutions in the market.7 Southside is the 11th largest depository institution in the St. Louis banking market, controlling
deposits of $409.9 million, representing approximately
1.5 percent of total deposits in depository institutions
in the market. If considered as a combined organization, First Banks would become the sixth largest
depository institution in the St. Louis banking market,
controlling deposits of $1.1 billion, representing approximately 4.2 percent of total deposits in depository
4. See, e.g., State Street Boston Corporation, 67 Federal Reserve
Bulletin 862, 863 (1981).
5. See, e.g., Mansura Bancshares, Inc., 79 Federal Reserve Bulletin 37 (1993) ("Mansura") (acquisition of 9.7 percent of the voting
shares of a bank holding company); SunTrust Banks, Inc., 76 Federal
Reserve Bulletin 542 (1990) ("SunTrust") (acquisition of up to
24.99 percent of the voting shares of a bank); First State Corporation,
76 Federal Reserve Bulletin 376 (1990) ("First State") (acquisition of
24.9 percent of the voting shares of a bank).
6. The St. Louis banking market is approximated by the City of
St. Louis, Missouri; St. Charles, St. Louis, and Jefferson Counties in
Missouri; Boles and Calvey Townships in Franklin County, Missouri;
Madison and Monroe Counties in Illinois; and St. Clair County
(excluding Lenzburg and Marissa Townships), Illinois.
7. Market share data are based on calculations in which the deposits
of thrift institutions are included at 50 percent. The Board previously
has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See Midwest
Financial Group, 75 Federal Reserve Bulletin 386 (1989); National
City Corporation, 70 Federal Reserve Bulletin 743 (1984).
35
institutions in the market. The Herfindahl-Hirschman
Index ("HHI") would increase 8 points to 1030.8
First Banks is the largest depository institution in
the Hermann banking market,9 controlling deposits of
$59.7 million, representing approximately 36.1 percent
of total deposits in depository institutions in the market. Southside is the fourth largest depository institution in the Hermann banking market, controlling deposits of $22.7 million, representing approximately
13.7 percent of total deposits in depository institutions
in the market. If considered as a combined organization, First Banks would remain the largest depository
institution in the Hermann banking market upon consummation of this proposal, controlling total deposits
of $82.4 million, representing approximately 49.9 percent of total deposits in depository institutions in the
market. The HHI would increase 993 points to 3488.
The question of whether a substantial lessening of
competition would result from a minority investment
in a competing bank must be answered in light of the
specific facts of each case. 10 The Board views these
acquisitions with concern and continues to believe that
noncontrolling interests in directly competing banks or
bank holding companies may raise serious questions
under the BHC Act. The Board has noted previously
that one company need not acquire control of another
in order to substantially lessen competition between
them. It is possible, for example, that the acquisition
of a substantial ownership interest in a competitor or a
potential competitor of the acquiring firm may alter the
market behavior of both firms in such a way as to
weaken or eliminate independence of action between
the organizations and increase the likelihood of cooperative operations.11
Based on all the facts of record, it is the Board's
judgment in this case that no significant reduction in
competition is likely to result from First Banks's
proposed acquisition of shares of Southside. First
Banks has agreed to abide by certain commitments,
stated in the Appendix to this Order, previously relied
8. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (1984), a market in which the post-merger
HHI is between 1000 and 1800 is considered moderately concentrated.
The Department of Justice has informed the Board that a bank merger
or acquisition generally will not be challenged (in the absence of other
factors indicating anticompetitive effects) unless the post-merger HHI
is at least 1800 and the merger or acquisition increases the HHI by at
least 200 points. The Department of Justice has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognizes the competitive effect of limited
purpose lenders and other non-depository financial entities.
9. The Hermann market is approximated by Boeuf Township in
Franklin County; Boeuf, Boulware, Richland, and Roark Townships
in Gasconade County; Loutre Township in Montgomery County; and
Benton Township in Osage County, all in Missouri.
10. See, e.g., Mansura; SunTrust; First State.
11. See Mansura at 38.
36
Federal Reserve Bulletin • January 1994
on by the Board in cases involving minority investments.12 For example, First Banks has committed to
not exercise a controlling influence over the management or policies of Southside or its subsidiary banks;
to not have any director, officer, or employee interlocks with Southside; and to not solicit or participate
in soliciting proxies with respect to any matter presented to the shareholders of Southside. First Banks
also has committed that its ownership interest in
Southside will be a strictly passive investment, and
First Banks is prohibited by its commitments and the
BHC Act from acting either alone or in concert with
any other entity to control Southside without prior
Board approval.
Moreover, the record in this case indicates that the
acquisition of shares of Southside by First Banks is not
likely to alter the market behavior of either banking
organization in such a way as to weaken or eliminate
independence of action between the organizations and
increase the likelihood of cooperative operations. In
particular, management of Southside has indicated its
intention to remain completely independent of First
Banks, and has taken certain steps to prevent First
Banks from acquiring a controlling interest in Southside or from exercising any control over the business
affairs of Southside.13 Additionally, the record in this
case indicates that both First Banks and Southside
have a relatively small portion of their total banking
deposits in the Hermann market.14 Accordingly, there
appears to be little incentive for First Banks and
Southside to engage in any collusive activities that
would have a significantly adverse effect on competition in an attempt to gain profits in this small, rural
banking market. In light of all the facts of record in this
case, including First Banks's commitments not to
exercise any control over Southside and the lack of
incentive for First Banks and Southside to engage in
any collusive, anticompetitive behavior, the Board
believes that First Banks will not have the power to
affect the market behavior of Southside, or that a
lessening of competition in the Hermann banking
market would result from consummation of this proposal. Thus, the Board concludes that competitive
12. See, e.g., Mansura at 39.
13. For example, management of Southside has implemented a
so-called "poison-pill" shareholders' rights plan. This poison-pill
plan, triggered if any person acquires 25 percent or more of Southside's voting shares, provides all shareholders (other than the shareholder acquiring the 25 percent interest in Southside) with the right to
purchase additional shares in Southside, thereby significantly diluting
the 25 percent shareholder's interest.
14. Less than 5 percent of the total deposits of both First Banks and
Southside are located in this market.
considerations are consistent with approval of this
application.15
Other Considerations
Considerations relating to the financial and managerial
resources and future prospects of First Bank and
Southside and their subsidiaries, the convenience and
needs of the community, and other supervisory factors
the Board is required to consider under section 3 of the
BHC Act also are consistent with approval of this
proposal.16
Based on the foregoing and other facts of record, the
Board has determined that this application should be,
and hereby is, approved. The Board's approval of this
transaction is specifically conditioned upon compliance with the commitments made by First Banks in
connection with this application. For purposes of this
action, these commitments and conditions will both be
considered conditions imposed in writing by the Board
in connection with the Board's findings and decision
and, as such, may be enforced in proceedings under
applicable laws. The transaction approved in this
Order shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
St. Louis, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 8, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Vice Chairman Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Appendix
As part of this proposal, First Banks has committed
that it will not, without the Board's prior approval:
15. See, e.g., Summit Bancorp, Inc., 77 Federal Reserve Bulletin
952 (1991); United Counties Bancorp, 75 Federal Reserve Bulletin 714
(1989).
16. The owner of a small business in Hermann has submitted a
comment to the Board alleging that consummation of this proposal
would adversely affect the local credit needs of individuals and small
businesses in the Hermann area. Based on all the facts of record in this
case, including the commitments made by First Banks to not control
or attempt to control Southside, the Board concludes that consummation of this proposal would not adversely affect the provision of
banking services in this market, and that this allegation does not
otherwise warrant denial of this proposal.
Legal Developments
(1) Exercise or attempt to exercise a controlling
influence over the management or policies of Southside or its subsidiary banks;
(2) Have or seek to have any employees or representatives serve as an officer, agent, or employee of
Southside or its subsidiary banks;
(3) Take any action that would cause Southside or
its subsidiary banks to become subsidiaries of First
Banks;
(4) Acquire or retain shares that would cause the
combined interest of First Banks and its officers,
directors, and affiliates to equal or exceed 25 percent
of the outstanding voting shares of Southside;
(5) Attempt to influence the dividend policies or
practices of Southside or its subsidiary banks;
(6) Attempt to influence the loan and credit decisions or policies of Southside and its subsidiary
banks, the pricing of services, and personnel decisions, the location of any offices, branching, the
hours of operation, or similar activities of Southside
and its subsidiary banks;
(7) Dispose or threaten to dispose of shares of
Southside in any manner as a condition of specific
action or nonaction by Southside;
(8) Enter into any banking or nonbanking transactions with Southside, except that First Banks may
establish and maintain deposit accounts with subsidiary banks of Southside, provided that the aggregate
balances of all such accounts do not exceed
$500,000 and that the accounts are maintained on
substantially the same terms as those prevailing for
comparable accounts of persons unaffiliated with
Southside;
(9) Seek or accept representation on the board of
directors of Southside;
(10) Propose a director or slate of directors in
opposition to a nominee or slate of nominees proposed by the management or board of directors of
Southside or its subsidiary banks; and
(11) Solicit or participate in soliciting proxies with
respect to any matter presented to the shareholders
of Southside.
First Commerce Corporation
New Orleans, Louisiana
Order Approving the Acquisition of a Bank Holding
Company
First Commerce Corporation, New Orleans, Louisiana ("FCC"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire all the voting shares of
First Acadiana National Bancshares, Inc. ("Banc
37
shares"), and thereby indirectly acquire First Acadiana National Bank ("Acadiana Bank"), both of
Opelousas, Louisiana.1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 47,456 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
FCC, with total consolidated assets of $6.2 billion,
operates five subsidiary banks in Louisiana.2 FCC is
the largest commercial banking organization in Louisiana, controlling deposits of $5 billion, representing
15.1 percent of total deposits in commercial banking
organizations in the state. Bancshares is the 25th
largest commercial banking organization in Louisiana,
controlling deposits of $196.8 million, representing
less than 1 percent of total deposits in commercial
banking organizations in the state. Upon consummation of this proposal, FCC would remain the largest
commercial banking organization in Louisiana, controlling deposits of $5.2 billion, representing 15.7 percent of total deposits in commercial banking organizations in the state.
Competitive
Considerations
FCC and Bancshares compete directly in the Lafayette, Louisiana, banking market.3 In this market, FCC
is the second largest banking or thrift organization
("depository institution"), controlling deposits of
$362.3 million, representing 19.8 percent of total deposits in depository institutions in the market ("market deposits"). 4 Bancshares is the 15th largest depository institution in the market, controlling deposits of
$33.2 million, representing 1.8 percent of market deposits. Upon consummation of this proposal, FCC
would remain the second largest depository institution
in the Lafayette banking market, controlling deposits
of $395.5 million, representing 21.6 percent of the
1. FCC proposes to merge Acadiana Bank into its wholly owned
subsidiary bank, First National Bank of Lafayette, Lafayette, Louisiana ("Lafayette Bank"), with Lafayette Bank surviving the merger.
2. Asset and state deposit data are as of June 30, 1993.
3. The Lafayette banking market consists of the Lafayette and
St. Martin parishes in Louisiana.
4. Market data are as of June 30, 1992. Market share data are based
on calculations in which the deposits of thrift institutions are included
at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant
competitors of commercial banks. See Midwest Financial Group, 75
Federal Reserve Bulletin 386 (1989); National City Corporation, 70
Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly
included thrift deposits in the calculation of market share on a
50-percent weighted basis. See, e.g., First Hawaiian Inc., 77 Federal
Reserve Bulletin 52 (1991).
38
Federal Reserve Bulletin • January 1994
market deposits. The Herfindahl-Hirschman Index
("HHI") would increase by 72 points to 1487.5
Based on all the facts of record, including the
number of competitors that would remain in the Lafayette banking market, and the relatively small increase in the market concentration and market share,
the Board has concluded that consummation of FCC's
proposal would not result in any significantly adverse
effect on competition in the Lafayette banking market
or any other relevant banking market.
Convenience and Needs
Considerations
In acting upon an application to acquire a depository
institution under the BHC Act, the Board 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 Community
Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA"). The CRA requires the federal financial
supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate, consistent with the
safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's record of meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record
into account in its evaluation of bank holding company
applications.6
The Board has received comments from the Plaisance Development Corporation, Opelousas, Louisiana ("Protestant"), objecting to the proposal on the
basis of the record of performance under the CRA of
Acadiana Bank. Specifically, Protestant alleges that
Acadiana Bank has failed to meet the credit needs of
its entire community, including minority neighborhoods and businesses; to develop and implement adequate CRA policies; or to participate in community
5. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is between 1000 and 1800 is considered moderately
concentrated. A market in which the post-merger HHI is above 1800
is considered to be highly concentrated. In such markets, the Justice
Department is likely to challenge a merger that increases the HHI by
more than 50 points. The Justice Department has informed the Board
that a bank merger or acquisition generally will not be challenged (in
the absence of other factors indicating anticompetitive effects) unless
the post-merger HHI is at least 1800 and the merger increases the HHI
by more than 200 points. The Justice Department has stated that the
higher than normal threshold for an increase in the HHI when
screening bank mergers and acquisitions for anticompetitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
6. 12 U.S.C. § 2903.
development activities within its community. Protestant also notes the absence of a loan office of Acadiana
Bank in Plaisance, Louisiana.
The Board has carefully reviewed the CRA performance record of FCC and Bancshares, as well as the
comments received; FCC's and Bancshares' responses to those comments; and all other relevant
facts of record in light of the CRA, the Board's
regulations, and the Statement of the Federal Financial Supervisory Agencies Regarding the Community
Reinvestment Act ("Agency CRA Statement").7
Initially, the Board notes that the comments raised
by Protestant do not relate to the activities and performance of FCC or its subsidiaries, but focus on
Acadiana Bank, and Bancshares, Acadiana Bank's
current holding company. The Board also notes that
FCC has committed, as a result of this proposal, to
implement the CRA policies and programs of FCC and
Lafayette Bank in the communities currently served
by Acadiana Bank.
The CRA performance record of FCC and Lafayette
Bank appear to be satisfactory. The record in this case
indicates that all of FCC's subsidiary banks have
received "outstanding" or "satisfactory" ratings during the most recent examinations of their CRA performance.8 FCC's lead bank, First National Bank of
Commerce, New Orleans, Louisiana, received a "satisfactory" rating from its primary regulator, the Office
of the Comptroller of the Currency ("OCC"), in
January 1993.9 In addition, Acadiana Bank received a
satisfactory rating from its primary regulator, the
OCC, in the most recent examination of its CRA
performance.
The Board also notes that the OCC determined in
the 1993 CRA examination of Lafayette Bank that the
bank's geographic distribution of home mortgage and
home improvement applications and denials demonstrated reasonable penetration of all segments of the
bank's local community. The examination results also
indicated that the bank solicited credit applications
from all segments of its local community, including
low- and moderate-income neighborhoods. Moreover,
the OCC concluded that Lafayette Bank was in com-
7. 54 Federal Register 13,742 (1989).
8. The Agency CRA Statement provides that a CRA examination is
an important and often controlling factor in the consideration of an
institution's CRA record, and that these reports will be given great
weight in the applications process. Id. at 13,745.
9. FCC's other subsidiary banks have received the following CRA
ratings: Lafayette Bank received a "satisfactory" rating from the
OCC in January 1993; First National Bank of Lake Charles, Lake
Charles, Louisiana, received a "satisfactory" rating from the OCC in
January 1993; and City National Bank of Baton Rouge, Baton Rouge,
Louisiana, received a "satisfactory" rating from the OCC in January
1993; Rapides Bank and Trust Company, Alexandria, Louisiana,
received an "outstanding" rating from the Federal Reserve Bank of
Atlanta in May 1992.
Legal Developments
pliance with the substantive provisions of anti-discrimination laws and regulations, including the Equal
Credit Opportunity Act and the Home Mortgage Disclosure Act. 10
Lafayette Bank also offers credit products to address the credit needs of its entire community, including low- and moderate-income areas. For example, the
bank established a residential mortgage department to
provide residential mortgage loans to customers, and
originated 153 loans, totalling approximately $20 million in 1992. Lafayette Bank also offers Federal Housing Administration and Veterans Administration loans
to its customers.
With respect to small business lending, Lafayette
Bank participates in the Louisiana Economic Development Authority's "link deposit" program, which
funds commercial loans to small businesses. The bank
also offers Small Business Administration ("SBA")
loans, and in 1992, had $6 million in outstanding SBA
loans to customers. In addition, Lafayette Bank has
other outstanding commercial loans of approximately
$11 million to businesses with annual revenues of less
than $1 million.
Lafayette Bank also participates in a variety of
community development projects and has established
special loan programs that offer flexible lending criteria to the community. In this regard, approximately
10 percent of the loans made pursuant to the bank's
special tuition loan program have been extended to
low- and moderate-income customers. In addition,
Lafayette Bank offered assistance to victims of Hurricane Andrew in August 1992 through the origination
of 40 loans, totalling $180,000.
Finally, Lafayette Bank has committed to open a
community outreach office in Plaisance, on a one-day
per week basis for at least two years, in office space to
be shared with the Protestant. The bank would staff
the office with a loan officer and the appropriate
support staff to accept loan applications. In addition,
the bank would offer financial counseling and home
buyer awareness and education programs in cooperation with Protestant, and Lafayette Bank would equip
the office and assume all reasonable expenses associated with its operation. Lafayette Bank also would
extend the days and hours of operation of this office as
needed.11
39
The Board has carefully considered the entire
record, including Protestant's comments in this case,
in reviewing the convenience and needs factor under
the BHC Act. Based on a review of the entire record
of performance, the Board believes that the efforts of
FCC and Bancshares to help meet the credit needs
of all segments of the communities served by FCC
and Bancshares, including low- and moderate-income neighborhoods, as well as all other convenience and needs considerations, are consistent with
approval.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of FCC, Bancshares, and their respective subsidiaries, and other
supervisory factors the Board must consider under
section 3 of the BHC Act, are consistent with approval.
Based on all the facts of record, including the
commitments made by FCC, the Board has determined that this application should be, and hereby is,
approved. The Board's approval is specifically conditioned upon compliance by FCC with all the commitments made in connection with this application. For
the purpose of this action, the commitments and
conditions relied upon 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 acquisition shall not be consummated before
the thirtieth calendar day following the effective date
of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Atlanta, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
November 29, 1993.
Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J. JOHNSON
Associate Secretary of the Board
10. The examination results also note that all nonsubstantive
violations were promptly corrected by senior management.
11. The Board has also carefully considered Protestant's allegations
that the current holding company for Acadiana Bank has failed to
comply with certain commitments, including a commitment to establish a loan office in Plaisance, made in connection with a previous
application filed by that holding company. See First Acadiana National Bancshares, Inc., 78 Federal Reserve Bulletin 136(1992). Based
on all the facts of record, including the efforts made by Bancshares to
open an office in Plaisance, the Board does not believe that this
allegation is relevant to the record of FCC in this case or warrants any
regulatory action against Bancshares.
40
Federal Reserve Bulletin • January 1994
First Interstate Bancorp
Los Angeles, California
First Interstate Bank of California
Los Angeles, California
Order Approving Acquisition of a Bank Holding
Company and Merger of Banks
First Interstate Bancorp, Los Angeles, California
("First Interstate"), a bank holding company within
the meaning of the Bank Holding Company Act
("BHC Act"), has applied under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire all the voting shares
of Cal Rep Bancorp, Inc. ("Cal Rep Bancorp"), and
thereby indirectly acquire California Republic Bank
("Cal Rep Bank"), both of Bakersfield, California.1
First Interstate-California, a state member bank, also
has applied pursuant to section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. § 1828(c)) ("Bank
Merger Act") to merge with Cal Rep Bank and establish a branch or branches under section 9 of the
Federal Reserve Act. (12 U.S.C. § 321).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 34,053 (1993)). As
required by the Bank Merger Act, reports on the
competitive effects of the merger were requested from
the United States Attorney General, the Office of the
Comptroller of the Currency, and the Federal Deposit
Insurance Corporation. The time for filing comments
has expired, and the Board has considered all comments received in light of the factors set forth in
section 3(c) of the BHC Act, the Bank Merger Act and
the Federal Reserve Act.
First Interstate, with consolidated assets of
$49 billion,2 controls banking subsidiaries in California, Alaska, Arizona, Colorado, Idaho, Texas, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. First Interstate is the third largest
commercial banking organization in California, controlling deposits of $16.2 billion, representing approximately 6.5 percent of total deposits in commercial
banking organizations in the state.3 Cal Rep Bancorp
is the 39th largest commercial banking organization in
California, controlling deposits of $535.6 million, representing less than 1 percent of total deposits in
commercial banking organizations in the state. Upon
1. First Interstate proposes to merge Cal Rep Bancorp into First
Interstate, with First Interstate surviving the merger, and to merge Cal
Rep Bank with its wholly owned subsidiary, First Interstate Bank of
California, Los Angeles, California ("First Interstate-California"),
with First Interstate-California surviving the merger.
2. Asset data are as of June 30, 1993.
3. State deposit data are as of June 30, 1992.
consummation of this proposal, First Interstate would
remain the third largest commercial banking organization in California, controlling deposits of $16.7 billion,
representing approximately 6.5 percent of the total
deposits in commercial banking organizations in the
state.
First Interstate and Cal Rep Bancorp compete directly in the Bakersfield and Lancaster banking markets. Upon consummation of this proposal, both banking markets would remain moderately concentrated as
measured by the Herfindahl-Hirschman Index
("HHI"). 4 After considering the competition offered
by other depository institutions in the markets,5 the
number of competitors remaining in the respective
markets, the relatively small increase in market share
and market concentration in the respective markets,
and all other factors of record, the Board concludes
that consummation of the proposal would not have a
significantly adverse effect on competition in any
relevant banking market.
Convenience and Needs
Considerations
In acting on an application to acquire a depository
institution as proposed in these applications, the
Board 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 Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA"). The CRA requires the federal
financial supervisory agencies to encourage financial
institutions to help meet the credit needs of the local
communities in which they operate, consistent with
the safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's record of meeting the credit needs of its entire
community, including low- and moderate-income
4. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is between 1000 and 1800 is considered moderately
concentrated. The Justice Department has informed the Board that a
bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anticompetitive effects) unless the
post-merger HHI is at least 1800 and the merger increases the HHI by
more than 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognize the competitive effect of
limited-purpose lenders and other non-depository financial institutions.
5. In this context, depository institutions include commercial banks,
savings banks, and savings associations. Market deposit data are as of
June 30, 1992, and are based on calculations in which the deposits of
thrift institutions are included at 50 percent. The Board previously has
indicated that thrift institutions have become, or have the potential to
become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 743 (1984).
Legal Developments
neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record
into account in its evaluation of these applications.6
In this regard, the Board has received comments
from organizations in California and Texas ("California Protestants" and "Texas Protestants," collectively "Protestants") critical of the efforts of First
Interstate, Cal Rep Bancorp, and their respective
subsidiary banks, to meet the credit and banking needs
of their communities.7 The California Protestants allege generally that First Interstate-California and Cal
Rep Bank have not met the credit needs of minorities
and low- and moderate-income individuals, particularly in Bakersfield and in seven other metropolitan
statistical areas ("MSA's") in California.8
The Texas Protestants allege that First Interstate
has not complied with the spirit and requirements of
various laws and regulations designed to prevent discrimination in bank credit practices, operations and
procedures, including the CRA, in attempting to meet
the credit needs of the African-American and ethnic
minority communities within the cities where First
Interstate Bank of Texas, N.A. ("First InterstateTexas"), a wholly owned subsidiary of First Interstate, has branches.9
6. 12 U.S.C. § 2903.
7. The California Protestants are: the California Reinvestment
Committee, San Francisco, California; the A. Phillip Randolph Community Development Corporation, a member of the California Reinvestment Committee; and the Communities for Accountable Reinvestment, Los Angeles, California ("CAR"). The "Texas Protestants"
are: the Black State Employees Association of Texas, Inc., Dallas,
Texas, and the African American Council for Empowerment, Inc.,
Grand Prairie, Texas. The Board permitted an additional period for
comment from the Fund Urban Northern Nevada Development,
Reno, Nevada, but received no comments from this organization.
8. In addition, one of the California Protestants alleges that Cal Rep
Bank provides insufficient basic banking services to senior citizens,
and has an insufficient record of performance in the provision of small
business financing. Another of the California Protestants believes that
the proposed acquisition may result in job losses and branch closures.
Several of the California Protestants requested that First InterstateCalifornia clearly specify CRA products and outreach efforts, and
commit to CRA goals in California, particularly Bakersfield, for
affordable housing development, community economic development,
and consumer needs. In addition, one of the California Protestants
alleges that First Interstate's banking subsidiaries in Seattle, Denver,
Portland, Phoenix, Houston, and Las Vegas have also not met the
credit needs of minorities and low- and moderate-income neighborhoods.
9. The Texas Protestants specifically allege that First InterstateTexas:
(1) Has not developed a plan, or any lending, marketing and
outreach programs, to meet the credit needs of low-income AfricanAmericans and other minorities in communities located in Dallas,
Fort Worth, Irving and Grand Prairie, all in Texas;
(2) Has "redlined" these communities by not providing bank
branches or sufficient credit to individuals in these communities, as
indicated by data the bank has filed under the Home Mortgage
Disclosure Act (12 U.S.C. § 2801 et seq.) ("HMDA"); and
(3) Has provided no technical assistance or other support to
individuals and organizations with an understanding of the credit
41
In its consideration of the convenience and needs
factor, the Board has carefully reviewed the entire
record of CRA performance of First Interstate, Cal
Rep Bancorp and their subsidiary banks; all comments
received regarding these applications, including First
Interstate's response to those comments; and all of the
other relevant facts of record, in light of the CRA, the
Board's regulations, and the Statement of the Federal
Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").10
Record of CRA Performance
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important and often controlling
factor in the consideration of an institution's CRA
record, and that these reports will be given great
weight in the applications process.11 In this case, the
Board notes that all of First Interstate's subsidiary
banks evaluated for CRA performance have received
"outstanding" or "satisfactory" ratings from their
primary regulators during their most recent examinations.12 First Interstate-California received a "satisfactory" rating from its primary federal regulator, the
Federal Reserve Bank of San Francisco, at its most
recent examination for CRA performance as of
August 10, 1992 (the "1992 CRA Examination").
Cal Rep Bank received a "needs to improve" rating
from its primary regulator, the Federal Deposit Insurance Corporation (the "FDIC"), at its most recent
examination for CRA performance as of August 4,
1993. The Board notes that Cal Rep Bank has been
subject to regulatory constraints to improve its financial condition, and that resources devoted to CRA
performance have been diminished. First Interstate
has committed to provide additional resources to
address Cal Rep Bank's less-than-satisfactory record
of CRA performance by implementing First Interstate's CRA program at the branches of Cal Rep Bank
acquired as a result of the proposed transaction, and
needs of these communities, such as African-American managers of
the bank, community groups, and consulting groups.
10. 54 Federal Register 13,742 (1989).
11. 54 Federal Register 13,745 (1989).
12. First Interstate Bancard Company, N.A. ("Bancard"), a specialty bank chartered solely for the purpose of issuing credit cards,
received a "needs to improve" rating for CRA performance from its
primary regulator, the Office of the Comptroller of the Currency (the
"OCC"), in November 1991. Bancard ceased operations in mid-1992,
and was dissolved on September 20, 1993. First Interstate Bank of
Washington's "needs to improve" CRA performance rating, which
was referred to by one of the California Protestants, was upgraded to
"satisfactory" by the OCC as of September 17, 1992.
42
Federal Reserve Bulletin • January 1994
by taking specific steps to address the problems noted
in the CRA examination.
B. CRA Record of Performance of First
Interstate-California
Protestants have submitted comments critical of First
Interstate-California's record of performance under
the CRA, and, therefore, Protestants have questioned
First Interstate-California's ability to address Cal Rep
Bank's CRA weaknesses. These comments have been
carefully considered in the context of First InterstateCalifornia's CRA performance record and the proposed initiatives discussed below.
Lending Activities. First Interstate-California offers
a variety of loan products to assist in meeting the
ascertained credit needs of the bank's community,
including low- and moderate-income neighborhoods.
For example, the bank introduced a new line of
mortgage products in 1992 to make home ownership
more affordable for low- and moderate-income borrowers. These programs include the Down Payment
Assistance Program, which reduces the homebuyer's
out-of-pocket downpayment cost to 3 percent of the
purchase price. First Interstate-California lends the
remaining 2 percent in the form of a second mortgage
with below market rates and interest-only payments
for the life of the loan. In addition, the Home Buyers
Assistance Program has a downpayment requirement
of 5 percent, with an option permitting the downpayment to come from a gift or grant to the borrower.
Both of these programs are targeted to low- and
moderate-income borrowers who may not otherwise
meet the bank's credit standards. First InterstateCalifornia has also established a Community Advancement Program targeted at low-income or minority
census tracts. By offering a downpayment requirement
of 5 percent from any qualified borrower, this program
is designed to encourage individuals who do not fit the
low- or moderate-income profile, but who still cannot
meet the usual 10 to 20 percent downpayment requirement, to invest in homes in low-income census tracts.
Each of these three programs offers favorable financing terms and flexible underwriting criteria.13
In addition, the bank recently has committed to
provide $2 billion of special funding over a ten-year
period to low- and moderate-income communities
statewide for funding the construction and acquisition
of low-income single- and multi-family housing, state
and federally guaranteed loans, small business development and expansion, and nonprofit community-
13. These programs offer reduced closing costs and higher debt/
income ratio requirements.
based organizations. In 1991, the bank established the
Community Loans Unit to assist in providing funds for
the creation, rehabilitation, or maintenance of affordable housing projects. The bank has approved or
extended commitments totalling more than $80 million
to several projects, including an $8 million participation in a revolving construction loan for the development of 136 condominium units in San Jose to be made
available to low- to moderate-income individuals; a
$7.1 million construction loan for a 55-unit singlefamily detached housing development in Lompoc,
with homes being offered for sale to individuals with
limited incomes; a $4.2 million construction loan for a
56-unit apartment complex located in the City of San
Jacinto, which will provide rental units to low-income
residents; and a $5.8 million loan to construct 96 rental
units for low- to middle-income families in Desert Hot
Springs.
The bank also participates in government-insured
and publicly sponsored programs, including Federal
Housing Administration mortgage loans, California
guaranteed business loans, Small Business Administration ("SBA") loans for small businesses, and federally insured and state guaranteed student loans. For
example, in 1991, First Interstate-California's FHA
loans totalled approximately $3.8 million and Veterans
Administration loans totalled approximately $4.1 million. In addition, the bank made a total of approximately $5.6 million in loans under a program sponsored by the California Home Finance Agency in 1990,
and the success of that program led the bank to
develop its own special mortgage programs to help
meet the housing needs of low- and moderate-income
California residents.
In 1992, First Interstate-California established a
centralized Small Business Loan Center to provide
small businesses with access to a variety of credit
products and loan programs. First Interstate-California also participates in loan programs sponsored by the
SBA, and made loans totalling approximately $8.8
million under the SBA section 504 program in 1991. In
1991, the bank also extended loans totalling approximately $1 million in a special SBA program designed
to finance the export of products by California businesses.
First Interstate-California also offers a F.I.R.S.T.
consumer loan program to help low-income individuals qualify for personal loans, auto loans and other
consumer loans. Loans made under this program offer
special underwriting features for individuals who
might not otherwise meet the bank's credit standards.
This program is frequently advertised in publications
targeted at minority communities.
Community Development Activities. Bank personnel monitor community development and redevelop-
Legal Developments
ment programs through contacts with a variety of
business, non-profit and government organizations.
For example, the bank is an active participant in the
California Community Reinvestment Corporation,
having committed $7 million to this non-profit corporation established to provide permanent financing for
low- to moderate-income housing developments. The
bank has also offered to fund term loans granted to
small businesses by the Valley Small Business Development Corporation; to purchase participations in
small-business loans from the Southeast Economic
Development Corporation revolving loan fund; and to
commit funds to the Pasadena Development Corporation loan fund to be used primarily to assist womenand minority-owned small businesses. Finally, the
bank is leading a multi-bank consortium in the establishment of a community development corporation to
serve South Central Los Angeles. 14
Distribution of Loans!Branch Offices. Examiners in
First Interstate-California's most recent CRA performance examination concluded that the bank had demonstrated that the geographic distribution of its credit
extensions, applications, and denials reflected a reasonable penetration in most segments of the delineated
community, including low- and moderate-income
areas, and that there were no indications that applications from low- to moderate-income neighborhoods
were receiving adverse treatment because of the location of the property.15 First Interstate-California's
record of opening and closing offices and of providing
for the service and convenience and needs of its
communities was found to be adequate, and the bank
has expanded service hours in response to customer
surveys, and has added Spanish-speaking personnel in
several branches.16
14. First Interstate-California has also provided community development support to address problems caused by special circumstances.
In this regard, the bank participated in the Small Business Disaster
Assistance Program, committing to provide $30 million in interim
financing to small business owners who were waiting for federal
disaster relief in South Central Los Angeles in 1992. The bank waived
all application and loan fees, and offered the loans at reduced rates for
a 12-month term, with an additional 12-month renewal period if
needed. First Interstate-California also granted a 90-day payment
deferral on existing consumer loans, auto loans, credit cards, and lines
of credit; increased credit lines with no credit review or application
expense; and expedited new loans to existing and new customers.
15. Examiners noted that the bank's marketing program and outreach efforts did not cover eight Northern California counties where
the bank had no branches but which had been included within its
delineated community. First Interstate-California subsequently conformed its delineated community to include only those California
counties in which the bank has at least one branch office.
16. The 1992 CRA Examination found that there is no pattern of
systematically closing branch offices in low- to moderate-income
neighborhoods, and that the bank's performance in opening and
closing offices and providing for the service and convenience needs of
its community is adequate.
43
Other Aspects of CRA Performance. First Interstate-California ascertains credit needs in a variety of
ways, including calling programs and meetings with
civic and community groups. In addition, a CRA Task
Force regularly reviews data compiled from semiannual Community Reinvestment Act Questionnaires
completed by branch managers. First InterstateCalifornia's marketing programs are designed to ensure that all segments of the community, including
low- and moderate-income areas, are informed of the
bank's products and services. The bank has placed
both deposit- and credit-related advertisements in a
number of newspapers and periodicals serving minority communities throughout the state. First Interstate
Mortgage Company ("FIMC"), a wholly owned subsidiary of First Interstate-California, has conducted
home loan product promotions, and has held homebuyer workshops to promote its mortgage products.
FIMC distributes its quarterly "Low-Income Borrower Letter," which advertises the banks special
mortgage loan programs, to branch loan officers and
local realtors.
C. HMDA Data and Steps to Improve
Mortgage Lending
California Protestants allege that 1991 and 1992 data
required to be filed under the HMDA show that First
Interstate-California and Cal Rep Bank discriminate
against borrowers located in low- and moderateincome and minority communities in California, especially in Bakersfield, and that 1991 HMDA data filed
by First Interstate-California for seven other MSA's in
California17 show that the bank makes a higher percentage of HMDA-related loans in middle- and upperincome non-minority census tracts than low- and
moderate-income and minority census tracts.18
17. The seven MSA's are Los Angeles, Riverside, Anaheim,
Oakland, Sacramento, San Diego, and San Francisco.
18. One of the California Protestants alleges that 1991 and 1992
HMDA data for First Interstate's subsidiary banks operating in
Seattle, Denver, Portland, Phoenix, Houston, and Las Vegas show a
similar pattern of discriminatory mortgage lending. The Board has
carefully reviewed these data in light of the most recent CRA
performance examinations by the OCC, the primary federal regulator
of each bank operating in these cities. In each examination, the OCC
found no evidence of illegal discrimination or other practices that had
the effect of discouraging credit applications. In the examinations of
subsidiary banks operating in Seattle, Portland and Phoenix, the OCC
concluded that the banks had a reasonable pattern of penetration for
their lending activities. First Interstate's subsidiary banks operating in
Denver and Las Vegas were noted as having a disproportionate
distribution of mortgage loans in middle- and upper-income versus
low- and moderate-income census tracts. However, the OCC concluded in both cases that the banks were aware of the disparities that
existed in the geographic distribution of their mortgage loans, and had
taken steps to improve their record of mortgage lending in low- and
moderate-income areas. For example, the OCC noted that First
Interstate Bank of Denver, N.A., established a residential mortgage
44
Federal Reserve Bulletin • January 1994
HMDA data filed in 1991, and preliminary data for
1992, show that, in some categories, First InterstateCalifornia's performance met or exceeded the performance of its peers. In addition, the number of mortgage applications received from minorities by First
Interstate-California in the Bakersfield MSA has increased by 71 percent from 1991 to 1992, and approval
and denial rates for minorities were comparable to
those for whites in 1992.19 However, HMDA data for
the Bakersfield MSA and the seven other MSA's in
California identified by the California Protestant also
indicate disparities in approvals and denials of loan
applications according to racial and ethnic group and
income status in California. Because all banks are
obligated to adopt and implement lending practices
that ensure not only safe and sound lending, but also
equal access to credit by creditworthy applicants
regardless of race, the Board is concerned when the
record of an institution indicates disparities in lending
to applicants in low- and moderate-income and minority communities. The Board recognizes, however, that
HMDA data alone provide only a limited measure of
any given institution's lending in its community. The
Board also recognizes that HMDA data have limitations that make the data an inadequate basis, absent
other information, for conclusively determining
whether an institution has engaged in illegal discrimination in making lending decisions.
First Interstate-California's 1992 CRA Examination found no evidence of any pattern or practice of
discriminatory credit practices, or other practices
designed to discourage credit applications.20 In this
regard, examiners noted that the bank continually
assesses its lending activity for HMDA-reportable
loans. Moreover, in addition to its overall $2 billion/
ten year special funding initiative for low- and
department in 1992, and actively promotes conventional mortgage
financing as well as FHA- and VA-insured mortgage loans. First
Interstate Bank of Nevada also originates FHA and VA mortgage
loans, and participates in Nevada Housing Bond loan programs. Both
banks have introduced Affordable Housing Programs, which offer
mortgage loans with flexible underwriting criteria to individuals of low
and moderate incomes, and both banks have introduced a home
improvement program targeted at low- and moderate-income individuals.
19. Applications received by First Interstate-California from minorities in the eight California MSA's combined increased by 84 percent
from 1991 to 1992.
20. Examiners noted some violations of the Board's Regulation C,
which prescribes requirements for reporting housing-related data
under the HMDA. Many of the errors involved the incorrect coding of
loan amounts and loan purpose. While there were cases in which the
race or gender of the loan applicant was not listed, subsequent
analysis of the data revealed that a significant portion of those cases
involved applications taken by telephone, which do not require
recordation of race or gender information. First Interstate-California
has taken steps to address the problems with its HMDA data, and the
bank's progress in correcting errors in its HMDA reports will be
closely monitored by the Federal Reserve Bank of San Francisco.
moderate-income communities, First InterstateCalifornia has undertaken other steps specifically
designed to reduce disparities in its loan denial rates.
For example, every recommended denial of a mortgage loan application from a minority applicant receives a second review to ensure that the recommendation is appropriate. In addition to checking and
confirming the reasons for loan denials, senior bank
officers determine if the rejected loan applicant can
meet the lending criteria of one of the bank's special
mortgage programs. The bank also operates a "mystery shopper" program to test how customers are
treated in the mortgage-application process in an
effort to detect any improper discrimination occurring during that process.
In response to California Protestants' allegations
regarding mortgage lending in Bakersfield, First
Interstate-California notes that historically the bank
has not emphasized home mortgage lending in this
area, and has had no full-time mortgage loan officers in
its three Bakersfield branches. In connection with this
application, however, First Interstate has committed
to initiate a number of steps to improve its mortgage
lending in Bakersfield, as well as address the areas of
weakness in mortgage lending identified in the FDIC's
CRA examination of Cal Rep Bank.21
These steps include expanding the availability in
all Bakersfield branches of its three mortgage-loan
products designed to facilitate home ownership for
low- and moderate-income individuals: the Down
Payment Assistance Program, the Home Buyer's
Assistance Program and the Community Advancement Program. In addition, First Interstate will allocate a portion of its $2 billion/10-year statewide loan
commitment to low- and moderate-income communities to the former Cal Rep Bank branches. The
bank's Community Development Department will
monitor activity in Bakersfield monthly in 1994 to
evaluate the results of its efforts to increase mortgage
lending in this community.
First Interstate-California also will enhance its presence in the Bakersfield community by moving its
district headquarters to Bakersfield. In addition, First
Interstate will assign three mortgage loan officers to its
Bakersfield branches to seek out home mortgage lending opportunities by, among other outreach efforts,
contacting realtors and home builders. The loan officers will train former Cal Rep Bank personnel in
21. As a general matter, First Interstate maintains that the branches
of Cal Rep Bank will benefit from First Interstate-California's greater
resources, and access to the secondary market for conventional
financing and special lending programs. In that regard, First Interstate-California has been approved by FannieMae to offer a downpayment assistance program to low- and moderate-income home buyers.
Legal Developments
effective methods of marketing credit products to all
segments of the banking community.22 First InterstateCalifornia will continue to advertise the availability of
its special loan programs in newspapers targeted to the
Bakersfield market, and has committed to aggressively
market these programs to low- and moderate-income
and minority communities in Bakersfield.23 In addition, the bank intends to conduct approximately 20
homebuyer workshops in Bakersfield during the first
year after the merger to educate first-time homebuyers
in budgeting and other financial matters, and will
initiate a community forum with key individuals in the
Bakersfield community to introduce the bank's programs and determine methods of best addressing community needs.
D. CRA Record of Performance of First
Interstate-Texas
Texas Protestants have alleged that First InterstateTexas has failed to comply with the spirit and requirements of laws and regulations designed to prevent
discrimination, and has generally failed to meet the
credit needs of low-income, African-American communities in certain urban areas in Texas. These comments have been carefully considered by the Board in
light of all facts of record, including First InterstateTexas' most recent examination for CRA performance
by its primary regulator, the OCC.
First Interstate-Texas received a "satisfactory" rating from the OCC as of July 30, 1993. In this examination, the OCC found no evidence of illegal discrimination or other practices designed to discourage
credit. In addition, the OCC concurrently conducted a
fair lending examination of the bank. This examination
included a review of approximately 74 percent of
conventional, purchase-money mortgage applications
and 80 percent of government-guaranteed mortgage
applications received in a 12-month period and geographically dispersed throughout the bank's various
communities. The OCC found no evidence of discrimination or other illegal credit practices.24
22. The FDIC examiners noted that Cal Rep Bank experienced a
low penetration of loans in low- and moderate-income and minority
neighborhoods due to a lack of marketing and outreach to these
neighborhoods, including neighborhoods in the southeast section of
downtown Bakersfield.
23. First Interstate-California has already begun to advertise its
special loan products in newspapers targeted to the Bakersfield
minority communities.
24. Although examiners noted that First Interstate-Texas had a low
penetration of mortgage loans in low-income neighborhoods, the OCC
found that management had taken a variety of steps to address the
credit needs of these neighborhoods through assessment, product
development (such as the First Advantage Loan Program), and
targeted advertisements. In addition, examiners found that the bank is
involved in the construction financing of housing units in low- and
45
First Interstate-Texas offers a variety of credit products and services designed to meet the credit needs of
low- and moderate-income and minority neighborhoods within its delineated communities. In this regard, the bank developed the First Advantage Loan
Program, which offers credit products to individuals
with incomes equal to or less than the median income
for the county in which they reside. The program
offers flexible underwriting criteria, such as higher
debt/income ratios and the consideration of alternative
income sources. Loans made under this program include home mortgage loans with up to 95 percent
financing and additional financing available to cover
downpayments and closing costs, home improvement
loans, unsecured personal loans, and new or used
automobile loans with favorable financing terms. The
bank participates in the Houston Housing Partnership
with other financial institutions and government housing entities.25 The bank also extended home mortgage
loans to qualified low- and moderate-income borrowers through the Community Homebuyer Program.26
In its most recent CRA examination of First Interstate-Texas, the OCC indicated that the bank has
implemented marketing programs that reach all segments of its delineated communities, and are designed
to meet the diverse credit needs of those communities.
The bank frequently uses direct mail as a method to
advertise and market its products to specific groups
and individuals, including those in low- and moderateincome neighborhoods.
First Interstate-Texas offers various loans for small
businesses, including credit for seasonal inventory,
working capital, long-term fixed assets, and business
expansion. Through June 30, 1993, the bank approved
over 5,574 small business loans totaling approximately
$252 million.27 The bank addresses identified needs for
small business lending through 13 Business Banking
Units located in different regions of Texas. The bank
moderate-income neighborhoods through loan commitments to the
Local Initiatives Support Corporation and the Dallas Affordable
Housing Partnership.
25. Mortgage loans offered through this partnership are made only
to residents of the City of Houston/Harris County who have incomes
equal to less than 80 percent of the Harris County median, and who
are willing to attend homebuyer counseling and education seminars.
In 1992, First Interstate-Texas funded 29 mortgage loans totaling
approximately $1.1 million through programs sponsored by this partnership, and the bank funded 20 loans totaling approximately $927,000
through the first six months of 1993.
26. Mortgage loans made under this program offer flexible underwriting criteria including high loan-to-value ratios and higher than
usual debt/income ratios.
27. The Board has received comments from two individuals relating
to loan transactions at First Interstate-Texas. In light of the facts of
record, including relevant reports of examination for this bank, the
Board believes that these individual complaints do not warrant denial
of these applications. These complaints have been referred to the
OCC, the bank's primary regulator, for consideration.
46
Federal Reserve Bulletin • January 1994
has received SBA Certified Lender status for the
Houston region, and anticipates receiving Certified
Lender status for central Texas and Dallas/Fort Worth
by late 1994.
The bank has regular contact with a wide variety of
individuals, groups and community organizations to
ascertain community credit needs, and the board of
directors has established formal processes to guide
these ascertainment efforts.28 The bank has a Community Affairs Officer in Houston who is the primary
contact for community groups and is responsible for
state-wide ascertainment efforts. In addition, the bank
has a formal officer call program, pursuant to which
bank personnel conducted almost 500 credit needs
assessment calls in 1992. The OCC found that during
1992, bank management had contacted and met with a
significant number of groups representing community
and governmental organizations.29 Furthermore, First
Interstate-Texas is working with eight other institutions, the City of Dallas and private developers to
target neighborhoods for redevelopment funds and
mortgage products in an effort to increase the amount
of affordable housing for low-income residents in the
Dallas area.30
Conclusion Regarding Convenience and Needs
Factors
In considering the overall CRA performance records
of First Interstate and Cal Rep Bancorp, the Board
has carefully considered the entire record, including
the public comments in this case. Based on a review
of the entire record of performance, including Prot-
28. Bank provides technical as well as financial assistance to local
organizations serving low- and moderate-income neighborhoods in
Texas. In addition, data provided by First Interstate-Texas indicates
that the bank has approximately $39.7 million in total outstanding
loans in communities identified by the Texas Protestants as being
excluded from the bank's lending area. For example, the bank
indicates that it has over $17.2 million of loans outstanding in the
Como/Stop Six community; over $12.9 million of loans outstanding in
the Bear Creek community ; over $4.5 million of loans outstanding in
the Southeast Oak Cliff community; and over $3 million of loans
outstanding in the South Dallas/Fair Park community.
29. The OCC found that in 1992, the bank's contacts with local
governmental entities comprised approximately 25 percent of the
bank's outreach efforts; contacts with religious and minority groups
comprised 35 percent; and contacts with civic and neighborhood
coalitions comprised 30 percent.
30. The Texas Protestant has asserted that First Interstate-Texas
has not appointed African-Americans to positions of senior management. In this regard, the Board notes that because First InterstateTexas employs more than 50 people and acts as an agent to sell or
redeem U.S. savings bonds and notes, it is required by Treasury
Department and Department of Labor regulations to:
(1) file annual reports with the Equal Employment Opportunity
Commission; and
(2) Have in place a written affirmative action program which states
its intentions, efforts, and plans to achieve equal opportunity in the
employment, hiring, promotion, and separation of personnel.
estant's comments, First Interstate's response to
those comments, and relevant reports of examination, the Board concludes that convenience and
needs considerations, including the CRA performance records of First Interstate, Cal Rep Bancorp
and their subsidiary banks, are consistent with approval of these applications.31 The Board recognizes,
however, that there are areas of weakness in the
CRA performance of First Interstate in this case. As
discussed in this Order, First Interstate has initiated
programs and has proposed specific steps to address
deficiencies in mortgage lending to low- and moderate-income and minority neighborhoods, especially
in Bakersfield. The Board believes that these initiatives, when viewed in the context of the satisfactory
performance ratings for First Interstate's subsidiary
banks, on balance, support approval of these applications.
The Board expects First Interstate to implement
fully its CRA initiatives and to continue to improve
its CRA performance, including its housing-related
lending. The Board will continue to monitor implementation of First Interstate's CRA program in the
branches of Cal Rep Bank being acquired under this
proposal, and take this review into account in future
applications to establish a depository facility. In this
regard, the Board requires as a condition that First
Interstate submit to the Federal Reserve Bank of San
Francisco, within six months of consummation of the
acquisition of Cal Rep Bank and semiannually thereafter, as well as when requested by Board staff in
connection with future expansion applications by
First Interstate, a report on the progress of First
Interstate-California in identifying and meeting the
credit and banking needs of minority and low- and
moderate-income communities in Bakersfield.
31. Several Protestants have requested the Board hold a public
meeting or hearing on these applications. The Board is not required
under section 3(b) of the BHC Act to hold a public hearing or meeting
on an application unless the appropriate supervisory authority for the
bank to be acquired makes a timely written recommendation of denial
of the application. In this case, the California Superintendent of Banks
has not recommended denial of the proposal.
Generally, under the Board's rules, the Board may, in its discretion,
hold a public hearing or meeting on an application to clarify factual
issues related to the application and to provide an opportunity for
testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The
Board has carefully considered this request. In the Board's view, the
Protestants have had sufficient opportunity to present written submissions, and have, in fact, submitted written comments that have been
considered by the Board. Therefore, the Board has determined that a
public meeting or hearing is not necessary to clarify the factual record
in this application, and is not otherwise warranted in this case.
Accordingly, the request for a public hearing or meeting on these
applications is denied.
Legal Developments
Other Considerations
The financial and managerial resources and future
prospects of First Interstate, Cal Rep Bancorp, and
their respective subsidiaries, and other supervisory
factors the Board must consider under section 3 of the
BHC Act and under the Bank Merger Act, are consistent with approval of this proposal. In addition, the
Board finds that the factors it is required to consider
under the Federal Reserve Act are also consistent with
approval.
Conclusion
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval is
specifically conditioned upon compliance with all of the
commitments made by First Interstate in connection
with these applications and with the conditions referred
to in this Order. This approval is further subject to First
Interstate obtaining the California Superintendent of
Banks' approval for the proposed transaction under
applicable state law. For purposes of this action, the
commitments and conditions relied on in reaching this
decision shall be deemed to be conditions imposed in
writing by the Board and, as such, may be enforced in
proceedings under applicable law.
The acquisition of Cal Rep Bancorp and Cal Rep
Bank shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
or later than three months after the effective date of
this Order, unless such period is extended for good
cause by the Federal Reserve Bank of San Francisco
acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 9, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Phillips. Voting against this
action: Governor Lindsey. Absent and not voting: Vice
Chairman Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Dissenting Statement of Governor Lindsey
I dissent from the Board's action in this case because
I believe that the weight of evidence of performance
under the Community Reinvestment Act ("CRA") by
First Interstate Bank of California and California Republic Bank is insufficient to warrant approval of these
applications. In my view, both banks have deficient
records of performance in mortgage lending and in
community outreach efforts to low- and moderate-
47
income and minority neighborhoods, especially in
Bakersfield, California. For example, 1992 HMDA
data indicates that First Interstate Bank of California
has made only four mortgage loans representing
$174,000 in the aggregate to African-Americans in
Bakersfield. First Interstate has not provided sufficient
evidence of other types of CRA-related lending activities, such as a strong record of lending to small
businesses located in minority or low- and moderateincome areas, to balance this poor mortgage lending
record.
I recognize that First Interstate's subsidiary banks all
have satisfactory or better CRA performance ratings
from their primary federal regulators, and that First
Interstate has committed to initiate certain new programs to improve its lending performance. In light of
the deficiencies in First Interstate's mortgage lending,
however, I would require more information on First
Interstate's record of making other types of loans,
including consumer and small business loans, to help
meet the credit needs in low- and moderate-income and
minority neighborhoods, and a more detailed plan for
addressing its weaknesses in mortgage lending in
Bakersfield and other areas of the state. Without this
information, I do not believe that the current record is
complete enough to permit me to vote for approval.
November 9, 1993
Shawmut National Corporation
Hartford, Connecticut, and
Boston, Massachusetts
Shawmut New Hampshire Corporation
Manchester, New Hampshire
Order Disapproving Acquisition of a Bank and
Formation of a Bank Holding Company
Shawmut National Corporation, Hartford, Connecticut, and Boston, Massachusetts ("Shawmut"), a bank
holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has applied
under section 3 of the BHC Act (12 U.S.C. § 1842) to
acquire all of the voting shares of New Dartmouth
Bank, Manchester, New Hampshire ("New Dartmouth"), a state-chartered guaranty savings bank.1 As
1. Shawmut New Hampshire Corporation, Manchester, New
Hampshire ("Shawmut New Hampshire"), a wholly owned subsidiary of Shawmut, also has applied under section 3 of the BHC Act to
become a bank holding company by acquiring all of the voting shares
of Shawmut Bank New Hampshire, Concord, New Hampshire, a
de novo bank which will be merged with New Dartmouth. The merger
of Shawmut Bank New Hampshire with New Dartmouth is subject to
approval by the Federal Deposit Insurance Corporation under the
Bank Merger Act. 12 U.S.C. § 1828(c).
48
Federal Reserve Bulletin • January 1994
part of these applications, Shawmut also has applied
for Board approval under section 3 of the BHC Act to
acquire an option to purchase up to 14.9 percent of
the voting shares of New Dartmouth which would
terminate upon consummation of the proposed acquisition.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 33,940 (1993)). The
time for filing comments has expired, and the Board
has considered all comments received in light of the
factors set forth in section 3(c) of the BHC Act.
Section 3 of the BHC Act prohibits, except with the
prior approval of the Board, any action to be taken
that causes any bank holding company to acquire more
than 5 percent of the voting shares of any bank or any
company to become a bank holding company. After
carefully considering all the facts of record with respect to the factors set forth in the BHC Act, a
majority of the Board members present at a meeting
did not vote to approve these proposals and, therefore,
the applications are not approved.
In this regard, three members of the Board voted to
approve the proposal on the basis of Shawmut's
record in addressing issues raised under the BHC Act
factors, including considerations relating to managerial, financial and the convenience and needs factors,
while three members of the Board voted against the
proposal on the basis of a number of concerns raised
by the mortgage lending operations of Shawmut, including a belief that the current record was not sufficient to permit a favorable determination of the effectiveness or adequacy of steps recently taken by
Shawmut to address concerns regarding its compliance with the Equal Credit Opportunity Act and the
Home Mortgage Disclosure Act. Statements explaining the reasons for these views of the Board members
will be released at a later date.
Accordingly, a majority of the votes cast by Board
members present and voting on these applications not
having been cast for approval, the applications are
therefore not approved. This action constitutes final
action of the Board for purposes of sections 3 and 9 of
the BHC Act.
By order of the Board of Governors, effective
November 15, 1993.
Voting against approval of these applications: Chairman
Greenspan, Vice Chairman Mullins, and Governor Lindsey.
Voting to approve these applications: Governors Angell,
Kelley, and Phillips. Abstaining from this action: Governor
LaWare.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Statement of Chairman Greenspan, Vice Chairman
Mullins and Governor Lindsey
We believe that the factors the Board is required to
consider under section 3 of the Bank Holding Company Act ("BHC Act") in evaluating a bank acquisition proposal are not at this time consistent with
approval of this proposal. Accordingly, we would
deny these applications.
In December 1992, the Board made a referral to the
Department of Justice regarding the lending practices
of Shawmut Mortgage Company, a subsidiary of the
applicant in this case, Shawmut National Corporation.
Based on a study of home mortgage lending data
conducted by the Federal Reserve Bank of Boston, the
Board was concerned that Shawmut, through its mortgage company affiliate, may have engaged in discriminatory treatment of minorities in mortgage lending in
Boston, Massachusetts, in violation of the Equal
Credit Opportunity Act. This matter continues to be
under investigation by the Department of Justice.
We believe that this matter is of the most serious
concern, and that the Board cannot approve an application to acquire a bank under the BHC Act without
strong evidence that the applicant in these circumstances has programs in place to ensure compliance
with the Equal Credit Opportunity Act and has a
demonstrated record that the programs are adequate
and working well.
In this case, Shawmut has recently taken a number
of steps designed to improve its record of lending to
minorities and to address concerns that it may have
engaged in discriminatory lending practices in the
past. However, these steps are relatively new, and, in
our view, have not been in place for a sufficient period
of time to allow an adequate evaluation either of the
effectiveness or sufficiency of these initiatives.
We are also concerned that inaccuracies in the
HMDA data reported by Shawmut for the period 1990
through 1992, and the first six months of 1993 (prior to
its correction through the examination process), as
well as the structure of its mortgage lending operation
indicate inattention by management of Shawmut to
important legal requirements that apply to the organization. While Shawmut has either taken or agreed to
take actions to address these matters, we believe that
the need for these actions reflects adversely on the
management factors in this case, and that the effectiveness of these actions has yet to be demonstrated.
For these reasons, we do not believe that the factors
that the Board must consider in reviewing requests for
Board approval under section 3 of the BHC Act are
consistent with approval of this case. While we agree
with the other Board members that competitive and
financial factors are consistent with approval, we do
Legal Developments
not believe that these findings outweigh the other
factors in this case. Accordingly, we would deny these
applications.
November 19, 1993
Statement of Governor Angell, Governor Kelley and
Governor Phillips
We would approve this proposal because the record
shows that Shawmut has identified and implemented a
number of steps that already have resulted in tangible
improvements to increase its lending to minorities,
reduce the racial disparity in denials of mortgage
applications, and ensure that minority applicants are
not subject to discriminatory treatment.
In this regard, Shawmut's initiatives include special
programs as well as systemic reform. For example,
Shawmut initiated at the beginning of this year a fivepoint mortgage loan program to attract mortgage applications from minorities and decrease its denial rate for
minority applications. This program featured a commitment of $50 million in mortgages that offer more flexible
underwriting criteria, including lower downpayment
requirements, modifications to formulas for calculating income, and less restrictive underwriting ratios. In
addition, Shawmut's mortgage subsidiary has committed $25 million towards a new mortgage program
guaranteed by the Federal National Mortgage Association and targeted to low- and moderate-income homebuyers. Shawmut's initiatives also have included a
number of other systemic reforms which we believe
will help sustain Shawmut's progress in addressing the
weaknesses in its mortgage lending record, including
an expanded affirmative marketing program for targeted areas, financial incentives for employees originating loans under its special mortgage programs,
enhanced employee training, loan counseling programs and independent monitoring of mortgage applications.
These steps already have resulted in significant improvement in Shawmut's mortgage lending activities.
HMDA data filed for the first six months of 1993, and
verified by Federal Reserve System examiners in connection with these applications, show a substantial
increase in the number of loan applications received by
Shawmut's mortgage subsidiary from African-Americans in the Boston MSA and the 23 MSA's in Shawmut's banking community, as well as an increase in the
number of originations to African-Americans in these
areas. Moreover, for the first six months of 1993, the
denial rate for mortgage loan applications submitted to
Shawmut's mortgage subsidiary was 16 percent for
African-Americans and 11 percent for whites in the
Boston MSA. This is a substantial improvement over
49
1990 data, which showed denial rates of 40 percent for
African-Americans and 15 percent for whites in the
Boston MSA.
The pending Department of Justice investigation of
past lending practices of Shawmut's mortgage subsidiary and the inaccuracies in the HMDA data for the
years 1990 through 1992 do raise serious concerns.
However, we believe that Shawmut has made the
necessary reforms to its management and programs to
correct any problems in these areas and to prevent
these problems from recurring, and that Shawmut has
demonstrated the effectiveness of its initiatives through
an improved lending record. We also note that no final
determination has been reached regarding whether
Shawmut has violated the Equal Credit Opportunity
Act.
Governors Kelley and Phillips would have voted to
require that Shawmut submit periodic reports showing
its continued progress in order to assure that these
programs are fully implemented and that Shawmut
sustained its improvement in this area, and that the
Board take extra care to monitor and oversee in the
applications process Shawmut's compliance with its
responsibilities for fair and equal access to credit in the
communities it serves.
In this light, we believe that the factors under the
Bank Holding Company Act, including the managerial
and convenience and needs considerations, are consistent with approval.
November 19, 1993
Orders Issued Under Section 4 of the Bank
Holding Company Act
Chemical Banking Corporation
New York, New York
Order Approving an Application to Engage in
Underwriting and Dealing in Bank-Ineligible
Securities on a Limited Basis
Chemical Banking Corporation, New York, New York
("Chemical"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 4(c)(8) of the BHC
Act (12 U.S.C. § 1843(c)(8)), and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23), to engage
de novo through its wholly owned subsidiary, Chemical
Securities Inc., New York, New York ("Company"),
in underwriting and dealing in, to a limited extent, all
types of equity securities, including, without limitation, common stock; preferred stock; American Depositary Receipts; options; limited partnership units;
securities issued by closed-end investment companies,
50
Federal Reserve Bulletin • January 1994
but not securities issued by open-end investment companies; and other direct and indirect equity ownership
interests in corporations and other entities. Applicant
proposes to conduct these activities worldwide.
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (58 Federal Register 52,759
(1993)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act.
Chemical, with total consolidated assets of
$149.4 billion, operates bank subsidiaries in New York,
New Jersey, Texas, and Delaware.1 Chemical has received approval from the Federal Reserve System to
engage directly and through subsidiaries in a broad
range of permissible nonbanking activities, including
underwriting and dealing in all types of debt securities
on a limited basis.2 Company also is, and will continue
to be, a broker-dealer registered with the Securities and
Exchange Commission ("SEC"), and a member of the
National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Company is subject to the
record-keeping, reporting, fiduciary standards, and
other requirements of the Securities Exchange Act of
1934 (15 U.S.C. § 78a et seq.), the SEC, and the
NASD.
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, the proposed underwriting and dealing activities
in bank-ineligible securities are so closely related to
banking as to be proper incidents thereto within the
meaning of section 4(c)(8) of the BHC Act. 3 The Board
1. Asset data are as of September 30, 1993.
2. See Chemical Banking Corporation, 19 Federal Reserve Bulletin
719 (1993). As used in this order, "bank-ineligible securities" refers to
all types of debt and equity securities that a bank may not underwrite
or deal in directly under section 20 of the Glass-Steagall Act
(12 U.S.C. § 377).
3. See Canadian Imperial Bank of Commerce, 76 Federal Reserve
Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., 75
Federal Reserve Bulletin 192 (1989), affd sub nom. Securities Industries 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), affd sub nom. Securities Industry Ass'n v. Board of
Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.), cert,
denied, 486 U.S. 1059 (1988) (collectively, "Section 20 Orders").
Applicant has committed to conduct the proposed underwriting and
dealing activities using the same methods and procedures, and subject
to the same prudential limitations as those established by the Board in
the Section 20 Orders.
Applicant proposes for its subsidiary banks and the direct and
indirect broker-dealer subsidiaries of those banks (including overseas
broker-dealer subsidiaries of Edge Act subsidiaries of those banks) to
act as a riskless principal or broker for customers in buying and selling
bank-eligible securities that Company underwrites or deals in. There
would be no employees in common between Company and any of its
bank affiliates or their subsidiaries. In addition, Company's arrange-
also has determined that the conduct of these securities
underwriting and dealing activities is consistent with
section 20 of the Glass-Steagall Act (12 U.S.C. § 377),
provided that the company engaged in the underwriting
and dealing activities derives no more than 10 percent
of its total gross revenue from underwriting and dealing
in bank-ineligible securities over any two-year period.4
Applicant has committed that Company will conduct its
underwriting and dealing activities with respect to
bank-ineligible securities subject to the 10-percent revenue test, and the prudential limitations established by
the Board in previous orders.5
The Board has reviewed the capitalization of Chemical and Company in accordance with the standards set
forth in the Section 20 Orders, and finds the capitalization of each to be consistent with approval. With
ment to sell bank-eligible securities through affiliated banks and their
subsidiaries would not involve any exclusive arrangements. Moreover, Company's role in underwriting or dealing in the securities that
are being brokered by affiliates would be fully disclosed to the
affiliates' brokerage customers, and all such brokerage transactions
would be conducted on an arm's length basis. The Board previously
has determined that these activities are consistent with the GlassSteagall Act. See BankAmerica Corporation, 79 Federal Reserve
Bulletin 1163 (1993). The Board also notes that the sale by a financial
institution of uninsured investment products, such as bank-eligible
securities, must comply with applicable regulations and guidelines of
the institution's primary federal regulator.
4. See Section 20 Orders. Compliance with the 10-percent 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),
the Order Approving Modifications to the Section 20 Orders, 79
Federal Reserve Bulletin 226 (1993), and the Supplement to Order
Approving Modifications to Section 20 Orders, 79 Federal Reserve
Bulletin 360 (1993) (collectively, "Modification Orders"). The Board
notes that Chemical has not adopted the Board's alternative indexedrevenue test to measure compliance with the 10-percent limitation on
bank-ineligible securities activities, and, absent such election, will
continue to employ the Board's original 10-percent revenue standard.
5. Company also proposes to act as a dealer-manager in connection
with cash tender and exchange offer transactions. Dealer-managers
generally act as agent for tender or exchange offerors in arranging or
facilitating mergers, acquisitions, and other corporate transactions.
All-cash tender offers do not, of themselves, involve the issuance,
public sale, or distribution of securities. Accordingly, all revenues
derived from Company acting as a dealer-manager in connection with
such tender offers may be treated by Company as eligible revenues for
purposes of determining compliance with the Board's 10-percent
limitation on bank-ineligible securities activities.
However, exchange offers may entail the public sale or distribution
of securities where the consideration to be paid for the securities to be
acquired comprises, either in whole or in part, securities of the
purchaser. See Piper v. Chris-Craft Industries, Inc., 430 U.S. 1, 22
(1976); Federal Reserve System (In Re Bankers Trust and Louisiana
Land Company), SEC No-Action Letter (May 18, 1984); 5 Loss &
Seligman, Securities Regulation 2129 (1990). Accordingly, dealermanager revenues derived from Company engaging in a securities
underwriting, or revenues tied to a distribution of securities, must be
treated as ineligible revenue for purposes of determining compliance
with the Board's 10-percent limitation on bank-ineligible securities
activities. Applicant has committed that Company will abide by all the
section 20 firewalls when acting as a dealer-manager in connection
with exchange offers (including partial cash tender/partial exchange
offers), or when engaging in dealer-manager activities performed in
connection with any underwriting or dealing activities.
Legal Developments
respect to the capitalization of Company, approval of
the requested activities is limited to a level consistent
with the projections of position size and types of
securities in the application.
The Federal Reserve Bank of New York has reviewed the operational and managerial infrastructure
of Company, including its computer, audit, and accounting systems, and internal risk management procedures and controls. The Reserve Bank has determined that Company has established an adequate
operational and managerial infrastructure for the underwriting and dealing of equity securities to ensure
compliance with the requirements of the Section 20
Orders and this order. On the basis of the Reserve
Bank's review and all the facts of record, the Board
has determined that Company has in place the managerial and operational infrastructure and other policies
and procedures necessary to comply with the requirements of the Section 20 Orders and this order. Accordingly, the Board concludes that the financial and
managerial considerations are consistent with approval of this application.
In order to approve this application, the Board also
must determine that the performance of the proposed
activities by Chemical can reasonably be expected to
produce public benefits that would outweigh possible
adverse effects under the proper incident to banking
standard of section 4(c)(8) of the BHC Act. Under the
framework established in this and prior decisions,
consummation of this proposal 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.
The Board expects that the de novo entry of Applicant
into the market for the proposed services in the United
States would provide added convenience to Chemical's customers, and would increase the level of competition among existing providers of these services.
Accordingly, the Board has determined that the performance of the proposed activities by Chemical could
reasonably be expected to produce public benefits that
would outweigh possible adverse effects under the
proper incident to banking standard of section 4(c)(8)
of the BHC Act.
Accordingly, and for the reasons set forth in the
Section 20 Orders, the Board concludes that Chemical's proposal to engage through Company in the
proposed activities is consistent with the GlassSteagall Act, and is so closely related to banking as to
be a proper incident thereto within the meaning of
section 4(c)(8) of the BHC Act, provided Chemical
limits Company's activities as provided in the Section
20 Orders, as modified by the Modification Orders.
On the basis of the record, the Board has determined to, and hereby does, approve this application
51
subject to all the terms and conditions discussed in this
order and in 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 Company's activities
are consistent with safety and soundness, conflict of
interest, and other relevant considerations under the
BHC Act. Underwriting and dealing in any manner
other than as approved in this order or 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 Company.
The Board's determination is also subject to all the
terms and conditions set forth in Regulation Y, including those in sections 225.4(d) and 225.23(b), and to the
Board's authority to require modification or termination of the activities of a bank holding company or any
of its subsidiaries as the Board finds necessary to
assure compliance with, and to prevent evasion of, the
provisions of the BHC Act, and the Board's regulations and orders issued thereunder. The Board's decision is specifically conditioned on compliance with all
the commitments made in connection with this application, including the commitments discussed in this
Order and the conditions set forth in the above noted
Board regulations and orders. These commitments and
conditions shall be deemed to be conditions imposed
in writing by the Board in connection with its findings
and decisions, and 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 the Federal Reserve Bank of New York
acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 24, 1993.
Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Angell, Kelley, Lindsey, and
Phillips. Absent and not voting: Governor LaWare.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Comerica Incorporated
Detroit, Michigan
Order Approving Application to Engage in Career
Counseling Services
Comerica Incorporated, Detroit, Michigan ("Comerica"), a bank holding company within the meaning of
52
Federal Reserve Bulletin • January 1994
the Bank Holding Company Act ("BHC Act"), has
applied pursuant to section 4(c)(8) of the BHC Act and
section 225.23(a) of the Board's Regulation Y
(12 C.F.R. 225.23(a)) to engage in providing career
counseling services to unaffiliated parties through its
wholly owned subsidiary, ComeriCOMP, Detroit,
Michigan ("ComeriCOMP").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 16,835 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4(c)(8)
of the BHC Act.
Comerica, with approximately $27.5 billion in consolidated assets, controls subsidiary banks in California, Michigan, Ohio, Illinois, and Texas, and a savings
association in Florida.1 Comerica also engages directly
and through subsidiaries in a broad range of permissible nonbanking activities.
Proposed Career Counseling Activities
ComeriCOMP currently provides career counseling
services for Comerica and its affiliates, and this proposal seeks to expand the provision of these services
to unaffiliated companies and individuals in a wide
array of industries nationwide. Comerica proposes
that these career counseling services would involve
providing assistance for individuals who are employed
and seek advancement in their careers, and individuals
who are unemployed and seek new employment. ComeriCOMP would provide these services directly to
companies and advise these companies on effective
methods of providing career counseling services to
their employees. 2
These career counseling services include:
(1) Assessing an individual's education, prior business experience, salary history, interests, and skills
for purposes of finding employment or evaluating
opportunities for career development;
(2) Assisting in the preparation of resumes and cover
letters;
(3) Contacting employers regarding employment opportunities and making this information available to
clients;
1. Asset data are as of June 30, 1993.
2. ComeriCOMP will advise unaffiliated organizations on the advantages of including career counseling services as part of a comprehensive employee benefits plan and assist these organizations in establishing their own facilities to implement career counseling services for
their current or former employees. If an organization does not want to
operate its own career counseling facility, ComeriCOMP would provide the proposed services directly to the organization's current or
former employees at ComeriCOMP's Career Assistance Center.
(4) Conducting general workshops on the financial
aspects of unemployment, current economic trends,
the process of finding a job, and alternative career
options; and
(5) Providing individual counseling on setting and
obtaining employment goals.
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is
required to determine that the proposed activity is "so
closely related to banking as to be a proper incident
thereto."3 In this regard, the Board previously has not
determined that providing career counseling services
to unaffiliated parties is closely related to banking
under section 4 of the BHC Act and permissible for
bank holding companies.
A. Closely Related to Banking Analysis
Under the National Courier test, the Board may find
that an activity is closely related to banking for purposes of section 4(c)(8) if the Board concludes that
banks generally:
(1) Conduct the proposed activity;
(2) Provide services that are operationally or functionally so similar to the proposed activity as to
equip them particularly well to provide the proposed
services; or
(3) Provide services that are so integrally related to
the proposed service as to require their provision in
a specialized form.4
For analytical purposes, Comerica's proposal may
be viewed in four parts:
(1) The provision of career counseling services for
financial organizations (including banks, bank holding companies and their subsidiaries, thrift institutions, and thrift holding companies and their subsidiaries) and employees of financial organizations;
(2) The provision of these services for individuals
who are unemployed or employed outside the banking industry and who seek employment at banks and
other financial organizations;
(3) The provision of career counseling services for
individuals seeking financial positions (such as chief
financial officer, cash management positions, and
accounting and auditing personnel) at any company;
and
3. 12 U.S.C. § 1843(c)(8).
4. See National Courier Association v. Board of Governors, 516
F.2d 1229, 1237 (D.C. Cir. 1975) ("National Courier"). The Board
also may consider any other factor that an applicant may advance to
demonstrate a reasonable or close connection or relationship to
banking. 49 Federal Register 794, 806 (1984); Securities Industry
Ass'n v. Board of Governors, 468 U.S. 207, 210-11, n.5 (1984).
Legal Developments
(4) The provision of career counseling services
generally for any individual seeking any type of
employment at any type of company.
1. Career Counseling for Financial Organizations,
Employees of Financial Organizations, and Individuals Seeking Employment at Financial Organizations. Comerica asserts that it has gained extensive
experience in providing career counseling services to
displaced employees in the banking industry in connection with internal reorganizations that have accompanied recent mergers and acquisitions by Comerica. Other banks and bank holding companies also
provide career counseling services for their employees and former employees whose jobs are terminated
following similar acquisitions and internal consolidation efforts. The type of expertise required by bank
holding companies to provide career counseling services internally is operationally and functionally the
same as that needed to offer career counseling for
employees in other financial organizations. In addition, banks and bank holding companies have specialized knowledge about the qualifications of individuals they employ and about the employment
needs of financial organizations. This knowledge
equips bank holding companies to provide career
counseling services for individuals at any financial
organization and individuals seeking employment for
the first time in any financial organization.
The Board believes that employment positions at
financial organizations are largely financial in nature.
These positions include specialized functions, such
as tellers and loan officers, as well as investment
advisors, foreign exchange traders, accounting and
audit personnel, individuals employed in government
and securities clearing operations, and similar positions that involve essentially financial responsibilities. The expertise that a bank holding company has
acquired in providing career counseling for its own
employees in these financial positions, and its ability
to evaluate the qualifications of individuals seeking
employment in these types of financial positions,
would appear readily transferable to providing these
same services for other financial organizations and
individuals seeking employment at financial organizations.
Because banks generally engage in activities that
are operationally and functionally similar to the
proposed career counseling activities, the Board
believes that the provision of career counseling services for financial organizations (including banks,
bank holding companies, thrift institutions, thrift
holding companies, and subsidiaries of any of these
companies) and individuals currently employed by,
recently displaced from, or seeking employment in
53
financial organizations is closely related to banking
under the National Courier standard.5
2. Individuals In, or Seeking, Financial Positions at
Non-Financial Companies. The Board also believes
that bank holding companies have the expertise required to provide career counseling services for individuals in, or seeking, financial positions at any company. Many companies employ financial officers,
accounting personnel, cash management officers, and
audit personnel with responsibilities and experience
that is nearly identical to their counterparts at financial
organizations. In addition, banks and bank holding
companies often provide these financial services directly to non-financial companies.
As a consequence, evaluation of the experience and
qualifications of employees in financial positions at
non-financial companies, and of individuals seeking
career opportunities in these financial positions, would
appear to be within the expertise of bank holding
companies. Based on this financial nexus, the Board
believes that providing career counseling services for
individuals in, or seeking employment in, these types
of financial positions, even at non-financial companies,
is an activity that is closely related to banking.
3. Providing Career Counseling Services Generally.
Comerica also seeks to provide career counseling
services for companies and individuals in areas unrelated to the banking industry or financial positions.
Comerica argues that providing career counseling services for individuals in any occupation is operationally
and functionally equivalent to providing career counseling services for Comerica's own employees. Comerica points out that the career counseling offices of
banks and bank holding companies often place employees in non-financial jobs in non-financial companies. Comerica also argues that financial organizations
employ a significant number of individuals with skills
identical to those of employees in commercial companies, such as secretaries, lawyers, and security guards,
and Comerica contends that little distinction can be
drawn between providing career counseling services
to these individuals whether employed by a financial
organization or by a commercial company.
Moreover, Comerica argues that career counseling
services are operationally and functionally equivalent
to employee benefits consulting activities, which the
5. Financial organizations also employ individuals in nonfinancial
positions, such as secretaries, janitors, security guards, and lawyers.
These nonfinancial positions typically represent a relatively small
percentage of the work force at financial organizations. In this regard,
the Board believes that providing career counseling services for these
employees of financial organizations or individuals seeking these
positions at financial organizations is a necessary part of providing
career counseling services for financial organizations generally, and,
on this basis, is incidental to providing career counseling services for
financial organizations.
54
Federal Reserve Bulletin • January 1994
Board has authorized bank holding companies to provide. Comerica points out that the Board permits bank
holding companies to provide employee benefits consulting services to any company, 6 and argues by
analogy that the Board should similarly permit bank
holding companies to provide career counseling services on behalf of any company to any individual.7
In considering whether a proposed activity meets
the National Courier standard, the Board has focused
on the relationship of the proposed activity to banking,
finance, and financial matters as establishing the logical parameters for expanding the activity. 8 In some
areas, such as the provision of data processing and
courier services, the Board has concluded that an
activity meets the National Courier standard only
when the activity is restricted to banking or financial
matters or data.9 In other areas, the Board has limited
the types of companies to which bank holding companies may provide a particular service. For example, a
bank holding company may provide management consulting advice only to (non-affiliated) bank and nonbank depository institutions, such as commercial
banks, savings and loan associations, mutual savings
banks, and credit unions. 10
The Board has permitted bank holding companies to
provide nonbanking activities to an unlimited range of
customers only when the Board has found that the
activity is itself financial in nature (e.g., lending,
leasing, investment advisory services, employee benefits consulting, and trust company functions). In
these cases there was no need to limit the scope of the
6. See Norstar Bancorp (Smith, Everett & Associates), 72 Federal
Reserve Bulletin 729 (1986); Norstar Bancorp (Altman and Brown,
Inc.), 71 Federal Reserve Bulletin 656 (1985). Employee benefits
consulting services include providing consulting services to financial
and non-financial customers relating to executive compensation, defined benefits and contributions, retirement, health care, disability
income, life insurance and "cafeteria plans" which allow employees
to allocate a certain percentage of the employee's compensation
among such benefits as the employee may select.
7. Comerica also suggests that career counseling services unrelated
to the banking industry may be considered "incidental" to such
activities in the banking industry. Under Regulation Y and judicial
decisions construing the phrase "incidental activities," an activity
must be necessary to the provision of a closely-related activity in
order to be considered incidental. 12 C.F.R. 225.21(a)(2); National
Courier at 1240-41. The record does not support a finding that
Comerica would be unable to offer career counseling services relating
only to the banking industry.
8. See e.g., AmeriTrust Corporation, 72 Federal Reserve Bulletin
794 (1986) (Order approving an application to engage in printing checks
and related documents).
9. A bank holding company may only provide data processing and
data transmission services if the data to be processed or furnished is
financial, banking or economic. See 12 C.F.R. 225.25(b)(7). Permissible courier services are limited to the transportation of materials used
in the regular course of business by banks and bank-related firms, and
the transportation of financially related economic data. See 12 C.F.R.
225.25(b)(10).
10. See 12 C.F.R. 225.25(b)(ll).
activity, or the potential clients, because the activity
itself had a close connection to banking.11
The Board does not believe that the record assembled at this time supports a finding that career counseling services, provided generally, is an activity that
is closely related to banking. Banks and bank holding
companies do not appear particularly well equipped to
provide career counseling services, for example, for
scientists, manufacturing personnel, engineering personnel, medical personnel, or other skilled or unskilled
personnel with no connection to banking or finance.
4. Conclusion. For these reasons, and based on all
the facts of record, the Board believes that career
counseling services are closely related to banking
under the National Courier standard when provided
for:
(1) Financial organizations and individuals currently
employed by, or recently displaced from, a financial
organization;
(2) Individuals who seek employment at a financial
organization; and
(3) Individuals who are currently employed in, or
who seek, financially related positions at any company. 12 The record at this time does not support a
finding that career counseling services are otherwise
closely related to banking.13
B. Proper Incident to Banking Analysis
In determining whether an activity is a proper incident
to banking, the Board must consider whether the
11. The Board determined that providing employee benefits consulting is primarily "the provision of financial information." While
career counseling includes providing advice to individuals about
employee benefits and may be offered as part of an employee benefits
package, the actual operation of a career counseling office requires
different expertise than employee benefits consulting and arguably
involves providing primarily personnel and job opportunity information, rather than financial or statistical information.
12. "Financially related" positions include a company's chief
financial officer, and employees in the company's finance, accounting,
and audit departments.
13. In the course of providing career counseling for an individual
within one of the three proposed categories, Comerica may, on a
limited basis, provide career counseling services regarding positions
outside of these categories as "incidental" to the proposed career
counseling services. For example, in the course of counseling bank
employees on opportunities outside the banking industry, Comerica
will accumulate information about positions at nonfinancial companies. Comerica may share this information with individuals who seek
counseling from Comerica regarding opportunities at financial organizations. As noted above, the Board and the courts have found that an
activity is "incidental" to an approved activity if the incidental
activity is necessary to the approved activity. In this situation, the
provision of counseling services regarding employment at nonfinancial institutions on a limited basis may be viewed as a necessary
part of providing counseling for the individual regarding employment
in financial institutions. However, Comerica is not permitted to hold
itself out as a provider of general career counseling services for
individuals seeking career opportunities outside the banking industry
or financial careers.
Legal Developments
activity "can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue
concentration of resources, or unsound practices."14
In this regard, Comerica will provide the proposed
career counseling services on a fee basis with no
guarantees of employment. There is no evidence in the
record of this case to indicate that the proposed
activity would lead to any undue concentration of
resources, unsound banking practices, or other adverse effects. In addition, the record indicates that
Comerica's de novo entry into this market would
enhance competition and provide greater convenience
and increased efficiencies.
For these reasons, the Board believes that Comerica's provision of career counseling services, as described above, is not likely to result in significantly
adverse effects that would outweigh the public benefits
of Comerica's proposal. The financial and managerial
resources of Comerica and ComeriCOMP also are
consistent with approval.
Approval of this proposal is specifically conditioned
upon compliance with all commitments made in connection with this application. The Board's determination also is subject to all of the conditions set forth in
Regulation Y, including those in sections 225.4(d) and
225.23(b), and to the Board's authority to require
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the
Board finds necessary to assure compliance with, and
to prevent evasion of, the provisions of the BHC Act
and the Board's regulations and orders issued thereunder. For purposes of this action, these commitments
and conditions are both considered 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. These activities
shall not be commenced 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 Chicago, pursuant to delegated authority.
By order of the Board of Governors, effective
November 8, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Vice Chairman Mullins.
JENNIFER J. JOHNSON
Associate Secretary of the Board
14. 12 U.S.C. § 1843(c)(8).
55
First Alabama Bancshares, Inc.
Birmingham, Alabama
Order Approving Applications to Acquire a Savings
Association and Merge Certain Branches into a
Subsidiary Bank
First Alabama Bancshares, Inc., Birmingham, Alabama ("First Alabama"), a bank holding company
within the meaning of the Bank Holding Company Act
("BHC Act"), has applied for the Board's approval
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. 225.23) to acquire indirectly Secor
Bank, F.S.B., Birmingham, Alabama ("Secor"), a
federally chartered savings bank that operates
branches in Alabama, Florida, and Louisiana. First
Alabama also has requested Board approval for its
subsidiary bank, First Alabama Bank, Birmingham,
Alabama ("Bank"), to acquire certain assets and
assume certain liabilities of Secor pursuant to section
5(d)(3) of the Federal Deposit Insurance Act,
12 U.S.C. § 1815(d)(3)(A)(ii) (the "FDI Act"), as
amended by the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. No. 102-242,
§ 501, 105 Stat. 2236, 2388 (1991).1 Section 5(d)(3) of
the FDI Act requires the Board to follow the procedures and consider the factors set forth in the Bank
Merger Act, 12 U.S.C. § 1828(c), in its evaluation of
applications under section 5(d)(3) of the FDI Act. 2
Notice of this proposal, affording interested persons
an opportunity to submit comments, has been published (58 Federal Register 46,972 (1993)). As required
by the Bank Merger Act, reports on the competitive
effects of the mergers were requested from the United
States Attorney General, the Office of the Comptroller
of the Currency, and the Federal Deposit Insurance
1. First Alabama has proposed a two-step transaction to acquire
Secor. First Alabama will charter a second-tier holding company and
interim thrift subsidiary ("Interim Thrift") of the second-tier holding
company. Interim Thrift and Secor will merge, with Secor surviving
the merger. Bank will then acquire the assets and assume the liabilities
of Secor's Alabama branches, with the exception of Secor's branch in
Cherokee County. Bank's acquisition of the Alabama assets and
liabilities of Secor is subject to approval by the Federal Deposit
Insurance Corporation ("FDIC") under section 5(d)(3) of the FDI Act
as well as the Bank Merger Act. 12 U.S.C. §§ 1815(d)(3)(A)(i).
Secor's branches in Florida and Louisiana will operate as a thrift
subsidiary of First Alabama. In this regard, the Board has previously
determined that neither the BHC Act nor the Board's regulations
prohibit a bank holding company from owning a thrift institution that
operates interstate branches pursuant to applicable laws, including
regulations issued by the Office of Thrift Supervision. National
Commerce Bancorporation, 79 Federal Reserve Bulletin 890 (1993).
2. These factors include considerations relating to the effects of the
proposal on competition, the financial and managerial resources and
future prospects of the existing and proposed institutions, and the
convenience and needs of the communities to be served. 12 U.S.C.
§ 1828(c).
56
Federal Reserve Bulletin • January 1994
Corporation. The time for filing comments has expired, and the Board has considered the applications
and all comments received in light of the factors set
forth in section 4(c)(8) of the BHC Act and in the Bank
Merger Act.
The Board has determined that the operation of a
savings association by a bank holding company is
closely related to banking for purposes of section
4(c)(8) of the BHC Act. 3 The Board requires that
savings associations acquired by bank holding companies conform their direct and indirect activities to
those permissible for bank holding companies under
section 4(c)(8) of the BHC Act and Regulation Y. First
Alabama has committed to conform all activities of
Secor to these requirements.4
First Alabama, with consolidated assets of approximately $8.1 billion, controls five subsidiary banks in
Alabama, Florida, Georgia, and Tennessee. 5 Secor
operates branches in Alabama, Florida, and Louisiana. Upon consummation of the transaction, First
Alabama would become the largest commercial banking organization in Alabama, controlling deposits of
approximately $6.5 billion, representing approximately 18.4 percent of the deposits in commercial
banks in the state.6
Competitive
markets ("market deposits") as measured by the
Herfindahl-Hirschman Index ("HHI"), 8 and certain
commitments made by First Alabama.
In the Cherokee County banking market,9 First
Alabama would become the largest depository institution upon consummation of this proposal, controlling
deposits of $68.1 million, representing approximately
52 percent of total market deposits. The HHI would
increase 832 points to 3857. Moveover, the record in
this case indicates that consummation of this proposal
would eliminate one of only four financial institutions
that currently compete in this highly concentrated
market, and that this rural banking market does not
appear to be particularly attractive for entry.
In order to mitigate the adverse competitive effects
that would otherwise result from consummation of this
proposal, First Alabama has committed to divest Secor's only branch in the Cherokee County banking
market, with deposits of approximately $19.3 million,
to a buyer that does not currently operate in this
market.10 The divestiture of this branch of Secor to an
organization not currently operating in this market
would preserve the number of depository institutions
that compete in this market. Based on all the facts of
record, including the commitments made by First
Alabama,11 the Board concludes that consummation of
Considerations
Under section 4(c)(8) of the BHC Act and under the
Bank Merger Act, the Board is required to consider
the competitive effects of this transaction. In this
regard, First Alabama and Secor compete directly in
the following banking markets in Alabama: Birmingham Area, Cherokee County, Dallas County, Huntsville Area, Mobile Area, Montgomery MSA, and Tuscaloosa County. The Board has carefully considered
the effects that consummation of this proposal would
have on competition in these banking markets in light
of all the facts of record, including the characteristics
of these markets, the increase in the concentration of
total deposits in depository institutions7 in these
3. See 12 C.F.R. 225.25(b)(9).
4. Secor engages through subsidiaries in insurance agency activities
and real estate activities that would not be permissible for a bank
holding company under the BHC Act. First Alabama has committed
to terminate all impermissible insurance and real estate activities
within two years of consummation of the proposal. During this
two-year period, First Alabama has also committed to limit Secor's
insurance activities to renewals of existing policies and not to begin or
enter into any new real estate activities or projects.
5. Asset data are as of June 30, 1993.
6. State deposit data are as of June 30,1993 ; market deposit data are
as of June 30, 1992.
7. In this context, depository institutions include commercial banks,
savings banks, and savings associations. Market share data before
consummation are based on calculations in which the deposits of thrift
institutions are included at 50 percent. The Board previously has
indicated that thrift institutions have become, or have the potential to
become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the deposits of
Secor's Alabama branches would be transferred to a commercial bank
under this proposal, those deposits are included at 100 percent in the
calculation of pro forma market share. See Norwest Corporation, 78
Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal
Reserve Bulletin 669 (1990).
8. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered to be highly concentrated. In such markets, the Justice Department is likely to challenge
a merger that increases the HHI by more than 50 points. The Justice
Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by more than 200 points.
The Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anticompetitive effects
implicitly recognize the competitive effect of limited-purpose lenders
and other non-depository financial entities.
9. The Cherokee County banking market is approximated by
Cherokee County, Alabama.
10. The record in this case indicates that the sale of this branch to
either of the other two depository institutions currently operating in
the Cherokee County banking market would significantly exceed the
Department of Justice Merger Guidelines.
11. First Alabama has committed to submit to the Board, prior to
consummation of its acquisition of Secor, a binding contract acceptable to the Board for the sale of this branch. First Alabama also has
committed that if it does not execute such a contract before consummation, First Alabama will transfer this branch to an independent
trustee upon consummation, who will be authorized to supervise the
operations of this thrift branch and instructed to promptly find a
suitable buyer. First Alabama also has committed to submit to the
Board, prior to consummation of the acquisition, an executed trust
Legal Developments
this proposal would not result in significantly adverse
effects on competition in the Cherokee County Banking market.
In the Tuscaloosa County banking market,12 First
Alabama would become the largest depository institution, controlling deposits of $458.9 million, representing approximately 38.2 percent of market deposits.
The HHI would increase by 428 points to 2595. However, a number of factors indicate that the increase in
concentration levels in the Tuscaloosa County banking
market as measured by the HHI tends to overstate the
competitive effects of this proposal. For example,
upon consummation of this proposal, ten depository
institutions would remain in the market, including five
commercial bank subsidiaries of multi-state bank holding companies that each have total assets exceeding
$5 billion. In addition, credit unions actively compete
in the market.13 The Tuscaloosa County banking market also has a number of features that make it attractive for entry, including population growth, deposit
growth, and the level of population per banking
office. 14
In addition, the legal barriers to entry for the
market are low. Alabama permits statewide branching, and is part of the Southeast Regional Banking
Pact, 15 which allows bank holding companies in other
Southeast Regional Pact states to acquire banks in
Alabama. Two banking organizations have entered
the market by acquisition since 1992 and two have
entered the market de novo since 1988. The HHI for
commercial banks in the Tuscaloosa County banking
market has decreased by 186 points since June 30,
1989. In light of all the facts of record, including the
characteristics of this market, the Board concludes
that consummation of this proposal would not result
agreement acceptable to the Board stating the terms of this divestiture. The Board's action on these applications is expressly conditioned upon compliance with these commitments.
12. The Tuscaloosa County banking market is approximated by
Tuscaloosa County and the city of Moundville in Hale County,
Alabama.
13. Credit unions in the Tuscaloosa County market control approximately 16.8 percent of the deposits in commercial banks, thrifts, and
credit unions in the market, which is well above the national average
of approximately 5 percent. The membership requirements for the five
largest credit unions in the market are liberal, and credit unions serve
approximately 39 percent of Tuscaloosa County's population.
14. Tuscaloosa County's population increase between 1980 and
1990 (9.5 percent), deposit growth between June 1989 and June 1992
(18.9 percent), and total population per banking office all exceed the
average for MSA markets in Alabama. Strong growth in the Tuscaloosa County banking market is expected to continue in part due to
an estimated 13,000jobs to be created by a new automobile plant to be
built by Mercedes-Benz AG in the vicinity.
15. The Alabama Regional Reciprocal Banking Act of 1986 defines
the "region" to include Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South
Carolina, Tennessee, Virginia, West Virginia, and the District of
Columbia. Ala. Code § 5-13A-2(10) (Supp. 1987).
57
in significantly adverse effects on competition in the
Tuscaloosa County banking market.
In the Birmingham Area, Dallas County, Huntsville Area, Mobile Area, and Montgomery MSA
banking markets, consummation would result in
slight increases in the concentration of market deposits that do not exceed the Department of Justice's
merger guidelines. Based on all the facts of record,
the Board concludes that consummation of this proposal would not result in significantly adverse effects
on competition in any of these banking markets.
In light of the relatively small increases in concentration, the competition offered by other depository
institutions, certain market characteristics, the proposed divestiture, and all of the facts of record, the
Board concludes that consummation of this proposal
would not have a significantly adverse effect on competition or the concentration of banking resources in
any of the relevant banking markets in which First
Alabama and Secor compete.
Other Considerations
The other factors the Board must consider under the
Bank Merger Act, including the financial and managerial resources and future prospects of First Alabama and Secor and their subsidiaries, and the
convenience and needs of the communities to be
served, also are consistent with approval of this
proposal.
The Board has also reviewed the factors relevant
under section 4(c)(8) of the BHC Act. The record
does not indicate that consummation of this proposal
is likely to result in any significantly adverse effects,
such as undue concentration of resources, decreased
or unfair competition, conflicts of interests, or unsound banking practices that are not likely to be
outweighed by the public benefits of this proposal.
Accordingly, the Board has determined that the
balance of public interest factors it must consider
under section 4(c)(8) of the BHC Act is favorable and
consistent with approval of the application.
The Board also has considered the specific factors it
must review under section 5(d)(3) of the FDI Act, and
the record in this case reflects that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance fund to the other;
(2) First Alabama and Bank currently meet and upon
consummation of the proposed transaction will continue to meet, all applicable capital standards; and
(3) Because Bank is located in Alabama and is
acquiring certain assets and assuming certain liabilities of the branches of Secor located in Alabama,
58
Federal Reserve Bulletin • January 1994
the proposed transaction would comply with the
Douglas Amendment if the Alabama branches of
Secor were a state bank that First Alabama was
applying to acquire directly. See 12 U.S.C.
§ 1815(d)(3).
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
Based on the foregoing and all the facts of record,
the Board has determined that the applications should
be, and hereby are, approved. The Board's approval
of this proposal is specifically conditioned on compliance by First Alabama with the commitments made in
connection with its applications, as supplemented,
including compliance with First Alabama's commitments relating to its divestiture of Secor's Cherokee
County branch. In addition, the Board's approval is
conditioned upon First Alabama's submitting to the
Board before consummation of the acquisition of
Secor all required agreements, including an executed
trust agreement, necessary to complete an effective
divestiture under the BHC Act. The commitments and
conditions relied on by the Board in reaching this
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. This approval is also
conditioned upon First Alabama's receiving all necessary federal and state approvals, and Bank's receiving
the requisite approval of its primary federal regulator
under the Bank Merger Act.
Order Approving Applications to Acquire a Bank
and a Savings Association
The Board's determination also is subject to all the
conditions set forth in Regulation Y, including those in
sections 225.4(d) and 225.23(b)(3), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, and to prevent evasion of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder.
The transaction pursuant to section 5(d)(3) of the
FDI Act shall not be consummated before the thirtieth
calendar day following the effective date of this Order,
and neither transaction shall be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective
November 22, 1993.
Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Angell, Kelley, Lindsey, and
Phillips. Absent and not voting: Governor La Ware.
JENNIFER J. JOHNSON
Associate Secretary of the Board
The Colonial BancGroup, Inc.
Montgomery, Alabama
The Colonial BancGroup, Inc., Montgomery, Alabama ("BancGroup"), a bank holding company within
the meaning of the Bank Holding Company Act
("BHC Act"), has applied under section 3 of the
BHC Act (12 U.S.C. § 1842) to acquire Colonial Bank
of Tennessee, Ardmore, Tennessee ("ColonialTennessee"). BancGroup also has applied under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8))
and section 225.23 of the Board's Regulation Y
(12 C.F.R. 225.23) to acquire by merger First AmFed
Corporation, Huntsville, Alabama ("First AmFed"), a
savings and loan holding company, and thereby indirectly acquire First AmFed's wholly owned subsidiary
savings association, First American Federal Savings
and Loan Association, Huntsville, Alabama ("Association").
In addition, BancGroup has applied for ColonialTennessee to acquire the Tennessee assets and assume
the Tennessee liabilities of the Association pursuant to
section 5(d)(3) of the Federal Deposit Insurance Act
(12 U.S.C. § 1815(d)(3)) ("FDI Act"), as amended by
the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub L. No. 102-242, § 501, 105 Stat.
2236, 2388 (1991) ("FDICIA"). BancGroup also has
applied under section 5(d)(3) of the FDI Act, as
amended by FDICIA, for its wholly owned state
nonmember subsidiary bank, Colonial Bank, Montgomery, Alabama ("Colonial Bank"), to acquire by
merger the remaining assets and assume the remaining
liabilities of the Association. 1 Section 5(d)(3) of the
FDI Act requires the Board to review the transfer of
such assets and liabilities to a bank holding company's
subsidiary bank that is a Bank Insurance Fund member, and in reviewing these proposals, to follow the
procedures and consider the factors set forth in section
18(c) of the FDI Act (12 U.S.C. § 1828(c)) ("the Bank
Merger Act"). 12 U.S.C. § 1815(d)(3)(E).2
1. The acquisition and assumption of assets and liabilities of the
Association is also subject to review under the FDI Act and the Bank
Merger Act by the Federal Deposit Insurance Corporation ("FDIC"),
which is the primary banking regulator for Colonial-Tennessee and
Colonial Bank. 12 U.S.C. § 1828(c).
2. These factors include considerations relating to competition,
financial and managerial resources, and future prospects of the
existing and proposed institutions, and the convenience and needs of
the communities to be served. 12 U.S.C. § 1828(c).
Legal Developments
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 48,066 and 48,523
(1993)). Reports on the competitive effects of the
merger were requested from the United States Attorney General, the Office of the Comptroller of the
Currency, the FDIC, and the Office of Thrift Supervision. The time for filing comments has expired, and the
Board has considered the application and all comments received in light of the factors set forth in
sections 3(c) and 4(c)(8) of the BHC Act, the Bank
Merger Act, and section 5(d)(3) of the FDI Act.
The Board has determined that the operation of a
savings association by a bank holding company is
closely related to banking for purposes of section
4(c)(8) of the BHC Act. 3 In making this determination,
the Board has required that savings associations acquired by bank holding companies conform their direct
and indirect activities to those permissible for bank
holding companies under section 4(c)(8) of the BHC
Act. BancGroup has committed that it will not, as a
result of this transaction, engage in any activities not
permitted for bank holding companies under section
4(c)(8) of the BHC Act and the Board's Regulation Y. 4
BancGroup is the fifth largest commercial banking
organization in Alabama, controlling deposits of approximately $1.5 billion, representing 4.5 percent
of total deposits in commercial banking organizations
in the state.5 First AmFed controls deposits of
$288.8 million, representing less than 1 percent of the
total deposits in commercial banking organizations in
the state. Upon consummation of the proposed transaction, BancGroup would remain the fifth largest
commercial banking organization in Alabama, controlling deposits of approximately $1.8 billion, representing approximately 5 percent of the total deposits in
commercial banking organizations in the state. In
addition, BancGroup would acquire $97.1 million in
Tennessee deposits, making it the 50th largest bank
holding company in that state.
Section 3(d) of the BHC Act (12 U.S.C. § 1842(d)),
the Douglas Amendment, prohibits the Board from
approving an application by a bank holding company
to acquire control of any bank located outside of the
holding company's home state, unless such acquisition
is "specifically authorized by statute laws of the state
3. 12 C.F.R. 225.25(b)(9).
4. Association engages through subsidiaries in real estate and
insurance agency activities that would not be permissible for a bank
holding company under the BHC Act. BancGroup has committed to
terminate all impermissible real estate and insurance activities within
two years of consummation of the proposal. During this two-year
period, BancGroup has also committed to limit such insurance activities to renewals of existing policies and not to begin or enter into any
new real estate activities or projects.
5. Bank deposit and state deposit data are as of June 30, 1992.
59
in which [the] bank is located, by language to that
effect and not merely by implication." The Board
previously has concluded that the laws of Tennessee
expressly authorize the acquisition of Tennessee
banks by Alabama bank holding companies.6
BancGroup and First AmFed compete in the Huntsville Area banking market and the Jackson County
banking market in Alabama.7 Upon consummation of
this proposal, BancGroup would become the third
largest depository institution in the Huntsville Area
banking market, controlling $437.8 million in deposits
in depository institutions in the market ("market deposits"), representing approximately 18.3 percent of
market deposits.8 BancGroup would also become the
third largest depository institution in the Jackson
County banking market, controlling $63.4 million in
deposits, representing approximately 17.4 percent of
market deposits. Both markets would remain moderately concentrated under the Department of Justice's
Merger Guidelines.9 Based on all the facts of record in
this case, including the resulting market shares, the
relatively small change in market concentration measured by the HHI, and the number of competitors
6. AmSouth Bancorporation, 76 Federal Reserve Bulletin 957
(1990); South Trust of Tennessee, Inc., 74 Federal Reserve Bulletin
779 (1988). The Tennessee Commissioner of Financial Institutions has
confirmed that the proposal complies with the provisions of the
Tennessee interstate banking statute, including the five-year longevity
requirement at Tenn. Code Ann. § 45-12-103(b)(2). The Tennessee
Commissioner has not approved the proposal, however, and the
Board's approval is conditioned upon BancGroup's obtaining the
necessary state approvals.
7. The Huntsville Area banking market consists of Madison and
Limestone Counties, excluding the city of Ardmore, Alabama. The
Jackson County banking market is delineated by Jackson County,
Alabama.
8. Market data are as of June 30, 1992. In this context, depository
institutions include commercial banks, savings banks, and savings
associations. Market share data before consummation are based on
calculations in which the deposits of thrift institutions are included at
50 percent. The Board previously has indicated that thrift institutions
have become, or have the potential to become, significant competitors
of commercial banks. See , WM Bancorp, 16 Federal Reserve Bulletin
788 (1990); National City Corporation, 70 Federal Reserve Bulletin
743 (1984). Because the deposits of the Association will be transferred
to a commercial bank under this proposal, those deposits are included
at 100 percent in the calculations of pro forma market share. See,
Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First
Banks, Inc., 76 Federal Reserve Bulletin 669, 670 n.9 (1990).
9. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger Herfindahl-Hirschman Index ("HHI") is between 1000
and 1800 is considered moderately concentrated. The Justice Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anti-competitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by more than 200 points.
The Justice Department has stated that the higher than normal HHI
thresholds for screening bank mergers for anti-competitive affects
implicitly recognize the competitive effect of limit-purpose lenders
and other non-depository financial institutions. Upon consummation
of the proposal, the HHI in the Huntsville Area banking market would
increase by 63 points to 1707 while the HHI in the Jackson County
banking market would not increase.
A60 Federal Reserve Bulletin • January 1994
remaining in these markets, the Board concludes that
consummation of this proposal would not have a
significantly adverse effect on competition or the concentration of banking resources in the Huntsville Area
or Jackson County banking market, or in any other
relevant banking market.
Convenience and Needs
Considerations
In acting on an application to acquire a depository
institution under the BHC Act and an application
under section 5(d) of the FDI Act, the Board 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 Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA"). The CRA requires the federal financial
supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate, consistent with the
safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's record of meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record
into account in its evaluation of bank holding company
applications.10
The Board has received comments criticizing BancGroup's record of performance under the CRA from
the Alabama Community Reinvestment Alliance, Birmingham, Alabama ("Protestant"). Protestant generally alleges that BancGroup has not met the convenience and needs of low-income African-American
residents in Montgomery County and Montgomery,
Alabama.
The Board has carefully reviewed the CRA performance records of BancGroup, First AmFed, and their
subsidiaries, as well as comments received on these
applications; BancGroup's responses to those comments; and all other relevant facts of record, in light of
the CRA, the Board's regulations, and the Statement
of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency
CRA Statement").11
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
10. 12 U.S.C. § 2903.
11. 54 Federal Register 13,742 (1989).
factor in the consideration of an institution's CRA
record, and that these reports will be given great
weight in the application process. 12 The record in this
case indicates that BancGroup's subsidiary bank, Colonial Bank, received a "satisfactory" rating for CRA
performance from its primary regulator, the FDIC, in
March 1993. The Association also received a "satisfactory" rating for CRA performance from the Office
of Thrift Supervision in April 1993.
B. Lending Practices in Montgomery MSA
The Board has reviewed carefully the Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.)
("HMDA") data reported by Colonial Bank, especially with respect to the Montgomery Metropolitan
Statistical Area ("MSA"), in light of Protestant's
comments. The data for the Montgomery MSA reflect mixed results. For example, as a percentage of
overall housing-related loan applications and originations, the number of applications from and originations to minorities by Colonial Bank generally exceed the aggregate percentage for other lenders in the
Montgomery MSA. However, these data also indicate some disparities in rates of approvals and denials of housing-related loan applications that vary by
racial and ethnic group and a small number of applications and originations for housing-related lending.
Because all banks are obligated to ensure that their
lending practices are based on criteria that assure not
only safe and sound lending, but also assure equal
access to credit by creditworthy applicants regardless of race, the Board is concerned when the record
of an institution indicates disparities in lending to
minority applicants. The Board recognizes, however,
that HMDA data alone provide only a limited measure of any given institution's lending in its community. The Board also recognizes that HMDA data
have limitations that make the data an inadequate
basis, absent other information, for conclusively
determining whether an institution has engaged in
illegal discrimination on the basis of race or ethnicity
in making lending decisions.
In this regard, the FDIC determined at the March
1993 examination of Colonial Bank that the bank's
loan policies and procedures did not reveal any practices intended to discourage applications for credit,
and examiners found no evidence of prohibited discriminatory or other illegal credit practices. The bank
was also found to be complying with the substantive
provisions of the anti-discrimination laws and regulations. In addition, examiners found that the geographic
12. 54 Federal Register at 13,745.
Legal Developments
distribution of Colonial Bank's credit extensions, applications and denials appeared reasonable.
The HMDA data indicate that Colonial Bank is not
an active home mortgage lender in the Montgomery
MSA. BancGroup maintains that Colonial Bank normally refers long-term fixed rate mortgage borrowers
in the Montgomery MSA to several mortgage companies including a mortgage company wholly owned by
shareholders of BancGroup.13 The Board notes that
the CRA does not require an institution to make
specific types of credit available or limit an institution's discretion to develop the types of products and
services that it believes are best suited to its expertise
and business objectives and to the needs of its particular community.
In the Montgomery MSA, Colonial Bank engages
primarily in commercial and consumer lending. Colonial Bank offers a variety of lending products in the
Montgomery MSA to assist in meeting the credit needs
of low- and moderate-income borrowers. These include consumer loans, commercial real estate loans
and other commercial loans. During the first nine
months of 1993, Colonial Bank originated 1,753 loans
of all types, totalling $71.4 million, in low- and
moderate-income areas in its delineated Montgomery
district, which represented 33 percent of the dollar
amount of the bank's loans in the Montgomery district, which includes Montgomery County. For example, Colonial Bank originated 264 loans, totalling
$4.2 million, in low- and moderate-income areas in the
Montgomery MSA during the first ten months of 1993.
The bank's total loan originations during this period
included 134 loans for agricultural production, totalling $2.2 million; and 77 loans secured by farm land,
totalling $18.6 million.
C. Other Lending and CRA Related Programs
In its other delineated communities, Colonial Bank
offers a variety of products and services, such as
first-time real estate mortgage loans, rehabilitation
loans, small business loans, and home improvement
loans, that are specifically designed to help meet the
credit needs of its communities, including low- and
moderate- income neighborhoods. As of March 1993,
Colonial Bank's total outstanding loans to low- and
moderate-income consumers for residential purchase, construction, or improvement (including single family dwellings, mobile homes, and condominiums) numbered 2889, totalling $73.5 million. The
bank had $22.5 million in total outstanding small farm
13. 1992 HMDA data indicate that this mortgage company was the
second largest reporting lender in the Montgomery MSA.
61
loans and $128.5 million in total outstanding small
business loans.
Colonial Bank also actively participates in several
governmentally insured loan programs for housing,
small farms, and small businesses and has outstanding
over 200 Small Business Administration loans amounting to approximately $10 million. Colonial Bank provides financing to local developers who build singlefamily or multi-family housing in low- and moderateincome areas. Its records indicate that it has 277 such
loans outstanding, totalling $28.9 million as of March
1993.
In Birmingham, Colonial Bank participates with
other financial institutions and the city in the Birmingham Mortgage Plan, which offers loans for the purchase of a home with no origination fee and a reduced
down payment of 3 percent. This plan was primarily
funded with $1.5 million from Colonial Bank and other
financial institutions in Birmingham. Colonial Bank
also is participating in the formation of the Wallace
Housing Plan, which is coordinated by the Alabama
Treasurer's Office and is designed to provide help and
financing for the purchase of homes by low- and
moderate-income families.
The record also indicates that Colonial Bank has put
in place the types of policies outlined in the Agency
CRA Statement that contribute to an effective CRA
program. Although primary responsibility for monitoring CRA compliance has been assigned to the CRA
Committee for each geographical area served by Colonial Bank, the board of directors has established a
corporate CRA policy and reviews the performance of
each CRA Committee. In addition, the board of directors has appointed a CRA officer responsible for
the bank's overall CRA program. The CRA officer has
developed a CRA program that addresses the bank's
CRA goals and objectives, and requires selfassessment of CRA performance.
D. Conclusion Regarding the Convenience and
Needs Factor
In reviewing the convenience and needs factor under
the BHC Act, the Board has carefully considered the
entire record of this application, including comments
filed in this case, responses by Colonial Bank, and the
bank's recent CRA examination. Based on this review, the Board believes that the record of performance by BancGroup and Colonial Bank to help meet
the credit needs of all segments of the communities
they serve, including low- and moderate-income and
minority communities, are consistent with approval.
The Board recognizes, however, that some disparities
in lending to low- and moderate-income areas exist,
but notes that the bank is in the process of fully
A62 Federal Reserve Bulletin • January 1994
implementing a geographic analysis of its lending
patterns.
In this regard, the Board will continue to monitor
BancGroup's efforts in meeting the credit needs of all
its communities, including low- and moderate-income
and minority neighborhoods, and will consider those
efforts in future applications. The Board has also
directed the Federal Reserve Bank of Atlanta ("Reserve Bank") to monitor BancGroup's progress in
addressing these disparities. As a condition of the
Board's action in this case, BancGroup must submit
quarterly reports to the Reserve Bank that describe
BancGroup's progress in correcting these weaknesses
in CRA performance. Based on all the facts of record,
the Board concludes that convenience and needs considerations, including the CRA performance of BancGroup, First AmFed, and their subsidiary institutions,
are consistent with approval of this application.14
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of BancGroup,
its subsidiary banks, and the Association, and other
supervisory factors the Board must consider under
section 3 of the BHC Act, are consistent with approval. Moreover, the record in this case shows that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance fund to the other;
(2) BancGroup, Colonial Bank and ColonialTennessee will meet all applicable capital standards
upon consummation of the proposed transactions;
and
(3) The proposed transaction would comply with the
Douglas Amendment if the Association were a state
bank that BancGroup was applying to acquire directly (see 12 U.S.C. § 1815(d)(3)).
14. Protestant has requested that the Board hold a public meeting or
hearing on this application. The Board is not required under section
3(b) of the BHC Act to hold a hearing on an application unless the
appropriate banking authority for the bank to be acquired makes a
timely written recommendation of denial of the application. In this
case, the Tennessee state banking authorities have not recommended
denial of the proposal.
Generally, under the Board's rules, the Board may, in its discretion,
hold a public hearing or meeting on an application to clarify factual
issues related to the application, and to provide an opportunity for
testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The
Board has carefully considered this request. In the Board's view,
interested parties have had a sufficient opportunity to present written
submissions, and have submitted written comments that have been
considered by the Board. On the basis of all the facts of record, the
Board has determined that a public meeting or hearing is not necessary
to clarify the factual record in this application, or otherwise warranted
in this case. Accordingly, the request for a public meeting or hearing
on this application is hereby denied.
The evidence of record does not indicate that approval
of the proposed acquisition of shares of First AmFed
would result in any significantly adverse effects, such
as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices that are not outweighed by public
benefits. Accordingly, the Board has determined that
the balance of public interest factors that the Board
must consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of BancGroup's application to acquire First AmFed.
Conclusion
Based on the foregoing and all the facts of record, the
Board has determined that these applications should
be, and hereby are, approved. This approval is subject
to Colonial Bank's and Colonial-Tennessee's each
obtaining the required approval of the appropriate
Federal banking agency for the proposed merger under
the Bank Merger Act. The Board's approval of these
applications also is expressly conditioned upon BancGroup's compliance with the commitments made in
connection with these applications. In addition, the
Board's determination is subject to all of the conditions set forth in Regulation Y, including those in
sections 225.24(d) and 225.23(b)(3), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with, and to prevent evasion thereof, the
provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder. For
purposes of this action, the commitments and conditions relied on in reaching this decision are both
conditions imposed in writing by the Board, and, as
such, may be enforced in proceedings under applicable
law.
The acquisition of Colonial-Tennessee may not be
consummated before the thirtieth calendar day after
the effective date of this Order, and the acquisition of
Colonial-Tennessee and First AmFed may not be
consummated later than three months after the effective date of this Order, unless such period is extended
by the Board or by the Reserve Bank, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
November 29, 1993.
Voting for this action: Chairman Greenspan, Vice Chairman Mullins, and Governors Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J. JOHNSON
Associate Secretary of the Board
Legal Developments
ACTIONS
TAKEN
UNDER THE FEDERAL DEPOSIT INSURANCE
CORPORATION
IMPROVEMENT
63
ACT OF
1991
By the Director of the Division of Banking Supervision and Regulation and the General Counsel of
the Board
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.
Acquired
Thrift
Bank Holding Company
AmSouth Bancorporation,
Birmingham, Alabama
First Federal Savings
Bank,
Calhoun, Georgia
AmSouth Bancorporation,
Birmingham, Alabama
FloridaBank, F.S.B.,
Jacksonville, Florida
Fifth Third Bancorp,
Cincinnati, Ohio
First Financial Savings
Association, F.A.,
Cincinnati, Ohio
Fifth Third Bancorp,
Cincinnati, Ohio
World Savings and Loan
Association,
Oakland, California
SouthTrust Corporation,
Birmingham, Alabama
First Federal Savings
Bank of Georgia, F.A.,
Winder, Georgia
APPLICATIONS
APPROVED
UNDER BANK HOLDING
Acquiring
Bank(s)
Approval
Date
AmSouth Bank of
Georgia,
Summerville,
Georgia
AmSouth Bank of
Florida,
Pensacola, Florida
Fifth Third Bank of
Western Ohio,
N.A.,
Piqua, Ohio
Fifth Third Bank of
Western Ohio,
N.A.,
Piqua, Ohio
Fifth Third Bank of
Northwestern Ohio,
N.A.,
Toledo, Ohio
SouthTrust of
Georgia, Inc.,
Atlanta, Georgia
November 10, 1993
COMPANY
November 10, 1993
November 1, 1993
November 8, 1993
November 5, 1993
ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant(s)
Keystone Financial, Inc.,
Harrisburg, Pennsylvania
NBC Capital Corporation,
Starkville, Mississippi
Bank(s)
WM. Bancorp,
Cumberland, Maryland
Charter Holding
Company, Inc.,
Tuscaloosa, Alabama
Effective
^ate
November 29, 1993
November 26, 1993
A64 Federal Reserve Bulletin • January 1994
Section 4
Applicants)
First of America Bank
Corporation,
Kalamazoo, Michigan
First of America
Mortgage Company,
Kalamazoo, Michigan
FOA Mortgage Company,
Kalamazoo, Michigan
Keystone Brokerage,
Inc.,
Williamsport,
Pennsylvania
Commerce Finance
Company,
Germantown,
Tennessee
Keystone Financial, Inc.,
Harrisburg, Pennsylvania
National Commerce
Bancorporation,
Memphis, Tennessee
APPLICATIONS
APPROVED
Effective
Date
Bank(s)
UNDER BANK HOLDING
COMPANY
November 15, 1993
November 24, 1993
November 26, 1993
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)
1889 Bancshares, Inc.,
Nevada, Missouri
Allied Bank Capital, Inc.,
Sanford, North Carolina
American Chartered Bancorp II,
Lake Zurich, Illinois
AmSouth Bancorporation,
Birmingham, Alabama
AmSouth Bancorporation,
Birmingham, Alabama
AmSouth Bancorporation,
Birmingham, Alabama
Bank(s)
The First National Bank
of Nevada,
Nevada, Missouri
Peoples Savings Bank,
Inc., SSB,
Wilmington, North
Carolina
American Chartered Bank
of Lake Zurich,
Lake Zurich, Illinois
Citizens National
Corporation,
Naples, Florida
First Sunbelt Bancshares,
Inc.,
Rome, Georgia
Parkway Bancorp, Inc.,
Fort Myers, Florida
Reserve
Bank
Effective
Date
Kansas City
October 28, 1993
Richmond
November 19, 1993
Chicago
November 1, 1993
Atlanta
November 10, 1993
Atlanta
November 10, 1993
Atlanta
November 10, 1993
Legal Developments
65
Section 3—Continued
Applicant(s)
BancFirst,
Oklahoma City, Oklahoma
BancFirst Corporation,
Oklahoma City, Oklahoma
Banc One Corporation,
Columbus, Ohio
Banterra Corp.,
Eldorado, Illinois
Barrett Holding Company,
Watonga, Oklahoma
BB&T Financial Corporation,
Wilson, North Carolina
Reserve
Bank
Bank(s)
Security Bank,
Coweta, Oklahoma
First American Bank,
Stratford, Oklahoma
United Community Bank,
Weathorford, Oklahoma
Coweta Bancshares, Inc.,
Coweta, Oklahoma
First Stratford
Bancorporation, Inc.,
Stratford, Oklahoma
Weathorford
Bancorporation, Inc.,
Weathorford, Oklahoma
Banc One Wisconsin
Corporation,
Milwaukee, Wisconsin
First Financial
Associates, Inc.,
Kenosha, Wisconsin
First of Murphysboro
Corp.,
Murphysboro, Illinois
Watonga Bancshares,
Inc.,
Watonga, Oklahoma
Citizens Savings Bank,
SSB,
Mooresville, North
Effective
Date
Kansas City
November 5, 1993
Kansas City
November 5, 1993
Cleveland
November 8, 1993
St. Louis
November 19, 1993
Kansas City
November 23, 1993
Richmond
November 17, 1993
Richmond
November 18, 1993
New York
November 3, 1993
Kansas City
October 28, 1993
Minneapolis
November 23, 1993
Dallas
November 12, 1993
Carolina
BB&T Financial Corporation,
Wilson, North Carolina
Bergen North Financial, M.H.C.
Westwood, New Jersey
Berthoud Bancorp, Inc.
Employee Stock Ownership
Plan,
Berthoud, Colorado
BNCCORP, Inc.,
Bismarck, North Dakota
Bridgeport Bancshares, Inc.,
Dover, Delaware
Scotland Savings Bank,
SSB,
Laurinburg, North
Carolina
Westwood Savings Bank,
Westwood, New Jersey
Berthoud Bancorp, Inc.,
Berthoud, Colorado
Farmers and Merchants
Bancshares, Inc.,
Beach, North Dakota
The First National Bank
of Bridgeport,
Bridgeport, Texas
66
Federal Reserve Bulletin • January 1994
Section 3—Continued
Applicant(s)
Bridgeport Financial
Corporation,
Bridgeport, Texas
BT Financial Corporation,
Johnstown, Pennsylvania
Caldwell Bancshares, Inc.,
Caldwell, Texas
Caldwell Bancshares of
Delaware, Inc.,
Wilmington, Delaware
Capital Bancshares, Inc.,
Green Bay, Wisconsin
Cedar Investment Company,
Waverly, Iowa
Centennial Bank Holdings, Inc.,
Eaton, Colorado
Central Arkansas Bancshares,
Inc.,
Arkadelphia, Arkansas
Centura Banks, Inc.,
Rocky Mount, North Carolina
Centura Banks, Inc.,
Rocky Mount, North Carolina
Community Business
Bancshares, Inc.,
Sauk City, Wisconsin
Community First Bancorp, Inc.,
Denver, Colorado
CoreStates Financial Corp.,
Philadelphia, Pennsylvania
Reserve
Bank
Bank(s)
Bridgeport Bancshares,
Inc.,
Dover, Delaware
The First National Bank
of Bridgeport,
Bridgeport, Texas
FirstSouth Savings Bank,
Pittsburgh,
Pennsylvania
Caldwell Bancshares of
Delaware, Inc.,
Wilmington, Delaware
Caldwell National Bank,
Caldwell, Texas
Caldwell National Bank,
Caldwell, Texas
Capital Bank,
Green Bay, Wisconsin
Dike Bancshares
Corporation,
Dike, Iowa
Farmers Bank,
Eaton, Colorado
GCB Bancshares, Inc.,
Sheridan, Arkansas
First Charlotte Financial
Corporation,
Charlotte, North
Carolina
Robeson Interim Bank,
Lumberton, North
Carolina
Community Business
Bank,
Sauk City, Wisconsin
American National Bank
of Cheyenne,
Cheyenne, Wyoming
The Bank of Laramie,
Laramie, Wyoming
Financial Partners, Inc.,
Worland, Wyoming
Inter Community
Bancorp,
Springfield, New Jersey
Effective
Date
Dallas
November 12, 1993
Philadelphia
November 1, 1993
Dallas
November 22, 1993
Dallas
November 22, 1993
Chicago
October 28, 1993
Chicago
November 16, 1993
Kansas City
October 20, 1993
St. Louis
November 19, 1993
Richmond
November 12, 1993
Richmond
November 10, 1993
Chicago
October 29, 1993
Kansas City
October 29, 1993
Philadelphia
November5, 1993
Legal Developments
67
Section 3—Continued
Applicant(s)
Covington Capital Corporation,
Collins, Mississippi
Edmonson Bancshares, Inc.,
Brownsville, Kentucky
Exchange Bancshares, Inc.,
Luckey, Ohio
FC Banc Corp.,
Bucyrus, Ohio
First Baird Bancshares, Inc.,
Baird, Texas
First Baird Bancshares of
Delaware, Inc.,
Dover, Delaware
First Commonwealth Financial
Corporation,
Indiana, Pennsylvania
First Community Bancorp, Inc.,
Auburn, Kentucky
First Community Bankshares,
Inc.,
Fort Morgan, Colorado
First Golden Bancorporation,
Golden, Colorado
First Haskell Bancorp, Inc.,
Haskell, Texas
First Manistique Corporation,
Manistique, Michigan
First McKinney Bancshares,
Inc.,
McKinney, Texas
The First National Bank Holding
Company,
Longmont, Colorado
Reserve
Bank
Bank(s)
Covington County Bank,
Collins, Mississippi
Bank of Edmonson
County,
Brownsville, Kentucky
The Exchange Bank,
Luckey, Ohio
The Farmers Citizens
Bank,
Bucyrus, Ohio
Parker County
Bancshares, Inc.,
Weatherford, Texas
First Parker Bancshares,
Inc.,
Carson City, Nevada
Weatherford Bancshares,
Inc.,
Weatherford, Texas
First Weatherford
Bancshares, Inc.,
Carson City, Nevada
First National Bank of
Weatherford,
Weatherford, Texas
Peoples Bank of Western
Pennsylvania,
New Castle,
Pennsylvania
Auburn Banking
Company,
Auburn, Kentucky
Republic National Bank,
Englewood, Colorado
Citywide Bank of
Apple wood,
Wheat Ridge, Colorado
First National Bank,
Haskell, Texas
Bank of Stephenson,
Stephenson, Michigan
First Bank,
McKinney, Texas
The First National Bank
of Longmont,
Longmont, Colorado
Effective
Date
Atlanta
October 28, 1993
St. Louis
October 29, 1993
Cleveland
October 28, 1993
Cleveland
November 9, 1993
Dallas
November 22, 1993
Cleveland
November 18, 1993
St. Louis
November 19, 1993
Kansas City
November 2, 1993
Kansas City
October 20, 1993
Dallas
October 25, 1993
Minneapolis
November 3, 1993
Dallas
October 27, 1993
Kansas City
November 17, 1993
68
Federal Reserve Bulletin • January 1994
Section 3—Continued
Applicant(s)
First Star Bancorp, Inc.,
Bethlehem, Pennsylvania
F&M Bancorporation, Inc.,
Kaukauna, Wisconsin
Fourth Financial Corporation,
Wichita, Kansas
Gloucester County Bankshares,
Inc.,
Woodbury, New Jersey
Gordon Management Co.,
Chicago, Illinois
Griggsville Bancshares, Inc.,
Griggsville, Illinois
Hall Properties, A Limited
Partnership,
Perry, Oklahoma
Hocking Valley BancShares,
Athens, Ohio
Interbank, Inc.,
Sayre, Oklahoma
JAM Family Partnership I, L.P.,
Elberton, Georgia
JAM Family Partnership II, L.P.,
Elberton, Georgia
Jones Bancshares, L.P.,
Waycross, Georgia
KS Bancorp, Inc.,
Kenly, North Carolina
Lake Elmo Bank Profit Sharing
Plan,
Lake Elmo, Minnesota
Lake Elmo Bank Profit Sharing
Trust,
Lake Elmo, Minnesota
Lone Tree Service Company,
Lone Tree, Iowa
Bank(s)
First Star Savings Bank,
Bethlehem,
Pennsylvania
First National Financial
Corporation,
Oconto, Wisconsin
Ponca Bancshares, Inc.,
Ponca City, Oklahoma
The Bank of Gloucester
County,
Woodbury, New Jersey
CNBC Bancorp, Inc.,
Chicago, Illinois
Columbia National Bank
of Chicago,
Chicago, Illinois
Farmers National Bank of
Griggsville,
Griggsville, Illinois
Perry Bancshares, Inc.,
Perry, Oklahoma
The Hocking Valley
Bank,
Athens, Ohio
First National Bank of
Sayre,
Sayre, Oklahoma
Pinnacle Financial
Corporation,
Elberton, Georgia
Blackshear Bancshares,
Inc.,
Blackshear, Georgia
Kenly Savings Bank,
Inc., SSB,
Kenly, North Carolina
Lake Elmo Bancorp, Inc.,
Lake Elmo, Minnesota
Packwood Financial, Inc.,
Packwood, Iowa
Reserve
Bank
Effective
Date
Philadelphia
November 1, 1993
Chicago
November 12, 1993
Kansas City
October 28, 1993
Philadelphia
November 5, 1993
Chicago
October 28, 1993
St. Louis
October 25, 1993
Kansas City
November 5, 1993
Cleveland
November 10, 1993
Kansas City
November 2, 1993
Atlanta
November 4, 1993
Atlanta
November 2, 1993
Richmond
November 10, 1993
Minneapolis
November 10, 1993
Chicago
November 5, 1993
Legal Developments
69
Section 3—Continued
Applicant(s)
Main Street Banks, Inc.,
Covington, Georgia
McConnell & Company,
Elberton, Georgia
Eberhardt, Inc.,
Elberton, Georgia
Mercantile Acquisition
Corporation IV,
St. Louis, Missouri
Mercantile Bancorporation Inc.,
St. Louis, Missouri
Neosho Bancshares ESOP,
Neosho, Missouri
Norwest Corporation,
Minneapolis, Minnesota
OMNIBancorp,
Denver, Colorado
Orion Bancorporation, Inc.,
Orion, Illinois
Packers Management Company,
Inc.,
Omaha, Nebraska
Peotone Bancorp, Inc.,
Peotone, Illinois
Southwest Bancorp, Inc.,
Worth, Illinois,
Terrapin Bancorp, Inc.,
Elizabeth, Illinois
Rock River Bancorporation, Inc.,
Oregon, Illinois
Westbanco, Inc.,
Westville, Illinois
Minooka Bancorp, Inc.,
Minooka, Illinois
Pinnacle Financial Corporation,
Elberton, Georgia
Bank(s)
Reserve
Bank
Effective
Date
First Federal Savings
Bank of Georgia, F.A.
Winder, Georgia
Pinnacle Financial
Corporation,
Elberton, Georgia
Atlanta
November 5, 1993
Atlanta
November 4, 1993
Metro Bancorporation,
Waterloo, Iowa
St. Louis
November 9, 1993
Metro Bancorporation,
Waterloo, Iowa
Neosho Bancshares, Inc.
Neosho, Missouri
First National Bank of
Arapahoe County,
Aurora, Colorado
First National Bank of
Southeast Denver,
Denver, Colorado
First National Bank of
Lake wood,
Lake wood, Colorado
Denver West Bank and
Trust,
Golden, Colorado
Henry County Bancorp,
Inc.,
Cambridge, Illinois
Nebraska National
Corporation,
Omaha, Nebraska
Founders Bancorp, Inc.,
Scottsdale, Arizona
St. Louis
November 9, 1993
Kansas City
October 22, 1993
Minneapolis
October 21, 1993
Kansas City
November 19, 1993
Chicago
October 22, 1993
Kansas City
November 10, 1993
Chicago
November 2, 1993
Tri-County Bank of
Royston,
Royston, Georgia
Kansas City
November17,1993
A70 Federal Reserve Bulletin • January 1994
Section 3—Continued
Applicant(s)
Plaza Bancshares, Inc.,
Bartlesville, Oklahoma
Premier Bancorp, Inc.,
Baton Rouge, Louisiana
Prophetstown Banking Co.,
Prophetstown, Illinois
Provident Bancorp, Inc.,
Cincinnati, Ohio
R. Banking Limited Partnership,
Oklahoma City, Oklahoma
RCB Holding Company,
Claremore, Oklahoma
Red River Financial Services,
Inc.,
Halstad, Minnesota
Rice Insurance Agency, Inc.,
Strasburg, Colorado
Robert Lee Bancshares, Inc.,
Robert Lee, Texas
Robert Lee (Delaware), Inc.,
Wilmington, Delaware
SBT Bancshares, Inc.,
Golden Meadow, Louisiana
Sentinel Bancorporation,
Omak, Washington
Shady Oaks Bancshares, Inc.,
Lake Worth, Texas
South Central Texas Bancshares,
Inc.,
Flatonia, Texas
South Central Texas
Bancshares-Delaware, Inc.,
Wilmington, Delaware
Reserve
Bank
Bank(s)
Effective
Date
Plaza National Bank of
Bartlesville,
Bartlesville, Oklahoma
Alerion Corporation,
New Orleans,
Louisiana
The Farmers National
Bank of Prophetstown,
Prophetstown, Illinois
Heritage Savings Bank,
Cincinnati, Ohio
BancFirst Corporation,
Oklahoma City,
Oklahoma
American Exchange
Bank,
Collinsville, Oklahoma
Red River State Bank,
Halstad, Minnesota
Kansas City
November 10, 1993
Atlanta
November 22, 1993
Chicago
November 8, 1993
Cleveland
October 25, 1993
Kansas City
November 5, 1993
Kansas City
October 29, 1993
Minneapolis
November 2, 1993
The Banking Group, Ltd.,
Castle Rock, Colorado
Robert Lee (Delaware),
Inc.,
Wilmington, Delaware
Robert Lee State Bank,
Robert Lee, Texas
Robert Lee State Bank,
Robert Lee, Texas
State Bank & Trust
Company of Golden
Meadow,
Golden Meadow,
Louisiana
First Bank Washington,
Omak, Washington
Shady Oaks National
Bank,
Lake Worth, Texas
Gonzales Bank,
Gonzales, Texas
Kansas City
November 10, 1993
Dallas
October 29, 1993
Dallas
October 29, 1993
Atlanta
October 27, 1993
San Francisco
November 10, 1993
Dallas
November 10, 1993
Dallas
November 10, 1993
Legal Developments
71
Section 3—Continued
Applicant(s)
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust Corporation,
Birmingham, Alabama
Sparkman Bancshares, Inc.,
Sparkman, Arkansas
Trivoli Bancorp, Inc.,
Trivoli, Illinois
UB, Inc.,
Unadilla, Nebraska
White Eagle Financial Group,
Inc.,
Boca Raton, Florida
Worthen Banking Corporation,
Little Rock, Arkansas
Reserve
Bank
Bank(s)
SouthTrust of Florida,
Inc.,
Jacksonville, Florida
BMR Financial Group,
Inc.,
Atlanta, Georgia
SouthTrust of Florida,
Inc.,
Jacksonville, Florida
Cypress Banks, Inc.,
Wesley Chapel, Florida
Merchants and Planters
Bank,
Sparkman, Arkansas
Hanna City State Bank,
Hanna City, Illinois
The First National Bank,
Unadilla, Nebraska
Admiralty Bank,
Palm Beach Gardens,
Florida
FirstBank Group, Inc.,
Brinkley, Arkansas
Effective
Date
Atlanta
November 8, 1993
Atlanta
November 8, 1993
St. Louis
November 19, 1993
Chicago
November 10, 1993
Kansas City
October 21, 1993
Atlanta
October 29, 1993
St. Louis
October 29, 1993
Section 4
Applicant(s)
Fifth Third Bancorp,
Cincinnati, Ohio
First Sterling Bancorp, Inc.,
Sterling, Illinois
Gordon Management Co.,
Chicago, Illinois
Gordon Family Investment
Limited Partnership,
Chicago, Illinois
The Magnolia State Corporation,
Bay Springs, Mississippi
Nonbanking
Activity/Company
The TriState Bancorp,
Cincinnati, Ohio
D.D. Development of
Sterling Limited
Partnership,
Sterling, Illinois
CNBC Development
Corporation,
Chicago, Illinois
CNBC Leasing
Corporation,
Chicago, Illinois
CNBC Investment
Corporation,
Chicago, Illinois
Jones County Finance
Company,
Laurel, Mississippi
Reserve
Bank
Effective
Date
Cleveland
November 1, 1993
Chicago
November 16, 1993
Chicago
October 28, 1993
Atlanta
KansasCityNovember 17, 1993
A72 Federal Reserve Bulletin • January 1994
Section 4—Continued
Applicant(s)
Norwest Corporation,
Minneapolis, Minnesota
Princeton National Bancorp,
Inc.,
Princeton, Illinois
Nonbanking
Activity/Company
St. Cloud Metropolitan
Agency, Inc.,
St. Cloud, Minnesota
Heart of Illinois
Investment Corp.,
East Peoria, Illinois
Reserve
Bank
Effective
Date
Minneapolis
October 25, 1993
Chicago
November 19, 1993
Sections 3 and 4
Applicant(s)
Hallmark Capital Corp.,
West Allis, Wisconsin
National City Bancshares, Inc.
Evans ville, Indiana
Security Capital Corporation,
Milwaukee, Wisconsin
Signal Bancshares, Inc.,
West St. Paul, Minnesota
Union Planters Corporation,
Memphis, Tennessee
Nonbanking
Activity/Company
West Allis Savings Bank,
West Allis, Wisconsin
Lincolnland Bancorp,
Inc.,
Dale, Indiana
Ayer-Wagoner-Deal
Insurance Agency, Inc.,
Rockport, Indiana
Security Bank S.S.B.,
Milwaukee, Wisconsin
Goodhue County
Financial Corporation,
Red Wing, Minnesota
Mid-South Bancorp, Inc.,
Franklin, Kentucky
Simpson County Bank,
Franklin, Kentucky
Adairville Banking
Company,
Adairville, Kentucky
First Citizens Bank,
Franklin, Tennessee
Peoples Bank of Elk
Valley,
Fayetteville, Tennessee
General Trust Company,
Nashville, Tennessee
Reserve
Bank
Effective
Date
Chicago
November 3, 1993
St. Louis
November 2, 1993
Chicago
November 12, 1993
Minneapolis
October 29, 1993
St. Louis
November 15, 1993
Legal Developments
APPLICATIONS
APPROVED
UNDER BANK MERGER
73
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)
Centura Bank,
Rocky Mount, North Carolina
Chemical Bank & Trust
Company,
Midland, Michigan
Chemical Bank Bay Area,
Bay City, Michigan
Chemical Bank Michigan,
Clare, Michigan
Exchange Interim Bank,
Luckey, Ohio
Fayette Bank and Trust
Company,
Uniontown, Pennsylvania
Fifth Third Bank,
Cincinnati, Ohio
Jefferson Bank of Florida,
Miami Beach, Florida
OMNIBANK Arvada,
Arvada, Colorado
Robeson Interim Bank,
Lumberton, North Carolina
SouthTrust Bank
Florida,
St. Petersburg,
SouthTrust Bank
Florida,
St. Petersburg,
of West
Florida
of West
Florida
Reserve
Bank
Bank(s)
Effective
Date
First Charlotte Bank,
Charlotte, North
Carolina
Key State Bank,
Owosso, Michigan
Chemical Bank
Montcalm,
Stanton, Michigan
Richmond
November 12, 1993
Chicago
November 5, 1993
The Exchange Bank,
Luckey, Ohio
FirstSouth Savings Bank,
Uniontown,
Pennsylvania
First Financial Savings
Association, F.A.,
Cincinnati, Ohio
Jefferson National Bank
at Sunny Isles,
Miami Beach, Florida
Denver West Bank and
Trust,
Golden, Colorado
Centura Bank,
Rocky Mount, North
Carolina
AmeriBank,
Clearwater, Florida
Cleveland
October 28, 1993
Cleveland
November 1, 1993
Cleveland
November 1, 1993
Atlanta
October 28, 1993
Kansas City
November 19, 1993
Richmond
November 10, 1993
Atlanta
November 8, 1993
Atlanta
November 8, 1993
First National Bank of the
South,
Wesley Chapel, Florida
A74 Federal Reserve Bulletin • January 1994
PENDING CASES INVOLVING
GOVERNORS
THE BOARD OF
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
Board of Governors v. Oppegard, No. 93-3706 (8th
Cir., filed November 1, 1993). Appeal of district
court order holding appellant Oppegard in contempt
for failure to comply with prior order requiring
compliance with Board removal, prohibition, and
civil money penalty order.
Scott v. Board of Governors, No. 930905843CV (Dist.
Ct., Salt Lake County, Utah, filed October 8, 1993).
Action against Board and others for damages and
injunctive relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes.
Richardson v. Board of Governors, et al., No. 93-C
836A (D. Utah, filed August 30, 1993). Action
against Board and others for damages and injunctive
relief for alleged constitutional and statutory violations caused by issuance of Federal Reserve notes.
On September 20, 1993, the Board filed a motion to
dismiss.
Kubany v. Board of Governors, et al., No. 93-1428 (D.
D.C., filed July 9, 1993). Action challenging Board
determination under the Freedom of Information
Act. The Board's motion to dismiss was filed on
October 15, 1993.
Bennett v. Greenspan, No. 93-1813 (D. D.C., filed
April 20, 1993). Employment discrimination action.
Amann v. Prudential Home Mortgage Co., et al., No.
93-10320 WD (D. Massachusetts, filed February 12,
1993). Action for fraud and breach of contract
arising out of a home mortgage. On April 17, 1993,
the Board filed a motion to dismiss.
Adams v. Greenspan, No. 93-0167 (D. D.C., filed
January 27, 1993). Action by former employee
under the Civil Rights Act of 1964 and the Rehabilitation Act of 1973 concerning termination of
employment.
Sisti v. Board of Governors, No. 93-0033 (D. D.C.,
filed January 6, 1993). Challenge to Board staff
interpretation with respect to margin accounts.
The Board's motion to dismiss was granted on May
13, 1993. On June 3, 1993, the petitioner filed a
notice of appeal. On October 14, 1993, the Court of
Appeals granted the Board's motion for summary
affirmance.
U.S. Check v. Board of Governors, No. 92-2892 (D.
D.C., filed December 30, 1992). Challenge to partial
denial of request for information under the Freedom
of Information Act. Dismissed by stipulation on
November 9, 1993.
CBC, Inc. v. Board of Governors, No. 92-9572 (10th
Cir., filed December 2, 1992). Petition for review of
civil money penalty assessment against a bank holding company and three of its officers and directors
for failure to comply with reporting requirements.
Oral argument was held November 8, 1993.
DLG Financial Corporation v. Board of Governors,
No. 392 Civ. 2086-G (N.D. Texas, filed October 9,
1992). Action to enjoin the Board and the Federal
Reserve Bank of Dallas from taking certain enforcement actions, and seeking money damages on
a variety of tort and contract theories. On October
9, 1992, the court denied plaintiffs' motion for a
temporary restraining order. On March 30, 1993,
the court granted the Board's motion to dismiss
as to it, and also dismissed certain claims against
the Reserve Bank. On April 29, the plaintiffs filed
an amended complaint. The Board's motion to
dismiss the amended complaint was filed on
May 17.
Zemel v. Board of Governors, No. 92-1056 (D. D.C.,
filed May 4, 1992). Age Discrimination in Employment Act case. The parties' cross-motions for summary judgment are pending.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
FINAL ENFORCEMENT DECISION ISSUED BY THE
BOARD OF GOVERNORS
In the Matter of
Agha Hasan Abedi and
Swaleh Naqvi
Institution-Affiliated Parties of
BCCI
Holdingsand
(Luxembourg)
S.A., and
Luxembourg,
the Bank of Credit
Commerce International S.A., (Luxembourg)
Docket Nos. 91-037-E-I2, 91-037-E-I3,
91-043-E-I1, 91-043-E-I2
Legal Developments
Final Decision
This Final Decision resolves administrative enforcement proceedings brought under the authority of the
Federal Deposit Insurance Act ("FDI Act") and the
Bank Holding Company Act ("BHC Act") by the
Board of Governors of the Federal Reserve System
("the Board") against Agha Hasan Abedi and Swaleh
Naqvi, two of a number of individual respondents
against whom the Board initiated enforcement proceedings as a result of their activities as institutionaffiliated parties of BCCI Holdings (Luxembourg)
S.A., Luxembourg ("BCCI Holdings"), and the Bank
of Credit and Commerce International S.A., Luxembourg ("BCCI S.A.") (collectively, "BCCI").
The Notice that initiated the proceeding alleged
that Abedi, as the president and founder of the BCCI
organization, and Naqvi, a principal officer of
BCCI, caused, brought about, or participated in
BCCI's acquisition of ownership and control of certain percentages of the voting shares of various
financial institutions without the necessary approval
of the Board, in violation of the BHC Act and of
the Board's Regulation Y. The Notice further alleged
that the Respondents' conduct fulfilled all of the
requirements necessary to the Board's issue of an
order of prohibition forbidding Abedi and Naqvi
from participating in any manner in the affairs of
an insured depository institution without the approval of appropriate supervisory agencies. A
subsequently-issued Amended Notice of Intent to
Prohibit alleged additional grounds for the Respondents' prohibition.
The proceeding comes to the Board in the form of a
Presiding Judge's Order of Default and Recommended
Decision ("Default Decision") by Administrative Law
Judge Walter J. Alprin (the "ALJ") issued on July 29,
1993. In that Default Decision, the ALJ found that
each of the Respondents had been effectively served
with notices of the charges against them by the Board,
and that each had defaulted by failing to file an answer
to the charges. Upon finding Abedi and Naqvi in
default, the ALJ, as procedurally required, referred to
the Board a Recommended Decision containing the
findings and relief sought in the notices that initiated
the proceedings.
Neither of the Respondents has contested the
Default Decision. The only issue before the Board
is whether the uncontested record shows that the
procedural prerequisites for a final order on default
have been satisfied. Upon review of the record, the
Board concludes that Board Enforcement Counsel
complied with the statutory and regulatory requirements for effective service, that Abedi and Naqvi did
75
not respond to the charges as required, and that
the ALJ properly found that no good cause had been
shown to excuse the Respondents from a ruling by
default. In this Final Decision on Default as to Abedi
and Naqvi, the Board accordingly adopts the ALJ's
Default Decision, and orders that the attached Order
of Prohibition be issued against Abedi and Naqvi.
I. Statement of the Case
A. Statutory and Regulatory Framework
The Board's regulations governing administrative
hearings specify that if a respondent does not file an
answer within 20 days of service of the notice, the
respondent is deemed to have waived the right to
appear and contest the allegations in the notice.
12 C.F.R. 263.19(c)(1). Upon motion by enforcement counsel for entry of an order of default, and a
finding by the administrative law judge that "no good
cause has been shown for failure to file a timely
answer", the regulations direct the administrative
law judge to file with the Board a recommended
decision containing the findings and relief sought in
the notice. 12 C.F.R. 263.19(c)(1).i
The FDI Act provides that any service required or
authorized to be made by the Board under that Act
may be made by registered mail, or "in such other
manner reasonably calculated to give actual notice as
the agency may by regulation or otherwise provide."
12 U.S.C. § 1818(1). The Board's regulations provide
that service of a notice may be accomplished by any
of a number of methods: by personal service, by
delivery to a person of suitable age and discretion at
the party's residence, by registered or certified mail
addressed to the party's last known address, or by
"any other method reasonably calculated to give
actual notice." 12 C.F.R. 263.11(c)(2).
1. The Board amended its procedural rules on August 15, 1991,
during the course of this proceeding. The default provisions, however,
remained substantively unchanged. Prior to the adoption of the
current Uniform Rules of Practice and Procedure, the Board's applicable Rules of Practice for Hearings provided that:
Failure of a party to file an answer required by this section within
the time provided shall constitute a waiver of his right to appear and
contest the allegations of the notice of hearing and shall constitute
authorization for the presiding officer, without further notice to the
party, to find the facts to be as alleged in the notice and to file with
the Secretary a recommended decision containing such findings and
appropriate conclusions. 12 C.F.R. 263.5(d) (1991).
A76 Federal Reserve Bulletin • January 1994
B. Procedural History
The record before the Board reflects the following
short procedural history in the administrative proceedings regarding Respondents Abedi and Naqvi. 2
1. Prohibition Notice. On July 29, 1991, the Board
instituted formal enforcement proceedings against Respondents Abedi and Naqvi, among other individuals,
with the issuance of a Notice of Intent to Prohibit, (the
"July 29 Notice"). The requested remedy of a prohibition order was predicated on allegations that Abedi
and Naqvi had participated in BCCI's illegal and
secret acquisition of the First American banking organization and other financial institutions in violation of
the BHC Act and Regulation Y. July 29 Notice 1f 223.
On September 13th, 1991, the Board issued an
Amended Notice of Intent to Prohibit (the "September
13 Notice") against Respondents Abedi and Naqvi,
among other individuals, alleging additional grounds
for their prohibition. September 13 Notice 1111 30, 33,
35, 42-44, 45-47.
Both Notices expressly warned of the consequences
of default by the Respondents. The Notices stated that
each Respondent was required to file an answer to the
charges within 20 days of the service of the amended
Notice upon him, and that failure to file an answer
would constitute a waiver of his right to appear and
contest the allegations in a hearing. July 29 Notice f
261; September 13 Notice f 61.
2. Service of the Notices. The methods of service of
the Notices employed by Board Enforcement Counsel
were stated in the Declaration of Herbert A. Biern
("Declaration") attached as Exhibit A to the Default
Motion.
On August 14, 1991, Board Enforcement Counsel
sent the July 29 Notice by international registered
mail, return receipt requested, to Naqvi's last known
address in Abu Dhabi. On September 12, 1991, Board
Enforcement Counsel received an executed acknowledgement of the return receipt of that mailing. Declaration H 4. In addition, through the intermediation of
the United States Department of State and the Ministry of Foreign Affairs of the United Arab Emirates in
Abu Dhabi, Naqvi was personally served with the July
29 Notice on December 17, 1991.3 Declaration 11 5-6.
2. The record before the Board was certified by the ALJ to
constitute the entire record relating to Respondents Abedi and Naqvi.
It consists of: the Notices issued by the Board on July 29, 1991 and
September 13, 1991; Board Enforcement Counsel's Motion for Entry
of an Order of Default as to Respondents Naqvi and Abedi, ("Motion
for Default") with supporting exhibits, dated March 27, 1992; and the
ALJ's Default Decision, issued on July 29, 1993. Because the record
contains no responsive pleadings or exceptions to the ALJ's Default
Decision, the facts set forth are uncontested.
3. Evidence of the personal service on Naqvi is contained in
attachments to the Declaration consisting of a handwritten acknow-
On September 13, 1991, the September 13 Notice was
sent by the Board by international registered mail,
return receipt requested, to Naqvi's last known address in Abu Dhabi. Declaration f 7. 4
Both the July 29 Notice and the September 13
Notice were sent to Abedi at an address in Karachi,
Pakistan identified by the United States Acting Consul
General in Karachi. Declaration 11 8. The Declaration
does not indicate that the acknowledgment receipt was
executed or returned by Abedi.
3. Recommended Decision of Default. On March 27,
1992, Board Enforcement Counsel filed with the ALJ a
Motion for an Order of Default, citing the failure of the
Respondents to respond to the Notices. On July 29,
1993, the ALJ granted Board Enforcement Counsel's
motion, entered the Default Decision, including Recommended Findings of Fact and Conclusions of Law,
and referred the record of the proceeding to the Board
for Final Decision. The ALJ expressly found that
satisfactory service had been made as to both Naqvi
and Abedi, and that neither had shown good cause to
excuse his failure to respond to the Notices. 5 Default
Decision at 4.
II. Discussion
In the circumstances here under review, it is clear that
the prerequisites to default established by statute and
regulation have been satisfied. Board Enforcement
Counsel's use of international registered mail as a
method of service is encompassed within the authorization in the FDI Act and the Board's regulations of
"registered mail" as a method of service. 12 U.S.C.
§ 1818(1); 12 C.F.R. 263.11(c)(2)(iii).* With respect to
Naqvi, Board Enforcement Counsel took the additional step of arranging for personal service of the July
29 Notice, evidenced by Naqvi's written acknowl-
edgment by Naqvi, its translation, and a certification from a United
States Consular Officer in Abu Dhabi.
4. In addition, service was made on August 1, 1991, upon counsel
for Naqvi in Washington, D.C. by certified mail, return receipt
requested. Declaration f 3. After initially accepting service of the
Notice, Naqvi's counsel returned the notice to the Board with a letter
indicating that he was not authorized to accept service of the Notice
on behalf of Naqvi. Id.; Declaration Exhibit 3.
5. The ALJ served a copy of the Default Decision on Naqvi and
Abedi on July 29, 1993 by international registered mail, return receipt
requested. The Board has received no exceptions to the Default
Decision from either Respondent.
6. The Board believes that the term "registered mail" includes
international registered mail for purposes of the authorization in the
FDI Act and the Board's regulations. In any event, the Board finds
that the use of international registered mail in these circumstances also
represents the use of a method "reasonably calculated to give actual
notice" to a respondent, which is also authorized by the FDI Act
and the Board's regulations. 12 U.S.C. § 1818(1); 12 C.F.R.
263.11(c)(2)(iv).
Legal Developments
edgement that he received the Notice. 7 With respect to
Abedi, the Board adopts the ALJ's conclusion that the
use of international registered mail, return receipt
requested, constituted in these circumstances an effective method of service. 8
The ALJ did not find that any "good cause" or
indeed any cause at all had been shown for failure to
file an answer. Default Decision at 4. Nor has either of
the Respondents filed exceptions to the Default Decision. In these circumstances, no good cause has been
shown to excuse the default, and the Board adopts the
ALJ's recommended conclusion as to the default
pursuant to 12 C.F.R. 263.19(c)(1).
Conclusion
For the foregoing reasons, the Board adopts the ALJ's
recommended findings and conclusions as its Final
Findings of Fact and Conclusions of Law, and orders
the issuance of the attached Order of Prohibition.
Board of Governors of the
Federal Reserve System
WILLIAM W . WILES
77
section 8(e)(7)(B) of the Act (12 U.S.C.
§ 1818(e)(7)(B)), AGHA HASAN ABEDI and
SWALEH NAQVI are hereby prohibited:
(a) From participating in the conduct of the affairs
of any bank holding company, any insured depository institution or any other institution specified
in subsection 8(e)(7)(A) of the Act (12 U.S.C.
§ 1818(e)(7)(A));
(b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote
any proxy, consent, or authorization with respect
to any voting rights in any institution described in
subsection 8(e)(7)(A) of the Act (12 U.S.C.
§ 1818(e)(7)(A));
(c) From violating any voting agreement previously approved by the appropriate Federal banking agency; or
(d) From voting for a director, or from serving or
acting as an institution-affiliated party as defined
in section 3(u) of the Act, (12 U.S.C. § 1813(u)),
such as an officer, director, or employee.
2. This Order, and each provision hereof, is and
shall remain fully effective and enforceable until
expressly stayed, modified, terminated or suspended in writing by the Board.
Secretary of the Board
Order of Prohibition
WHEREAS, pursuant to section 8(e) of the Federal
Deposit Insurance Act, as amended, (the "Act")
(12 U.S.C. § 1818(e)), the Board of Governors of the
Federal Reserve System ("the Board") is of the opinion, for the reasons set forth in the accompanying
Final Decision, that a final Order of Prohibition should
issue against AGHA HASAN ABEDI and SWALEH
NAQVI;
NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to sections 8(b)(3), 8(e), and 8(j) of
the Act, (12 U.S.C. §§ 1818(b)(3), 1818(e) and 1818(j)),
that:
1. In the absence of prior written approval by the
Board, and by any other Federal financial institution
regulatory agency where necessary pursuant to
7. The ALJ did not rely upon the attempt to effect service upon
Naqvi's counsel as a basis for the default. Default Decision at 3 n.l.
The Board similarly does not reach the issue of the effectiveness of
that service.
8. This conclusion is supported by the Convention on the Service
Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters and its accompanying notes, appended to Federal Rule of
Civil Procedure 4. The notes indicate that Pakistan opposes the
service of judicial documents upon a Pakistani national residing in
Pakistan through diplomatic channels, but that it has no objection to
such service by postal channels directly to the persons concerned. See
Fed. R. Civ. P. 4 n.l7a.
This Order shall become effective upon the expiration of thirty days after service is made.
By Order of the Board of Governors, this second
day of November, 1993.
Board of Governors of the
Federal Reserve System
WILLIAM W . WILES
Secretary of the Board
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
American Express Bank International
New York, New York
The Federal Reserve Board announced on November 1, 1993, the issuance of an Order of Assessment of
a Civil Money Penalty and a Cease and Desist Order
against the American Express Bank International,
New York, New York.
William H. Kandt
Colorado Springs, Colorado
The Federal Reserve Board announced on November 3, 1993, the issuance of an Order of Assessment of
A78 Federal Reserve Bulletin • January 1994
a Civil Money Penalty against William H. Kandt,
former president and a former director of the State
Bank & Trust of Colorado Springs, Colorado Springs,
Colorado.
WRITTEN AGREEMENTS
RESERVE
BANKS
APPROVED BY
FEDERAL
between the Federal Reserve Bank of Kansas City and
Liberty Agency, Inc., Kirk, Colorado.
Ramapo Financial Corporation
Wayne, New Jersey
Constitution Bancorp, Inc.
Philadelphia, Pennsylvania
The Federal Reserve Board announced on November 30, 1993, the execution of a Written Agreement
between the Federal Reserve Bank of New York and
Ramapo Financial Corporation, Wayne, New Jersey.
The Federal Reserve Board announced on November 29, 1993, the execution of a Written Agreement
between the Federal Reserve Bank of Philadelphia and
Constitution Bancorp, Inc., Philadelphia, Pennsylvania, a bank holding company, and its subsidiary bank,
the Constitution Bank, Philadelphia, Pennsylvania.
Gary D. Sexton
Houston, Texas
Liberty Agency, Inc.
Kirk, Colorado
The Federal Reserve Board announced on November 29, 1993, the execution of a Written Agreement
The Federal Reserve Board announced on November 8, 1993, the execution of a Written Agreement
between the Federal Reserve Bank of Dallas and
Gary D. Sexton, the sole director and officer and a
principal shareholder of Fidelity Bancorp, Inc.,
Houston, Texas, the parent bank holding company of
the former Fidelity National Bank, Houston, Texas.
A1
Financial and Business Statistics
CONTENTS
A3
WEEKLY REPORTING COMMERCIAL
Guide to Tabular
Domestic
Financial
Presentation
Statistics
BANKS
Assets and liabilities
A22 Large reporting banks
A24 Branches and agencies of foreign banks
MONEY STOCK AND BANK CREDIT
FINANCIAL
A4
A25 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A26 Interest rates—money and capital markets
All Stock market—Selected statistics
A5
A6
A7
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
MARKETS
FEDERAL FINANCE
POLICY
INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
MONETARY AND CREDIT
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A17 Bank debits and deposit turnover
A18 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A19 Major nondeposit funds
A20 Assets and liabilities, Wednesday figures
A28
A29
A30
A30
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—Tax-exempt state and local
governments and corporations
A35 Open-end investment companies—Net sales
and assets
A3 5 Corporate profits and their distribution
A35 Nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
A2
Federal Reserve Bulletin • January 1994
Domestic Financial Statistics—Continued
REAL ESTATE
A37 Mortgage markets
A3 8 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A39 Total outstanding
A3 9 Terms
FLOW OF FUNDS
A40
A42
A43
A44
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Domestic Nonfinancial Statistics
A54 U.S. reserve assets
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS
IN THE UNITED STATES
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BYNONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
SELECTED
MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
International Statistics
RATES
SUMMARY STATISTICS
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A69 Guide to Statistical Releases and
Special Tables
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
Corrected
Estimated
Not available
Not elsewhere classified
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
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
GENERAL
INFORMATION
*
0
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
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
SMSA
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Standard metropolitan statistical area
Veterans Administration
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A4
1.10
DomesticNonfinancialStatistics • January 1994
RESERVES, M O N E Y STOCK, LIQUID ASSETS, A N D DEBT
MEASURES
Percent annual rate of change, seasonally adjusted 1
1992
1993
1993
Monetary or credit aggregate
Q4
Q3r
June
Aug.
Sept. r
9.4
5.7
8.1
9.5
9.7
12.8
7.5
11.5
16.6
14.0
15.2
15.1
20.3
20.4
23.3
8.0
13.3rr
1.8
-.8r
— .5r
5.3r
io. rr
1.6
.8
3.4r
s.r
13.6
3.9
3.4
-1.6
4.4
10.4
.7
2.0
n.a.
n.a.
July
Oct.
institutions2
1
2
3
4
Reserves of depository
Total
Required
Nonborrowed
Monetary base
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
Sontrqnsaction
10 In M2 . . . j
11 In M3 only6
Q2
Q1
25.8
25.3
27.1
12.6
9.3
8.7
9.5
9.1
10.8
12.4
10.6
9.8
12.4
12.3
10.9
11.4
5.1
7.0
3.8
10.9
16.8
2.6
-.4
1.4
4.3
6.5
-1.9
-3.9?r
-2.4
3.8
10.5
2.2
2.3r
3.3r
4.6
12.9
3.1
1.2
1.6
5.3
7.2
2.5
— ,2r
,5r
6.2
-3.0
-15.0
-5.4
-14.0"
-1.3 r
3.3r
-1.2
-9.1
.4
-14.5 r
-3.2
-14.9"
-2.2 r
—3.5r
-.5
.6
-3.7
8.8
components
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time
Large time8,
Thrift institutions
15 Savings, iircluding MMDAs
16 Small time
17 Large time8,
12.9
-17.2
-20.0
1.6
-7.9
-20.0
4.6
-7.9
.2
5.3
-10.7
-8.9
6.4
-10.2
-12.1
.8
-12.0
-19.1
6.9
-11.2 r
2.7r
5.1
-8.5
-7.5
.9
-9.6
4.0
8.7
-23.1
-10.8
-.2
-18.6
-15.5
.8
-10.5
-10.1
2.9
-12.6
-6.8
2.8
-12.3
-9.3
2.2
-14.9
—l.y
1.7
— 11.5r
-9.4
1.1
-13.4
-1.9
-.3
-12.5
.0
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
-4.2
-19.4
-10.2
-14.1
-.7
.5
-.6
-12.6
-.7
-27.8
-I.I
-18.8
-5.7
-10.5
-6.8
5.0
2.2
15.5
6.7
3.5
7.6
2.5
10.4
2.5
9.2
3.9
12.2
4.1
7.4
4.5 r
12
13
14
4
Debt components
20 Federal
21 Nonfederal
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, 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) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
9.1
3.7r
7.0
3.5
n.a.
n.a.
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bainkers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fiind balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government and foreign banks and official
institutions.
Money Stock and Bank Credit
A5
1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
Factor
Average of
daily figures
Average of daily figures for week ending on date indicated
1993
1993
Aug.
Sept.
356,229
363,813
314,668
4,033
Oct.
Sept. 15
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
362,735
361,001
366,625r
366,655r
362,931
362,813
363,886
363,336
320,040
4,891
320,632
2,759
320,041
2,832
320,653
6,567
320,456
7,284
320,849
2,457
320,883
2,291
320,567
3,695
321,263
2,621
4,936
207
0
4,835
539
0
4,782
390
0
4,839
416
0
4,839
671
0
4,824
570
0
4,804
605
0
4,803
316
0
4,795
535
0
4,754
323
0
119
235
0
434
31,597
273
236
0
366r
32,633r
11
1%
0
611
33,354
4
227
0
341
32,301
126
234
0
425r
33,W
22
259
0
-1T
33,255r
386
226
0
747
32,857
10
218
0
756
33,537
19
202
0
521
33,553
12
176
0
584
33,602
11,057
8,018
21,780
11,056
8,018
21,839r
11,056
8,018
21,898
11,056
8,018
21,833r
11,056
8,018
21,846r
11,056
8,018
21,859r
11,056
8,018
21,871
11,056
8,018
21,885
11,056
8,018
21,899
11,056
8,018
21,913
348,213
385
351,130"
378
353,183
385
352,122r
377
350,867r
374
350,363r
377
351,766
385
353,925
387
354,077
387
352,887
383
SUPPLYING RESERVE FUNDS
1
2
3
4
5
6
7
8
9
10
11
Reserve Bank credit outstanding
U.S. government securities
Bought outright—System account
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account ..
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
5,764
230
9,633
230
5,512
288
5,117
276
16,981
181
10,104
209
7,518
238
5,179
209
5,755
272
5,130
406
6,097
281
6,117
329
6,258
298
6,102
319
6,082
336
6,169
334
6,105
309
6,217
292
6,288
303
6,351
268
9,423
9,640
9,537
9,548
9,448
9,565
9,744
9,682
9,480
9,552
26,691
27,269
28,246
28,047
23,276r
30,467r
27,812
27,881
28,298
29,345
Oct. 13
Oct. 20
Oct. 27
End-of-month figures
Aug.
Sept.
359,057
369,447r
316,985
4,790
Wednesday figures
Oct.
Sept. 15
Sept. 22
Sept. 29
Oct. 6
360,154
363,513
385,118r
366,585r
360,656
363,156
364,361
361,789
319,357
6,296
317,961
3,592
320,070
3,601
320,287
22,036
319,344
7,594
322,590
50
322,978
325
320,527
3,595
321,903
691
4,839
70
0
4,804
2,146
0
4,734
449
0
4,839
1,866
0
4,839
1,506
'0
4,804
1,621
0
4,804
140
0
4,799
31
0
4,769
338
0
4,734
317
0
7
229
0
720
31,417
2,680
239
0
901rr
33,024
7
138
0
398
32,874
10
231
0
375
32,520
74
248
0
1,119"
35,009"
7
262
0
—444r
33,39r
2
214
0
-18
32,873
4
210
0
1,591
33,218
86
187
0
1,371
33,488
10
170
0
255
33,709
11,057
8,018
21,808
11,057
8,018
21,871r
11,056
8,018
21,927
11,056
8,018
21,833r
11,056
8,018
21,846r
11,057
8,018
21,859r
11,056
8,018
21,871
11,056
8,018
21,885
11,056
8,018
21,899
11,055
8,018
21,913
349,169
383
351,530""
384
352,815
379
351,735r
373
350,647r
376
350,85 l r
384
352,689
387
354,609
388
353,651
384
352,939
379
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6 Acceptances
Loans to depository institutions
Adjustment credit
7
Seasonal credit
8
Extended credit
9
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account ..
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
7,975
187
17,289
501
6,032
390
5,974
444
26,895
211
11,438
294
6,032
190
5,234
309
4,879
272
5,030
484
6,117
272
6,105r
306
6,342
325
6,102
353
6,082
333
6,169
348
6,105
297
6,217
283
6,288
285
6,351
279
10,164
9,687
8,879
9,306
9,383
9,400
9,575
9,358
9,291
9,380
25,673
24,591r
25,994
30,133
32,113r
28,634r
26,325
27,717
30,285
27,934
1. For amounts of cash held as reserves, see table 1.12.
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. Excludes required clearing balances and adjustments to compensate for
float,
A6
DomesticNonfinancialStatistics • January 1994
1.12
RESERVES A N D BORROWINGS
D e p o s i t o r y Institutions 1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1 Reserve balances with Reserve Banks
2 Total vault cash
3 Applied vault cash 5
4 Surplus vault cash
5 Total reserves
6 Required reserves
7 Excess reserve balances at Reserve Banks ...
8 Total borrowings at Reserve Banks8
9 Seasonal borrowings
10 Extended credit9
1990
1991
1992
1993
Dec.
Dec.
Dec.
Apr.
May
June
July
Aug.
Sept.
Oct.
30,237
31,789
28,884
2,905
59,120
57,456
1,664
326
76
23
26,659
32,510
28,872
3,638
55,532
54,553
979
192
38
1
25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1
26,975
32,721
29,567
3,154
56,541
55,445
1,096
73
41
0
25,968
33,462
30,133
3,329
56,101
55,104
996
121
84
0
26,462
34,106
30,776
3,330
57,238
56,328
911
181
142
0
26,562
34,535
31,189
3,347
57,750
56,661
1,089
244
210
0
26,564
34,516
31,203
3,313
57,767
56,815
952
352
234
0
27,274r
35,217
31,863
3,355
59,136rr
58,046r
l,090
428
236
0
28,309
35,202
31,739
3,463
60,049
58,949
1,100
285
192
0
Biweekly averages of daily figures for weeks ending on date indicated
1993
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash3
Applied vault cash
Surplus vault cash
Total reserves6
Required reserves
i ...
Excess reserve balances at Reserve Banks . . .
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit9
July 7
July 21
Aug. 4
Aug. 18
Sept. 1
Sept. 15
Sept. 29
Oct. 13r
Oct. 27
Nov. 10
26,579
34,385
31,032
3,354
57,610
56,311
1,299
311
190
0
27,489
34,026
30,772
3,255
58,261
57,294
967
220
211
0
25,251
35,354
31,883
3,471
57,133
56,021
1,112
232
222
0
26,939
34,869
31,483
3,386
58,422
57,673
750
431
227
0
26,564
33,879
30,693
3,187
57,257
56,136
1,121
305
246
0
27,719
35,332
31,999
3,333
59,718
58,845
874
544
226
0
26,837r
35,157
31,781
3,377
58,618rr
57,318
UOC
321
247
0
27,843
35,805
32,278
3,527
60,121
58,985
1,137
420
222
0
28,822
34,338
30,946
3,393
59,768
58,690
1,078
205
189
0
28,029
36,266
32,765
3,501
60,794
59,739
1,055
132
105
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.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet "as-of' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. The maintenance period for weekly
reporters ends sixteen days after the lagged computation period during which the
vault cash is held. Before Nov. 25,1992, the maintenance period ended thirty days
after the lagged computation period.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"
institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. 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 impact of extended credit is similar to that of nonborrowed
reserves.
Money Stock and Bank Credit
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
A7
Large Banks1
Millions of dollars, averages of daily figures
1993, week ending Monday
Source and maturity
1
2
3
4
5
6
7
8
Federal funds purchased, repurchase agreements, and
other selected borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Oct. 25
71,269
12,539r
78,371
12,673r
78,121
12,229"^
71,293
12,608r
69,004
13,266r
72,908
13,588
77,541
14,502
76,497
14,362
70,801
14,259
14,103
25,095
15,563
23,077
17,201
22,806
16,123
22,381
17,454
24,744
21,325
22,557
17,756
25,149
21,280
22,806
20,664
22,706
13,481
41,795
16,211
40,350
17,836
40,442
16,939
42,366
16,829
44,700
17,805
40,212
15,768
40,637
18,981
42,465
16,601
43,950
29,013
14,833
30,159
15,095
29,925
15,293
30,865
15,520
31,152
16,278
31,597
14,326
30,438
14,497
30,392
14,436
31,787
14,084
38,110
28,986
45,295
28,858
41,258
27,828
42,051
30,603
39,579
27,736
45,766
27,347
40,813
25,316
41,543
27,214
38,232
27,450
MEMO
Federal funds loans and resale agreements in
immediately available funds in maturities of one day or
under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.
A8
1.14
DomesticNonfinancialStatistics • January 1994
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit1
Federal Reserve
Bank
Seasonal credit 2
Extended credit 3
On
12/9/93
Effective date
Previous rate
On
12/9/93
Effective date
Previous rate
On
12/9/93
Effective date
Previous rate
3
7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92
3.5
3.20
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
3.15
3.70
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
3.65
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92
3
3.5
3.20
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
3.15
3.70
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
12/9/93
3.65
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
9
20
11
12
3
10
21
22
16
20
1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980—-Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5
Range (or
level)—
All F.R.
Banks
6
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
10
10-10.5
10.5
10.5-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13
F.R.
Bank
of
N.Y.
6
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
Effective
1981-—May
5
Nov. ?
6
Dec. 4
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
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. 71
76
Dec. 74
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985-—May
—May 70
74
7.5-8
7.5
7.5
7.5
1986-- M a r . 7
10
Apr. 71
July 11
7-7.5
7
6.5-7
6
7
7
6.5
6
1982--July
-July 70
73
Aug. 7
3
16
77
30
Oct. 1?
13
Nov. 77
76
Dec. 14
IS
17
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1986—Aug. 21
22
5.5-6
5.5
5.5
5.5
1987—Sept. 4
11
5.5-6
6
6
6
1988—Aug. 9
11
6-6.5
6.5
6.5
6.5
1989—Feb. 24
27
6.5-7
7
7
7
Effective date
1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Nov.
1984-—Apr.
—Apr.
Dec.
1992—July
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
3
3
3
3
In effect Dec. 9, 1993
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 on 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
Range (or
level)—
All F.R.
Banks
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 on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. 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.
Policy Instruments
1.15
RESERVE REQUIREMENTS OF DEPOSITORY
A9
INSTITUTIONS1
Requirement
Type of deposit2
Net transaction accounts3
1 $0 million-$51.9 million
2 More than $51.9 million4
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge Act corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 21, 1993, the exemption was raised from $3.8
million to $4.0 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Include all deposits against which the account holder is permitted to make
withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of three per month
for the purpose of making payments to third persons or others. However, money
market deposit accounts (MMDAs) and similar accounts subject to the rules that
Percentage of
deposits
Effective date
3
10
12/21/93
12/21/93
0
12/27/90
0
12/27/90
permit no more than six preauthorized, automatic, or other transfers per month,
of which no more than three may be checks, are not transaction accounts (such
accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 21,
1993, for institutions reporting quarterly and weekly, the amount was increased
from $46.8 million to $51.9 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on Apr.
2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions
that report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to 1V5 percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of IVi years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than \ Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as was the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1 Vi years (see note 4).
A10
1.17
DomesticNonfinancialStatistics • January 1994
TRANSACTIONS1
FEDERAL RESERVE OPEN MARKET
Millions of dollars
1993
Type of transaction
and maturity
1990
1991
1992
Mar.
Apr.
May
June
July
Aug.
Sept.
U . S . TREASURY SECURITIES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
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
24,739
7,291
241,086
4,400
20,158
120
277,314
1,000
14,714
1,628
308,699
1,600
0
0
23,796
0
121
0
30,124
0
349
0
26,610
0
7,280
0
24,821
0
0
0
35,943
0
902
0
27,775
0
366
0
31,128
0
425
0
25,638
-27,424
0
3,043
0
24,454
-28,090
1,000
1,0%
0
36,662
-30,543
0
279
0
4,303
-2,602
0
244
0
1,950
-1,100
0
0
0
4,108
-4,013
0
0
0
4,002
-2,152
0
0
0
0
0
0
100
0
1,497
-5,491
0
411
0
3,074
-1,861
0
250
200
-21,770
25,410
6,583
0
-21,211
24,594
13,118
0
-34,478
25,811
1,441
0
-4,303
2,602
2,490
0
-1,630
800
0
0
-3,652
3,245
0
0
-4,002
2,152
200
0
666
0
1,100
0
-834
3,866
2,400
0
-3,074
1,861
0
100
-2,186
789
2,818
0
0
-2,037
2,894
-1,915
3,532
716
0
0
0
1,147
0
-320
300
0
0
-333
468
0
0
0
0
0
0
-666
0
500
0
-432
1,100
797
0
0
0
2,333
1,280
0
0
375
0
0
-1,681
1,226
-1,209
600
-269
1,200
705
0
0
0
1,110
0
0
0
0
0
-123
300
0
0
0
0
0
0
0
0
100
0
-231
525
717
0
0
0
25,414
7,591
4,400
31,439
120
1,000
34,079
1,628
1,600
3,141
0
0
5,111
0
0
349
0
0
7,280
0
0
200
0
0
2,702
0
0
4,691
0
0
1,369,052
1,363,434
1,570,456
1,571,534
1,482,467
1,480,140
146,563
143,049
127,115
128,924
124,462
123,227
111,726
113,095
115,504
117,074
136,037
135,705
124,898
122,578
219,632
202,551
310,084
311,752
378,374
386,257
37,815
33,714
30,197
36,953
33,987
28,640
53,051
43,342
41,190
56,246
53,053
48,263
62,905
61,399
24,886
29,729
20,642
3,728
163
4,461
18,357
-13,286
7,160
3,878
0
0
0
5
292
0
0
0
0
0
0
0
0
0
183
632
101
28
41
22
366
0
0
125
0
0
35
41,836
40,461
22,807
23,595
14,565
14,486
1,811
1,519
197
764
2,105
2,105
2,968
2,019
3,479
4,428
2,485
2,415
9,810
7,734
35 Net change in federal agency obligations
1,192
-1,085
-554
191
-595
-41
927
-1,315
-55
2,041
36 Total net change in System Open Market
Account
26,078
28,644
20,089
3,918
-431
4,420
19,284
-14,601
7,105
5,919
22
23
24
Matched transactions
25 Gross sales
26 Gross purchases
Repurchase agreements
27 Gross purchases
28 Gross sales
29 Net change in U.S. Treasury securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings.
0
0
0
Federal Reserve Banks
1.18
FEDERAL RESERVE BANKS
All
Condition and Federal Reserve N o t e Statements1
Millions of dollars
Account
Sept. 29
Oct. 6
Wednesday
End of month
1993
1993
Oct. 13
Oct. 20
Oct. 27
Aug. 31
Sept. 30
Oct. 31
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
11,057
8,018
378
11,056
8,018
390
11,056
8,018
393
11,056
8,018
405
11,055
8,018
401
11,057
8,018
382
11,057
8,018
378
11,056
8,018
406
268
0
0
216
0
0
214
0
0
273
0
0
180
0
0
236
0
0
2,918
0
0
145
0
0
4,804
1,621
4,804
140
4,799
31
4,769
338
4,734
317
4,839
70
4,804
2,146
4,734
449
326,938
322,640
323,303
324,122
322,594
321,775
325,653
321,553
10 Bought outright2
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements
319,344
152,069
128,497
38,778
7,594
322,590
155,216
128,597
38,778
50
322,978
155,603
128,597
38,778
325
320,527
153,621
128,128
38,778
3,595
321,903
154,997
128,128
38,778
691
316,985
153,936
125,211
37,838
4,790
319,357
151,982
128,597
38,778
6,296
317,961
151,055
128,128
38,778
3,592
15 Total loans and securities
333,632
327,801
328,347
329,502
327,825
326,920
335,521
326,882
5,001
1,047
6,369
1,048
9,976
1,048
6,407
1,048
5,517
1,048
7,560
1,044
4,349
1,047
5,052
1,048
23,011
9,379
23,277
8,531
23,294
8,917
23,310
9,139
23,324
9,393
22,899
7,485
23,272
8,771
22,580
9,229
391,523
386,490
391,049
388,887
386,581
385,364
392,412
384,270
9 Total U.S. Treasury securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other 4
20 Total assets
LIABILITIES
21 Federal Reserve notes
329,755
331,595
333,505
332,541
331,806
328,125
330,421
331,672
22 Total deposits
47,535
39,578
40,031
41,595
40,367
40,368
48,030
39,169
23
24
25
26
35,455
11,438
294
348
33,058
6,032
190
297
34,205
5,234
309
283
36,160
4,879
272
285
34,574
5,030
484
279
31,931
7,975
187
272
29,934
17,289
501
306
32,422
6,032
390
325
4,833
2,418
5,742
2,372
8,155
2,349
5,459
2,302
5,029
2,397
6,707
2,408
4,275
2,460
4,550
2,482
384,541
379,288
384,040
381,898
379,598
377,608
385,186
377,872
3,331
3,054
598
3,332
3,054
817
3,333
3,054
623
3,333
3,054
602
3,335
3,054
594
3,317
3,054
1,385
3,331
3,054
842
3,338
2,984
75
391,523
386,490
391,049
388,887
386,581
385,364
392,412
384,270
332,545
331,132
325,914
327,016
334,033
332,238
330,479
333,735
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
MEMO
34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Banks)
36 LESS: Held by Federal Reserve Banks
37 Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net:
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
395,304
65,549
329,755
395,457
63,862
331,595
395,875
62,371
333,505
396,166
63,625
332,541
397,288
65,482
331,806
391,822
63,697
328,125
395,420
64,999
330,421
397,576
65,904
331,672
11,057
8,018
0
310,680
11,056
8,018
0
312,521
11,056
8,018
0
314,431
11,056
8,018
0
313,468
11,055
8,018
0
312,732
11,057
8,018
0
309,051
11,057
8,018
0
311,346
11,056
8,018
0
312,599
329,755
331,595
333,505
332,541
331,806
328,125
330,421
331,672
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign exchange commitments.
A12
DomesticNonfinancialStatistics • January 1994
1.19 FEDERAL RESERVE BANKS
Maturity Distribution of Loan and Security Holding
Millions of dollars
Type of holding and maturity
Wednesday
End of month
1993
1993
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
Aug. 31
Sept. 30
Oct. 29
1 Total loans
268
216
214
273
180
236
2,918
145
2 Within fifteen days 1
3 Sixteen days to ninety days
4 Ninety-one days to one year
235
34
0
72
144
0
70
144
0
259
14
0
170
10
0
99
137
0
2,793
125
0
71
75
0
5 Total acceptances
0
0
0
0
0
0
0
0
6 Within fifteen days 1
7 Sixteen days to ninety days
8 Ninety-one days to one year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
319,351
322,640
323,303
324,122
322,594
316,985
319,357
317,961
11,886
77,157
101,514
75,179
22,505
31,111
16,814
76,422
100,846
74,942
22,505
31,111
17,140
77,017
100,589
74,942
22,505
31,111
19,423
79,559
97,495
74,911
21,623
31,111
8,532
85,486
100,930
74,911
21,623
31,111
6,730
82,664
102,812
72,679
21,707
30,394
4,423
76,689
109,686
74,942
22,505
31,111
3,625
85,863
100,828
74,911
21,623
31,111
16 Total federal agency obligations
6,426
4,944
4,830
5,107
5,051
4,839
4,804
4,734
17
18
19
20
21
22
1,841
555
1,102
2,187
599
142
170
705
1,142
2,187
599
142
%
670
1,172
2,157
594
142
477
566
1,172
2,157
594
142
421
651
1,105
2,139
594
142
302
439
1,142
2,168
647
142
220
550
1,102
2,187
599
142
104
651
1,105
2,139
594
142
9 Total U.S. Treasury securities
10
11
12
13
14
15
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.
Monetary and Credit Aggregates
A13
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
Item
1989
Dec.
1990
Dec.
1991
Dec.
1992
Dec.
1993
Mar.
Total reserves3
Nonborrowed reserves4
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base6
May
June
July
Aug.
Sept.
Oct.
57.12
56.94
56.94
56.21
368.07
57.57
57.32
57.32
56.48
370.98
58.03 58.84r 59.83
57.68 58.41
59.55
57.68 58.41r 59.55
57.08 57.75r 58.73
374.53 379.26 381.78
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
5
Apr.
40.49
40.23
40.25
39.57
267.73
41.77
41.44
41.46
40.10
293.19
45.53
45.34
45.34
44.56
317.17
54.35 55.17
54.23 55.07
54.23 55.07
53.20 53.95
350.80 358.37
55.20
55.12
55.12
54.10
360.63
56.88
56.76
56.76
55.88
364.77
Not seasonally adjusted
6
7
8
9
10
Total reserves7
Nonborrowed reserves
Nonborrowed reserves
plus extended credit5
8
Required reserves
9
Monetary base
41.77 43.07
41.51 42.74
41.53 42.77
40.85 41.40
271.18 296.68
46.98
46.78
46.78
46.00
321.07
56.06
55.93
55.93
54.90
354.55
54.18 56.37
54.09 56.29
54.09 56.29
52.96 55.27
356.00 361.64
55.88
55.76
55.76
54.88
364.08
56.%
56.78
56.78
56.05
368.73
57.42
57.17
57.17
56.33
372.02
59.54
57.38 58.69
57.03 58.26rr 59.26
59.26
57.03 58.26
56.43 57.60 r 58.44
374.10 377.75 380.84
62.81
62.54
62.56
61.89
292.55
.92
.27
55.53
55.34
55.34
54.55
333.61
.98
.19
56.54
56.42
56.42
55.39
360.90
1.16
.12
54.30 56.54
54.20 56.47
54.20 56.47
53.08 55.45
362.59 368.18
1.21
1.10
.09
.07
56.10
55.98
55.98
55.10
370.46
57.24
57.06
57.06
56.33
375.19
.91
.18
57.75
57.51
57.51
56.66
378.48
1.09
.24
60.05
57.77 59.14
59.76
57.42 58.71
59.76
57.42 58.71
56.82 58.05r 58.95
380.53 384.25 387.52
1.10
1.09
.95
.29
.43
.35
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11
12
13
14
15
16
17
Total reserves11
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base12
Excess reserves"
Borrowings from the Federal Reserve
59.12
58.80
58.82
57.46
313.70
1.66
.33
1. Latest monthly and biweeklyfiguresare available from the Board's H.3 (502)
weekly statistical release. Historical data and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, 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, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as with traditional shortterm adjustment credit, the money market impact of extended credit is similar to
that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory
changes in reserve requirements, a multiplicative procedure is used to estimate
1.00
.12
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for ail 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 changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
DomesticNonfinancialStatistics • January 1994
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1993
Item
1989
Dec.
1990
Dec.
1991
Dec.
1992
Dec.
July r
Aug/
Sept. r
Oct.
Seasonally adjusted
1
2
3
4
5
Measures2
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks 4
Demand deposits
Other checkable deposits 6
794.6
3,233.3
4,056.1
4,886.1
10,030.7
827.2
3.345.5
4,116.8
4.966.6
10,670.1
899.3
3,445.8
4,168.1
4,982.3
11,141.9
1,026.6
3,494.8r
4,162.5
5,039.5
11,718.6
1,085.0
3.516.3
4.162.4
5,065.7
12,024.7
1,094.1
3,520.9
4,165.1
5,080.0
12,076.0
1,106.5
3,532.3
4,176.8
5,073.3
12,120.7
1,116.1
3,534.4
4,183.6
n.a.
n.a.
222.7
6.9
279.8
285.3
246.7
7.8
278.2
294.5
267.2
7.8
290.5
333.8
292.3
8.1
340.8
385.2
309.6
7.9
365.7
401.9
312.6
7.8
370.7
403.1
316.4
7.8
376.4
406.0
318.2
7.8
380.0
410.2
2,438.7
822.8
2,518.3
771.3
2,546.6
722.3
2,468.3
667.7
2,431.3
646.1
2,426.8
644.2
2,425.8
644.5
2,418.3
649.2
Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits 9 ..
14 Large time deposits 10 ' 11
541.4
534.9
387.7
582.2
610.3
368.8
666.2
601.5
341.3
756.1
506.9
288.1
769.5
483.8
271.6
773.9
479.3
272.2
777.2
475.9
270.5
777.8
472.1
271.4
Thrift institutions
15 Savings deposits, including
MMDAs
16 Small time deposits 9 .
17 Large time deposits 10
349.6
617.8
161.1
338.6
562.0
120.9
376.3
463.2
83.4
429.9
360.4
67.5
430.6
333.8
63.7
431.2
330.6
63.2
431.6
326.9
63.1
431.5
323.5
63.1
Money market mutual funds
18 General purpose and broker-dealer .
19 Institution-only
317.4
108.8
350.5
135.9
363.9
182.1
342.3
202.3
335.9
195.0
334.3
193.3
332.4
194.1
333.0
196.6
2,247.6
7,783.1
2,490.7
8,179.4
2,763.8
8,378.1
3,068.4
8,650.2
3.227.8
8.796.9
3,252.2
8,823.8
3,271.2
8,849.5
Nontransaction
10 In M2
11 In M3
components
Debt components
20 Federal debt
21 Nonfederal debt
n.a.
n.a.
Not seasonally adjusted
22
23
24
25
26
Measured
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency 3
Travelers checks 4
Demand deposits 3
Other checkable deposits 6
811.5
3,245.1
4,066.4
4,906.0
10,026.5
843.7
3,357.0
4,126.3
4,988.0
10,667.7
916.4
3,457.9
4.178.1
5.004.2
11,141.0
1,045.7
3,509.1
4,174.6
5,064.0
11,717.2
1.083.7
3.512.8
4.155.9
5,047.7
11,983.3
1,087.7
3,513.7
4.163.0
5.067.1
12,036.9
1,098.2
3,518.7
4,164.1
5,062.0
12,088.6
1,110.9
3,528.4
4,173.7
n.a.
n.a.
225.3
6.5
291.5
288.1
249.5
7.4
289.9
296.9
269.9
7.4
302.9
336.3
295.0
7.8
355.2
387.7
311.0
8.4
365.4
398.8
312.8
8.4
367.3
399.2
314.8
8.2
372.9
402.4
317.3
8.0
380.8
404.8
2,433.6
821.3
2,513.2
769.3
2,541.5
720.1
2,463.4
665.5
2,429.1
643.1
2,426.0
649.3
2,420.5
645.4
2,417.5
645.3
Commercial banks
33 Savings deposits, iincluding
MMDAs
34 Small time deposits 9 .
35 Large time deposits 10, 11
543.0
533.8
386.9
580.1
610.5
367.7
663.3
602.0
340.1
752.3
507.7
287.1
772.2
483.7
271.2
774.5
479.4
273.3
775.0
476.6
270.9
775.9
473.3
270.5
Thrift institutions
36 Savings deposits, iiuluding MMDAs
37 Small time deposits 9 .
38 Large time deposits 10
347.4
616.2
162.0
337.3
562.1
120.6
374.7
463.6
83.1
427.8
360.9
67.3
432.1
333.7
63.6
431.5
330.7
63.4
430.4
327.4
63.2
430.4
324.3
62.9
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
315.7
109.1
348.4
136.2
361.5
182.4
340.0
202.4
331.7
191.8
331.5
193.3
329.8
190.7
330.0
192.4
Repurchase agreements and Eurodollars
41 Overnight
42 Term
77.5
178.4
74.7
158.3
76.3
130.1
74.7r
126.2
75.6
138.4
78.3
140.1
81.3
140.7
83.7
139.9
2,247.5
7,779.0
2,491.3
8,176.3
2,765.0
8,376.0
3,069.8
8,647.4
3,201.8
8,781.5
3,229.4
8,807.4
3,251.9
8,836.7
Nontransaction
31 In M2'8
32 In M3
components
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
n.a.
n.a.
Monetary and Credit Aggregates
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, 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) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
A15
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those 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) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including
MMDAs), and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift
institutions are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government, and foreign banks and official
institutions.
A16
DomesticNonfinancialStatistics • January 1994
1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING
Commercial and BIF-insured saving banks1
1993
Item
1991
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r
Oct.
Interest rates (annual effective yields)
INSURED COMMERCIAL BANKS
1 Negotiable order of withdrawal accounts . . .
2 Savings deposits
3.76
4.30
2.33
2.88
2.27
2.80
2.21
2.73
2.15
2.68
2.12
2.65
2.09
2.61
2.06
2.59
2.01
2.55
1.96
2.51
1.93
2.49
4.18
4.41
4.59
4.95
5.52
2.90
3.16
3.37
3.88
4.77
2.81
3.08
3.29
3.83
4.59
2.75
3.03
3.22
3.74
4.52
2.72
2.99
3.19
3.66
4.47
2.70
2.97
3.18
3.64
4.47
2.68
2.97
3.19
3.65
4.44
2.67
2.97
3.18
3.64
4.43
2.66
2.%
3.17
3.63
4.40
2.63
2.92
3.13
3.55
4.28
2.63
2.91
3.11
3.54
4.27
8 Negotiable order of withdrawal accounts . . .
9 Savings deposits
4.44
4.97
2.45
3.20
2.37
3.14
2.32
3.05
2.25
2.98
2.20
2.93
2.13
2.88
2.09
2.83
2.07
2.80
2.01
2.73
1.98
2.68
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vi years
4.68
4.92
4.99
5.23
5.98
3.13
3.44
3.61
4.02
5.00
3.01
3.35
3.57
3.89
4.97
2.95
3.28
3.52
3.83
4.89
2.91
3.23
3.48
3.86
4.84
2.87
3.19
3.45
3.76
4.79
2.86
3.17
3.44
3.79
4.75
2.80
3.15
3.40
3.72
4.73
2.79
3.12
3.37
3.73
4.73
2.76
3.05
3.33
3.69
4.62
2.75
3.05
3.34
3.68
4.57
3
4
5
6
7
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2 Vi years
BIF-INSURED SAVINGS BANKS 3
10
11
12
13
14
Amounts outstanding (millions of dollars)
INSURED COMMERCIAL BANKS
15 Negotiable order of withdrawal accounts . . .
16 Savings deposits
17 Personal
18 Nonpersonal
244,637
652,058
508,191
143,867
286,541
738,253
578,757
159,496
279,944
742,952
585,189
157,764
287,811
747,809
591,388
156,422
280,073
745,038
586,863
158,175
283,860
753,452
591,231
162,221
287,555
754,790
592,545
162,245
284,4%
757,716
593,448
164,268
287,675
761,919
593,318
168,601
286,056
758,835
592,028
166,807
289,801
765,358
595,703
169,655
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2 Vi years
47,094
158,605
209,672
171,721
158,078
38,474
127,831
163,098
152,977
169,708
36,738
128,209
159,631
151,798
172,362
35,459
125,630
158,173
147,798
177,558
34,675
122,136
156,957
146,830
178,657
33,213
119,096
157,559
144,330
179,761
31,743
114,846
156,549
144,804
179,297
30,803
112,497
156,431
143,605
180,983
30,017
109,603
155,074
141,377
181,762
30,384
108,574
152,501
139,406
184,414
30,022
108,505
149,758
139,044
183,791
147,266
147,350
146,841
148,515
147,463
146,450
146,523r
146, l % r
145,955r
145,636
144,782
25 Negotiable order of withdrawal accounts....
26 Savings deposits
27 Personal
28 Nonpersonal
9,624
71,215
68,638
2,577
10,871
81,786
78,695
3,091
9,821
79,649
76,634
3,016
10,199
77,390
74,430
2,961
9,876
76,970
74,077
2,893
10,000
77,352
74,376
2,976
10,313
77,495
74,569
2,926
10,457
78,390
75,049
3,341
10,468
78,387
75,153
3,234
10,471
78,182
74,978
3,204
10,550
78,023
74,763
3,261
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vi years
4,146
21,686
29,715
25,379
18,665
3,867
17,345
21,780
18,442
18,845
3,468
15,857
20,301
17,387
18,759
3,201
14,468
19,074
16,842
18,564
3,167
14,328
18,778
16,433
18,646
3,103
14,129
18,520
16,155
18,725
3,022
13,808
18,427
15,972
18,989
2,871
13,773
18,454
16,250
19,229
2,928
13,525
18,143
16,200
19,331
2,886
13,261
17,798
16,161
19,610
2,841
13,140
17,455
16,136
19,669
23,007
21,713
21,260
20,089
19,969
19,861
19,855
19,920
19,802
19,766
19,615
19
20
21
22
23
24 IRA/Keogh Plan deposits
BIF-INSURED SAVINGS BANKS 3
29
30
31
32
33
34 IRA/Keogh Plan accounts
1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6
(508) Special Supplementary Table monthly statistical release. For ordering
address, see inside front cover. Estimates are based on data collected by the
Federal Reserve System from a stratified random sample of about 460 commercial
banks and 80 savings banks on the last Wednesday of each period. Data are not
seasonally adjusted and include IRA/Keogh deposits and foriegn currency denominated deposits. Data exclude retail repurchase agreements and deposits held in
U.S. branches and agencies of foreign banks.
2. Includes personal and nonpersonal money market deposits.
3. BIF-insured savings banks include both mutual and federal savings banks.
Monetary and Credit Aggregates
A17
1.23 BANK DEBITS AND DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1993
Mar.
4 Other checkable deposits4
5 Savings deposits (including MMDAs)
May
June
Julyr
Aug.
Seasonally adjusted
DEBITS
Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks
Apr.
277,157.5
131,699.1
145,458.4
277,758.0
137,352.3
140,405.7
315,806.1
165,572.7
150,233.5
331,026.3
166,866.6
164,159.7
324,638.7
163,540.1
161,098.6
306,642.9
155,495.0
151,147.9
335,248.5
170,062.9
165,185.6
330,636.0
166,869.9
163,766.1
333,295.5
168,433.7
164,861.8
3,349.0
3,483.3
3,645.5
3,266.1
3,788.1
3,331.3
3,572.6
. 3,562.8
3,524.7
3,523.3
3,284.7
3,436.1
3,620.9
3,637.4
3,380.7
3,666.7
3,478.1
3,529.2
797.8
3,819.8
464.9
803.5
4,270.8
447.9
832.4
4,797.9
435.9
811.3
4,129.1
446.6
792.3
4,120.9
435.4
722.8
3,852.9
393.7
791.3
4,197.5
431.1
777.9
4,306.7
423.9
767.8
4,027.5
420.3
16.5
6.2
16.2
5.3
14.4
4.7
12.5
4.8
12.5
4.7
11.2
4.5
12.3
4.7
11.5
4.8
11.7
4.6
DEPOSIT TURNOVER
Demand deposits3
6 All insured banks
7 Major New York City banks
8 Other banks
9 Other checkable deposits4
10 Savings deposits (including MMDAs)5
Not seasonally adjusted
DEBITS
Demand deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 Other checkable deposits4
15 Savings deposits (including MMDAs)5
277,290.5
131,784.7
145,505.8
277,715.4
137,307.2
140,408.3
315,808.2
165,595.0
150,213.3
339,172.4
170,855.0
168,317.4
324,530.2
161,923.2
162,607.0
306,746.1
154,606.6
152,139.5
345,368.7
176,874.8
168,493.9
332,573.8
168,018.4
164,555.4
342,886.8
174,674.7
168,212.1
3,346.7
3,483.0
3,645.6
3,267.7
3,788.1
3,329.0
3,630.2
3,529.2
3,741.6
3,741.3
3,201.0
3,445.0
3,645.9
3,758.1
3,305.2
3,677.1
3,416.5
3,567.2
798.2
3,825.9
465.0
803.4
4,274.3
447.9
832.5
4,803.5
436.0
854.5
4,385.4
470.2
787.0
4,108.4
436.0
738.2
3,948.9
404.2
818.3
4,412.6
441.1
777.4
4,280.6
423.5
803.0
4,307.8
435.3
16.4
6.2
16.2
5.3
14.4
4.7
12.6
4.7
12.8
5.0
11.1
4.5
12.5
4.9
11.3
4.8
11.7
4.6
DEPOSIT TURNOVER
Demand deposits3
16 All insured banks
17 Major New York City banks
18 Other banks
19 Other checkable deposits4
20 Savings deposits (including MMDAs)5
1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, DC
20551.
Data in this table also appear in the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Money market deposit accounts.
A18
DomesticNonfinancialStatistics • January 1994
All Commercial Banks1
1.24 LOANS AND SECURITIES
Billions of dollars, averages of Wednesday figures
1992
1993
Item
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
r
May
r
June r
July r
Aug. r
Sept. r
Oct.
Seasonally adjusted
2
1 Total loans, leases, and securities .
2,932.4
2,937.6
2,935.3
2,943.9
2,960.2
2,970.9
2,991.2
3,013.9
3,037.6
3,045.9
3,056.8
3,056.3
2 U.S. government securities
3 Other securities
4 Total loans and leases
5 Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease-financing receivables
19 All other loans
651.4
177.3
2,103.8
600.5
7.9
657.1
176.0
2,104.6
597.6
7.7
656.5
174.5
2,104.4
598.0
7.3
666.2
176.4
2,101.3
596.7
8.4
680.2r
179.0r
2,101.0"
593.1
8.5
691.0
181.0
2,098.9
587.5
8.5
693.5
181.2
2,116.5
589.9
9.0
704.1
179.7
2,130.1
590.8
8.9
708.1
181.3
2,148.2
589.8
9.5
714.3
182.2
2,149.4
589.0
9.9
719.7
182.6
2,154.5
585.8
9.1
717.2
181.0
2,158.1
585.7
9.8
592.6
582.3
10.3
892.5
355.4
64.2
589.9
580.2
9.7
892.4
355.5
64.8
590.7
581.2
9.6
890.8
358.4
63.5
588.3
578.8
9.5
890.1
361.9
62.8
584.6r
574.9
9.7
891.9"
362.3
64.2r
579.0
569.7
9.3
892.2
364.4
62.3
580.9
571.2
9.7
898.0
367.5
68.6
582.0
572.6
9.4
903.7
368.9
71.4
580.2
570.5
9.8
907.5
372.7
81.5
579.1
569.4
9.7
910.6
374.9
79.7
576.7
566.6
10.1
914.4
376.1
82.6
575.9
566.1
9.8
917.7
380.6
79.2
44.7
35.2
43.6
35.0
45.1
34.5
44.6
34.3
44.2
34.0
45.0
34.1
45.9
34.3
46.0
34.3
46.6
34.8
46.9
34.8
46.1
34.8
45.0
35.0
23.1
8.4
3.2
30.7
48.0
23.0
8.4
3.1
30.9
46.8
22.7
8.6
3.2
31.2
49.2
22.8
9.1
3.2
31.6
48.5
22.7
9.5
3.1
31.7
46.5
22.4
8.7
3.4
31.8
48.3
22.2
8.9
3.5
32.1
48.2
25.1
7.5
2.8
30.9
45.0
24.8
7.7
2.8
30.9
49.5
24.2
7.7
2.9
30.4
48.8
23.8
8.8
3.2
30.6
44.5
23.6
8.5
3.2
30.6
45.3
r
Not seasonally adjusted
20 Total loans, leases, and securities2 .
2,939.0
2,947.4
2,937.4
2,946.7
2,963.9
2,972.5
2,986.2
3,013.6
3,025.8
3,037.5
3,053.6
3,055.5
21 U.S. government securities
22 Other securities
23 Total loans and leases
24 Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
27
U.S. addressees . . . .j
28
Non-U.S. addressees
29 Real estate
30 Individual
31 Security
32 Nonbank financial
institutions
33 Agricultural
34 State and political
subdivisions
35 Foreign banks
36 Foreign official institutions
37 Lease-financing receivables . . . .
38 All other loans
654.1
178.3
2,106.6
600.8
8.2
655.8
176.2
2,115.4
600.6
8.0
656.9
175.0
2,105.5
596.4
7.4
669.8
176.6
2,100.3
595.9
8.8
685.9
178.7r
2,099.3r
596.3r
8.6
692.8
180.4
2,099.3
590.4
8.3
692.5
180.7
2,113.0
591.6
8.9
701.8
179.2
2,132.6
592.6
8.7
703.4
180.2
2,142.2
588.7
9.2
712.6
182.0
2,142.9
585.3
9.6
717.3
182.2
2,154.1
582.3
8.9
714.9
181.3
2,159.4
583.4
9.6
592.6
582.8
9.8
893.9
356.3
63.5
592.5
583.0
9.5
893.7
360.0
65.6
589.0
579.5
9.5
890.5
362.5
65.0
587.1
577.5
9.5
888.3
361.9
65.8
587.7r
578.2r
9.5
889.3r
359.8
66.4
582.1
572.7
9.4
891.1
361.7
65.7
582.7
573.0
9.7
898.0
365.7
65.5
583.9
573.7
10.2
904.0
367.0
70.8
579.5
569.4
10.1
907.8
370.4
77.5
575.8
565.8
10.0
911.3
374.4
76.8
573.4
563.4
10.0
915.2
377.8
80.6
573.9
564.3
9.5
918.7
381.0
78.8
45.0
35.2
45.6
34.8
45.3
33.6
44.5
32.9
43.9
32.7
44.4
33.3
45.3
34.0
46.6
34.8
46.3
35.6
46.7
36.0
45.5
36.2
44.6
36.0
25.2
7.8
2.8
30.8
45.4
24.8
8.2
2.8
30.9
48.6
24.0
7.8
2.9
30.8
46.6
23.7
8.6
3.2
30.8
44.6
23.7
8.2
3.2
30.8
45.0
23.2
8.1
3.2
30.8
47.5
23.0
8.2
3.1
30.9
47.6
22.7
8.4
3.2
31.2
51.1
22.7
9.1
3.2
31.4
49.4
22.7
9.3
3.1
31.5
45.9
22.5
8.9
3.4
31.6
50.1
22.3
9.2
3.5
32.0
49.7
1. All commercial banks include domestically chartered insured banks, U.S.
branches and agencies of foreign banks, New York state investment companies
majority owned by foreign banks, and Edge Act and agreement corporations
owned by domestically chartered foreign banks. Data are prorated averages of
Wednesday estimates for domestically chartered and foreign related institutions,
based on weekly reports of a sample of domestically chartered insured banks and
large branches and agencies and quarterly reports of all domestically chartered
insured banks and all agencies, branches, investment companies, and Edge Act
and agreement corporation engaged in banking.
2. Adjusted to exclude loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the fifty states and the District of Columbia.
Commercial Banking Institutions
A19
1.25 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1993r
1992
Source of funds
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Seasonally adjusted
1 Total nondeposit funds 2
307.7
2 Net balances owed to related foreign offices 3 .. 67.3
3 Borrowings from other than commercial banks
240.5r
in United States 4
4 Domestically chartered banks
154.8
Foreign-related banks
85.6
5
311.4
71.1
311.2
73.8
309.6
72.5
319.9
77.8
329.4
87.5
325.1
81.9
335.7
85.0
355.3
99.2
366.3
113.6
377.6
118.5
382.0
123.6
240.4r
155.9
84.4
237.3
156.6
80.7
237.1
156.9
80.2
242.1
161.5
80.5
241.9
166.9
75.0
243.3
166.2
77.1
250.7
173.7
77.0
256.1
179.8
76.4
252.7
177.4
75.3
259.1
181.8
77.4
258.4
183.4
75.0
Not seasonally adjusted
6 Total nondeposit funds
313.1r
7 Net balances owed to related foreign offices . . 68.9
8
Domestically chartered banks
-12.4
9 Foreign-related banks
81.4
10 Borrowings from other than commercial banks
in United States 4
244.1
11 Domestically chartered banks
159.3r
12
Federal funds and security RP
r
borrowings5
155.2
13
Other 6
4.1
14 Foreign-related banks
84.8
311.4
75.2
-15.0
90.2
310.0
76.4
-15.8
92.3
313.9
74.4
-10.6
84.9
324.7
78.5
-7.0
85.5
325.6
84.6
-9.4
94.0
329.8
84.0
-9.7
93.7
334.7
83.1
-15.3
98.4
349.0
95.9
-15.2
111.2
361.2
109.9
-13.6
123.5
372.3
116.2
-11.2
127.4
384.6
124.7
-5.1
129.9
236.2
155^
233.6
153.6
239.6
158.6
246.2
164.4
241.0
164.9
245.8
167.8
251.6
173.5
253.1
176.0
251.3
176.1
256.1
180.4
259.9
184:8
151.0
4.0
81.2
150.0
3.6
80.0
155.4
3.2
80.9
161.1
3.3
81.8
161.4
3.5
76.2
164.0
3.8
78.0
169.6
3.8
78.2
171.7
4.3
77.1
172.0
4.0
75.3
176.0
4.4
75.7
180.3
4.5
75.0
371.3
371.1
366.5
365.5
359.9
358.0
358.4
358.0
355.7
356.5
355.0
354.2
356.3
357.9
352.6
354.1
344.6
344.3
339.7
340.8
335.5
335.8
335.5
334.6
20.7
16.5
20.4
19.5
25.6
33.1
23.6
29.5
18.8
17.4
24.2
20.3
19.1
20.3
26.1
26.5
30.1
25.6
29.4
23.8
24.2
28.6
16.7
17.2
MEMO
Gross large time deposits7
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances at
commercial banks
17 Seasonally adjusted
18 Not seasonally adjusted
1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, New York
State investment companies majority owned by foreign banks, and Edge Act and
agreement corporations owned by domestically chartered and foreign banks.
Data in this table also appear in the Board's G.10 (411) monthly statistical
release. For ordering address, see inside front cover.
2. Includes federal funds, repurchase agreements (RPs), and other borrowing
from nonbanks and net balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own international banking facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill,
given for the purpose of borrowing money for the banking business. This includes
borrowings from Federal Reserve Banks and from foreign banks, term federal
funds, loan RPs, and sales of participations in pooled loans.
5. Figures are based on averages of daily data reported weekly by approximately 120 large banks and on quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data and partly averages of Wednesday
data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax and loan notes at commercial banks. Averages of daily data.
A20
DomesticNonfinancialStatistics • January 1994
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1
Wednesday figures
Millions of dollars
1993
Account
Sept. l r
Sept. 8r
Sept. 15r
Sept. 22r
Sept. 29r
Oct. 6
Oct. 13
Oct. 20
Oct. 27
3,211,608
851,988
685,848
166,140
48,345
31,754
3,437
13,154
2,311,275
159,269
2,152,006
582,730
913,943
74,775
839,167
376,148
279,186
243,858
31,777
33,064
33,512
107,458
38,048
272,105
3,193,535
852,500
686,620
165,880
46,851
30,455
3,331
13,065
2,294,185
149,859
2,144,327
578,336
915,389
74,737
840,652
375,441
275,161
228,727
33,129
33,660
32,589
90,033
39,318
278,998
3,229,727
854,620
688,228
166,392
46,952
30,897
3,177
12,878
2,328,155
163,473
2,164,681
583,879
915,852
74,775
841,078
377,298
287,652
244,038
31,572
33,878
35,726
104,159
38,703
277,540
3,191,279
855,551
689,602
165,949
44,793
28,982
3,048
12,764
2,290,935
140,910
2,150,026
583,227
912,838
74,769
838,070
378,461
275,499
210,102
34,234
33,515
28,893
75,151
38,309
268,868
3,204,947
849,719
683,662
166,057
47,420
31,093
2,949
13,378
2,307,807
150,502
2,157,305
583,620
916,616
74,849
841,767
380,079
276,989
220,056
31,652
33,968
31,413
83,853
39,171
272,500
3,203,544
854,851
688,593
166,258
42,651
27,428
2,886
12,337
2,306,042
149,840
2,156,202
582,831
918,096
74,793
843,304
379,422
275,853
209,613
29,304
31,654
29,472
80,243
38,939
281,764
3,214,843
854,521
688,211
166,311
43,657
28,077
2,949
12,631
2,316,665
158,383
2,158,282
582,186
920,321
74,734
845,587
380,451
275,324
232,154
29,777
34,571
34,455
93,473
39,879
279,335
3,199,733
851,380
685,079
166,302
43,052
28,899
2,995
11,157
2,305,300
148,187
2,157,113
583,297
918,400
74,585
843,815
381,082
274,334
216,556
32,489
33,998
30,843
80,501
38,725
264,072
3,201,357
849,632
683,163
166,469
41,443
26,7%
2,730
11,917
2,310,282
151,357
2,158,925
583,400
917,380
74,487
842,892
382,305
275,841
214,893
30,628
34,174
31,808
77,417
40,694
268,483
3,727,571
3,701,261
3,751,304
3,670,249
3,697,503
3,694,921
3,726,332
3,680,360
3,684,732
2,546,977
832,032
5,871
44,719
781,442
771,828
610,173
332,945
518,843
24,817
494,026
367,320
2,533,452
811,643
3,048
42,554
766,041
778,848
609,371
333,590
501,551
10,561
490,990
368,423
2,571,198
854,602
26,292
46,653
781,658
773,760
608,333
334,503
521,960
12,531
509,429
360,625
2,471,211
767,739
3,945
37,352
726,442
767,010
606,320
330,143
532,690
34,553
498,137
367,635
2,492,119
792,157
3,271
38,929
749,957
764,448
606,062
329,452
533,023
35,277
497,746
377,001
2,516,429
804,405
2,979
37,857
763,569
776,430
605,660
329,934
510,220
12,636
497,584
371,706
2,533,595
822,038
2,916
44,463
774,660
777,838
604,829
328,889
529,030
11,849
517,181
366,304
2,492,698
792,890
3,216
38,874
750,800
769,751
602,956
327,102
517,523
9,730
507,793
371,783
2,488,437
788,007
3,028
39,520
745,460
770,951
601,609
327,870
510,938
12,943
497,995
387,%5
3,433,140
3,403,426
3,453,782
3,371,536
3,402,143
3,398,355
3,428,928
3,382,004
3,387,339
294,431
297,835
297,522
298,713
295,360
296,565
297,404
298,357
297,393
ALL COMMERCIAL BANKING INSTITUTIONS 2
1
7
3
4
5
6
7
8
9
10
11
12
N
14
15
16
17
18
19
20
21
22
23
24
Assets
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
U.S. government securities
Other securities
Other trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Revolving home equity
Other
Individual
All other
Total cash assets
Balances with Federal Reserve Banks
Cash in vault
Demand balances at U.S. depository institutions..
Cash items
Other cash assets
Other assets
25 Total assets
26
27
28
29
30
31
32
33
34
35
36
37
Liabilities
Total deposits
Transaction accounts
Demand, U.S. government
Demand, depository institutions
Other demand and all checkable deposits
Savings deposits (excluding checkable)
Small time deposits
Time deposits over $100,000
Borrowings
Treasury tax and loan notes
Other
Other liabilities
38 Total liabiUties
39 Residual (assets less liabilities)3
Footnotes appear on following page.
Commercial Banking Institutions
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1
A21
Wednesday figures—Continued
Millions of dollars
Account
Sept. l r
Sept. 8 r
Sept. 15r
Sept. 22r
Sept. 29"
Oct. 6
Oct. 13
Oct. 20
Oct. 27
Assets
40 Loans and securities
41 Investment securities
42
U.S. government securities
43
Other
44 Trading account assets
45
U.S. government securities
46
Other securities
47
Other trading account assets
48 Total loans
49
Interbank loans
50
Loans excluding interbank
51
Commercial and industrial
52
Real estate
53
Revolving home equity
54
Other
55
Individual
56
All other
57 Total cash assets
58 Balances with Federal Reserve Banks
59 Cash in vault
60 Demand balances at U.S. depository institutions .
61 Cash items
62 Other cash assets
63 Other assets
2,852,176
776,515
633,771
142,744
48,345
31,754
3,437
13,154
2,027,316
138,153
1,889,164
429,015
865,837
74,775
791,062
376,148
218,163
217,213
30,884
33,031
32,008
105,312
15,978
185,062
2,840,727
777,857
635,088
142,769
46,851
30,455
3,331
13,065
2,016,019
129,956
1,886,063
426,479
867,369
74,737
792,633
375,441
216,774
201,754
32,595
33,625
31,099
87,654
16,782
189,070
2,865,938
779,746
636,639
143,107
46,952
30,897
3,177
12,878
2,039,240
138,419
1,900,820
430,763
868,024
74,775
793,249
377,298
224,735
217,130
30,695
33,841
34,150
101,569
16,875
187,611
2,830,890
780,523
637,850
142,672
44,793
28,982
3,048
12,764
2,005,575
117,889
1,887,686
430,486
865,135
74,769
790,366
378,461
213,604
183,569
33,715
33,477
27,287
72,151
16,939
182,466
2,844,057
775,829
633,343
142,485
47,420
31,093
2,949
13,378
2,020,808
124,107
1,8%,701
431,311
869,105
74,849
794,257
380,079
216,205
192,472
30,983
33,931
29,901
80,559
17,098
183,163
2,852,160
780,668
637,955
142,712
42,651
27,428
2,886
12,337
2,028,841
129,325
1,899,516
430,904
870,471
74,793
795,679
379,422
218,719
182,976
28,843
31,620
28,026
77,324
17,163
190,645
2,860,886
779,239
636,377
142,862
43,657
28,077
2,949
12,631
2,037,990
134,148
1,903,842
430,738
872,900
74,734
798,166
380,451
219,753
205,257
28,944
34,533
32,856
90,767
18,157
191,705
2,840,944
776,042
633,186
142,856
43,052
28,899
2,995
11,157
2,021,850
122,394
1,899,456
431,744
870,%7
74,585
7%,382
381,082
215,663
190,200
32,050
33,%2
29,354
77,489
17,345
179,987
2,838,586
773,184
630,762
142,422
41,443
26,7%
2,730
11,917
2,023,959
125,686
1,898,272
431,258
869,913
74,487
795,426
382,305
214,7%
187,155
29,802
34,139
30,325
74,437
64 Total assets
3,254,450
3,231,551
3,270,679
3,1%,925
3,219,692
3,225,781
3,257,847
3,211,131
3,211,241
Liabilities
65 Total deposits
66 Transaction accounts
67
Demand, U.S. government
68
Demand, depository institutions
69
Other demand and all checkable deposits
70 Savings deposits (excluding checkable)
71 Small time deposits
72 Time deposits over $100,000
73 Borrowings
74 Treasury tax and loan notes
75 Other
76 Other liabilities
2,405,447
820,442
5,870
42,224
772,347
767,409
607,866
209,730
413,178
24,817
388,361
144,397
2,392,470
800,462
3,048
39,981
757,433
774,419
607,084
210,505
401,325
10,561
390,764
142,923
2,427,147
842,324
44,192
771,844
769,374
606,037
209,412
407,635
12,531
395,104
141,377
2,328,864
754,933
3,945
34,938
716,050
762,705
604,033
207,193
430,441
34,553
395,888
141,909
2,347,678
778,517
3,271
36,258
738,989
760,203
603,806
205,153
433,405
35,277
398,128
146,251
2,376,030
792,203
2,979
35,233
753,991
772,122
603,408
208,297
407,829
12,636
395,193
148,358
2,394,206
810,242
2,915
41,917
765,410
773,378
602,564
208,022
425,486
11,849
413,637
143,753
2,353,487
780,865
3,215
36,512
741,137
765,366
600,711
206,546
416,920
9,730
407,190
145,368
2,349,452
777,002
3,027
37,108
736,867
766,478
599,326
206,647
415,040
12,943
402,097
152,358
77 Total liabilities
2,963,021
2,936,718
2,976,158
2,901,213
2,927,334
2,932,217
2,963,445
2,915,775
2,916,849
291,429
294,833
294,521
295,712
292,359
293,564
294,402
295,355
294,392
DOMESTICALLY CHARTERED COMMERCIAL BANKS 4
78 Residual (assets less liabilities)
3
1. Excludes assets and liabilities of international banking facilities.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge Act and agreement corporations, and New York
State investment corporations majority owned by foreign banks. Data are estimates
for the last Wednesday of the month based on a sample of weekly reporting
foreign-related and domestic institutions and quarter-end condition reports.
26,288
18,281
185,501
3. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly reporting banks and quarter-end condition reports.
A22
DomesticNonfinancialStatistics • January 1994
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1993
Account
Sept. 15r
Sept. 1
Sept. 8
1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
3 Trading account
4 Investment account
5
Mortgage-backed securities 1
All others, by maturity
One year or less
6
7
One year through five years
8
More than five years
9 Other securities
10 Trading account
11 Investment account
12
State and political subdivisions, by maturity
13
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
135,40^
305,747
28,814
276,933
86,712
120,015
305,009
27,841
277,168
86,613
135,185
305,666
28,292
277,374
85,766
110,278
303,939"
25,858
278,082r
87,263
115,749r
301,832r
26,905
274,926r
87,215
107,238
302,845
24,537
278,308
87,189
119,436
302,856
25,228
277,628
86,717
113,626
301,586
26,106
275,480
85,729
109,610
297,687
24,087
273,600
85,377
50,905
69,229r
70,087r
57,156
2,832
54,325
19,687
3,548
16,139
34,638
13,039
50,735
70,199"
69,62 l r
57,195
2,772
54,423
19,742
3,619
16,123
34,681
12,952
50,761
71,559
69,288
56,939
2,614
54,326
19,810
3,655
16,154
34,516
12,763
50,092r
71,657r
69,070
56,549
2,717
53,831
19,919
3,701
16,218
33,912
12,650
48,300"
71,234r
68,177
56,277
2,629
53,647
19,997
3,761
16,236
33,650
13,265
48,389
71,524
71,205
56,985
2,621
54,364
19,919
3,819
16,100
34,445
12,224
48,721
71,554
70,636
57,086
2,684
54,403
19,948
3,795
16,153
34,454
12,517
49,126
71,782
68,844
57,353
2,731
54,622
20,069
3,826
16,243
34,553
11,045
48,330
72,641
67,252
56,598
2,467
54,132
20,126
3,845
16,281
34,005
11,805
Federal funds sold2
To commercial banks in the United States
To nonbank brokers and dealers
To others 3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other loans
Lease-financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
Other assets
93,973
57,861
31,779
4,333
991,880r
270,112r
3,308
266,804r
265,222r
1,582
403,082r
43,926r
359,156r
191,418r
37,340r
13,580
2,869
20,891r
18,984r
5,802
13,587
l,275r
25,266r
25,013r
2,032r
35,743
954,104r
169,798r
86,414
49,600
31,7%
5,018
987,162r
267,748r
3,231r
264,517r
263,0101
1,507
404,212r
43,856r
360,355r
190,797r
36,572r
12,557
2,678
21,338r
17,877
5,800
13,442
1,262r
24,447
25,006r
2,018
35,968
949,177
172,165r
102,670
60,424
36,209
6,037
993,309
271,267
3,190
268,077
266,562
1,515
403,921
43,879
360,042
191,597
35,664
12,192
2,500
20,972
19,726
5,775
13,380
1,307
25,624
25,047
2,008
36,017
955,285
172,482
82,726
45,736
31,301
5,689
988,109
270,697r
3,071
267,626r
266,098r
1,528
401,318r
43,653r
357,664r
192,343r
35,964
13,51lr
2,304
20,149
17,590
5,736
13,448
l,248r
24,698
25,068r
2,055
35,924
950,130
168,133r
87,655
52,365
29,664
5,626
995,402r
271,309
2,829
268,480
266,958
1,522
403,275r
43,693r
359,582r
193,437r
36,949
13,365
2,414
21,170
19,294
5,796
13,398
l,489 r
25,288
25,167
2,033
35,604
957,766r
168,717r
85,522
48,998
30,738
5,785
995,941
270,743
2,947
267,796
266,407
1,389
404,988
43,706
361,282
193,259
38,566
13,413
2,845
22,308
17,622
5,841
13,214
1,460
24,955
25,292
2,000
35,214
958,727
174,360
92,402
54,310
32,962
5,130
999,827
270,510
3,400
267,110
265,719
1,391
407,018
43,670
363,347
193,907
40,834
14,689
4,133
22,011
17,408
5,848
13,327
1,445
24,236
25,294
1,999
35,218
962,609
174,484
78,905
42,963
30,365
5,577
998,168
270,973
3,409
267,563
266,087
1,477
404,544
43,550
360,993
195,234
39,540
15,058
2,807
21,675
17,646
5,660
13,263
1,561
24,300
25,449
1,980
35,186
961,002
167,072
82,888
48,212
29,723
4,953
9%,392
270,706
3,438
267,268
265,842
1,426
402,755
43,480
359,275
195,903
38,595
14,376
2,298
21,921
18,428
5,672
13,028
1,382
24,404
25,519
1,996
35,153
959,244
172,330
l,729,218r l,702,927r 1,740,989 l,684,405r 1,701,260r 1,697,900
1,721,390
1,690,590
1,690,162
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
ASSETS
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45 Total assets
Footnotes appear on the following page.
Weekly Reporting Commercial Banks
A23
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1993
Account
Sept. 1
Sept. 8
Sept. 15"
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
1,128,535
302,421
250,451
51,970
8,427
1,664
26,656
5,316
661
9,246
120,206
705,908
684,033
21,875
17,828
2,235
1,481
330
1,102,291
285,886
234,296
51,590
9,056
1,956
22,529
5,284
618
12,149
119,096
697,309
675,605
21,703
17,648
2,230
1,511
315
1,098,309
283,722
232,517
51,206
8,842
1,898
22,850
5,310
669
11,637
117,951
696,635
674,918
21,717
17,611
2,245
1,544
317
325,671
0
10,018
315,653
317,237
75
8,770
308,392
314,980
0
11,158
303,822
LIABILITIES
46 Deposits
47 Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
Foreign governments and official institutions . .
54
55
Certified and officers' checks
56 Transaction balances other than demand deposits .
57 Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U.S. government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .
64 Liabilities for borrowed money 5
65 Borrowings from Federal Reserve Banks
66 Treasury tax and loan notes
,
67 Other liabilities for borrowed money
68 Other liabilities (including subordinated notes and
debentures)
69 Total liabilities
70 Residual (total assets less total liabilities)7
MEMO
71
72
73
74
75
76
77
Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates9
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents'"...
Net owed to related institutions abroad
l,144,815r 1,128,798" 1,163,355
330,451
312,164r
291,181"
255,699
253,397r
239,399"
58,767r
74,752
51,783"
9,242
9,857
7,952
3,953r
1,865"
20,436
27,578
24,929
28,668
5,084
5,451
5,503
632
629
689
11,664r
10,897"
10,275
122,574
123,429
123,601
710,076
714,188
709,303
686,702r
691,085"
686,859
23,374r
22,444
23,103"
18,262
18,863
18,919
2,633
2,317
2,310
1,569"
1,539
1,539"
308
328
333
317,547
0
21,443r
296,105
307,965
0
9,165
298,800
312,500
0
10,881
301,619
328,630"
0
28,774"
299,857"
329,114"
0
30,308"
298,806"
309,090
0
10,945
298,146
113,321r
111,707"
110,287
110,715"
115,337"
117,534
112,695
114,571
121,474
1,575,684" 1,548,471" 1,586,142 1,529,550" 1,547,705" 1,543,472
1,566,901
1,534,099
1,534,762
153,555"
154,428
154,488
156,492
155,400
1,398,731 1,384,727" 1,388,700"
101,771
99,643"
97,388"
786
786
828
402
402
401
384
385
427
21,515
21,307"
20,691"
-9,641"
-16,386 -10,470"
1,391,105
100,147
822
401
422
21,176
-11,236
1,395,689
99,819
821
401
420
21,611
-9,443
1,389,038
98,385
823
401
422
21,263
-5,294
1,382,783
99,075
812
393
418
21,919
-4,558
153,534
154,456
l,390,354r 1,386,575"
102,339"
102,716"
789
786
402
402
384
387
21,299
21,828"
-14,007" -17,379"
1. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal accounts (NOWs), automatic transfer service (ATS), and telephone and preauthorized transfers of savings deposits.
5. includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in
the United States.
1,090,205" 1,103,254" 1,116,848
271,701"
290,284"
288,563
222,705"
240,379
236,876"
48,183
48,996"
53,407"
8,932
8,672
8,083
2,145"
1,690
2,881"
21,825
20,972"
22,406
5,559
4,861
5,760
566
618
556
11,158
9,832"
14,069"
117,095
121,929
118,063
706,357
700,442"
695,875
684,551
678,101"
673,821"
21,806
22,341"
22,054"
18,172
18,185
17,838
2,212
2,310
1,991
1,444
1,527"
1,547"
312
330
332
154,847
154,855
9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly
reporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address, see inside
front cover.
A24
DomesticNonfinancialStatistics • January 1994
1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities1
Assets and
Millions of dollars, Wednesday figures
1993
Account
Sept. 1
Sept. 8
Sept. 15
Sept. 22
Sept. 29
Oct.
6
Oct.
13
Oct.
20
Oct.
27
ASSETS
20
21
Cash and balances due from depository
institutions
U.S. Treasury and government agency
securities
Other securities
Federal funds sold1
To commercial banks in the United States . . .
To others
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial
paper
All other
U.S. addressees
Non-U.S. addressees
Loans secured by real estate
To financial institutions
Commercial banks in the United States..
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities
To foreign governments and official
institutions
All other
Other assets (claims on nonrelated parties) . .
22
Total assets3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
18,096
18,325
18,324
18,018
18,797
18,117
18,363
17,946
18,876
33,571
8,406
23,073
5,462
17,612
161,705
95,979
33,267
8,311
21,770
4,871
16,899
158,976
94,904
33,324
8,382
26,035
7,295
18,741
161,693
95,759
33,405
8,372
25,025
6,550
18,474
160,633
95,454
32,542
8,497
26,975
7,791
19,184
159,255
95,335 R
32,760
8,488
23,013
4,965
18,048
157,252
95,171
33,598
8,470
24,297
6,811
17,486
156,496
95,135
33,603
8,461
26,878
7,439
19,439
157,138
95,114
33,858
8,667
29,237
7,550
21,687
156,706
95,229
2,776
93,203
89,876
3,327
31,516
26,281
5,248
2,208
18,825
5,175
2,708
92,196
88,835
3,360
31,500
25,094
5,253
2,202
17,640
4,099
2,664
93,095
89,742
3,353
31,403
25,629
5,411
2,288
17,930
5,371
2,616
92,838
89,506
3,332
31,301
25,157
5,219
2,051
17,887
5,070
2,466
92,869"
89,553 R
3,316
31,226
23,545
5,628
1,946
15,971
5,233
2,695
92,476
89,229
3,246
31,300
23,443
5,522
2,023
15,898
3,923
2,951
92,184
88,973
3,210
31,240
23,368
5,548
2,078
15,741
3,395
2,952
92,162
88,992
3,170
31,223
23,345
5,710
2,119
15,517
3,716
2,771
92,458
89,251
3,206
31,176
23,228
5,473
2,176
15,579
3,323
435
2,319
31,060
418
2,959
31,814
467
3,065
31,553
472
3,178
30,764
497
3,419"
32,466
476
2,940
30,942
464
2,895
31,089
454
3,285
30,322
423
3,327
31,416
299,435
297,234
304,327
299,665
302,511
296,875
296,322
296,755
299,419
90,944
4,589
90,850
4,530
92,160
4,991
91,297
5,230
93,056
5,706
90,006
4,947
89,691
4,776
89,748
4,929
90,607
4,406
3,403
1,186
86,355
3,712
818
86,320
3,856
1,135
87,169
3,878
1,351
86,068
4,260
1,445
87,350
3,809
1,138
85,059
3,758
1,018
84,915
3,875
1,055
84,819
3,497
909
86,201
59,466
26,888
60,054
26,267
61,263
25,906
60,438
25,629
60,570
26,780
58,581
26,478
58,053
26,862
57,943
26,876
57,939
28,262
80,645
41,844
76,788
38,064
86,750
48,182
78,680
39,112
76,345
38,009
78,929
43,348
79,180
41,478
77,095
42,936
72,845
37,863
13,633
28,211
38,801
11,291
26,774
38,723
19,563
28,619
38,568
9,475
29,638
39,568
12,027
25,982
38,336
11,931
31,416
35,581
12,427
29,051
37,701
9,033
33,903
34,159
9,993
27,870
34,983
4,856
33,945
29,319
4,380
34,343
29,581
4,884
33,684
29,000
4,360
35,208
29,407
4,519
33,817
30,258
3,914
31,668
28,888
4,516
33,185
27,860
4,942
29,216
27,844
5,596
29,386
28,039
299,435
297,234
304,327
299,665
302,511
296,875
296,322
296,755
299,419
216,045
75,003
212,200
75,244
216,729
71,403
215,665
76,833
213,850
78,872
211,025
72,749
210,502
75,582
212,931
79,661
215,445
87,269
LIABILITIES
36
37
Deposits or credit balances owed to other
than directly-related institutions
Demand deposits
Individuals, partnerships, and
corporations
Other
Nontransaction accounts
Individuals, partnerships, and
corporations
Other
Borrowings from other than directlyrelated institutions
Federal funds purchased
From commercial banks in the
United States
From others
Other liabilities for borrowed money
To commercial banks in the
United States
To others
Other liabilities to nonrelated parties
38
Total liabilities6
23
24
25
26
27
28
29
30
31
32
33
34
35
MEMO
39
40
7
Total loans (gross) and securities, adjusted ..
Net owed to related institutions abroad
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due from" position.
4. Includes other transaction deposits.
5. Includes securities sold under agreements to repurchase.
6. Includes net owed to related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due to" position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.
Financial Markets
A25
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December
1993
Item
1989
1988
1991
1990
1992
Apr.
May
June
July
Aug.
Sept.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
Financial companies1 2
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
6 Nonfinancial companies5
458,464
525,831
562,656
531,724
549,433
535,966
541,761
544,107
539,149
545,527
541,285
159,777
183,622
214,706
213,823
228,260
210,230
214,558
221,834
210,224
216,245
215,077
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
210,930
200,036
183,379
172,813
175,384
174,558
171,479
170,192
172,093
169,431
1,248
194,931
43,155
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
103,756
131,279
147,914
134,522
148,360
150,352
152,645
150,794
158,733
157,189
156,777
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
8
9
10
11
12
By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks7
Foreign correspondents
Others
By basis
13 Imports into United States
14 Exports from United States
15 All other
66,631
62,972
54,771
43,770
38,200
35,317
34,927
34,149
33,120
32,572
33,041
9,086
8,022
1,064
9,433
8,510
924
9,017
7,930
1,087
11,017
9,347
1,670
10,561
9,103
1,458
10,688
9,315
1,372
11,096
9,786
1,310
11,568
10,236
1,333
11,422
10,140
1,282
12,416r
10,709"
1,707
12,522
10,679
1,843
1,493
56,052
1,066
52,473
918
44,836
1,739
31,014
1,276
26,364
909
23,720
690
23,141
613
21,967
582
21,116
635
19,521r
637
19,882
14,984
14,410
37,237
15,651
13,683
33,638
13,095
12,703
28,973
12,843
10,351
20,577
12,212
8,096
17,893
10,746
7,629
16,942
10,274
7,809
16,844
10,066
7,650
16,433
10,149
7,673
15,299
10,422
7,534
14,616
10,773
7,460
14,808
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. Series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with
investors.
1.33 PRIME RATE CHARGED BY BANKS
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Data on bankers dollar acceptances are gathered from approximately 100
institutions. The reporting group is revised every January.
7. In 1977 the Federal Reserve discontinued operations in bankers dollar
acceptances for its own account.
Short-Term Business Loans1
Percent per year
Period
10.50
10.00
9.50
9.00
8.50
8.00
7.50
6.50
6.00
1990 ..
1991 ..
1992 ..
Average
rate
10.01
8.46
6.25
1990—
Feb.
Mar.
Apr.
May .
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
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
Average
rate
1991— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.52
9.05
9.00
9.00
8.50
8.50
8.50
8.50
8.20
8.00
7.58
7.21
1992— Jan.
Feb.
Mar.
Apr.
May .
6.50
6.50
6.50
6.50
6.50
1992— June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Dec. ..
1993—
Feb. ..
Mar. ..
May ...
July ...
Aug. ..
Sept. ..
Oct. ,,,
size, based on the most recent Call 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.
A26
DomesticNonfinancialStatistics • January 1994
1.35 INTEREST RATES
Money and Capital Markets
Averages, percent per year; figures are averages of business day data unless otherwise noted
1993
1990
1991
1993, week ending
1992
July
Aug.
Sept.
Oct.
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Oct. 29
MONEY MARKET INSTRUMENTS
1 Federal funds 1,2,3
2 Discount window borrowing •
5.69
5.45
3.52
3.25
3.06
3.00
3.03
3.00
3.09
3.00
2.99
3.00
3.05
3.00
3.24
3.00
2.91
3.00
2.97
3.00
2.97
3.00
8.15
8.06
7.95
5.89
5.87
5.85
3.71
3.75
3.80
3.15
3.20
3.35
3.14
3.18
3.33
3.14
3.16
3.25
3.14
3.26
3.27
3.17
3.18
3.26
3.15
3.26
3.27
3.14
3.25
3.25
3.13
3.24
3.24
3.14
3.28
3.30
8.00
7.87
7.53
5.73
5.71
5.60
3.62
3.65
3.63
3.08
3.12
3.15
3.08
3.13
3.16
3.07
3.09
3.11
3.08
3.16
3.13
3.10
3.10
3.11
3.09
3.13
3.12
3.09
3.18
3.13
3.07
3.16
3.12
3.07
3.18
3.14
7.93
7.80
5.70
5.67
3.62
3.67
3.12
3.26
3.10
3.23
3.07
3.17
3.19
3.19
3.10
3.17
3.18
3.18
3.17
3.17
3.18
3.18
3.24
3.24
8.15
8.15
8.17
5.82
5.83
5.91
3.64
3.68
3.76
3.10
3.16
3.34
3.09
3.14
3.32
3.09
3.12
3.24
3.09
3.24
3.25
3.10
3.16
3.24
3.10
3.23
3.23
3.09
3.22
3.23
3.09
3.23
3.24
3.10
3.29
3.30
8.16
5.86
3.70
3.17
3.14
3.08
3.26
3.14
3.25
3.25
3.25
3.29
7.50
7.46
7.35
5.38
5.44
5.52
3.43
3.54
3.71
3.04
3.16
3.33
3.02
3.14
3.30
2.95
3.06
3.22
3.02
3.12
3.25
2.92
3.04
3.21
2.97
3.08
3.21
3.02
3.10
3.22
3.04
3.14
3.27
3.06
3.18
3.32
7.51
7.47
7.36
5.42
5.49
5.54
3.45
3.57
3.75
3.05
3.15
3.42
3.05
3.17
3.30
2.96
3.06
3.27
3.04
3.13
3.25
2.90
3.02
n.a.
2.96
3.08
n.a.
3.04
3.12
n.a.
3.06
3.14
3.25
3.08
3.19
n.a.
7.89
8.16
8.26
8.37
8.52
8.55
n.a.
8.61
5.86
6.49
6.82
7.37
7.68
7.86
n.a.
8.14
3.89
4.77
5.30
6.19
6.63
7.01
n.a.
7.67
3.47
4.07
4.43
5.09
5.48
5.81
n.a.
6.63
3.44
4.00
4.36
5.03
5.35
5.68
n.a.
6.32
3.36
3.85
4.17
4.73
5.08
5.36
n.a.
6.00
3.39
3.87
4.18
4.71
5.05
5.33
6.07
5.94
3.35
3.83
4.17
4.72
5.03
5.33
6.12
5.99
3.35
3.83
4.15
4.69
5.03
5.33
6.09
5.99
3.36
3.82
4.09
4.62
4.95
5.24
5.99
5.87
3.40
3.87
4.17
4.69
5.04
5.31
6.03
5.89
3.46
3.97
4.28
4.82
5.19
5.44
6.14
5.99
8.74
8.16
7.52
6.34
6.18
5.94
5.90
5.94
5.92
5.82
5.86
5.99
6.96
7.29
7.27
6.56
6.99
6.92
6.09
6.48
6.44
5.27
5.74
5.57
5.37
5.84
5.45
n.a.
n.a.
5.29
n.a.
n.a.
5.25
5.19
5.70
5.30
n.a.
n.a.
5.30
n.a.
n.a.
5.20
n.a.
n.a.
5.20
n.a.
n.a.
5.31
9.77
9.23
8.55
7.50
7.19
6.98
6.97
7.00
7.02
6.92
6.92
7.03
9.32
9.56
9.82
10.36
10.01
8.77
9.05
9.30
9.80
9.32
8.14
8.46
8.62
8.98
8.52
7.17
7.35
7.53
7.93
7.43
6.85
7.06
7.25
7.60
7.16
6.66
6.85
7.05
7.34
6.94
6.67
6.87
7.04
7.31
6.91
6.69
6.89
7.08
7.35
6.95
6.70
6.91
7.09
7.35
6.93
6.62
6.82
6.99
7.25
6.79
6.63
6.81
6.97
7.26
6.97
6.73
6.93
7.08
7.38
6.97
8.%
3.61
8.17
3.24
7.46
2.99
6.89
2.81
6.83
2.76
6.70
2.73
6.71
2.72
6.70
2.73
6.67
2.73
6.67
2.73
6.69
2.71
6.81
2.71
paper3,5,6
3
4
5
Commercial
1-month
3-month
6-month
6
7
8
Finance paper, directly placed3,5,7
1-month
3-month
6-month
5,8
9
10
Bankers acceptances*
3-month
6-month
11
12
13
Certificates qf deposit, secondary
marker9
1-month
3-month
6-month
14 Eurodollar deposits, 3-month 3,10
18
19
20
U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
,
Auction average ,5,11
3-month
6-month
1-year
21
22
23
24
25
26
27
28
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
15
16
17
8.10
6.98
U . S . TREASURY NOTES AND BONDS
Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series13
30 Aaa
31 Baa
32 Bond Buyer series14
CORPORATE BONDS
33 Seasoned issues, all industries15
34
35
36
37
38
Rating group
Aaa
Aa
A
Baa
A-rated, recently offered utility bonds16 .
MEMO
Dividend-price ratio17
39 Preferred stocks
40 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. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard & Poor's corporate series. Preferred stock ratio is based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. 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.
Financial Markets
1.36 STOCK MARKET
All
Selected Statistics
1993
Indicator
1990
1991
1992
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2 Industrial
3 Transportation
4 Utility
5 Finance
183.66
226.06
158.80
90.72
133.21
206.35
258.16
173.97
92.64
150.84
229.00
284.26
201.02
99.48
179.29
243.41
294.40
226.96
109.45
209.93
248.12
298.75
229.42
112.53
217.01
244.72
292.19
237.97
113.78
216.02
246.02
297.83
237.80
111.21
209.40
247.16
298.78
234.30
113.27
209.75
247.85
295.34
238.30
116.27
218.89
251.93
298.83
250.82
118.72
224.%
254.86
300.92
247.74
122.32
229.35
257.53
306.61
254.04
120.49
228.18
6 Standard & Poor's Corporation
(1941-43 = 10)'
335.01
376.20
415.75
441.76
450.15
443.08
445.25
448.06
447.29
454.13
459.24
463.90
7 American Stock Exchange
(Aug. 31, 1973 = 50?
338.32
360.32
391.28
409.39
418.56
418.54
429.72
436.13
434.99
444.75
454.91
472.73
156,359
13,155
179,411
12,486
202,558
14,171
288,540
18,154
251,170
16,150
279,778
15,521
255,843
20,433
250,230
17,753
247,574
17,744
247,324
19,352
261,770
18,889
280,503
21,279
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-dealers3
28,210
36,660
43,990
44,290
45,160
47,420
48,630
49,550
49,080
52,760
53,700
n.a.
Free credit balances at brokers4
11 Margin accounts
12 Cash accounts
8,050
19,285
8,290
19,255
8,970
22,510
9,790
22,190
9,650
21,395
9,805
21,450
9,560
21,610
9,820
22,625
9,585
21,475
9,480
21,915
10,030
23,170
n.a.
n.a.
Margin requirements (percent of market value and effective date) 5
13 Margin stocks
14 Convertible bonds
15 Short sales
OOO
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
80
60
80
65
50
65
55
50
55
65
50
65
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5,1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through the exercise of subscription rights, corporate bonds, and
government securities. Separate reporting of data for margin stocks, convertible
bonds, and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements
Jan. 3, 1974
50
50
50
on securities other than options are the difference between the market value (100
percent) and the maximum loan value of collateral as prescribed by the Board.
Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1,
1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market value of the stock underlying the option. On
Sept. 30,1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).
A28
Domestic Financial Statistics • January 1994
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1993
1991
1992
1993
May
June
July
Aug.
Sept.
Oct.
1
U.S. budget
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus or deficit ( - ) , total
8 On-budget
9 Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-)) . . .
12 Other
1,054,264
760,380
293,885
1,323,785
1,082,098
241,687
-269,521
-321,719
52,198
1,090,453
788,027
302,426
1,380,794
1,128,455
252,339
-290,340
-340,428
50,087
1,153,175
841,241
311,934
1,408,122
1,142,110
266,012
-254,948
-300,869
45,922
70,640
44,518
26,122
107,603
83,208
24,395
-36,963
-38,690
1,727
128,568
98,662
29,906
117,469
103,475
13,994
11,099
-4,813
15,912
80,633
57,146
23,487
120,211
96,245
23,965
-39,577
-39,099
-478
86,741
62,060
24,681
109,819
84,953
24,867
-23,078
-22,893
-186
127,469
98,609
28,860
119,168
91,039
28,130
8,300
7,570
730
78,669
55,865
22,804
124,013
100,490
23,523
-45,343
-44,625
-719
276,802
-1,329
-5,952
310,918
-17,305
-3,273
248,619
6,283
46
30,832
20,196
-14,065
24,757
-40,288
4,432
1,055
32,447
6,075
54,301
-12,652
-18,571
-9,346
-11,713
12,759
4,255
33,646
7,442
41,484
7,928
33,556
58,789
24,586
34,203
52,506
17,289
35,217
20,300
5,787
14,514
60,588
28,386
32,202
28,141
5,818
22,324
40,793
7,975
32,818
52,506
17,289
35,217
18,860
6,032
12,828
MEMO
13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds, (federal old-age survivors insurance and federal
disability insurance) off-budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
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 loan-valuation adjustment; and
profit on sale of gold.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government and Office of Management and
Budget, Budget of the U.S. Government.
Federal Finance
A29
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Fiscal year
1991
Source or type
1992
1992
1993
1993
1993
H2
HI
H2
HI
Aug.
Sept.
Oct.
RECEIPTS
1 All sources
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund
5 Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions2
11
Self-employment 3taxes and
contributions
12 Unemployment insurance
13 Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts5
1,090,453
1,153,175
519,165
560,318
540,472
593,200
86,741
127,469
78,669
475,964
408,352
30
149,342
81,760
509,680
430,427
28
154,772
75,546
234,939
210,552
1
33,296
8,910
236,576
198,868
20
110,995
73,308
246,938
215,589"
10
39,286"
7,939"
255,556
210,066
25
113,482
67,468
39,440
36,751
0
3,928
1,235
55,653
31,991
0
25,579
1,918
37,680
34,284
27
4,053
684
117,951
17,680
131,548
14,027
54,016
8,649
61,682
9,403
58,022
7,219
69,044
7,198
2,422
479
25,909
1,398
4,269
2,111
413,689
428,300
186,839
224,569
192,599
227,177
36,657
37,768
30,828
385,491
396,939
175,802
208,110
180,758
208,776
31,447
36,908
29,440
24,421
23,410
4,788
20,604
26,556
4,805
3,306
8,721
2,317
20,434
14,070
2,389
3,988
9,397
2,445
16,270
16,074
2,326
0
4,810
400
4,231
413
447
0
1,046
343
45,569
17,359
11,143
26,459
48,057
18,802
12,577
18,239
24,429
8,694
5,507
13,390
22,389
8,146
5,701
10,658
23,456
9,497
5,733
11,446
23,398
8,860
6,494
9,867
4,295
1,828
1,150
1,429
4,385
1,646
1,049
2,456
3,597
1,708
990
1,708
OUTLAYS
1,380,794
1,408,122
694,345
704,266
723,515
673,328
109,819
119,168
124,013
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
298,350
16,107
16,409
4,499
20,025
15,205
290,590
17,175
17,055
4,445
20,088
20,257
147,669
7,691
8,472
1,698
11,130
7,418
147,065
8,540
7,951
1,442
8,594
7,526
155,222"
9,916"
8,521
3,109
11,467
8,866"
140,535
6,565
7,996
2,462
8,588
11,824
21,278
493
1,556
400
1,487
171
24,903
1,556
1,388
-276
1,907
205
24,281
4,732
1,421
345
1,911
1,442
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
10,118
33,333
6,838
-23,532
35,238
10,395
36,534
17,074
3,783
15,615
15,651
3,903
-7,694
18,425"
4,464"
-15,112
16,077
4,935
-2,855
3,270
876
3,003
3,760
1,168
377
3,133
898
18 All types
45,250
48,872
21,114
23,767
21,003"
23,983
4,937
4,326
3,586
29 Health
30 Social security and Medicare
31 Income security
89,497
406,569
196,891
99,249
435,137
207,933
41,459
193,098
87,693
44,164
205,500
104,537
47,232
232,109
98,613"
49,882
195,933
108,559
8,632
36,334
14,925
9,080
36,697
15,6%
9,315
36,267
17,342
32
33
34
35
36
34,133
14,426
12,945
199,439
-39,280
35,715
14,983
13,039
198,870
-37,386
17,425
6,574
6,794
99,149
-20,436
15,597
7,435
5,050
100,161
-18,229
18,561
7,238
8,223"
98,703"
-20,628"
16,385
7,463
5,205
99,635
-17,035
2,063
1,122
848
17,473
-3,187
3,010
1,415
1,712
15,440
-5,823
2,819
1,011
640
17,082
-2,593
Veterans benefits and services
Administration of justice
General government
Net interest6
Undistributed offsetting receipts'
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1994.
A30
DomesticNonfinancialStatistics • January 1994
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1991
1992
1993
Item
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
3,683
3,820
3,897
4,001
4,083
4,196
4,250
4,373
n.a.
2 Public debt securities
3 Held by public
4 Held by agencies
3,665
2,746
920
3,802
2,833
969
3,881
2,918
964
3,985
2,977
1,008
4,065
3,048
1,016
4,177
3,129
1,048
4,231
3,188
1,043
4,352
3,252
1,100
4,412
n.a.
n.a.
18
18
0
19
19
0
16
16
0
16
16
0
18
18
0
19
19
0
20
20
0
21
21
0
3,569
3,701
3,784
3,891
3,973
4,086
4,140
4,256
4,316
3,569
0
3,706
0
3,783
0
3,890
0
3,972
0
4,085
0
4,139
0
4,256
0
4,315
0
4,145
4,145
4,145
4,145
4,145
4,145
4,145
4,370
4,900
5 Agency securities
6 Held by public
Held by agencies
7
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt 1
Sept. 30
n.a.
n.a.
n.a.
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
SOURCES. 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
1992
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 2
Government
Public
Savings bonds and notes
Government account series3
Non-interest-bearing
By holder 4
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20 Insurance companies
21 Other companies
22 State and local treasuries
Individuals
23
Savings bonds
Other securities
74
25
Foreign and international5
Other miscellaneous investors®
26
1989
1991
1993
1992
Q4
Q1
Q2
Q3
2,953.0
3,364.8
3,801.7
4,177.0
4,177.0
4,230.6
4,352.0
4,411.5
2,931.8
1,945.4
430.6
1,151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,227.6
2,807.1
659.9
1,652.1
480.2
1,420.5
151.6
37.0
37.0
.0
161.4
1,040.0
3.0
4,349.0
2,860.6
659.3
1,698.7
487.6
1,488.4
152.8
43.0
43.0
.0
164.4
1,097.8
2.9
4,408.6
2,904.9
658.4
1,734.2
497.4
1,503.7
149.5
42.5
42.5
.0
167.0
1,114.3
2.9
707.8
228.4
2,015.8
164.9
14.9
125.1
93.4
487.5
828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4
968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3
1,047.8
302.5
2,839.9
294.0
79.4
190.3
192.5
534.8
1,047.8
302.5
2,839.9
294.0
79.4
190.3
192.5
534.8
1,043.2
305.2
2,895.0
310.0
77.7
194.0
199.3
541.0
1,099.8
328.2
2,938.4
322.0
75.8
198.0
206.1
546.0
117.7
98.7
392.9
520.7
126.2
107.6
458.4
637.7
138.1
125.8
491.8
651.3
157.3
131.9
549.2
710.5
157.3
131.9
549.2
710.5
163.6
134.1
564.4
710.8
166.5
136.4
567.5
720.0
1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
1990
n.a.
5. Consists of investments of foreign balances and international accounts in the
United States.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, Treasury
Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions1
Millions of dollars, daily averages
1993, week ending
1993
Item
July
Aug.
Sept.
Sept. 1
Sept. 8
Sept. 15
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Oct. 27
IMMEDIATE TRANSACTIONS 2
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2 Less than 3.5 years
3 3.5 to 7.5 years
4 7.5 to 15 years
15 years or more
5
Federal agency securities
Debt, by maturity
Less than 3.5 years
6
7
3.5 to 7.5 years
7.5 years or more
8
Mortgage-backed
Pass-throughs
9
All others
10
11
12
13
14
15
16
By type of counterparty
Pnmary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
38,518
39,177
43,379
39,068
41,911
43,125
45,908
44,651
35,833
39,342
42,655
38,764
41,112
38,413
21,192
17,907
50,523
39,718
26,974r
27,557
49,496r
48,289
26,328
22,996
44,119
41,199
27,482
24,553
44,623
44,681
28,220
25,125
55,450
50,829
30,835
25,866
53,332
49,365
22,532
22,962
47,456
51,469
25,102
19,735
35,606
35,824
20,179
15,049
35,563
35,115
24,573
18,073
41,957
39,036
28,250
21,467
57,840
57,604
26,402
20,347
6,647
605
712
8,361
512
650
8,633
661
653
8,778
540
640
7,256
790
756
8,084
450
779
7,887
584
391
10,687
864
689
10,199
684
759
9,803
860
441
10,069
724
623
9,740
719
470
19,563
3,266
18,926
3,079
20,594
3,259
14,345
4,070
22,011
3,493
28,261
4,066
18,158
2,121
16,316
3,273
16,412
3,107
28,624
2,648
22,128
2,706
18,318
2,879
97,390
114,310"
119,952
107,725
111,771
129,147
128,459
117,580
88,243
92,246
106,704
125,465
1,073
10,157
1,554
9,462
1,466
9,745
1,497
7,318
1,487
9,210
1,245
12,866
1,361
9,445
1,751
8,015
1,548
8,865
1,588
12,217
1,414
11,401
1,442
9,779
59,751
69,638
70,536r
68,695
72,789
76,958
65,639
70,834
54,247
60,419
66,660
75,491
6,891
12,672
7,968
12,544
8,481
14,108
8,461
11,097
7,315
16,294
8,069
19,461
7,501
10,833
10,488
11,575
10,095
10,654
9,517
19,056
10,002
13,433
9,487
11,418
2,511
1,906
2,504
2,090
2,637
3,364
2,080
1,980
2,817
2,301
2,446
2,247
2,055
1,382
2,751
11,588
2,264
2,062
3,398
14,008
2,254
2,220
3,040
13,179
2,582
3,435
3,112
15,486
2,197
3,075
3,198
12,076
2,562
2,174
3,155
14,267
2,997
2,388
3,409
15,204
1,406
1,359
2,626
11,387
1,140
1,279
1,976
8,669
1,613
1,276
2,513
8,064
1,469
1,384
2,963
10,784
2,049
1,906
4,374
14,608
86
105
23
80
124
35
150
90
30
104
81
82
63
59
33
71
133
22
212
123
44
271
47
6
25
65
56
45
117
7
26
176
47
60
77
5
23,296
2,026
24,157
2,093
26,519
1,965
22,966
2,281
25,088
1,221
36,462
1,863
22,545
2,647
22,621
1,917
25,431
1,963
33,701
2,044
23,164
2,346
23,489
2,668
1,512
801
1,019
2,503
1,205
739
982
2,758
1,768
852
863
3,645
1,513
744
536
3,033
1,940
1,217
1,103
4,472
2,149
486
998
3,446
1,659
975
847
3,804
1,484
903
724
3,564
1,395
467
337
1,556
1,685
1,017
659
1,519
2,158
542
600
1,956
2,324
769
776
1,935
533
598
805
842
942
855
685
786
662
1,344
771
798
FUTURES AND FORWARD
TRANSACTIONS
By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18 Less than 3.5 years
19 3.5 to 7.5 years
20 7.5 to 15 years
15 years or more
21
Federal agency securities
Debt, by maturity
Less than 3.5 years
22
3.5 to 7.5 years
23
24
7.5 years or more
Mortgage-backed
Pass-throughs
25
Others 3
26
OPTIONS TRANSACTIONS'
27
28
29
30
31
By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages are based on the number of trading
days in the period. 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. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed 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.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed agency securities are included
when the time to delivery is more than thirty business days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, "n.a." indicates that data are not published
because of insufficient activity.
Data for several types of options transactions—U.S. Treasury securities, bills;
Federal agency securities, debt; and federal agency securities, mortgage-backed,
other than pass-throughs—are no longer available because activity is insufficient.
A32
DomesticNonfinancialStatistics • January 1994
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Positions and Financing1
Millions of dollars
1993
July
Aug.
1993, week ending
Sept.
Sept. 1
Sept. 8
Sept. 15
Sept. 22
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Positions2
N E T IMMEDIATE POSITIONS 3
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3
3.5 to 7.5 years
7.5 to 15 years
4
15 years or more
5
Federal agency securities
Debt, by maturity
6
Less than 3.5 years
7
3.5 to 7.5 years
7.5 years or more
8
Mortgage-backed
9
Pass-throughs
10
All others
Other money market instruments
11 Certificates of deposit
12 Commercial paper
13 Bankers acceptances
5,394
8,508
7,234
3,332
7,222
12,628
1,608
4,052
2,934
7,825
9,704
-17,643
-5,042
10,367
7,631
-21,963
-1,200
6,931
6,161
l,901r
-21,050 r
—3,312rr
10,167
4,760
-21,034
-781
8,895
8,450
-21,637
-927
10,688
-1,040
-23,757
-3,511
11,987
570
-21,007
-3,378
10,520
192
-18,010
-5,241
7,911
-4,939
-19,593
-7,181
8,386
-5,890
-19,856
-7,145
6,774
-4,445
-24,027
-6,536
5,749
7,924
3,023
3,568
9,611
2,899
3,783
9,784r
3,289
4,083r
8,775
2,990
4,014
10,149
3,112
4,412
10,093
3,172
4,011
8,002
3,262
3,787
10,882
3,619
4,085
10,855
3,523
4,420
10,072
3,533
4,738
9,762
3,164
4,711
37,760
25,204
44,748
24,588
53,317
31,825r
39,910
29,378
45,730
29,992
60,078
26,638
58,332
35,482
52,459
34,529
43,411
38,881
56,529
37,808
55,381
36,261
2,673
6,669
1,114
3,251
7,093
1,135
2,705
7,53<y
1,103
3,0%
8,627
931
2,910
6,646
1,097
2,518
10,216
1,016
2,621
7,351
1,051
2,545
5,800
1,242
3,903
7,186
1,307
3,558
6,437
1,515
2,937
5,908
1,441
-6,396
-7,235
-4,347 r
-5,920
-4,695
-6,187
-6,707
-494
2,085
2,336
3,568
-1,787
4,012
4,208
-6,493
-1,741
3,649
6,921r
-8,172
-1,829
933
8,185
-6,532
-1,649
778
7,130
-6,138
-1,983
387
7,605
-8,249
-2,641
2,311
8,988
-7,281
-1,691
981
8,229
—6,%2
-1,177
-2
7,921
-3,979
-769
1,462
9,232
-4,511
-366
1,949
8,724
-4,112
-886
3,129
9,648
-3,325
4
-72
33
-18
11
36
107
-7
0
44
-52
132
120
-56
30
187
94
16
83
-19
-91
32
-23
30
209
-123
-27
-65
-153
2
-120
-153
114
-20,369
2,782
-178,5%
-26,253
5,513
-198,937
-40,809
7,468
-214,188
-22,547
3,759
-198,623
-31,821
3,980
-226,976
-48,895
7,335
-219,241
-45,603
10,297
-206,633
-40,809
9,149
-205,128
-31,831
4,950
-221,167
-41,628
5,392
-220,504
-41,404
7,915
-221,134
FUTURES AND FORWARD POSITIONS5
14
15
16
17
18
19
20
21
22
23
24
By type of deliverable security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others^
Certificates of deposit
Financing6
Reverse repurchase agreements
25 Overnight and continuing
26 Term
244,345
406,245
246,671
400,077
241,660
402,712
235,540
366,433
246,529
385,406
249,390
397,434
235,263
417,557
236,949
413,529
237,334
417,459
244,572
429,074
239,145
430,858
Repurchase agreements
27 Overnight and continuing
28 Term
452,885
370,581
468,541
371,613
471,885
367,019*
467,950
332,424
475,861
339,056
489,909
360,260
470,579
389,234
454,531
384,472
452,427
367,000
463,766
381,464
466,059
385,927
Securities borrowed
29 Overnight and continuing
30 Term
128,685
46,807
134,639
45,868
134,602
41,872
137,165
46,154
139,030
42,470
140,492
42,281
132,625
40,553
126,246
41,533
132,134
42,157
137,014
43,025
139,900
44,555
Securities loaned
31 Overnight and continuing
32 Term
5,355
773
5,760
981
6,593
1,477
6,891
1,061
5,735
1,136
6,330
1,612
7,869
1,799
6,511
1,377
5,773
1,790
6,592
1,722
5,119
1,766
Collateralized loans
33 Overnight and continuing
16,304
16,061
16,964
12,566
16,452
16,779
16,173
19,040
17,252
18,076
19,341
MEMO: Matched book
Reverse repurchase agreements
34 Overnight and continuing
35
161,088
351,971
166,820
342,286
162,477r
344,9891
162,073
310,758
160,205
332,579
169,168
340,953
162,151
358,656
159,473
349,730
155,254
365,500
158,602
375,552
162,876
373,577
Repurchase agreements
36 Overnight and continuing
37 Term
227,742
278,162
224,1%
274,942
216,545r
269,078r
213,048
241,341
222,078
246,361
223,808
262,542
212,838
288,254
207,614
282,135
218,940
275,941
233,250
289,399
239,395
286,175
7
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities that settle
on the issue date of offering. Net immediate positions of 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.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (iOs),
and principal-only securities (POs).
5. Futures positions reflect standardized agreements arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency securities are included when the
time to delivery is more than thirty business days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or different types of collateralization.
NOTE. Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.
Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1993
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department
4 Export-Import Bank ,3
5 Federal Housing Administration
6 Government National Mortgage Association certificates of
participation
7 Postal Service6
8 Tennessee Valley Authority
United States Railway Association
9
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks 8
15 Student Loan Marketing Association 9
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation
1989
1990
1991
1992
Apr.
May
June
July
Aug.
411,805
434,668
442,772
483,970
502,368
509,632
512,072
522,494
544,642
35,664
7
10,985
328
42,159
7
11,376
393
41,035
7
9,809
397
41,829
7
7,208
374
42,619
7
6,749
263
42,738
7
6,749
271
42,218
7
6,258
283
44,656
7
6,258
97
44,816
7
6,258
154
0
6,445
17,899
0
0
6,948
23,435
0
0
8,421
22,401
0
0
10,660
23,580
0
0
10,440
25,160
0
0
10,440
25,271
0
0
10,182
25,488
0
0
10,182
28,112
0
0
10,182
28,215
0
375,428
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,996
442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,996
459,749
117,363
47,903
165,135
51,210
38,209
8,170
1,261
29,9%
466,894
120,172
46,555
170,768
51,538
37,%7
8,170
1,261
29,9%
469,854
127,289
35,572
176,527
51,686
38,884
8,170
1,261
29,9%
477,838
125,448
42,291
180,730
51,698
37,801
8,170
1,261
29,9%
499,826
129,808
55,421
184,924
51,406
38,397
8,170
1,261
29,9%
134,873
179,083
185,576
154,994
140,807
137,215
132,953
132,307
128,616
10,979
6,195
4,880
16,519
0
11,370
6,698
4,850
14,055
0
9,803
8,201
4,820
10,725
0
7,202
10,440
4,790
6,975
0
6,743
10,440
4,790
6,675
0
6,743
10,440
4,790
6,575
0
6,252
10,182
4,790
6,575
0
6,252
10,182
4,790
6,575
0
6,252
10,182
4,790
6,325
0
53,311
19,265
23,724
52,324
18,890
70,896
48,534
18,562
84,931
42,979
18,172
64,436
41,629
18,008
52,522
40,379
17,970
50,318
39,729
17,895
47,530
39,129
17,883
47,496
38,619
17,897
44,551
MEMO
19 Federal Financing Bank debt13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the Small Business Administration, and the
Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
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.
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 in order 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.
A34
DomesticNonfinancialStatistics • January 1994
1.45 NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1993
Type of issue or issuer,
or use
1990
1 All issues, new and refunding1
1991
1992
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
120,339
154,402
215,191
28,920
20,956
27,178
28,529
21,603
21,258
21,555
19,464
By type of issue
2 General obligation
3 Revenue
39,610
81,295
55,100
99,302
78,611
136,580
8,254
20,666
8,272
12,684
9,452
17,726
8,415
20,114
7,713
13,890
6,065
15,193
5,455
16,100
7,398
12,066
By type of issuer
4 State
it Special district or statutory authority 2
6 Municipality, county, or township
15,149
72,661
32,510
24,939
80,614
48,849
25,295
129,686
60,210
2,139
19,804
6,977
1,463
9,923
9,570
2,910
15,441
8,827
3,562
18,132
6,835
2,944
10,043
8,616
2,319
10,632
8,307
2,758
11,321
7,476
n.a.
n.a.
n.a.
103,235
116,953
120,272
9,741
4,941
8,681
11,208
7,737
7,029
8,750"
7,313
17,042
11,650
11,739
23,099
6,117
34,607
21,121
13,395
21,039
25,648
8,376
30,275
22,071
17,334
20,058
21,7%
5,424
33,589
1,482
2,111
538
1,556
765
3,264
833
699
806
942
134
1,971
1,5%
813
955
1,756
601
3,665
2,208
772
1,629
2,073
1,042
3,046
1,723
653
922
1,555
429
2,455
1,883
1,062
1,646
681
212
1,545
1,886
789
1,255
2,199
329
1,892
547
304
593
1,764
518
3,726
7 Issues for new capital
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46 NEW SECURITY ISSUES
SOURCES. Securities Data Company beginning January 1993;
Dealer's Digest before then.
Investment
U.S. Corporations
Millions of dollars
Type of issue, offering,
or issuer
1993
1990
1991
1992
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
340,049
465,243
559,449
59,427
56,265
40,654
42,961
65,574
48,945r
53,859"
64,278
299,884
389,822
471,125
49,367
47,427
34,403
34,263
55,780
39,177r
44,597"
53,900
188,848
86,982
23,054
286,930
74,930
27,%2
377,681
65,853
27,591
47,084
n.a.
2,283
42,223
n.a.
5,203
31,199
n.a.
3,204
30,934
n.a.
3,329
51,183
n.a.
4,597
36,527"
n.a.
2,650
41,000"
n.a.
3,799"
49,000
n.a.
4,900
51,779
40,733
12,776
17,621
6,687
170,288
86,628
36,666
13,598
23,945
9,431
219,750
81,998
42,869
9,979
48,055
15,394
272,830
8,150
2,268
248
5,624
2,890
30,187
8,137
2,695
1,067
7,058
3,270
25,201
6,515
2,194
123
5,767
2,015
17,788
3,690
3,015
685
2,857
1,820
22,1%
8,397
2,505
948
5,849
2,473
35,608
2,448
5,491
605"
5,662"
2,331
22,639"
6,278
2,331
723
3,214"
2,979
29,072"
4,036
1,916
288
5,113
2,237
40,310
12 Stocks2
40,175
75,424
88,325
10,060
8,838
6,251
8,698
9,794
9,768
9,262
10,378
By type of offering
13 Public preferred
14 Common
15 Private placement
3,998
19,442
16,736
17,085
48,230
10,109
21,339
57,118
9,867
1,898
8,161
n.a.
1,647
7,191
n.a.
702
5,549
n.a.
3,124
5,574
n.a.
876
8,918
n.a.
2,113
7,655
n.a.
3,376
5,886
n.a.
1,323
9,055
n.a.
5,649
10,171
369
416
3,822
19,738
24,111
19,418
2,439
3,474
475
25,507
22,723
20,231
2,595
6,532
2,366
33,879
2,616
2,021
64
350
0
5,009
1,741
2,488
336
743
7
3,522
1,387
1,564
250
412
30
2,579
1,413
2,836
111
753
279
3,307
1,982
2,025
168
893
65
4,660
1,810
2,505
114
495
n.a.
4,844
1,961
1,456
405
582
115
4,732
2,216
2,122
153
%2
230
4,503
1 All issues'
2 Bonds
2
By type of offering
i Public, domestic
4 Private placement, domestic
5 Sold abroad
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., Securities Data Company, and the
Board of Governors of the Federal Reserve System.
Securities Market and Corporate Finance
A35
Net Sales and Assets 1
1.47 OPEN-END INVESTMENT COMPANIES
Millions of dollars
1993
1991
Item
1992
Feb.
Mar.
Apr.
May
June
Aug. r
July
Sept.
1 Sales of own shares2
463,645
647,055
60,676
69,080
66,766
60,504
68,373
72,503
73,032
70,061
2 Redemptions of own shares
3 Net sales
342,547
121,098
447,140
199,915
39,684
20,992
47,414
21,666
46,518
20,248
38,752
21,759
46,923
21,650
44,922
27,581
46,382
26,650
49,269
20,793
4 Assets4
808,582
1,056,310
1,116,784
1,154,445
1,178,663
1,219,863
1,255,377
1,284,842
1,343,920
1,365,343
5 Cash5
6 Other
60,292
748,290
73,999
982,311
79,763
1,037,021
81,536
1,072,910
87,140
1,091,523
85,677
1,134,186
84,177
1,171,200
93,345
1,191,497
92,771
1,251,149
96,918
1,268,424
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 new
companies.
1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of
capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out
of money market mutual funds within the same fund family.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992r
1991r
Account
1990
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
1991
1993
1992
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
380.6
365.7
138.7
227.1
153.5
73.6
369.5
362.3
129.8
232.5
137.4
95.2
407.2
395.4
146.3
249.1
150.5
98.6
378.8
373.5
133.4
240.1
133.9
106.1
409.9
404.3
147.0
257.3
138.0
119.3
411.7
409.5
153.0
256.5
146.1
110.4
367.5
357.9
130.1
227.8
155.2
72.7
439.5
409.9
155.0
254.9
162.9
92.0
432.1
419.8
160.9
258.9
167.5
91.4
458.1
445.6
173.3
272.3
168.5
103.9
470.3
446.8
172.4
274.4
169.7
104.7
-11.0
4.9
2.2
-5.3
17.1
1.9
3.5
-4.6
10.2
-13.7
16.0
-7.8
17.4
4.9
24.7
-12.7
25.1
-12.2
24.7
-.2
23.7
25.9
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.50 NONFARM BUSINESS EXPENDITURES
New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992
Industry
1991
1992
1993
19931
Ql
Q2
Q3
Q4
Ql
Q2
Q3
Q41
1 Total nonfarm business
528.39
546.60
585.20
534.85
541.41
547.40
559.24
564.13
579.79
598.91
597.98
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
77.64
105.17
73.32
100.69
80.94
98.95
73.98
99.85
74.07
97.91
72.09
100.77
73.30
103.56
79.11
95.94
80.88
96.21
82.73
103.96
81.06
99.69
10.02
8.88
9.29
8.92
9.20
8.98
8.47
8.89
9.10
9.65
9.52
5.95
10.17
6.54
6.67
8.93
7.04
6.57
7.25
9.16
6.63
8.76
6.44
6.32
9.65
7.19
6.70
9.69
7.52
7.04
7.60
6.97
6.00
7.30
9.17
6.00
6.54
9.04
7.17
8.35
8.90
7.09
6.82
9.53
43.76
22.82
246.32
48.22
23.99
268.84
52.11
23.54
297.39
46.11
22.89
261.27
48.35
24.29
264.46
48.17
24.01
269.46
49.57
24.50
278.24
49.92
23.59
284.21
50.51
24.04
297.46
54.81
23.06
300.26
53.20
23.46
307.62
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and
insurance, personal and business services, and communication.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A36
DomesticNonfinancialStatistics • January 1994
1.51 DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
1991
Account
1990
1991
1992
1993
1992
Q4
Q1
Q2
Q3
Q4
Q1
Q2
469.3
111.3
290.7
67.2
ASSETS
Accounts receivable, gross 2
t
Consumer
3
Business
4
Real estate
1
492.3
133.3
293.6
65.5
480.6
121.9
292.9
65.8
482.1
117.1
296.5
68.4
480.6
121.9
292.9
65.8
475.6
118.4
290.8
66.4
476.7
116.7
293.2
66.8
473.9
116.7
288.5
68.8
482.1
117.1
296.5
68.4
469.6
111.9
289.6
68.1
57.6
9.6
55.1
12.9
50.8
15.8
55.1
12.9
53.6
13.0
51.2
12.3
50.8
12.0
50.8
15.8
47.4
15.5
47.5*
13.8 R
5
6
LESS: Reserves for unearned income
Reserves for losses
7
8
Accounts receivable, net
All other
425.1
113.9
412.6
149.0
415.5
150.6
412.6
149.0
409.0
145.5
413.2
139.4
411.1
146.5
415.5
150.6
406.6
155.0
408.0*
156.6 R
9
Total assets
539.0
561.6
566.1
561.6
554.5
552.6
557.6
566.1
561.6
564.6r
31.0
165.3
42.3
159.5
37.6
156.4
42.3
159.5
38.0
154.4
37.8
147.7
38.1
153.2
37.6
156.4
34.1
149.8
29.5
144.5
LIABILITIES AND CAPITAL
10
11
Bank loans
Commercial paper
12
13
14
15
16
17
Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
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.
37.5
178.2
63.9
63.7
34.5
191.3
69.0
64.8
37.8
195.3
71.2
67.8
34.5
191.3
69.0
64.8
34.5
189.8
72.0
66.0
34.8
191.9
73.4
67.1
34.9
191.4
73.7
68.1
37.8
195.3
71.2
67.8
41.9
195.1
74.2
66.6
46.4 R
195.8 R
81.3
67.1
18
Total liabilities and capital
539.6
561.2
566.1
561.2
554.6
552.7
559.4
566.1
561.7
564.6r
July
Aug.
Sept.
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.
1.52 DOMESTIC FINANCE COMPANIES
2. Before deduction for unearned income and losses,
Consumer, Real Estate, and Business Credit1
Millions of dollars, amounts outstanding, end of period
1993
Type of credit
1990
1991
1992
Apr.
May
June
Seasonally adjusted
1 Total
522,474
519,910
534,845
529,552
523,111
522,981
523,539
525,744
527,207
2 Consumer
3 Real estate 2
4 Business
160,468
65,147
2%,858
154,822
65,383
299,705
157,707
68,011
309,127
156,441
69,803
303,308
153,275
66,3%
303,440
152,979
67,223
302,778
153,228
67,426
302,885
153,420
67,216
305,109
154,707
66,871
305,629
Not seasonally adjusted
5 Total
6 Consumer
7 Motor vehicles
8
Other consumer
Securitized motor vehicles4
9
10 Securitized other consumer 4
11 Real estate 2
12 Business
13 Motor vehicles
14
Retail 5 ....
15
Wholesale6
16
Leasing
17 Equipment
18
Retail....,
19
Wholesale6
20
Leasing
^
21 Other business
22 Securitized business assets
23
Retail
24
Wholesale
25
Leasing
525,888
523,192
538,158
531,380
524,180
526,818
523,389
521,094
161,360
75,045
58,213
19,837
8,265
65,509
299,019
92,125
26,454
33,573
32,098
137,654
31,968
11,101
94,585
63,773
5,467
667
3,281
1,519
155,713
63,415
58,522
23,166
10,610
65,760
301,719
90,613
22,957
31,216
36,440
141,399
30,962
9,671
100,766
60,900
8,807
576
5,285
2,946
158,631
57,605
59,522
29,775
11,729
68,410
311,118
87,456
19,303
29,962
38,191
151,607
32,212
8,669
110,726
57,464
14,590
1,118
8,756
4,716
155,440
53,977
58,546
32,527
10,390
69,356
306,584
88,692
17,228
32,064
39,400
145,877
32,170
8,642
105,066
56,144
15,870
1,434
9,745
4,691
152,708
53,878
55,433
33,174
10,223
66,150
305,322
89,317
16,513
32,242
40,562
145,237
32,384
8,556
104,297
54,487
16,281
1,375
9,590
5,316
152,995
55,592
55,737
31,642
10,023
67,230
306,593
90,263
16,995
31,787
41,481
146,487
32,775
8,482
105,230
53,987
15,856
1,324
9,539
4,993
153,733
56,817
56,259
30,787
9,870
67,649
302,007
87,745
17,561
27,442
42,743
146,408
33,209
8,224
104,975
53,243
14,611
154,218
55,247
56,616
32,856
9,498
67,565
299,311
84,921
17,264
25,136
42,520
146,404
33,676
8,059
104,669
53,536
14,451
1,220
8,329
4,902
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types of consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these
FRASER
balances are no longer carried on the balance sheets of the loan originator.
Digitized for
1,268
8,318
5,025
5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. 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.
1.53 MORTGAGE MARKETS
Real Estate
A37
Aug.
Sept.
Oct.
Mortgages on New Homes
Millions of dollars except as noted
1993
Item
1990
1991
1992
Apr.
May
June
July
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2,
Yield (percent per year)
6 Contract rate
7 Effective rate 1,3
8 Contract rate (HUD series)4
153.2
112.4
74.8
27.3
1.93
155.0
114.0
75.0
26.8
1.71
158.1
118.1
76.6
25.6
1.60
150.9
115.0
78.5
24.9
1.23
153.1
118.8
79.5
26.9
1.43
185.6
125.3
75.3
25.4
1.32
168.7
127.4
77.8
26.2
1.28
158.1
122.2
78.4
26.4
1.21
155.3
120.8
78.5
26.5
1.13
169.2
128.4
78.0
26.7
1.23
9.68
10.01
10.08
9.02
9.30
9.20
7.98
8.25
8.43
7.26
7.46
7.51
7.14
7.37
7.59
7.02
7.23
7.33
6.99
7.20
7.31
6.86
7.05
6.89
6.76
6.95
6.94
6.61
6.80
7.05
10.17
9.51
9.25
8.59
8.46r
7.71
7.56
6.78r
7.59
6.82r
7.52
6.74r
7.51
6.53r
7.02
6.42r
7.03
6.15r
7.08
6.11
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
113,329
21,028
92,302
122,837
21,702
101,135
142,833
22,168
120,664
163,719
22,682
141,037
166,849
22,691
144,158
171,232
22,656
148,576
174,674
22,761
151,913
177,992
22,834
155,158
180,057
22,810
157,247
182,524
22,978
159,546
Mortgage transactions (during period)
14 Purchases
23,959
37,202
75,905
6,761
7,526
9,131
7,854
8,176
8,866
8,780
Mortgage commitments (during period)
15 Issued7
16 To sell8
23,689
5,270
40,010
7,608
74,970
10,493
7,764
112
7,791
30
8,697
323
7,760
458
8,581
2,585
9,814
0
7,515
0
20,419
547
19,871
24,131
484
23,283
29,959
408
29,552
38,361
330
38,031
39,960
325
39,635
42,477
319
42,158
43,119
314
42,805
44,396
324
44,072
46,858
323
46,536
50,108
n.a.
n.a.
75,517
73,817
99,965
92,478
191,125
179,208
15,885
13,807
18,842
17,532
21,529
18,968
19,700
18,631
19,636
18,008
18,372
16,230
18,658
15,955
102,401
114,031
261,637
20,731
18,908
28,831
21,722
17,085
16,495
24,614
12
FHA/VA insured
13
Conventional
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)*
17 Total
18
FHA/VA insured
19
Conventional
Mortgage transactions (during period)
20 Purchases
21 Sales
Mortgage commitments (during period)9
22 Contracted
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 thirtyyear 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.
A38
DomesticNonfinancialStatistics • January 1994
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1992
Type of holder and property
1989
1990
1993
1991
Q2
Q3
Q4
Q1
Q2P
3,549,290
3,761,262
3,922,980
3,981,827
4,019,409
4,041,590
4,056,749
4,085,483
2,408,342
306,472
754,000
80,476
2,615,344
309,326
758,189
78,403
2,778,716
306,392
758,739
79,133
2,856,601
304,792
740,702
79,733
2,911,354
301,957
726,273
79,824
2,953,464
294,959
713,408
79,759
2,976,287
293,382
707,041
80,040
3,014,387
291,029
699,994
80,073
1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604
1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756
1,846,726
876,100
483,623
36,935
337,095
18,447
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044
1,803,836
884,962
493,199
37,724
334,488
19,552
659,624
508,545
74,788
75,947
345
259,250
12,041
29,226
208,665
9,318
1,793,492
891,445
502,075
38,757
330,705
19,908
648,178
501,604
73,723
72,517
334
253,869
11,779
28,591
204,132
9,366
1,769,267
894,593
507,830
38,027
328,854
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222
1,751,941
890,672
506,976
37,5%
326,128
19,972
617,141
480,398
70,656
65,755
332
244,128
11,316
27,466
1%,100
9,246
1,758,285
910,867
526,394
37,840
326,033
20,600
608,528
473,949
69,408
64,837
334
238,890
11,071
26,871
191,852
9,095
22 Federal and related agencies
23 Government National Mortgage Association
One- to four-family
74
Multifamily
?s
4
76 Farmers Home Administration
77
One- to four-family
Multifamily
78
79
Commercial
Farm
30
31 Federal Housing and Veterans' Administrations
37.
One- to four-family
33
Multifamily
34 Resolution Trust Corporation
35
One- to four-family
Multifamily
36
Commercial
37
38
Farm
39 Federal National Mortgage Association
One- to four-family
40
Multifamily
41
4?
Federal Land Banks
43
One- to four-family
Farm
44
45 Federal Home Loan Mortgage Corporation
One- to four-family
46
Multifamily
47
197,778
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
0
0
0
0
0
99,001
90,575
8,426
29,640
1,210
28,430
21,851
18,248
3,603
239,003
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
32,600
15,800
8,064
8,736
0
104,870
94,323
10,547
29,416
1,838
27,577
21,857
19,185
2,672
266,146
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,767
1,693
27,074
26,809
24,125
2,684
278,091
23
23
0
41,628
17,718
10,356
4,998
8,557
11,480
4,403
7,077
44,624
15,032
13,316
16,276
0
122,939
110,223
12,716
28,775
1,693
27,082
28,621
26,001
2,620
277,485
27
27
0
41,671
17,292
10,468
5,072
8,839
11,768
4,531
7,236
37,099
12,614
11,130
13,356
0
126,476
113,407
13,069
28,815
1,695
27,119
31,629
29,039
2,591
285,965
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,365
1,669
26,6%
33,665
31,032
2,633
287,182
45
37
8
41,630
18,149
10,235
4,934
8,313
13,027
5,631
7,3%
27,331
11,375
8,070
7,886
0
141,192
127,252
13,940
28,536
1,679
26,857
35,421
32,831
2,589
299,214
45
38
7
41,669
18,313
10,197
4,915
8,245
12,945
5,635
7,311
21,973
8,955
6,743
6,275
0
151,513
137,340
14,173
28,592
1,682
26,909
42,477
39,905
2,572
48 Mortgage pools or trusts 5
49 Government National Mortgage Association
One- to four-family
50
Multifamily
51
57, Federal Home Loan Mortgage Corporation
53
One- to four-family
Multifamily
54
55 Federal National Mortgage Association
56
One- to four-family
Multifamily
57
4
58 Farmers Home Administration
One- to four-family
59
Multifamily
60
Commercial
61
Farm
67
63 Private mortgage conduits
One- to four-family
64
65
Multifamily
Commercial
66
Farm
67
917,848
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
48,299
43,325
462
4,512
0
1,079,103
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
59,232
53,335
731
5,166
0
1,250,666
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177
84,000
3,698
6,479
0
1,341,338
422,922
413,828
9,094
382,797
376,177
6,620
413,226
403,940
9,286
43
9
0
18
15
122,350
105,700
5,796
10,855
0
1,385,460
422,255
413,063
9,192
391,762
385,400
6,362
429,935
420,835
9,100
41
9
0
18
14
141,468
123,000
5,796
12,673
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,461,612
421,514
412,798
8,716
420,932
415,279
5,654
457,316
448,483
8,833
44
10
0
18
16
161,805
137,000
6,662
18,143
0
1,472,844
413,166
404,425
8,741
422,882
417,646
5,236
465,220
456,645
8,575
45
10
0
19
16
171,532
145,000
7,410
19,121
0
6
68 Individuals and others
69 One- to four-family
Multifamily
70
71 Commercial
72 Farm
502,127
318,782
84,228
83,272
15,846
528,841
348,547
85,926
80,636
13,732
559,442
367,546
83,778
93,126
14,992
558,562
368,068
86,174
89,456
14,864
562,971
374,984
85,942
87,802
14,243
560,812
372,613
85,410
88,217
14,572
556,015
367,072
85,561
88,077
15,304
555,140
367,378
85,947
86,941
14,874
1 AU holders
7
3
4
5
By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm
By type of holder
6 Major financial institutions
7 Commercial banks
One- to four-family
8
Multifamily
Commercial
10
Farm
11
Savings institutions3
1?
One- to four-family
13
14
Multifamily
IS
Commercial
Farm
16
17 Life insurance companies
18
One- to four-family
19
Multifamily
Commercial
?n
Farm
21
1. Based on data from various institutional and governmental sources; figures
for some quarters estimated in part by the Federal Reserve. Multifamily debt
refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations.
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. 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.
SOURCES. 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, are estimated mainly by the
Federal Reserve. Line 64, from Inside Mortgage Securities.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1
Millions of dollars, amounts outstanding, end of period
1993
Holder and type of credit
1990
1991
1992
Apr.
May
June
July
Aug.
Sept.
Seasonally adjusted
1 Total
738,765
733,510
741,093
752,193
750,293
752,428
757,465
762,503'
769,182
2 Automobile
3 Revolving
4 Other
284,739
222,552
231,474
260,898
243,564
229,048
259,627
254,299
227,167
262,463
261,450
228,280
264,007
262,690
223,596
265,388
263,338
223,701
267,468
266,938
223,058
268,784r
270,753"
222,967r
271,068
273,789
224,324
Not seasonally adjusted
752,883
749,052
756,944
746,447
744,778
748,830
753,645
763,268r
770,996
347,087
133,258
93,057
43,464
52,164
4,822
79,030
340,713
121,937
92,681
39,832
45,965
4,362
103,562
331,869
117,127
97,641
42,079
43,461
4,365
120,402
332,266
112,523
101,534
38,218
40,275
4,280
117,351
333,415
109,311
103,019
38,681
39,210
4,486
116,656
335,592
111,330
104,781
38,813
37,250
4,567
116,497
339,948
113,076
106,027
39,043
36,485
4,668
114,398
345,449"
111,864
108,095
39,688
35,919
4,728
117,525
349,830
112,645
110,125
39,842
34,985
4,706
118,863
By major type of credit3
13 Automobile
14 Commercial banks
15 Finance companies
16 Pools of securitized assets
284,903
124,913
75,045
24,620
261,219
112,666
63,415
28,915
259,964
109,743
57,605
33,878
260,857
111,121
53,977
36,262
262,860
112,700
53,878
36,431
265,345
114,901
55,592
34,701
267,646
116,729
56,817
33,673
270,495"
118,535"
55,247
35,569
273,713
120,757
55,057
36,149
17 Revolving
18 Commercial banks
19 Retailers
20 Gasoline companies
21 Pools of securitized assets
234,801
133,385
38,448
4,822
45,637
256,876
138,005
34,712
4,362
63,595
267,949
132,582
36,629
4,365
74,243
257,783
129,550
32,838
4,280
69,919
259,566
130,871
33,254
4,486
69,054
260,993
129,921
33,328
4,567
70,842
264,100
132,984
33,505
4,668
69,935
269,663"
135,466"
34,099
4,728
71,562
272,665
136,628
34,214
4,706
72,646
22 Other
23 Commercial banks
24 Finance companies
25 Retailers
26 Pools of securitized assets
233,178
88,789
58,213
5,016
8,773
230,957
90,042
58,522
5,120
11,052
229,031
89,544
59,522
5,450
12,281
227,807
91,595
58,546
5,380
11,170
222,352
89,844
55,433
5,427
11,171
222,491
90,770
55,737
5,485
10,954
221,899
90,235
56,259
5,538
10,790
223,109"
91,448"
56,616
5,589
10,394
224,618
92,445
57,588
5,628
10,068
5 Total
6
7
8
9
10
11
12
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets 2
1. The Board's series on amounts of credit covers most short- and
intermediate-term credit extended to individuals that is scheduled to be repaid (or
has the option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1993
Item
1990
1991
1992
Mar.
Apr.
May
June
July
Aug.
Sept.
INTEREST RATES
Commercial banks2
48-month new car
24-month personal
120-month mobile home
Credit card
11.78
15.46
14.02
18.17
11.14
15.18
13.70
18.23
9.29
14.04
12.67
17.78
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
8.17
13.63
12.00
17.15
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.98
13.45
11.53
16.59
n.a.
n.a.
n.a.
n.a.
Auto finance companies
5 New car
6 Used car
12.54
15.99
12.41
15.60
9.93
13.80
9.95
13.21
9.61
12.74
9.51
12.61
9.45
12.55
9.37
12.46
9.21
12.48
9.21
12.52
54.6
46.0
55.1
47.2
54.0
47.9
54.6
49.0
54.5
48.9
54.4
48.9
54.6
49.0
54.7
49.0
54.9
49.0
54.7
48.8
87
95
88
96
89
97
90
98
90
98
91
98
91
98
91
98
91
99
91
98
12,071
8,289
12,494
8,884
13,584
9,119
14,013
9,641
14,021
9,731
14,146
9,829
14,296
9,912
14,430
9,996
1
2
3
4
OTHER TERMS 3
Maturity (months)
7 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
14,324
10,104"
14,348
9,808
A40
DomesticNonfinancialStatistics • January 1994
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
1988
1989
1990
1991
1992
1993
1992
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors ..
752.6
723.0
631.0
475.5
581.5
411.4
603.0
584.6
611.3
526.9
400.2
667.2
By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages
155.1
137.7
17.4
146.4
144.7
1.6
246.9
238.7
8.2
278.2
292.0
-13.8
304.0
303.8
.2
272.5
268.7
3.8
323.8
335.0
-11.2
352.9
352.5
.4
299.1
290.1
9.0
240.1
237.4
2.7
229.6
226.4
3.2
348.2
344.1
4.1
5 Private
597.5
576.6
384.1
197.3
277.5
138.9
279.2
231.8
312.1
286.8
170.7
319.0
9
10
11
12
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
53.7
103.1
279.6
219.6
16.1
48.5
-4.6
50.1
44.7
11.9
54.3
65.3
73.8
269.1
212.5
12.0
47.3
-2.7
49.5
36.4
21.4
61.0
57.3
47.1
188.7
177.2
3.4
8.9
-.8
13.4
4.2
9.7
63.6
69.6
78.8
165.1
166.0
-2.5
.9
.7
-13.1
-46.8
-18.4
-37.8
65.7
67.3
120.0
176.0
-11.1
-45.5
.6
9.3
-4.7
8.6
11.2
77.6
60.2
145.2
176.5
.2
-28.6
-2.9
-10.7
-53.7
-5.0
-74.9
68.0
76.3
183.2
216.5
11.6
-46.9
2.0
-9.8
-43.6
2.5
2.6
76.6
77.8
71.0
111.6
-16.3
-24.6
.4
-14.7
27.3
-2.6
-3.5
75.8
61.3
135.0
203.3
-11.1
-57.6
.4
13.5
-24.3
9.3
41.5
42.4
53.7
90.9
172.7
-28.5
-53.0
-.3
48.2
22.0
25.4
4.2
62.1
75.0
95.8
126.2
-5.6
-26.0
1.1
20.0
-36.1
-24.2
-21.9
60.7
65.0
118.7
155.4
-10.6
-26.2
.1
30.7
35.9
34.8
-26.9
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
300.1
248.4
-10.0
57.2
201.3
48.9
276.7
236.3
.5
49.4
186.5
63.5
207.7
121.9
1.8
19.4
100.7
54.5
168.4
-33.4
2.4
-24.5
-11.3
62.3
215.9
2.2
.6
-39.5
41.0
59.4
193.8
-129.0
-4.6
-57.9
-66.5
74.0
202.9
14.2
2.1
-21.7
33.7
62.1
176.1
-11.2
3.2
-47.7
33.3
66.9
217.6
21.1
-.5
-37.5
59.1
73.5
267.0
-15.3
-2.5
-50.9
38.0
35.1
139.7
-39.9
-1.5
-28.8
-9.6
70.9
216.8
39.5
3.3
-36.6
72.8
62.7
23 Foreign net borrowing in United States
24 Bonds
25 Bank loans n.e.c
26 Open market paper
27 U.S. government loans
6.4
6.9
-1.8
8.7
-7.5
10.2
4.9
-.1
13.1
-7.6
23.9
21.4
-2.9
12.3
-7.0
13.9
14.1
3.1
6.4
-9.8
24.2
17.3
2.3
5.2
-.6
34.3
18.5
6.5
14.9
-5.6
1.9
4.9
1.5
-8.0
3.6
57.7
21.9
14.1
27.8
-6.1
37.8
20.3
3.9
13.1
.5
-.6
22.2
-10.3
-12.1
-.4
50.3
75.6
1.6
-21.7
-5.3
26.9
30.4
6.3
-.6
-9.2
28 Total domestic plus foreign
759.0
733.1
654.9
489.4
605.7
445.6
604.9
642.3
649.1
526.3
450.5
694.1
6
7
Financial sectors
29 Total net borrowing by financial sectors
239.9
213.7
193.5
150.4
209.8
190.5
167.6
204.6
294.8
172.2
148.7
121.2
119.8
44.9
74.9
.0
149.5
25.2
124.3
.0
167.4
17.1
150.3
-.1
145.7
9.2
136.6
.0
155.8
40.3
115.6
.0
150.4
32.6
117.9
-.1
126.8
11.5
115.3
.0
195.2
48.3
146.9
.0
169.3
67.7
101.6
.0
131.8
33.6
98.4
-.1
165.8
32.2
133.6
.0
62.6
68.7
-6.1
.0
34 Private
35 Corporate bonds
36 Mortgages
37 Bank loans n.e.c
38 Open market paper
39 Loans from Federal Home Loan Banks
120.1
49.0
.3
-3.8
54.8
19.7
64.2
37.3
.5
6.0
31.3
-11.0
26.1
40.8
.4
1.1
8.6
-24.7
4.6
56.8
.8
17.1
-32.0
-38.0
54.0
58.7
.0
-4.8
-.7
.8
40.1
73.7
1.2
3.8
-9.9
-28.6
40.8
28.6
-.4
22.0
1.1
-10.4
9.4
59.1
-1.5
-39.1
-14.8
5.8
125.5
73.0
.0
16.9
17.5
18.1
40.4
74.2
2.0
-19.2
-6.5
-10.1
-17.1
60.1
.9
-21.2
-75.5
18.6
58.6
53.6
.2
-10.6
-18.1
33.5
By borrowing sector
40 Government sponsored enterprises
41 Federally related mortgage pools
42 Private
43 Commercial banks
44 Bank affiliates
45 Funding corporations
46 Savings institutions
47 Credit unions
48 Life insurance companies
49 Finance companies
50 Mortgage companies
51 Real estate investment trusts (REITs)
52 Securitized credit obligation (SCO) issuers
44.9
74.9
120.1
-3.0
5.2
39.1
21.7
.0
.0
23.9
-6.2
1.8
37.6
25.2
124.3
64.2
-1.4
6.2
13.8
-15.1
.0
.0
27.4
3.0
1.3
28.9
17.0
150.3
26.1
-.7
-27.7
12.5
-30.2
.0
.0
24.0
-4.0
1.0
51.1
9.1
136.6
4.6
-11.7
-2.5
-13.6
-44.5
.0
.0
18.6
5.7
1.6
51.0
40.2
115.6
54.0
8.8
2.3
2.1
-6.7
.0
.0
-3.6
.1
.1
51.0
32.5
117.9
40.1
-9.5
7.0
-14.0
-34.0
.0
.0
39.0
1.9
3.3
46.5
11.5
115.3
40.8
3.2
10.9
16.1
-18.3
.0
.0
-35.6
27.5
1.7
35.3
48.3
146.9
9.4
5.5
-9.2
28.6
-5.4
.0
.0
-20.1
-35.3
.3
45.0
67.7
101.6
125.5
12.1
6.6
-5.7
11.2
.0
.2
21.2
14.4
.9
64.4
33.5
98.4
40.4
14.5
.8
-30.5
-14.4
.1
-.2
19.9
-6.4
-2.7
59.2
32.2
133.6
-17.1
5.4
21.1
-54.2
7.9
.0
.1
-33.1
-10.4
-1.4
47.5
68.7
-6.1
58.6
10.4
10.8
-5.7
18.3
.3
.6
-41.4
10.3
.7
54.3
30
31
32
33
By instrument
U.S. government-related
Government-sponsored enterprises securities
Mortgage pool securities
Loans from U.S. government
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued
1991
Transaction category or sector
1988
1989
1990
1991
1993
1992
1992
Q4
Q1
Q2
Q3
Q4
Ql
Q2
All sectors
53 Total net borrowing, all sectors
998.8
946.8
848.4
639.8
815.5
636.2
772.5
847.0
943.9
698.5
599.2
815.2
54
55
56
57
58
59
60
61
274.9
53.7
159.0
280.0
50.1
39.2
75.4
66.6
295.8
65.3
116.0
269.6
49.5
42.3
65.9
42.4
414.4
57.3
109.2
189.1
13.4
2.4
30.7
31.8
424.0
69.6
149.6
165.8
-13.1
-26.6
-44.0
-85.6
459.8
65.7
143.3
120.1
9.3
-7.2
13.1
11.4
423.0
77.6
152.4
146.5
-10.7
-43.4
.0
-109.3
450.6
68.0
109.8
182.8
-9.8
-20.2
-4.5
-4.2
548.1
76.6
158.8
69.5
-14.7
2.3
10.3
-3.8
468.5
75.8
154.6
135.0
13.5
-3.4
39.9
60.0
372.0
42.4
150.1
93.0
48.2
-7.5
6.8
-6.5
395.3
62.1
210.8
96.7
20.0
-55.7
-121.4
-8.7
410.8
60.7
149.0
118.9
30.7
31.6
16.1
-2.6
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
External corporate equity funds raised in United States
62 Total net share issues
63 Mutual funds
64 All other
65 Nonfinancial corporations
66 Financial corporations
67 Foreign shares purchased in United States
-98.6
-59.6
22.2
210.6
293.5
290.6
271.6
306.1
283.3
313.1
332.3
469.8
38.5
6.1
-104.7
-98.1
-129.5 -124.2
23.9
8.8
.9
17.2
67.9
-45.7
-63.0
9.9
7.4
150.5
60.1
18.3
11.2
30.7
215.4
78.2
26.8
20.8
30.6
208.9
81.7
48.0
10.0
23.7
174.4
97.2
46.0
22.1
29.1
240.7
65.3
36.0
18.2
11.2
223.3
60.0
11.0
14.2
34.8
223.0
90.1
14.0
28.6
47.5
263.8
68.5
27.0
9.5
31.9
357.5
112.3
32.0
30.0
50.3
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.
A42
D o m e s t i c Financial Statistics
•
J a n u a r y 1994
1.58 SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1991
Transaction category or sector
1988
1989
1990
1991
1992
1993
1992
Q4
Q1
Q2
636.2
Q3
Q4
Q1
Q2
N E T LENDING IN CREDIT MARKETS 2
1 Total net lending in credit markets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Government sponsored enterprises
Federally related mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank holding companies
Banks in U.S. affiliated areas
Private nonbank finance
Thrift institutions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Finance n.e.c
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities (ABSs)
Bank personal trusts
998.8
946.8
772.5
847.0
943.9
698.5
599.2
815.2
196.1
170.3
3.1
5.7
17.1
-10.6
108.6
704.8
33.2
74.9
10.5
156.5
126.4
29.4
-.1
.8
429.7
114.8
199.0
104.0
29.2
29.2
36.6
115.9
38.1
-7.4
11.9
19.8
10.7
.9
-8.2
35.9
14.3
122.6
162.8 -16.1
140.1 -49.7
78.6
-.7
-1.7
-4.2
13.6
-5.3
4.3
31.1
29.6
33.5
-3.1
33.7
10.5
84.4
82.1
25.6
742.9
569.9
619.8
-4.1
16.4
14.2
124.3
150.3
136.6
-7.3
8.1
31.1
125.1
177.2
84.3
146.1
94.9
39.2
26.7
28.4
48.5
2.8
-2.8
-1.5
1.6
4.5
-1.9
452.9
270.0
353.7
-86.6 -153.3 -123.0
257.4
181.6
234.3
94.4
83.2
101.8
26.5
29.7
32.3
81.1
17.2
85.3
44.7
43.5
33.5
282.2
241.7
242.3
32.0
28.4 -12.1
6.1
-8.0
11.4
41.4
23.8
90.3
.0
15.2
6.3
67.1
80.9
30.1
.5
-.7
-1.0
34.9
96.3
49.0
27.7
49.9
49.0
22.4
14.8
10.4
848.4
639.8
815.5
69.1 -70.7
136.6
40.2 -123.3
119.3
-2.4
-2.6
-3.9
36.3
11.0
25.1
-5.0
44.2
-3.9
-11.9
-20.0
15.2
100.0
41.3
94.4
658.2
685.6
526.3
68.7
24.9
92.7
115.6
117.9
115.3
27.9
16.9
28.5
94.8
120.4
85.1
69.8
56.9
76.3
16.5
64.9
-.5
5.6
.0
7.1
2.9
-1.5
2.2
351.3
405.5
204.8
-59.9
-56.7 -104.6
166.1
199.3
96.6
82.4
24.6
73.7
12.7
28.9
28.8
38.9
135.0 -33.8
32.2
10.8
27.8
245.2
263.0
212.8
1.7 -28.0
-5.3
.1
3.9
23.0
132.3
137.9
95.1
12.3
13.5
17.9
1.3
44.6
19.1
.6
-1.9
.3
40.2
50.5
-2.4
48.6
44.2
33.0
8.0
-1.8
32.2
93.4
52.1
-2.7
36.8
7.2
-23.0
138.9
637.7
38.6
146.9
19.0
72.7
13.3
56.7
-.4
3.2
360.5
-76.3
188.3
66.9
16.4
77.0
28.0
248.5
-16.0
-38.5
171.1
9.4
10.0
2.6
73.0
45.2
-8.4
-43.4
-80.7
-2.0
46.5
-7.1
-26.7
79.3
934.7
73.0
101.6
15.7
148.0
123.5
5.2
16.4
3.0
596.3
-43.6
221.7
85.1
-2.8
103.9
35.6
418.2
4.0
28.9
138.6
8.7
4.7
-.3
180.3
62.6
-9.3
89.9 -174.4
70.2 -144.7
-3.7
-1.0
36.9
-18.5
-7.5
-16.3
-24.1
-13.1
87.6
74.6
534.2
723.1
70.5
15.8
98.4
133.6
48.3
44.5
86.4
73.3
66.0
100.4
4.8
-12.5
-.6
-4.3
2.9
3.0
243.7
442.8
-15.2
-27.2
295.7
157.8
103.7
122.1
8.9
8.3
8.4
122.3
37.4
42.4
101.1
174.3
24.0
-34.0
-12.8
-20.9
124.5
156.8
13.1
8.9
-28.4
-65.0
-.1
2.9
-90.2
79.5
53.6
47.0
17.3
-.9
-83.5
-93.7
-3.0
5.1
8.1
-27.8
92.4
834.2
144.1
-6.1
32.6
147.9
142.0
3.8
-.4
2.6
515.5
15.0
166.8
119.5
10.6
-9.1
45.9
333.8
-22.8
21.0
191.2
13.0
51.8
.9
14.7
49.5
14.4
998.8
946.8
848.4
639.8
815.5
636.2
772.5
847.0
943.9
698.5
599.2
815.2
4.0
.5
25.3
140.1
2.9
278.6
43.2
121.6
53.1
21.9
23.7
15.2
6.1
-104.7
3.0
89.6
5.3
-24.0
7.2
199.2
24.8
4.1
28.8
309.7
-16.5
284.8
6.1
100.4
13.9
90.1
77.8
-3.6
38.5
-98.1
15.6
59.4
2.0
-31.1
23.1
292.1
2.0
2.5
25.7
158.1
34.2
98.1
44.2
59.0
-65.7
70.3
-24.2
14.6
67.9
-45.7
3.5
32.1
-4.5
-35.5
21.5
98.2
-5.9
.0
25.7
358.8
-3.7
48.2
75.8
16.7
-60.8
41.2
-16.5
-8.2
150.5
60.1
51.4
-2.2
-8.5
-12.5
29.8
169.9
-1.6
-5.0
-1.8
.5
28.4
19.2
228.4
419.6
51.8
10.3
9.3
48.5
122.7
102.8
-60.8
8.7
-80.0 -108.8
3.9
30.5
33.6
23.8
-10.2
-8.4
215.4
208.9
78.2
81.7
4.2
118.0
57.9 -16.3
7.7
-3.3
-13.3
12.9
-7.5
10.8
203.9
256.4
3.5
.1
33.8
118.0
32.1
-.7
86.4
-40.1
-72.9
44.4
8.1
-26.6
174.4
97.2
-66.7
79.8
8.5
-21.9
40.2
103.2
-6.5
.3
22.7
191.6
39.4
4.6
108.2
-81.8
-109.9
27.5
103.7
-43.2
240.7
65.3
-4.9
56.5
6.1
7.1
20.2
284.8
-8.5
.2
27.3
301.3
82.9
175.3
201.2
-83.6
-52.9
-22.0
89.6
43.0
223.3
60.0
82.8
57.8
6.5
-39.6
-55.4
214.4
5.1
-7.7
29.8
302.9
52.8
-142.2
95.1
-37.7
-84.2
-34.1
-67.1
-14.2
223.0
90.1
5.5
37.5
9.9
1.3
-35.2
213.3
3.4
.3
51.4
371.7
12.7
-4.6
30.1
-157.8
-.6
-37.7
180.3
-18.8
263.8
68.5
39.7
28.6
9.7
-15.9
-10.1
255.9
-3.5
1,632.0 1,883.8 1,306.5 1,501.3 1,676.4 1,798.4 1,374.0 1,774.9 2,072.2
1,484.7
1,674.2 2,286.7
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
35 Net flows through credit markets
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Investment in bank personal trusts
Miscellaneous
56 Total financial sources
Floats not included in assets (-)
57 U.S. government checkable deposits
58 Other checkable deposits
59 Trade credit
1.6
.8
-6.2
8.4
-3.2
-1.9
3.3
2.5
2.5
-13.1
2.0
8.1
.7
1.6
21.7
-88.2
-5.5
-14.1
11.3
13.8
25.0
Liabilities not identified as assets
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
-.1
-3.0
-29.6
6.3
47.3
-.2
-4.4
32.4
2.3
-77.8
.2
1.6
-31.5
.5
-23.6
-.6
26.2
5.2
-.2
-4.0
31.1
6.7
-15.2
-.1
16.6
66.7
.5
-7.6
8.2
-26.7
-7.6
-60.3
60
61
62
63
64
65 Total identified to sectors as assets
-9.5
2.0
11.3
4.4
-11.7
44.6
-3.6
2.3
5.7
.1
-21.8
-11.8
6.1
-11.4
-2.1
-.1
-18.2
84.1
7.0
-51.2
-.3
-5.3
45.5
23.8
10.7
-.1
-.6
21.4
3.7
40.0
-.1
9.3
136.6
-11.1
39.9
-.2
-2.3
(-)
.4
-32.1
-.4
2.2
24.4
-59.2
1,614.8 1,928.2 1,351.0 1,505.2 1,634.2 1,830.2 1,410.7 1,749.5 1,960.5 1,416.0 1,533.2 2,329.2
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.
.4
41.0
196.9
47.2
272.7
233.7
-27.6
-19.8
66.8
17.2
2.4
357.5
112.3
37.4
42.5
6.6
-7.3
35.8
332.1
2. Excludes corporate equities and mutual fund shares,
Flow of Funds
A43
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
1991
Transaction category or sector
1989
1990
1991
1993
1992
1992
Q4
Q2
Ql
Q3
Q4
Ql
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
10,054.3
10,692.0
11,160.6
11,742.1
11,160.6
11,285.2
11,422.7
11,576.1
11,742.1
11,817.8
11,973.8
By lending sector and instrument
7 U.S. government
3 Treasury securities
4 Agency issues and mortgages
2,251.2
2,227.0
24.2
2,498.1
2,465.8
32.4
2,776.4
2,757.8
18.6
3,080.3
3,061.6
18.8
2,776.4
2,757.8
18.6
2,859.7
2,844.0
15.8
2,923.3
2,907.4
15.9
2,998.9
2,980.7
18.1
3,080.3
3,061.6
18.8
3,140.2
3,120.6
19.6
3,201.2
3,180.6
20.6
5 Private
7,803.1
8,193.9
8,384.3
8,661.8
8,384.3
8,425.5
8,499.4
8,577.2
8,661.8
8,677.6
8,772.6
1,062.1
1,008.2
3,715.4
2,580.6
305.5
750.8
78.4
813.0
747.8
116.9
730.6
1,131.6
1,086.9
3,880.4
2,746.6
303.0
751.7
79.1
799.9
701.0
98.5
685.9
1,197.3
1,154.2
4,000.4
2,922.6
291.9
706.2
79.8
809.2
696.3
107.1
697.1
1,131.6
1,086.9
3,880.4
2,746.6
303.0
751.7
79.1
799.9
701.0
98.5
685.9
1,145.5
1,106.0
3,917.2
2,791.7
305.9
740.0
79.6
777.6
686.3
110.4
682.4
1,163.7
1,125.4
3,940.9
2,825.5
301.8
733.8
79.7
776.9
694.7
112.0
685.8
1,186.4
1,140.8
3,979.0
2,880.7
299.0
719.4
79.8
784.5
686.8
108.2
691.6
1,197.3
1,154.2
4,000.4
2,922.6
291.9
706.2
79.8
809.2
696.3
107.1
697.1
1,209.9
1,173.0
4,015.4
2,945.1
290.5
699.7
80.0
793.9
683.9
114.6
686.9
1,224.0
1,189.2
4,051.2
2,990.1
287.8
693.2
80.1
804.5
693.8
125.0
684.9
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
6
7
8
9
10
11
1?
n
14
15
16
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
1,004.7
961.1
3,512.8
2,380.5
304.3
747.6
80.5
799.5
750.8
107.1
667.0
17
18
19
70
71
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
3,371.4
3,615.7
134.4
1,199.6
2,281.7
816.1
3,594.8
3,728.5
134.9
1,219.0
2,374.6
870.5
3,762.7
3,688.7
134.8
1,192.3
2,361.6
932.8
3,976.0
3,693.5
135.4
1,152.9
2,405.3
992.2
3,762.7
3,688.7
134.8
1,192.3
2,361.6
932.8
3,782.6
3,697.6
133.1
1,186.1
2,378.5
945.3
3,836.6
3,701.8
136.4
1,175.7
2,389.7
961.0
3,898.7
3,695.5
137.1
1,163.4
2,394.9
983.1
3,976.0
3,693.5
135.4
1,152.9
2,405.3
992.2
3,979.4
3,691.2
132.8
1,144.6
2,413.9
1,007.0
4,043.2
3,707.8
136.0
1,137.3
2,434.5
1,021.6
261.2
285.1
298.9
313.8
298.9
288.7
304.7
312.9
313.8
324.8
333.2
130.8
22.0
70.5
65.5
136.2
25.5
77.4
65.6
141.3
26.5
80.7
64.4
146.9
23.9
77.7
65.4
165.8
24.3
72.3
62.5
173.4
25.9
72.1
61.8
11,573.9
11,727.4
11,889.0
12,055.9
12,142.6
12,307.0
23 Foreign credit market debt held in
United States
74
75
26
27
94.1
21.4
63.0
82.7
115.4
18.5
75.3
75.8
129.5
21.6
81.8
66.0
146.9
23.9
77.7
65.4
129.5
21.6
81.8
66.0
10,315.5
10,977.1
11,459.5
12,055.9
11,459.5
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
79 Total credit market debt owed by
financial sectors
32
33
34
35
36
37
38
39
By instrument
U.S. government-related
Government-sponsored enterprises
securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
40
41
47
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Government-sponsored enterprises
Federally related mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Funding corporations
Savings institutions
Credit unions
Life insurance companies
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Securitized credit obligation (SCO) issuers...
30
31
2,362.7
2,559.4
2,709.7
2,928.8
2,709.7
2,751.2
2,805.3
2,877.1
2,928.8
2,962.1
2,995.5
1,247.8
1,418.4
1,564.2
1,720.0
1,564.2
1,590.3
1,641.6
1,683.5
1,720.0
1,755.8
1,774.4
373.3
869.5
5.0
1,114.8
509.1
4.0
50.9
409.1
141.8
393.7
1,019.9
4.9
1,140.9
549.9
4.3
52.0
417.7
117.1
402.9
1,156.5
4.8
1,145.6
606.6
5.1
69.1
385.7
79.1
443.1
1,272.0
4.8
1,208.9
665.4
5.1
64.2
394.3
79.9
402.9
1,156.5
4.8
1,145.6
606.6
5.1
69.1
385.7
79.1
405.7
1,179.8
4.8
1,160.9
613.8
5.0
72.7
393.2
76.3
417.8
1,219.0
4.8
1,163.7
628.6
4.6
63.1
390.5
76.9
434.7
1,244.0
4.8
1,193.6
646.8
4.6
67.3
394.6
80.2
443.1
1,272.0
4.8
1,208.9
665.4
5.1
64.2
394.3
79.9
451.2
1,299.8
4.8
1,206.3
680.4
5.4
56.9
378.7
85.0
468.3
1,301.3
4.8
1,221.0
693.8
5.4
54.6
375.2
92.1
378.3
869.5
1,114.8
77.4
142.5
125.4
169.2
.0
.0
350.4
11.3
11.4
227.3
398.5
1,019.9
1,140.9
76.7
114.8
137.9
139.1
.0
.0
374.4
7.3
12.4
278.3
407.7
1,156.5
1,145.6
65.0
112.3
124.3
94.6
.0
.0
393.0
13.0
14.0
329.4
447.9
1,272.0
1,208.9
73.8
114.6
135.7
87.8
.0
.0
389.4
13.0
14.1
380.4
407.7
1,156.5
1,145.6
65.0
112.3
124.3
94.6
.0
.0
393.0
13.0
14.0
329.4
410.5
1,179.8
1,160.9
63.8
115.0
137.6
89.8
.0
.0
382.2
19.8
14.4
338.2
422.6
1,219.0
1,163.7
66.2
112.7
144.8
87.6
.0
.0
377.4
11.0
14.5
349.5
439.5
1,244.0
1,193.6
69.0
114.4
143.3
89.2
.0
.0
382.7
14.6
14.8
365.6
447.9
1,272.0
1,208.9
73.8
114.6
135.7
87.8
.0
.0
389.4
13.0
14.1
380.4
456.0
1,299.8
1,206.3
73.1
119.9
127.6
90.3
.0
.0
379.1
10.4
13.7
392.2
473.1
1,301.3
1,221.0
76.7
122.6
126.1
93.6
.1
.2
369.1
13.0
13.9
405.8
All sectors
53 Total credit market debt, domestic and foreign
54
55
56
57
58
59
60
61
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
12,678.2
13,536.5
14,169.3
14,984.7
14,169.3
14,325.1
14,532.7
14,766.1
14,984.7
15,104.7
15,302.5
3,494.1
1.004.7
1,564.3
3.516.8
799.5
823.0
579.2
896.5
3,911.7
1,062.1
1,673.5
3,719.7
813.0
818.3
609.9
928.4
4,335.7
1,131.6
1,823.1
3,885.5
799.9
791.7
565.9
835.8
4,795.5
1,197.3
1,966.4
4,005.6
809.2
784.5
579.0
847.2
4,335.7
1,131.6
1,823.1
3,885.5
799.9
791.7
565.9
835.8
4,445.2
1,145.5
1,850.5
3,922.2
777.6
780.9
574.1
829.0
4,560.1
1,163.7
1,890.2
3,945.5
776.9
783.3
579.9
833.0
4,677.6
1,186.4
1,928.9
3,983.6
784.5
780.6
583.6
841.0
4,795.5
1,197.3
1,966.4
4,005.6
809.2
784.5
579.0
847.2
4,891.2
1,209.9
2,019.1
4,020.7
793.9
765.2
565.5
839.2
4,970.9
1,224.0
2,056.4
4,056.6
804.5
774.3
572.3
843.6
1. Data in this table also appear in the Board's Z.l
release, tables L.2 through L.4. For ordering address,
(780) quarterly statistical
see inside front cover.
A44
1.60
Domestic Financial Statistics • January 1994
S U M M A R Y OF F I N A N C I A L ASSETS A N D LIABILITIES1
Billions of dollars except as noted, end of period
1991
Transaction category or sector
1989
1990
1991
1992
1993
1992
Q4
Ql
Q2
Q3
Q4
Ql
Q2
14,169.3
14,325.1
14,532.7
14,766.1
14,984.7
15,104.7
15,302.5
CREDIT MARKET DEBT OUTSTANDING 2
1 Total credit market assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Government-sponsored enterprises
Federally related mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank holding companies
Banks in U.S. affiliated areas
Private nonbank finance
Thrift institutions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds...
Finance n.e.c
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities (ABSs)
Bank personal trusts
12,678.2
13,536.5
14,169.3
14,984.7
2,096.4 2,246.8 2,205.8 2,280.8 2,205.8 2,211.7 2,219.0 2,212.2 2,280.8 2,228.3 2,189.6
1,326.8 1,454.6 1,380.0 1,426.1 1,380.0 1,389.1 1,381.1 1,371.7 1,426.1 1,389.6 1,342.3
54.9
56.5
50.7
48.3
50.7
49.3
48.7
48.1
48.3
47.0
46.3
181.2
175.8
180.1
216.4
180.1
180.0
192.6
216.4
204.5
209.8
199.5
561.5
595.1
531.9
590.0
595.1
593.3
596.6
590.0
587.3
591.1
592.9
205.4
239.1
235.1
247.0
247.0
223.4
251.2
246.3
235.1
229.5
239.2
897.5
778.7
936.2 1,030.4
936.2
959.8
994.5 1,014.3 1,030.4 1,040.5 1,063.6
9,597.7 10,153.1 10,780.3 11,438.5 10,780.3 10,902.4 11,072.9 11,300.3 11,438.5 11,606.5 11,825.9
466.4
355.4
371.8
397.7
397.7
419.9
429.0
466.4
446.3
464.1
499.2
869.5 1,019.9 1,156.5 1,272.0 1,156.5 1,179.8 1,219.0 1,244.0 1,272.0 1,299.8 1,301.3
241.4
300.4
233.3
272.5
272.5
271.8
282.6
300.4
285.2
303.6
318.2
2,647.4 2,772.5 2,856.8 2,951.6 2,856.8 2,864.5 2,887.6 2,928.2 2,951.6 2,960.9 3,001.8
2,371.9 2,466.7 2,506.0 2,575.7 2,506.0 2,517.3 2,525.2 2,560.0 2,575.7 2,594.6 2,633.8
242.3
270.8
319.2
335.8
319.2
328.2
313.3
328.9
335.8
326.7
328.2
13.4
17.5
16.2
11.9
11.9
13.6
13.1
17.5
17.5
16.4
15.9
17.1
21.6
19.7
22.5
19.7
20.2
21.0
22.5
23.9
21.8
23.3
5,491.9 5,747.4 6,096.7 6,448.1 6,096.7 6,166.5 6,254.8 6,396.6 6,448.1 6,578.0 6,705.4
1,475.4 1,324.6 1,197.3 1,137.3 1,197.3 1,168.6 1,150.5 1,141.3 1,137.3 1,127.9 1,132.7
2,320.7 2,473.7 2,708.0 2,874.1 2,708.0 2,736.4 2,788.0 2,843.3 2,874.1 2,953.0 2,999.9
1,022.0 1,116.5 1,199.6 1,282.0 1,199.6 1,222.3 1,243.6 1,264.7 1,282.0 1,317.3 1,352.3
317.5
344.0
376.3
389.0
376.3
383.5
387.6
389.0
393.8
386.9
391.2
607.4
731.5
590.2
692.7
692.7
703.4
684.2
729.4
731.5
760.0
762.3
390.9
405.9
439.4
471.6
439.4
446.3
453.3
462.2
471.6
482.2
493.7
1,695.9 1,949.1 2,191.5 2,436.6 2,191.5 2,261.5 2,316.2 2,412.0 2,436.6 2,497.1 2,572.8
497.0
468.6
484.9
486.6
484.9
479.5
480.5
477.8
486.6
473.7
473.5
22.6
14.6
25.9
26.1
25.9
31.7
22.1
29.3
26.1
20.8
26.1
360.2
307.2
450.5
582.8
450.5
478.8
522.0
674.7
557.5
582.8
626.6
37.1
37.1
52.4
64.6
52.4
56.8
59.2
61.3
64.6
66.9
70.1
372.7
402.7
291.8
404.1
402.7
413.5
424.0
404.1
404.5
404.0
408.8
7.7
8.4
6.8
7.4
6.8
6.8
7.5
7.4
7.4
8.1
8.3
142.9
177.9
226.9
267.1
226.9
244.6
226.3
289.6
267.1
290.6
287.0
219.3
269.1
318.1
366.7
318.1
326.3
337.6
366.7
378.4
390.8
353.3
212.9
198.0
223.3
231.2
223.3
231.3
229.2
231.2
226.9
231.0
234.6
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
35 Total credit market debt
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Other liabilities
Official foreign exchange
Treasury currency and special drawing rights
certificates
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Investment in bank personal trusts
Miscellaneous
54 Total liabUities
12,678.2
13,536.5
14,169.3
14,984.7
14,169.3
14,325.1
14,532.7
14,766.1
14,984.7
15,104.7
15,302.5
53.6
61.3
55.4
51.8
55.4
52.7
54.4
55.4
51.8
54.5
53.9
23.8
354.3
3,356.1
4,736.7
888.6
2,277.4
603.4
428.1
396.5
142.8
566.2
133.9
904.2
81.8
503.2
2,591.1
26.3
380.0
3,400.3
64.0
4,836.8
932.8
2,336.3
537.7
498.4
372.3
159.4
602.1
137.4
936.4
77.4
509.9
2,732.4
26.3
405.7
4,056.5
65.2
4,885.2
1,008.5
2,353.0
476.9
539.6
355.8
151.3
813.9
188.9
926.7
68.9
596.7
2,884.3
24.5
434.1
4,420.2
116.8
4,892.1
1,131.0
2,292.2
397.2
543.6
389.4
138.8
1,050.2
217.3
984.7
76.6
619.1
3,052.8
26.3
405.7
4,056.5
65.2
4,885.2
1,008.5
2,353.0
476.9
539.6
355.8
151.3
813.9
188.9
926.7
68.9
596.7
2,884.3
26.3
414.2
4,077.9
64.6
4,878.6
984.3
2,351.3
459.2
572.0
367.0
144.7
860.4
194.6
938.0
73.1
612.9
2,891.2
26.4
419.8
4,134.5
70.8
4,870.2
1,032.3
2,325.8
427.5
557.2
393.5
133.9
928.3
193.3
950.0
70.7
612.7
2,951.9
26.5
426.7
4,265.7
103.7
4,909.2
1,071.6
2,303.7
418.4
553.2
417.6
144.6
971.2
214.5
970.5
74.5
610.9
3,023.6
24.5
434.1
4,420.2
116.8
4,892.1
1,131.0
2,292.2
397.2
543.6
389.4
138.8
1,050.2
217.3
984.7
76.6
619.1
3,052.8
24.6
447.0
4,560.8
111.4
4,886.8
1,093.4
2,261.6
397.7
556.6
443.5
134.1
1,155.7
225.1
982.6
81.3
625.0
3,086.1
24.7
457.2
4,618.3
118.2
4,941.5
1,170.7
2,249.2
388.7
549.9
448.2
134.7
1,256.5
234.5
991.5
78.6
635.6
3,145.5
32.4
26,015.5
27,300.7
29,143.0
30,924.9
29,143.0
29,409.7
29,815.8
30,418.2
30,924.9
31,345.6
31,858.4
Financial assets not included in liabilities (+)
55 Gold and special drawing rights
56 Corporate equities
57 Household equity in noncorporate business
21.0
3,812.9
2,508.1
22.0
3,543.7
2,440.6
22.3
4,869.4
2,344.6
19.6
5,540.6
2,269.2
22.3
4,869.4
2,344.6
22.0
4,925.6
2,353.5
22.7
4,837.0
2,337.5
23.2
4,995.4
2,316.3
19.6
5,540.6
2,269.2
19.8
5,725.7
2,239.9
20.0
5,743.8
2,248.0
Floats not included in assets (-)
58 U.S. government checkable deposits
59 Other checkable deposits
60 Trade credit
6.1
26.5
-148.6
15.0
28.9
-146.0
3.8
30.9
-144.1
6.8
32.5
-121.8
3.8
30.9
-144.1
.9
29.5
-142.7
1.4
32.6
-151.1
4.0
23.3
-144.0
6.8
32.5
-121.8
3.4
22.2
-129.5
3.5
22.1
-141.9
-4.3
-31.0
13.7
20.6
-210.7
-4.1
-32.0
-17.7
17.8
-213.4
-4.8
-4.2
-12.5
15.5
-254.6
-5.0
-8.4
18.6
28.5
-265.7
-4.8
-4.2
-12.5
15.5
-254.6
-4.9
-1.8
-4.8
10.4
-295.1
-4.9
-4.0
19.6
18.9
-293.7
-5.0
-4.3
33.6
24.0
-279.6
-5.0
-8.4
18.6
28.5
-265.7
-5.0
-5.2
67.1
27.9
-291.7
-5.1
-4.5
71.9
28.3
-295.7
32,685.1
33,658.6
36,749.2
39,068.7
36,749.2
37,119.2
37,394.2
38,101.1
39,068.7
39,641.7
40,191.5
61
62
63
64
65
Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
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.6 and L.7. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares,
Selected Measures
2.10 NONFINANCIAL BUSINESS ACTIVITY
A45
Selected Measures
Monthly data seasonally adjusted, and indexes 1987=100, except as noted
1993
Measure
1990
1992
1991
Feb.
Mai.
Apr.
May
June
July
Aug.*
Sept.*
Oct.
1 Industrial production1
106.0
104.1
106.5
109.9
110.1
110.4
110.2
110.5
110.8'
110.9
111.4
112.2
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
105.5
107.0
103.4
112.1
101.2
106.8
103.1
105.3
102.8
108.9
96.5
105.5
105.6
108.2
105.2
112.7
97.6
107.9
109.2
112.4
108.5
118.0
99.3
110.9
109.5
112.7
108.6
118.7
99.6
110.9
109.6
112.8
108.1
119.7
100.0
111.5
109.3
112.5
107.3
119.9
99.7
111.6
109.4
112.7
107.3
120.4
99.4
112.1
110.0*
113.2r
107.7*
121.2r
100.4r
112.0
110.1
113.3
107.5
121.6
100.5
112.1
110.7
114.1
107.9
123.0
100.5
112.4
111.7
115.4
109.3
124.2
100.5
113.0
106.1
103.7
106.9
110.5
110.8
111.4
111.3
111.3
111.6r
111.8
112.5
113.5
81.1
77.8
78.8
?
3
4
5
6
7
Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing
(percent)
3
80.5
80.6
80.9
80.7
80.6
80.7r
80.7
81.1
81.7
r
95.0
94.0
94.0
91.0
104.0
98.0
99.0
101.0
103.0
95.3
89.7
96.3
4
11 Nonagricultural employment, total
17 Goods-producing, total
Manufacturing, total
13
Manufacturing, production workers . . .
14
15 Service-producing
16 Personal income, total
17 Wages and salary disbursements
Manufacturing
18
19 Disposable personal income5
Retail
sales6
20
107.3
101.2
100.6
100.2
109.8
122.9
121.4
113.4
123.1
120.2
106.2
96.6
97.1
96.3
109.3
127.6
124.5
113.7
128.6
121.3
106.4
94.9
95.8
95.3
110.0
135.3
131.5
117.8
136.8
127.lr
107.4
93.5
94.5
94.5
111.9
138.1
131.6
114.5
139.6
131.9
107.5
93.3
94.4
94.4
112.0
139.1
131.6
114.2
140.8
130.5
107.7
93.1
94.0
94.0
112.4
141.1
135.7
118.8
142.5
133.0
107.9
93.2
93.8
93.8
112.6
141.5
136.8
118.4
142.8
133.9
108.0
93.0
93.5
93.5
112.8
141.3
136.5
118.0
142.6
134.6
108.2
93.0
93.5
93.5
113.1
141.0*
137.1*
118.2
142.1
135.2
108.2
92.8
93.3
93.2
113.1
142.8
138.1
118.6
144.0
136.2
108.4
92.8
93.2
93.2
113.3
143.1
138.0
119.1
144.3
136.3
108.5
92.9
93.2
93.3
113.5
n.a.
n.a.
n.a.
n.a.
138.3
71 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)
130.7
119.2
136.2
121.7
140.3
123.2
143.1
124.5
143.6
124.7
144.0
125.5
144.2
125.8
144.4
125.5r
144.4
125.3
144.8
124.3
145.1
123.9
145.7
124.7
10 Construction contracts
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F.W. Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current
Business.
6. Based on data from U.S. Department of Commerce, Survey of Current
Business.
7. 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, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial Production Capacity
and Capacity Utilization since 1987," Federal Reserve Bulletin, vol. 79, (June
1993), pp. 5 9 0 - 6 0 5 .
2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1993
Category
1990
1991
1992
Mar.
Apr.
May
June
July
Aug.
Sept.*
Oct.
HOUSEHOLD SURVEY DATA
1
1 Noninstitutional population
189,686
191,329
193,142
194,456
194,618
194,767
194,933
195,104
195,275
195,453
195,626
7 Labor force 1
3 Civilian labor force
126,424
124,787
126,867
125,303
128,548
126,982
128,926
127,429
128,833
127,341
129,615
128,131
129,604
128,127
129,541
128,070
129,852
128,370
129,457
127,975
130,189
128,714
114,728
3,186
114,644
3,233
114,391
3,207
115,483
3,082
115,356
3,060
116,203
3,070
116,195
3,024
116,262
3,039
116,729
2,980
116,362
3,095
116,936
2,991
6,874
5.5
63,262
8,426
6.7
64,462
9,384
7.4
64,594
8,864
7.0
65,530
8,925
7.0
65,785
8,858
6.9
65,152
8,908
7.0
65,329
8,769
6.8
65,563
8,661
6.7
65,423
8,517
6.7
65,996
8,786
6.8
65,437
109,419
108,256
108,519
109,565
109,820
110,058
110,101
110,338
110,305*
110,467
110,644
17,935
600
4,481
5,724
25,707
6,574
29,756
18,788
17,863
600
4,517
5,720
25,758
6,585
29,977
18,800
17,827
602
4,577
5,719
25,827
6,588
30,099
18,819
17,771
596
4,574
5,711
25,861
6,590
30,175
18,823
17,760
595
4,593
5,709
25,916
6,604
30,320
18,841
17,718*
592
4,593*
5,690*
25,902*
6,602*
30,381*
18,827*
17,697
5%
4,595
5,695
25,952
6,614
30,419
18,899
17,709
597
4,625
5,692
25,963
6,634
30,533
18,891
4
5
Nonagricultural industries2
Agriculture
Number
6
Rate (percent of civilian labor force)
7
8 Not in labor force
ESTABLISHMENT SURVEY DATA
3
9 Nonagricultural payroll employment
in
ii
17
13
14
15
16
17
Mining
Contract construction
Transportation and public utilities
Trade
19,117
709
5,120
5,793
25,774
6,709
27,934
18,304*
18,455
689
4,650
5,762
25,365
6,646
28,336
18,402*
18,192
631
4,471
5,709
25,391
6,571
29,053
18,653*
1. 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.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received
pay for, the pay period that includes the twelfth day of the month; excludes
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and
Earnings.
A46
2.12
Domestic Nonfinancial Statistics • January 1994
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION1
Seasonally adjusted
1992
Q4
1993
Ql
Q2
1992
Q3r
Output (1987=100)
Q4
1993
Ql
Q2
1993
1992
Q3
Capacity (percent of 1987 output)
Q4
Ql
Q2
Q3r
Capacity utilization rate (percent)2
1 Total industry
108.3
109.7
110.4
111.0
134.2
134.8
135.3
135.9
80.7
81.4
81.6
2 Manufacturing
108.7
110.4
111.3
112.0
136.6
137.2
137.8
138.5
79.6
80.5
80.8
80.9
Primary processing3
Advanced processing
104.7
110.6
106.4
112.3
107.2
113.2
107.8
113.9
126.6
141.3
126.8
142.1
127.1
142.9
127.4
143.7
82.7
78.3
83.9
79.0
84.3
79.2
84.6
79.3
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment .
110.8
98.5
101.5
105.0
96.7
132.4
124.0
111.4
113.6
99.7
105.0
109.1
99.3
137.1
127.1
120.6
114.8
97.3
104.8
109.1
98.8
144.2
129.6
117.6
115.9
99.8
105.7
111.5
97.6
150.0
133.6
111.6
142.6
112.5
125.0
129.9
118.2
162.1
152.6
154.5
143.4
112.6
124.9
129.8
118.1
163.7
154.1
155.8
144.1
112.7
124.9
130.0
117.9
165.5
155.7
156.8
144.9
112.9
124.9
130.1
117.7
167.3
157.3
157.7
77.7
87.6
81.2
80.8
81.8
81.7
81.2
72.1
79.2
88.5
84.1
84.1
84.1
83.8
82.5
77.4
79.7
86.3
83.9
84.0
83.8
87.1
83.2
75.0
80.0
88.5
84.6
85.7
82.9
89.6
84.9
70.7
97.7
95.7
93.2
91.6
135.8
135.7
135.5
135.4
72.0
70.5
68.8
67.7
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
106.1
105.2
107.9
116.9
106.6
104.2
106.5
106.2
110.0
116.9
111.7
104.2
107.0
106.1
113.1
118.3
113.1
103.9
107.1
107.0
112.7
118.7
129.6
116.9
122.5
144.4
129.5
115.9
130.1
117.1
122.9
145.4
130.5
115.7
130.6
117.3
123.3
146.3
103.6
129.1
116.7
122.1
143.5
128.8
116.2
115.4
82.1
90.1
88.4
81.4
82.8
89.7
82.2
90.8
89.8
80.9
86.2
89.9
82.3
90.6
92.0
81.4
86.7
89.8
82.0
91.2
91.4
81.1
85.5
89.7
97.9
114.7
114.3
96.5
116.0
115.2
97.2
113.8
114.7
96.3
116.5
117.4
112.0
131.8
128.5
111.7
132.2
129.0
111.5
132.5
129.4
111.3
132.9
129.9
87.4
87.1
89.0
86.3
87.8
89.3
87.2
85.9
88.6
86.6
87.7
90.4
1973
1975
Previous cycle2
High
Low
High
Aug.r
Sept.r
Oct.P
3
4
20 Mining
21 Utilities
22 Electric
Low
Latest cycle3
High
Low
1992
Oct.
81.7
1993
May
June
Julyr
Capacity utilization rate (percent)2
1 Total industry
99.0
82.7
87.3
71.8
84.8
78.3
80.2
81.5
81.5
81.7
81.6
81.9
82.4
2 Manufacturing
99.0
82.7
87.3
70.0
85.1
76.6
79.2
80.7
80.6
80.7
80.7
81.1
81.7
Primary processing3
Advanced processing4
99.0
99.0
82.7
82.7
89.7
86.3
66.8
71.4
89.1
83.3
77.9
76.1
82.3
77.9
84.2
79.3
84.5
78.9
84.5
79.2
84.7
79.1
84.7
79.6
85.0
80.3
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts . . . .
Aerospace and miscellaneous
transportation equipment.
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
82.7
82.7
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
83.9
93.3
92.9
95.7
88.9
83.7
84.9
84.5
73.8
76.8
74.3
72.3
75.9
73.0
76.8
57.9
77.1
87.0
80.4
80.0
80.8
80.8
80.6
70.1
79.7
86.4
83.5
83.2
83.9
87.1
83.3
75.3
79.4
85.5
84.6
85.3
83.6
87.5
83.3
72.7
79.8
87.8
84.3
86.0
81.8
89.1
84.4
70.0
79.8
88.4
84.8
86.2
82.7
89.5
84.9
69.8
80.5
89.2
84.6
84.8
84.3
90.3
85.6
72.4
81.4
89.6
85.0
85.8
83.9
91.1
86.0
77.5
99.0
82.7
81.1
66.9
88.3
78.1
72.4
69.1
67.7
67.9
67.7
67.4
67.2
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
86.8
92.1
94.9
85.9
97.0
88.5
80.4
78.7
86.0
78.5
75.5
84.2
82.0
88.7
88.0
81.1
84.1
90.5
82.2
91.2
91.2
81.3
85.7
89.6
82.3
91.4
92.8
81.7
86.7
89.9
82.0
91.8
90.9
81.3
85.0
88.7
82.0
91.4
91.9
81.1
85.6
88.7
82.0
90.4
91.5
81.0
85.9
91.8
82.1
90.8
91.0
81.4
86.0
93.6
99.0
99.0
99.0
82.7
82.7
82.7
96.6
88.3
88.3
80.6
76.2
78.7
87.0
92.6
94.8
86.8
83.4
87.4
87.1
85.6
87.7
87.2
84.6
88.1
87.9
86.6
89.2
86.5
88.1
91.1
85.8
88.7
91.5
87.4
86.4
88.5
86.9
86.4
88.5
3
4
20 Mining
21 Utilities
22 Electric
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial
Production Capacity and Capacity Utilization Since 1987," Federal Reserve
Bulletin, vol. 79, (June 1993), pp. 590-605.
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;
petroleum refining; rubber and plastics; stone, clay, and glass; and primary and
fabricated metals.
4. Advanced processing includes food, tobacco, apparel, furniture, printing,
chemical products such as drugs and toiletries, leather and products, machinery,
transportation equipment, instruments, miscellaneous manufacturing, and ordnance.
5. Monthly highs, 1978 through 1980; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.
Selected Measures
2.13 INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1987
proportion
1993
1992
1992
avg.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
Jul/
Aug.r
Sept/
Oct."
Index (1987 = 100)
MAJOR MARKETS
100.0
106.5
107.5
108.4
108.9
109.3
109.9
110.1
110.4
110.2
110.5
110.8
110.9
111.4
112.2
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, A/C, and TV
Carpeting and furniture
Miscellaneous home goods . . .
Nondurable consumer goods
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
Fuels
Residential utilities
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
105.6
108.2
105.2
102.5
99.4
96.9
79.0
127.9
103.7
105.2
110.4
99.9
105.6
105.9
104.7
95.0
118.7
100.8
108.3
104.7
109.6
107.1
110.1
106.4
104.1
103.1
101.5
78.5
141.3
105.9
104.9
110.8
98.5
105.8
107.1
105.9
94.5
121.1
100.1
109.8
111.6
107.8
111.0
107.1
105.7
104.1
102.9
79.6
143.3
106.0
107.1
110.8
103.7
107.1
107.5
105.2
95.9
123.3
100.9
112.0
107.7
113.6
108.2
111.5
107.5
107.9
108.7
111.7
86.9
154.6
103.8
107.2
110.5
105.4
106.6
107.4
104.8
96.0
121.7
100.9
114.4
106.1
117.5
108.5
111.9
107.6
110.9
112.7
116.8
86.6
169.1
105.8
109.3
116.0
105.5
108.0
106.7
104.6
95.7
122.4
100.2
109.5
106.5
110.7
109.2
112.4
108.5
111.3
111.9
114.6
90.2
156.9
107.4
110.7
117.6
106.7
109.5
107.7
105.5
95.0
121.1
101.8
115.5
108.9
118.0
109.5
112.7
108.6
111.5
111.2
113.4
90.5
153.1
107.5
111.7
125.0
104.5
108.9
107.7
104.3
94.6
123.7
102.1
116.0
107.1
119.5
109.6
112.8
108.1
112.2
112.1
114.3
90.2
155.9
108.5
112.3
124.3
106.2
109.6
106.9
103.9
94.9
123.1
101.7
111.5
106.6
113.4
109.3
112.5
107.3
110.8
109.7
110.1
86.5
150.9
109.1
111.8
121.1
108.9
108.4
106.3
104.3
94.2
122.6
101.8
107.4
106.5
107.7
109.4
112.7
107.3
107.9
105.3
105.0
83.5
142.3
105.8
110.2
116.1
109.1
107.6
107.2
104.7
94.6
123.0
102.6
110.4
105.8
112.2
110.0
113.2
107.7
108.6
103.3
100.3
78.2
138.6
108.4
113.2
127.3
109.9
107.4
107.4
104.9
93.6
124.0
101.3
112.9
105.0
116.0
110.1
113.3
107.5
107.9
103.0
99.2
71.8
146.7
109.3
112.3
124.6
108.1
108.0
107.4
105.1
93.0
122.6
100.8
115.0
104.0
119.3
110.7
114.1
107.9
109.4
106.4
104.1
75.4
153.9
110.1
112.0
124.5
107.2
108.1
107.5
105.4
92.3
123.9
102.1
112.7
110.0
113.7
111.7
115.4
109.3
113.3
113.0
114.9
85.2
166.4
109.9
113.5
127.9
109.1
108.1
108.1
106.1
91.6
124.9
102.0
114.1
114.2
114.1
Equipment
Business equipment
Information processing and related ..
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
112.7
123.2
134.7
168.3
108.5
137.1
117.9
104.7
85.9
78.3
99.7
115.4
127.5
142.2
183.1
110.1
137.4
121.7
108.8
83.5
82.7
110.4
116.7
129.0
142.9
184.5
112.0
140.4
123.9
110.7
83.2
86.4
118.5
117.2
129.6
143.2
186.4
112.3
144.1
131.4
109.2
82.5
91.2
128.6
118.1
131.2
144.4
192.0
113.1
146.7
136.7
112.6
82.0
89.0
129.4
118.0
131.7
146.1
198.0
112.2
146.5
136.8
113.4
81.5
77.9
127.1
118.7
133.4
149.1
203.3
113.7
145.0
135.8
114.9
80.7
71.1
116.2
119.7
134.8
150.6
209.5
115.0
145.0
136.2
117.5
80.5
72.4
114.9
119.9
135.4
153.5
216.5
115.0
142.5
133.1
116.2
79.5
75.1
112.1
120.4
136.1
155.7
221.0
115.6
138.0
127.2
117.6
78.6
82.4
113.6
121.2
137.1
158.2
226.5
117.2
133.2
118.9
119.6
78.6
81.0
118.5
121.6
137.6
158.8
232.0
117.0
133.2
119.6
121.7
78.1
87.8
116.2
123.0
139.4
161.1
236.7
117.5
136.8
126.5
122.7
77.9
90.5
120.6
124.2
141.3
162.6
242.0
117.9
143.7
139.6
123.8
77.2
88.9
121.4
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
97.6
93.8
100.1
97.8
94.7
99.9
98.1
95.1
100.0
98.3
94.5
100.8
98.2
94.8
100.5
99.3
97.5
100.5
99.6
96.4
101.8
100.0
96.4
102.5
99.7
97.7
101.0
99.4
96.8
101.1
100.4
98.4
101.7
100.5
98.5
101.8
100.5
99.5
101.2
100.5
99.7
101.1
37 Materials
38 Durable goods materials
39
Durable consumer parts
Equipment parts
40
Other
41
Basic metal materials
47
43 Nondurable goods materials
Textile materials
44
45
Pulp and paper materials
Chemical materials
46
Other
47
48 Energy materials
49
Primary energy
Converted fuel materials
50
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
107.9
108.9
101.5
116.5
106.0
108.3
110.9
102.8
109.9
114.2
110.4
103.4
99.7
110.6
108.1
109.7
101.8
118.3
106.2
108.3
110.7
102.7
109.1
114.4
109.7
103.0
99.4
110.0
109.3
104.3
119.3
107.4
109.8
112.0
103.4
110.2
115.6
112.0
103.9
100.2
110.4
113.3
110.8
120.4
108.6
110.4
112.4
104.2
110.7
114.9
114.1
103.4
100.4
109.1
110.9
114.2
111.8
121.0
109.7
113.2
112.1
103.2
111.9
114.6
112.5
103.8
98.3
114.6
110.9
114.1
112.2
121.3
108.9
109.9
112.8
104.2
112.8
115.6
112.6
103.5
97.4
115.4
111.5
114.9
112.6
122.7
109.5
110.3
113.8
102.7
115.3
116.1
114.2
103.4
99.9
110.3
111.6
114.8
111.6
123.5
109.2
111.1
110.0
111.9
107.5
119.7
107.5
108.8
111.5
102.9
110.7
114.6
111.3
105.1
101.3
112.4
114.1
104.3
114.1
117.2
113.6
103.4
101.6
106.8
112.1
114.9
110.2
124.1
109.4
111.3
114.8
104.9
115.9
118.6
112.3
104.6
100.9
111.7
112.0
115.4
109.8
124.9
110.2
111.3
114.2
105.9
113.4
117.3
114.0
103.7
98.2
114.5
112.1
115.5
110.3
126.1
109.2
109.6
115.3
105.6
113.7
119.6
114.4
102.9
96.7
115.0
112.4
116.6
110.9
128.0
109.8
110.2
114.5
103.7
113.8
118.3
114.1
102.7
97.8
112.3
113.0
117.9
114.0
129.5
110.1
111.4
115.0
104.9
113.7
119.1
114.1
102.4
97.2
112.7
97.3
95.3
106.6
106.6
107.4
107.5
108.4
108.4
108.6
108.6
108.9
108.7
109.5
109.3
109.7
109.6
110.1
109.9
110.0
109.8
110.4
110.3
110.9
110.9
111.0
110.9
111.4
111.2
111.9
111.7
1 Total index
7
4
5
6
7
8
9
10
11
1?
N
14
IS
16
17
18
19
70
71
22
71
74
75
76
77
78
79
30
31
37
33
34
35
36
111.1
111.1
111.1
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts...
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
105.0
105.7
106.6
107.1
107.3
107.8
107.8
108.0
107.7
107.8
108.1
108.0
108.4
109.1
24.5
23.3
105.7
104.8
106.8
105.9
107.4
106.6
107.3
106.8
107.0
107.4
108.1
107.7
108.2
107.7
107.6
107.6
107.1
107.3
107.5
107.0
108.2
107.1
108.1
106.7
108.2
107.4
108.9
108.7
12.7
123.7
128.0
129.5
129.5
130.7
131.3
133.2
134.6
135.6
136.8
138.7
139.1
140.5
141.4
12.0
28.4
115.7
109.5
118.1
110.0
119.7
111.4
120.1
111.8
121.0
113.0
120.6
113.6
121.6
113.7
122.2
114.6
121.8
114.6
121.8
114.9
122.1
115.1
121.7
115.5
123.0
116.0
124.4
117.0
A48
Domestic Nonfinancial Statistics • January 1994
2.13 INDUSTRIAL PRODUCTION
Indexes and Gross Value1—Continued
1992
1987
Tron
SIC
code 2
proportion
1993
1992
avg.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July r
Aug. r
Sept. r
Oct.P
Index (1987 = 100)
MAJOR INDUSTRIES
59
Total index
60
61
62
Manufacturing
Primary processing
Advanced processing
100.0
106.5
107.5
108.4
108.9
109.3
109.9
110.1
110.4
110.2
110.5
110.8
110.9
111.4
112.2
84.3
27.1
57.1
106.9
103.8
108.3
108.0
104.1
109.9
108.9
105.1
110.7
109.2
105.0
111.3
109.9
105.8
111.9
110.5
106.9
112.2
110.8
106.4
112.9
111.4
107.1
113.4
111.3
107.1
113.3
111.3
107.5
113.0
111.6
107.6
113.5
111.8
107.9
113.6
112.5
108.0
114.6
113.5
108.4
115.8
Durable goods
Lumber and products...
"24
Furniture and fixtures...
25
Clay, glass, and stone
products
32
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
products
34
Industrial and commercial
machinery and
computer equipment .
35
Office and computing
machines
357
Electrical machinery
36
Transportation
equipment
37
Motor vehicles and
parts
371
Autos and light
trucks
Aerospace and miscellaneous transportation equipment... 3 7 2 - 6 , 9
Instruments
38
Miscellaneous
39
46.5
2.1
1.5
108.1
96.4
99.0
109.8
97.8
100.4
110.9
99.8
102.3
111.8
98.0
103.9
112.9
99.3
105.2
113.8
101.8
106.0
114.1
98.0
107.3
115.0
98.1
108.8
114.9
97.4
108.4
114.6
96.5
109.5
115.4
99.1
111.1
115.6
99.7
110.7
116.8
100.7
111.1
118.3
101.2
112.3
2.4
3.3
1.9
.1
1.4
96.0
101.1
104.7
101.2
96.1
96.8
100.5
104.1
99.8
95.6
97.6
101.6
103.6
102.8
98.7
98.0
102.4
107.4
104.6
95.7
97.0
102.8
107.0
103.4
97.1
98.9
108.0
112.9
105.9
101.4
98.6
104.2
107.6
102.0
99.4
99.8
104.4
108.4
102.6
98.9
99.6
104.2
108.1
105.1
98.9
100.5
105.7
110.9
106.8
98.5
100.8
105.3
111.9
108.2
96.3
100.0
106.0
112.2
106.2
97.4
101.6
105.7
110.5
105.3
99.2
101.4
106.2
111.7
108.1
98.6
5.4
96.7
97.5
97.6
97.8
99.8
99.7
100.3
101.4
100.6
100.1
101.2
100.8
100.6
101.5
8.5
124.8
130.6
132.8
133.8
135.0
136.7
139.6
142.8
144.2
145.4
148.5
149.8
151.6
153.4
2.3
6.9
168.3
119.8
183.1
122.6
184.5
124.4
186.4
124.8
192.0
125.8
198.0
127.1
203.3
128.5
209.5
129.0
216.5
129.7
221.0
130.1
226.5
132.3
232.0
133.5
236.7
135.1
242.0
136.2
9.9
102.6
103.0
103.6
106.3
108.4
107.8
106.9
106.9
105.5
102.6
100.8
100.6
102.4
106.3
4.8
104.8
108.0
109.9
116.2
120.9
120.7
120.1
120.4
118.1
114.3
110.1
110.2
114.5
122.8
2.2
101.4
104.1
105.4
114.4
118.2
117.8
116.9
117.5
113.1
108.2
102.8
99.9
104.8
116.3
5.1
5.1
1.3
100.6
104.2
109.7
98.3
103.7
110.5
97.7
103.6
111.4
97.1
103.3
111.8
96.7
103.0
110.9
95.8
102.2
111.9
94.6
103.3
112.6
94.2
102.6
114.3
93.7
102.5
113.1
91.8
102.5
112.1
92.0
102.8
112.3
91.6
101.3
112.5
91.2
101.9
114.3
90.9
102.1
114.2
"20
21
22
23
26
27
28
29
37.8
8.8
1.0
1.8
2.3
3.6
6.5
8.8
1.3
105.4
106.0
99.2
104.7
92.3
108.2
95.0
115.0
102.0
105.8
106.8
102.4
103.5
91.7
107.3
94.5
116.2
105.3
106.4
106.4
101.9
106.0
92.9
108.2
94.2
117.7
103.9
106.0
106.2
96.1
106.0
92.7
108.3
94.7
116.7
103.4
106.4
105.9
100.5
106.9
93.1
108.6
94.7
116.8
103.2
106.4
106.9
99.3
106.2
92.5
110.4
94.0
116.2
104.7
106.6
106.7
92.4
105.4
92.1
111.1
94.7
117.6
104.7
106.9
106.7
90.2
104.2
92.0
113.1
95.6
117.8
104.3
106.9
106.7
92.1
106.9
91.2
112.1
94.7
118.1
103.6
107.2
107.1
89.1
107.1
91.1
114.2
94.5
119.1
103.9
107.0
107.2
91.5
107.7
90.7
112.0
93.8
118.7
102.5
107.1
107.6
92.4
107.3
90.3
113.3
93.1
118.7
102.4
107.2
107.7
94.2
106.1
89.2
112.9
93.2
118.8
105.9
107.5
108.3
95.5
106.7
88.6
112.5
93.1
119.7
107.9
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 . . .
30
31
3.2
.3
109.7
92.6
109.9
95.1
111.3
96.6
111.3
96.7
113.6
97.1
112.7
99.0
112.9
99.1
113.6
100.1
113.8
98.2
112.8
97.0
114.7
96.8
114.8
97.0
115.1
98.3
114.8
99.8
92
93
94
95
96
Mining
Metal
Coal
Oil and gas extraction
Stone and earth minerals . .
11,12
13
14
8.0
.3
1.2
5.8
.7
97.6
161.7
105.5
92.6
93.8
97.6
168.1
103.8
92.7
93.6
97.8
171.6
103.5
92.8
94.4
98.2
158.1
107.9
93.4
92.6
98.3
167.7
108.2
92.7
93.8
95.9
163.0
101.7
90.9
95.2
95.3
158.2
102.3
90.4
93.4
96.4
162.5
108.2
90.5
92.3
97.3
169.3
106.4
91.6
94.0
98.0
164.4
106.7
93.1
91.7
96.4
167.7
101.0
91.6
93.2
95.5
148.8
95.9
92.4
94.7
97.2
159.5
103.9
92.4
94.9
96.6
164.1
105.3
91.2
94.2
97
98
99
Utilities
Electric
Gas
491,3FT
492,3PT
7.7
6.1
1.6
112.0
111.6
113.2
112.7
112.6
113.2
114.7
114.1
117.3
116.8
116.4
118.2
112.8
112.9
112.4
117.5
116.5
121.4
117.8
116.3
123.3
114.4
114.5
113.9
112.1
114.0
104.9
114.9
115.6
112.2
116.9
118.1
112.4
117.8
118.8
113.9
114.9
115.1
114.0
115.0
115.2
114.4
79.5
107.0
108.0
108.8
108.8
109.3
109.8
110.2
110.8
110.9
111.1
111.7
111.9
112.3
112.9
81.9
105.1
105.9
106.7
107.0
107.6
108.0
108.1
108.6
108.3
108.1
108.3
108.3
108.9
109.8
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
"lO
SPECIAL AGGREGATES
Manufacturing excluding
motor vehicles and
parts
101 Manufacturing excluding
office and computing
machines
100
Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS
102
Products, total
1,707.0 1,806.4 1,835.6 1,846.7 1,857.5 1,864.9 1,880.2 1,880.3 1,882.8 1,872.6 1,873.2 1,877.4 1,877.3 1,892.5 1,917.4
103
104
105
106
Final
Consumer goods
Equipment
Intermediate
1,314.6 1,420.1 1,448.1 1,457.1 1,466.8 1,476.4 1,485.7 1,484.3
866.6
928.4
913.0
931.6
940.0
936.3
949.4
946.1
448.0
519.7
507.1
525.5
530.5
536.5
536.3
538.2
392.5
387.4
386.4
389.6
388.4
390.7
394.5
396.0
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover.
A revision of the industrial production index and the capacity utilization rates
1,485.6 1,477.9 1,477.5
943.6
936.1
935.5
541.9
541.8
541.9
397.3
394.7
395.7
1 , 4 7 9 . 0 1,478.7 1,493.3 1,518.4
935.5
933.8
940.7
957.2
543.4
545.0
552.6
561.2
398.4
398.6
399.2
398.9
was released in May 1993. See "Industrial Production, Capacity, and Capacity
Utilization since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
2. Standard industrial classification.
Selected Measures
A49
2.14 HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1993
1992
1990
Item
1991
1992
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July r
Aug/
Sept.
Private residential real estate activity (thousands of units except as noted)
N E W UNITS
1
7
3
4
5
6
7
8
9
10
11
17
13
Permits authorized
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period'..
One-family
Two-or-more-family
One-family
Two-or-more-family
Mobile homes shipped
Merchant builder activity in
one-family units
14
15 Number for sale at end of period
16
17
...
Price of units sold (thousands
of dollars)
1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188
949
754
195
1,014
840
174
606
434
173
1,091
838
253
171
1,095
911
184
1,200
1,030
169
612
473
140
1,158
964
194
210
1,1%
1,037
159
1,286
1,133
153
644
501
143
1,227
1,016
211
266
1,157
972
185
1,171
1,051
120
641
506
135
1,136
980
156
267
1,141
957
184
1,180
1,036
144
641
508
133
1,241
1,049
192
262
1,034
871
163
1,124
987
137
635
502
133
1,108
995
113
247
1,101
925
176
1,206
1,059
147
637
506
131
1,222
1,075
147
241
1,121
919
202
1,248
1,107
141
645
515
130
1,129
987
142
230
1,115
925
190
1,248
1,079
169
649
517
132
1,158
987
171
237
1,162
977
185
1,232
1,064
168
658
527
131
1,088
947
141
241
1,242
1,015
227
1,328
1,183
145
663
535
128
1,260
1,078
182
245
1,271
1,047
224
1,359
1,157
202
676
543
133
1,162
1,034
128
251
535
321
507
284
610
265
662
265
603
266
597
268
602
270
689
271
629
274
641r
274
645
276
631
286
762
288
122.3
149.0
120.0
147.0
121.3
144.9
126.0
146.2
118.0
138.9
129.4
149.4
125.0
146.6
127.0
148.4
129.9
152.3
124.5r
145.7r
124.0
144.1
127.4
149.2
129.0
149.6
3,211
3,219
3,520
4,040
3,780
3,460
3,370
3,450
3,620
3,680
3,860
3,810
3,910
95.2
118.3
99.7
127.4
103.6
130.8
104.2
131.0
103.1
129.4
103.6
129.6
105.1
131.5
105.8
133.0
106.5
132.8
109.3
137.4
108.5
136.0
109.0
135.8
107.7
133.8
EXISTING UNITS ( o n e - f a m i l y )
18 Number sold
Price of units sold (thousands
of dollars)2
19
20 Average
Value of new construction (millions of dollars)3
CONSTRUCTION
21
77
73
74
75
76
77
28
79
30
31
V,
33
Total put in place
Residential
Nonresidential
Industrial buildings
Commercial buildings
Other buildings
Public utilities and other
Public
Conservation and development...
Other
442,142 403,439
436,043 455,239
451,271 453,820
454,465
449,054
453,256
460,680
465,294
467,442
471,279
334,681
182,856
151,825
23,849
62,866
21,591
43,519
293,536
157,837
135,699
22,281
48,482
20,797
44,139
317,256
187,820
129,436
20,720
41,523
21,494
45,699
335,354
206,417
128,937
19,961
39,602
20,900
48,474
335,484
207,214
128,270
19,600
41,414
21,123
46,133
334,801
205,730
129,071
20,484
42,317
21,564
44,706
336,972
205,519
131,453
22,152
41,323
21,484
46,494
328,150
197,317
130,833
19,458
42,426
22,568
46,381
332,231
198,380
133,851
20,091
42,428
23,293
48,039
335,028
200,4%
134,532
19,316
42,723
23,849
48,644
336,714
203,869
132,845
19,780
41,660
23,808
47,597
340,019
206,244
133,775
20,028
42,037
25,110
46,600
341,647
208,131
133,516
20,684
41,100
24,634
47,098
107,461
2,664
32,108
4,557
68,132
109,900
1,837
32,026
4,861
71,176
118,784
2,502
34,929
5,918
75,435
119,885
2,394
33,411
8,144
75,936
115,786
2,621
30,648
5,732
76,785
119,019
2,703
33,009
6,688
76,619
117,493
2,586
33,413
7,112
74,382
120,904
2,533
34,534
5,875
77,%2
121,025
2,393
34,320
6,019
78,293
125,652
2,234
37,649
6,103
79,666
128,581
2,386
37,056
6,017
83,122
127,423
2,3%
35,268
5,901
83,858
129,632
2,215
37,654
5,655
84,108
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 17,000 jurisdictions
beginning in 1984.
A50
2.15
Domestic Nonfinancial Statistics • January 1994
C O N S U M E R 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)
1993r
1992
1992
Oct.
1993
Oct.
Change from 1 month earlier
Index
level,
Oct.
19931
19931
Dec.r
Mar.
June
Sept.
June
July
Aug.
Sept.
Oct.
CONSUMER PRICES 2
(1982-84=100)
1 AU items
3.2
2.8
3.2
4.0
2.2
1.4
.0
.1
.3
.0
.4
145.7
2 Food
3 Energy items
4 All items less food and energy
5 Commodities
6 Services
1.8
2.7
3.5
2.7
3.9
2.4
.9
3.0
1.6
3.7
1.4
1.9
3.8
1.5
4.7
2.6
3.1
4.3
4.6
4.4
1.4
-3.8
2.9
.6
4.1
1.7
-3.4
1.9
-.3
2.7
-.4
-.2
.1
-.1
.2
.0
.0
.1
.0
.2
.3
-.5
.3
.3
.3
.1
-.4
.1
-.4
.2
.6
1.9
.3
.3
.3
141.6
105.4
153.5
136.0
163.6
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
1.8
.7
2.2
2.3
1.8
.2
1.4
-1.4
-.7
1.7
-.3
3.3
-10.2
1.2
.6
4.3
-1.6
16.6
3.2
4.4
.0
1.6
-3.0
.6
.3
-1.9
4.2
-7.4
-5.9
2.2
-,6 r
-1.0r
-,5 r
-,5
— .2r
.0r
-,2 r
- i . Rr
,2r
.3
-.6
.5
-.8
-1.7
.2
.2
.7
.0
.0
.0
-.2
-.5
1.3
-.5
-.4
124.7
125.5
78.9
137.3
132.4
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
1.2
1.1
1.0
1.4
-2.1
-.3
5.7
4.7
.3
.0
-.3
.6
-.2
.ff
.0
.2
.1
.0
-.1
.0
116.8
124.0
Crude materials
14 Foods
15 Energy
16 Other
1.1
2.9
2.7
1.8
-5.2
8.9
5.1
-17.8
1.9
1.9
-10.1
24.3
-1.9
17.5
11.5
12.6
-26.5
-8.5
1.3r
-4.6 rr
,4
1.6
-1.8
-2.6
.1
-1.2
.0
-1.5
4.9
.9
105.6
78.6
139.6
PRODUCER PRICES
(1982=100)
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.
.3
.R
-3.4 rr
-.5
.R
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
Selected Measures
2.16
GROSS DOMESTIC PRODUCT A N D
A51
INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
1992
1990
1991
1992
Q3
Q4
Ql
Q2
Q3
GROSS DOMESTIC PRODUCT
5,546.1
5,722.9
6,038.5
6,059.5
6,194.4
6,261.6
6,327.6
6,396.3
3,761.2
468.2
1,229.2
2,063.8
3,906.4
457.8
1,257.9
2,190.7
4,139.9
497.3
1,300.9
2,341.6
4,157.1
500.9
1,305.7
2,350.5
4,256.2
516.6
1,331.7
2,407.9
4,2%.2
515.3
1,335.3
2,445.5
4,359.9
531.6
1,344.8
2,483.4
4.418.2
542.0
1,351.9
2.524.3
808.9
802.0
586.7
201.6
385.1
215.3
736.9
745.5
555.9
182.6
373.3
189.6
796.5
789.1
565.5
172.6
392.9
223.6
802.2
792.5
569.2
170.8
398.4
223.3
833.3
821.3
579.5
171.1
408.3
241.8
874.1
839.5
594.7
172.4
422.2
244.9
874.1
861.0
619.1
177.6
441.6
241.9
882.5
874.3
623.6
178.9
444.7
250.7
6.9
3.8
-8.6
-8.6
7.3
2.3
9.7
4.4
12.0
9.5
34.6
33.0
13.1
16.8
8.2
19.5
-71.4
557.1
628.5
-19.6
601.5
621.1
-29.6
640.5
670.1
-38.8
641.1
679.9
-38.8
654.7
693.5
-48.3
651.3
699.6
-65.1
660.0
725.0
-65.2
654.9
720.0
17 Government purchases of goods and services ..
18 Federal
19 State and local
1,047.4
426.5
620.9
1,099.3
445.9
653.4
1,131.8
448.8
683.0
1,139.1
452.8
686.2
1,143.8
452.4
691.4
1,139.7
442.7
697.0
1,158.6
447.5
711.1
1,160.8
442.2
718.6
By major type of product
20 Final sales, total
21 Goods
22
Durable
23
Nondurable
Services
24
25
Structures
5.539.3
2.178.4
933.6
1,244.8
2.849.5
511.5
5.731.6
2,227.0
934.3
1,292.8
3.032.7
471.9
6,031.2
2.305.5
975.8
1.329.6
3,221.1
504.7
6,049.9
2,308.6
978.4
1.330.2
3.239.3
501.9
6.182.5
2.365.6
1,008.3
1,357.3
3,2%. 1
520.8
6,227.1
2,362.9
1,003.5
1,359.3
3,341.8
522.4
6,314.5
2.395.0
1,037.8
1.357.1
3,388.1
531.5
6,388.1
2.408.0
1.040.1
1,367.8
3,437.1
543.0
6.9
-2.1
9.0
-8.6
-12.9
4.3
7.3
2.1
5.3
9.7
5.7
4.0
12.0
-1.2
13.2
34.6
15.0
19.5
13.1
2.7
10.4
8.2
7.5
.7
4,897.3
4,861.4
4,986.3
4,998.2
5,068.3
5,078.2
5,102.1
5,138.0
4,491.0
4,598.3
4,836.6
4,800.8
4,975.8
5,038.9
5,104.0
n.a.
3,658.6
3,015.8
574.2
2,441.6
642.8
311.3
331.5
3.705.1
3,054.3
584.1
2.470.2
650.7
312.2
338.5
3.750.6
3.082.7
586.3
2,4%.3
668.0
321.4
346.6
3.792.8
3,114.3
593.4
2.520.9
678.6
323.9
354.7
431.2
383.6
47.6
444.1
388.4
55.7
439.4
392.4
47.0
423.3
3%.2
27.0
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13
Change in business inventories
Nonfarm
14 Net exports of goods and services
15 Exports
16 Imports
26 Change in business inventories
27 Durable goods
28 Nondurable goods
MEMO
29 Total GDP in 1987 dollars
NATIONAL INCOME
30 Total
3,297.6
2,745.0
516.0
2,229.0
552.5
278.3
274.3
3,402.4
2,814.9
545.3
2,269.6
587.5
290.6
296.9
3.582.0
2.953.1
567.5
2,385.6
629.0
306.3
322.7
3.603.6
2.970.7
569.7
2,401.0
632.9
306.9
326.0
363.3
321.4
41.9
376.4
339.5
36.8
414.3
370.6
43.7
408.1
371.3
36.8
-14.2
-12.8
-8.9
-18.5
-1.2
7.5
12.7
42 Corporate profits ..
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment
380.6
365.7
-11.0
25.9
369.5
362.3
4.9
2.2
407.2
395.4
-5.3
17.1
367.5
357.9
-7.8
17.4
439.5
409.9
4.9
24.7
432.1
419.8
-12.7
25.1
458.1
445.6
-12.2
24.7
n.a.
n.a.
46 Net interest
463.7
462.8
442.0
440.1
447.7
450.1
443.2
n.a.
31 Compensation of employees
32 Wages and salaries
33
Government and government enterprises ..
34
Other
35 Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income
38 Proprietors' income1
39 Business and professional1
40 Farm 1
41 Rental income of persons 2
1
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
13.9
.2
23.6
A52
2.17
Domestic Nonfinancial Statistics • January 1994
PERSONAL INCOME AND
SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
1990
1991
1993
1992
Q3
Q4
Ql
Q2
Q3
PERSONAL INCOME AND SAVING
1 Total personal income
4,673.8
4,850.9
5,144.9
5,139.8
5,328.3
5,254.7
5,373.2
5,409.7
2 Wage and salary disbursements
3 Commodity-producing industries
Manufacturing
4
5
Distributive industries
Service industries
6
7 Government and government enterprises
2,745.0
745.7
555.6
635.1
848.3
515.9
2,815.0
738.1
557.2
648.0
883.5
545.4
2,973.1
756.5
577.6
682.0
967.0
567.5
2,970.7
751.6
573.3
682.5
966.8
569.7
3,095.8
783.3
602.0
709.9
1,028.4
574.2
2,974.3
740.7
559.7
682.9
966.6
584.1
3,082.7
765.1
580.3
709.1
1,022.2
586.3
3,114.3
769.5
581.5
714.8
1,036.6
593.4
274.3
363.3
321.4
41.9
-14.2
144.4
698.2
687.6
352.0
296.9
376.4
339.5
36.8
-12.8
127.9
715.6
769.9
382.3
322.7
414.3
370.6
43.7
-8.9
140.4
694.3
858.4
413.9
326.0
408.1
371.3
36.8
-18.5
144.9
692.2
866.1
416.6
331.5
431.2
383.6
47.6
-1.2
152.3
694.5
877.4
420.8
338.5
444.1
388.4
55.7
7.5
157.0
695.4
894.4
433.1
346.6
439.4
392.4
47.0
12.7
157.8
693.1
905.5
435.0
354.7
423.3
396.2
27.0
13.9
159.0
694.2
917.2
438.8
8
9
10
11
12
13
14
15
16
17
Other labor income
Proprietors' income
Business and professional
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
224.9
237.8
249.3
249.8
253.3
256.6
264.5
266.8
4,673.8
4,850.9
5,144.9
5,139.8
5,328.3
5,254.7
5,373.2
5,409.7
623.3
620.4
644.8
642.8
670.7
657.1
681.0
690.2
20 EQUALS: Disposable personal income
4,050.5
4,230.5
4,500.2
4,497.0
4,657.6
4,597.5
4,692.2
4,719.5
21
LESS: Personal outlays
3,880.6
4,029.0
4,261.5
4,277.3
4,377.9
4,419.7
4,483.6
4,542.6
22 EQUALS: Personal saving
170.0
201.5
238.7
219.6
279.7
177.9
208.7
176.9
19,593.0
13,093.0
14,101.0
19,237.9
12,895.2
13,965.0
19,518.0
13,080.9
14,219.0
19.536.7
13.097.8
14,169.0
19,754.1
13,240.9
14,490.0
19,744.4
13,234.2
14,163.0
19,785.4
13,311.6
14,326.0
19,867.1
13,409.3
14,324.0
4.2
4.8
5.3
4.9
6.0
3.9
4.4
3.7
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
722.7
733.7
717.8
727.0
718.8
762.0
766.7
n.a.
28 Gross private saving
861.1
929.9
986.9
1,016.5
969.4
1,024.8
988.3
n.a.
29 Personal saving
30 Undistributed corporate profits1
31 Corporate inventory valuation adjustment
170.0
88.5
-11.0
201.5
102.3
4.9
238.7
110.4
-5.3
219.6
82.3
-7.8
279.7
121.7
4.9
177.9
103.7
-12.7
208.7
116.3
-12.2
176.9
n.a.
.2
Capital consumption
32 Corporate
33 Noncorporate
368.2
234.5
383.2
242.8
3%. 6
261.3
410.3
304.3
396.5
251.5
402.2
261.0
405.2
258.1
414.1
265.9
-138.4
-163.5
25.1
-196.2
-203.4
7.3
-269.1
-276.3
7.2
-289.5
-290.7
1.2
-250.6
-264.2
13.5
-262.8
-263.5
.8
-221.5
-222.6
1.1
allowances
34 Government surplus, or deficit ( - ) , national income and
product accounts
35 Federal
36 State and local
n.a.
n.a.
n.a.
37 Gross investment
730.4
743.3
741.4
742.7
750.9
796.5
778.7
786.6
38 Gross private domestic
39 Net foreign
808.9
-78.5
736.9
6.4
7%. 5
-55.1
802.2
-59.4
833.3
-82.4
874.1
-77.6
874.1
-95.4
882.5
n.a.
7.8
9.6
23.6
15.7
32.1
34.4
12.0
40 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.
n.a.
Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS
A53
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted 1
1993
1992
Item credits or debits
1 Balance on current account
2 Merchandise trade balance
3
Merchandise exports
4
Merchandise imports
Military transactions, net
6 Other service transactions, net
7 Investment income, net
8 U.S. government grants
9 U.S. government pensions and other transfers
10 Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
1990
-91,861
-109,033
389,303
-498,336
-7,834
38,485
20,348
-17,434
-2,934
-13,459
1991
1992
Q2
Q3
Q4
Q1
Q2P
-22,308
-29,309
111,530
-140,839
-145
14,769
-37
-3,242
-978
-3,366
-26,934
-34,388
113,125
-147,513
23
14,772
-275
-2,578
-975
-3,513
-8,324
-73,802
416,937
-490,739
-5,851
51,733
13,021
24,073
-3,461
-14,037
-66,400
-96,138
440,138
-536,276
-2,751
59,163
6,222
-14,688
-3,735
-14,473
-18,253
-24,801
108,306
-133,107
-727
14,378
907
-3,234
-1,118
-3,659
-17,775
-27,612
109,493
-137,105
-617
15,898
1,703
-2,783
-940
-3,424
-23,687
-25,962
113,992
-139,954
-836
14,265
-806
-5,883
-846
-3,619
2,307
2,905
-1,609
-293
-305
-737
535
55
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
-2,158
0
-192
731
-2,697
5,763
0
-177
-367
6,307
3,901
0
2,316
-2,692
4,277
1,464
0
-168
1
1,631
1,952
0
-173
-118
2,243
1,542
0
2,829
-2,685
1,398
-983
0
-140
-228
-615
720
0
-166
211
675
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21 U.S. direct investments abroad, net
-44,280
16,027
-4,433
-28,765
-27,109
-68,643
3,278
1,932
-44,740
-29,113
-53,253
24,948
4,551
-47,961
-34,791
-9,866
4,050
1,294
-8,276
-6,934
-12,445
6,584
-3,214
-13,787
-2,028
-31,243
-3,481
1,132
-17,405
-11,489
-11,910
28,055
-4,774
-26,889
-8,302
-26,203
4,743
-20,180
-10,766
27. Change in foreign official assets in United States (increase, +) . . .
23 U.S. Treasury securities
24 Other U.S. government obligations
7,5 Other U.S. government liabilities
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets
34,198
29,576
667
2,156
3,385
-1,586
17,564
14,846
1,301
1,542
-1,484
1,359
40,684
18,454
3,949
2,542
16,427
-688
21,008
11,240
1,699
678
7,466
-75
-7,378
-323
912
864
-7,831
-1,000
5,931
-7,379
874
943
11,219
274
10,929
1,039
710
-395
8,171
1,404
17,839
6,042
1,082
191
9,425
1,099
28 Change in foreign private assets in United States (increase, + ) . . .
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net .
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
70,976
16,370
7,533
-2,534
1,592
48,015
65,875
-11,371
-699
18,826
35,144
23,975
88,895
18,609
741
36,893
30,274
2,378
23,442
-528
979
10,168
10,453
2,370
33,828
23,647
1,553
4,870
2,730
1,028
32,914
-1,171
-2,717
21,232
12,478
3,092
14,789
-18,862
2,057
13,599
9,394
8,601
20,453
-2,462
34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment
0
30,820
0
-15,140
0
-12,218
30,820
-15,140
-12,218
0
-17,502
653
-18,155
0
2,123
-6,754
8,877
0
15,280
1,222
14,058
0
8,948
5,814
3,134
0
14,070
816
13,254
-411
15,000
8,326
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)
-2,158
5,763
3,901
1,464
1,952
1,542
-983
720
32,042
16,022
38,142
20,330
-8,242
4,988
11,324
17,648
1,707
-4,882
5,857
-2,113
3,051
2,336
463
-940
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 5.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.
4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
Survey of Current Business.
A54
3.11
International Statistics • January 1994
U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1993
Item
1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports including merchandise
for immediate consumption
plus entries into bonded
warehouses
3 Trade balance
1990
393,592
1991
421,730
1992
448,164
Mar.
Apr.
May
June
July
Aug. r
38,895
38,479
38,930
37,639
37,109
38,050
Sept.P
38,866
495,311
488,453
532,665
49,347
48,660
47,306
49,698
47,534
48,097
49,751
-101,718
-66,723
-84,501
-10,453
-10,182
-8,376
-12,058
-10,425
-10,047
-10,886
1. Government and nongovernment shipments of merchandise between foreign
countries and the fifty states, including the District of Columbia, Puerto Rico, the
U.S. Virgin Islands, and U.S. Foreign Trade Zones. Data exclude (1) shipments
among the United States, Puerto Rico, the U.S. Virgin Islands, and other U.S.
affiliated insular areas, (2) shipments to U.S. Armed Forces and diplomatic
missions abroad for their own use, (3) U.S. goods returned to the United States by
its Armed Forces, (4) personal and household effects of travelers, and (5)
in-transit shipments. Data reflect the total arrival of merchandise from foreign
countries that immediately entered consumption channels, warehouses, or U.S.
Foreign Trade Zones (general imports). Import data are Customs value; export
data are F.A.S. value. Since 1990, data for U.S. exports to Canada have been
derived from import data compiled by Canada; similarly, in Canadian statistics,
Canadian exports to the United States are derived from import data compiled by
the United States. Since Jan. 1, 1987, merchandise trade data have been released
forty-five days after the end of the month; the previous month is revised to reflect
late documents.
Data in this table differ from figures for merchandise trade shown in the U.S.
balance of payments accounts (table 3.10, lines 2 through 4) primarily for reasons
of coverage. For both exports and imports, a large part of the difference is the
treatment of military sales and purchases. The military sales to foreigners
(exports) and purchases from foreigners (imports) that are included in this table as
merchandise trade are shifted, in the balance of payments accounts, from
"merchandise trade" into the broader category "military transactions."
SOURCE. (U.S. Department of Commerce, Bureau of the Census), FT900, U.S.
Merchandise Trade.
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1993
Asset
1 Total
2 Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights ' 3
4 Reserve position in International
Monetary Fund
5 Foreign currencies 4
1990
1991
1992
Apr.
May
June
July
Aug.
Sept.
Oct."
83,316
77,719
71,323
75,644
76,711
73,968
74,139
75,231
75,835
74,550
11,058
10,989
11,057
11,240
11,056
8,503
11,054
8,947
11,053
9,147
11,057
8,987
11,057
8,905
11,057
9,133
11,057
9,203
11,056
9,038
9,076
52,193
9,488
45,934
11,759
40,005
12,317
43,326
12,195
44,316
11,926
41,998
12,083
42,094
12,118
42,923
12,101
43,474
11,908
42,548
1. Gold held "under earmark" at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United States; see
table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted
by the International Monetary Fund (IMF) in July 1974. Values are based on a
weighted average of exchange rates for the currencies of member countries. From
July 1974 through December 1980, sixteen currencies were used; since January
1981, five currencies have been used. U.S. SDR holdings and reserve positions in
the IMF also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1993
Asset
1990
1991
1992
Apr.
1 Deposits
Held in custody
2 U.S. Treasury securities
3 Earmarked gold3
June
July
Aug.
Sept.
Oct."
369
968
205
221
193
286
284
357
501
390
278,499
13,387
281,107
13,303
314,481
13,686
339,3%
12,924
345,060
12,854
343,672
12,829
343,378
12,756
356,671
12,686
358,860
12,562
358,975
12,464
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S.
Treasury securities payable at face value in dollars or foreign currencies.
May
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.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data1
Millions of dollars, end of period
1993
Account
1990
1991
1992
Mar.
Apr.
May
June
July
Aug.
Sept.
All foreign countries
ASSETS
556,925
548,999
542,545
547,425
544,497
548,893
562,590
551,342
560,539
556,176
2 Claims on United States
Parent bank
4 Other banks in United States
5 Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8 Banks
9 Public borrowers
10 Nonbank foreigners
11 Other assets
188,496
148,837
13,296
26,363
312,449
135,003
72,602
17,555
87,289
55,980
176,487
137,695
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,578
166,798
132,275
9,703
24,820
318,071
123,256
82,190
20,756
91,869
57,676
172,132
139,016
9,073
24,043
314,912
112,598
84,819
19,005
98,490
60,381
164,652
129,121
10,830
24,701
316,001
109,966
86,940
18,577
100,518
63,844
162,355
127,126
9,169
26,060
321,065
111,314
88,188
18,251
103,312
65,473
176,025
141,024
9,498
25,503
316,533
111,708
85,972
18,183
100,670
70,032
163,793
127,474
8,993
27,326
316,989
105,095
88,648
17,687
105,559
70,560
166,817
130,865
9,457
26,495
325,948
108,071
90,008
18,364
109,505
67,774
168,086
136,938
6,862
24,286
318,736
108,521
84,937
17,797
107,481
69,354
12 Total payable in U.S. dollars
379,479
364,078
365,824
353,799
345,053
344,926
355,298
340,948
338,8%
348,290
Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20 Public borrowers
21 Nonbank foreigners
22 Other assets
180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854
169,848
133,662
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,220
162,125
129,329
9,266
23,530
183,527
83,117
47,250
14,313
38,847
20,172
167,535
136,423
8,336
22,776
170,338
75,871
41,266
13,068
40,133
15,926
160,120
126,760
10,168
23,192
169,360
73,049
43,783
12,537
39,991
15,573
156,418
123,957
8,209
24,252
170,475
73,068
44,920
12,244
40,243
18,033
169,502
137,711
8,638
23,153
168,824
73,014
43,674
12,049
40,087
16,972
155,387
124,072
8,270
23,045
167,183
70,293
44,262
11,951
40,677
18,378
157,538
127,028
8,475
22,035
164,318
68,567
42,378
11,999
41,374
17,040
160,820
133,223
6,322
21,275
168,815
70,511
43,920
11,580
42,804
18,655
1 Total payable in any currency
N
United Kingdom
23 Total payable in any currency
184,818
175,599
165,850
162,122
163,193
165,044
173,158
167,046
172,710
173,057
7,4 Claims on United States
25 Parent bank
26 Other banks in United States
27 Nonbanks
28 Claims on foreigners
79 Other branches of parent bank
30 Banks
31 Public borrowers
32 Nonbank foreigners
33 Other assets
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722
35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650
36,403
33,460
1,298
1,645
111,623
46,165
33,399
3,329
28,730
17,824
34,989
31,719
892
2,378
106,944
39,466
34,914
2,531
30,033
20,189
33,353
29,605
757
2,991
108,963
39,450
37,823
2,513
29,177
20,877
31,239
27,523
747
2,%9
111,830
41,458
37,282
2,420
30,670
21,975
37,038
33,059
1,006
2,973
109,528
40,130
36,848
2,342
30,208
26,592
34,032
29,184
808
4,040
107,799
37,164
38,543
2,341
29,751
25,215
35,491
30,612
877
4,002
114,150
39,778
40,332
2,606
31,434
23,069
34,053
30,776
631
2,646
115,203
40,613
40,277
2,171
32,142
23,801
34 Total payable in U.S. dollars
116,762
105,974
109,493
94,870
95,612
97,431
100,422
96,200
93,739
97,841
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802
32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765
34,508
32,186
1,022
1,300
66,335
34,124
17,089
2,349
12,773
8,650
32,783
30,443
413
1,927
57,530
30,017
13,422
1,949
12,142
4,557
31,233
28,420
393
2,420
60,180
29,388
16,903
1,888
12,001
4,637
28,634
25,9%
326
2,312
61,742
30,753
17,073
1,808
12,108
7,055
34,110
31,265
533
2,312
60,479
30,287
16,658
1,804
11,730
5,833
30,573
27,580
300
2,693
58,944
27,814
17,590
1,744
11,7%
6,683
31,753
28,938
308
2,507
56,603
27,713
15,466
1,832
11,592
5,383
31,160
29,130
328
1,702
59,725
28,306
17,%7
1,614
11,838
6,956
35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41
Banks
42
Public borrowers
43 Nonbank foreigners
44 Other assets
Bahamas and Cayman Islands
45 Total payable in any currency
162,316
168,512
147,422
149,461r
144,654r
142,872r
148,982r
140,580r
140,172
147,385
97.4691
r
r
102,109r
r
74,023
7,651
20,435
40,437
7,009
18,117
6,334
8,977
6,436
93,736rr
66,363
7,477
19,8%
39,609
6,772
17,688
6,185
8,964
7,235
93,661
67,055
7,360
19,246
39,588
7,226
16,863
6,102
9,397
6,923
98,873
74,040
5,489
19,344
41,814
8,958
17,090
5,955
9,811
6,698
143,900r
136,025r
135,698
142,831
46 Claims on United States
47 Parent bank
48 Other banks in United States
49 Nonbanks
50 Claims on foreigners
51 Other branches of parent bank
57 Banks
53 Public borrowers
54 Nonbank foreigners
55 Other assets
112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971
115,430
81,706
10,907
22,817
45,229
11,098
20,174
7,161
6,7%
7,853
%,280
66,608
7,828
21,844
44,509
7,293
21,212
7,786
8,218
6,633
101,267r
r
73,421
7,424
20,422r
41,328
6,650
18,811r
7,188
8,679
6,866
67,830
9,279
20,360
40,5%
6,873
17,816
6,690
9,217
6,589
94,894
66,170"^
7,184
21,540
41,378
6,999
18,527
6,527
9,325
6,600
56 Total payable in U.S. dollars
158,390
163,957
142,861
145,221r
140,146r
138,202r
1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50
million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.
A56
3.14
International Statistics • January 1994
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data1—Continued
1993
Mar.
Apr.
May
June
July
Aug.
Sept.
All foreign countries
LIABILITIES
57
Total payable in any currency
556,925
548,999
542,545
547,425
544,497
548,893
562,590
551,342
560,539
556,176
58
59
60
61
62
Negotiable certificates of deposit (CDs) . .
To United States
Parent bank
Other banks in United States
Nonbanks
18,060
189,412
138,748
7,463
43,201
16,284
198,307
136,431
13,260
48,616
10,032
189,444
134,339
12,182
42,923
11,596
187,572
126,134
13,306
48,132
13,748
176,747
119,752
11,952
45,043
14,348
175,442
117,207
14,062
44,173
14,154
186,374
129,486
13,514
43,374
14,568
174,089
120,953
10,440
42,696
14,604
172,074
118,724
9,561
43,789
12,666
180,247
121,821
11,662
46,764
63
64
65
66
67
68
To foreigners
Other branches of parent bank
Banks
Official institutions
Nonbank foreigners
Other liabilities
311,668
139,113
58,986
14,791
98,778
37,785
288,254
112,033
63,097
15,596
97,528
46,154
309,704
125,160
62,189
19,731
102,624
33,365
312,417
115,535
68,411
18,312
110,159
35,840
316,661
113,845
68,381
21,326
113,109
37,341
322,140
115,189
69,323
22,271
115,357
36,963
318,956
115,725
67,243
22,466
113,522
43,106
319,464
108,925
71,491
23,147
115,901
43,221
333,015
113,550
73,663
23,049
122,753
40,846
322,146
111,731
68,100
22,698
119,617
41,117
69
Total payable in U.S. dollars
383,522
370,710
368,773
353,840
344,532
344,319
357,116
342,287
339,344
347,387
Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74 Nonbanks
14,094
175,654
130,510
6,052
11,909
185,472
129,669
11,707
6,238
178,674
127,948
11,512
6,519
175,763
119,524
12,467
7,062
164,380
112,736
7,248
162,328
110,161
8,138
172,708
121,922
7,958
160,499
113,313
7,370
157,841
110,881
6,131
167,272
114,170
39,092
44,096
39,214
43,772
11,282
40,362
13,126
39,041
12,862
37,924
9,789
37,397
8,842
38,118
11,092
42,010
75 To foreigners
76 Other branches of parent bank
77
Banks
78 Official institutions
79 Nonbank foreigners
80 Other liabilities
179,002
98,128
20,251
7,921
52,702
14,772
158,993
76,601
24,156
10,304
47,932
14,336
172,189
83,700
26,118
12,430
49,941
11,672
160,774
77,685
21,227
10,762
51,100
10,784
163,149
75,682
22,150
12,627
52,690
9,941
165,162
75,313
22,969
12,653
54,227
9,581
166,130
75,783
23,440
12,951
53,956
10,140
163,567
72,900
23,631
12,868
54,168
10,263
165,055
72,467
24,522
12,031
56,035
9,078
163,701
72,358
70
23,799
10,720
56,824
10,283
United Kingdom
81 Total payable in any currency
184,818
175,599
165,850
162,122
163,193
165,044
173,158
167,046
172,710
173,057
14,256
39,928
31,806
1,505
6,617
11,333
37,720
29,834
1,438
6,448
4,517
39,174
31,100
1,065
7,009
4,753
38,011
29,759
1,192
7,060
5,414
34,661
26,781
1,110
6,770
5,644
37,272
28,095
1,652
7,525
6,566
39,514
30,410
1,097
8,007
6,364
35,521
27,183
850
7,488
6,674
36,600
28,076
741
7,783
5,318
37,180
29,217
682
7,281
87 To foreigners
88 Other branches of parent bank
89 Banks
90 Official institutions
91 Nonbank foreigners
92 Other liabilities
108,531
36,709
25,126
8,361
38,335
22,103
98,167
30,054
25,541
9,670
32,902
28,379
107,176
35,983
25,231
12,090
33,872
14,983
104,356
33,424
23,985
10,531
36,416
15,002
108,670
33,545
26,082
12,342
36,701
14,448
106,834
31,437
27,184
11,752
36,461
15,294
106,725
32,275
25,848
12,139
36,463
20,353
105,949
28,408
28,504
11,885
37,152
19,212
112,121
30,534
29,039
11,575
40,973
17,315
112,534
31,578
28,064
12,425
40,467
18,025
93 Total payable in U.S. dollars
82 Negotiable CDs
83 To United States
84 Parent bank
85 Other banks in United States
86 Nonbanks
116,094
108,755
108,214
95,892
94,159
96,152
98,465
93,360
92,066
94,697
94 Negotiable CDs
95 To United States
% Parent bank
97 Other banks in United States
98 Nonbanks
12,710
34,697
29,955
1,156
3,586
10,076
33,003
28,260
1,177
3,566
3,894
35,417
29,957
709
4,751
3,765
33,552
28,405
707
4,440
4,214
30,170
25,315
676
4,179
4,392
32,457
26,631
1,311
4,515
5,462
34,523
28,747
847
4,929
5,197
30,669
25,753
637
4,279
4,890
31,579
26,600
476
4,503
3,728
32,838
28,039
397
4,402
99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
60,014
25,957
9,488
4,692
19,877
8,673
56,626
20,800
11,069
7,156
17,601
9,050
62,048
22,026
12,540
8,847
18,635
6,855
51,850
19,516
6,702
7,008
18,624
6,725
54,407
18,958
8,327
8,803
18,319
5,368
54,576
17,449
9,065
8,210
19,852
4,727
53,282
17,691
8,305
8,812
18,474
5,198
52,336
16,198
8,347
8,720
19,071
5,158
51,256
16,063
7,666
8,042
19,485
4,341
52,608
16,859
8,877
7,195
19,677
5,523
Bahamas and Cayman Islands
105 Total payable in any currency
162,316
168,512
147,422
149,461'
144,654'
142,872'
148,982'
140,580'
140,172
147,385
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States
110 Nonbanks
646
114,738
74,941
4,526
35,271
1,173
130,058
79,394
10,231
40,433
1,350
111,861
67,347
10,445
34,069
1,713
110,885r
60,152
11,492
39,241r
1,692
106,575r
60,033
10,291
36,251'
1,812
102,825'
57,132'
11,220
34,473'
1,535
109,238'
64,608'
11,567
33,063'
1,562
101,036'
59,352'
8,603
33,081'
1,307
99,418
58,031
7,791
33,5%
108,107
60,407
10,146
37,554
44,444
24,715
5,588
622
13,519
2,488
35,200
17,388
5,662
572
11,578
2,081
32,556
15,169
6,422
805
10,160
1,655
35,469'
18,048r
6,518r
867'
10,036r
1,394
34,888'
36,220'
18,652'
6,159'
1,064'
10,345
2,015
36,621'
18,944'
6,417'
1,031'
10,229
1,588
35,973'
18,164'
6,9%'
902'
9,911
2,009
37,808
19,103
7,766
836
10,103
1,639
36,449
18,609
6,288'
913'
10,187
1,499
157,132
163,789
143,150
144,810*"
139,536'
137,847'
144,014'
135,893'
135,483
142,449
111 To foreigners
112 Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
N.SOC
1,315
6,347
881
10,612
1,514
Summary Statistics
A57
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1993
Item
1 Total1
By type
2 Liabilities reported by banks in the United States
3 U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
4 Marketable
5 Nonmarketable
6 U.S. securities other than U.S. Treasury securities
7
8
9
10
11
12
By area
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
1991
1992
Mar.
Apr.
May
June
July r
Aug. r
Sept. p
360,530
398,672
410,078
413,661r
424,298
427,380r
426,726
436,676
445,703
38,396
92,692
54,823
104,596
63,079
113,547
62,814
113,293
69,199
120,194
72,533r
119,860
67,154
128,837
68,534
136,488
70,320
139,342
203,677
4,858
20,907
210,553
4,532
24,168
202,593
4,622
26,237
205,302
5,432r
26,820
201,878
5,417
27,610
201,118
5,451
28,418
196,238
5,488
29,009
196,962
5,508
29,184
200,352
5,542
30,147
171,317
7,460
33,554
139,465
2,092
6,640
191,708
7,920
40,015
152,142
3,565
3,320
189,804
9,326
44,464
158,017
3,919
4,546
187,899
8,302
49,146r
159,860
3,782
4,670
193,673
8,899
48,130
164,947
3,782
4,865
193,378
8,297
48,524
169,370"
3,621
4,188
188,930
8,808
53,764
168,859
2,844
3,519
191,840
8,075
55,327
174,671
3,109
3,652
198,013
8,260
54,678
177,441
3,888
3,421
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.
3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Reported by Banks in the United States1
Millions of dollars, end of period
1993
1992
Item
1 Banks' liabilities
2 Banks' claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers 2
1989
67,835
65,127
20,491
44,636
3,507
1. Data on claims exclude foreign currencies held by U.S. monetary
authorities.
1990
70,477
66,796
29,672
37,124
6,309
1991
75,129
73,195
26,192
47,003
3,398
Sept.
Dec.
Mar.
June
84,162
72,165
28,074
44,091
3,987
72,7%
62,789
24,240
38,549
4,432
80,999
64,057
24,928
39,129
2,625
74,697
55,161
23,449
31,712
3,234
2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.
A58
International Statistics • January 1994
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1993
Item
1990
1991
1992
Mar.
Apr.
May
June
July
Aug."
Sept. p
HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
759,634
756,066
811,371
799,660
792,760
793,584
821,035r
817,600"
842,673
857,894
2 Banks' own liabilities
3 Demand deposits
4 Time deposits
5 Other 3
6 Own foreign offices4
577,229
21,723
168,017
65,822
321,667
575,374
20,321
159,649
66,305
329,099
607,556
21,824
160,476
93,824
331,432
587,716
21,572
143,996
97,128
325,020
582,931
22,243
148,064
101,148
311,476
574,822
22,144
147,923
104,513
300,242
597,715r
21,467
152,169"
107,394r
316,685r
588,994"
21,815
151,393"
106,590"
309,1%"
606,405
21,501
153,119
116,141
315,644
614,084
25,444
153,618
112,716
322,306
182,405
96,796
180,692
110,734
203,815
127,644
211,944
137,059
209,829
138,014
218,762
144,129
223,320
144,059
228,606"
153,359"
236,268
161,654
243,810
165,388
17,578
68,031
18,664
51,294
21,974
54,197
22,303
52,582
21,539
50,276
24,515
50,118
30,056
49,205
26,477"
48,770
27,459
47,155
30,462
47,960
5,918
4,540
36
1,050
3,455
8,981
6,827
43
2,714
4,070
9,350
6,951
46
3,214
3,691
9,295
6,037
196
2,722
3,119
10,731
5,834
33
1,687
4,114
8,934
6,481
35
2,989
3,457
9,330"
6,270"
19
3,607r
2,644
9,387
6,197
29
2,920
3,248
12,265
8,571
37
2,882
5,652
11,095
7,681
21
4,199
3,461
1,378
364
2,154
1,730
2,399
1,908
3,258
2,876
4,897
4,461
2,453
1,883
3,060
2,320
3,190
2,635
3,694
3,418
3,414
3,199
1,014
0
424
0
486
5
382
0
433
3
564
6
740
0
549
6
276
0
215
0
119,303
34,910
1,924
14,359
18,628
131,088
34,411
2,626
16,504
15,281
159,419
51,058
1,274
17,823
31,961
176,626
59,576
1,457
18,814
39,305
176,107
59,393
1,361
19,166
38,866
189,393
63,575
1,386
21,682
40,507
192,393"
62,791"
2,204
19,408
41,179"
195,991"
61,752"
1,557"
18,626
41,569
205,022
61,962
1,294
17,800
42,868
209,662
63,719
1,951
20,370
41,398
84,393
79,424
96,677
92,692
108,361
104,596
117,050
113,547
116,714
113,293
125,818
120,194
129,602
119,860
134,239"
128,837"
143,060
136,488
145,943
139,342
4,766
203
3,879
106
3,726
39
3,411
92
3,284
137
5,480
144
9,602
140
5,297
105
6,514
58
6,149
452
540,805
458,470
136,802
10,053
88,541
38,208
321,667
522,265
459,335
130,236
8,648
82,857
38,731
329,099
547,988
476,785
145,353
10,168
90,368
44,817
331,432
521,961
452,894
127,874
10,485
74,331
43,058
325,020
512,921
446,694
135,218
10,883
79,592
44,743
311,476
503,421
436,547
136,305
11,386
76,439
48,480
300,242
525,237"
459,341"
142,656"
9,918
83,143
49,595"
316,685"
517,363"
450,359"
141,163"
10,675"
84,751
45,737
309,1%"
528,540
462,787
147,143
10,476
86,192
50,475
315,644
540,761
469,805
147,499
12,858
83,109
51,532
322,306
82,335
10,669
62,930
7,471
71,203
11,087
69,067
9,976
66,227
9,908
66,874
10,837
65,896
10,546
67,004
10,627
65,753
11,327
70,956
12,090
5,341
66,325
5,694
49,765
7,555
52,561
7,946
51,145
7,349
48,970
7,397
48,640
7,741
47,609
9,049
47,328
8,760
45,666
12,688
46,178
93,608
79,309
9,711
64,067
5,530
93,732
74,801
9,004
57,574
8,223
94,614
72,762
10,336
49,071
13,355
91,778
69,209
9,434
48,129
11,646
93,001
71,010
9,966
47,619
13,425
91,836
68,219
9,337
46,813
12,069
94,075"
69,313"
9,326
46,011"
13,976"
94,859"
70,686"
9,554
45,096"
16,036"
%,846
73,085
9,694
46,245
17,146
%,376
72,879
10,614
45,940
16,325
14,299
6,339
18,931
8,841
21,852
10,053
22,569
10,660
21,991
10,352
23,617
11,215
24,762
11,333
24,173"
11,260
23,761
10,421
23,497
10,757
6,457
1,503
8,667
1,423
10,207
1,592
10,564
1,345
10,473
1,166
11,074
1,328
11,973
1,456
11,582"
1,331
11,909
1,431
11,410
1,330
7,073
7,456
9,111
9,545
9,409
9,582
10,388
9,389
9,481
11,264
7 Banks' custodial liabilities5
8 U.S. Treasury bills and certificates6
9 Other negotiable and readily transferable
instruments 7
10 Other
11 Nonmonetary international and regional
organizations
Banks' own liabilities
Demand deposits
Time deposits
Other3
12
13
14
15
16
17
18
19
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
9
20 Official institutions
21 Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other3
25
26
27
28
Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 7
Other
29 Banks 10
30 Banks' own liabilities
Unaffiliated foreign banks
31
32
Demand deposits
33
Time deposits
34
Other.
35
Own foreign offices4
36
37
38
39
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments 7
Other
40 Other foreigners
41 Banks' own liabilities
42
Demand deposits
43
Time 3deposits
Other .
44
45
46
47
48
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments 7
Other
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in Consolidated Report of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts owed to head office or parent
foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, the
Inter-American 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."
Nonbank-Reported
3.17
Data
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1991
Item
Mar.
Apr.
May
June
July
Aug.
AREA
1 Total, all foreigners
2 Foreign countries
3 Europe
4 Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
8
France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
20 United Kingdom
21 Yugoslavia11
22 Other Europe and former U.S.S.R.
.
759,634
756,066
811,371
799,660
792,760
793,584
821,035r
817,600"
842,673"
753,716
747,085
802,021
790,365
782,029
784,650
811,705r
808,213r
830,408"
254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
119
7,544
1,837
36,690
1,169
109,555
928
13,234
249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
308,423
293,374
1,256
19,475
1,536
2,297
31,712
16,069
763
8,889
11,409
2,350
2,489
535
15,735
1,619
39,596
2,520
106,394
523
28,207
298,984
1,497
19,775
1,229
2,265
31,087
19,912
742
8,094
11,502
2,355
2,476
726
14,055
3,149
39,703
2,664
109,553
507
27,693
313,834
1,525
21,099
2,464
2,185
33,825
23,959
859
9,089
13,903
2,690
2,674
847
13,588
2,140
41,775
2,761
106,638
510
31,303
324,229"
1,4%
21,817
3,088
2,580
33,744
22,752
819
10,402
11,271
2,840
2,764
1,129
15,484
2,336
41,270
2,497
115,251r
512
32,177r
320,954"
1,415
20,805
3,983
2,873
33,963
24,498
1,078
10,721
10,465"
2,757
2,894
1,406"
16,593
335,490"
1,614"
23,345"
3,023"
2,959"
36,225"
22,199"
1,866
2,184
241
11,391
2,222
37,238
1,598
100,292
622
12,741
1,611
20,572
3,060
1,299
41,459
18,631
913
10,041
7,372
3,319
2,465
577
9,796
2,986
39,440
2,666
112,456
504
29,256
2,210
40,494
1,122
11,426
10,854"
2,833
3,015
2,254"
17,157
1,460
40,987
2,882
2,618
113,171"
501
28,245"
118,793"
511
33,095"
20,349
21,605
22,746
25,045
22,303
21,331
20,051
22,264
23,917"
24 Latin America and Caribbean
25 Argentina
26 Bahamas
27 Bermuda
28 Brazil
29 British West Indies
30 Chile
31 Colombia
32 Cuba
33 Ecuador
34 Guatemala
35 Jamaica
36 Mexico
37 Netherlands Antilles
38 Panama
39 Peru
40 Uruguay
41 Venezuela
42 Other
332,997
7,365
107,386
345,529
7,753
100,622
3,178
5,704
163,620
3,283
4,661
317,236
9,477
317,876
11
2
81,763
6,135
5,466
148,628
3,480
4,360
303,630
11,339
80,333
5,297
5,339
138,9%
3,520
4,338
1,379
1,541
257
16,650
7,357
4,574
1,294
2,520
12,271
6,779
1,232
1,594
231
19,957
5,592
4,695
1,249
2,096
13,181
6,879
7.079
5,584
153,035
3,035
4,580
3
993
1,377
371
19,456
5,205
4,177
1.080
1,955
11,387
6,154
319,872
11,569
83,633
6,271
5,462
152,448
3,325
4,183
3
931
1,382
309
21,762
4,222
3,918
995
1,815
11,452
6,192
923
1,352
293
24,8%
4,537
4,135
1,070
1,775
11,517
6,478
956
1,323
289
23,351
3,813
4,054
977
1,742
11,644
6,317
312,692r
11,289
80,715r
6,074
4,936
147,753
3,552
4,405
3
924
1,397
341
22,296r
4,059
979
1,775
12,242
6,203
311,963"
14,120
73,414"
6,969
5,425
147,618
3,934
4,464
5
889
1,304
341
24,117"
4,159"
3,747
891
1,775
12,373
6,418
312,818"
14,579
73,790"
6,931"
5,299
145,988"
3,5%
4,383
5
860
1,315
364
24,813
5,413"
3,657
898
43 Asia
China
44
People's Republic of China
45
Republic of China (Taiwan)
46 Hong Kong
47 India
48 Indonesia
49 Israel
50 Japan
51 Korea (South)
52 Philippines
53 Thailand
54 Middle Eastern oil-exporting countries
55 Other
136,844
120,462
143,561
140,519
131,117
134,032
143,229r
143,117"
147,563"
2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1.443
15,829
16,965
2,626
3,202
8,379
18,509
1,396
1,480
3,775
58,466
3,337
2,275
5,582
21,446
15,714
2,957
9,042
17,041
1,399
1,871
3,932
57,014
3,330
2,774
5,342
19,718
16,099
3,527
8,884
16,353
989
1,464
3,765
51,204
3,584
2,785
4,967
19,687
13,908
3,008
8,790
15,832
1,341
2,728
9,991"
16,193"
1,053"
3,292
9,476"
15,621"
3,163
54,462
3,922
2,458
5,377
19,272
14,546
2,885
9,618r
15,890rr
l,315
2,132
2,764
62,784
3,842
2,933
5,233r
20,327
13,506
6,508
3,084
87
243
13
1,239
1,842
6,441
2,938
151
246
14
1,294
1,798
6,477
2,922
144
198
16
1,368
1,829
6,475r
2,784
5,680"
1,880
2,018
265
15
1,332
1,960
138"
172
25
1,417
2,048
2,021
23 Canada
2,822
5,834
147,321
3,145
4,492
11,491
14,269
2,418
1.463
2,015
47,069
2,587
2,449
2,252
15,752
16,071
82,288
11,066
2
2
1,861
1,688
2,790
62,226
4,298
3,1%
5,830
18,409"
14,715
1,822
12,782
6,323"
1,211"
1,582
2,729"
68,052"
3,873
2,648
6,058
19,141"
13,880
5,649"
56 Africa
57 Egypt
58 Morocco
59 South Africa
60 Zaire
61 Oil-exporting countries
62 Other
4,630
1,425
104
4,825
228
228
1,710
1,784
5,884
2,472
76
190
19
1,346
1,781
63 Other
64
Australia
65 Other
4.444
3,807
637
5,567
4.464
1,103
4,171
3,047
1,124
5,047
4,013
1,034
5,308
4,056
1,252
5,346
4,449
897
5,029
4,078
951
4,235
3,253
982
4,971"
3,890"
66 Nonmonetary international and regional
organizations
67
International 15
68 Latin American regional
69 Other regional17
5,918
4,390
1,048
479
8,981
6,485
1,181
1,315
9,350
7,434
1,415
501
9,295
6,251
10,731
7,590
2,223
918
8,934
5,388
2,412
1,134
9,330r
5,812r
2,318
9,387
5,828
2,077
1,482
12,265"
8,267"
2,737
53
1,110
1,621
79
31
1,082
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Since December 1992, includes all parts of the
former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
2,021
1,023
119"
1,200
78"
233
20
1,279
1,081
1,261
14. Comprises Algeria, Gabon, Libya, and Nigeria.
15. Principally the International Bank for Reconstruction and Development.
Excludes "holdings of dollars" of the International Monetary Fund.
16. Principally the Inter-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
A59
A60
International Statistics • January 1994
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1993
Area and country
1990
1991
1992
July
Aug/
Sept. p
461,179
482,944r
471,863r
461,064
477,457
459,497
480,864r
470,556r
459,112
475,078
118,213
941
5,513
628
885
11,614
6,089
5%
8,218
3,278
676
593
3,080
3,441
4,229
4,735
1,508
59,703
550
1,936
122,297r
1,080
5,955
721
1,225
ll,833 r
6,236
564
9,250
2,764
789
670
3,045
3,607
4,062
4,123
1,584
62,565r
548
1,676
124,429r
587
6,127
835
1,007
11,847r
7,746
509
8,053
3,260
823
710
2,799
5,117
5,131
5,193
1,492
60,767r
547
1,879
116,836
691
6,515
693
705
11,500
6,766
508
8,839
3,081
941
803
2,591
4,184
4,278
5,634
1,549
55,118
547
1,893
124,521
457
6,535
631
599
10,978
7,974
629
8,976
3,443
841
787
2,547
3,652
4,619
5,216
1,431
62,764
542
1,900
Apr.
May
477,782
471,288
1 Total, all foreigners
511,543
514,339
2 Foreign countries
506,750
508,056
495,429
474,460
468,871
113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
530
2,668
2,094
4,202
1,405
65,151
1,142
1,095
114,310
327
6,158
686
1,907
15,112
3,371
553
8,242
2,546
669
344
1,970
1,881
2,335
4,540
1,063
60,395
825
1,386
123,999
331
6,404
707
1,419
14,803
4,229
718
9,048
2,472
356
325
3,147
2,772
4,929
4,722
962
63,928
569
2,158
122,504
894
6,273
682
1,010
13,235
5,725
583
8,418
2,676
645
454
2,906
3,859
4,809
4,348
943
62,241
553
2,250
120,313
1,013
6,177
645
998
13,141
5,322
618
8,724
2,607
714
513
2,889
3,642
4,509
4,361
1,285
60,725
551
1,879
3 Europe
4
Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
1? Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
70 United Kiiwdom
21 Yugoslavia^
22 Other Europe and former U.S.S.R. 3
500,511
June
Mar.
16,091
15,113
14,155
18,287
16,977
16,393
16,693
17,776
17,373
19,010
74 Latin America and Caribbean
7,5 Argentina
76 Bahamas
77 Bermuda
78 Brazil
79 British West Indies
30 Chile
31 Colombia
37 Cuba
33 Ecuador
34 Guatemala
35 Jamaica
36 Mexico
37 Netherlands Antilles
38 Panama
39 Peru
40 Uruguay
41 Venezuela
42 Other
231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384
246,137
5,869
87,138
2,270
11,894
107,846
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263
218,133
4,958
60,868
5,934
10,774
101,523
3,397
2,750
0
884
262
162
14,997
1,379
4,654
730
936
2,525
1,400
205,7%
4,844
59,018
3,910
10,871
93,896
3,638
2,807
0
819
274
168
15,115
2,105
2,721
650
846
2,558
1,556
202,149
3,931
59,418
5,609
10,815
88,975
3,552
2,786
0
807
269
161
15,534
1,971
2,491
691
787
2,495
1,857
197,039
3,942
56,188
3,089
10,710
89,853
3,718
2,876
0
770
256
165
14,%7
2,354
2,440
675
778
2,542
1,716
212,620"^
4,066
59,979
4,319
12,319
97,306r
3,675
2,847
1
771
266
184
15,279r
3,011
2,549
657
904
2,803
1,684
208,231 r
4,841
56,833r
8,578
10,842
91,566
3,898
2,886
0
732
240
182
15,685
3,172
2,532
651
807
3,001
1,785
207,483
4,740
56,266
7,122
10,927
93,436
3,7%
2,916
0
739
256
181
15,591
3,153
2,361
667
816
2,876
1,640
215,547
4,719
60,877
5,549
11,300
97,406
3,827
2,921
0
701
259
189
15,643
3,155
2,370
627
930
2,831
2,243
43
138,722
125,262
131,857
120,213
122,414
120,983
122,134r
112,8%r
111,140
109,123
620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106
747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796
906
2,046
9,673
529
1,189
820
79,189
6,180
2,145
1,867
18,559
8,754
939
1,630
10,563
443
1,469
8%
67,887
6,938
1,713
1,678
19,048
7,009
1,388
1,670
9,215
549
1,432
1,057
71,681
7,048
1,645
1,794
17,909
7,026
881
1,561
10,420
489
1,386
814
71,908
7,152
1,521
1,763
17,937
5,151
1,898
1,840
9,747
438
l,503r
777
71,327
7,428r
1,402
1,865
17,437
6,472
860
1,549
10,637
470
1,282r
733
62,501
7,587
1,357
2,006
16,946
6,968
638
1,585
9,390
439
1,289
775
64,837
7,245
1,250
2,018
15,912
5,762
700
1,593
11,145
570
1,287
747
60,364
7,092
1,143
2,146
14,251
8,085
5,445
380
513
1,525
16
1,486
1,525
4,928
294
575
1,235
4
1,298
1,522
4,279
186
441
1,041
4
1,002
1,605
3,907
192
396
1,011
3
1,140
1,165
3,767
151
396
924
3
1,128
1,165
3,661
151
420
803
3
1,144
1,140
3,812r
177
416
748r
3
1,156
1,312
3,856r
148
437
742r
4
1,232
1,293
3,902
168
443
705
4
1,224
1,358
4,023
176
454
713
3
1,205
1,472
63 Other
64 Australia
65 Other
1,892
1,413
479
2,306
1,665
641
3,006
2,262
744
3,753
3,117
636
3,251
2,635
616
3,208
2,534
674
3,308
2,574
734
3,368
2,443
925
2,378
1,847
531
2,854
2,446
408
66 Nonmonetary international and regional
organizations 6
4,793
6,283
5,082
3,322
2,417
1,682
2,080
1,307
1,952
2,379
23 Canada
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
44
45
46
47
48
49
50
51
57
53
54
55
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 4
Other
56
57
58
59
60
61
62
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries 5
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 and Eastern European
countries not listed in line 23. Since December 1992, includes all parts of the
former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
Nonbank-Reported
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
United States1
Payable in U.S. Dollars
Data
Reported by Banks in the
Millions of dollars, end of period
1993
Claim
1990
1991
1992
Mar.
Apr.
May
June r
471,288
30,390
287,119
97,747
47,816
49,931
56,032
461,179
29,601
282,587
94,727
47,327
47,400
54,264
482,944
29,409
298,972
93,965
46,273
47,692
60,598
1 Total
579,044
579,683
560,549
530,698
2 Banks' claims
3 Foreign public borrowers
4 Own foreign offices
5 Unaffiliated foreign banks
Deposits
6
7
Other
8 All other foreigners
511,543
41,900
304,315
117,272
65,253
52,019
48,056
514,339
37,126
318,800
116,602
69,018
47,584
41,811
500,511
31,376
304,623
109,643
61,277
48,366
54,869
477,782
33,722
294,513
97,041
48,778
48,263
52,506
67,501
14,375
65,344
15,280
60,038
15,452
52,916
14,363
49,883
12,960
41,333
37,125
31,454
24,976
23,488
11,792
12,939
13,132
13,577
13,435
13 Customer liability on acceptances
13,628
8,974
8,670
7,958
8,121
14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
44,638
42,936r
36,073r
36,441r
9 Claims of banks' domestic customers 3 ...
10 Deposits
11 Negotiable and readily transferable
instruments 4
12 Outstanding collections and other
claims
Julyr
Aug/
Sept."
471,863
32,579
280,120
92,865
44,823
48,042
66,299
461,064
30,284
274,979
93,936
45,427
48,509
61,865
477,457
31,919
286,232
96,229
44,705
51,524
63,077
31,510
31,398
n.a.
532,827
MEMO
33,016r
33,840r
29,687
foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
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 and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see Federal Reserve
Bulletin, vol. 65 (July 1979), p. 550.
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
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 Consolidated Report of Condition filed with
bank regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists principally of amounts due from head office or parent
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1992
Maturity, by borrower and area 2
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 other 3
Maturity of more than one year
14 Europe
15 Canada
16 Latin America and Caribbean
17
18 Africa
19 All other 3
1989
1990
Sept.
Dec.
Mar.
June
238,123
206,903
195,302
187,468
195,560
182,873
183,236
178,346
23,916
154,430
59,776
36,014
23,762
165,985
19,305
146,680
40,918
22,269
18,649
162,573
21,050
141,523
32,729
15,859
16,870
155,074
17,905
137,169
32,394
13,333
19,061
163,775
17,809
145,966
31,785
13,279
18,506
152,673
21,210
131,463
30,200
12,220
17,980
154,617
17,943
136,674
28,619
11,252
17,367
53,913
5,910
53,003
57,755
3,225
4,541
49,184
5,450
49,782
53,258
3,040
5,272
51,835
6,444
43,597
51,059
2,549
7,089
55,819
5,926
45,411
40,664
2,183
5,071
53,707
6,096
50,398
45,726
1,784
6,064
55,292
7,890
45,141
37,895
1,680
4,775
54,357
8,013
48,584
38,818
1,715
3,130
4,121
2,353
45,816
4,172
2,630
684
3,859
3,290
25,774
5,165
2,374
456
3,878
3,595
18,277
4,459
2,335
185
6,624
3,222
15,291
4,872
2,107
278
5,367
3,282
15,312
5,034
2,380
410
4,896
3,117
14,567
5,054
2,130
436
4,561
2,875
13,850
4,794
2,050
489
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
1993
1991
2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.
A61
A62
International Statistics • January 1994
3.21 CLAIMS ON FOREIGN COUNTRIES
Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1991
Area or country
1989
1992
1993
1990
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
June
340.9
320.1
322.3
338.4
343.6
351.7
359.4
346.0
347.6
363.0
377.6'
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.3
132.2
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.9
5.9
24.0
130.3
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.5
8.2
25.1
135.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
65.6
5.8
23.5
137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6
130.9
5.3
10.0
8.4
5.4
4.3
2.0
3.2
64.8
6.5
21.1
136.2
6.2
11.9
8.8
8.0
3.3
1.9
4.6
65.9
6.7
18.7
137.4
6.2
15.3
10.9
6.4
3.7
2.2
5.2
61.8
6.7
18.9
133.9
5.6
15.3
9.3
6.5
2.8
2.3
4.8
61.3
6.6
19.3
143.6
6.1
13.6
9.9
6.7
3.7
3.0
5.3
66.3
8.6
20.4
149.8r
7.0
M-C
10.8
7.6
3.7
2.5
4.7
73.5r
8.1
17.9
13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
21.0
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
1.0
2.0
1.6
22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8
21.3
1.1
1.2
.8
2.4
1.5
.6
7.1
1.9
1.1
1.8
2.0
22.1
1.0
.9
.6
2.3
1.4
.5
8.3
1.6
1.3
1.6
2.4
22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7
21.4
.8
.8
.8
2.3
1.5
.5
7.7
1.2
1.5
1.8
2.3
25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0
1.7
2.3
25.1
.7
1.5
1.0
3.0
1.6
.5
9.8
1.5
1.5
1.7
2.3
24.0
1.2
.9
.7
3.0
1.2
.4
9.0
1.3
1.7
1.7
2.9
25.5
1.2
.8
.7
2.8
1.8
.7
9.5
1.4
2.0
1.6
2.9
27.2
1.3
1.0
.9
3.1
1.8
.9
10.5
2.1
1.7
1.3
2.5
25 OPEC 2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
17.1
1.3
7.0
2.0
5.0
1.7
12.8
1.0
5.0
2.7
2.5
1.7
14.0
.9
5.3
2.6
3.7
1.5
15.6
.8
5.6
2.8
5.0
1.5
14.5
.7
5.4
2.7
4.2
1.5
15.8
.7
5.4
3.0
5.3
1.4
16.2
.7
5.3
3.0
5.9
1.4
15.9
.7
5.4
3.0
5.4
1.4
16.1
.6
5.2
3.0
6.2
1.1
16.8r
.6
5.3
3.1
6.6 r
1.1
15.9
.6
5.6
3.1
5.4
1.1
31 Non-OPEC developing countries
77.5
65.4
64.4
64.7
63.9
69.7
68.1
72.8
72.1
74.3
76.5
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.6
11.6
3.6
1.6
14.3
.5
2.0
4.5
10.5
3.7
1.6
16.2
.4
1.9
4.8
9.6
3.6
1.7
15.5
.4
2.1
5.0
10.8
3.9
1.6
17.7
.4
2.2
5.1
10.6
4.0
1.6
16.3
.4
2.2
6.2
10.8
4.2
1.7
17.1
.5
2.5
6.6
10.8
4.4
1.8
16.0
.5
2.6
7.0
11.6
4.6
1.9
16.8
.4
2.6
6.6
12.3
4.6
1.9
16.7
.4
2.7
39
40
41
42
43
44
45
46
47
Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia3
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
1.8
.4
4.1
2.8
.5
6.5
2.3
3.6
1.9
2.0
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0
.3
4.8
3.6
.4
6.9
2.5
3.6
1.7
2.3
.3
4.6
3.8
.4
6.9
2.7
3.1
1.9
2.5
.3
5.0
3.6
.4
7.4
3.0
3.6
2.2
2.7
.7
5.2
3.2
.4
6.6
3.1
3.6
2.2
2.7
.6
5.3
3.1
.5
6.5
3.3
3.4
2.2
2.7
1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa 3
.4
.9
.0
1.0
.4
.8
.0
1.0
.4
.7
.0
.8
.4
.7
.0
.8
.4
.7
.0
.7
.3
.7
.0
.7
.5
.7
.0
.6
.3
.6
.0
.9
.2
.6
.0
1.0
.2
.5
.0
.8
.2
.6
.0
.9
52 Eastern Europe
53 Russia
54 Yugoslavia
55 Other
3.5
.7
1.6
1.3
2.3
.2
1.2
.9
2.1
.4
1.0
.7
1.8
.4
.8
.7
2.4
.9
.9
.7
2.9
1.4
.8
.6
3.0
1.7
.7
.6
3.1
1.8
.7
.7
3.1
1.9
.6
.6
2.9
1.7
.6
.7
3.2
1.9
.6
.7
56 OflFshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama
62 Lebanon
63 Hong Kong
64 Singapore
65 Other
38.4
5.5
1.7
9.0
2.3
1.4
.1
11.3
7.0
.0
44.7
2.9
4.4
11.7
7.9
1.4
.1
9.7
6.6
.0
50.2
6.8
4.2
14.9
1.4
1.3
.1
14.3
7.2
.0
54.6
6.7
7.1
13.8
3.9
1.3
.1
14.0
7.7
.0
54.2
11.9
2.3
15.8
1.2
1.4
.1
14.4
7.1
.0
63.0
15.3
3.9
18.6
1.0
1.6
.1
14.0
8.5
.0
61.5
13.0
5.1
19.3
.8
1.9
.1
15.0
6.4
.0
54.6
9.0
3.8
16.9
.7
2.0
.1
15.2
6.8
.0
58.4
6.9
6.2
21.8
1.1
1.9
.1
13.8
6.5
.0
60. r
9.6
4.1
17.6
1.6
2.0
.1
16.7
8.4
.0
57.r
6.9
4.5
15.6r
2.5
2.1
.1
16.8
9.3
.0
66 Miscellaneous and unallocated6
30.5
39.9
40.0
44.4
48.0
47.8
48.6
36.8
39.7
39.5
47.3
1 Total
2 G-10 countries and Switzerland
3 Belgium and Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Other
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. U.S. office data include other types of
U.S.-owned depository institutions as well as some types of brokers and dealers.
To minimize duplication, the data are adjusted to exclude the claims on foreign
branches held by a U.S. office or another foreign branch of the same banking
institution. The data in this table combine foreign branch claims in table 3.14 (the
sum of lines 7 through 10) with the claims of U.S. offices in table 3.18 (excluding
those held by agencies and branches of foreign banks and those constituting
claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to
$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. Organization of Petroleum Exporting Countries, shown individually; other
members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally
members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.
Nonbank-Reported
Data
A63
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1993
1992
Type of liability and area or country
1989
1990
1991
Mar. r
June r
Sept. r
Dec. r
Mar.
r
June"
1
38,764
46,043
43,692
44,879
45,251
46,125
44,322
45,177
46,141
7 Payable in dollars
3 Payable in foreign currencies
33,973
4,791
40,786
5,257
38,117
5,575
39,243
5,636
38,480
6,771
37,499
8,626
36,623
7,699
37,064
8,113
36,602
9,539
17,879
14,035
3,844
21,066
16,979
4,087
22,055
17,760
4,295
22,813
18,407
4,406
22,823
17,503
5,320
24,061
17,092
6,969
22,804
16,178
6,626
23,071
16,348
6,723
24,219
16,262
7,957
20,885
8,070
12,815
24,977
10,683
14,294
21,637
8,699
12,938
22,066
9,164
12,902
22,428
9,769
12,659
22,064
9,727
12,337
21,518
9,437
12,081
22,106
9,945
12,161
21,922
9,692
12,230
19,938
947
23,807
1,170
20,357
1,280
20,836
1,230
20,977
1,451
20,407
1,657
20,445
1,073
20,716
1,390
20,340
1,582
11,660
340
258
464
941
541
8,818
10,978
394
975
621
1,081
545
6,357
11,878
236
2,106
682
1,056
408
6,383
12,729
192
1,997
666
1,025
355
7,588
13,460
213
2,324
634
979
490
7,933
14,252
276
2,785
738
980
627
8,044
13,024
434
1,608
810
606
569
8,327
13,343
306
1,610
820
639
503
8,911
14,355
268
2,295
781
690
554
9,112
By type
4
5
6
Payable in dollars
Payable in foreign currencies
7 Commercial liabilities
8
9 Advance receipts and other liabilities
10
11
Payable in foreign currencies
By area or country
Financial liabilities
1?
13
14
15
16
17
18
19
70
71
77
73
74
75
26
Belgium and Luxembourg
Netherlands
United Kingdom
Canada
Latin America and Caribbean
British West Indies
Venezuela
77
78
29
Middle East oil-exporting countries
30
31
Oil-exporting countries
32
2
All other 4
Commercial liabilities
33
34
35
36
37
38
39
Belgium and Luxembourg
United Kingdom
40
41
47
43
44
45
46
47
Latin America and Caribbean
British West Indies
48
49
50
Middle Eastern oil-exporting countries
51
52
Oil-exporting countries3
53
Other 4
,5
610
229
292
308
362
345
516
576
492
1,357
157
17
0
724
6
0
4,153
371
0
0
3,160
5
4
4,404
537
114
6
3,144
7
4
4,230
406
114
8
3,088
7
4
3,503
353
114
10
2,352
8
4
3,592
230
115
18
2,528
12
5
3,565
359
114
19
2,382
12
6
3,624
509
114
18
2,307
13
5
3,428
404
124
18
2,202
11
5
4,151
3,299
2
5,295
4,065
5
5,423
4,187
13
5,451
4,192
13
5,409
4,316
10
5,782
4,749
17
5,665
4,639
19
5,467
4,495
24
5,764
4,621
19
2
0
2
0
6
4
7
6
0
0
5
0
6
0
6
0
130
123
100
409
52
88
89
85
28
55
50
9,071
175
877
1,392
710
693
2,620
10,310
275
1,218
1,270
844
775
2,792
8,147
248
963
950
710
575
2,311
7,693
256
683
885
574
543
2,446
7,332
240
662
707
605
461
2,405
6,992
173
694
759
601
482
2,282
7,028
298
673
632
557
416
2,478
6,768
269
677
563
667
532
2,157
6,945
267
769
634
710
435
2,186
1,124
1,261
1,014
1,115
1,109
1,114
923
998
933
1,224
41
308
100
27
323
164
1,672
12
538
145
30
475
130
1,355
3
310
219
107
307
94
1,704
13
493
230
108
378
168
1,814
8
409
218
73
480
279
1,493
3
325
121
85
326
125
1,619
6
312
211
57
446
130
1,912
18
437
238
87
544
167
1,814
6
356
225
16
659
163
7,550
2,914
1,632
9,483
3,651
2,016
9,335
3,722
1,498
9,895
3,550
1,592
10,445
3,538
1,778
11,026
3,918
1,813
10,815
4,005
1,793
11,109
4,096
1,775
10,965
3,723
1,771
886
339
844
422
715
327
646
253
777
389
675
335
559
295
590
236
603
315
1,030
1,406
1,071
1,013
951
764
574
729
662
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigena.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
A64
International Statistics • January 1994
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
the United States1
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1992r
Type, and area or country
1989
1990
1993
1991r
Mar.
June
Sept.
Dec.
Mar/
June?
1 Total
33,173
35,348
44,799
44,689
46,068
45,755
40,755
45,134
40,849
2 Payable in dollars
3 Payable in foreign currencies
30,773
2,400
32,760
2,589
42,238
2,561
42,057
2,632
43,069
2,999
42,795
2,960
38,247
2,508
42,405
2,729
37,797
3,052
By type
4 Financial claims
5 Deposits
Payable in dollars
6
Payable in foreign currencies
7
8 Other financial claims
Payable in dollars
9
Payable in foreign currencies
10
19,297
12,353
11,364
989
6,944
6,190
754
19,874
13,577
12,552
1,025
6,297
5,280
1,017
27,635
19,856
18,981
875
7,779
6,899
880
27,821
19,969
18,770
1,199
7,852
7,130
722
28,783
19,679
18,324
1,355
9,104
8,397
707
28,395
19,405
18,268
1,137
8,990
7,983
1,007
23,257
14,991
14,202
789
8,266
7,520
746
25,916
16,520
15,464
1,056
9,396
8,670
726
21,480
11,598
10,682
916
9,882
8,985
897
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
13,876
12,253
1,624
15,475
13,657
1,817
17,164
14,438
2,726
16,868
14,301
2,567
17,285
14,822
2,463
17,360
14,655
2,705
17,498
15,210
2,288
19,218
17,096
2,122
19,369
16,939
2,430
13,219
657
14,927
548
16,358
806
16,157
711
16,348
937
16,544
816
16,525
973
18,271
947
18,130
1,239
8,463
28
153
152
238
153
7,496
9,645
76
371
367
265
357
7,971
13,277
13
269
287
334
581
11,366
13,834
12
252
266
707
647
11,580
12,871
25
777
358
715
765
8,692
11,229
16
768
296
750
587
8,002
9,131
8
762
330
515
487
6,054
10,180
6
905
382
544
478
6,833
9,407
13
774
377
499
460
6,350
14
15
16
17
18
19
20
21
22
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
1,904
2,934
2,642
2,694
2,545
2,281
1,704
2,107
1,758
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,020
1,890
7
224
5,486
94
20
6,201
1,090
3
68
4,635
177
25
10,634
784
8
351
9,016
212
40
10,244
493
12
346
8,965
212
34
12,001
538
12
331
10,699
244
32
13,731
1,212
65
589
11,422
239
26
11,032
638
40
686
9,196
286
29
9,611
320
79
592
8,159
235
23
6,612
697
258
590
4,558
270
24
31
32
33
Asia
Japan
Middle East oil-exporting countries
590
213
8
860
523
8
640
350
5
617
355
3
952
705
4
717
471
4
806
643
3
3,263
3,066
3
2,961
2,444
10
34
35
Africa
Oil-exporting countries 3
140
12
37
0
57
1
60
0
57
0
71
1
79
9
128
1
125
1
180
195
385
372
357
366
505
627
617
6,209
242
964
696
479
313
1,575
7,044
212
1,240
807
555
301
1,775
7,992
192
1,583
952
643
295
2,084
7,971
182
1,663
946
646
323
2,085
8,239
255
1,685
919
666
394
2,172
7,909
173
1,824
895
588
305
2,004
7,776
186
1,493
898
541
307
1,941
8,415
169
1,465
960
724
426
2,312
8,770
170
1,452
964
555
441
2,506
36
37
38
39
40
41
42
43
All other
4
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,091
1,074
1,111
1,121
1,063
1,138
1,213
1,259
1,285
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,184
58
323
297
36
508
147
2,375
14
246
326
40
661
192
2,649
13
264
425
41
839
203
2,630
12
273
372
45
907
207
2,727
12
291
447
32
859
253
3,213
12
256
406
43
973
307
2,962
27
246
348
38
903
338
3,388
18
195
821
17
967
336
3,376
16
239
780
42
876
310
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries'1
3,570
1,199
518
4,127
1,460
460
4,592
1,900
621
4,368
1,796
635
4,499
1,798
609
4,314
1,774
513
4,649
1,812
679
5,295
2,122
756
5,029
1,824
659
55
56
Africa
Oil-exporting countries
429
108
488
67
427
95
424
75
428
73
439
60
549
78
454
75
507
97
57
Other 4
393
367
393
354
329
347
349
407
402
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A65
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1993
Transaction and area or country
1991
1993
1992
Jan.Sept.
Mar.
Apr.
May
June
July
Aug. r
Sept. p
26,111
23,693
23,843
23,009
U.S. corporate securities
STOCKS
211,207
200,116
221,426
226,548
221,932
212,947
27,061
24,615
25,123
25,454
23,094
22,308
24,310
23,467
24,441r
25,046r
3 Net purchases or sales (—)
11,091
-5,122
8,985
2,446
-331
786
843
—605r
2,418
834
4 Foreign countries
10,522
-5,155
8,719
2,289
-339
790
815
—652r
2,391
916
53
9
-63
-227
-131
-352
3,845
2,177
-134
4,255
1,179
153
174
-4,913
-1,350
-66
-262
168
-3,301
1,407
2,203
-88
-3,943
-3,598
10
169
3,338
-404
923
-153
2,033
-81
-2,834
2,454
-298
6,031
2,308
32
-4
972
-183
100
68
356
475
167
403
-13
763
250
2
-5
-650
-154
137
32
280
-1,140
91
246
7
2
-530
-48
13
-619
-86
6
35
50
-689
-132
509
56
910
452
10
56
415
-66
99
-91
178
195
-532
72
-22
1,073
230
20
-211
-185
45
76
-452
369
-73
-1,400
413
-135 r
632
626
-49
72
670
-9
202
133
354
-204
-128
591
-44
1,204
860
63
35
408
-149
112
69
-260
570
-616
150
10
977
1,016
3
-16
568
33
266
157
8
-4
28
47
27
-82
153,096
125,637
214,922
175,737
198,613
158,383
25,216
23,264
20,817
15,765
19,325
15,514
24,091
16,825
22,738
20,730
22,288
16,475
24,747
15,791
1 Foreign purchases
2 Foreign sales
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 East 1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS
2
19 Foreign purchases
20 Foreign sales
21 Net purchases or sales ( - )
27,459
39,185
40,230
1,952
5,052
3,811
7,266
2,008
5,813
8,956
22 Foreign countries
27,590
38,069
39,922
2,088
5,073
3,843
7,229
2,018
5,807
8,270
73
74
7.5
76
77
28
79
30
31
37
33
34
35
13,112
847
1,577
482
656
8,931
1,623
2,672
1,787
8,459
5,767
52
-116
17,540
1,203
2,480
540
-579
12,526
237
9,300
3,166
7,545
-450
354
-73
13,857
1,579
638
84
-779
11,392
1,185
8,435
2,067
13,221
6,573
985
172
31
75
-55
-178
11
-237
138
490
263
1,216
595
-10
-40
1,616
508
815
108
-239
975
291
632
463
2,082
991
0
-11
360
595
228
-7
-219
-303
20
1,262
115
2,062
940
21
3
2,710
-12
-241
-134
-56
3,033
397
1,770
202
2,089
863
2
59
-1,001
-76
2
11
172
-1,214
218
901
147
1,382
890
224
147
2,108
64
-207
317
-327
1,853
164
1,678
158
1,432
919
317
-50
4,187
13
-44
219
-205
3,959
249
846
171
2,504
1,124
236
77
-131
1,116
308
-136
-21
-32
37
-10
6
686
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
37 Stocks, net purchases or sales ( - ) '
38 Foreign purchases
39 Foreign sales
40 Bonds, net purchases or sales ( - )
Foreign purchases
41
42 Foreign sales
-31,967
120,598
152,565
-14,828
330,311
345,139
-32,295
150,037
182,332
-19,585
486,238
505,823
-47,730
161,326
209,056
-51,636
566,535
618,171
-4,583
17,436
22,019
-4,631
70,132
74,763
-4,029
19,297
23,326
-2,913
55,766
58,679
-3,793
16,465
20,258
-545
58,771
59,316
-6,317
18,523
24,840
-7,528
70,377
77,905
-7,964 r
19,620
27,584r
—10,633rr
68,769
79,402r
43 Net purchases or sales ( - ) , of stocks and bonds
-46,795
-51,880
-99,366
-9,214
-6,942
-4,338
-13,845
—18,597r
-13,135
-14,751
44 Foreign countries
-46,711
-55,216
-99,142
-8,945
-7,221
-4,671
-13,907
—18,707r
-13,189
-14,827
45
46
47
48
49
50
-34,452
-7,004
759
-7,350
-9
1,345
-37,284
-6,635
-3,881
-6,654
-2
-760
-73,712
-14,356
-480
-8,649
-192
-1,753
-3,098
-3,034
68
-2,481
-18
-382
-3,252
-818
-2,551
-531
-18
-51
-5,382
11
1,092
-185
-186
-21
-11,719
-1,277
421
-780
9
-561
-15,488 r
-2,557
—635r
121r
4r
-152
-10,461
1,635
-1,124
-2,606
7
-640
-11,164
-3,127
2,029
-2,343
14
-236
-84
3,336
-224
-269
279
333
62
110
54
76
Europe
Canada
Latin America and Caribbean
Africa
Other countries
51 Nonmonefairy 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.
-12,020
20,687
32,707
-1,115
75,938
77,053
-5,115
21,500
26,615
-9,636
72,191
81,827
3. In a July 1989 merger, the former stockholders of a U.S. company received
$5,453 million in shares of the new combined U.K. company. This transaction is
not reflected in the data.
A66
International Statistics • January 1994
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars
Foreign Transactions
1993
Country or area
1993
1992
1991
Jan.Sept.
Mar.
Apr.
May
June
July
Aug/
Sept. p
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total
19,865
39,288
4,663
6,581
4,232
-1,159
-5,710
-1,531
13,980
-10,896
2 Foreign countries
19,687
37,935
3,761
6,029
4,393
-877
-5,955
-1,144
14,368
-10,743
3 Europe
Belgium and Luxembourg
4
Germany
5
Netherlands
6
Sweden
7
Switzerland
8
United Kingdom
9
Other Europe and former U.S.S.R
10
11 Canada
8,663
523
-4,725
-3,735
-663
1,007
6,218
10,037
-3,019
19,625
1,985
2,076
-2,959
-804
488
24,184
-5,345
562
-5,469
1,466
-10,974
-26
1,264
-2,452
7,745
-2,492
9,390
-3,379
640
-2,757
66
-540
-1,569
742
39
2,490
1,518
-387
-1,382
731
-100
-719
2,659
716
1,386
-190
647
-3,3%
108
649
108
2,948
-1,254
522
1,473
86
-1,100
-393
673
888
2,147
-828
133
-1,539
505
-2,918
524
32
-223
1,455
-914
2,270
3,547
-218
305
-167
293
-74
3,787
-379
324
-5,917
207
1,209
137
53
-209
-8,201
887
-1,119
12 Latin America and Caribbean
13 Venezuela
14 Other Latin America and Caribbean
15 Netherlands Antilles
16
17 Japan
18 Africa
19 Other
10,285
10
4,179
6,097
3,367
-4,081
689
-298
-3,222
539
-1,956
-1,805
23,517
9,817
1,103
-3,650
-5,633
416
-5,504
-545
6,771
10,604
932
-2,230
-537
154
-471
-220
7,220
3,457
-66
301
-2,020
74
1,096
-3,190
3,813
3,324
67
-371
-3,880
152
-1,863
-2,169
2,994
3,291
-2
-321
-1,419
5
711
-2,135
-5,687
-301
81
-536
-333
2
510
-845
-2,587
-980
116
929
6,917
-7
1,178
5,746
3,755
3,561
292
-467
-3,311
32
-1,700
-1,643
-569
-1,809
616
—443
178
-358
-72
1,353
1,018
533
902
-408
638
552
56
1
-161
-228
16
-282
-318
-17
245
402
106
-387
-321
-21
-388
-698
30
-153
-110
18
19,687
1,190
18,496
37,935
6,876
31,059
3,761
-10,201
13,962
6,029
-616
6,645
4,393
2,709
1,684
-877
-3,424
2,547
-5,955
-760
-5,195
-1,144
-4,880
3,736
14,368
724
13,644
-10,743
3,390
-14,133
-6,822
239
4,317
11
-8,094
4
811
0
114
-4
-1,070
0
-2,443
0
-1,261
0
-1,172
0
-980
0
20 Nonmonetary international and regional organizations
21 International
22 Latin American regional
MEMO
23 Foreign countries
24 Official institutions
25 Other foreign2
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.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A67
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year
Rate on Nov. 30, 1993
Country
Month
effective
5.25
5.5
4.34
6.50
6.45
Austria..
Belgium .
Canada..
Denmark
France 2 ..
Rate on Nov. 30, 1993
Rate on Nov. 30, 1993
Country
Country
Nov. 1993
Nov. 1993
Nov. 1993
Nov. 1993
Oct. 1993
Germany...
Italy
Japan
Netherlands
Percent
Month
effective
5.75
Oct. 1993
Oct. 1993
Sept. 1993
Oct. 1993
8.0
1.75
5.25
1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood
that the central bank transacts the largest proportion of its credit operations.
Norway
Switzerland
United Kingdom
Percent
Month
effective
7.0
4.25
Oct. 1993
Oct. 1993
Sept. 1992
12.0
2. Since February 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.
3.27 FOREIGN SHORT-TERM INTEREST RATES1
Percent per year, averages of daily figures
1993
Type or country
8 Italy
1990
8.16
14.73
13.00
8.41
8.71
8.57
10.20
12.11
9.70
7.75
1991
5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33
1992
3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39
1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
CD rate.
May
June
July
Aug.
Sept.
Oct.
Nov.
3.12
5.91
5.29
7.41
• 4.97
6.98
7.48
10.74
7.16
3.24
3.21
5.83
4.91
7.51
4.99
6.64
7.19
10.18
6.87
3.23
3.17
5.88
4.48
7.12
4.62
6.45
7.72
9.42
7.12
3.22
3.14
5.79
4.58
6.49
4.56
6.27
7.45
9.20
9.02
3.02
3.08
5.88
4.90
6.52
4.61
6.26
7.07
9.05
9.82
2.59
3.26
5.74
4.76
6.53
4.44
6.20
6.85
8.69
9.05
2.44
3.36
5.52
4.34
6.20
4.44
5.85
6.56
8.94
7.93
2.31
A68
International Statistics • January 1994
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1993
Country/currency unit
1
2
3
4
5
6
7
8
9
10
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
1990
1991
1992
June
July
Aug.
Sept.
Oct.
Nov.
78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59
77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63
73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81
67.492
11.637
34.009
1.2789
5.7504
6.3380
5.5674
5.5700
1.6547
225.45
67.788
12.071
35.483
1.2820
5.7756
6.6531
5.7852
5.8464
1.7157
234.77
67.736
11.920
35.985
1.3080
5.7906
6.8976
5.8315
5.9298
1.6944
237.64
65.167
11.402
34.847
1.3215
5.8015
6.6336
5.7868
5.6724
1.6219
232.56
66.100
11.540
35.674
1.3263
5.8013
6.6379
5.7554
5.7541
1.6405
237.93
66.465
11.958
36.227
1.3174
5.8086
6.7667
5.8143
5.9069
1.7005
243.43
7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
7.7712
22.712
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77
7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07
7.7362
31.668
147.47
1,505.05
107.41
2.5696
1.8559
53.949
6.9986
157.63
7.7556
31.600
140.83
1,586.02
107.69
2.5672
1.9299
54.900
7.3179
167.87
7.7515
31.612
139.05
1,603.75
103.77
2.5514
1.9062
55.261
7.3579
173.27
7.7384
31.578
143.40
1,569.10
105.57
2.5475
1.8214
55.157
7.0829
166.28
7.7307
31.505
143.19
1,600.93
107.02
2.5478
1.8438
55.260
7.1755
169.60
7.7272
31.434
140.31
1,666.31
107.88
2.5548
1.9084
54.787
7.3882
173.93
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74
1.6294
2.8524
784.58
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63
1.6175
3.2408
805.91
127.11
48.073
7.4541
1.4769
26.267
25.214
150.82
1.6206
3.3518
809.58
134.93
48.643
7.9802
1.5147
26.682
25.331
149.55
1.6100
3.3660
811.94
138.51
48.750
8.0466
1.4966
26.950
25.191
149.14
1.5972
3.4135
811.84
130.54
48.854
8.0170
1.4182
26.931
25.196
152.48
1.5735
3.3924
813.45
132.18
48.954
8.0195
1.4432
26.865
25.269
150.23
1.5950
3.3680
809.79
137.27
49.187
8.2660
1.4969
26.884
25.382
148.08
89.09
89.84
86.61
91.81
94.59
94.32
92.07
93.29
95.47
MEMO
31 United States/dollar3
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of ten industrial countries. The weight for each of the ten countries is
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).
A69
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List
Published Semiannually,
with Latest Bulletin Reference
Issue
December 1993
Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Quarterly Data Published Irregularly,
Page
A78
with Latest Bulletin Reference
Title and Date
Issue
Page
Assets and liabilities of commercial banks
September 30, 1992
December 31, 1992
March 31, 1993
June 30, 1993
February
May
August
November
1993
1993
1993
1993
A70
A70
A70
A70
Terms of lending at commercial banks
November 1992
February 1993
May 1993
August 1993
February
May
August
November
1993
1993
1993
1993
A76
A76
A76
A76
Assists and liabilities of U.S. branches and agencies of foreign banks
September 30, 1992
December 31, 1992
March 31, 1993
June 30, 1993
February
May
August
November
1993
1993
1993
1993
A80
A80
A80
A80
Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992
November
January
August
October
1991
1992
1992
1992
A80
A70
A80
A70
Assets and liabilities of life insurance companies
June 30, 1991
September 30,1991
December 31, 1991
September 30, 1992
December
May
August
March
1991
1992
1992
1993
A79
A81
A83
A71
A70
Index to Statistical Tables
References are to pages A3-A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 22, 23
Assets and liabilities (See also Foreigners)
Banks, by classes, 20-23
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 24
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 23, 26
Bankers balances, 20-23. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 24, 55
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 20
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 18, 22
Weekly reporting banks, 22-24
Commercial banks
Assets and liabilities, 20-23
Commercial and industrial loans, 18, 20, 21, 22, 23, 24
Consumer loans held, by type and terms, 39
Deposit interest rates of insured, 16
Loans sold outright, 22
Nondeposit funds, 19
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 4
Commercial paper, 25, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45,49
Consumer installment credit, 39
Consumer prices, 45,46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 20-24
Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 24
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific
types)
Banks, by classes, 4, 20-23, 24
Federal Reserve Banks, 5,11
Interest rates, 16
Turnover, 17
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, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasuryfinancingof surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 22, 23, 24, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 25, 26
Financial institutions, loans to, 22, 23, 24
Float, 51
Flow of funds, 40, 42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 23, 24
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 22, 23
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66
A71
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51,52
Industrial production, 45, 47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific
types)
Banks, by classes, 20, 21, 22, 23, 24
Commercial banks, 4, 18, 20-23
Federal Reserve Banks, 11, 12
Financial institutions, 38
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific
types)
Banks, by classes, 20-23
Commercial banks, 4, 18, 20-23
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45,47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 18, 22, 23, 38
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 19, 22, 23, 24
Reserve requirements, 9
Reserves
Commercial banks, 20
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 45
SAVING
Flow of funds, 40, 42, 43, 44
National income accounts, 51
Savings and loan associations, 38, 39,40. (See also SAIF-insured
institutions)
Savings banks, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific
types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 22, 23
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 22, 23
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 20, 21, 22, 23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 20-23, 24, 30
Dealer transactions, positions, andfinancing,32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 66
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 25
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
A72
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
DAVID W . MULLINS, JR., Vice Chairman
OFFICE OF BOARD
DIVISION OF INTERNATIONAL
MEMBERS
JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant
WAYNE D . ANGELL
EDWARD W . KELLEY, JR.
to the Board
to the Board
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
LYNN S. Fox, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
EDWIN M. TRUMAN, Staff
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W. HENDERSON, Associate Director
DAVID H. HOWARD, Senior
Adviser
DONALD B . ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director
KAREN H. JOHNSON, Assistant
Director
RALPH W. SMITH, JR., Assistant
LEGAL
FINANCE
Director
Director
DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
OFFICE OF THE SECRETARY
WILLIAM W . WILES,
Secretary
JENNIFER J. JOHNSON, Associate
Secretary
BARBARA R. LOWREY, Associate
Secretary
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN,
Director
STEPHEN C. SCHEMERING, Deputy
DON E. KLINE, Associate
Director
MICHAEL J. PRELL,
STATISTICS
Director
EDWARD C. ETTIN, Deputy
Director
WILLIAM R. JONES, Associate
Director
THOMAS D . SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate Director
DAVID J. STOCKTON, Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
MYRON L. KWAST, Assistant
Director
PATRICK M. PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director
JOYCE K. ZICKLER, Assistant
Director
JOHN J. MINGO, Senior
Adviser
LEVON H. GARABEDIAN, Assistant
Director
(Administration)
Director
WILLIAM A. RYBACK, Associate
Director
FREDERICK M. STRUBLE, Associate Director
HERBERT A. BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A. AMER, Assistant
Director
GERALD A. EDWARDS, JR., Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
STEPHEN M . HOFFMAN, JR., Assistant
Director
LAURA M. HOMER, Assistant
Director
JAMES V. HOUPT, Assistant
Director
JACK P. JENNINGS, Assistant
Director
MICHAEL G. MARTINSON, Assistant
Director
RHOGER H PUGH, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
MOLLY S. WASSOM, Assistant
Director
DIVISION OF RESEARCH AND
DIVISION OF MONETARY
DONALD L . KOHN,
AFFAIRS
Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D. PORTER, Deputy Associate Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD,
Director
GLENN E. LONEY, Associate
Director
DOLORES S. SMITH, Associate
Director
MAUREEN P. ENGLISH, Assistant
Director
IRENE SHAWN M C N U L T Y , Assistant
Director
A73
SUSAN M . PHILLIPS
JOHN P. LAWARE
LAWRENCE B . LINDSEY
OFFICE OF
STAFF DIRECTOR
FOR
MANAGEMENT
S. DAVID FROST, Staff
Director
WILLIAM SCHNEIDER, Special
Assignment:
Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR.,
OPERATIONS
Director
DAVID L. ROBINSON, Deputy Director (Finance and
Control)
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director
EARL G. HAMILTON, Assistant Director
DIVISION OF HUMAN
MANAGEMENT
DAVID L . S H A N N O N ,
RESOURCES
Director
ANTHONY V. DIGIOIA, Assistant
JOSEPH H. HAYES, JR., Assistant
FRED HOROWITZ, Assistant
OFFICE OF THE
LOUISE L. ROSEMAN, Assistant
FLORENCE M. YOUNG, Assistant
Director
JOHN R. WEIS, Associate
Director
Director
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION OF SUPPORT
SERVICES
Director
GEORGE M . LOPEZ, Assistant
Director
DAVID L. WILLIAMS, Assistant Director
DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,
RESOURCES
Director
BRUCE M. BEARDSLEY, Deputy Director
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant
Director
Director
DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B. RIGGS, Assistant
RICHARD C. STEVENS, Assistant
Director
Director
Director
Director
Director
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
Director
CONTROLLER
GEORGE E . LIVINGSTON,
ROBERT E . FRAZIER,
JEFFREY C. MARQUARDT, Assistant
JOHN H. PARRISH, Assistant Director
GENERAL
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
A74
Federal Reserve Bulletin • January 1994
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN,
WILLIAM J. MCDONOUGH, Vice Chairman
Chairman
WAYNE D . ANGELL
JERRY L . JORDAN
J. ALFRED BROADDUS, JR.
EDWARD W . KELLEY, JR.
SUSAN M . PHILLIPS
ROBERT P. FORRESTAL
JOHN P. LAWARE
ROBERT T. PARRY
DAVID W . MULLINS, JR.
LAWRENCE B . LINDSEY
ALTERNATE
THOMAS M . HOENIG
THOMAS C . MELZER
SILAS KEEHN
JAMES H . OLTMAN
MEMBERS
RICHARD F. SYRON
STAFF
DONALD L. KOHN, Secretary and
Economist
NORMAND R.V. BERNARD, Deputy
Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,
Economist
EDWIN M . TRUMAN,
Economist
RICHARD G. DAVIS, Associate
Economist
RICHARD W. LANG, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
JOAN E. LOVETT, Manager for Domestic Operations, System Open Market Account
PETER R. FISHER, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
E. B. ROBINSON, JR.,
President
JOHN B. MCCOY, Vice President
First District
JR., Second District
ANTHONY P. TERRACCIANO, Third District
JOHN B . MCCOY, Fourth District
EDWARD E . CRUTCHFIELD, JR., Fifth District
E . B . ROBINSON, JR., Sixth District
MARSHALL
N.
CARTER,
CHARLES S . SANFORD,
Seventh District
III, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
CHARLES R . HRDLICKA, Eleventh District
RICHARD M . ROSENBERG, Twelfth District
EUGENE A . MILLER,
ANDREW
HERBERT V. PROCHNOW,
WILLIAM J. KORSVIK, Associate
B.
CRAIG,
Secretary
Secretary
A75
CONSUMER ADVISORY
COUNCIL
Denver, Colorado, Chairman
Chicago, Illinois, Vice Chairman
DENNY D . DUMLER,
JEAN POGGE,
Charlottesville, Virginia
Madison, Wisconsin
GARY S. HATTEM, New York, New York
JULIA E. HILER, Marietta, Georgia
RONALD HOMER, Boston, Massachusetts
THOMAS L. HOUSTON, Dallas, Texas
BARRY A. ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN
BONNIE GUITON,
JOYCE HARRIS,
A. BAKER, Atlanta, Georgia
Denver, Colorado
VERONICA E. BARELA,
MULUGETTA BIRRU, Pittsburgh, Pennsylvania
St. Paul, Minnesota
Bronx, New York
DOUGLAS D . BLANKE,
GENEVIEVE BROOKS,
HENRY JARAMILLO, Belen, N e w Mexico
TOYE L. BROWN, Boston, Massachusetts
EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .
CATHY CLOUD, W a s h i n g t o n , D . C .
JOHN V. SKINNER, Irving, Texas
D. EDWARDS, Yelm, Washington
MICHAEL FERRY, St. Louis, Missouri
NORMA L. FREIBERG, New Orleans, Louisiana
LORI GAY, Los Angeles, California
DONALD A. GLAS, Hutchinson, Minnesota
LOWELL
MICHAEL
THRIFT INSTITUTIONS ADVISORY
N. SWANSON, Portland, Oregon
W. TIERNEY, Washington, D.C.
MICHAEL
GRACE W. WEINSTEIN, Englewood, N e w Jersey
Tijeras, New Mexico
O. ZDENEK, Greenwich, Connecticut
JAMES L. WEST,
ROBERT
COUNCIL
DANIEL
C. ARNOLD, Houston, Texas, President
BEATRICE D'AGOSTINO, Somerville, New Jersey, Vice
A. COOPER, Minneapolis, Minnesota
L. ECKERT, Davenport, Iowa
GEORGE R . GLIGOREA, Sheridan, Wyoming
THOMAS J. HUGHES, Menifield, Virginia
KERRY KILLINGER, Seattle, Washington
WILLIAM
PAUL
President
Cleveland, Ohio
New Bedford, Massachusetts
NICHOLAS W. MITCHELL, JR., Winston-Salem, North Carolina
STEPHEN W. PROUGH, Irvine, California
THOMAS R . RICKETTS, Troy, Michigan
CHARLES JOHN KOCH,
ROBERT MCCARTER,
A76
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-127, Board of Governors of the Federal Reserve System,
Washington, DC 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of
Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1984. 120 pp.
A N N U A L REPORT.
A N N U A L REPORT: BUDGET REVIEW, 1991-92.
FEDERAL RESERVE BULLETIN. Monthly. $25.00
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$2.50 each in the United States, its possessions, Canada,
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A N N U A L STATISTICAL DIGEST: period covered, release date,
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264 pp.
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1984
October 1986
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231 pp.
1985
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November 1987
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1986
October 1988
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1987
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256 pp.
1988
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1980-89
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712 pp.
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1990
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November 1992
215 pp.
1991
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES
OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each.
and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
THE FEDERAL RESERVE ACT
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
PERCENTAGE RATE TABLES (Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address,
$2.00 each.
ANNUAL
GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 6 7 2 p p .
each.
$8.50
Looseleaf; updated
at least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $ 7 5 . 0 0 per
year.
Monetary Policy and Reserve Requirements Handbook.
$ 7 5 . 0 0 per year.
Securities Credit Transactions Handbook. $ 7 5 . 0 0 per year.
The Payment System Handbook. $ 7 5 . 0 0 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
four Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $ 2 5 0 . 0 0 per year.
Each Handbook, $ 9 0 . 0 0 per year.
FEDERAL RESERVE REGULATORY SERVICE.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1 9 8 4 . 5 9 0 pp. $ 1 4 . 5 0 each.
WELCOME TO THE FEDERAL RESERVE. March 1 9 8 9 . 1 4 pp.
INDUSTRIAL PRODUCTION — 1 9 8 6 EDITION. December 1 9 8 6 .
4 4 0 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S .
ECONOMY.
December
1 9 8 6 . 2 6 4 pp. $ 1 0 . 0 0 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALYSIS AND POLICY ISSUES. August 1 9 9 0 . 6 0 8 pp. $ 2 5 . 0 0 each.
CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
All
STAFF STUDIES: Only Summaries Printed in the
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
BULLETIN
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.
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
Staff Studies 1-145 are out of print.
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by
Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, by Helen T. Farr
and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
1980-90, by Margaret Hastings Pickering. May 1991.
21 pp.
A. Rhoades. February 1992. 11 pp.
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
1 6 4 . THE 1 9 8 9 - 9 2 CREDIT CRUNCH FOR REAL ESTATE, b y
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 6 5 . THE DEMAND FOR TRADE CREDIT: A N INVESTIGATION OF
MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES,
by Gregory E. Elliehausen and John D. Wolken. September 1993. 18 pp.
RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.
1 5 3 . STOCK MARKET VOLATILITY,
1 5 4 . T H E EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang
and 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
1 9 9 0 . 3 5 pp.
REPRINTS OF SELECTED BULLETIN ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages. Limit often copies.
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
U.S. International Transactions in 1991. 5/92.
A78
Maps of the Federal Reserve System
1
9
BOSTON
MINNEAPOLIS!
2
7
•
«
N E W YORK
CHICAGO!
12
•
*
CLEVELAND
S A N FRANCISCO
10
•
4
PHILADELPHIA
•
KANSAS C I T Y !
RICHMOND
s f
LOUIS
5
8
6 .
ATLANTA
11
„ •
DALLAS
ALASKA
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 December 1991.
A79
2-B
1-A
3-C
5_E
4-D
Baltimore
Pittsburgh
/
NH
MA
CT
\V
Buffalo
I
•
BOSTON
• Cincinnati
^
NJ
vu
Charlotte
NY
NEW YORK
PHILADELPHIA
7-G
• Nashville
RICHMOND
CLEVELAND
8-H
J
MO
•
"I
WL
^Louisville
Detroit •
1A
L/TN
Jacksonville
IN
•
I'
Littlf )
Rock I
New Orleans
• Memphis
MS
Miami
CHICAGO
ATLANTA
9-1
MT
ST. LOUIS
.
1
• Helena
ND
mn
Ml
1
•
SD
Wl
1
MINNEAPOLIS
12-L
10-J
Omaha •
Denver
Oklahoma City
KANSAS CITY
11-K
J
TX
/
NM
•
P
EL Paso
r
Salt Lake City
H
LA
Y ^ L
— ^
^VHouston
• t
•
San Antonio
DALLAS
• Los Angeles
HAWAn
SAN FRANCISCO
A80
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Jerome H. Grossman
Warren B. Rudman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045
Maurice R. Greenberg
To be announced
Joseph J. Castiglia
William J. McDonough
James H. Oltman
Buffalo
14240
James O. Aston
PHILADELPHIA
19105
James M. Mead
Donald J. Kennedy
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
A. William Reynolds
G. Watts Humphrey, Jr.
To be announced
To be announced
RICHMOND*
23219
Henry J. Faison
Claudine B. Malone
To be announced
To be announced
J. Alfred Broaddus, Jr.
Jimmie R. Monhollon
Leo Benatar
Hugh M. Brown
To be announced
To be announced
To be announced
To be announced
To be announced
Robert P. Forrestal
Jack Guynn
Richard G. Cline
Robert M. Healey
To be announced
Silas Keehn
William C. Conrad
Robert H. Quenon
John F. McDonnell
To be announced
To be announced
To be announced
Thomas C. Melzer
James R. Bowen
Gerald A. Rauenhorst
Jean D. Kinsey
To be announced
Gary H. Stern
Colleen K. Strand
Burton A. Dole, Jr.
Herman Cain
To be announced
To be announced
To be announced
Thomas M. Hoenig
Henry R. Czerwinski
Cece Smith
Roger R. Hemminghaus
To be announced
To be announced
To be announced
Robert D. McTeer, Jr.
Tony J. Salvaggio
James A. Vohs
Judith M. Runstad
To be announced
To be announced
To be announced
To be announced
Robert T. Parry
Patrick K. Barron
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1
Donald E. Nelson1
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
John P. Baumgartner
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
John F. Moore1
E. Ronald Liggett1
Andrea P. Wolcott
Gordon Werkema1
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho,
New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311;
Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
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 sub-
scription. For further information regarding a
subscription to the economic bulletin board,
please call (202) 482-1986. 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.7
Flow of Funds
Quarterly
Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT
PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
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. Multiple copies for classroom use are also available free of charge.
A guide lo
A Consumer's
Guide to
Mortgage
Lock-Ins
Business
Credit
for Women,
Minorities, and
Smalt B u s i n e s s e s
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