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VOLUME 8 1 •

NUMBER 1 •

JANUARY 1 9 9 5

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
1 FIMS: A NEW MONITORING
BANKING
INSTITUTIONS

SYSTEM

FOR

In 1993, the Federal Reserve set into operation
the Financial Institutions Monitoring System to
identify financially troubled banking institutions. This article gives the background of
FIMS, describes the new off-site monitoring
system, and explains how it improves on previous systems.
16 INDUSTRIAL PRODUCTION AND
UTILIZATION: A REVISION

CAPACITY

The Federal Reserve index of industrial production (IP) and the related measures of capacity
and utilization have been revised for recent
years. The incorporation of preliminary data
from the 1992 Census of Manufactures generally results in upward revisions for 1992. However, the introduction of 1992 value-added
weights beginning with January 1992 reduces
the weight of the fast-growing computer industry in total IP by half and thereby retards the
subsequent growth in IP. For the third quarter
of 1994, the revisions to the indexes of total
industrial production and capacity as well as
the resulting utilization rate are all relatively
small.
27 INDUSTRIAL PRODUCTION
CAPACITY
UTILIZATION
FOR NOVEMBER
1994

AND

Industrial production rose 0.5 percent in
November, to 120.2 percent of its 1987 average, after a similar gain in October. The substantial growth in output boosted capacity
utilization to 84.7 percent, its highest level
since April 1989.
30

ANNOUNCEMENTS

Change in the discount rate.




Availability of 1995 fee schedules for services
provided by the Federal Reserve Banks.
Increases in transaction accounts covered by
reserve requirements, reservable liabilities, and
cutoff levels for deposit reporting.
Data on daylight overdrafts.
Issuance of guidelines related to real estate
appraisals.
Adoption of interim rule to amend Regulation E.
Proposal to change Regulation Z to require new
disclosures for reverse mortgages as set forth in
the Home Ownership and Equity Protection
Act of 1994.

33 MINUTES OF THE FEDERAL OPEN
MARKET COMMITTEE
MEETING

At its meeting on September 27, 1994, the
Committee adopted a directive that called for
maintaining the existing degree of pressure
on reserve positions and that included a bias
toward the possible firming of reserve conditions during the intermeeting period. 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, somewhat greater reserve restraint would, or slightly
lesser reserve restraint might, be acceptable
during the intermeeting period.

41 LEGAL

DEVELOPMENTS

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

A1 FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
November 28, 1994.

A70 BOARD OF GOVERNORS AND STAFF
All

FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS

A3 GUIDE TO TABULAR PRESENTATION
A74 FEDERAL RESERVE
PUBLICATIONS

A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics

BOARD

A76 MAPS OF THE FEDERAL RESERVE
A67 GUIDE TO STATISTICAL
SPECIAL TABLES

RELEASES

A68 INDEX TO STATISTICAL

TABLES

AND

SYSTEM

A78 FEDERAL RESERVE BANKS, BRANCHES,




AND

OFFICES

FIMS: A New Monitoring System
for Banking Institutions
Rebel A. Cole, of the Board's Division of Research
and Statistics; Barbara G. Cornyn, of the Board's
Division of Banking Supervision and Regulation;
and Jeffery W. Gunther, of the Federal Reserve
Bank of Dallas's Financial Industry Studies
Department, prepared this article.
One of the primary responsibilities of bank regulatory agencies is to minimize the financial loss to
the Bank Insurance Fund that results from the
failure of insured depository institutions. To discharge this responsibility, bank regulators evaluate
the financial performance and condition of depository institutions and initiate prompt corrective
actions when they find signs of distress. In the
evaluation, regulators use a combination of on-site
examinations and off-site monitoring systems.
In 1993, the Federal Reserve instituted the Financial Institutions Monitoring System (FIMS), which
is significantly more accurate than previous off-site
monitoring systems in identifying financially
troubled banking institutions. This article gives the
background of FIMS, describes the new system,
and explains how it improves on previous systems.

BACKGROUND

As a result of the National Bank Acts of 1863 and
1864, the United States has a dual banking system
in which some banks are federally chartered and
some are state chartered. The primary bank supervisor and regulator of federally chartered (national)
NOTE. This article summarizes the work of a Systemwide Surveillance Task Force composed of economists, examiners, and
financial analysts from the Reserve Banks of New York, Philadelphia, Cleveland, Atlanta, Chicago, Minneapolis, Kansas City,
Dallas, and San Francisco as well as from the Board of Governors
in Washington. We are especially grateful to David Barker and
Dale Harrington, who contributed extensively to the project. We
also thank David Jones, Myron Kwast, and Sally Davies, who
provided comments on earlier drafts.




banks is the Office of the Comptroller of the Currency, whereas the responsibility for the supervision and regulation of state-chartered banks is
shared by the Federal Reserve, the Federal Deposit
Insurance Corporation (FDIC), and the fifty state
banking agencies. The primary supervisor and
regulator of bank holding companies is the Federal
Reserve. Depending upon their activities, bank
holding companies may also be subject to regulation by other government agencies, including the
Securities and Exchange Commission and the
Office of Thrift Supervision.
Under the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), the bank
regulators generally must examine all banks on-site
at least once each year; before FDICIA, banks were
examined less frequently, except for the statechartered banks regulated by the Federal Reserve,
which were in general subject to annual examinations. FDICIA does not require annual inspections
of bank holding companies. According to Federal
Reserve policy, bank holding companies that are in
sound financial condition are subject to less frequent on-site inspections than are state member
banks.
During an on-site examination, regulators visit
an institution's offices to evaluate the institution's
financial soundness and compliance with laws and
regulatory policies, to assess the quality of the
institution's management team, and to evaluate the
institution's systems of internal control.1 After the
examination, regulators assign the institution a
rating that summarizes its financial condition and
performance. The rating is known by the acronym
1. The American Institute of Certified Public Accountants Committee on Working Procedures defines internal control as follows:
"Internal control comprises the plan of organization and all of the
coordinate methods and measures adopted within a business to
safeguard its assets, check the accuracy and reliability of its
accounting data, promote operational efficiency, and encourage
adherence to subscribed managerial policies."

2

Federal Reserve Bulletin • January 1995

The Uniform Financial Institutions Rating System
In 1979, federal banking regulatory agencies adopted the
Uniform Financial Institutions Rating System as a common way to rate the financial condition of federally
insured depository institutions. The system helps identify
institutions whose condition warrants special supervisory
attention. Under this system, each institution receives a
uniform, composite supervisory rating based upon an
evaluation of financial performance, condition, operating
soundness, and regulatory compliance.
The composite rating of a bank is based upon an
on-site evaluation of five critical dimensions of
performance—capital adequacy, asset quality, management, earnings, and liquidity; hence the acronym
CAMEL, which has become the popularized name for
this rating system.
A similar system, known as BOPEC, is used to determine the composite rating for a bank holding company.
In the BOPEC system, the composite rating is based
upon an evaluation of five elements of the bank holding
company—the bank subsidiaries, other (nonbank) subsidiaries, the parent company, consolidated earnings, and
consolidated capital adequacy.
In both the CAMEL and BOPEC systems, each component is assigned a rating on a scale of 1 to 5 in
descending order of performance:

4—marginal performance that is significantly below
average
5—unsatisfactory performance that is critically deficient and in need of immediate remedial action.
Once the five component ratings have been determined, the composite CAMEL or BOPEC rating is
assigned as a summary measure and used by bank regulators as the primary indicator of financial condition.
Composite ratings are assigned on a scale of 1 to 5;
1 indicates that an institution is of least supervisory
concern, and 5 indicates that an institution is of most
supervisory concern. The five composite rating levels are
set forth as follows in the Commercial Bank Examination
Manual produced by the Board of Governors of the
Federal Reserve System:

1—strong performance
2—satisfactory performance

1—an institution that is basically sound in every
respect
2—an institution that is fundamentally sound, but with
modest weaknesses
3—an institution with financial, operational, or compliance weaknesses that give cause for supervisory
concern
4—an institution with serious financial weaknesses
that could impair future viability
5—an institution with critical financial weaknesses
that render the probability of failure extremely high in the

3—performance that is flawed to some degree

near term.

CAMEL, which refers to the five components of
the rating system—capital, asset quality, management, earnings, and liquidity (see box "The Uniform Financial Institutions Rating System").
Between on-site examinations, regulators monitor financial institutions off site using computerbased systems. These monitoring systems typically
analyze the financial information that each institution must report to regulators quarterly.
Two circumstances in the 1970s prompted the.
development of such monitoring systems. First, the
large number of banking organizations in the
United States—more than 14,000 banks and 1,500
bank holding companies as of year-end 1975—and
the growing complexity of their financial reports
increased the difficulty of systematically analyzing
each institution. Second, technological advances in
the fields of computer science and data processing



significantly reduced the cost of analyzing information. In addition, a precipitous rise in the 1980s in
the number of bank failures made clear the need for
auxiliary means of supervising banks (see box
"The Pattern of Bank Failures since 1980").

BANK REGULATORY

SURVEILLANCE

SYSTEMS

Over the past two decades, various monitoring
systems have been developed, but their objectives
have generally been the same—to identify developing financial problems at banking institutions
between examinations in order to set priorities for
the allocation of scarce examination and other
supervisory resources. Output from the systems is
used to accelerate the on-site examinations of institutions showing financial deterioration; to identify

FIMS: A New Monitoring System for Banking Institutions

The Pattern of Bank Failures since 1980
From the mid-1930s until the early 1980s, relatively
few banks failed, and losses to the deposit insurance
fund were minimal. N o more than 2 0 banks failed in
any year. The Depository Institutions Deregulation and
Monetary Control Act of 1980 (DIDMCA) set in
motion the removal of ceilings on the interest rates that
institutions could pay on savings and time accounts
and removed or weakened barriers separating commercial banks, thrift institutions, and credit unions. With
increased competition, depository institutions weakened by the deep recession of 1 9 8 1 - 8 2 failed at
increasingly higher rates (chart). In 1982, 4 2 banks
failed. In each successive year, bank failures rose until
1988, when they peaked at 221. Since then, the number of failures has declined each year; however, it
remained in triple digits through 1992, when 122 banks
failed. In 1993, bank failures fell to only 41.
From 1982 through 1992, a total of 1,442 banks
failed—more than 10 percent of all banks in the United
States at the beginning of that period.
Failures of FDIC-insured banks, 1980-93
Number

1980

1982

1984

1986

1988

1990

1992

the areas of most supervisory concern in those
institutions scheduled for examination; and to allocate the more experienced examiners to troubled
institutions.

Uniform Bank Surveillance

Screen

Since the mid-1970s, the Federal Reserve System
has monitored the financial performance and condition of banking organizations by screening financial ratios calculated from the Reports of Condition
and Income (Call Report) filed quarterly by each




3

banking organization.2 To improve this monitoring
effort, the Federal Reserve System in the mid1980s adopted the Uniform Bank Surveillance
Screen (UBSS) as its primary surveillance system.
With some changes, the UBSS remained in service
until 1993, when it was replaced by FIMS. The
UBSS used financial data from regulatory reports
to identify individual institutions whose financial
ratios had deteriorated relative to the averages of
their respective "peer groups," institutions with
similar sizes of assets.3 The effectiveness of this
system, however, was limited by certain methodological weaknesses.
The UBSS was structured around six financial
ratios computed from quarterly Call Report data.
For both banks and bank holding companies, the
first four ratios—tier 1 capital, net income, net
liquid assets, and the sum of past due and nonaccrual loans (each expressed as a percentage of total
assets)—were the components of a primary surveillance screen.4 (A surveillance screen uses a set of
financial ratio values to identify, or screen, institutions whose condition warrants special supervisory
attention.) Within each peer group, the four financial ratios for each institution were sorted from best
to worst, and percentile rankings relative to the
peer group were calculated. The four ranks were
summed to form a bank's composite score, with
each rank receiving equal weight in the summation.
The resulting composite scores were used to calcu-

2. For a description of the bank surveillance systems used by
regulators during the 1970s and early 1980s, see Barron H. Putnam,
"Early Warning Systems and Financial Analysis in Bank Monitoring: Concepts of Financial Monitoring," Federal Reserve Bank of
Atlanta, Economic Review (November 1983), pp. 6-13.
3. The UBSS defined nine peer groups based upon bank asset
size: $10 million or less, $10 million-$25 million, $25 million$50 million, $50 million-$100 million, $100 million-$300 million,
$300 million-$l billion, $1 billion-$3 billion, $3 billion$10 billion, and greater than $10 billion. A tenth peer group was
defined as banks chartered during the previous five years.
4. For banks, asset growth during the previous four quarters and
interest paid on volatile liabilities as a percentage of average
volatile liabilities were used as supplemental surveillance screens.
For bank holding companies, parent company cash flow and double
leverage were used as supplemental surveillance screens. As with
the four primary ratios, each supplemental screening ratio was
converted to a percentile ranking, and institutions with the highest
rankings were placed on the exception list for additional off-site
analysis and, potentially, for supervisory action. For details on
capital standards, see Allan D. Brunner and William B. English,
"Profits and Balance Sheet Developments at U.S. Commercial
Banks in 1992," Federal Reserve Bulletin, vol. 79 (July 1993),
pp. 661-62.

4

Federal Reserve Bulletin • January 1995

late composite percentile rankings within each peer
group. These composite percentile rankings served
as the basis of the primary surveillance screen.
Institutions with the highest composite percentile
rankings were placed on an "exception list." Institutions on this list were subjected to more in-depth,
off-site analysis by Federal Reserve Bank staff.
The UBSS was supplemented by the quarterly
Uniform Bank Performance Report and the Bank
Holding Company Performance Report, both from
the Federal Financial Institutions Examination
Council. These reports are analytical tools created
for bank and bank holding company supervisory
personnel. In a concise format, they show the effect
of management decisions and economic conditions
on a banking organization's financial performance
and balance sheet composition. The data on performance and balance sheet composition contained
in the reports can aid in decisions about capital
adequacy, asset quality, earnings, liquidity, and
asset and liability management. Each quarterly
report shows financial information for multiple
time periods. The financial data are presented in the
form of ratios, percentages, and dollar amounts.
Each report also shows corresponding average data
for the institution's peer group along with information identifying how the data ranked the institution
relative to its peers.
If this off-site analysis led to the conclusion that
the financial condition of an institution had worsened significantly since its most recent on-site
examination, a suitable supervisory response was
developed and implemented, including contact with
the institution's management to obtain additional
information and acceleration of the institution's
next scheduled on-site examination.

CAEL System
During the mid-1980s, the FDIC developed a surveillance system known as CAEL, which is methodologically similar to the UBSS. The acronym
CAEL refers to four CAMEL component ratings
that the system evaluates—capital, asset quality,
earnings, and liquidity. The system does not provide a management rating. Like the UBSS, CAEL
is based upon quarterly bank Call Report data; but
whereas the UBSS calculated a composite percen-




tile ranking, CAEL calculates off-site surrogates
for CAMEL ratings.
CAEL ratings are calculated in a manner similar
to that by which the surveillance scores were calculated in the UBSS, although the calculation of
CAEL ratings is considerably more complex and
involves many more financial ratios. Like the
UBSS, the CAEL system divides banks into peer
groups based upon asset size and calculates percentile rankings for four sets of financial ratios that
correspond to the four component ratings. Each
of the four component ratings is calculated as a
weighted average of the corresponding set of financial ratios. The composite CAEL rating is calculated as a weighted average of the four component
ratings. Both the ratios used to calculate the ratings
and the weights associated with each ratio are
determined by a panel of bank examiners. CAEL
remains in place today as the FDIC's primary offsite surveillance system.5

Limitations of the UBSS and CAEL
The UBSS and CAEL use a set of financial ratios
to calculate a composite score with which bank
regulators can assess the financial condition of a
depository institution between on-site examinations. One limitation of such systems is the subjective manner in which the ratios were selected.
Regulators selected these ratios from a much larger
set of variables that academic researchers had
shown to be correlated with an institution's financial condition, but the ratios used to calculate the
surveillance scores were not statistically validated
as being sufficiently inclusive to produce accurate
off-site assessments of risk. In fact, other ratios,
when combined with those of these systems, produce superior assessments of risk.
A related limitation is the manner in which each
ratio was weighted. These weights, which were
fixed across estimation periods, were determined
subjectively rather than by rigorous statistical testing. The UBSS applies equal weights to each of the
four financial ratios used to construct the composite
surveillance score. CAEL applies a system of
weights determined by a panel of senior examiners.
5. The Office of the Comptroller of the Currency relies upon a
set of financial ratio screens as its primary surveillance system.

FIMS: A New Monitoring System for Banking Institutions

Even if the selected financial ratios contained all
the information necessary for an accurate assessment of risk, improper weighting of those ratios
would reduce the accuracy of estimation. Moreover, even if optimal weights had initially been
assigned, the failure to adjust for temporal shifts
would also have reduced estimation accuracy.
A third limitation of these systems is the reliance
upon peer-group analysis. Both systems divide
banks into peer groups based upon asset size
because the average values of key financial ratios
are significantly different for banks of different
sizes. Without a peer-group analysis, differences in
the financial ratios associated solely with bank size
could be mistakenly interpreted as differences in
financial condition. Because performance is measured relative to that of other banks of similar size,
however, systemic changes in the performance
either of peer groups or of the banking system as a
whole are not incorporated into the composite surveillance scores. Hence, if an entire peer group
deteriorates, the percentile scores of individual
banks within that peer group may not change, even
though the banks have become riskier.
With peer group analysis, an additional complication arises when the size of an institution changes
in a manner that places it in a larger or smaller peer
group than it was in during the previous quarter. In
such a case, the institution's percentile scores may
change significantly, even if its financial condition
has not changed.

FIMS
Addressing the limitations of the previous off-site
bank monitoring systems, FIMS provides two
complementary surveillance scores based upon two
distinct econometric models—the FIMS rating and
the FIMS risk rank. The FIMS rating is an assessment of a bank's current condition, whereas the
FIMS risk rank is a longer-term assessment of the
bank's expected future condition.
The FIMS rating represents an estimate, based
upon the most recent Call Report data, of what a
bank's CAMEL rating would be if it were assigned
during the current quarter. Because the relationship
between financial ratios and CAMEL ratings may
change over time, the FIMS rating model is
updated each quarter. The updates reflect the most




5

recent relationship between financial ratios derived
from the two most recent quarters of bank Call
Report data and supervisory ratings based upon the
most recent on-site examination. Empirical testing
indicates that using data from the two most recent
quarters to estimate the historical relationship
maximizes the classification accuracy of the rating
model.
The FIMS risk rank represents an estimate, based
upon a bank's financial condition as measured by
the most recent Call Report data, of the probability
that a bank will fail during the subsequent two
years.6 Like the FIMS rating model, the risk rank
model is updated quarterly to determine which
ratios to include and how to weight these ratios.
But the risk rank model is updated using financial
ratios derived from Call Report data from the same
quarter two years previously and information
classifying banks as failing or surviving during the
intervening period. This procedure enables the risk
rank model to incorporate change over time and
produces a much longer-term assessment of a
bank's financial viability than does the FIMS rating
model.

Estimation

Techniques

Both the FIMS rating and risk rank are based upon
variables representing categories of financial condition. The FIMS rating is based upon the composite
CAMEL rating, which can take on integer values
from 1 to 5; the FIMS risk rank is based upon a
variable that has only two values—0 for failure and
1 for survival. Because such variables represent
categories of condition, standard estimation techniques (such as ordinary-least-squares regression
analysis) do not provide accurate results. To
account for the statistical characteristics of categorical variables, FIMS uses specialized "limited

6. "Failure" is defined as encompassing not only those institutions declared equity insolvent by their primary regulator during
the two-year period but also those that are classified as "critically
undercapitalized" at the end of the period. The latter group is
included to identify institutions for which FDICIA mandates
"prompt corrective action." In general, that legislation requires
regulators to close critically undercapitalized institutions within
ninety days. Critical undercapitalization is defined as a ratio of
tangible equity to average assets of less than 2 percent.

6

Federal Reserve Bulletin • January 1995

dependent variable" estimation techniques to produce its two surveillance scores.7

Explanatory

Variables

In the literature on financial economics, the numerous studies that model the financial condition of
depository institutions show a relatively consistent
set of variables to be related to bank financial
condition.8 These variables, which generally
include measures of capital adequacy, asset quality,
earnings, and liquidity, form the basis for the offsite monitoring systems used by both the Federal
Reserve and the FDIC.
To develop FIMS, staff members of the Federal
Reserve System selected from the financial literature and the financial ratios commonly used in
examination reports approximately thirty financial
and structure variables that they considered most
likely to be useful in estimating the CAMEL rating
and the probability of failure. They tested an additional set of variables measuring regional economic
conditions. For the FIMS rating model, the priorperiod composite CAMEL rating and the priorperiod management component rating were also
7. The ordinal-level logistic regression methodology is used to
produce the FIMS rating whereas the binary logistic regression
methodology—a special case of the more general ordinal-level
methodology—is used to produce the FIMS risk rank.
Each bank receives a set of five estimates representing the
probabilities that the next composite examination rating will be
equal to 1, 2, 3, 4, or 5. The FIMS rating—or estimated CAMEL
rating—is obtained from this set of estimates as the sum of the five
possible ratings, each weighted by its estimated probability.
Each bank also receives a single estimate representing the probability that the bank will fail within two years. This estimated
failure probability is used to rank banks according to riskiness.
The statistical underpinnings of these methodologies are
described in G.S. Maddala, Limited-Dependent and Qualitative
Variables in Econometrics (Cambridge University Press, 1983).
See pp. 22-27 for a description of the binary logistic regression
methodology and pp. 46-49 for the ordinal-level logistic regression
methodology.
8. For a review of this literature, see Asli Demirguc-Kunt,
"Deposit-Institution Failures: A Review of the Empirical Literature," Federal Reserve Bank of Cleveland, Economic Review,
vol. 25 (Fourth Quarter, 1989), pp. 2-18. Three more recent articles
on predicting bank failure are James B. Thomson, "Modeling the
Bank Regulator's Closure Option: A Two-Step Logit Regression
Approach," Journal of Financial Services Research (May 1992),
pp. 5-23; Rebel A. Cole and Jeffery W. Gunther, "Separating the
Likelihood and Timing of Bank Failure," Journal of Banking and
Finance (forthcoming); and David S. Jones and Kathy Kuester
King, "The Implementation of Prompt Corrective Action: An
Assessment," Journal of Banking and Finance (forthcoming).




tested as explanatory variables. The prior-period
composite rating was included in the model
because the proportion of banks for which the
CAMEL rating changes from one examination to
the next is less than one-third. The prior-period
management component rating was chosen to augment the ability of financial and structure variables
to incorporate the management dimension of bank
performance into the FIMS rating.
All of the potential explanatory variables except
for the prior-period examination rating and the
measures of regional economic conditions can be
calculated with bank Call Report data (table 1).
Income statement variables are based upon data
from the previous four quarters. For each variable
that is a financial ratio, a four-quarter rate of change
is included in the FIMS models. These rates of
change are defined as the difference in the values of
the current and year-before values of each ratio's
numerator, divided by the year-before value of
assets.
From this set of potential explanatory variables
comes a subset of variables that produces the best
estimates of the CAMEL ratings. This subset is
selected using a step-wise procedure that evaluates
the explanatory power of the entire set of independent variables and sequentially removes from consideration those variables that do not significantly
improve estimates of the historical relationship.9
A similar procedure is employed in selecting the
explanatory variables for estimating the risk rank.
From the large set of potential explanatory variables, the subset of variables that produces the best
estimate of the probability of failure is chosen. As
with the FIMS rating model subset, this subset is
selected with a step-wise procedure that first evaluates the explanatory power of the entire set of
9. To validate this methodology, staff members tested each of
the explanatory variables for statistical significance in estimating
the CAMEL rating in each quarter from December 1989 through
March 1992, a total of ten different estimation periods. Empirical
testing verified that inclusion of variables that are not statistically
significant often degrades the model's ability to produce accurate
estimates for banks not included in the sample used to estimate the
model, that is, "out-of-sample" estimates. Empirical testing also
has shown that inclusion of variables that consistently are statistically significant improves the ability of FIMS to estimate examination ratings out of sample. In the present context, out-of-sample
estimation uses the relationship between the dependent and
explanatory variables estimated during one period to estimate
events during the subsequent period. Out-of-sample tests comparing predicted and actual outcomes are useful because they most
closely resemble the manner in which the model is actually used.

FIMS: A New Monitoring System for Banking Institutions 7

1.

Variables for the FIMS rating model
Variable

Description

Loans past due
30-89 days

Loans past due 30-89 days and still accruing
interest divided by assets

Loans past due
90 or more days

Loans past due 90 days or more and still
accruing interest divided by assets

Nonaccrual loans

Nonaccrual loans divided by assets

Foreclosed real
estate

Foreclosed real estate divided by assets

Tangible capital

Equity less goodwill divided by assets

Net income

Net income before extraordinary items less
gains or losses on sale of securities divided
by assets

Investment
securities

Book value of investment securities divided
by assets

Reserves

Allowance for loan and lease loss divided
by assets

Jumbo CDs

Domestic certificates of deposit (CDs) greater
than or equal to $100,000 divided by assets

Net liquid assets

Net liquid assets divided by assets

UBSS asset growth
percentile score

Percentile ranking score of growth in total
assets over the past four quarters based upon
the UBSS system

Volatile liability
expense

Interest paid on volatile liabilities divided
by average volatile liabilities

UBSS composite
percentile score

Composite percentile ranking score based
upon the UBSS system

Net charge-offs

Charge-offs less recoveries divided by assets

Brokered deposits

Binary variable equal to 1 if the ratio of
brokered deposits to total assets is greater
than 1 percent and equal to 0 otherwise

not significantly improve estimates of the probability of failure.10

Noninterest expense

Noninterest expense divided by assets

Core deposits

Total deposits less domestic CDs equal to or
greater than $100,000, brokered domestic
deposits less than $100,000, and foreign
deposits divided by assets

Insider loans

Dividends divided by assets

Age

Log of the age of the bank

Size

Log of the current level of assets

Provisions

Provisions for loan and lease loss divided
by assets

The directions of the estimated historical relationships between the explanatory variables and the
CAMEL ratings are shown in table 2. Only variables that are statistically significant in each of the
ten quarters are shown. Eleven explanatory variables are statistically significant in each period
analyzed. Four of these variables relate to asset
quality—the ratios to assets of loans past due
30-89 days and still accruing interest, of loans past
due 90 or more days and still accruing interest, of
nonaccrual loans, and of foreclosed real estate.
Each asset-quality variable is positively related
to the numerical CAMEL rating, indicating that
higher values of these variables are associated with
worse CAMEL ratings.
Of the remaining seven variables that are significant in every period tested, three are negatively

Loans to insiders divided by assets

Dividends

Estimating the Historical Relationship
between Call Report Data
and CAMEL Ratings

10. This methodology was validated through separate estimations using year-end Call Report data from 1984-88 to determine
failures in the two years subsequent to the Call Report date.
Out-of-sample estimation accuracy was evaluated for each of these
five estimations.

2.

Effects of explanatory variables on the FIMS rating
Variable

Effect 1

Loans past due 30-89 days

Worse

Loans past due 90 or more days

Worse

C&I loans

Commercial and industrial loans divided
by assets

Nonaccrual loans

Worse

Commercial real
estate

Commercial real estate loans divided
by assets

Foreclosed real estate

Worse

Consumer loans

Loans to individuals divided by assets

Tangible capital

Better

Agricultural loans

Loans for agricultural production divided
by assets

Net income

Better

Unemployment

Unemployment rate, state level

Permits per capita

Housing permits issued divided by labor
force, state level

independent variables and then sequentially
removes from consideration those variables that do



Worse

UBSS composite percentile score

Worse

Prior management rating

Worse

Prior composite CAMEL rating

Personal income divided by labor force,
state level

Better

UBSS asset growth percentile score
Income per capita

Investment securities

Worse

1. "Worse" indicates that higher values of the variable are associated with
worse CAMEL ratings; "better" indicates that higher values of the variable
are associated with better CAMEL ratings.

8

Federal Reserve Bulletin • January 1995

related to the numerical CAMEL rating—the ratios
to assets of tangible capital, net income less security gains and losses, and investment securities—
indicating that higher values for these variables are
associated with better CAMEL ratings. These three
variables measure the capital, earnings, and liquidity position of an institution, corresponding to three
of the five components of the CAMEL rating
system.
The remaining four variables significant in every
period are positively related to the numerical
CAMEL rating. The UBSS asset-growth and composite percentile rankings are consistently positive,
indicating that higher values of these variables are
associated with worse CAMEL ratings; also consistently positive are the prior management CAMEL
component rating and the prior composite CAMEL
rating, indicating that a bank's current rating is a
function of its previous ratings. Indeed, a review
of the sample banks' ratings reveals that the examination rating of a bank is the same as its previous rating in more than two-thirds of all cases
analyzed.
Several additional variables are statistically significant in at least one but no more than five of the
ten periods analyzed. Empirical analysis revealed,
however, that inclusion of these additional variables in the model does not significantly improve
the accuracy of out-of-sample estimation; in most
cases, their inclusion usually degrades such
accuracy. Of considerable interest is the finding
that the regional economic variables tested do not
significantly improve out-of-sample estimation.
Further analysis indicated that, by themselves,
these variables have considerable explanatory
power but that this power is attenuated by the
inclusion of bank-specific variables in the model.

3.

Effects of explanatory variables on the FIMS
risk rank
Variable

Effect1

Loans past due 30-89 days

Higher

Loans past due 90 or more days

Higher

Nonaccrual loans

Higher

Foreclosed real estate

Higher

Tangible capital

Lower

Net income

Lower

Reserves

Lower

Investment securities

Lower

Jumbo CDs

Higher

1. "Higher" indicates that higher values of the variable are associated
with higher probabilities of failure; "lower" indicates that higher values of
the variable are associated with lower probabilities of failure

past due 90 or more days and still accruing interest,
of nonaccrual loans, and of foreclosed real estate.
Higher levels of each of these variables are associated with a greater likelihood of failure (see note 6
for definition).
Of the remaining five variables, four are consistently negative—the ratios to assets of tangible
capital, net income, allowance for loan loss, and
investment securities—indicating that higher levels
of each are associated with a lower likelihood of
failure. The coefficient of the final variable—the
ratio of domestic certificates of deposit greater than
or equal to $100,000 to assets—is positive, indicating that higher levels of this variable are associated
with a greater likelihood of failure. This finding is
consistent with the financial literature on bank failure, which provides evidence that high-risk banks
use volatile liabilities as a funding mechanism to a
greater extent than other banks and that these funds
can be quickly withdrawn as a bank's condition
deteriorates, causing liquidity problems.

Estimating the Historical Relationship
between Call Report Data and Bank Failure
ACCURACY

The directions of the estimated historical relationship between the explanatory variables and the
incidence of bank failure are shown in table 3.
Only the nine explanatory variables that are statistically significant in each period examined are
included in the table. Four of these variables relate
to asset quality—the ratios to assets of loans past
due 30-89 days and still accruing interest, of loans



OF

CLASSIFICATION

For a surveillance model, the most meaningful
measure of accuracy is the ability to classify institutions correctly in a future period rather than the
ability to classify institutions correctly in previous
periods. Therefore, the following procedure was
used to assess the accuracy of the FIMS models.
Parameter estimates were generated by applying

FIMS: A New Monitoring System for Banking Institutions

9

the econometric models to Call Report data from
the beginning of a given period and to data from
events (that is, examinations or bank failures)
occurring during that period. These parameter estimates were then applied to Call Report data from
the beginning of the subsequent period to generate
classification for events occurring during that subsequent period. Finally, these classifications were
compared with actual events that occured during
the subsequent period.
For example, to assess the accuracy of the FIMS
rating model, parameter estimates were generated
using data from the March and June Call Report
and corresponding examination data from the quarters ending in June and September. These parameter estimates were then applied to September Call
Report data to generate estimates of the CAMEL
ratings assigned after examinations based upon the
September Call Report data.11 Finally, the esti-

mates based upon the September Call Report data
were compared with the actual ratings assigned
during examinations based on the same data. This
procedure was repeated for ten different estimation
periods.
A similar procedure was used to assess the accuracy of the FIMS risk rank model. For example,
parameter estimates were generated using data
from the December 1984 Call Report and data
classifying banks as failing during or surviving
through 1985-86. These parameter estimates were
then applied to December 1986 Call Report data to
classify banks as failing during or surviving
through 1987-88. Finally, the classifications based
upon the December 1986 data were compared with
the actual status of banks at the end of 1988. This
procedure was repeated for five different estimation
periods.

11. Three official dates are associated with an examination: the
date the examination begins, the date the examination ends, and the
date of the Call Report data used by the examiners in assigning a
supervisory rating. For purposes of estimating and evaluating the
accuracy of the FIMS rating model, supervisory ratings are identified by the date of the Call Report data; typically, regulators also
identify examinations by that date.

FIMS Rating Model:
Estimating the CAMEL

4.

Ratings

The broadest measure of estimation accuracy in
estimating the CAMEL rating is the ability

Accuracy of the FIMS rating and the U B S S composite score in estimating the subsequent-quarter composite
CAMEL rating
Estimated CAMEL rating
Actual
CAMEL rating

1

2

3

4

5

Total

UBSS

FIMS

UBSS

FIMS

UBSS

FIMS

UBSS

FIMS

1
Number of banks . . .
Percentage

3,313
58.6

4,387
77.5

2,295
40.6

1,268
22.4

48
.8

2
.0

2
.4

0
.0

0
.0

1
.0

5,658
100

2
Number of banks . . .
Percentage

2,212
16.0

1,339
9.7

9,280
67.2

11,039
79.9

1,970
14.3

1,415
10.2

343
2.5

21
.2

14
.1

5
.0

13,819
100

3
Number of banks . . .
Percentage

100
2.2

23
.5

1,991
42.8

1,188
25.5

1,707
36.7

2,919
62.7

762
16.4

503
10.8

939
2.0

20
.4

4,653
100

4
Number of banks . . .
Percentage

8
.4

0
.0

360
17.5

82
4.0

732
35.6

576
28.0

711
34.5

1,156
56.1

248
12.0

245
11.9

2,059
100

5
Number of banks . . .
Percentage

2
.3

0
.0

22
3.5

6
1.0

104
16.5

27
4.3

255
40.4

161
25.5

249
39.4

438
69.3

632
100

Failed
Number of banks . . .
Percentage

1
.4

0
.0

4
1.5

0
.0

23
8.8

1
.4

73
27.9

5
1.9

161
61.5

256
97.7

262
100

Total
Number of banks . . .
Percentage

5,636
20.8

5,749
21.2

13,952
51.5

13,583
50.2

4,584
16.9

4,940
18.2

2,146
7.9

1,846
6.8

765
2.8

965
3.6

27,083
100

NOTE. Based upon bank Call Report data for each quarter from December 1989 through March 1992.




UBSS

FIMS

10

Federal Reserve Bulletin • January 1995

to classify correctly the actual CAMEL ratings of
individual banks. To assess the accuracy of the
FIMS rating model, one can compare its ratings
classifications to those derived from the UBSS—
the surveillance system that FIMS replaced. This
comparison measures how often each system's estimated quarterly CAMEL rating corresponds with
the actual CAMEL rating assigned by examiners
based upon the same financial data (table 4).
Table 4 combines classification results from ten
separate quarterly estimates based upon the Call
Reports from December 1989 through March 1992.
For example, the parameters generated from Call
Report data for the second and third quarters of
1989 were used to estimate ratings assigned from
Call Report data for the fourth quarter of 1989;
parameters generated from Call Report data for the
third and fourth quarters of 1989 were used to
estimate ratings assigned from Call Report data for
the first quarter of 1990; and so forth. A total of
27,083 ratings estimates were made.
The FIMS estimates were identical to the subsequently assigned CAMEL rating for 74.6 percent
of examinations. Less than 0.5 percent of the estimates were more than one level better than the
actual rating, whereas 12.1 percent of the FIMS
estimates were exactly one level better than the
subsequently assigned CAMEL rating. FIMS was
most accurate in estimating CAMEL ratings of 1
(77.5 percent) and 2 (79.9 percent). It also was
extremely accurate in identifying banks that failed
during the subsequent quarter. Of the 262 failing
banks included in the sample, 97.7 percent received
a FIMS rating of 5, 1.9 percent received a 4, and
the remaining 0.4 percent received a 3; none
received a FIMS rating of 1 or 2.
Also in table 4 are the out-of-sample estimation
accuracy results for the UBSS. Although the UBSS
was not designed specifically to estimate the
CAMEL ratings of banks, it did provide a score for
each bank, and this score can be used to estimate
the examination rating. If all banks are ranked by
their UBSS score, CAMEL rating estimates based
on the distribution of actual CAMEL ratings can be
assigned. For example, if 20 percent of the banks in
the sample are 1-rated, 50 percent are 2-rated,
20 percent are 3-rated, 5 percent are 4-rated, and
5 percent are 5-rated, then banks with UBSS scores
in the lst-20th percentiles are classified as 1-rated,
and banks with UBSS scores in the 96th-100th




percentiles are classified as 5-rated; banks in intervening percentile ranges receive the corresponding
ratings.
When ratings estimates were assigned in this
manner, the UBSS estimate was equal to the actual
CAMEL rating 56.9 percent of the time. Approximately 19.4 percent of the UBSS rating estimates
were one level better than the actual CAMEL rating, whereas 2.3 percent of the rating estimates
were more than one level better than the actual
rating. Like FIMS, the UBSS was most accurate in
estimating CAMEL ratings of 1 (58.6 percent) and
2 (67.2 percent), but these percentages were much
lower than those for FIMS (77.5 percent and
79.9 percent, respectively.) The UBSS also was
much less accurate than FIMS in identifying banks
that failed during the subsequent quarter. Of the
262 failing banks in the UBSS sample, only
61.5 percent received a 5-rating; 27.9 percent
received a 4-rating; 8.8 percent received a 3-rating;
and 1.9 percent received a 1- or 2-rating.

FIMS Rating Model:
Identifying Unsatisfactory Banks
Regulators often divide banks into two broad
groups—those that are satisfactory and those that
are unsatisfactory. In defining satisfactory banks,
regulators typically label banks with CAMEL ratings of 1 or 2 as satisfactory and banks with ratings
of 3, 4, and 5 as unsatisfactory. As a second measure of estimation accuracy, this classification
scheme was used to analyze the ability of the FIMS
rating model and the UBSS to classify banks correctly as satisfactory or unsatisfactory.
Two types of errors can be made in using an
off-site monitoring system to classify banks in this
manner. First, banks that actually are unsatisfactory
can be misclassified by the system as satisfactory.
Misclassification of unsatisfactory banks as satisfactory is referred to as a "type-1 error." The
second type of error is to misclassify satisfactory
banks as unsatisfactory, a "type-2 error." The cost
of a type-1 error can be high because it can result in
a bank failure that might have been prevented by
early supervisory intervention. The cost of a type-2
error is usually much lower because it is limited to
the sum of the unnecessary expenditure of supervisory or examination resources on a healthy bank

FIMS: A New Monitoring System for Banking Institutions

and the costs of examination that are borne by the
bank.
The accuracy of the FIMS rating model and of
the UBSS in identifying satisfactory and unsatisfactory banks is compared in table 5. FIMS incorrectly
identified approximately 17.1 percent of the unsatisfactory banks as satisfactory (type-1 error)
while incorrectly identifying 7.4 percent of the
satisfactory banks as unsatisfactory (type-2 error).
The UBSS incorrectly identified approximately
32.7 percent of the unsatisfactory banks as satisfactory (type-1 error) and incorrectly identified
12.2 percent of the satisfactory banks as unsatisfactory (type-2 error).
The information in table 5 is based on the
assumption that a FIMS rating model score of 2.5
differentiates satisfactory banks (scores of 2.5 or
less) from unsatisfactory banks (scores greater than
2.5). The ability of the FIMS rating model and the
UBSS to identify unsatisfactory banks can be
increased by adjusting the cutoff score between
satisfactory and unsatisfactory downward from 2.5.
For example, FIMS scores of 2.3 or less could be
classified as satisfactory, whereas scores greater
than 2.3 could be classified as unsatisfactory. Such
an adjustment would increase the number of banks
classified correctly as unsatisfactory and decrease
type-1 error, but at the cost of decreasing the number of satisfactory banks correctly classified and
increasing type-2 error. A larger percentage of the
unsatisfactory banks would be identified, but a
larger percentage of satisfactory banks would be
misclassified.

5.

11

1. C o m p a r i s o n o f t y p e - 1 a n d t y p e - 2 error rates in
distinguishing satisfactory and unsatisfactory banks
through F I M S and U B S S
Type-1 error, percent

80

—

60

40

20

•
20

40

60

80

Type-2 error, percent

NOTE. A type-1 error is the classification of an unsatisfactory bank (CAMEL
3, 4, or 5) as satisfactory; a type-2 error is the classification of a satisfactory
bank (CAMEL 1 or 2) as unsatisfactory.

Chart 1 demonstrates this trade-off graphically
for the FIMS rating model and for the UBSS. Each
line in the figure starts at the upper left corner
because labeling no banks as unsatisfactory implies
that all of the truly unsatisfactory banks are mislabeled, so that type-1 error is 100 percent and
type-2 error is zero. Similarly, each line in chart 1

A b i l i t y o f t h e F I M S rating a n d U B S S c o m p o s i t e s c o r e t o c o r r e c t l y i d e n t i f y s a t i s f a c t o r y a n d u n s a t i s f a c t o r y b a n k s
Estimated CAMEL rating
Actual CAMEL rating

Unsatisfactory

Satisfactory

Total

UBSS

FIMS

UBSS

FIMS

Unsatisfactory
Number
Percentage

5,118
67.3

6,307
82.9

2,488
32.7

1,299
17.1

7,606
100

Satisfactory
Number
Percentage

2,377
12.2

1,444
7.4

17,100
87.8

18,033
92.6

19,477
100

Total
Number
Percentage

7,495
28.6

7,751
28.6

19,588
71.4

19,332
71.4

27,083
100

NOTE. A "satisfactory bank" is a bank with a composite CAMEL rating
of 1 or 2, whereas an "unsatisfactory bank" is a bank with a composite
CAMEL rating of 3, 4, or 5. These results are based upon FIMS ratings




calculated using bank Call Report data from each quarter from December
1989 through March 1992 and upon the composite CAMEL ratings assigned
in each subsequent quarter.

12

Federal Reserve Bulletin • January 1995

ends at the lower right corner, because labeling all
banks as unsatisfactory implies that none of the
satisfactory banks are correctly labeled, so that
type-1 error is zero and type-2 error is 100 percent.
The ideal model would produce a plot that follows
the vertical axis from its top to the origin and then
follows the horizontal axis from the origin to its
end.
When the plots for the FIMS rating model and
the UBSS are compared, the plot for FIMS lies
below and to the left of the UBSS for all values.
This pattern means that, for any level of type-2
error, type-1 error is lower for FIMS than for the
UBSS.

FIMS Rating Model: Estimating

2 . C o m p a r i s o n o f t y p e - 1 a n d t y p e - 2 error rates i n
identifying the d o w n g r a d i n g o f banks through F I M S
and U B S S

Downgrades

A primary function of a surveillance model is the
ability to identify institutions that are not known to
be financially troubled but that are in fact troubled
or will be troubled in the near future. Thus, another
criterion for the success of a model is the ability to
identify those banks that are rated satisfactory
(CAMEL 1 or 2) but that will be downgraded to
unsatisfactory (CAMEL 3, 4, or 5) in the near term.
Once again, a trade-off exists between type-1 and
type-2 error rates (table 6). In this case, a type-1
error occurs when the model incorrectly classifies a
downgraded bank, and a type-2 error occurs when
the model misclassifies a bank that is not downgraded.
6.

NOTE. A type-1 error is the failure to identify the downgrading of a bank; a
type-2 error is the false identification of a downgrading.

According to table 6, FIMS incorrectly labeled
58.8 percent of downgraded banks as satisfactory
(type-1 error) and incorrectly labeled only 2.7 percent of the CAMEL 1- or 2-rated banks as a downgrade (type-2 error). By comparison, the UBSS
incorrectly labeled 55.5 percent of downgraded

A b i l i t y o f the F I M S rating and the U B S S c o m p o s i t e s c o r e to identify b a n k s d o w n g r a d e d f r o m a c o m p o s i t e
C A M E L r a t i n g o f 1 o r 2 t o a c o m p o s i t e C A M E L rating o f 3, 4 , or 5
Estimated CAMEL rating
Unsatisfactory

Actual CAMEL rating

Satisfactory

Total

UBSS

FIMS

UBSS

FIMS

1 or 2
Number
Percentage

2,002
11.1

481
2.7

16,092
88.9

17,613
97.3

18,094
100

3, 4, or 5
(downgrade)
Number
Percentage

1,019
45.5

757
41.2

818
55.5

1,080
58.8

1,837
100

Total
Number
Percentage

3,021
15.2

1,238
6.2

16,910
84.8

18,693
93.8

19,931
100

NOTE. Based upon FIMS ratings calculated with bank Call Report data
from each quarter from December 1989 through March 1992 and upon the
composite CAMEL ratings assigned in each subsequent quarter. Sample




includes only banks that had previously been rated as satisfactory; therefore
total is smaller than that in tables 4 and 5.

FIMS: A New Monitoring System for Banking Institutions 13

banks as satisfactory (type-1 error) and incorrectly
labeled 11.1 percent of the CAMEL 1- or 2-rated
banks as downgrades (type-2 error). Hence, the
type-1 error rate for the UBSS is slightly less than
that of FIMS, but the type-2 error rate is much
greater than that of FIMS.
As with the distinction between satisfactory and
unsatisfactory tested earlier, comparing the type-1
versus type-2 error trade-off over all possible cutoff values is a more revealing test. Such a comparison of FIMS and the UBSS in identifying downgraded banks versus satisfactory banks appears in
chart 2. As before, the plot for FIMS lies below and
to the left of that for the UBSS for all values,
demonstrating that, for any level of type-2 error,
type-1 error is lower for FIMS than for the UBSS.

3. Comparison of type-1 and type-2 error rates in
identifying bank failures through FIMS, UBSS,
and CAMEL
Type-1 error, percent

80

60

-

—

40

FIMS
X V V

/

FIMS Risk Rank Model:
Accuracy in Estimating Bank Failures

20

UBSS
/

CAMEL

I

To assess the accuracy of the FIMS risk rank model
in estimating the likelihood of bank failures, out-ofsample estimates of the probability of failure within
a two-year period were calculated using binary
logistic regression methodology. The accuracy of
out-of-sample estimation was assessed over the
five two-year periods beginning with year-ends
1986-90. For comparison, estimates of failure over
these same two-year periods were constructed for
the UBSS by ranking banks from worst to best
based upon their UBSS composite percentile
scores. Altogether, 48,306 estimates were made
over the five periods.
As an additional test of accuracy, banks were
ranked by their CAMEL rating as of year-ends
1988, 1989, and 1990 to see how well the CAMEL
rating estimated failures during the subsequent twoyear period relative to FIMS and the UBSS. Over
these periods, a total of 32,306 estimates were
made using each system.
The type-1 and type-2 error rates for each system
were calculated and are plotted in chart 3. In this
chart, the vertical axis represents the proportion of
failing banks incorrectly identified as surviving
(type-1 error), and the horizontal axis represents
the proportion of surviving banks incorrectly identified as failing (type-2 error). The lines plotted on
these axes represent the trade-off between these
two types of error.



20

40
60
Type-2 error, percent

I

80

NOTE. A type-1 error is the failure to identify the failure of a bank; a type-2
error is the false identification of a bank failure.

The classification accuracy for each of the three
models is good, as indicated by the high degree of
curvature in the plots. The plots demonstrate that
the FIMS rating model is more accurate than the
UBSS or CAMEL, as the FIMS curve lies below
and to the left of the UBSS and CAMEL curves.
For example, when 5 percent of the surviving banks
are misclassified, FIMS misclassifies 20 percent of
the failing banks. In comparison, the UBSS misclassifies 28 percent of the failing banks and
CAMEL misclassifies 32 percent of the failing
banks. When 10 percent of the surviving banks are
misclassified, FIMS misclassifies 9 percent of the
failing banks; the UBSS, 16 percent; and CAMEL,
22 percent. With the current population of approximately 11,000 banks, to reduce the percentage of
misclassified failing banks to 9 percent the UBSS
and CAMEL would have to misclassify approximately 800 more and 1,300 more surviving banks
as failed, respectively, than would FIMS.
The relatively poor performance of the CAMEL
rating is most probably attributable to the fact that
CAMEL ratings available at any given date are
based upon information that is more dated than that

14

Federal Reserve Bulletin • January 1995

for the off-site monitoring systems. In many cases,
these examinations occurred more than a year
before the date of interest. For example, the
CAMEL ratings available as of December 31,
1990, were based upon examinations conducted
from December 1985 to December 1990, with the
average data more than two years old.
Even if all banks were examined once each
calendar year, with 25 percent of the banks examined during each quarter of the year, the examination ratings available at any one time would be, on
average, six months old. In contrast, off-site surveillance scores such as those produced by FIMS
and the UBSS are based upon the most recent
quarterly financial data, which are available
approximately two months after the end of each
quarter.12 In fact, the age of examination ratings is
the very reason for off-site systems to monitor the
financial condition of banks during the periods
between examinations.
FIMS AS A SURVEILLANCE
MODEL
FOR BANK HOLDING
COMPANIES

As part of its regulatory responsibilities, the Federal Reserve is responsible for supervising bank
holding companies. The Federal Reserve uses the
so-called BOPEC system for rating the financial
condition of bank holding companies as determined from on-site inspections. A BOPEC rating
consists of a composite rating derived from five
component ratings plus a separate management
rating. The five component ratings are for the
"bank," "other," "parent," "earnings," and "capital" components (hence the acronym BOPEC). The
first three components refer to the three segments
of the consolidated bank holding company—its
bank subsidiaries covered by the Bank Insurance
Fund, its other subsidiaries, and its parent company. As with the CAMEL rating, each component
rating and the composite rating are scaled from 1 to
5. The separate management rating, however, has
only three levels—"S" for satisfactory, "F" for
fair, and "U" for unsatisfactory. Thus, a bank
holding company receiving the highest possible
ratings would have a BOPEC of "11111/1-S."
12. For expositional purposes, this discussion assumes that only
one date is associated with each examination when, in actuality,
three are. See note 11.




FIMS provides the Federal Reserve with a means
for estimating the bank component of the BOPEC
rating. Because the bank component rating is very
highly correlated with the composite BOPEC
rating, this estimate can serve as an off-site surveillance rating for bank holding companies. For a
multibank holding company, the FIMS rating is
calculated as the asset-weighted average of its subsidiary banks' FIMS ratings. For a one-bank holding company, it is the same as the subsidiary bank's
rating.
FIMS also provides a risk rank for the combined
bank portion of bank holding companies. Like the
FIMS rating for bank holding companies, the FIMS
risk rank for a multibank holding company is calculated as the asset-weighted average of its subsidiary
banks' FIMS risk ranks, whereas for a unitary bank
holding company it is the same as the subsidiary
bank's risk rank. Because bank assets comprise the
vast majority of a bank holding company's consolidated assets, these asset-weighted risk-rank averages should provide a fairly reliable off-site assessment of a bank holding company's financial
condition when used in conjunction with off-site
monitoring of the nonbank subsidiaries and consolidated organization.
CONCLUSION

The Financial Institutions Monitoring System has
been developed to provide the Federal Reserve
System with estimates of the financial condition of
commercial banks and savings banks insured by
the Bank Insurance Fund between on-site examinations. FIMS has several advantages over the Federal Reserve's previous off-site surveillance systems and the expert-based models used by other
federal regulators.
First and most important, the accuracy of the
new system in estimating the financial condition of
banks as indicated both by subsequent on-site
examination ratings and by subsequent failures is
superior to that of the Federal Reserve's previous
model.
Second, the new system provides objective measures of a bank's financial condition. Both the
variables and the variable weights that are used to
calculate these measures are determined by rigorous statistical testing rather than by subjective
judgment.

FIMS: A New Monitoring System for Banking Institutions

Third, the new system provides a consistent measure of banks' financial condition. Both models
that make up the new system can be calculated for
each bank.
Fourth, the new system provides a timely measure of financial condition. The FIMS rating and
risk rank for an individual bank can be calculated
as soon as the bank files its quarterly Call Report
rather than later, when enough quarterly Call
Report data are available to calculate meaningful
peer-group averages.
Fifth, the new system is more flexible than alternative systems. Explanatory variables can be added
to or deleted from FIMS with minimal revisions to
software or procedures. The UBSS and CAEL use
fixed sets of financial ratios to calculate the surveillance scores, and any change in these ratios would
require considerable revision to the surveillance
system. The greater flexibility of FIMS should
enable staff members at the Board and the Reserve
Banks to continue to improve the new system's
accuracy over time as experimentation with different variables continues and as feedback from endusers is incorporated into the system. Moreover,
because the coefficients on the explanatory variables change each quarter in reflection of the




15

changing conditions in the banking industry, FIMS
should continue to be more accurate than existing
alternative systems.
Finally, the new system can identify deterioration or improvement in the banking industry within
peer groups and systemwide. Unlike systems that
rely upon peer-group rankings, FIMS measures
absolute as well as relative changes in financial
condition.
Preliminary testing has indicated that the methodology used to estimate the composite CAMEL
rating produces estimates of the five component
CAMEL ratings that are as accurate as estimates of
the composite CAMEL rating. By providing estimates of component ratings as well as of the composite rating, FIMS could be used to better focus
examination efforts on the dimensions of performance that appear to require the most urgent supervisory attention.
FIMS is also being tested for possible use on
foreign banks. Most problematic is the assessment
of the accuracy of the results, given the lack of
CAMEL ratings for foreign banks. Comparison of
FIMS ratings for foreign banks with alternative
measures of risk, however, suggest that the FIMS
approach is a promising avenue of research.
•

16

Industrial Production and Capacity Utilization:
A Revision
Richard D. Raddock, of the Board's Division of
Research and Statistics, prepared this article.
The Federal Reserve index of industrial production
(IP) and the related measures of capacity and utilization have been revised starting with January
1991.1 The revised indexes incorporate new or
updated data and, beginning with January 1992,
updated weights. The new weights used for adding
up the series are derived from value added by
industries in 1992 rather than in 1987. Value added
in 1987, however, still provides the base weights to
calculate annual growth of IP from 1987 to 1992,
and the production and related capacity indexes
continue to be expressed as a percentage of output
in 1987 (chart 1).
The new estimates of production incorporate preliminary results of the 1992 Census of Manufactures, annual physical data on mining for 1992 and
1993, and updated monthly source data, seasonal
factors, and productivity relationships. The revisions to capacity and utilization reflect the new
IP indexes, updated estimates of capital stocks for
manufacturing, and new information provided
mainly by trade associations on physical capacity
and utilization for selected industries. The updated
capital stocks incorporate new data on actual manufacturing investment in 1992 and revised estimates
of investment in 1993 and 1994 based on surveys
of capital spending plans by manufacturers.
For the third quarter of 1994, the revised IP
index is 118.8 percent of output for total industry in
1987, compared with the level of 118.4 percent
reported previously (table l.A.)2 The revised

1. Although the revisions of the individual capacity indexes and
utilization rates begin in 1991, small revisions to some aggregates
extend back to 1987 for technical reasons. This aspect of the
revision is discussed later.
2. The figures for August through October of this year are
subject to further revision in the upcoming monthly statistical
releases.




capacity index is 140.9 percent of output in 1987,
compared with the level of 140.0 percent reported
previously. As a result, the rate of capacity
utilization—the ratio of production to capacity—
has been revised down about one-third of a percentage point to an estimated 84.3 percent in the third
quarter of 1994.
When compared with the earlier estimates, the
revised IP index shows stronger growth in 1991
and 1992 and slower growth in 1993 and 1994
(table 2). The upward revision to IP growth in 1992
largely reflects the incorporation of the new Census
of Manufactures data. The slower growth now
shown for 1993 and 1994 is due chiefly to the
introduction of the 1992 value-added weights.
1. Revised and earlier industrial output, capacity, and
utilization, 1 9 8 7 - 9 4
Ratio scale, 1987 output = 100

Percent of capacity

1988

1990

1992

1994

NOTE. Seasonally adjusted, monthly data through October 1994.

17

Annual growth of industrial capacity has been
revised up for 1991, 1992, and 1993. By the fourth
quarter of 1993, capacity utilization is unchanged
from the earlier estimate (tables 4 and 5). The
faster growth of capacity through 1993 is the result
of the revised gain in IP over the period as well as a
faster rate of capital formation by manufacturers.
Capital stock estimates have been raised, in large
part, because the 1992 Census of Manufactures
shows investment spending by manufacturers to
have been stronger than survey data had previously
indicated.
The average upward revision to capacity growth
for total manufacturing is 0.2 percentage point a
year over the past four years. As with the produc-

The new 1992 weights, a key aspect of the
revision, have substantially reduced the relative
share of output of computers in the total index, a
reduction that follows from the rapid decline in the
relative price of computing power between 1987
and 1992. The smaller weight now given to the
fast-growing computer industry explains, in large
part, the slower growth in 1993 and 1994 shown by
the revised indexes for business equipment and for
total manufacturing (table 3). By contrast, indexes
for these groups excluding computers are largely
unaffected by the shift to 1992 valuation, and revisions to these aggregates indicate that the picture of
industrial activity during the past two years has
been little changed, on balance, by the revision.
l.A.

R e v i s e d data f o r industrial p r o d u c t i o n , c a p a c i t y , a n d u t i l i z a t i o n f o r total industry,

1987-941

Seasonally adjusted data except as noted
Quarter
Year

Jan.

Feb.

Mar.

Apr.

May

June

July

Sept.

Aug.

Oct.

Nov.

Dec.
1

2

3

4

Annual
avg. 2

Industrial production (percentage change)
1987
1988
1989
1990
1991
1992
1993
1994

-.3
.3
.3
-.5
-.5
-.3
.2
.0

1.4
.2
-.5
.5
-.9
.9
.6
.8

.4
.0
.9
.3
-1.0
.6
.1
.9

.5
.8
.0
-.7
.5
.5
.0
.1

.6
-.3
-.3
.7
.8
.5
-.2
.5

.9
.0
-.3
.2
.9
-.3
.3
.6

.4
.6
-1.0
-.2
.3
.9
.4
.2

.3
.6
.5
.3
.1
-.1
.2
.7

-.2
-.5
-.4
.0
.9
.2
.3
.0

1.3
.3
-.4
-.5
-.1
.6
.1
.6

.1
.6
.4
-1.3
.0
1.0
.9

.7
.6
.7
-.4
-.4
.5
.9

5.5
3.8
3.9
2.1
-8.1
.9
5.1
7.1

8.1
3.0
.3
1.1
1.7
5.8
.7
6.0

5.2
2.9
-4.4
1.6
6.3
3.4
3.3
5.0

6.5
3.0
-.2
-5.2
1.5
6.2
5.3

4.9
4.4
1.5
.0
-1.7
3.2
4.1

102.1
105.0
105.0
106.3
105.6
108.8
112.7
119.8

102.2
105.6
105.4
105.0
105.6
109.9
113.7

102.8
106.3
106.1
104.5
105.2
110.4
114.7

97.5
103.3
106.6
106.0
103.1
105.7

100.8
104.8
105.5
106.7
105.1
108.1
112.2
118.8

102.3
105.6
105.5
105.3
105.5
109.7
113.7

100.0
104.4
106.0
106.0
104.3
107.6
112.0

115.7

99.5
104.1
106.7
106.3
103.5
107.2
111.3
117.4

123.4
125.3
127.5
129.9
132.4
135.1
137.9
141.6

123.6
125.4
127.7
130.1
132.6
135.4
138.2

123.8
125.5
127.9
130.3
132.8
135.6
138.4

121.8
124.1
125.9
128.3
130.7
133.3
136.1
139.0

122.4
124.5
126.5
128.9
131.3
134.0
136.8
140.0

123.0
125.0
127.1
129.5
132.0
134.7
137.5
140.9

123.6
125.4
127.7
130.1
132.6
135.4
138.2

122.7
124.7
126.8
129.2
131.6
134.3
137.1

82.7
83.8
82.3
81.8
79.8
80.6
81.7
84.6

82.7
84.2
82.5
80.7
79.6
81.2
82.3

83.1
84.6
82.9
80.2
79.2
81.5
82.9

80.1
83.3
84.7
82.6
78.9
79.3
81.7
83.2

81.3
83.6
84.3
82.5
78.8
80.0
81.4
83.8

81.9
83.9
83.0
82.4
79.6
80.3
81.6
84.3

82.8
84.2
82.6
80.9
79.6
81.1
82.3

81.5
83.7
83.7
82.1
79.2
80.2
81.7

Industrial production
1987
1988
1989
1990
1991
1992
1993
1994

96.5
103.2
106.6
105.5
104.0
104.9
110.6
114.7

97.9
103.4
106.2
106.1
103.1
105.8
111.3
115.6

98.2
103.4
107.1
106.4
102.1
106.4
111.4
116.6

98.8
104.3
107.1
105.7
102.6
106.9
111.4
116.7

99.4
104.0
106.7
106.5
103.5
107.5

111.1
117.4

100.3
104.0
106.4
106.7
104.4
107.2
111.5
118.0

100.6
104.6
105.3
106.5
104.7
108.1
112.0
118.2

100.9
105.2
105.8
106.8
104.8
108.0
112.2
119.1

100.7
104.7
105.4
106.8
105.7
108.2
112.5
119.1

111.1

Capacity
1987
1988
1989
1990
1991
1992
1993
1994

121.6
123.9
125.7
128.1
130.5
133.0
135.8
138.7

121.8
124.1
125.9
128.3
130.7
133.3
136.1
139.0

122.0
124.2
126.1
128.5
130.9
133.5
136.3
139.3

122.2
124.4
126.3
128.7
131.1
133.7
136.5
139.7

122.4
124.5
126.5
128.9
131.3
134.0
136.8
140.0

122.6
124.7
126.7
129.1
131.5
134.2
137.0
140.3

122.8
124.8
126.9
129.3
131.7
134.4
137.2
140.6

123.0
125.0
127.1
129.5
132.0
134.7
137.5
140.9

123.2
125.1
127.3
129.7
132.2
134.9
137.7
141.3
Utilization

1987
1988
1989
1990
1991
1992
1993
1994

79.3
83.2
84.8
82.4
79.7
78.8
81.5
82.7

80.3
83.3
84.3
82.7
78.9
79.4
81.8
83.2

80.5
83.2
84.9
82.8
78.0
79.7
81.7
83.7

80.8
83.8
84.8
82.1
78.3
80.0
81.6
83.6

81.2
83.5
84.3
82.6
78.8
80.3
81.2
83.8

81.8
83.4
83.9
82.6
79.4
79.9
81.4
84.1

81.9
83.8
83.0
82.4
79.5
80.4
81.6
84.1

1. Estimates from August 1994 through October 1994 are subject to
further revision in the upcoming monthly releases.




82.0
84.2
83.3
82.5
79.4
80.2
81.6
84.5

81.8
83.7
82.8
82.4
80.0
80.2
81.7
84.3

2. Annual averages of industrial production are calculated from not seasonally adjusted indexes.

18

Federal Reserve Bulletin • January 1995

tion index, the use of 1992 value-added weights
reduces the contribution to aggregate indexes made
by the rapidly expanding computer industry. The
upward revision to growth of capacity for manufacturing excluding the computer industry is larger in
each year since 1991.
By the third quarter of 1994, capacity utilization
in manufacturing is 83.6 percent, 0.4 percentage
point lower than the rate previously reported.
Although figures for some of the individual series
changed noticeably, the revised estimates for the
major aggregates on balance are not appreciably
different from the earlier ones. Among primaryprocessing industries, operating rates are now estimated to have been slightly higher. The rubber and

l.B.

plastics products, stone, clay, and glass, paper, and
fabricated metals industries contributed to the
increase; however, downward revisions to operating rates in the primary chemical, petroleum, and
textiles industries largely offset those increases.
Among advanced processors, overall utilization is
lower because of downward revisions in a number
of industries, especially printing and publishing
and furniture and fixtures.
Capacity estimates for mining and utilities are
little changed. Utilization rates in mining and in
gas utilities for the third quarter of 1994 are higher
than the estimates reported earlier, whereas the
operating rate for electric utilities is essentially the
same as the earlier rate.

1987-941

R e v i s e d d a t a f o r industrial p r o d u c t i o n , c a p a c i t y , a n d u t i l i z a t i o n f o r m a n u f a c t u r i n g i n d u s t r i e s ,
Seasonally adjusted data except as noted

Quarter
Year

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.
1

2

3

4

Annual
avg. 2

Industrial production (percentage change)
1987
1988
1989
1990
1991
1992
1993
1994

-.6
.2
.8
-.1
-.8
-.2
.5
-.3

1.7
.1
-.9
.9
-.9
1.0
.5
.8

.5
.2
.6
.4
-1.1
.7
.1
1.1

.4
.7
.2
-.9
.6
.4
.1
.3

.7
-.1
-.5
.5
.7
.5
-.2
.5

.9
.0
-.2
.0
1.0
-.2
.2
.3

.4
.5
-1.2
-.3
.4
.9
.5
.4

.0
.4
.4
.5
.2
.0
.1
.9

.2
.0
-.4
-.1
1.1
.1
.4
.0

1.0
.1
-.5
-.6
-.1
.5
.1
.7

.4
.9
.3
-1.2
-.1
l.l
1.1

.6
.6
.2
-.5
-.2
.4

6.3
3.6
4.3
3.7
-9.3
2.4
6.1
7.2

8.6
3.3
-.3
.2
1.3
6.0
1.3
7.3

5.6
3.0
-5.3
1.0
7.6
4.1
2.9
5.4

6.8
4.4
-1.3
-5.5
2.1
6.0
6.4

6.0
4.7
1.6
-.3
-2.0
3.9
4.5

102.0
105.3
105.1
106.2
105.5
109.3
113.6
121.8

102.4
106.2
105.4
104.9
105.4
110.5
114.8

103.0
106.8
105.6
104.4
105.3
110.9
116.1

97.4
103.4
107.2
106.3
102.6
106.0
111.9
116.8

99.4
104.2
107.2
106.4
103.0
107.6
112.3
118.9

100.8
105.0
105.7
106.6
104.9
108.7
113.1
120.5

102.5
106.1
105.4
105.1
105.4
110.3
114.8

100.0
104.7
106.4
106.1
103.9
108.0
112.9

123.4
125.9
128.7
131.4
134.2
137.4
140.7
144.9

123.7
126.0
128.9
131.6
134.4
137.7
141.0

123.9
126.2
129.2
131.8
134.6
137.9
141.3

121.5
124.3
126.7
129.6
132.3
135.2
138.5
142.0

122.2
124.9
127.4
130.3
133.0
136.0
139.3
143.1

122.9
125.5
128.2
130.9
133.7
136.8
140.2
144.2

123.7
126.0
128.9
131.6
134.4
137.7
141.0

122.6
125.2
127.8
130.6
133.4
136.4
139.7

82.6
83.7
81.7
80.8
78.7
79.6
80.7
84.0

82.8
84.3
81.8
79.7
78.4
80.3
81.4

83.1
84.6
81.8
79.2
78.2
80.4
82.2

80.2
83.2
84.6
82.0
77.6
78.4
80.8
82.3

81.4
83.5
84.1
81.7
77.4
79.1
80.6
83.1

82.0
83.7
82.5
81.4
78.4
79.4
80.7
83.6

82.8
84.2
81.7
79.9
78.4
80.1
81.4

81.6
83.6
83.2
81.3
78.0
79.2
80.9

1.1

Industrial production
1987
1988
1989
1990
1991
1992
1993
1994

96.2
103.2
107.7
105.5
103.6
105.1
111.5
115.8

97.8
103.4
106.7
106.5
102.7
106.1
112.0
116.7

98.3
103.6
107.3
107.0
101.6
106.9
112.2
118.0

98.7
104.3
107.6
106.0
102.1
107.3
112.3
118.4

99.4
104.2
107.1
106.6
102.8
107.8
112.1
119.0

100.3
104.2
106.8
106.6
103.9
107.7
112.3
119.3

100.7
104.7
105.5
106.3
104.4
108.6
112.9
119.8

100.7
105.1
106.0
106.9
104.5
108.6
112.9
120.8

100.9
105.2
105.6
106.8
105.7
108.7
113.4
120.9
Capacity

1987
1988
1989
1990
1991
1992
1993
1994

121.2
124.1
126.5
129.4
132.1
134.9
138.2
141.6

121.5
124.3
126.7
129.6
132.3
135.2
138.5
142.0

121.7
124.5
127.0
129.8
132.5
135.5
138.8
142.3

121.9
124.7
127.2
130.1
132.8
135.7
139.1
142.7

122.2
124.9
127.4
130.3
133.0
136.0
139.3
143.1

122.4
125.1
127.7
130.5
133.2
136.3
139.6
143.4

122.7
125.3
127.9
130.7
133.5
136.6
139.9
143.8

122.9
125.5
128.2
130.9
133.7
136.8
140.2
144.2

123.2
125.7
128.4
131.2
133.9
137.1
140.4
144.5
Utilization

1987
1988
1989
1990
1991
1992
1993
1994

79.3
83.2
85.2
81.6
78.4
77.9
80.7
81.8

For notes, see table l.A.




80.5
83.1
84.2
82.2
77.6
78.5
80.9
82.2

80.7
83.2
84.6
82.4
76.6
78.9
80.8
82.9

80.9
83.6
84.6
81.5
76.9
79.0
80.8
83.0

81.3
83.4
84.0
81.8
77.3
79.3
80.5
83.2

81.9
83.3
83.7
81.7
78.0
79.0
80.5
83.2

82.1
83.6
82.5
81.3
78.2
79.5
80.7
83.3

81.9
83.8
82.7
81.6
78.2
79.4
80.6
83.8

81.9
83.7
82.2
81.4
78.9
79.3
80.8
83.6

Industrial Production and Capacity Utilization: A Revision

advanced at a rate of about 5Vi percent in both
1993 and the first three quarters of 1994, a little
less than the rate of growth reported before the
revision. Growth in output of consumer nondurable
goods has averaged only about 2 percent a year
since 1990, essentially the same as was reported
previously.
The business equipment group has been a major
source of strength since late 1991. Although the
rate of growth of output in this sector revised down
in 1993 and 1994 because of the reduced weight of
computers, the output index for information processing and related equipment continued to grow at
a double-digit rate. Output of industrial, farm, and
service industry equipment and of office furniture
also grew rapidly in 1993 and 1994. Of the major
subgroups within business equipment, only the production of transit equipment is lower in the third
quarter of 1994 than it was two years earlier; the
steep drop in output of commercial aircraft and
parts exceeded gains in business vehicles and railroad equipment. The downsizing of the defense
and space equipment sector has cut its level of

REVISIONS TO PRODUCTION
BY MARKET GROUP

In examining industrial production by major market group, the revisions to the level of output of
consumer goods for the 1991-93 period were small
(table 2). Over the first three quarters of 1994,
output of consumer durables, particularly motor
vehicles, is now estimated to have risen faster than
previously estimated. But the larger gain has been
more than offset by slower growth in production of
consumer nondurables, which is more heavily
weighted. Output of durable consumer goods
helped fuel the recovery and expansion from the
1991 trough until early 1994 (chart 2), with gains
initially concentrated in trucks and appliances and
then broadening to include other durable goods.
After reaching exceptionally high levels in early
1994, however, output of automobiles and light
trucks slowed. Output of some popular models,
particularly sport utility vehicles, was limited by
effective capacity constraints. Production of consumer durables other than automotive products
2.

19

Revised rates of growth in industrial production, by major market group, 1 9 9 0 - 9 4 1
Difference between revised
and earlier growth rates
(percentage points)

Revised rate of growth1
(percent)

Market group
1990
Total index
Products, total
Final products
Consumer goods
Durable consumer goods
Automotive products
Other
Nondurable consumer goods
Equipment
Business equipment
Industrial
Information processing and related
Transit
Other
Defense and space equipment
Intermediate products
Construction supplies
Business supplies
Materials
Durable
Nondurable
Energy materials
Aggregates, excluding computer
and office equipment
Total index
Business equipment

1991

1992

1993

1994

-.2

.2

4.0

3.6

-.4
-.1
-1.8
-8.3
-11.7
-5.4
.1

-.1
.6
2.5
5.4
5.3
5.4
1.8

4.3
4.6
3.4
6.5
11.9
2.3
2.6

2.3
3.0
-1.4
6.2
7.0
-2.2
-.9

-2.0
.8
-6.7
4.5
7.9
-5.3
-8.1

-1.6
-4.3
.2
.2
-.1
.7
.2

-.5
1.5

1991

1992

1993

6.0

.0

.5

.8

-.6

-.5

2.9
2.8
2.1
8.2
11.5
5.4
.7

5.1
4.7
3.5
5.0
4.3
5.6
3.1

.0
.0
.0
.0
.0
.0
.0

.5
.7
.2
.4
.3
.5
.2

.4
.5
.2
.1
.2
.2
.2

-1.0
-1.0
.3
-.9
-1.1
-.5
.9

-.8
-1.3
-.7
1.2
2.3
.2
-1.2

6.3
9.0
3.5
16.5
1.1
6.7
-6.0

3.9
6.9
6.0
10.6
-2.7
11.8
-9.8

6.5
10.0
9.9
13.6
-1.5
13.6
-11.5

.0
.0
.0
.0
.0
.0
.0

1.1
1.3
-.8
3.4
.2
-.5
.6

1.1
.3
-.1
.1
2.2
.4
4.3

-2.5
-3.0
1.8
-5.0
-4.4
1.2
-.3

-1.8
-1.4
-1.8
-2.5
2.3
2.1
-3.1

-2.5
-3.6
-1.9
.7
.9
.7
.2

3.3
4.3
2.8
3.7
6.2
2.1
-.1

3.4
6.2
1.9
4.6
7.4
4.0
-.9

6.5
7.9
5.6
7.5
10.2
5.3
3.1

.0
.0
.0
.0
.0
.0
.0

.0
.9
-.7
.6
1.2
-.5
.3

.2
.9
-.1
1.5
2.8
.0
-.2

-.7
.3
-1.1
-.2
-.8
.2
.1

.9
2.1
.1
.0
-.3
-.1
.4

.0
-.4

3.4
5.3

3.1
3.8

5.7
8.8

.0
.0

.4
.6

1.1
1.5

.1
.3

.0
.5

1. Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth
quarter of the year specified in the column heading. For 1994, the growth




1994

1990

rates, at an annual rate, are calculated from the fourth quarter of 1993 to the
third quarter of 1994.

20

Federal Reserve Bulletin • January 1995

production about a third since early 1990, nearly as
much as was reported before the revision.
For intermediate products, the new figures show
the same solid advance over the past few years
reported earlier. Output of construction supplies is
now estimated to have risen more strongly, with the
upward revisions since the fourth quarter of 1991
cumulating to 3.5 percent by the third quarter of
1994. In contrast, the output index for general
business supplies grew less overall than was
reported before.
The revised production index for industrial materials, like the unrevised index, shows accelerating
growth in the past two years; output rose at an
annual rate of 7.5 percent over the first three quarters of 1994. Growth has been concentrated in
durable materials used in equipment and in consumer durables, particularly motor vehicles.
TECHNICAL

ASPECTS

OF THE

REVISION

Value-Added Weights for 1992
The index of industrial production is a linked
quantity index that is calculated according to the

Laspeyres formula.3 Value added in 1992 determines the base weights for 1992 forward; value
added in 1987 continues to provide the base
weights to calculate annual growth from 1987 to
1992. Indexes based on the 1992 weight base have
been linked to 1987-based indexes at the beginning
of 1992 to form a continuous time series expressed
as percentages of output in 1987.
Total industrial value added in 1992 was
$1.7 trillion, of which durable manufacturing contributed 45 percent; nondurable manufacturing,
40 percent; mining, 7 percent; and utilities, 8 percent (table 6). The 1992 Censuses of Manufactures
and Mineral Industries provided measures of value
added by individual manufacturing and mining
industries in 1992. Value-added estimates for electric and gas utilities were compiled from income
and expense information published by the Department of Energy, the Edison Electric Institute, and
the American Gas Association.

3. See Board of Governors of the Federal Reserve System,
Industrial Production—1986 Edition (Board of Governors, 1986),
pp. 22-23 and chapter 5, "Aggregation," pp. 59-65, for a discussion of the methodology of the industrial production index.

2. Industrial output by market groups, 1 9 8 7 - 9 4

1988

1990

1992

1994

NOTE. Seasonally adjusted, monthly data through October 1994.




1988

1990

1992

1994

Industrial Production and Capacity Utilization: A Revision

As discussed earlier, the most notable result of
the introduction of 1992 weights is to reduce the
effect of the rapidly rising output of the computer
and office equipment industry (SIC 357) on total
industrial production since 1992. Previously, the
proportion of SIC 357 in total IP, which was based
on 1987 price relationships, had grown from
2.3 percent in 1987 to 3.7 percent in 1992 and to
4.7 percent in 1993. The proportion for SIC 357

The ratio of value added in an industry to total
value added in manufacturing, mining, and utilities
indicates the proportionate contribution of that
industry to total industrial production. The valueadded proportions for 1992 were introduced in this
revision to combine the production indexes beginning in 1992. Updated weights allow reasonably
current price relationships to determine the relative
importance of the series in the index.
3.

21

Revised rates of growth in industrial production, by major industry group, 1990-94

Industry group

Difference between revised
and earlier growth rates
(percentage points)

Revised rate of growth2
(percent)

SIC
group1
1990

Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous
Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal mining
Oil and gas extraction
Stone and earth minerals
Utilities
Electric
Gas
Aggregate, excluding computer
and office equipment
Manufacturing

1994

1990

.2

4.0

3.6

6.0

.0

1992

1993

1994

.5

.8

-.6

-.5

.2

4.6

4.2

6.6

.0

.5

1.0

-.8

-.6

-.6
.6

3.8
5.0

5.1
3.7

5.6
7.1

.0
.0

.1
.7

1.0
1.0

.1
-1.3

.3
-1.0

-.7
-8.5
-4.2
-3.3

.0
-.2
-1.0
-6.8

5.8
7.3
5.5
5.7

6.3
5.7
4.5
5.0

8.2
3.0
10.8
4.6

.0
.0
.0
.0

.9
-.9
.2
-.1

1.5
-1.1
1.8
.6

-1.4
.7
-1.3
-.3

-.3
1.6
.3
2.3

.9
2.9
5.6
-2.0
-3.0
1.7
-.2

-2.9
-5.2
-8.2
.6
-1.4
-1.2
5.6
4.0

1.1
1.6
1.7
.3
4.5
11.3
30.6
11.4

6.8
8.2
5.9
5.1
4.9
14.1
33.5
13.1

5.1
1.2
-1.1
10.5
8.6
13.4
17.9
17.2

.0
.0
.0
.0
.0
.0
.0
.0

.5
.0
.0
1.3
.9
1.5
3.6
1.5

.3
.3
.0
.1
3.5
-2.0
-1.2
6.2

-.7
-1.2
.0
.4
-.7
-3.3
-.4
2.2

2.4
.7
.0
4.1
.1
-2.4
-2.7
-.6

372-6,9
38
39

-1.2
-7.2
-11.1
4.1
2.0
-1.1

1.2
10.2
12.7
-5.8
.7
.5

2.3
11.7
8.8
-6.3
.5
.6

.5
14.0
14.9
-14.4
-2.1
3.8

.1
3.9
1.4
-5.3
4.6
7.5

.0
.0
.0
.0
.0
.0

.6
.8
.4
.4
1.2
-.2

2.5
1.2
-2.4
3.7
.5
-.1

-3.1
-2.6
-2.1
-3.6
.7
1.7

1.0
.1
.7
2.1
.3
2.7

20
21
22
23
26

.4
1.7
.0
-5.2
-4.6
2.6

.5
.8
-12.1
5.6
5.9
1.8

3.2
1.9
10.0
4.4
.0
-.4

1.8
2.1
-15.5
1.4
-1.2
7.2

4.7
2.9
22.1
4.2
3.6
2.7

.0
.0
.0
.0
.0
.0

.0
-.2
-2.6
-1.1
1.5
.6

.4
.0
.3
-.7
-.1
-.5

.3
1.5
.0
-.2
.5
1.6

-.9
-1.3
1.7
-1.5
-1.0
-.9

27
28
29
30
31

-.7
1.4
-.1
.6
-7.5

-2.4
.5
-2.0
3.2
-5.7

2.1
4.4
3.3
8.4
5.3

-.2
3.0
2.5
6.0
-4.8

3.5
5.2
-1.4
9.8
-.3

.0
.0
.0
.0
.0

-.3
-.2
-1.1
2.0
-1.4

-1.0
1.1
-.2
3.5
5.2

-1.4
.7
-.1
1.2
-1.4

-1.0
-1.8
.7
-.3
.6

10
12
13
14

2.6
4.4
1.4
3.0
.6

-3.1
.2
-2.5
-3.3
-5.1

.3
5.8
-.7
-.6
4.8

-.8
.7
-3.3
-.9
2.7

2.5
-4.4
9.2
1.4
5.7

.0
.0
.0
.0
.0

.3
-.3
.0
.2
2.4

.8
.7
.0
.5
4.2

.0
-5.8
-.1
.4
.7

1.0
3.8
.3
.7
2.3

491,3pt
492,3pt

-2.0
-.6
-6.8

2.6
1.5
6.8

1.9
1.9
1.9

1.1
.6
3.2

2.8
3.6
-.2

.0
.0
.0

.2
.3
-.1

.0
-.2
.6

.2
.2
.4

-.2
-1.0
2.4

-.6

.0

3.8

3.5

6.3

.0

.4

1.2

-.1

-.1

24
25
32
33
331,2
333-6,9
34
35
357
36
37
371

11.0

1. Standard Industrial Classification.
2. Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth




1991

-.2

Primary processing
Advanced processing

Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products
Industrial machinery and equipment
Computer and office equipment
Electrical machinery

1993

-1.2
.2

Manufacturing

Durable manufacturing
Lumber and products
Furniture and fixtures
Stone, clay, and glass products

1992

-.2

Total index

1991

quarter of the year specified in the column heading. For 1994, the growth
rates are calculated from the fourth quarter of 1993 to the third quarter of
1994.

22

Federal Reserve Bulletin • January 1995

To facilitate comparisons with data expressed
in 1987 dollars, a supplementary set of measures
combined with weights based on the market
value of products in 1987 is published in the
monthly statistical release (table 7 of the G.17
statistical release). These gross value of product

based on 1992 Census measures of value added,
however, is only about half the proportion before
the revision: 1.7 percent in 1992 and 2.2 percent in
1993. The reduced weight of SIC 357 in the total
index reflects the decline in the cost of computing
power between 1987 and 1992.
4.

Revised rates of growth in capacity, by major industry group, 1990-94

Industry group

Difference between revised
and earlier growth rates
(percentage points)

Revised rate of growth2
(percent)

SIC
code 1
1990

1991

1992

1993

1994

1990

1991

1992

1993

1994
.0

Total index

1.9

1.9

2.1

2.1

2.5

.0

.2

.4

.2

Manufacturing

2.1

2.1

2.4

2.4

2.9

.0

.2

.4

.2

.0

1.7
2.2
2.1
.6
2.2
.6

1.2
2.5
2.5
-.3
.9
.2

1.4
2.9
2.6
.3
1.6

1.4
2.8
2.6
.7
2.4
1.0

1.8
3.3
3.3
1.3
2.7
1.4

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

.1
3
.7
-.4
.2
-.1

.4
.5
.5
.1
.8
-.4

.3
.1
.0
.0
1.1
-.1

.7
-.3
-.3
.6
1.4
.4

.6
.9
.0
.2
.3
4.7
15.3
3.6

-.6
-1.2
-1.6
.4
.4
5.5
15.4
5.7

-1.0
-2.3
-2.6
.7
.9
4.8
15.6
6.6

-.6
-1.0
-3.7
.0
.9
4.4
14.4
7.5

.3
.5
-2.7
-.1
.9
5.3
15.1
8.9

.0
.0
.0
.2
.0
.0
.0
.0

.4
.0
.0
1.0
.5
.2
1.0
3.0

.4
.0
-.4
.8
1.1
-.5
2.2
3.7

.6
.9
-1.7
.1
1.1
-1.5
.4
2.5

.8
1.3
-1.9
.1
1.1
-3.9
-5.9
2.1

372-6,9
38
39

1.1
1.5
.8
.7
1.3
1.6

1.3
3.0
1.0
-.2
1.2
1.5

1.5
3.2
2.4
-.3
1.2
3.5

.5
2.5
.8
-1.6
1.3
3.2

1.4
3.9
3.4
-1.3
1.4
3.4

.1
.4
.0
-.1
.0
.0

.5
1.3
.0
-.1
-.1
-.2

-.5
-.3
-2.4
-.7
-.2
1.8

-.8
-1.1
-2.9
-.6
-.2
1.6

.3
-.5
-1.5
1.0
.1
2.0

20
21
22
23
26
27
28
29
30
31

2.1
1.4
-.4
1.6
.1
3.0
2.9
2.6
.9
4.0
-3.5

1.7
1.9
-.5
.5
-.4
2.3
1.3
2.6
-.8
3.5
-3.8

2.2
2.2
-.7
1.2
.9
1.9
1.7
3.5
-1.3
4.4
-2.4

2.2
2.2
1.0
1.7
.0
1.6
1.7
3.3
-.5
4.4
-2.7

2.3
2.1
.7
2.0
.3
1.7
1.3
3.6
-.4
4.6
-2.4

.0
.0
.0
.0
.0
.1
.0
.1
.0
.0
.0

-.3
-.2
-.1
-.5
.1
-.1
-.3
-.3
.0
.1
-.3

.4
-.3
-.3
.2
1.7
.1
1.0
.9
.0
1.1
1.2

.5
-.3
1.4
.0
.8
.0
1.0
.9
.0
1.4
1.1

.4
-.7
1.0
.0
1.0
.2
.2
1.1
.0
1.8
1.7

10
12
13
14

-1.2
5.1
2.1
-2.6
-.1

-.3
2.3
2.1
-1.0
-.5

-1.1
2.5
1.0
-2.1
.5

-1.4
1.7
1.1
-2.4
.0

-.5
.8
1.1
-1.1
-.2

2
-.2
.0
.4
.0

.3
.1
.0
.5
.0

-.1
.9
.0
-.2
.7

-.3
.2
.0
-.4
.1

.1
-1.7
.1
.4
-.4

491,3pt
492,3pt

2.4
3.2
.0

1.3
1.8
.0

1.2
1.5
.0

1.1
1.4
.0

1.2
1.4
.2

.0
.0
.0

-.1
.0
.0

.0
.0
.0

.1
.0
.0

-.1
-.2
.3

1.5
1.6

1.5
1.6

1.8
2.1

1.8
2.1

2.2
2.5

.1
.0

.3
.2

.6
.7

.5
.5

.6
.7

Primary processing
Advanced processing
Durable processing
Lumber and products
Furniture and fixtures
Stone, clay, and glass products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products
Industrial machinery and equipment
Computer and office equipment
Electrical machinery
Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous
Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal mining
Oil and gas extraction
Stone and earth minerals
Utilities
Electric
Gas
Aggregates, excluding computer
and office equipment
Total index
Manufacturing

24
25
32
33
331,2
333-6,9
34
35
357
36
37
371

1. Standard Industrial Classification.
2. Growth rates are calculated as the percentage change in the seasonally
adjusted index from the fourth quarter of the previous year to the fourth
quarter of the year specified in the column heading. For 1994, the annual
growth rates are calculated from the fourth quarter of 1993 to the third
quarter of 1994.
NOTE. Primary processing manufacturing includes textile mill products;
paper and products; industrial chemicals, synthetic materials, and fertilizers;




petroleum products; rubber and plastics products; lumber and products;
primary metals; fabricated metals; and stone, clay, and glass products.
Advanced processing manufacturing includes foods, tobacco products,
apparel products, printing and publishing, chemical products and other
agricultural chemicals, leather and products, furniture and fixtures, industrial
and commercial machinery and computer equipment, electrical machinery,
transportation equipment, instruments, and miscellaneous manufactures.

Industrial Production and Capacity Utilization: A Revision

figures, expressed in billions of 1987 dollars, cover
goods leaving the industrial sector—consumer
goods, equipment, and construction and business
supplies. Industrial materials are excluded to avoid
double counting. The 1987 gross value weights
have not been revised.

5.

Changes in Series

23

Structure

The structure of the index of industrial production,
which comprises 255 individual series, remains
essentially unchanged. One series was added, and
one was deleted beginning in 1992. First, the

Revised capacity utilization rates, by major industry group

Industry group

Difference between revised
and earlier growth rates
(percentage points)

Revised rate
(percent of capacity)

SIC
code 1

1990-91
1967-93 1988-89 1990-91 1992:Q4
1992:Q4 1993:Q4 1994:Q3
1993:Q4 1994:Q3
low
high
low
avg.
Total index

81.9

84.9

78.0

81.1

82.3

84.3

-.1

.6

.0

-.3

Manufacturing

81.2

85.2

76.6

80.1

81.4

83.6

.0

.7

-.1

-.4

82.3
80.7

89.0
83.5

77.9
76.2

82.8
79.0

85.8
79.7

88.1
81.8

-.2
.2

.5
.9

.4
-.2

.1
-.6

333-6,9
34
35
357
36

79.1
83.1
81.7
77.9
80.0
79.7
79.3
80.8
77.3
80.9
80.6
80.4

84.0
93.3
86.8
83.8
92.8
95.7
92.7
88.7
82.0
84.0
84.4
84.9

73.7
76.3
71.0
71.5
74.0
72.1
71.4
75.0
71.8
72.5
64.5
76.6

78.0
86.0
78.3
76.4
81.9
82.3
82.1
81.4
76.6
77.6
74.2
80.3

80.8
90.4
79.9
79.4
88.0
90.0
90.3
85.6
79.7
84.9
86.6
84.5

83.4
91.4
84.5
81.3
91.0
90.1
91.1
92.3
84.1
89.5
88.0
89.0

-.1
.2
-.6
-.1
-.4
.0
.0
-.8
-.2
1.1
1.1
-.8

1.1
-1.3
.7
.9
-.3
.3
.3
-.9
2.1
.4
-.2
.7

.1
-.7
-1.1
.8
-1.4
-1.6
1.9
-.7
.9
-.8
-.8
.4

.0
-.1
-1.8
1.9
-.4
-2.0
3.2
1.8
.3
.2
1.0
-1.2

37
371

75.0
75.7

372-6,9
38
39

75.7
82.1
75.5

84.4
85.1
89.1
88.4
81.2
80.1

70.2
57.6
53.3
79.4
76.7
73.5

75.6
75.9
75.8
75.3
77.4
73.4

75.6
84.4
86.4
65.5
74.7
73.8

74.7
84.1
84.6
63.5
76.5
75.9

-.3
.3
-.3
.9
.6
.6

2.5
1.0
-.1
4.1
1.5
-1.5

.8
.0
.8
1.3
2.1
-1.4

1.2
.4
2.1
1.9
2.3
-1.0

20
21
22
23
26

83.5
82.3
91.3
86.1
81.1
89.7

86.7
83.3
102.4
92.1
84.2
94.8

80.4
80.5
77.1
78.9
75.1
86.5

82.8
81.1
90.4
88.8
80.1
87.7

82.4
81.0
75.6
88.5
79.1
92.5

83.9
81.5
87.4
89.9
81.0
93.2

.0
-.3
-2.2
.4
.2
.2

.0
.2
-2.1
-1.2
-.4
.0

-.2
1.5
-2.9
-1.3
-.7
1.3

-1.0 |
1.2
-3.1 I
-2.3
-1.9
.6

27
28
29
30
31

86.3
80.0
85.5
83.9
82.0

92.3
85.9
88.5
90.5
83.8

78.7
78.9
83.7
78.4
74.7

80.2
80.9
89.1
86.1
84.1

78.7
80.7
91.8
87.5
82.4

80.0
81.6
91.1
90.6
83.6

.2
-.4
-.8
.1
-1.7

-1.5
.1
-1.2
3.5
2.2

-3.5
-.1
-1.4
3.4
.2

-4.3
-1.8
-.9
2.2
-.5

10
12
13
14

87.3
78.2
86.9
88.0
84.2

86.5
87.9
91.4
86.1
90.0

86.0
80.6
82.9
86.8
79.4

87.6
85.9
83.1
89.1
84.3

88.1
85.1
79.5
90.5
86.6

89.9
81.9
84.2
91.9
90.5

-.8
.6
.0
-1.1
1.6

.1
.0
.0
-.8
4.8

.3
-5.1
-.1
-.1
5.4

.9
-1.3
-.1
.1
7.3

491,3pt
492,3pt

86.7
88.8
82.5

92.6
94.8
85.5

83.2
86.5
68.3

86.4
88.1
80.4

86.5
87.4
82.9

87.5
88.9
82.6

.1
.2
.0

.2
.1
.3

.4
.3
.6

.3 1
-.2
1.9 I

81.6
80.9

85.0
85.3

78.3
77.0

81.1
80.3

82.1
81.4

84.2
83.5

-.2
-.1

.4
.6

.1
.2

-.3 1
-.3

Primary processing
Advanced processing
Durable manufacturing
Lumber and products
Furniture and fixtures
Stone, clay, and glass products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products
Industrial machinery and equipment ..
Computer and office equipment
Electrical machinery
Transportation equipment
Motor vehicles and parts
Autos and light trucks2
Aerospace and miscellaneous
Instruments
Miscellaneous
Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal mining
Oil and gas extraction
Stone and earth mineral
Utilities
Electric
Gas
Aggregates, excluding computer
and office equipment
Total index
Manufacturing

24
25
32
33
331,2

1. Standard Industrial Classification.
2. Series begins in 1977.
NOTE. The "high" columns refer to periods in which utilization generally peaked; the "low" columns refer to recession years in which utilization




I

I

generally bottomed out. The monthly highs and lows are specific to each
series, and all did not occur in the same month.

24

Federal Reserve Bulletin • January 1995

"Business vehicles" series, which was formerly an
individual IP series based on heavy and medium
trucks and a share of light trucks, has been separated into two individual series, one for medium
and heavy trucks and the other for business light
trucks. Each of these series is based on monthly
assemblies in units. The weight associated with
medium and heavy truck production in the index
reflects the higher prices of these vehicles relative
to prices for light trucks.
Second, the separate series for metal barrels has
been deleted because the Census Bureau eliminated
its quarterly Current Industrial Report for metal
6.

barrels. A single monthly series based on shipments of metal cans now represents all of SIC
341—metal cans and shipping containers. The
annual levels of this series have been adjusted to
reflect production of cans, barrels, and other metal
shipping containers.

New Data in the Revised Production

Indexes

The new estimates of production incorporate preliminary results of the 1992 Census of Manufactures, which in combination with estimates of out-

Value added and annual proportions in industrial production, by major industry group
Previous
Industry group

SIC
code 1

1992
IP
proportion

1993
IP
proportion

100.0

100.0

100.0

100.0

84.3

84.5

84.9

27.1
57.1

26.4
58.1

26.3
58.6

46.5
2.1
1.5
2.4
3.3
1.9
.1
1.4
5.4
8.5
2.3
6.9

46.7
1.9
1.3
2.2
3.2
1.9
.1
1.3
4.9
9.9
3.7
7.5

372-6,9
38
39

9.9
4.8
2.5
5.1
5.1
1.3

20
21
22
23
26

1992
IP
index

1993
IP
proportion

100.0

107.6

100.0

84.3

85.5

108.0

85.9

27.1
57.1

26.5
59.0

104.6
109.7

26.5
59.3

47.9
1.9
1.4
2.1
3.2
1.9
.1
1.3
4.9
11.1
4.7
8.0

46.5
2.1
1.5
2.4
3.3
1.9
.1
1.4
5.4
8.5
2.3
6.9

45.1
2.0
1.4
2.1
3.1
1.7
.1
1.4
5.0
7.9
1.7
7.3

109.3
95.8
99.1
95.3
101.9
105.1
101.2
97.6
98.8
124.6
172.8
121.9

46.0
2.0
1.4
2.1
3.1
1.8
.1
1.3
5.1
8.6
2.2
8.0

9.6
4.8
2.4
4.8
5.1
1.3

9.3
5.2
2.6
4.1
4.8
1.2

9.9
4.8
2.5
5.1
5.1
1.3

9.6
4.8
2.5
4.8
5.4
1.3

105.1
107.4
101.9
103.0
106.3
106.3

9.3
5.2
2.7
4.1
5.2
1.3

37.8
8.8
1.0
1.8
2.3
3.6

37.8
8.9
1.0
1.8
2.0
3.7

37.0
8.6
.8
1.8
2.0
3.7

37.8
8.8
1.0
1.8
2.3
3.6

40.5
9.4
1.6
1.8
2.2
3.6

106.5
107.0
96.5
103.9
95.0
108.9

39.9
9.3
1.4
1.7
2.1
3.6

27
28
29
30
31

6.5
8.8
1.3
3.2
.3

6.1
9.4
1.3
3.3
.3

6.0
9.3
1.3
3.4
.2

6.5
8.8
1.3
3.2
.3

6.8
9.9
1.4
3.5
.3

97.2
114.7
102.1
115.6
89.0

6.6
9.9
1.4
3.6
.3

10
12
13
14

8.0
.3
1.2
5.8
.7

7.4
.5
1.3
5.1
.6

7.0
.5
1.2
4.8
.6

8.0
.3
1.2
5.8
.7

6.8
.4
1.0
4.7
.6

98.9
163.8
108.2
93.2
99.0

6.5
.4
.9
4.5
.6

491,3pt
492,3pt

7.7
6.1
1.6

8.1
6.4
1.7

8.1
6.3
1.7

7.7
6.1
1.6

7.7
6.1
1.6

111.9
111.7
112.7

7.7
6.1
1.6

Manufacturing
Primary processing
Advanced processing

Transportation equipment
Motor vehicles and parts
Autos and light trucks
Aerospace and miscellaneous
Instruments
Miscellaneous
Nondurable manufacturing
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Chemicals and products
Petroleum products
Rubber and plastics products
Leather and products
Mining
Metal mining
Coal mining
Oil and gas extraction
Stone and earth minerals
Utilities
Electric
Gas
1. Standard Industrial Classification.




1987
1992
value-added value-added
proportion
proportion

1987
value-added
proportion

Total index

Durable manufacturing
Lumber and products
Furniture and fixtures
Stone, clay, and glass products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products
Industrial machinery and equipment ..
Computer and office equipment
Electrical machinery

Revised

24
25
32
33
331,2
333-6,9
34
35
357
36
37
371

Industrial Production and Capacity Utilization: A Revision

put from the 1991 Annual Survey of Manufactures
(ASM), are the most important sources of the data
used in the revised annual indexes of production in
manufacturing. After deflation with revised BEA
price indexes, these data indicate that manufacturing output increased about 4 percent from 1991 to
1992—about a percentage point more than was
previously reported.
The Bureau of the Census conducts a manufacturing census every five years and an annual survey
in each of the four years between the censuses.
The annual surveys are probability-based samples
designed to represent the entire manufacturing universe. Although they collect some of the same
industry statistics as the census, coverage in the
annual surveys erodes between economic censuses,
and successive annual estimates increasingly
understate levels of manufacturing activity. As a
result, measures of change in a series from an ASM
year to the following census year (such as 1991 to
1992) are overstated unless a correction for the
shortfall, or "drift," in the annual survey is made.
In conjunction with a revision of industrial production, capacity, and capacity utilization published in May 1993, Federal Reserve staff conducted research to assess the likely size and the
annual and industry composition of shortfalls in
ASM output estimates from 1988 to 1991.4 The
work yielded explicit ASM "drift" assumptions for
each year from 1988 to 1991, which were incorporated in that IP revision. In the aggregate, these
assumptions appear close to the Bureau of the
Census's preliminary estimate of the actual shortfall in the annual surveys.5 The final Census tabulations and research required to determine the final
annual and industry composition of the total shortfall will not be available for another year.
The revisions to the individual production
indexes also incorporate (1) monthly, quarterly, and
annual physical product data that were not available in time for inclusion in the monthly publications during the past year, particularly data for a

4. Carol Corrado and Joe Mattey, "Use of Census Data in
Benchmarking Manufacturing IP," memorandum (Board of Governors of the Federal Reserve System, Division of Research and
Statistics, April 1993).
5. David Cartwright and Brian Greenberg, "Annual Survey of
Manufactures/Census of Manufactures Drift Evaluation," paper
presented to the Census Advisory Committee of Professional Associations (September 1994).




25

portion of mining industries for 1992 and 1993;
(2) revisions to monthly input data and output
series based on monthly input measures; and
(3) new seasonal adjustment factors fitted through
June 1994 or later.
Input measures, either monthly production
worker hours or kilowatt hours of electricity consumed by industry, are used to estimate monthly
production indexes for more than half of industrial
production. The input-based series were revised in
three ways. First, the monthly data for hours of
production workers were revised by the Bureau of
Labor Statistics to reflect the benchmarking of
monthly employment data to the number of
employees covered by unemployment insurance in
March 1993. The benchmarking raised employment in manufacturing and mining. Second, the
data for consumption of electric power by industry
were revised to reflect some final figures that were
previously estimated, some SIC reclassification of
sales by utilities, and some new data on cogeneration of electricity. Third, new productivity factors
were applied to input data since 1991, based on
productivity trends derived from annual input and
output data through 1992.
Monthly physical output measures in tons, barrels, and so on have also been updated. For many
series, the monthly product data are not comprehensive and may cover only part of the output of an
industry. In such cases, the updated monthly product data are adjusted to annual levels by using more
comprehensive annual indexes of output such as
those based on the Annual Survey and Census of
Manufactures.

Revised Estimates of Industrial

Capacity

The capacity indexes, which are designed to
accompany the production indexes, have also been
revised. The new IP indexes as well as updated
capital stocks and the latest utilization rates from
various sources were key factors in updating the
capacity indexes. The latest Census survey of
manufacturing plant utilization, a major source,
provides utilization rates through only the fourth
quarter of 1992. Census estimates for 1993 and
1994 will not be available until late 1995. Nonetheless, some industries provide utilization rates as
well as output and capacity data expressed in physi-

26

Federal Reserve Bulletin • January 1995

cal units, and these data were updated for a number
of industries. The revised data cover such items as
raw steel, copper, some chemicals, the assembly of
automobiles and light trucks, and the generation of
electricity.
Updated measures of real net capital stock for
manufacturing have been estimated by the perpetual inventory method. Elements included in
these estimations are (1) time series of investment
in new equipment and structures by three-digit
manufacturing industries; (2) corresponding decompositions of the annual investment data into
twenty-eight asset types; (3) asset-type deflators
and service lives; and (4) estimates of losses in
capital efficiency due to discards and economic
decay as assets age.
Revisions to the growth of constant-dollar net
capital stocks since 1990 are the result of incorporating preliminary current-dollar expenditures on
new capital by industry from the 1992 Census of
Manufactures, revised estimates by the Bureau of
Economic Analysis of both current-dollar new investment and related price deflators by asset type
for 1990 through the third quarter of 1994, and
revised estimates for 1993 and 1994 of investment
in new plant and equipment by manufacturing
industries. Taken together, this new information led
to higher estimates of the growth of the real capital
stock for the 1992-94 period.
Weights, Linking, and

Utilization

The value-added proportions that are applied to the
individual capacity indexes when they are summed




into aggregate indexes are the same weights that
are used to combine series in the production index.
For the period since 1987, value-added proportions
for 1987 are used from 1987 to 1992 and 1992
proportions for 1992 forward. The linking of each
aggregate index to form a continuous time series
expressed as a percentage of 1987 output involves
calculating a constant, called a link factor, that
shifts the level of the 1992-based index to the level
of the 1987-based index in the January 1992 link
period. Output and capacity indexes for each aggregate industry group are independently linked, and
the link factor for each is independently calculated.
For the most part, the link factors for output and
capacity are nearly the same. When they differ,
such differences can affect the level of utilization
for the industry group. In particular, linking tends
to raise or lower utilization rates when (1) the
relative prices (and the value-added weights) of
series, such as computers, certain metals, or crude
oil, change significantly and (2) the utilization rate
of the affected component series is noticeably
different from the utilization rate of the group of
which the affected series is a part.
To avoid any distortion of utilization rates caused
by linking aggregate indexes in January 1992, the
level of linked capacity in 1992 was raised or
lowered relative to linked output so that the final
utilization rate in 1992 is restored to the appropriate, unlinked rate. The adjustment to capacity was
then distributed evenly between the appropriate
1987 and 1992 levels so that the "correct" utilization rates are shown for the base years and no
discontinuities in capacity result.
•

27

Industrial Production and Capacity Utilization
for November 1994
Released for publication December 14
Industrial production rose 0.5 percent in November
after a similar gain in October. The increase in
output was broadly based, apart from a decline in
production at utilities because of unseasonably mild

weather. Motor vehicle production, which had been
lackluster during the first few months of the new
model year, increased nearly 3 percent. The output
of business equipment other than motor vehicles
again advanced noticeably, and the production of
construction supplies posted a sizable gain. The

Industrial production indexes
Twelve-month percent change

Twelve-month percent change

Materials

Products

1989

1990

1991

1992

1993

Nondurable
manufacturing

1994

1989

1995

1990

1991

1992

1993

1994

1995

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

140

Capacity

"

"

~,—-——^^

Ratio scale, 1987 production = 100
— Manufacturing

120

-

—

Capacity

——

-

100

Production

100
Production

80
I

I

I

140
120

1

1

1

1

80
1

1

1

1

1

1

1

1

1

1

1

Percent of capacity

1

1

1

1

Percent of capacity
Manufacturing

Total industry
—

—

Utilization

w

-

-

90

90

Utilization

1

1

1

1983

1

1

1985

1

1

1987

1

1

1989

1

1

1991

1

1

1993

1
1995

80

70

1981

80

70
1
1981

1

1

1983

1

1

1985

1

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




1

1987

1

1

1989

1

1

1991

1

1

1993

1
1995

28

Federal Reserve Bulletin • January 1995

Industrial production and capacity utilization, November 1994
Industrial production, index, 1987=100
Percentage change
1994

Category

1994'
r

Aug.'

Sept.'

Oct.'

NOV.P

Aug.

Oct.'

Total

119.1

119.0

119.6

120.2

.8

-.1

.5

.7

.0

Nov. 1993
to
Nov. 1994

.6

Sept.'

NOV.P

.5

5.7

Previous estimate

119.1

119.1

119.8

Major market groups
Products, total2
Consumer goods
Business equipment
Construction supplies
Materials

116.7
113.8
148.9
108.2
122.8

116.4
113.1
149.2
108.5
123.0

116.9
113.0
151.2
109.1
123.8

117.4
113.6
152.2
109.9
124.5

.5
.4
1.4
.3
1.2

-.2
-.6
.2
.2
.2

.4
-.2
1.3
.6
.6

.5
.6
.7
.8
.6

4.6
2.7
10.1
8.8
7.4

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

120.9
127.0
114.0
100.0
118.8

120.9
127.3
113.8
100.1
117.5

121.6
128.3
114.2
99.7
116.7

122.6
129.7
114.6
99.1
114.8

.9
1.4
.4
-.2
-.1

.0
.2
-.2
.2
-1.1

.6
.8
.4
-.4
-.7

.8
1.1
.4
-.6
-1.6

6.7
8.9
4.2
.9
-1.6

Capacity utilization, percent
1993
Average,
1967-93

Low,
1982

High,
1988-89

1994

Nov.
Total

71.8

84.9

Sept.r

Oct.

Nov.?

823

84.5

84.3

84.5

84.7

2.7

84.5

81.9

Aug.r

84.3

84.6

83.8
82.1
88.3
89.7
87.8

83.6
81.9
88.2
89.8
86.7

83.9
82.1
88.5
89.4
86.0

84.4
82.5
89.2
88.9
84.6

3.0
3.5
2.0
-.2
1.2

Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities

81.2
80.7
82.3
87.3
86.7

70.0
71.4
66.8
80.6
76.2

85.2
83.5
89.0
86.5
92.6

NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.

output of materials also rose sharply, led by gains
in the production of parts for motor vehicles and
equipment. Industrial production in November, at
120.2 percent of its 1987 average, was 5.7 percent
higher than it was a year earlier. The substantial
growth in output boosted capacity utilization to
84.7 percent, its highest level since April 1989.
When analyzed by market groups, the data show
that the output of consumer goods rose 0.6 percent
in November after declines in each of the two
previous months. The production of durables other
than motor vehicles rose 1 percent, an increase
mainly reflecting a pickup in the output of appliances. The production of nondurable consumer
goods has been sluggish in recent months; on balance, the production of most major categories has
changed little. The production of business equip


81.4
79.7
85.8
87.9
87.0

2. Contains components in addition to those shown,
r Revised,
p Preliminary.

ment excluding autos and trucks rose 0.6 percent,
as the output of industrial machinery and information equipment, particularly computers, increased
further; during the past twelve months, the output
in this sector has risen 11 percent. The production
of materials advanced 0.6 percent. The most sizable gains were in durables, particularly those
related to the motor vehicle and equipment industries. Among nondurables, the production of paper
and textiles rose, while the output of chemicals was
little changed. The output of energy materials was
reduced further, in part because of the weatherrelated decline in electricity generation.
When analyzed by industry group, the data show
that manufacturing output rose 0.8 percent in
November to a level 6.7 percent higher than that of
a year ago. Gains in production were most pro-

Industrial Production and CapacityUtilization:ARevision29

nounced among durables. Factory utilization was
84.4 percent, up 3 percentage points over the past
year but still about 3A percentage point below its
recent peak in January 1989. The utilization rate in
the primary-processing industries rose 0.7 percentage point, to 89.2 percent, just a bit above the high
reached in January 1989. Lumber, petroleum, nonferrous metals, and rubber and plastics products
contributed most to the current gain; operating
rates in all of these industries are above their
1988-89 highs. Utilization for advanced-processing




industries rose 0.4 percentage point, to 82.5 percent, but remains about 1 percentage point below
its 1988-89 high. Among advanced-processing
industries, the operating rate for motor vehicles and
parts increased sharply. Utilization rates for industrial and electrical machinery rose significantly as
well. Operating rates at utilities fell 1.4 percentage
points. Operating rates at mines also declined last
month but were still a bit above those of a year
earlier.
•

30

Announcements
CHANGE IN THE DISCOUNT

RATE

The Federal Reserve Board on November 15,1994,
approved an increase in the discount rate from
4 percent to 43A percent, effective that day.
In a related move, the Federal Open Market
Committee decided that the increase in the discount
rate should be reflected fully in interest rates in
reserve markets.
These measures were taken against the background of evidence of persistent strength in
economic activity and high and rising levels of
resource utilization. In these circumstances, the
Federal Reserve views these actions as necessary to
keep inflation contained and thereby foster sustainable economic growth.
In taking the discount rate action, the Board
approved requests submitted by the boards of directors of the Federal Reserve Banks of New York,
St. Louis, Kansas City, and San Francisco. The
Board subsequently approved similar requests by
the boards of directors of the Federal Reserve
Banks of Boston, Cleveland, Richmond, Atlanta,
Minneapolis, and Dallas, effective November 16,
1994; and by the boards of directors of the Federal
Reserve Banks of Philadelphia and Chicago, effective November 17. The discount rate is the interest
rate that is charged depository institutions when
they borrow from their District Federal Reserve
banks.
AVAILABILITY OF 1995 FEE SCHEDULES
SERVICES PROVIDED BY THE FEDERAL
RESERVE BANKS

FOR

The Federal Reserve Board announced on November 22, 1994, the 1995 fee schedules for services
provided by the Federal Reserve Banks. The fees
become effective January 3, 1995.
The fee schedules apply to check, automated
clearinghouse, funds transfer and net settlement,
book-entry securities, noncash collection, and



special cash services, and for electronic connections to the Federal Reserve. The 1995 fee schedules are available from the Reserve Banks.
In 1995, total costs for priced services, including
float, a portion of special project costs, and the
private sector adjustment factor (PSAF), are projected to be $727.4 million. Total revenue is projected to be $763.4 million, resulting in net income
of $36.0 million, compared with a targeted return
on equity of $31.5 million.
At the same time, the Board has approved the
1995 PSAF for Reserve Bank priced services of
$94.7 million, a decrease of $8.9 million, or 8.6
percent, from the $103.6 million targeted in 1994.
The PSAF is an allowance for the taxes that
would have been paid and the return on capital that
would have been earned had the Federal Reserve's
priced services been provided by a private business
firm.

INCREASES IN AMOUNTS OF TRANSACTION
ACCOUNTS COVERED BY RESERVE
REQUIREMENTS, RESERVABLE
LIABILITIES,
AND CUTOFF LEVELS FOR DEPOSIT
REPORTING

The Federal Reserve Board announced on November 22, 1994, an increase from $51.9 million to
$54.0 million in the net transaction accounts to
which a 3 percent reserve requirement will apply in
1995.
The Board also changed from $4.0 million to
$4.2 million the amount of reservable liabilities of
each depository institution that is subject to a
reserve requirement of 0 percent.
Also, the Board increased the deposit cutoff levels that are used in conjunction with the exemption
level to determine the frequency and detail of
deposit reporting required for each institution from
$55.0 million to $55.4 million for nonexempt
depository institutions and from $44.8 million to
$45.1 million for exempt depository institutions.

31

DAYLIGHT

(8:30:00 a.m. eastern time to 6:30:59 p.m. eastern
time), for a total of 601 measurements per operating day. Positive balances in reserve or clearing
accounts do not offset overdrafts in any of the
calculations described below.
For further information on daylight overdrafts
and the Federal Reserve's policies, see the pamphlet, "Overview of the Federal Reserve's Payments System Risk Policy," available from any
Federal Reserve Bank.

OVERDRAFTS

Shown below are data on daylight overdrafts of
depository institutions. The data cover two-week
periods ending on the date indicated and are not
seasonally adjusted. Daylight overdrafts are negative balances in the reserve or clearing accounts
of all depository institutions at Federal Reserve
Banks. Daylight overdrafts are measured at the end
of each minute (hh:mm:59) during the standard
operating day of the Fedwire funds transfer system

Daylight overdrafts of depository institutions at Federal Reserve Banks and related fees
Millions of dollars except as noted
Biweekly average of daily figures
Date

Daylight overdraft fees
(dollars)1

MEMO

Average per-minute daylight
overdraft2

Peak daylight overdraft3

Composite peak daylight
overdraft4

1993
Oct. 27

80,076

144,874

211,581

Nov. 10
Nov. 24

78,824
79,617

137,840
143,844

203,237
215,721

Dec. 8
Dec. 22

67,646
63,765

115,256
109,192

181,468
176,177

1994
Jan. 5
Jan. 19

59,295
68,949

105,591
125,443

168,008
193,981

Feb. 2
Feb. 16

72,184
72,093

128,501
130,320

191,464
190,618

Mar. 2
Mar. 16
Mar. 30

71,756
64,533
68,204

124,206
113,606
120,015

192,453
180,466
185,443

Apr. 13
Apr. 27

699,681

63,216
38,923

112,120
64,234

175,475
127,458

May 11
May 25

799,911
871,823

44,009
46,397

71,069
78,689

143,452
154,562

June 8
June 22

759,520
745,570

45,343
42,299

75,772
72,397

150,160
142,774

July 6
July 20

718,203
762,412

72,143
69,086

147,034
143,019

Aug. 3
Aug. 17
Aug. 31

764,542
750,314
767,339

43,903
43,160
43,144
42,443
43,273

68,477
72,889
73,181

144,863
143,469
147,016

Sept. 14
Sept. 28

652,983
655,227

41,419
39,381

72,359
65,659

140,205
138,858

Oct. 12
Oct. 26

661,073
696,804

42,796
41,106

66,703
66,946

144,311
144,713

Nov. 9
Nov. 23

680,599
660,887

40,448
43,247

68,574
71,137

142,201
154,614

1. For the two-week period ending on the date shown. On April 14,1994,
the Federal Reserve began charging depository institutions a fee for daylight
overdrafts in their reserve or clearing accounts.
For each day, the chargeable overdraft is the institution's average perminute daylight overdraft for that day less a daily deductible amount. An
institution's average per-minute daylight overdraft for a given day is the sum
of its overdrafts at the end of each minute in the standard operating day of the
Fedwire funds transfer system divided by the number of such minutes. The
deductible amount for each institution is 10 percent of its risk-based capital.
The rate assessed against the chargeable overdraft is equivalent to an annual
rate of 24 basis points (0.24 percent) times the fraction of the 24-hour day in
which Fedwire operates (currently 10/24).
Two-week fees of $25 or less are waived; neither waived fees nor daylight
overdraft penalty fees are included in these totals.




2. The average per-minute daylight overdraft for a given day is the sum of
average per-minute daylight overdrafts for all institutions on that day. See
note 1 for the definition of an institution's average per-minute daylight
overdraft.
3. The peak daylight overdraft for a given day is the greatest value
reached by the sum of the daylight overdrafts for all institutions at the end of
each operating minute of that day.
4. The composite peak daylight overdraft for a given day is the sum of
each institution's largest end-of-minute daylight overdraft on that day,
regardless of the time at which it was incurred. This measure is provided for
consistency with previously released data on daylight overdrafts and will not
be routinely provided in the future.

32

Federal Reserve Bulletin • January 1995

ISSUANCE OF GUIDELINES
ESTATE
APPRAISALS

RELATED

TO REAL

On November 7, 1994, the Federal Reserve Board
and other financial institutions regulatory agencies
issued guidelines to address supervisory matters
relating to real estate appraisals and evaluations
used to support real estate related financial
transactions.
The guidelines provide guidance to examining
personnel and federally regulated institutions about
prudent appraisal and evaluation policies and practices.
The Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) requires the
agencies to adopt regulations on the preparation
and use of appraisals by federally regulated financial institutions.
These jointly issued guidelines supersede each of
the agencies' appraisal and evaluation guidelines
issued in 1992.

REGULATION

E: INTERIM

RULE

The Federal Reserve Board adopted on November 19, 1994, an interim rule to amend its Regulation E (Electronic Fund Transfers). The rule will




give financial institutions more flexibility in identifying consumer accounts on receipts at automated
teller machines (ATMs).
As amended by the interim rule, which took
effect December 1, 1994, the regulation will no
longer require that terminal receipts uniquely identify the consumer's account or card. This change
will allow institutions to truncate the number on
the receipt and help protect consumers and financial institutions against fraudulent fund withdrawals. In some fraud schemes, criminals are manufacturing counterfeit ATM cards using valid account
numbers from receipts discarded by consumers at
ATMs. They then withdraw funds by using the
personal identification number that, without the
consumer's knowledge, they have observed the
consumer enter at the ATM.

PROPOSED

ACTIONS

The Federal Reserve Board on November 29,1994,
published for public comment proposed changes to
its Regulation Z (Truth in Lending), requiring new
disclosures for reverse mortgages as set forth in the
Home Ownership and Equity Protection Act of
1994. Comments were requested by January 18,
1995.
•

33

Minutes of the
Federal Open Market Committee Meeting
Held on September 27,1994
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 27, 1994, at
9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Blinder
Mr. Broaddus
Mr. Forrestal
Mr. Jordan
Mr. Kelley
Mr. LaWare
Mr. Lindsey
Mr. Parry
Ms. Phillips
Ms. Yellen
Messrs. Hoenig, Melzer, and Moskow, and
Ms. Minehan, Alternate Members of the
Federal Open Market Committee
Messrs. Boehne, McTeer, and Stern, Presidents of
the Federal Reserve Banks of Philadelphia,
Dallas, and Minneapolis respectively
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.

Kohn, Secretary and Economist
Bernard, Deputy Secretary
Coyne, Assistant Secretary
Gillum, Assistant Secretary
Mattingly, General Counsel
Patrikis, Deputy General Counsel
Prell, Economist
Truman, Economist

Messrs. Beebe, Goodfriend, Lindsey, Mishkin,
Promisel, Simpson, Stockton, and
Ms. Tschinkel, Associate Economists
Ms. Lovett, Manager for Domestic Operations,
System Open Market Account
Mr. Fisher, Manager for Foreign Operations,
System Open Market Account




Mr. Ettin, Deputy Director, Division of Research
and Statistics, Board of Governors
Mr. Slifman, Associate Director, Division of
Research and Statistics, Board of Governors
Mr. Madigan, Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Hooper, Assistant Director, Division of
International Finance, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Ms. Browne, Messrs. Davis, Dewald, Lang,
Rolnick, Rosenblum, and Vander Wilt,
Senior Vice Presidents, Federal Reserve
Banks of Boston, Kansas City, St. Louis,
Philadelphia, Minneapolis, Dallas, and
Chicago respectively
Mr. Sniderman, Vice President, Federal Reserve
Bank of Cleveland
Ms. Krieger, Assistant Vice President, Federal
Reserve Bank of New York
Secretary's Note:
Advice had been received of the election of
Michael H. Moskow by the boards of directors of the
Federal Reserve Banks of Cleveland and Chicago as
alternate member of the Federal Open Market Committee for the period September 1, 1994, through December 31, 1994, and that he had executed his oath of office.

By unanimous vote, the minutes of the meeting
of the Federal Open Market Committee held on
August 16, 1994, were approved.
By unanimous vote, the Committee elected
Frederic S. Mishkin as Associate Economist from
the Federal Reserve Bank of New York, to serve
until the next election at the first meeting of the
Committee after December 31,1994, with the understanding that in the event of the discontinuance of
his official connection with the Federal Reserve
Bank of New York he would cease to have any

34

Federal Reserve Bulletin • January 1995

official connection with the Federal Open Market
Committee.
The Manager for Foreign Operations reported on
developments in foreign exchange markets during
the period since the August meeting. There were no
System open market transactions in foreign currencies during this period, and thus no vote was
required of the Committee.
The Manager for Domestic Operations reported
on developments in domestic financial markets and
on System open market transactions in government
securities and federal agency obligations during the
period August 16, 1994, through September 26,
1994. By unanimous vote, the Committee ratified
these transactions.
The Committee then turned to a discussion of the
economic and financial outlook and the implementation of monetary policy over the intermeeting
period ahead. A summary of the economic and
financial information available at the time of the
meeting and of the Committee's discussion is
provided below, followed by the domestic policy
directive that was approved by the Committee and
issued to the Federal Reserve Bank of New York.
The information reviewed at this meeting suggested that the pace of economic expansion
remained substantial, though it appeared to have
moderated slightly in recent months. Final sales,
especially of consumer goods, had firmed during
the summer months while inventory investment
apparently had slowed after a second-quarter surge.
Manufacturing activity, bolstered by a pickup in
production of motor vehicles, had been rising
briskly, and the trend of payroll hiring remained
strong. Increases in broad indexes of consumer and
producer prices had been somewhat larger in recent
months, and prices of materials had remained under
considerable upward pressure.
Nonfarm payroll employment advanced appreciably further in August, though at a somewhat less
rapid rate than the average pace in earlier months
of the year. The slowdown in hiring in August was
concentrated in retail trade, where employment was
little changed after large gains in the two preceding
months, and in construction, where it fell slightly.
In manufacturing, employment was up considerably after essentially no change in July; while
much of the strength was related to a pickup in
the production of motor vehicles, hiring was up in
a number of other industries as well. The average



workweek of production or nonsupervisory workers declined in August from July's relatively high
level, but for the two months combined the average
hours worked was well above the second-quarter
level. Both household employment and the labor
force surged in August, and the civilian unemployment rate was unchanged at 6.1 percent.
Industrial production rose sharply in August
after sizable gains in previous months. The August
advance reflected a large increase in manufacturing
output that was partly offset by declines in mining
production and electricity generation; much of the
strength in manufacturing resulted from a large rise
in the output of motor vehicles stemming from
unusually rapid retooling for the new model year.
Elsewhere in manufacturing, production of office
and computing equipment continued to expand
briskly, and output of industrial equipment was up
significantly. Total utilization of industrial capacity
rose further in August from already high levels.
Consumer spending remained on a solid upward
trend. Retail sales rose considerably in August after
holding steady in July. Sales of goods other than
motor vehicles registered sizable increases in both
July and August. Sales of motor vehicles, which
had been constrained in recent months by shortages
of popular domestic models, rebounded in August.
Housing starts in July and August averaged slightly
less than their second-quarter rate. Single-family
starts had leveled Off in recent months after declining earlier in the year; multifamily starts, though
erratic from month to month, had been drifting
higher.
The limited data available for the third quarter
suggested that growth of real business fixed investment, though still strong, continued to slow from
the very rapid pace of 1993. Shipments of nondefense capital goods declined in July, offsetting
much of a large June advance. However, orders for
nondefense capital goods were up significantly on
balance in June and July, pointing to continued
brisk expansion in business spending on durable
equipment. Nonresidential construction activity
increased further in July, and permits for such
construction remained on a mild uptrend.
The growth in business inventories slowed markedly in July after surging in the second quarter. The
July deceleration reflected a sizable reduction in
retail inventories, principally automotive and general merchandise stocks. For the retail sector as a

Minutes of the Federal Open Market Committee

whole, the inventory-to-sales ratio declined sharply
in July to about the middle of the range seen in
recent years. At the wholesale level, inventories
increased substantially, both in July and over the
second quarter, and the overall inventory-to-sales
ratio edged up in July toward the middle of the
range for this ratio in recent years. Inventory
investment also picked up in manufacturing, where
much of the July accumulation represented stocks
of materials, supplies, and work-in-progress. The
run-up in stocks was accompanied by a drop in
factory shipments, and as a result, the inventoryshipments ratio recorded an unusually steep rise.
The nominal deficit on U.S. trade in goods and
services widened substantially further in July after
a large increase in the second quarter. The value of
exports of goods and services slipped in July from
a relatively high level in June, while the value of
imports in July changed little from June. Economic
activity in all of the foreign G-7 industrial countries except Japan expanded rapidly in the second
quarter, and available indicators suggested that
strong growth continued on average in the third
quarter. In Japan, activity contracted in the second
quarter, reflecting weakness in consumption and
business investment; the limited data available for
the third quarter suggested that growth in that country might have resumed.
Consumer prices rose a little faster in July and
August than their average pace for the first half of
the year. The recent pickup in consumer inflation
reflected large increases in energy prices as well as
somewhat higher food prices; excluding the food
and energy components, consumer price advances
had remained moderate. Prices rose briskly at the
producer level in July and August as prices of
finished energy goods surged and prices of finished
foods turned up after declining over the first half of
the year. For items other than finished foods and
energy, the increase over the July-August period
was a little faster than in the first half of the year.
Recent data indicated little change in wage trends.
Average hourly earnings of production or nonsupervisory workers rose in August at about the rate
observed over the previous twelve months.
At its meeting on August 16, 1994, the Committee adopted a directive that called for increasing
somewhat the degree of pressure on reserve positions, taking account of a possible rise in the discount rate. The Committee did not include in the



35

directive any presumption about further adjustments to policy during the intermeeting period.
Accordingly, the directive stated 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
would be acceptable during the intermeeting
period. The reserve conditions associated with this
directive were expected to be consistent with modest growth in M2 and M3 over coming months.
Immediately after the conclusion of the August
meeting, the Board of Governors approved a
V^-percentage-point increase in the discount rate to
a level of 4 percent. The Committee permitted the
full amount of the increase to pass through to
interest rates in the market for reserves, and the
federal funds rate rose about Vi percentage point to
an average of around 43A percent. As indicated in
an announcement released on the day of the meeting, the Committee did not anticipate that further
policy tightening was likely to be needed for a
time, given the substantial nature of the policy
move. Accordingly, open market operations over
the intermeeting period were conducted with a
view to maintaining the less accommodative
degree of pressure on reserve positions implemented just after the August meeting, and the federal funds rate remained near 43A percent. In accordance with the usual cresting of seasonal demands
for discount credit at this time of the year, adjustment plus seasonal borrowing rose over much of
the period but began to edge lower subsequently.
Borrowing averaged near anticipated levels.
Most market interest rates were up somewhat on
balance since the August meeting. Short-term rates,
which had risen before the meeting in anticipation
of a smaller policy move, increased modestly further after the Federal Reserve tightened and then
changed little over the next several weeks. Subsequently, however, these rates began to move higher
in response to incoming economic data that were
seen as pointing to the potential for greater inflation in the future and hence to further firming in
reserve conditions. Long-term yields fell after the
policy tightening, but these declines were erased
within a few days, and rates later rose noticeably
further in response to the incoming data. Most
major indexes of equity prices were up on balance

36

Federal Reserve Bulletin • January 1995

over the intermeeting period despite price declines
near the end of the period.
The trade-weighted value of the dollar in terms
of the other G-10 currencies depreciated somewhat
over the intermeeting period. Bearish sentiment
toward the dollar in the foreign exchange markets
appeared to be influenced importantly by continuing concerns about inflation trends in the United
States compared with those in other major industrial countries.
M2 and M3 declined in August after expanding
moderately in July, and data available for September pointed to little further change in either aggregate. The August decline in M2 reflected weakness
in most of its liquid components that may have
been induced to a considerable extent by the rise,
which began early this year, in the opportunity
costs of holding such accounts. The decline in M3
was associated with a sharp drop in institution-only
money funds in response to the increase in market
yields, but the weakness in this broader aggregate
was limited by the brisk issuance of largedenomination time deposits as banks continued to
rely on managed liabilities to fund credit growth.
For the year through August, M2 and M3 grew at
rates slightly above the lower ends of their respective ranges for 1994. Total domestic nonflnancial
debt continued to expand at a moderate rate in
recent months.
The staff forecast prepared for this meeting suggested that growth in economic activity would slow
appreciably over the next several quarters, dropping briefly below the rate of increase in the
economy's potential output. According to a staff
analysis, the economy already was operating at its
long-run capacity, and the forecast assumed that
monetary policy would not accommodate any continuing tendency for aggregate demand to expand
at a pace that could foster sustained higher inflation. Growth in consumer expenditures was projected to moderate next year as spending on consumer durables lost some momentum in the context
of diminishing pent-up demands, the rise in borrowing costs, and smaller gains in income. After an
extended period of very rapid increases, growth in
business fixed investment also was expected to
slow appreciably, partly reflecting less favorable
financial conditions and partly the slower pace of
output growth. Homebuilding would be damped by
higher financing costs, though activity in this sector




was expected to remain well above the depressed
levels reached in recent years. With the economy
operating close to its long-run potential, no further
reduction in the core rate of inflation was anticipated over the forecast horizon. Consumer price
inflation was projected to be elevated over the near
term—by some pass-through of the ongoing run-up
in materials prices and by higher import prices—
before settling down again.
In the Committee's discussion of current and
prospective economic conditions, members commented on continuing indications of a robust
expansion in business activity, with output near
maximum sustainable levels. They still viewed significant slowing in the pace of the expansion as a
reasonable expectation, though they acknowledged
that signs of such slowing currently were limited
and in particular that the most recent data indicated
a greater probability of somewhat more strength in
aggregate demand than had appeared to be developing during the late spring and early summer. The
policy tightening actions implemented earlier in the
year seemed to have elicited only a mild response
thus far in interest-sensitive sectors of the economy. However, much of the retarding effects of
those actions, including the recent sizable tightening in August, probably had not yet been felt in the
economy. In light of the strength of aggregate
demand and lags in the effects of policy, the risks
of some rise in inflation rates probably had
increased. How large this rise might be or when it
might be reversed was very difficult to predict at
this point. However, indications of a persisting
pickup in inflation would be a matter of considerable concern, and further developments would need
to be monitored with special care in light of the
Committee's longstanding commitment to containing inflation and moving over time toward price
stability to foster the maximum, sustainable performance of the economy.
In their review of developments across the
nation, members commented on high levels of business activity in many regions and many of them
referred to increasing reports of scarcities of specific types of labor resources. After softening earlier in many areas, business conditions appeared to
have strengthened in a number of regions during
recent weeks while displaying little change or continued moderate growth elsewhere. Robust expansion in manufacturing activity, especially in the

Minutes of the Federal Open Market Committee

motor vehicle and related industries, was a notable
feature of recent business developments. On the
financial side, the overall expansion of credit had
remained moderate, but many members stressed
the ready availability of financing from increasingly aggressive bank lenders. Moreover, despite
higher interest rates, capital markets were providing continued support to a wide variety of borrowers. The constraints on the availability of credit and
the reluctance of many borrowers to incur new
debt, factors that had tended to retard the recovery
during its earlier stages, had given way to a financial climate that might even be providing an extra
impetus to spending.
With regard to the outlook for activity in key
sectors of the economy, consumer spending had
been more buoyant than expected over recent
months and members saw such spending as likely
to be reasonably well maintained. Some moderation in its growth over the quarters ahead seemed
likely, however, as pent-up demands increasingly
were satisfied and housing-related purchases of
consumer durables tended to moderate. Members
cited anecdotal evidence of fairly brisk retail sales
in many areas recently and associated optimism
among retail business contacts. Recent survey results indicated that consumer sentiment remained
favorable. Sales of motor vehicles were expected
to continue the improvement noted in August as
supply shortages were met through increased
production.
Business fixed investment was viewed as likely
to rise substantially further over the next several
quarters, but the rate of growth had been moderating this year and probably would diminish further
in conjunction with the projected slowing in overall
demand. The expansion in expenditures for business equipment had slowed considerably this year
from an extremely rapid rate in 1993 and could be
expected to moderate somewhat further. At the
same time, nonresidential construction was slowly
trending higher as firms facing capacity constraints
sought to expand their production facilities.
The prospects for inventory investment remained
a key uncertainty in the outlook in that developments in this sector could well have an important
bearing on the extent of the anticipated slowing in
the expansion of overall economic activity over the
next few quarters. The surge in inventory investment in the second quarter clearly was unsustain-




37

able, but some members questioned whether the
expected cutback in inventory accumulation would
be sizable over the near term. Continuing strength
in new orders and anecdotal reports did not point to
a desire to reduce inventories and suggested that
much of the second-quarter buildup probably had
been intended. Indeed, in the context of increasing
backlogs and lagging deliveries that pointed to
growing capacity constraints, many business firms
might seek to build "safety stocks" to avoid supply
disruptions that would interfere with production
schedules. At the same time, the trend toward "just
in time" inventory management—even if temporarily arrested as safety stocks were increased—
would help to limit a potentially excessive buildup
in inventories that would present a threat later to
the sustainability of the expansion.
Members cited anecdotal evidence tending to
support statistical indications of some weakening
in housing markets, and they generally anticipated
that the rise that had occurred in mortgage interest
rates would exert a further damping effect on housing activity over the year ahead. However, against
the background of the still relatively favorable
affordability of housing and the likelihood of some
further pent-up demand, only a moderate drop in
overall homebuilding activity seemed likely.
A number of members expressed the view that
the external sector was likely to contribute to the
expansion of domestic economic activity in light of
the depreciation in the value of the dollar and
indications of stronger economic growth in foreign
industrial nations. However, relatively rapid expansion in foreign economic activity would add to
pressures on world commodity prices at least for a
time. One member expressed concern about the
potential, albeit uncertain, effects on the exchange
value of the dollar of developments unrelated to the
conduct of monetary policy, such as the ongoing
trade negotiations with Japan and forthcoming
elections in Germany.
In their discussion of various factors bearing on
the outlook for inflation, members noted that some
measures of inflation had picked up recently and
that many private forecasters anticipated higher
inflation in 1995 than in 1994. The worsening of
inflation could perhaps be viewed as reflecting
increasing capacity constraints in the face of recent
growth in overall demand at a pace above the
economy's long-run potential. From this perspec-

38

Federal Reserve Bulletin • January 1995

tive, the future path of inflation would depend
importantly on the extent to which the expansion in
overall activity would in fact abate from an unsustainable pace. Some members expressed particular
concern that if above-trend growth did not moderate soon, existing inflationary pressures and inflationary expectations would quickly become more
pronounced and inflation would gather momentum.
Thus far, however, price pressures remained concentrated in the early stages of production. As
evidenced by broad measures of prices and anecdotal information obtained from numerous business contacts, the pass-through of the higher costs
of materials to the prices of final goods had been
muted in what business executives continued to
describe as highly competitive markets. The ability
of business firms to hold down price increases in
turn reflected to a marked degree their successful
efforts to control unit costs through ongoing gains
in productivity. Moreover, with profit margins currently at high levels, business firms facing competitive market conditions had some leeway to absorb
rising costs. Increasingly tight labor markets in
many parts of the country had not resulted in
higher overall wage inflation, but members reported some upward pressure on the wages of
certain categories of workers in strong demand.
One member expressed the view that continued
moderation in price and wage increases also might
reflect in some measure a shift in price and wagesetting behavior attributable to the credibility of the
Committee's anti-inflationary stance in recent
years. A number of members commented that the
sluggish-to-moderate growth of a wide variety of
money and credit measures provided some assurance that, to date, monetary policy had not laid the
basis for a sustained upturn in inflation. Nonetheless, the members concluded that the potential for
additional inflation remained substantial and, from
a monetary policy standpoint, rendered especially
urgent the ongoing assessment of inflation trends.
In the Committee's discussion of policy for the
period ahead, most of the members agreed on the
desirability of maintaining a steady policy course,
at least for the near term. In light of the appreciable
tightening of policy approved in August, the members had anticipated that no further policy change
was likely to be required for a period, and at this
juncture they generally continued to feel that the
recent evidence did not warrant an immediate




further tightening. Even so, the ongoing inflow of
information on the performance of the economy
continued to indicate a significant potential for
higher inflation down the road, and for many
members this suggested that additional monetary
restraint could well be needed at some time. A key
uncertainty in this regard related to the restraining
effects of the policy moves implemented earlier
this year; these actions appeared to have exerted
less restraint to date than had been anticipated, but
appreciable lagged effects from those actions—
indeed, perhaps a large part of those effects—could
still be expected. At this time, it was extremely
difficult to evaluate whether the earlier tightening
moves were exerting a lesser effect than usual or it
simply was more delayed, or whether the members
might have misjudged the underlying strength of
the expansion. In the view of many members, the
information that would become available during
the intermeeting period should provide a firmer
basis forjudging the course of the economy and the
risks of greater inflation. Should incoming information point to a greater likelihood that price pressures would intensify, the Committee would need
to act promptly and forcefully to avert an upward
ratcheting of inflationary expectations and actual
inflation that would be difficult to reverse. Consequently, while views differed with regard to the
likely need for some policy tightening over the
weeks immediately ahead, the members generally
supported a shift from the symmetry in the August
directive to asymmetry toward restraint. Some
members indicated that they could accept an asymmetric directive, but they expressed misgivings
about the use of such an instruction in the directive
because they felt it was subject to misunderstanding in financial markets and could add to uncertainty about Committee intentions. One member
favored an immediate move to somewhat greater
reserve restraint because the available evidence in
his view already suggested an upturn in inflationary expectations and the prospect of a significant
rise in inflation.
In the course of the Committee's discussion, a
number of members commented that the behavior
of the monetary and credit aggregates should be
taken into account in the evaluation of the current
stance of monetary policy. While various money
and related measures had for many years proved
unreliable to a greater or lesser extent in gauging

Minutes of the Federal Open Market Committee

economic prospects, the weak growth in a wide
array of these measures could not be entirely disregarded as a possible indicator of the degree of
monetary restraint and argued for caution in implementing any further policy tightening. One member noted, however, that the slow growth in the
narrow measures of reserves and money followed
an extended period of rapid expansion and their
recent weakness might not be indicative of constrained liquidity at this point. Moreover, the ready
availability of bank credit and the receptivity of
financial markets more generally argued that many
borrowers, including small and medium-sized businesses, currently had access to ample financing.
At the conclusion of the Committee's discussion,
all but one of the members indicated that they
could support a directive that called for maintaining the existing degree of pressure on reserve positions and that included a bias toward the possible
firming of reserve conditions 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 somewhat greater reserve restraint would be acceptable
or slightly lesser reserve restraint might be acceptable during the intermeeting period. The reserve
conditions contemplated at this meeting were
expected to be consistent with modest growth in
the broader monetary aggregates 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 the pace of economic expansion, though perhaps
moderating slightly in recent months, remains substantial. Nonfarm payroll employment advanced appreciably
further in August, and the civilian unemployment rate
was unchanged at 6.1 percent. Reflecting strength in
motor vehicles, industrial production rose sharply in
August after posting sizable gains in other recent
months, and capacity utilization moved up further from
already high levels. Retail sales were up considerably in
August, boosted by a rebound in sales of durable goods,
including motor vehicles. Housing starts rose in August
but were unchanged from their second-quarter level.




39

Orders for nondefense capital goods point to a continued
strong expansion in spending on business equipment;
permits for nonresidential construction remain on a mild
uptrend. Inventory accumulation appears to have moderated recently after surging in the second quarter. The
nominal deficit on U.S. trade in goods and services
widened in July from its second-quarter average. Prices
of materials have remained under upward pressure, and
increases in broad indexes of consumer and producer
prices have been somewhat larger in recent months.
On August 16, 1994, the Board of Governors approved an increase in the discount rate from 3l/2 to
4 percent, and the Committee agreed that this increase
would be allowed to show through completely to interest
rates in reserve markets. Most market interest rates are
up somewhat on balance since the August meeting. The
trade-weighted value of the dollar in terms of the other
G-10 currencies depreciated somewhat over the intermeeting period.
M2 and M3 declined in August after expanding moderately in July; for the year through August, M2 and M3
grew at rates slightly above the bottom of their ranges
for 1994. Total domestic nonfinancial debt has continued
to expand at a moderate rate in recent months.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at its meeting in
July reaffirmed the ranges it had established in February
for growth of M2 and M3 of 1 to 5 percent and 0 to
4 percent respectively, measured from the fourth quarter
of 1993 to the fourth quarter of 1994. The Committee
anticipated that developments contributing to unusual
velocity increases could persist during the year and that
money growth within these ranges would be consistent
with its broad policy objectives. The monitoring range
for growth of total domestic nonfinancial debt was maintained at 4 to 8 percent for the year. For 1995, the
Committee agreed on tentative ranges for monetary
growth, measured from the fourth quarter of 1994 to the
fourth quarter of 1995, of 1 to 5 percent for M2 and 0 to
4 percent for M3. The Committee provisionally set the
associated monitoring range for growth of domestic nonfinancial debt at 3 to 7 percent for 1995. 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, somewhat greater reserve restraint would 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.

40

Federal Reserve Bulletin • January 1995

Votes for this action: Messrs. Greenspan, McDonough, Blinder, Forrestal, Jordan, Kelley, LaWare,
Lindsey, and Parry and Mses. Phillips and Yellen.
Vote against this action: Mr. Broaddus.

Mr. Broaddus dissented because he believed that
a prompt move to somewhat greater monetary
restraint was needed at this point. In his view,
the current stance of monetary policy was overly
accommodative in light of the signs of increasing
price pressures and rising inflationary expectations
that were associated with the continuing strength of
the economic expansion and high levels of capacity
utilization. In this situation, a delay in implement-




ing some monetary policy tightening would incur
a substantial risk of a further increase in inflationary expectations and could make it more costly
to achieve the Committee's longer-term antiinflationary goals.
It was agreed that the next meeting of the Committee would be held on Tuesday, November 15,
1994.
The meeting adjourned at 1:00 p.m.
Donald L. Kohn
Secretary

41

Legal Developments
FINAL RULE—AMENDMENT

TO REGULATION A

The Board of Governors is amending 12 C.F.R. Part 201,
its Regulation A (Extensions of Credit by Federal Reserve
Banks; Change in Discount Rate), to reflect its approval of
an increase in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the
Boards of Directors of the twelve Federal Reserve Banks.
Effective November 18, 1994, 12 C.F.R. Part 201 is
amended as follows. The rate changes for adjustment credit
were effective on the dates specified in 12 C.F.R. 201.51.

Part 201—Extensions of Credit by Federal Reserve
Banks (Regulation A)
1. The authority citation for 12 C.F.R. Part 201 continues to
read as follows:
Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d,
348 et seq., 357, 374, 374a and 461.
2. Section 201.51 is revised to read as follows:

Section 201.51—Adjustment credit for depository
institutions.
The rates for adjustment credit provided to depository institutions under section 201.3(a) are:
Federal Reserve Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Adanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Rate
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75

Effective
November
November
November
November
November
November
November
November
November
November
November
November

16,
15,
17,
16,
16,
16,
17,
15,
16,
15,
16,
15,

1994
1994
1994
1994
1994
1994
1994
1994
1994
1994
1994
1994

3. Section 201.52(b) is revised to read as follows:

Section 201.52—Extended credit for depository
institutions.




(b) Extended credit. For extended credit to depository institutions under section 201.3(c), for credit outstanding for
more than 30 days, a flexible rate will be charged that takes
into account rates on market sources of funds, but in no case
will the rate charged be less than the rate for adjustment
credit, as set out in section 201.51, plus one-half percentage
point. At the discretion of the Federal Reserve Bank, the
30-day time period may be shortened.

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 $51.9 million to $54.0 million of net transaction
accounts. This adjustment is known as the low reserve
tranche adjustment. The Board has increased from
$4.0 million to $4.2 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)(l 1)(B) of the Federal Reserve Act, and the
adjustment is known as the reservable liabilities exemption
adjustment. The Board is also increasing the deposit cutoff
levels that are used in conjunction with the reservable
liabilities exemption to determine the frequency of deposit
reporting from $55.0 million to $55.4 million for nonexempt depository institutions and from $44.8 million to
$45.1 million for exempt institutions. (Nonexempt institutions are those with total reservable liabilities exceeding
$4.2 million while exempt institutions are those with total
reservable liabilities not exceeding $4.2 million.) Thus nonexempt institutions with total deposits of $55.4 million or
more will be required to report weekly while nonexempt
institutions with total deposits less than $55.4 million may
report quarterly. Similarly, exempt institutions with total
deposits of $45.1 million or more will be required to report
quarterly while exempt institutions with total deposits less
than $45.1 million may report annually.
Effective December 20, 1994, 12 C.F.R. Part 204 is
amended as follows. For depository institutions that report
weekly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment will be effective on the
reserve computation period that begins Tuesday, December 20,1994, and on the corresponding reserve maintenance

42 Federal Reserve Bulletin • January 1995

period that begins Thursday, December 22, 1994. For institutions that report quarterly, the low reserve tranche adjustment and the reservable liabilities exemption adjustment
will be effective on the reserve computation period that
begins Tuesday, December 20,1994, and on the corresponding reserve maintenance period that begins Thursday, January 19, 1995. For all depository institutions, the deposit
cutoff level will be used to screen institutions in the second
quarter of 1995 to determine the reporting frequency for the
twelve-month period that begins in September 1995.

Part 204—Reserve Requirements of Depository
Institutions (Regulation D)
1. The authority citation for Part 204 continues to read as
follows:
Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611,
and 3105.
2. In section 204.9 paragraph (a) is revised to read as
follows:

munity Development and Regulatory Improvements Act of
1994, which contains a number of measures to reduce the
burden of federal regulation on depository institutions.
Effective November 10, 1994, 12 C.F.R. Part 208 is
amended to read as follows:

Part 208—Membership of State Banking Institutions
in the Federal Reserve System (Regulation H)
1. The authority citation for Part 208 is revised to read as
follows:
Authority: 12 U.S.C. 36, 248(a), 248(c), 321-338a, 371d,
461, 481-486, 601, 611, 1814, 1823(j), 1828(o), 1831o,
1831p-l, 3105, 3310, 3331-3351 and 3906-3909; 15 U.S.C.
78b, 781(b), 781(g), 781(j), 78o-4(c)(5), 78q, 78q-l and
78w; 31 U.S.C. 5318.
2. Section 208.10 is amended as follows:
a. The section heading is revised;
b. Paragraphs (a) and (b) are removed; and
c. The paragraph designation and heading for paragraph
(c) are removed.

Section 204.9—Reserve requirement ratios.
The revised Section heading reads as follows:
(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 accounts
$0 to $54.0 million
Over $54.0 million
Nonpersonal time deposits
Eurocurrency liabilities

1

Reserve Requirement

3 percent of amount
$1,620,000 plus 10 percent of
amount over $54.0 million
0 percent
0 percent

1. Before deducting 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 transactions accounts subject to the low reserve tranche in
paragraph (a)(1) of this section not in excess of $4.2
million determined in accordance with section 204.3
(a)(3) of this part.

FINAL RULE—AMENDMENT

TO REGULATION H

The Board of Governors is amending 12 C.F.R. Part 208,
its Regulation H (Membership of State Banking Institutions
in the Federal Reserve System), to remove the requirement
that a state member bank publish its reports of condition.
The amendment implements section 308 of the Riegle Com


Section 208.10—Waiver of reports of affiliates.
3. In Subpart A, footnotes 11 through 13 are redesignated as
footnotes 9 through 11, respectively.
4. Section 208.17 is amended by removing the undesignated
text following paragraph (a)(2).

ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT

Orders Issued Under Section 3 of the Bank Holding
Company Act
Abrams Centre Bancshares, Inc.,
Dallas, Texas
Order Approving the Formation of a Bank Holding
Company
Abrams Centre Bancshares, Inc., Dallas, Texas ("Abrams
Centre"), has applied under section 3 of the Bank Holding
Company Act ("BHC Act") (12 U.S.C. § 1842) to acquire
Abrams Centre National Bank, Dallas, Texas ("Bank"), and
thereby become a bank holding company.1
1. Abrams Centre will acquire Bank by merging Bank with and into New
Abrams Bank, Dallas, Texas, an interim, wholly owned subsidiary of Abrams
Centre.

Legal Developments

Notice of the application, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 12,927 (1994)). 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.
Abrams Centre is a nonoperating company formed for
the purpose of acquiring Bank. Bank is the 455th largest
commercial banking organization in Texas, controlling deposits of $41.3 million, representing less than 1 percent of
total deposits in commercial banks in the state.2 Based on
all the facts of record, the Board believes that consummation of the proposal would not result in any significantly
adverse effects on competition or the concentration of banking resources in any relevant banking market. Accordingly,
the Board concludes that competitive considerations are
consistent with approval of this proposal.
The Board has received comments from an individual
("Protestant") about the acquisition debt proposed to be
incurred in this case. Protestant also alleges that management officials have improperly borrowed from Bank, and
that these loans have prevented Bank from adequately meeting the credit needs of its communities.3 The Board has
carefully reviewed these comments in light of all facts of
record, including responses by Bank and information from
Bank's primary regulator, the Office of the Comptroller of
the Currency ("OCC").
The Board notes that Bank is currently in compliance
with all applicable capital requirements, and that Abrams
Centre would be in compliance with all applicable capital
requirements upon consummation of this proposal. Abrams
Centre's projections for retiring the debt to be assumed as
part of this transaction are consistent with the Board's
policy relating to the assumption of debt by small bank
holding companies in formation.4
The record in this case indicates that Bank has appropriate procedures in place to ensure compliance with Federal
laws and regulations, including regulations relating to loans
to officers and directors. Recent examinations of Bank by
the OCC indicate that Bank is well managed and that Bank
is in compliance with applicable laws and regulations. Additionally, these examinations indicate that Bank has not
violated any applicable law or regulation regarding lending

2. State data are as of June 30, 1993.
3. Protestant also challenges the competence and experience of two proposed directors on the basis of civil actions filed over a twenty-year period
against these individuals as a result of their personal business dealings. There
is no evidence in the record of this case that indicates that the involvement of
these individuals in these actions, almost all of which have been resolved,
reflects adversely on their competence, experience or integrity as directors of
Abrams Centre.
Additionally, Protestant asserts that Abrams Centre did not provide notice
of this proposal in the community in which Protestant resides. The record in
this case indicates that in addition to publishing notice of this proposal in the
Federal Register, the local newspaper publication requirements set forth in
the Board's regulations were properly followed by the applicant in this case.
See 12 C.F.R. 262.3(b).
4. See 12 C.F.R. Part 225, Appendix C.




43

to officers and directors.5 For these reasons, and based on all
the facts of record, the Board concludes that the financial
and managerial resources and future prospects of Abrams
Centre and Bank, and other supervisory factors the Board
must consider under section 3 of the BHC Act, are consistent with approval of this proposal.
In acting on 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 carefully reviewed the CRA performance
record of Bank, the comments received on this application,
Bank's response 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 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.8 The Board notes that Bank received a "satisfactory"
rating from the OCC at its most recent examination for CRA
performance as of August 1,1994. Moreover, therecordin this
case indicates that the loans Bank has extended to insiders,
which account for an insignificant amount of Bank's total loan
portfolio,9 have not hindered Bank's efforts to meet the credit
needs of its community.
For the reasons discussed above, the Board concludes, on
the basis of all the facts of record, that considerations
relating to the convenience and needs of the community to
be served, including Bank's record of performance under
the CRA, are consistent with approval of this proposal.
Based on the foregoing and other facts of record, the
Board has determined that the application should be, and

5. The OCC has been apprised of the allegations made by Protestant
pertaining to excessive or inappropriate lending to Bank officers and directors, and has indicated to the Board that there is no evidence to substantiate
these allegations.
6. 12 U.S.C. § 2903.
7. 54 Federal Register 13,742 (1989).
8. Id. at 13,745.
9. Loans to officers, directors, and shareholders constituted approximately
1 percent of Bank's average total loans as of June 30, 1994.

44 Federal Reserve Bulletin • January 1995

hereby is, approved.10 The Board's approval is expressly
conditioned on compliance with all the commitments
made by Abrams Centre in connection with this application. 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.
This transaction shall not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Federal Reserve Bank of Dallas, acting pursuant to
delegated authority.
By order of the Board of Governors, effective November 15, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

Regions Financial Corporation
Birmingham, Alabama
Order Approving Acquisition of a Bank
Regions Financial Corporation, Birmingham, Alabama
("Regions"), 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 Union Bank & Trust Company, Montgomery,
Alabama ("Bank").
Notice of the application, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 42,048 (1994)). 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.

10. The Board has carefully considered Protestant's request for a public
hearing or meeting in connection with this application. Section 3(b) of the
BHC Act does not require the Board 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 OCC 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). In the Board's view, all interested parties
have had ample opportunity to submit their views, and written submissions
have been received. Based on 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, and the request
for a public hearing or meeting on this application are denied.




Regions is the largest commercial banking organization
in Alabama, controlling deposits of approximately $6.8 billion, representing approximately 18 percent of the total
deposits in commercial banking organizations in the state.1
Bank is the eighth largest commercial banking organization in the state, controlling deposits of approximately
$324.1 million, representing less than 1 percent of total
deposits in commercial banks in the state. Upon consummation of this proposal, Regions would control deposits
of approximately $7.1 billion, representing 18.9 percent
of total deposits in commercial banking organizations in
the state.
Regions and Bank compete directly in the Montgomery,
Alabama, banking market.2 Regions is the largest commercial banking organization in the market, controlling deposits
of $906.2 million, representing 28.7 percent of total deposits in commercial banking organizations in the market.3
Bank is the fourth largest commercial banking organization
in the market, controlling deposits of $324.1 million, representing 10.3 percent of total deposits in commercial banking organizations in the market. Upon consummation of this
proposal, Regions would control deposits of $1.2 billion,
representing 39 percent of total deposits in commercial
banking organizations in the market. The HerfindahlHirschman Index ("HHI") would increase by 588 points to
1987.4
A number of factors indicate that the increase in the
concentration level in the Montgomery banking market, as
measured by the HHI, tends to overstate the competitive
effect of this proposal. For example, 15 commercial banking
organizations, including the eight largest banking organizations in Alabama, would remain as competitors in the
market.5 Moreover, the Montgomery banking market has a
number of features that make it attractive for entry.6 Two

1. All banking data are as of June 30, 1994.
2. The Montgomery, Alabama, banking market is approximated by Montgomery, Autaga, Lowndes, and Elmore Counties, and the town of Tallassee,
all in Alabama.
3. No thrift institutions operate in the Montgomery banking market.
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
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 nondepository financial entities.
5. Bank's competitive position in this market appears to be declining.
Bank's total assets have declined by almost 22 percent from year-end 1990 to
mid-year 1994. The dollar volume of loans that Bank made during this
period declined by 24.3 percent and its commercial lending declined by
approximately 41 percent.
6. The Montgomery MSA is the third largest of the state's ten MSA
banking markets in amount of deposits. The Montgomery MSA's ratios of
per capita income and deposits per banking office exceed the average of other
Alabama MSAs and the averages for the state as a whole. In addition, recent

Legal Developments 45

de novo banks were chartered in the Montgomery banking
market in 1989 and 1992. In addition, two out-of-market
firms entered the Montgomery market in 1992 and 1994
through the acquisition of existing banking firms that had
the majority of their assets in this market. Legal barriers to
entry into the market are low, because Alabama permits
statewide branching and is part of the Southeast regional
banking pact, which allows bank holding companies in 12
other southeastern states and the District of Columbia to
acquire banks in Alabama.
The Department of Justice also has considered the potential
anticompetitive impact of the proposal, and has not indicated
that the transaction is likely to result in significantly adverse
competitive effects. After considering the number of competitors that would remain in the market, the attractiveness of the
market for entry, and all other facts of record, the Board
concludes that consummation of this proposal would not result
in a significantly adverse effect on competition or the concentration of banking resources in the Montgomery banking market, or in any relevant banking market.
The financial and managerial resources and future prospects of Regions and Bank, and the other supervisory
factors that the Board must consider under section 3 of the
BHC Act, are consistent with approval. Considerations relating to the convenience and needs of the community 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 is expressly
conditioned on compliance with all the commitments made
by Regions in connection with this application. The commitments and conditions relied on by the Board in reaching
this decision are both deemed to be conditions imposed in
writing by the Board in connection with its findings and
decision, and, as such, may be enforced in proceedings
under applicable law.
This transaction shall not be consummated before the
thirtieth calendar day following the effective date of this
order, unless such period is shortened with the consent of
the Attorney General, 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 7, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman
Blinder and Governors LaWare and Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

population growth, deposit growth, and population per banking office ratios
in the Montgomery MSA exceed comparable state averages.




Union Planters Corporation
Memphis, Tennessee
Order Approving the Acquisition of a Bank Holding
Company
Union Planters Corporation, Memphis, Tennessee ("Union
Planters"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has applied
under section 3 of the BHC Act (12U.S.C. § 1842) to
acquire all of the voting shares of Mid South Bancshares,
Inc., Paragould, Arkansas ("Mid South"), and thereby indirectly acquire Security Bank, Paragould, Arkansas, and
Farmers and Merchants Bank, Reyno, Arkansas.1
Notice of the applications, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 41,763 (1994)). 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 3(c) of the BHC Act.
Section 3(d) of the BHC Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire control of any bank
outside the bank holding company's home state unless the
acquisition is "specifically authorized by the statute laws
of the State in which such bank is located, by language to
that effect and not merely by implication."2 For purposes
of the Douglas Amendment, Union Planters' home state
is Tennessee.
The Board previously has determined that the interstate
banking statutes of Arkansas permit a Tennessee bank holding company to acquire established banking organizations
in Arkansas.3 Based on all the facts of record, the Board has
determined that its approval of this proposal is not prohibited by the Douglas Amendment. Approval of this proposal
is conditioned upon Union Planters receiving all required
state regulatory approvals.
Union Planters, with total deposits of $6.2 billion, controls
43 commercial banks and savings associations in Arkansas,
Alabama, Kentucky, Mississippi, and Tennessee. Union Planters is the eighth largest commercial banking organization in
Arkansas, controlling approximately $492.8 million in depos-

1. Union Planters will acquire Mid South by merging it with Union
Planters's wholly owned subsidiary, MSB Acquisition Company, Inc., which
has applied to become a bank holding company in connection with this
application.
2. 12 U.S.C. § 1842(d). A bank holding company's home state is that state
in which the operations of the bank holding company's banking subsidiaries
were principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
3. Union Planters Corporation, 76 Federal Reserve Bulletin 474 (1990).
Under Arkansas law, a bank holding company within a region that includes
Tennessee, may acquire an Arkansas bank, if that state has reciprocal
statutes, and the Arkansas bank to be acquired has been in existence and
continuously operated for more than ten years. Security Bank and Farmers
and Merchants Bank have been in existence for more than ten years. Ark.
Code Ann. § 23-32-1802, 1804 (Michie 1994).

46 Federal Reserve Bulletin • January 1995

its, representing 2.2 percent of total deposits in commercial
banks in the state.4 Mid South is the 34th largest commercial
banking organization in Arkansas, controlling approximately
$114.4 million in deposits, representing less than 1 percent of
total deposits in commercial banks in the state. Upon consummation of the proposal, Union Planters would become the sixth
largest commercial banking organization in Arkansas, controlling 11 banks, with approximately $607.3 million in deposits,
representing 2.8 percent of total deposits in commercial banks
in the state.
Union Planters and Mid South do not compete directly in
any banking market. Accordingly, 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 Board also concludes that financial and managerial
resources and future prospects of Union Planters, Mid South,
and their respective subsidiary banks, and the other supervisory factors that the Board must consider under section 3 of the
BHC Act, are consistent with approval of this proposal. Considerations relating to the convenience and needs of the communities to be served also are consistent with approval.5
Based on the foregoing and all other facts of record, the
Board has determined that the application should be, and
hereby is, approved. The Board's approval is expressly
conditioned on compliance with all the commitments made
by Union Planters in connection with this application. The
commitments and conditions relied on by the Board in
reaching this decision shall be deemed to be conditions
imposed in writing by the Board in connection with its
findings and decision, and, as such, may be enforced in
proceedings under applicable law.

The acquisition of Mid South shall not be consummated
before the thirtieth calendar day following the effective date of
this order, unless such period is shortened with the consent of
the Attorney General, 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 7, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman
Blinder and Governors LaWare and Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

4. Deposit and state data are as of June 30, 1993. These figures are
adjusted to reflect mergers approved through August 13, 1994.
5. Union Planters' record of performance under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) has been reviewed in detail in the order
approving the application by Union Planters to acquire Grenada Sunburst
System Corporation, Grenada, Mississippi. See Union Planters Corporation,
81 Federal Reserve Bulletin 49 (1995).




Orders Issued Under Section 4 of the Bank Holding
Company Act
CS Holding
Zurich, Switzerland
Credit Suisse
Zurich, Switzerland
Order Approving Application to Engage De Novo in
Advisory Activities with Respect to Futures and Options
on Futures and Foreign Exchange
CS Holding and Credit Suisse, both of Zurich, Switzerland
("Applicants"), foreign banks subject to the provisions of
the Bank Holding Company Act ("BHC Act"), have applied, pursuant to section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)), to engage de novo, through their
subsidiary, BEA Associates, New York, New York ("Company"),1 in the following nonbanking activities:
(i) Acting as a commodity trading adviser ("CTA") in
providing investment advice with respect to futures
and options on futures on bullion, foreign exchange,
government securities, certificates of deposit, money
market instruments, and other financial instruments
previously approved by the Board,2 pursuant to section
225.25(b)(19) of Regulation Y (12
C.F.R.
225.25(b)(19»; and
(ii) Providing advice and transactional services with
respect to foreign exchange, pursuant to section
225.25(b)(17) of Regulation Y (12
C.F.R.
225.25(b)(17)).
Applicants have committed that Company will conduct
these activities in accordance with the provisions and subject to the limitations of Regulation Y (12 C.F.R.
225.25(b)(19) and 225.25(b)(17)).
Notice of the application, affording interested persons an
opportunity to submit comments, has been duly published
(57 Federal Register 30,737 (1992); 58 Federal Register
32,708 (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.
Credit Suisse, with total consolidated assets of approximately $156 billion, is the second largest banking organization in Switzerland and the 36th largest banking organization in the world.3 In the United States, Credit Suisse

1. Applicants own 80 percent of the equity interest in Company, a general
partnership. The remaining equity interest is owned by BEA Associates, Inc.,
New York, New York, which is wholly owned by its employees.
2. See SR Letter 93-27 (May 21,1993).
3. Asset and ranking data are as of December 31, 1993, and employ
exchange rates then in effect.

Legal Developments 47

operates branches in New York, New York, and Los Angeles, California, an agency in Miami, Florida, and representative offices in Atlanta, Georgia; Chicago, Illinois; Houston,
Texas; Miami, Florida; and San Francisco, California. In
addition, Applicants engage indirectly in a number of permissible nonbanking activities in the United States, and,
pursuant to section 8(c) of the International Banking Act of
1978 (12 U.S.C. § 3106(c)), engage in certain investment
banking and securities brokerage activities through two
other companies.4
The Board has previously determined by regulation that
the commodity advisory and foreign exchange transactional
activities described above are closely related to banking for
purposes of section 4(c)(8) of the BHC Act.5 In order to
approve this proposal, the Board also must find that the
performance of the proposed activities by Company "can
reasonably be expected to produce benefits to the public . . .
that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices."
12 U.S.C. § 1843(c)(8).
Based on all the facts of record, including the commitments made by Applicants regarding the conduct of the
proposed activities, the Board has determined that the performance of the proposed activities by Company can reasonably be expected to produce benefits to the public that
would outweigh any possible adverse effects of this proposal. The Board expects that consummation of the proposal would provide added service and convenience to
Applicants' customers and that the de novo entry of Company into the market for the proposed services in the United
States would increase the level of competition among providers of those services. Moreover, Applicants have committed to conduct these activities within the limitations
provided in Board regulations. There is no evidence in the
record to indicate that consummation of this proposal, subject to the commitments noted above, would result in significant adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices, that are not outweighed by the expected public benefits of the proposal. In
making this determination, the Board has considered the
financial and managerial resources of Applicants and its
subsidiaries, including Company, and the effect of this
proposal upon such resources, and has concluded that these
factors are consistent with approval of this application.6

4. These companies are Swiss American Securities, Inc., and Credit Suisse
Asset Management, Inc., both of New York, New York.
5. See 12 C.F.R. 225.25(b)(19) and 225.25(b)(17).
6. See 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin
155 (1987). The Board notes that Applicants' capital ratios satisfy applicable
risk-based standards established under the Basle Accord, and are considered
equivalent to the capital levels that would be required of a United States
banking organization.




Based on all the facts of record, including all the commitments made by Applicants, the Board has determined that
the application should be, and hereby is, approved. The
Board's approval is specifically conditioned on Applicants'
compliance with all the commitments made in connection
with this application and with the conditions and limitations
discussed in this order. The Board's determination also is
subject to all the conditions set forth in Regulation Y,
including those in sections 225.7 and 225.23(b), and to the
Board's authority to require such modification or termination of the activities of a bank holding company or any of
its subsidiaries as the Board finds necessary to 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, the commitments
and conditions relied on 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 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 1, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder and Governors Kelley, LaWare, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

Huntington Bancshares Incorporated
Columbus, Ohio
Huntington Bancshares Kentucky, Inc.
Columbus, Ohio
Order Approving the Acquisition of a Savings Association
Huntington Bancshares Incorporated ("Huntington") and its
wholly owned subsidiary, Huntington Bancshares Kentucky,
Inc. ("Huntington Kentucky"), both of Columbus, Ohio, bank
holding companies within the meaning of the Bank Holding
Company Act ("BHC Act"), have applied under section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 of
Regulation Y (12 C.F.R. 225.23) to acquire by merger FirstFed Northern Kentucky Bancorp, Inc. ("FirstFed"), and
thereby acquire its wholly owned subsidiary, First Federal
Bank for Savings of Northern Kentucky ("Savings Bank"),
both of Covington, Kentucky.1

1. Applicant proposes to merge FirstFed into Huntington Kentucky and,
immediately thereafter, merge Savings Bank into The Huntington Bank, Inc.,

48

Federal Reserve Bulletin • January 1995

Notice of the application, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 43,586 (1994)). 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.
The Board has determined by regulation 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.2 In making this determination, the Board
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. Huntington has committed to
conform all activities of Savings Bank to the requirements
of section 4 of the BHC Act and Regulation Y.
In considering an application under section 4(c)(8) of the
BHC Act, the Board is required to determine whether the
performance of the activity by an affiliate of a holding
company "can reasonably be expected to produce benefits
to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse
effects, such as undue concentration of resources, decreased
or unfair competition, conflicts of interest, or unsound banking practices." 12 U.S.C. § 1843(c)(8).
Huntington, with total consolidated assets of $16.4 billion,
controls 10 depository institutions in eight states.3 Huntington
is the 21st largest depository organization in Kentucky, controlling $325.4 million in deposits, representing less than 1 percent
of the total deposits in depository institutions in the state.4
FirstFed is the 29th largest depository organization in Kentucky, controlling $203.2 million in deposits, representing less
than 1 percent of the total deposits in depository institutions in
the state. Upon consummation of this proposal, Huntington
would become the 16th largest depository organization in the
state, controlling deposits of $528.6 million, representing approximately 1.3 percent of the total deposits in depository
institutions in Kentucky.

Covington, Kentucky ("Kentucky Bank"), a wholly owned bank subsidiary
of Huntington Kentucky. The Federal Deposit Insurance Corporation has
approved the merger of Savings Bank into Kentucky Bank under the Bank
Merger Act.
2. See 12 C.F.R. 225.25(b)(9).
3. Asset data are as of June 30, 1994.
4. State deposit data are as of December 31, 1993. 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 Savings Bank would be transferred to a commercial bank under this
proposal, those deposits are included at 100 percent in the calculation of
Huntington's pro forma market share. See Norwest Corporation, 78 Federal
Reserve Bulletin 452 (1992); First Bank, Inc., 76 Federal Reserve Bulletin
669, 670 n.9 (1990).




Huntington and FirstFed compete directly in the Cincinnati, Ohio, banking market ("Cincinnati banking market").5
After consummation of this proposal, numerous competitors would remain in the market, and the increase in market
concentration, as measured by the Herfindahl-Hirschman
Index ("HHI"), would not exceed the Department of Justice
Merger Guidelines.6 Based on all the facts of record, including the number of competitors remaining in the market and
Huntington's resulting market share, the Board concludes
that the consummation of this proposal would not have a
significantly adverse effect on competition or the concentration of banking resources in the Cincinnati banking market
or in any other relevant banking market.
Convenience and Needs Considerations
In considering an application to acquire a savings association under section 4 of the BHC Act, the Board reviews the
records of performance of the relevant institutions under the
Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA").7 The Board notes that all of Huntington's subsidiary banks and savings associations that have been examined for CRA performance8 received an "outstanding" or
"satisfactory" rating from their primary regulator in their
most recent examinations for CRA performance.9 Based on
these and all other facts of record, the Board concludes that

5. The Cincinnati banking market is approximated by Clermont and
Hamilton Counties and portions of Browne, Butler, and Warren Counties in
Ohio; Boone, Campbell, Grant, Kenton, and Pendleton Counties in Kentucky; and Dearborn County in Indiana.
6. 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 to be moderately concentrated. In such
markets, the Justice Department is likely to challenge a merger that increases
the HHI by more than 100 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 institutions. The resulting HHI in the
Cincinnati banking market would be 1218, and the change in the HHI caused
by this proposal would be de minimis.
7. The Board previously has determined that the CRA by its terms
generally does not apply to applications by bank holding companies to
acquire nonbanking companies under section 4(c)(8) of the BHC Act. The
Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The Board also
has stated that, unlike other companies that may be acquired by bank holding
companies under section 4(c)(8) of the BHC Act, savings associations are
depository institutions, as that term is defined in the CRA, and thus acquisitions of savings associations are subject to review under the express terms of
the CRA. Norwest Corporation, 76 Federal Reserve Bulletin 873 (1990).
8. Huntington Federal Savings Bank of Illinois, Chicago, Illinois, was
chartered December 15, 1993, and has not been examined for CRA performance by the Office of Thrift Supervision, its primary regulator.
9. In its most recent examination for CRA performance, Huntington's lead
bank, The Huntington National Bank, Columbus, Ohio ("Ohio Bank"),
received a "satisfactory" rating from its primary regulator, the Office of the
Comptroller of the Currency ("OCC"). The examination, however, identified
certain areas of concern that Ohio Bank has agreed to address completely,
and the Board expects Huntington and Ohio Bank to fully implement
corrective actions to address these areas of concern. The Board will continue

Legal Developments 49

considerations relating to the record of performance under
the CRA are consistent with approval of this application.
The financial and managerial resources of Huntington and
its subsidiaries and FirstFed and its subsidiaries also are
consistent with approval. The Board also finds that consummation of this proposal is not 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 outweighed by public benefits, such as the added convenience
and services to be provided to Savings Bank customers as a
result of their access to an array of services, programs, and
locations not currently offered by Savings Bank, that are
expected from this proposal.
Based on the foregoing and all the facts of record, the
Board has determined that the balance of the public interest
factors it must consider under section 4(c)(8) of the BHC
Act is favorable and consistent with approval of Huntington's application to acquire FirstFed. Accordingly, the
Board has determined that the application should be, and
hereby is, approved. The Board's approval is specifically
conditioned on compliance by Huntington with all the commitments and conditions made in connection with this application. The Board's determination also is subject to all the
conditions set forth in Regulation Y, including those in
sections 225.7 and 225.23(b)(3) (12 C.F.R. 225.7 and
225.23(b)(3)), and to the Board's authority to require any
such 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. Both
the commitments and conditions relied on by the Board in
reaching this decision in this case are deemed to be conditions imposed in writing by the Board in connection with its
findings and decision and, as such, may be enforced in
proceedings under applicable law.
This transaction may not be consummated later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or by
the Federal Reserve Bank of Cleveland, acting pursuant to
delegated authority.
By order of the Board of Governors, effective November 14, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

to monitor Huntington's progress in correcting these areas in future applications to acquire depository facilities.




Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
Union Planters Corporation
Memphis, Tennessee
Order Approving the Acquisition of a Bank Holding
Company
Union Planters Corporation, Memphis, Tennessee ("Union
Planters"), 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 Grenada Sunburst System
Corporation, Grenada, Mississippi ("Grenada"), and thereby
indirectly acquire its subsidiary banks, Sunburst Bank,
Grenada, Mississippi ("SBM"), and Sunburst Bank, Baton
Rouge, Louisiana ("SBL").
Union Planters 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
Grenada's wholly owned subsidiary, Sunburst Financial
Group, Inc., Grenada, Mississippi ("Sunburst Financial"),
and thereby engage nationwide in the following nonbanking
activities:
(1) Providing securities brokerage and investment advisory services on a combined basis ("full-service securities brokerage"), pursuant to sections 225.25(b)(4) and
(15)(ii) of Regulation Y (12 C.F.R. 225.25(b)(4) and
(15)(ii)); and
(2) Purchasing and selling all types of securities as a
"riskless principal" on the order of customers.
Notice of the applications, affording interested persons
an opportunity to submit comments, has been published
(59 Federal Register 43,840 (1994)). 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 sections 3 and 4 of the BHC Act.
Union Planters, with total consolidated assets of
$7.6 billion, operates 43 subsidiary banks and thrift
institutions in Alabama, Arkansas, Kentucky, Mississippi
and Tennessee.1 Union Planters is the seventh largest
commercial banking organization in Mississippi, controlling deposits of $444.6 million, representing approximately 2.1 percent of the total deposits in commercial
banking organizations in the state. Grenada, with total
consolidated assets of $2.5 billion, is the third largest
commercial banking organization in Mississippi, controlling deposits of $1.8 billion, representing 8.4 percent of
total deposits in commercial banking organizations in the

1. All asset and state deposit data are as of June 30,1994. These figures are
adjusted to reflect mergers approved through September 1, 1994.

50 Federal Reserve Bulletin • January 1995

state. Upon consummation of this proposal, Union Planters
would become the third largest commercial banking organization in Mississippi, controlling deposits of $2.2 billion, representing approximately 10.5 percent of total deposits in commercial banking organizations in the state.
Douglas Amendment Analysis
Section 3(d) of the BHC Act, the Douglas Amendment,
prohibits the Board from approving an application by a
bank holding company to acquire control of any bank
located outside the bank holding company's home state,
unless such acquisition is "specifically authorized by the
statute laws of the State in which such bank is located, by
language to that effect and not merely by implication."2 For
purposes of the Douglas Amendment, the home state of
Union Planters is Tennessee.3
Mississippi and Louisiana have enacted banking statutes
that permit out-of-state bank holding companies to acquire
banks in these states, provided that the home state of the
acquiring bank holding company permits the acquisition of
banks in that state on a reciprocal basis.4 Under Tennessee's
interstate banking statute, an out-of-state bank holding company may acquire a Tennessee bank or bank holding company if the laws of the state in which the acquiring bank
holding company is located allow Tennessee bank holding
companies to acquire banks and bank holding companies in
that state, subject to any conditions, restrictions, requirements, or other limitations that would apply to such acquisitions but would not apply to an in-state acquisition in that
state.5 The Mississippi and Louisiana state banking supervisors have indicated that the reciprocity requirements under
their respective statutes are satisfied by the Tennessee statute. In light of the foregoing, and based on an analysis of
the interstate banking statutes involved, the Board has determined that its approval of this proposal is not prohibited by
the Douglas Amendment. Approval of this proposal is con-

2. 12 U.S.C. § 1842(d).
3. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were principally conducted on July 1,1966, or the date on which the company became a
bank holding company, whichever is later.
4. See Miss. Code Ann. § 81-8-1, et seq. (1989); La. Rev. Stat.
Ann. § 6:531 et seq. (West Supp. 1994). Under the Mississippi Regional
Banking Institutions statute, bank holding companies within a defined region, which includes Tennessee, are permitted to acquire a Mississippi bank
holding company provided that the applicant's home state authorizes the
acquisition of banks in that state by a Mississippi bank or bank holding
company under conditions no more restrictive that those imposed by the laws
of Mississippi. Mississippi law also imposes certain other conditions, including that the bank to be acquired has been in continuous operation for at least
five years, that have been satisfied in this case. The Louisiana Interstate
Banking laws authorize any out-of-state bank holding company to acquire a
bank holding company or bank in Louisiana if the Commissioner of Financial Institutions for the state of Louisiana determines that the law of the state
in which the out-of-state bank holding company has its principal place of
business permits Louisiana bank holding companies to acquire banks and
bank holding companies in that state.
5. Tenn. Code Ann. § 45-12-102 et seq. (1993).




ditioned upon Union Planters receiving all required state
regulatory approvals.
Competitive Considerations
Union Planters and Grenada own depository institutions
that compete directly in the Memphis, Tennessee, banking
market and in the Mississippi banking markets of Cleveland, Coahoma County, Oxford, Tallahatchie County, and
Tupelo. 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 number of competitors remaining in these
markets, the increase in the concentration of total deposits
in depository institutions6 in these markets ("market deposits") as measured by the Herfindahl-Hirschman Index
("HHI"),7 and certain commitments made by Union Planters.
Upon consummation of the proposal, Union Planters would
remain the largest depository institution in the Coahoma
County banking market ("Coahoma banking market")8 and
become the largest depository institution in the Tallahatchie
County banking market ('Tallahatchie banking market").9
Both of these markets would be considered highly concentrated under the Department of Justice Merger Guidelines and
Union Planters would control more than 60 percent of the
market deposits in each market.10 In order to mitigate the
adverse competitive effect that would result from consummation of this proposal in these two markets, Union Planters has
committed to divest Union Planters's branch located in

6. In this context, depository institutions include commercial banks and
savings associations. Market deposit data are as of June 30, 1993. 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). 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).
7. 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 nondepository financial entities.
8. The Coahoma banking market is approximated by Coahoma County,
Mississippi.
9. The Tallahatchie banking market is approximated by Tallahatchie
County, Mississippi.
10. In the Coahoma banking market, the HHI would increase 2550 points
to 5966 and Union Planters would control 72 percent of market deposits
upon consummation. In the Tallahatchie banking market, consummation of
the proposal would increase the HHI 1147 points to 4932 and Union Planters
would control 63.2 percent of market deposits.

Legal Developments

Tutwiler, Mississippi (in the Tallahatchie banking market),
Grenada's largest branch located in Claiksdale, Mississippi,
and Grenada's branch located in Lula, Mississippi, both in the
Coahoma banking market, to out-of-maiket depository institutions.11 The proposed divestitures would preserve the number
of depository institutions that compete in these markets and
consummation of this proposal would not exceed the threshold
levels in the Department of Justice Merger Guidelines.12 In the
Memphis, Tennessee, banking market and the Mississippi
banking markets of Cleveland, Oxford, and Tupelo,13 consummation of this proposal also would not exceed the threshold
standards in these Guidelines.14 In addition, numerous competitors would remain in all of these markets.
As in other cases, the Board also sought comments from
the United States Attorney General's Office, the Office of
the Comptroller of the Currency ("OCC"), and the Federal
Deposit Insurance Corporation ("FDIC") on the competitive
effects of this proposal. The Attorney General, OCC, and
FDIC have not objected to consummation of the proposal or
indicated that the proposal would have any significantly
adverse competitive effects in any relevant banking market
in which Union Planters and Grenada compete. Based on all
the facts of record, including the proposed divestitures, the
relatively small changes in market concentration as measured by the HHI, and the number of remaining competi-

11. Union Planters has committed to submit to the Board, prior to
consummation of its acquisition of Grenada, a binding contract acceptable to
the Board for the sale of these branches. Union Planters also has committed
that if it does not execute such a contract before consummation, it will
transfer these branches to an independent trustee upon consummation, who
will be authorized to supervise the operations of these branches and instructed to promptly find a suitable buyer without regard to price. Union
Planters also has committed to submit to the Board, prior to consummation
of the acquisition, an executed trust agreement acceptable to the Board
stating the terms of this divestiture. The Board's action on the application is
expressly conditioned on compliance with these commitments.
12. Upon completion of the proposed divestitures, in the Coahoma banking market, Union Planters would control 44 percent of the total market
deposits, and the HHI would increase 86 points to 3502. In the Tallahatchie
banking market, Union Planters proposes to divest its own branch and
acquire Grenada's current operations; thus, the proposal would not have any
effect on the number of competitors in the market. In this market, Union
Planters would control 52.2 percent of the total market deposits, and the HHI
would remain 3785.
13. The Memphis, Tennessee, banking market is approximated by Fayette,
Shelby and Tipton Counties in Tennessee, Crittenden County, Arkansas, and
De Soto and Tate Counties in Mississippi; the Cleveland banking market is
approximated by Bolivar County and the northern half of Sunflower County,
both in Mississippi; the Oxford banking market is approximated by Lafayette, Panola and Yolobusha Counties, all in Mississippi; and the Tupelo
banking market is approximated by Lee and Prentiss Counties, both in
Mississippi.
14. Union Planters would remain the second largest depository institution
in the Memphis banking market, controlling 15.5 percent of market deposits,
and the HHI would increase by 16 points to 1197. Union Planters would
become the second largest depository institution in the Cleveland banking
market, controlling 22.6 percent of market deposits, and the HHI would
increase by 171 points to 1838. Union Planters would remain the largest
depository institution in the Oxford banking market, controlling 27.7 percent
of market deposits, and the HHI would increase by 319 points to 1609. Union
Planters would become the sixth largest depository institution in the Tupelo
banking market, controlling 3.4 percent of market deposits, and the HHI
would increase by 5 points to 2404.




51

tors, the Board concludes that consummation of this proposal would not have a significantly adverse effect on
competition or concentration of banking resources in any of
the relevant banking markets in which Union Planters and
Grenada compete.
Convenience and Needs Considerations
In acting on 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 expansion proposals.15
In connection with these applications, the Board has
received comments from several organizations ("Protestants") criticizing the record of performance and commitment of Union Planters and Grenada under the CRA in
helping to meet community credit needs.16 In particular,
Protestants maintain that 1993 data collected under the
Home Mortgage Disclosure Act ("HMDA") indicate that
Union Planters's lead subsidiary bank, Union Planters National Bank, Memphis, Tennessee ("UPNB"), illegally discriminates against African-American borrowers in applications for first mortgages, refinancings and home
improvement loans.17 Protestants also question the outreach
and marketing efforts of UPNB and Grenada to the AfricanAmerican community, and contend that UPNB does not
have a sufficient number of branches in minority and lowand moderate-income areas.18 Finally, Protestants believe
that SBM's less-than-satisfactory CRA performance rating,
and the absence of specific steps by UPNB to address

15. 12 U.S.C. § 2903.
16. These organizations include the National Community Reinvestment
Coalition, Lafayette County Chapter of the Mississippi NAACP, Mississippi
Human Services Agenda, North Mississippi Rural Legal Services Corporation, Mid-South Peace and Justice Center, and Memphis Branch NAACP.
17. Protestants support their allegations by comparing UPNB's lending
data to data submitted by the three largest Memphis-based financial institutions in various categories, including the total dollar amount of lending to
African Americans and to census tracts with a majority of African-American
residents, and the amount of loans to African Americans as the percentage of
the bank's total lending. One Protestant also has noted that UPNB has been
sued for illegal discrimination as the result of an individual loan denial.
18. Protestants specifically criticize UPNB's relocation of its headquarters
from downtown Memphis to a suburb.

52 Federal Reserve Bulletin • January 1995

identified deficiencies at the bank, should warrant denial of
the applications.19
The Board has carefully reviewed the CRA performance
records of Union Planters, Grenada, and their respective
subsidiary banks; all comments received regarding these
applications; Union Planters's and Grenada's responses to
those comments; and all other relevant facts of record in
light of the CRA, the Board's regulations, and the Agency
CRA Statement.20

Record of Performance Under the CRA
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.21 The Board notes that UPNB received a "satisfactory" rating from its primary federal regulator, the OCC, at its
most recent publicly available examination for CRA performance in May 1992 ("1992 Examination"). The OCC has
recently concluded another examination of UPNB, and has
preliminarily rated its record of CRA performance "satisfactory." Union Planters's remaining 42 subsidiary banks and
thrifts received either "outstanding" or "satisfactory" ratings from their primary regulators in the most recent examinations of their CRA performance.22 As previously noted,
SBM's CRA performance was rated "needs to improve" by
its primary federal regulator, the FDIC, as of October 1993.
Grenada's other subsidiary, SBL, was rated "satisfactory"
for CRA performance by the FDIC as of October 1992.

B. HMD A Data and Lending Practices
The Board has carefully reviewed Union Planters's 1993
and preliminary 1994 HMDA data in light of Protestants's
concerns. In general, these data indicate that Union Planters
has improved its lending record of home mortgage loans to
low- and moderate-income and minority borrowers. For

19. One Protestant suggests that the Board should convene a forum with
community groups and interested parties for the purpose of establishing
specific time tables and performance goals. Another Protestant believes that
no progress was made with UPNB under a written agreement with that
group. The Board has indicated in previous orders and in the Statement of the
Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement") that communication by depository
institutions with community groups provides a valuable method of assessing
and determining how best to address the credit needs of the community.
However, neither the CRA nor the Agency CRA Statement requires depository institutions to enter into agreements with particular organizations. See
Fifth Third Bancorp, 80 Federal Reserve Bulletin 838 (1994).
20. 54 Federal Register 13,742 (1989).
21. Id. at 13,745.
22. Of these institutions, 35 received a CRA performance rating of
"satisfactory," and seven received a CRA performance rating of "outstanding."




example, these data indicate an increase in the number of
loan applications received by UPNB from residents of lowto moderate-income census tracts as well as an increase in
the number of mortgage loans originated in low- and
moderate-income census tracts by UPNB. UPNB also has
shown improvement in its record of lending to communities
with predominately minority populations. In particular,
HMDA data indicate an increase in the number of loan
applications received from African Americans and in the
number of loans originated to African Americans, as well as
a decrease in the percentage of denied African-American
loan applications. The improving trends in the 1993 HMDA
data are confirmed by the preliminary 1994 HMDA data.23
The preliminary 1994 HMDA data show that UPNB sustained its level of lending to low- and moderate-income
census tracts and increased its number of home purchase
loans to African-American borrowers. However, the data
also reflect some disparities in the rate of loan originations,
denials, and applications by racial group or income level.
The Board is concerned when the record of an institution
indicates disparities in lending to minority applicants and believes that 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 recognizes,
however, that HMDA data alone provide an incomplete measure of an 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
concluding that an institution has engaged in illegal discrimination in making lending decisions.
The Board has carefully reviewed Protestants's allegations of illegal discriminatory practices in UPNB's lending
activities in light of publicly available and other information from the OCC, the bank's primary regulator. In this
regard, the 1992 Examination found that credit criteria are
generally applied in a nondiscriminatory manner in evaluating applications. Examiners also found no evidence of any
practices or procedures that would discourage applications
for available credit from any geographical segment of its
delineated community. Moreover, the 1992 Examination
found that UPNB's delineation of its local communities was
reasonable and did not arbitrarily exclude low- to moderateincome areas. Examiners also noted that training programs
were in place to guide employees regarding fair lending.
UPNB has initiated a number of steps to increase its lending
to low- and moderate-income and minority borrowers. For
example, UPNB has a second review process in place for any
mortgage application that is denied. The purpose of this program is to ensure that mortgage applications from all applicants, including low- and moderate-income and minority applicants, have received fair consideration.

23. The preliminary 1994 HMDA data are through September 30, 1994.

Legal Developments 53

UPNB also has several lending programs designed to improve its lending to minorities and low- and moderate-income
communities. In particular, UPNB developed a new mortgage
product targeted to low-and moderate-income consumers in
1992. To date, the bank has originated 89 loans totaling approximately $3.4 million, to low- and moderate-income customers under this program. In addition, through UPNB's involvement in the New Day Development Project, UPNB has
committed approximately $15 million to originate down payment assistance and mortgage financing loans in the RaleighFrayser area of Memphis, a low- and moderate-income neighborhood. During the first quarter of 1994, UPNB has approved
six loans under this project, totaling $327,700, and 16 additional loans totaling $856,588 are under review. UPNB senior
management also has approved the establishment of a $5
million pool to be used to place secondary market loans to
creditworthy minority applicants who may not meet traditional
underwriting criteria.
UPNB also actively engages in small business lending,
and it currently has over $48.9 million in loans outstanding
to small businesses. Approximately $16.2 million has been
loaned to small businesses located in low- and moderateincome census tracts, including $4.8 million of this amount
loaned to businesses owned by African Americans. UPNB
is a certified lender with the Small Business Administration
("SBA"), and has over $6.7 million in outstanding SBA
loans, as of January 31,1994. In addition, UPNB engages in
several micro-revolving loan funds for small businesses.

C. Ascertainment and Outreach Efforts
UPNB uses several methods to ascertain community credit
needs, including questionnaires, direct contacts and community outreach programs. For example, UPNB ascertains the
credit needs of communities through direct contacts with
civic and community-based organizations, community
Boards, religious groups, trade and special interest groups,
and government entities. These outreach efforts include
joint efforts with community organizations. In particular,
UPNB is actively involved with the Black Business Association of Memphis to develop programs, projects and activities designed to promote the development of minority businesses in the community, and the Memphis Multi-Bank
Community Development Corporation to aid in the renovation, improvement and construction of housing for low- and
moderate-income individuals in Memphis. Bank representatives also participate in meetings with numerous organizations, and serve on the boards of directors of organizations
that represent low- and moderate-income neighborhoods,
small businesses and minority consumers and other special
interest groups. In this regard, UPNB has met with the
Shelby County Reinvestment Coalition quarterly since
1987, and intends to continue these meetings.



Moreover, the bank's outreach efforts also include educational programs for the public. For example, UPNB has
provided free seminars on home buying, credit repair, and
financial budgeting and planning at local churches, hotels
and libraries. UPNB has developed a "Home Buyers Guide"
to educate potential home buyers on the mortgage loan
process. UPNB also uses direct mail to realtors and seminar
attendees to inform individuals of UPNB's products and
services.
UPNB markets its products and services through a variety of advertising activities, including print media, direct
mail, and radio and television advertising. These activities
include marketing efforts targeted to African-American customers. For example, UPNB advertises in the "Tri-State
Defender" and "Silver Star," African-American owned
newspapers circulated primarily in the African-American
community. UPNB also targets the African-American community by advertising on radio stations owned by African
Americans.

D. Branch Locations
The 1992 Examination found that UPNB operated fullservice branches, limited service branches and automated
teller machines ("ATMs") at locations reasonably accessible
to all segments of its community, including low- to
moderate-income neighborhoods. Examiners concluded that
products and services provided at these facilities were suitable for the needs of the community.24
The 1992 Examination also noted that the bank had a
comprehensive branch closing/service reduction policy that
serves to minimize their impact. In addition, UPNB's record
of opening and closing offices was not deemed to have had
an adverse impact on the level of services provided within
its communities.
Although UPNB has moved its headquarters from downtown Memphis, the bank continues to maintain a branch
bank located one block away from its previous headquarters. Moreover, the bank received approval from the OCC in
1994 to open another full-service branch in downtown
Memphis. In addition, UPNB has two full-service branches
in the Whitehaven area in Memphis, which serves low- and
moderate-income census tracts. UPNB also has recently
installed five new ATMs in low- and moderate-income and
minority areas of Memphis.

24. Examiners noted that during 1991, several branches in the Memphis
area were designated as "Home Buyers Centers" with personnel in these
branches receiving additional training in housing-related financing. The 1992
Examination concluded that the locations of these branches, including some
in communities that serve low- to moderate-income neighborhoods, served to
better accommodate customers in the community.

54 Federal Reserve Bulletin • January 1995

E. Efforts to Address SBM's CRA Performance
Rating

F. Conclusion Regarding Convenience and Needs
Factors

Union Planters has in place the types of policies and procedures that the Board and other Federal bank supervisory agencies have indicated contribute to an effective CRA program,
and it has committed to implement these policies and programs at SBM after consummation of the proposal. These
policies include provisions that make the board of directors of
each subsidiary of Union Planters responsible for implementing and overseeing the bank's CRA program. In the case of
UPNB, the bank has a CRA officer who is responsible for
administering UPNB's CRA program and reporting to the
board of directors. The CRA officer chairs an internal CRA
Committee with other senior management that meets monthly
to review UPNB's CRA program. UPNB's board of directors
also has appointed a director's CRA committee which meets
quarterly to review UPNB's CRA activities. Each subsidiary
reports at least annually to Union Planters's Director of Compliance on its CRA activities and performance. Union Planters's policies also require periodic reports on progress in
improving the CRA performance of any of its subsidiaries
with a less-than-satisfactory rating. The Board notes that several institutions acquired by Union Planters with less-thansatisfactoiy CRA performance ratings later improved to satisfactory ratings after being consolidated within its programs.25
Upon consummation of this proposal, Union Planters has
committed to review Grenada's CRA statements, performance summaries, and training programs, and to ensure that
SBM receives a "satisfactory" rating at its next CRA examination.26 The Board expects Union Planters to take steps
that will address the areas of weakness identified in the
FDIC's most recent examination of SBM. In addition,
Union Planters must submit to the Federal Reserve Bank of
St. Louis ("Reserve Bank"), when delivered to the FDIC, a
copy of the plan to address the weaknesses in the CRA
performance record of SBM identified by the FDIC. Union
Planters also is required to report quarterly to the Reserve
Bank, beginning with the quarter in which the plan is
implemented. Union Planters's progress in remedying these
deficiencies will be taken into account in connection with
future applications by Union Planters to acquire depository
institutions.

The Board has carefully considered the entire record, including the comments filed in this case, in reviewing the
convenience and needs factors under the BHC Act. Based
on a review of the entire record of performance, including
information provided by Protestants and Union Planters, the
CRA performance examinations and other information from
the banks's primary regulators, and Union Planters's commitments and the conditions in this order, the Board believes that the efforts of Union Planters and Grenada to help
meet the credit needs of all segments of the communities
served by their subsidiary banks, including low- and
moderate-income neighborhoods, are consistent with approval. For these reasons, and based on all the facts of
record, the Board concludes that convenience and needs
considerations, including the CRA performance records of
the companies and banks involved in these proposals, are
consistent with approval of these applications.27

25. Steiner Bank, Steiner, Alabama, was acquired on November 30, 1989;
Security Trust Federal Savings & Loan Association, Knoxville, Tennessee,
was acquired on January 1, 1993; and First Southern Bank, Earle, Arkansas,
was acquired on August 1, 1994.
26. Union Planters also proposes to contract with an independent third
party to perform an extensive supplemental review of SBM's CRA program.
This third party contractor has performed fair lending reviews of three of
Union Planters's largest subsidiary banks as part of Union Planters's ongoing
monitoring of its CRA activities.




Other Considerations
The Board also concluded that the financial and managerial
resources and future prospects of Union Planters, Grenada,
and their respective subsidiaries, and other supervisory factors the Board must consider under section 3 of the BHC
Act, are consistent with approval of this proposal.
Union Planters also has applied, pursuant to section
4(c)(8) of the BHC Act, to engage in investment advisory,
securities brokerage and riskless principal activities. The
Board has previously determined by regulation that the
proposed full service brokerage activities are closely related
to banking for purposes of section 4(c)(8) of the BHC
Act.28 Union Planters has committed that it will conduct
these activities in accordance with the Board's regulations
and orders approving these activities for bank holding companies.

27. Protestants have requested a public hearing or meeting to discuss the
proposed acquisition of Grenada. Section 3(b) of the BHC Act does not
require the Board to hold a public hearing on an application unless the
appropriate supervisory authority for the bank to be acquired makes a timely
written recommendation of denial of the application. In this case, the
Mississippi Department of Banking and Consumer Finance 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, Protestants have had ample opportunity to and
have presented written submissions, and Protestants have not identified facts
that are material to the Board's decision and that are in dispute. Therefore,
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, and the request for a public meeting or hearing on this application is
denied.
28. See 12 C.F.R. 225.25(b)(4)(i)-(iv) and (b)(15).

Legal Developments

"Riskless principal" is the term used in the securities
business to refer to a transaction in which a broker-dealer,
after receiving an order to buy (or sell) a security from a
customer, purchases (or sells) the security for its own account to offset a contemporaneous sale to (or purchase
from) the customer.29 "Riskless principal" transactions are
understood in the industry to include only transactions in
the secondary market. Thus, under this proposal, Sunburst
Financial would not act as a "riskless principal" in selling
securities at the order of a customer that is the issuer of the
securities to be sold, or in any transaction in which Sunburst
Financial has a contractual agreement to place the securities
as agent of the issuer. Sunburst Financial also would not act
as a "riskless principal" in any transaction involving a
security for which it makes a market.
The Board previously has determined by order that, subject to a number of prudential limitations that address the
potential for conflicts of interests, unsound banking practices, and other adverse effects, the proposed riskless principal activities are so closely related to banking as to be a
proper incident thereto within the meaning of section 4(c)(8)
of the BHC Act.30 The Board also previously has determined that purchasing and selling securities on the order of
investors as a "riskless principal" does not constitute underwriting or dealing in securities for purposes of section 20 of
the Glass-Steagall Act (12 U.S.C. § 377), and, accordingly,
that revenue derived from these activities is not subject to
the 10 percent revenue limitation on underwriting and dealing in ineligible securities.31 In order to address the potential for conflicts of interests, unsound banking practices, or
other adverse effects, Union Planters has committed that
Sunburst Financial will conduct its "riskless principal" activities using the same methods and procedures, and subject
to the same prudential limitations established by the Board
in the Bankers Trust Order and the J.P. Morgan Order.32

29. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R.
240.10b- 10(a)(8)(i).
30. See Bankers Trust New York Corporation, 75 Federal Reserve Bulletin
829 (1989) ("Bankers Trust Order"); J.P. Morgan & Company Incorporated,
76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan Order").
31. See Bankers Trust Order.
32. See J.P. Morgan Order; Bankers Trust Order. Among the prudential
limitations detailed more fully in those orders are that Sunburst Financial
will maintain specific records that will clearly identify all "riskless principal"
transactions, and that Sunburst Financial will not engage in any "riskless
principal" transactions for any securities carried in its inventory. When acting
as a "riskless principal," Sunburst Financial will engage only in transactions
in the secondary market, and not at the order of a customer that is the issuer
of the securities to be sold, will not act as "riskless principal" in any
transaction involving a security for which it makes a market, nor hold itself
out as making a market in the securities that it buys and sells as a "riskless
principal." Moreover, Sunburst Financial will not engage in "riskless principal" transactions on behalf of any foreign affiliates that engage in securities
dealing activities outside the United States, and will not act as "riskless
principal" for registered investment company securities. In addition, Sunburst Financial will not act as a "riskless principal" with respect to any
securities of investment companies that are advised by Union Planters or any
of its affiliates.




55

In every case under section 4 of the BHC Act, the Board
considers the financial condition and resources of the applicant and its subsidiaries and the effect of the transaction on
those resources.33 Based on all the facts of record, the
Board has concluded that financial and managerial considerations are consistent with approval.
In order to approve this application, the Board also must
determine that the performance of the proposed activities by
Sunburst Financial "can reasonably be expected to produce
benefits to the public . . . that outweigh possible adverse
effects, such as undue concentration of resources, decreased
or unfair competition, conflicts of interests, or unsound
banking practices." 12 U.S.C. § 1843(c)(8). In considering
Union Planters's acquisition of these nonbanking activities
of Grenada, the record in this case indicates that there are
numerous providers of these nonbanking services, and there
is no evidence in the record to indicate that consummation
of this proposal is likely to result in any significantly
adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or
unsound banking practices that would outweigh 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.
Conclusion
Based on the foregoing, including the commitments made
to the Board by Union Planters in connection with applications, and in light of all the facts of record, the Board has
determined that these applications should be, and hereby
are, approved.34 The Board's approval is specifically conditioned upon compliance by Union Planters with all commitments made in connection with these applications as well as
the conditions discussed in this order and in the abovereferenced orders.
The Board's determinations as to the nonbanking activities to be conducted by Union Planters are subject to all the
conditions in the Board's Regulation Y, including those in
sections 225.7 and 225.23(b)(3) (12 C.F.R. 225.7 and

33. See 12 C.F.R. 225.24. See also The Fuji Bank, Umited, 75 Federal
Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve
Bulletin 155 (1987).
34. One Protestant maintains that UPNB discriminates against African
Americans in its employment practices. In this regard, the Board notes that
because UPNB employs more than 50 people, serves as a depository of
government funds, and acts as agent in selling or redeeming U.S. savings
bonds and notes, it is required by Department of Labor regulations to:
(1) File annual reports with the Equal Employment Opportunity Commission; and
(2) Have in place a written affirmative action compliance program which
states its efforts and plans to achieve equal opportunity in the employment,
hiring, promotion, and separation of personnel.
See 41 C.F.R. 60-1.7(a), 60-1.40. The record also indicates that Union
Planters and its other subsidiaries are subject to these equal opportunity and
affirmative action requirements.

56 Federal Reserve Bulletin • January 1995

225.23(b)(3)), and to the Board's authority to require such
modification or termination of the activities of a holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, or to prevent evasion
of, the provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder. 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.
The acquisition of Grenada's subsidiary banks shall not
be consummated before the thirtieth calendar day following
the effective date of this order, unless such period is shortened with the consent of the Attorney General, and the
banking and the nonbanking transactions shall not be consummated later than three months following the effective
date of this order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
St. Louis, acting pursuant to delegated authority.
By order of the Board of Governors, effective November 7, 1994.
Voting for this action: Chairman Greenspan and Governors
Kelley, Phillips, and Yellen. Absent and not voting: Vice Chairman
Blinder and Governors LaWare and Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

ORDERS ISSUED UNDER BANK MERGER ACT

Marine Midland Bank
Buffalo, New York
Order Approving the Acquisition of Branches
Marine Midland Bank, Buffalo, New York ("Marine Midland"), a state member bank, has applied under section
18(c) of the Federal
Deposit Insurance
Act
(12 U.S.C. § 1828(c)) ("Bank Merger Act") to acquire six
New York State retail branch banking offices of Hongkong
and Shanghai Banking Corporation Limited, Hong Kong
("HSBC"), and to establish branches at these existing offices under section 9 of the Federal Reserve Act
(12 U.S.C. § 321 et seq.).1 Marine Midland and HSBC are
both wholly owned by HSBC Holdings pic, London, England ("Holdings").
Notice of the applications, affording interested persons an
opportunity to submit comments, has been given in accordance with the Bank Merger Act and the Board's Rules of

1. The proposed acquisition would be efFected through a purchase of assets
and assumption of liabilities. The locations of the branch offices to be
acquired are set forth in the Appendix.




Procedure (12 C.F.R. 262.3(b)). As required by the Bank
Merger Act, reports on the competitive effects of the proposal were requested from the United States Attorney General ("Attorney General"), the Office of the Comptroller of
the Currency ("OCC"), and the Federal Deposit Insurance
Corporation ("FDIC"). 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 the
Bank Merger Act and the Federal Reserve Act.
Marine Midland controls deposits of $12.5 billion, representing approximately 5 percent of the total deposits in
commercial banks in New York.2 The HSBC branches
control deposits of $409.2 million. Upon consummation of
this proposal, Marine Midland would remain the fifth largest commercial banking organization in New York, controlling deposits of $12.9 billion, representing approximately
5.3 percent of total deposits in commercial banks in the
state. Marine Midland and HSBC are affiliated institutions.
This proposal represents a reorganization of the corporate
structure of Holdings, and would not result in any expansion of its US. operations. The Attorney General has indicated that this proposal is not likely to result in a significantly adverse effect on competition in any relevant banking
market, and neither the OCC nor the FDIC has objected to
consummation of this transaction. Based on all the facts of
record, including the foregoing, the Board has concluded
that consummation of this proposal would not have a significantly adverse effect on competition or the concentration of
banking resources in any relevant banking market.
Convenience and Needs Considerations
In acting on an application under the Bank Merger Act, the
Board is required to consider the convenience and needs of
the communities to be served, and to 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 moderateincome neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record into
account in its evaluation of applications under the Bank
Merger Act.3
The Board has received comments from the Concerned
Citizens of Westchester County New York, White Plains,

2. Deposit data are as of June 30,1994.
3. 12 U.S.C. § 2903.

Legal Developments 57

New York ("Protestant"), that criticize the CRA performance record of Marine Midland.4 Protestant believes that
Marine Midland does not address the credit needs of minorities in all the geographic areas that it serves, and that
Marine Midland does not offer all its credit products on an
equal basis. Specifically, Protestant alleges that Marine Midland's 1993 Home Mortgage Disclosure Act ("HMDA")
data show that the bank has not adequately addressed the
mortgage needs of African-American communities in
Westchester County. Protestant also alleges that Marine
Midland does not advertise its credit products in AfricanAmerican communities and does not participate in first-time
home-buyers seminars sponsored by various community
organizations in Westchester.
In considering the convenience and needs factor under the
Bank Merger Act, the Board has carefully reviewed the entire
record of CRA performance of Marine Midland, all comments
received, Marine Midland's response 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").5

Record of CRA Performance
A. Evaluation of CRA Performance
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record, and that these
reports will be given great weight in the applications process.6 The Board notes that Marine Midland received a
"satisfactory" rating from the OCC for CRA performance
as of March 31, 1992. Since December 31, 1993, Marine
Midland has been a member of the Federal Reserve System,
and recently has been examined for CRA performance by
the Federal Reserve Bank of New York ("Reserve Bank").
Marine Midland received a CRA examination rating of
"satisfactory" from the Reserve Bank at its most recent
CRA examination as of January 31, 1994 ("1994 Examination").

B. Other Aspects of CRA Performance
HMDA Data and Lending Practices. The Board has carefully reviewed Marine Midland's 1992 and 1993 HMDA
data for Westchester County in light of Protestant's con-

4. Protestant's comments were received after the close of the comment
period. Under the Board's Rules of Procedure, the Board may, in its discretion, take into consideration comments received after the comment period
has expired. 12 C.F.R. 262.3(e).
5. 54 Federal Register 13,742 (1989).
6. Id. at 13,745.




cerns.7 In general, these data show that Marine Midland has
improved its HMDA lending record to African-American
borrowers. In particular, the 1993 HMDA data indicate an
increase in the number of loan applications received from
and the loan originations to African Americans. However,
the data also reflect some disparities in the rate of loan
originations, denials, and applications by racial group or
income level.
The Board is concerned when an institution's record
indicates disparities in lending to minority applicants and
the Board believes all banks are obligated to ensure that
their lending practices are based on criteria that assure not
only safe and sound lending, but also equal access to credit
by creditworthy applicants regardless of race. The Board
recognizes, however, that HMDA data alone provide an
incomplete measure of an 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 concluding that an institution has
engaged in illegal discrimination in lending.
The 1994 Examination found that Marine Midland's loan
policies and underwriting criteria were reasonable and did
not discriminate on any prohibited basis. Specifically, examiners noted that the loan terms, qualifying ratios and underwriting guidelines for residential mortgage loans were reasonable and comparable with industry standards. The
examination also noted that Marine Midland used a second
review program for all declined residential mortgage applications, in which underwriting supervisors reviewed the
original underwriter's decision and must concur in order for
an application to be denied.
The 1994 Examination did not find any practices that
were intended to discourage credit applications. Examiners
noted that Marine Midland solicited credit applications from
all segments of its communities, including low- and
moderate-income areas. Moreover, the 1994 Examination
found that the bank's credit practices complied with the
substantive provisions of antidiscrimination laws and regulations. Examiners also found that Marine Midland generally had a reasonable geographic distribution of residential
mortgage and home improvement loans and applications
from low- and moderate-income census tracts throughout
the bank's delineated service areas.
Marine Midland offers several special mortgage programs to its communities. Since 1990, the bank has participated in the Federal National Mortgage Association's Community Homebuyers and FannieNeighbors programs. Both
programs provide for flexible down payment methods which
are only available to borrowers who do not exceed 100
percent of the Department of Housing and Urban Development's median income guidelines. Marine Midland recently

7. The Board has reviewed the HMDA data for both Marine Midland and
Marine Midland Mortgage Corporation.

58 Federal Reserve Bulletin • January 1995

started its own Affordable Housing Loan Program to target
low- and moderate-income borrowers who do not qualify
for the other residential lending programs. The bank has
committed $10 million to this program to finance residential
mortgage loans and an additional $300,000 to assist in
financing down payments for these loans.
Marine Midland also participates in several governmentally
insured loan programs. Marine Midland has been named one
of the top two Small Business Administration ("SBA") lenders
for New York State during 1992 and 1993, and continues to
hold the SBA's preferred lender status for its commitment to
small business lending. In addition to SBA lending, Marine
Midland offers Veteran's Administration, FHA 203B, and
State of New York Mortgage Association loans, for borrowers
who meet the programs's income requirements.
The 1994 Examination found that Marine Midland participates in various community development programs across
New York State and provides loans and lines of credit to a
wide variety of local organizations that support housing,
economic development, rehabilitation or small business development. From July 1992 to July 1994, the bank's community development financing totalled $27.1 million. In
particular, as of December 31, 1993, Marine Midland had
$1.3 million in loans outstanding under a $2.7 million line
of credit to organizations dedicated to the construction and
rehabilitation of affordable housing and permanent mortgage loans for low- and moderate-income multi-family
housing in New York City, Westchester County and the
Lower Hudson Valley, all in New York. Examiners also
found that many of the bank's officers and employees
provided technical assistance to organizations located
throughout New York State that promote community development programs.
Ascertainment and Marketing. Marine Midland ascertains community credit needs in various ways. For example,
the bank has a directed call program, and its officers and
employees participate in a number of community organizations.8 Moreover, in June 1993, Marine Midland conducted
a CRA survey in five New York State markets using a
random sample of consumers residing in low- and
moderate-income zip codes to determine the level of awareness of the bank and its products and services.
Marine Midland markets its products and services primarily through advertisements in daily newspapers, local
weekly news and trade publications, and some journals and
special audience publications that focus on specific minority groups and low- and moderate-income areas. In
Westchester County, Marine Midland has advertised in several newspapers and a radio station oriented towards predominantly minority communities. The bank also conducts

8. The 1994 Examination noted that the directed call program reached 66
organizations involved with affordable housing development, community
development and rehabilitation. In addition, Marine Midland's officers and
employees participated in a number of community organizations.




banking seminars in its delineated communities and participates in affordable housing fairs sponsored by the Long
Island Board of Realtors, the Federal National Mortgage
Association and the New York State Housing Coalition.

C. Conclusion
In reviewing the convenience and needs factor under the
Bank Merger Act, the Board has carefully considered the
entire record, including Protestant's comments and the
bank's CRA record of performance. In light of all facts of
record, the Board believes that the efforts of Marine Midland to help meet the credit needs of all segments of its
communities, including low- and moderate-income neighborhoods, as well as all other convenience and needs considerations, are consistent with approval of this proposal.
Other Considerations
The Board also has concluded that the financial and managerial resources and future prospects of Marine Midland, and all
other supervisory factors the Board must consider under the
Bank Merger Act, are consistent with approval. The Board
also has considered the factors it is required to consider when
reviewing applications to establish branches pursuant to section 9 of the Federal Reserve Act (12 U.S.C. § 321 et seq.), and
has determined that those factors are consistent with approval
of the establishment of Marine Midland branches at the present
sites of the HSBC branch offices.
Based on the foregoing and all other facts of record, including the commitments made by Marine Midland, the Board has
determined that the applications should be, and hereby are,
approved. The Board's approval is specifically conditioned on
compliance by Marine Midland with all the commitments
made in connection with the applications. The commitments
and conditions relied on by the Board in reaching its decision
are deemed to be conditions imposed in writing by the Board
in connection with its findings and decision, and, as such, may
be enforced in proceedings under applicable law.
This transaction shall not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of New York,
acting pursuant to delegated authority.
By order of the Board of Governors, effective November 21, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

Legal Developments 59

Appendix
Branch offices to be acquired:
(1) 254 Canal Street, New York, New York 10013
(2)
(3)
(4)
(5)
(6)

50 Bowery, New York, New York 10013
29 Bowery, New York, New York 10002
40-52 Main Street, Flushing, New York 11354
36-54 Main Street, Flushing, New York 11354
87-03 Queens Boulevard, Elmhurst, New York 11373

ORDERS ISSUED UNDER FEDERAL RESERVE ACT

Citizens State Bank
Arlington, South Dakota
Order Approving Establishment of a Branch
Citizens State Bank, Arlington, South Dakota ("Bank"), a
state member bank, has applied under section 9 of the
Federal Reserve Act (the "Act") (12 U.S.C. § 321) to establish a branch office at 108 East Main Street, Castle wood,
South Dakota.
Notice of this application, affording interested persons an
opportunity to submit comments, has been published. The
time for filing comments has expired, and the Board has
considered the application and all comments received in
light of the factors contained in the Federal Reserve Act.
Bank, with assets of approximately $27.9 million,1 has
one office at its headquarters in Arlington. This proposal
represents Bank's first branch office.
In acting on branch applications, the Act requires the
Board to consider the financial condition of the applying
bank, the general character of its management, and whether
the corporate powers exercised are consistent with the Act.2
The Board has reviewed these factors in light of comments
opposing this proposal from another bank with a branch in
Castlewood ("Protestant") and comments from an individual (the "Individual Protestant") criticizing Bank's current
president. Protestant maintains that Bank does not have the
financial resources to support the proposed branch and that
the Castlewood community would be unable to support a
competitor institution. Protestant also contends that Bank
does not have the technological capacity to serve the credit
needs of the community.
The Board has carefully considered Protestant's comments in light of all the facts of record, including financial
information provided by Bank and information contained in
reports of examination by Bank's primary federal regulator,
the Federal Reserve Bank of Minneapolis ("Reserve

1. Asset data are as of June 30,1994.
2. See 12 U.S.C. § 322.




Bank"), that demonstrate Bank's satisfactory financial condition. Based on this review, the Board concludes that Bank
has the financial resources to support the proposed branch.
The Board also has reviewed the record before the South
Dakota Division of Banking and Finance, including a hearing before an administrative law judge, which shows support in the community for Bank's proposed branch.3 In
addition, Bank has a satisfactory record of helping to meet
the credit needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA").4 Bank will also provide automated teller machine
services, and intends subsequently to establish drive-up
facilities, as part of this proposal. Bank is a certified Farmers Home Administration ("FmHA") lender and will promote FmHA guaranteed loan programs in Castlewood.
Based on all the facts of record, including Protestant's
comments and Bank's responses, supervisory examination
information, and evidence from the state's branch approval
proceedings, the Board does not believe that Protestant's
comments warrant denial of this application.
Comments from the Individual Protestant criticize Bank's
current president by alleging that Bank improperly has
denied Individual Protestant's wife promotional opportunities as an employee of Bank, and rejected a loan for
Individual Protestant's business. These comments have
been carefully considered in light of all the facts of record,
including information provided by Bank, reports of examination, and other information from the Reserve Bank that
specifically evaluate Bank's management. Based on this
review, and all the facts in this application, the Board does
not believe that the circumstances described in Individual
Protestant's comments warrant denial of this application.5
The Board concludes that all the factors required to be
considered under section 9 of the Act and the Board's
regulations to establish a branch, including the financial
condition of the applicant, the general character of its
management, and the proposed exercise of corporate powers, are consistent with approval.
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 is specifically
conditioned on compliance by Bank with all the commitments made in connection with these applications. For
purposes of this action, these commitments and conditions
are considered conditions imposed in writing by the Board

3. Protestant also objected to Bank's proposal in the public hearing held as
part of the state proceedings. The administrative law judge concluded in
these proceedings that there was sufficient community need to support
Bank's Castlewood branch and that Bank had the financial and managerial
resources to operate the proposed branch.
4. Bank's most recent examination for CRA performance by the Reserve
Bank was as of October 1993.
5. The Board also notes that civil courts have the authority to provide this
commenter with appropriate remedies if he is able to establish grounds for
such remedies.

A72 Federal Reserve Bulletin • January 1995

in connection with its findings and decisions, and, as such,
may be enforced in proceedings under applicable law.
This branch shall be in operation no later than one year
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 Minneapolis, acting pursuant to delegated
authority.
By order of the Board of Governors, effective November 14, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder and Governors Kelley, LaWare, Phillips, and Yellen. Absent and not voting: Governor Lindsey.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT
INSURANCE CORPORATION IMPROVEMENT ACT

By the Board
First Security Bank
Fort Lupton, Colorado
Order Approving Applications to Purchase Certain Assets
and Assume Certain Liabilities of a Savings and Loan
Association and the Establishment of Branches
First Security Bank, Fort Lupton, Colorado ("FSB"), a state
member bank, proposes to acquire certain assets and assume certain liabilities of seven Colorado branches of World
Savings and Loan Association, Oakland, California
("World").1 To effect this proposal, FSB has applied under
section 18(c) of the Federal Deposit Insurance Act
(12 U.S.C. § 1828(c)) ("Bank Merger Act"), and section
5(d)(3) of the FDI Act (12 U.S.C. § 1815(d)(3)), as amended
by the Riegle Community Development and Regulatory
Improvement Act of 1994, Pub. L. No. 103-325, 319, 108
Stat. 2160 (1994).2 FSB also has applied under section 9 of
the Federal Reserve Act (12 U.S.C. § 321 et seq.) to establish and operate branch offices at five of these locations.3
Notice of the applications, affording interested persons an
opportunity to submit comments, has been given in accordance
with the Bank Merger Act and the Board's Rules of Procedure

1. See Appendix for list of World branches to be acquired.
2. Because FSB, a state member bank, is a member of the Bank Insurance
Fund and is acquiring deposits of branches of World, a member of the
Savings Association Insurance Fund, prior Board approval also is required
under section 5(d)(3) of the FDI Act. This section requires the Board to
follow the procedures and consider the factors set forth in the Bank Merger
Act.
3. FSB proposes to merge the Brush and Yuma, Colorado, branches of
World into FSB's existing branches. The remaining five branches will
become new branches of FSB.




(12 C.F.R. 262.3(b)). Reports on the competitive effects of the
merger were requested from the United States Attorney General, the Office of Thrift Supervision ("OTS"), and the Federal
Deposit Insurance Corporation ("FDIC"). The time for filing
comments has expired, and the Board has considered the
applications and all the facts of record in light of the factors set
forth in the Bank Merger Act, section 5(d)(3) of the FDI Act,
and section 9 of the Federal Reserve Act.
FSB is a bank subsidiary of Pinnacle Bancorp, Inc., Central
City, Nebraska ("Pinnacle"). Pinnacle, with consolidated assets of $1.1 billion, is the 13th largest banking organization in
Colorado, controlling total deposits of $274.4 million, representing approximately 1 percent of total deposits in depository
institutions in the state.4 Under this proposal, FSB would
acquire seven Colorado branches of World, which control
deposits of $174.5 million, representing less than 1 percent of
deposits in depository institutions in the state. Upon acquisition of these branches, Pinnacle would become the eighth
largest depository institution in Colorado, controlling deposits
of $448.9 million, representing 1.6 percent of total deposits in
depository institutions in the state.
Competitive Considerations
FSB and World compete directly in the Morgan/Washington
County5 and the Yuma County6 banking markets, both in
Colorado.7 Upon consummation of the proposal, FSB would
become the largest depository institution in the Morgan/
Washington banking market,8 controlling $106.3 million in
deposits in depository institutions in the market ("market
deposits"), representing 28.7 percent of market deposits.
The Herfindahl-Hirschman Index ("HHI") would increase
by 349 points to 1998.
A number of factors indicate that the increase in concentration levels in both of these markets, as measured by the
4. Asset, deposit, and market data are as of June 30, 1994. In this context,
depository institutions include commercial banks, savings banks, and savings
associations.
5. The Morgan/Washington County banking market is defined by Morgan
and Washington Counties in Colorado.
6. The Yuma County banking market is defined by Yuma County, Colorado.
7. FSB has also received approval to open a de novo branch in the Logan
County, Colorado, banking market where World has a branch that would be
acquired under this proposal. If the de novo branch opens before the
acquisition is completed, some existing competition would be eliminated,
however, any effect on competition from this structural change would be
minimal. In light of all facts of record, the Board concludes that the
acquisition of the branches of World would not have a significant effect on
competition in that banking market.
8. 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 World's branches
would be transferred to FSB 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).

Legal Developments 61

HHI, tend to overstate the competitive effects of this proposal. In the Morgan/Washington banking market, nine
competitors would remain following consummation of the
proposal,9 including two institutions that would control 24.9
percent and 19.9 percent of the market, respectively. In
addition, over the last two years, World has experienced an
average deposit loss of 6.1 percent per year while almost all
of its competitors have shown gains in deposits. Moreover,
entry by out-of-state bank holding companies into a Colorado banking market is permitted under Colorado law.10
Colorado also permits limited statewide de novo branching,11 and in 1993, a bank from an adjacent county entered
the Morgan/Washington banking market de novo.12
Consummation of the proposal in the Yuma County
banking market would not exceed the Department of Justice
guidelines. FSB would become the second largest depository institution in the Yuma County banking market, controlling $46.1 million in deposits, representing 29.3 percent
of market deposits. The HHI would increase by 189 points
to 3072. In addition, FSB proposed to acquire the smallest
market participant, and after consummation of the proposal,
the largest depository institution in the market would continue to control over 40 percent of the market deposits.
As noted above, the Board sought comments from the
United States Attorney General, the OTS, and the FDIC on the
competitive effects of this proposal. The Attorney General has
indicated that the proposal is not likely to have a significantly
adverse effect on competition in any relevant banking market.
Neither the OCC nor the FDIC has objected to the acquisition.
On the basis of all the other facts of record, and for the reasons
discussed above, the Board concludes that consummation of
this proposal would not result in significantly adverse effects
on competition or on the concentration of banking resources in
any relevant banking market.
Other Considerations
The Board also concludes that the financial resources and
future prospects of FSB and World, and considerations
relating to the convenience and needs of the community to
be served that the Board must consider under the Bank
Merger Act, are consistent with approval. In addition, the
Board has considered the factors it is required to consider in

applications for the establishment of branches pursuant to
section 9 of the Federal Reserve Act, and finds those factors
also are consistent with approval. Moreover, 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
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) FSB currently meets, and upon consummation of the
proposed transaction will continue to meet, all applicable
capital standards; and
(3) The proposed transaction would comply with the
interstate banking provision of the Bank Holding Company Act (12 U.S.C. § 1842(d)) if the Colorado branches
of World were state banks that FSB was applying to
acquire directly. See 12 U.S.C. § 1815(d)(3).
Based on the foregoing and all the facts of record, the
Board has determined that these applications should be, and
hereby are, approved. The Board's approval of these applications is conditioned upon FSB's compliance with the
commitments made in connection with these applications.
This approval is further subject to FSB's obtaining any
required approvals under applicable state laws. For the
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.
This transaction may not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of Kansas City,
acting pursuant to delegated authority.
By order of the Board of Governors, effective November 28, 1994.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder and Governors Kelley, LaWare, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON

Deputy Secretary of the Board

Appendix
9. After consummation of this proposal, a larger number of competitors in
terms of population per competitor would remain in this banking market
(3079 residents per competitor) compared to non-metropolitan banking markets in Colorado (3102 residents per competitor) according to the U.S.
Census Bureau's 1992 population estimates.
10. Colorado's interstate banking statute permits out-of-state bank holding
companies nationwide to acquire banking organizations located in Colorado,
subject to specified statutory requirements and a certification by state banking officials that the acquisition satisfies such requirements. See Colo. Rev.
Stat. § 11-6.4-103(1993).
11. See Colo. Rev. Stat. § 11-25-103 (1993).
12. This bank was subsequently acquired by a large multi-state bank
holding company.




Branch offices of World to be acquired by FSB:
(1)
(2)
(3)
(4)
(5)
(6)
(7)

190 Main Street, Akron, Colorado
203 Clayton Street, Brush, Colorado
401 Main Street, Fort Morgan, Colorado
106 South Interocean Avenue, Holyoke, Colorado
106 Cedar Street, Julesburg, Colorado
South 3rd & Ash Street, Sterling, Colorado
315 South Main Street, Yuma, Colorado

A72 Federal Reserve Bulletin • January 1995

ACTIONS TAKEN UNDER SECTIONS 5(D)(3)

AND 18(C)

OF THE FEDERAL DEPOSIT INSURANCE 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.

Acquiring
Bank(s)
The Fifth Third Bank,
Cincinnati, Ohio

Acquired
Thrift
Mutual Federal Savings
Bank of Miamisburg,
Miamisburg, Ohio

Reserve
Bank
Cleveland

Approval
Date
October 28, 1994

APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT

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

Section 3

Applicant(s)
First United Bancshares, Inc.,
El Dorado, Arkansas
First United of Texas, Inc.,
Texarkana, Texas

Effective
^ ^

Bank(s)
FirstBank,
Texarkana, Texas

November 16, 1994

APPLICATIONS APPROVED UNDER BANK HOIDING COMPANY ACT

By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.

Section 3

Applicant(s)
Amcore Financial, Inc.,
Rockford, Illinois
Ames National Corporation,
Ames, Iowa




Bank(s)
NBA Holding Company,
Aledo, Illinois
Randall-Story State Bank,
Story City, Iowa

Reserve
Bank

Effective
Date

Chicago

November 2, 1994

Chicago

November 10, 1994

Legal Developments 63

Section 3—Continued
Applicant(s)
Bellevue Service Company,
Bellevue, Iowa
Bellevue State Bank Employee
Stock Ownership Plan,
Bellevue, Iowa
Citizens Bancshares, Inc.,
Salineville, Ohio
Clinton Bancorp, Inc.,
Clinton, Kentucky
Community First Bankshares, Inc.,
Fargo, North Dakota
Decatur Investment, Inc.,
Oberlin, Kansas
Delhi Bank Corp.,
Delhi, New York
Fairbanco Holding Company, Inc.
ESOP,
Fairburn, Georgia
Falcon Bancshares, Inc.,
Laredo, Texas
FirstBank Holding Company of
Colorado Employee Stock
Ownership Plan,
Lakewood, Colorado
First Citizens BancShares, Inc.,
Raleigh, North Carolina
Flint Creek Holding Company,
Philipsburg, Montana
Frandsen Financial Corporation,
Forest Lake, Minnesota
Franklin Bancorp, Inc.,
Minneapolis, Minnesota
Galatia Bancorp, Inc.,
Galatia, Illinois
Gulf West Banks, Inc.,
St. Petersburg, Florida
Heritage Bancorp, Inc.,
Hutto, Texas
Horizon Bancshares, Inc.,
Pensacola, Florida
KeyCorp,
Cleveland, Ohio
Mediapolis Bancorporation,
Mediapolis, Iowa
Minnesota Valley Bancshares, Inc.,
Minnetonka, Minnesota




Bank(s)
Bellevue State Bank,
Bellevue, Iowa
Bellevue Service Company,
Bellevue, Iowa
Unity Bancorp, Inc.,
New Waterford, Ohio
Clinton Bank,
Clinton, Kentucky
Minowa Bancshares, Inc.,
Decorah, Iowa
Selden Investment, Inc.,
Selden, Kansas
The Delaware National
Bank of Delhi,
Delhi, New York
Fairbanco Holding
Company, Inc.,
Fairburn, Georgia
Falcon National Bank,
Laredo, Texas
FirstBank Holding Company
of Colorado,
Lakewood, Colorado
Pace American Bank,
Lawrenceville, Virginia
Flint Creek Valley Bank,
Philipsburg, Montana
Sturgeon Lake State Bank,
Sturgeon Lake, Minnesota
Michael Bancorporation,
Inc.,
St. Paul, Minnesota
Mounds Bancorp, Inc.,
Mounds, Illinois
Mercantile Bank,
St. Petersburg, Florida
Hutto State Bank,
Hutto, Texas
Horizon Bank of Florida,
Pensacola, Florida
First Citizens Bancorp of
Indiana,
Anderson, Indiana
Mediapolis Savings Bank,
Mediapolis, Iowa
Minnwest, Inc.,
Monnetonka, Minnesota

Reserve
Bank

Effective
Date

Chicago

October 31, 1994

Chicago

October 31, 1994

Cleveland

October 21, 1994

St. Louis

November 17, 1994

Minneapolis

November 1, 1994

Kansas City

November 4, 1994

New York

November 18, 1994

Atlanta

November 8, 1994

Dallas

November 23, 1994

Kansas City

November 7, 1994

Richmond

October 28, 1994

Minneapolis

November 9, 1994

Minneapolis

November 10, 1994

Minneapolis

October 28, 1994

St. Louis

November 8, 1994

Atlanta

November 7, 1994

Dallas

November 18, 1994

Atlanta

November 8, 1994

Cleveland

November 3, 1994

Chicago

November 16, 1994

Minneapolis

November 22, 1994

A72 Federal Reserve Bulletin • January 1995

Section 3—Continued
Applicant(s)
Norwest Corporation,
Minneapolis, Minnesota
Norwest Corporation,
Minneapolis, Minnesota
Pinnacle Banc Group, Inc.,
Oak Brook, Illinois
Premier Bankshares Corporation,
Tazewell, Virginia
Randall Holding Company, Inc.,
Randall, Minnesota
Raritan State Bancorp, Inc.,
Raritan, Illinois
Regency Bancorp,
Fresno, California
Regions Corporation,
Birmingham, Alabama
Regions Financial Corporation,
Birmingham, Alabama
Regions Corporation,
Birmingham, Alabama
Riverside Acquisition Corporation,
Minneapolis, Minnesota
Riverway Holdings, Inc.,
Houston, Texas

Riverway Holdings of Delaware,
Inc.,
Wilmington, Delaware
Saban S.A.,
Panama
RNYC Holdings Limited,
Gibraltar
SN, Ltd.,
Moab, Utah
South Pointe Financial Corporation,
Marion, Illinois
Valley Financial Corporation,
Roanoke, Virginia
Westamerica Bancorporation,
San Rafael, California




Bank(s)

Reserve
Bank

Effective
Date

Ken-Caryl Investment
Company,
Littleton, Colorado
Texas National Bankshares,
Inc.,
Midland, Texas
Acorn Financial Corp,
Oak Park, Illinois
Dickenson-Buchanan Bank,
Haysi, Virginia
Randall State Bank,
Randall, Minnesota
Raritan State Bank,
Raritan, Illinois
Regency Bank,
Fresno, California
Regions Bank of Louisiana,
Baton Rouge, Louisiana
Regions Bank of Louisiana,
Baton Rouge, Louisiana

Minneapolis

November 8, 1994

Minneapolis

October 28, 1994

Chicago

November 23, 1994

Richmond

November 23, 1994

Minneapolis

November 8, 1994

Chicago

November 10, 1994

San Francisco

November 17, 1994

Atlanta

October 27, 1994

Atlanta

October 27, 1994

Riverside Bancshares
Corporation,
Minneapolis, Minnesota
Riverway Holdings of
Delaware, Inc.,
Wilmington, Delaware
Riverway Bank,
Houston, Texas
Riverway Bank,
Houston, Texas

Minneapolis

November 7, 1994

Dallas

November 23, 1994

Dallas

November 23, 1994

Republic New York
Corporation,
New York, New York
First Western
Bancorporation,
Moab, Utah
South Pointe Bank,
Marion, Illinois
Valley Bank, National
Association,
Roanoke, Virginia
PV Financial,
Modesto, California

New York

October 28, 1994

San Francisco

October 26, 1994

St. Louis

November 16, 1994

Richmond

November 15, 1994

San Francisco

November 17, 1994

Legal Developments 65

Section 4
Applicant(s)
Alpha Financial Group, Inc.,
Minonk, Illinois
American Bancorporation,
Wheeling, West Virginia
Bellevue State Bank Employee
Stock Ownership Plan,
Bellevue, Iowa
Fifth Third Bancorp,
Cincinnati, Ohio
First Banks, Inc.,
Clayton, Missouri
First of America Bank Corporation,
Kalamazoo, Michigan
First of America Bank Corporation,
Kalamazoo, Michigan
Haugo Bancshares, Inc.,
Sioux Falls, South Dakota

Norwest Corporation,
Minneapolis, Minnesota
Norwest Financial Special Services,
Inc.,
Des Moines, Iowa
Norwest Financial, Inc.,
Des Moines, Iowa

Provident Bancorp, Inc.,
Cincinnati, Ohio
Southern National Banks, Inc.,
Fort Walton Beach, Florida
Stratford Bancshares, Inc.,
Stratford, Texas
Stratford Bancshares of Delaware,
Inc.,
Wilmington, Delaware
Summit Financial Corporation,
Greenville, South Carolina




Nonbanking
Activity/Company
Alpha Insurance Services,
Inc.,
Minonk, Illinois
Buckeye Savings Bank,
St. Clairsville, Ohio
to engage in insurance
activities
Mutual Federal Savings
Bank of Miamisburg,
Miamisburg, Ohio
River Valley Holdings, Inc.,
Chicago, Illinois
F&C Bancshares, Inc.,
Murdock, Florida
Presidential Holding
Corporation,
Sarasota, Florida
to engage de novo in
making, acquiring, and
servicing loans for its
own account
to engage de novo in the
following nonbanking
activities in the state of
Michigan: (1) consumer
finance; (2) sales finance;
and (3) the sale of
bookkeeping, payroll, and
other management
financial reporting
services and data
processing services
West Shell Mortgage
Company,
Cincinnati, Ohio
First Appraisal Corporation,
Fort Walton Beach,
Florida
Panhandle Management
Corporation,
Dumas, Texas

Academy Finance, Inc.,
Kingstree, South Carolina
E-Z Loans, Inc.,
Lake City, South Carolina

Reserve
Bank

Effective
Date

Chicago

November 10, 1994

Cleveland

October 28, 1994

Chicago

October 31, 1994

Cleveland

October 28, 1994

St. Louis

October 28, 1994

Chicago

November 4, 1994

Chicago

November 2, 1994

Minneapolis

Minneapolis

November 3, 1994

November 22, 1994

Cleveland

October 31, 1994

Atlanta

November 9, 1994

Dallas

November 16, 1994

Richmond

November 18, 1994

A72 Federal Reserve Bulletin • January 1995

Sections 3 and 4

Applicant(s)
Finger Interests Number One, Ltd.
Houston, Texas
Charter Bancshares, Inc.,
Houston, Texas
NationsBank Corporation,
Charlotte, North Carolina

Nonbanking
Activity/Company
CBH, Inc.,
Wilmington, Delaware
West Loop Savings & Loan
Association,
Houston, Texas
West Loop Savings & Loan
Association,
Houston, Texas

Reserve
Bank

Effective
Date

Dallas

November 10, 1994

Richmond

November 10, 1994

APPLICATIONS APPROVED UNDER BANK MERGER 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.

Applicant(s)
Banco Popular de Puerto Rico,
San Juan, Puerto Rico
Humboldt Bank,
Eureka, California

Effective
Date

Bank(s)
The Chase Manhattan Bank, N.A.,
New York, New York
U.S. Bank of California
Sacramento, California

November 22, 1994
November 30, 1994

APPLICATIONS APPROVED UNDER BANK MERGER ACT

By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.

Applicant(s)
F & M Bank-Massanutten,
Harrisonburg, Virginia
New Pace American Bank,
Lawrenceville, Virginia




Bank(s)
F & M Bank-Broadway,
Broadway, Virginia
Pace American Bank,
Lawrenceville, Virginia

Reserve
Bank

Effective
Date

Richmond

November 18, 1994

Richmond

October 28, 1994

Legal Developments 67

Bank Merger Act—Continued
»
Applicant(s)

_ . ..
Bank(s)

Old Kent Bank and Trust Company,
Grand Rapids, Michigan

Old Kent Bank of Big
Rapids,
Big Rapids, Michigan
Old Kent Bank of Cadillac,
Cadillac, Michigan
Old Kent Bank-Central,
Owosso, Michigan
Old Kent Bank-East,
Brighton, Michigan
Old Kent Bank of Gaylord,
Gaylord, Michigan
Old Kent Bank of Grand
Haven,
Grand Haven, Michigan
Old Kent Bank-Grand
Traverse,
Traverse City, Michigan
Old Kent Bank of Hillsdale,
Hillsdale, Michigan
Old Kent Bank of Holland,
Holland, Michigan
Old Kent Bank of
Ludington,
Ludington, Michigan
Old Kent Bank of Petoskey,
Petoskey, Michigan
Old Kent Bank of St. Johns,
St. Johns, Michigan
Old Kent Bank-Southeast,
Trenton, Michigan
Old Kent Bank-Southwest,
Kalamazoo, Michigan
Bank One Fresno, National
Association,
Fresno, California

ValliWide Bank,
Fresno, California




Reserve

Effective
Date

Chicago

November 21, 1994

San Francisco

November 14, 1994

Legal Developments continued on next page.

A72 Federal Reserve Bulletin • January 1995

PENDING CASES INVOLVING THE BOARD OF GOVERNORS

This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is
not named a party.
Cavallari v. Board of Governors, No. 94-4183 (2d Circuit,
filed October 17, 1994). Petition for review of Board
order of prohibition against a former outside counsel to a
national bank. Petitioner's brief is due on December 9,
1994.
Board of Governors v. MacCallum, No. 94 Civ. 5652 (WK)
(S.D. New York, filed August 3, 1994). Action to freeze
assets of individual pending administrative adjudication
of civil money penalty assessment by the Board. On
August 3, 1994, the court issued an order temporarily
restraining the transfer or disposition of the individual's
assets. The order has been amended and continued by
stipulation.
National Title Resource Agency v. Board of Governors, No.
94-2050 (8th Cir., filed April 28, 1994). Petition for
review of Board's order, issued under section 4 of the
Bank Holding Company Act, approving the application
of Norwest Corp., Minneapolis, Minnesota, to acquire
Double Eagle Financial Corp., Phoenix, Arizona, and its
subsidiary, United Title Agency, Inc., and thereby engage
in title insurance agency activities and real estate settlement services (80 Federal Reserve Bulletin 453 (1994)).
Oral argument was held November 17, 1994.
Scott v. Board of Governors, No. 94-4117 (10th Cir.), filed
April 28, 1994. Appeal of dismissal of action against
Board and others for damages and injunctive relief for
alleged constitutional and statutory violations caused by
issuance of Federal Reserve notes. The action was dismissed on July 21, 1994. On August 4, 1994, the appellant filed a motion for consideration.
Beckman v. Greenspan, No. CV 94-41-BCG-RWA (D.
Mont., filed April 13, 1994). Action against Board and
others seeking damages for alleged violations of constitutional and common law rights. The Board's motion to
dismiss was filed May 19, 1994.
DLG Financial Corp. v. Board of Governors, No. 94-10078
(5th Cir., filed January 20, 1994). Appeal of district court
dismissal of appellants' action to enjoin the Board and the
Federal Reserve Bank of Dallasfromtaking certain enforcement actions, and for money damages on a variety of tort
and contract theories. The case was consolidated on appeal
with Board of Governors v. DLG Financial Corp., Nos.
93-2944 and 94-20013 (5th Cir., filed December 14, 1993
and December 31,1993), an appeal of a temporary restraining order and a preliminary injunction obtained by the
Board freezing assets of a corporation and an individual
pending administrative adjudication of civil money penalty



assessments by the Board. On August 15,1994, the court of
appeals affirmed both the asset freeze order obtained by the
Board and the district court's dismissal of plaintiffs' claims.
The appellants filed a petition for certiorari on November
14, 1994.
Scott v. Board of Governors, No. 94-0104 (D. D.C., filed
January 21, 1994). Petition for review of a Board order
approving the application of Society Corporation, Cleveland, Ohio, to merge with KeyCorp, Albany, New York
(80 Federal Reserve Bulletin 253 (1994)). On July 29,
1994, the Board filed a motion to dismiss.
Jackson v. Board of Governors, No. CV-N-93-401-ECR
(D. Nev., filed June 14, 1993). Pro se action for
violation of a prisoner's civil rights. On August 23,
1994, the court granted the Board's motion to dismiss.
The plaintiff filed a notice of appeal to the Ninth
Circuit on September 22, 1994.
Bennett v. Greenspan, No. 93-1813 (D. D.C., filed April 20,
1993). Employment discrimination action. A jury verdict
for the plaintiff was rendered on October 13, 1994. The
Board's motion for a new trial on the issue of damages is
pending.
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. An order dismissing the case was entered on November 18, 1994.
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. 91-CIV-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 ORDERS ISSUED BY THE
BOARD OF GOVERNORS

Bank Saderat Iran
Tehran
The Federal Reserve Board announced on November 29,
1994, the issuance of a Cease and Desist Order and an Order
of Assessment of a Civil Money Penalty against Bank Saderat
Iran, Tehran, and Bank Saderat's New York agency.

Legal Developments 69

Bank Sepah Iran
Tehran

WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS

The Federal Reserve Board announced on November 29,
1994, the issuance of a Civil Money Penalty against Bank
Sepah Iran, Tehran.

Bank Melli Iran
Tehran

Earl E. Echols
Blackshear, Georgia

The Federal Reserve Board announced on November 29,
1994, the execution of a Written Agreement between the
Federal Reserve Bank of New York and the Superintendent of
Banks of the State of New York and an Order of Assessment
of a Civil Money Penalty against Bank Melli Iran, Tehran, and
Bank Melli's New York and Los Angeles agencies.

The Federal Reserve Board announced on November 10,
1994, the issuance of an Order of Assessment of a Civil
Money Penalty against Earl E. Echols, a former director of
The Blackshear Bank, Blackshear, Georgia.

Thomas E. Echols
Blackshear, Georgia
The Federal Reserve Board announced on November 10,
1994, the issuance of an Order of Prohibition and an Order
of Assessment of a Civil Money Penalty against Thomas E.
Echols, a former institution-affiliated party of The Blackshear Bank, Blackshear, Georgia.

Sebastian Bankshares, Inc.
Barling, Arkansas
The Federal Reserve Board announced on November 10,
1994, the issuance of Cease and Desist Orders against
Sebastian Bankshares, Inc., Barling, Arkansas, and its
subsidiary bank, River Valley Bank & Trust, Lavaca,
Arkansas.




CBC Bancorp, Inc.
Woodbridge, Connecticut
The Federal Reserve Board announced on November 14,
1994, the execution of a Written Agreement between the
Federal Reserve Bank of Boston and CBC Bancorp, Inc.,
Woodbridge, Connecticut.

First State Bank of Manchester
West Manchester, Ohio
The Federal Reserve Board announced on November 30,
1994, the execution of a Written Agreement by and among
the Federal Reserve Bank of Cleveland, the Superintendent
of Banks for the State of Ohio, and the First State Bank of
West Manchester, West Manchester, Ohio.

A1

Financial and Business Statistics
CONTENTS

WEEKLY REPORTING COMMERCIAL BANKS

A3 Guide to Tabular Presentation

Assets and liabilities
A21 Large reporting banks
A23 Branches and agencies of foreign banks

Domestic Financial Statistics

MONEY STOCK AND BANK CREDIT

FINANCIAL MARKETS

A4

A24 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
A27 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

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 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

COMMERCIAL BANKING INSTITUTIONS
A18 Assets and liabilities, Wednesday figures




A28
A29
A30
A30

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
A33 Federal and federally sponsored credit
agencies—Debt outstanding

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
A35 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

A72 Federal Reserve Bulletin • January 1995

Domestic Financial Statistics—Continued

REPORTED BY BANKS
IN THE UNITED STATES

REAL ESTATE
A37 Mortgage markets
A3 8 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A39 Total outstanding
A39 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
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

International Statistics
SUMMARY STATISTICS
A53
A54
A54
A54

U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A55 Selected U.S. liabilities to foreign official
institutions




A55
A56
A58
A59

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A59 Banks' own claims on unaffiliated foreigners
A60 Claims on foreign countries—Combined
domestic offices and foreign branches

REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES
A61 Liabilities to unaffiliated foreigners
A62 Claims on unaffiliated foreigners

SECURITIES HOLDINGS AND TRANSACTIONS
A63 Foreign transactions in securities
A64 Marketable U.S. Treasury bonds and
notes—Foreign transactions

INTEREST AND EXCHANGE RATES
A65 Discount rates of foreign central banks
A65 Foreign short-term interest rates
A66 Foreign exchange rates

A67 Guide to Statistical Releases and
Special Tables

A3

Guide to Tabular Presentation
SYMBOLS AND

c
e
n.a.
n.e.c.
p
r
*
0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7

GENERAL

ABBREVIATIONS

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

G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
VA

Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
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
Department of Veterans Affairs

INFORMATION

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




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

A4

DomesticNonfinancialStatistics • January 1995

1.10

RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1993

1994

1994

Monetary or credit aggregate
Q4

Q1

Q2

Q3

June

July

Aug/

Sept.1

Oct.

14.2
14.1
15.6
9.8

3.1
2.5
3.7
10.2

-4.4
-3.6
-5.4
8.4

-2.5
-2.6
-4.2
7.3

-4.0
-8.0
-6.7
7.7

2.2
2.2
-.3
8.1

-6.0
-4.0
-6.3
6.3

-.7
-1.9
-1.1
5.4

-6.1
-.8
-4.0
6.7

9.4
2.3
2.6
2.0
4.9

6.0
1.9
.3
2.5
5.3

1.9
1.9
.7
1.2
5.4

3.C
.7'
1.7r
1.3
4.1

3.7
-2.3
.0
-1.9
3.5r

7.1r
4.7
6 . rr
7.2r
2.4

-2.2
-2.0
-2.1
-2.0
5.9

1.0
-.5
1.2
-2.2
5.3

-3.6
-1.2
3.4
n.a.
n.a.

-.8
4.0

.0
-8.0

2.0
-6.2

-,4 r
7.0r

-5.1
13.3

3.6r
13.5

-2.0
-2.8

-1.2
10.8

.0
28.6

3.6
-7.4
-.4

4.3
-5.2
-2.6

-3.3
.1
-2.5 r

-4.1
8.9
10.1r

-7.7
6.7
.(f

-2.2'
5.7
7.0r

-2.8
15.4
14.3

-3.6
11.9
21.4

-12.1
17.0
29.9

-.4
-9.4
-6.7

.5
-11.5
-8.5

.2
-7.5
-6.5

-11. f
-2.4 r
4.8

-10.3
-5.1
6.0

-9.3
.0
15.9

-17.0
-3.2
-5.9

-16.6
2.4
23.6

-16.0
13.4
23.2

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

1.2
8.8

-.1
-26.7

17.7
-22.8

1.01
-6.0

-19.1
1.4

14.0
9.9

-2.0
-11.2

-2.0
-9.9

8.9
52.9

Debt components4
20 Federal
21 Nonfederal

6.1
4.5

7.3
4.6

5.5
5.4r

4.9
2.9

l.l r
3.0

6.1
5.8

6.1
5.1

1
2
3
4

Reserves of depository institutions2
Total
Required
Nonborrowed
Monetary base3

5
6
7
8
9

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

Nontransaction components
10 In M25
11 InM3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time8,9
Thrift institutions
15 Savings, including MMDAs
16 Small time7
17 Large time8
12
13
14

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 sill 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 (IRlAs) 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




3.9
4.1

n.a.
n.a.

Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only
money market funds. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Also excluded is
the estimated amount of overnight RPs and Eurodollars held by institution-only money
market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as
a whole and then adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fluid 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: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's
flow of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
5. Sum of (1) 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.
6. 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 (S) a consolidation
adjustment that represents the estimated amount of overnight RPs and Eurodollars held by
institution-only money market funds. This sum is seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of less
than $100,000. All IRA and Keogh account balances at commercial banks and thrift
institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding
those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market fluids,
depository institutions, the U.S. government, and foreign banks and official institutions.

Money Stock and Bank Credit A5
1.11

RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1
Millions of dollars
Average of
daily figures

Average of daily figures for week ending on date indicated

1994

1994
Oct. 5

Oct. 12

Oct. 19

391,811

393,136

396,235

394,426

394,749

353,810
0

353,769
917

356,211
1,052

353,754
1,791

353,467
2,211

3,817
0
0

3,812
0
0

3,806
159
0

3,793
559
0

3,762
161
0

3,757
448
0

9
424
0
535
32,677

60
443
0
832
32,874

94
472
0
467
33,156

49
424
0
517
33,495

12
381
0
444
33,783

10
348
0
719
33,882

32
303
0
535
33,996

11,054
8,018
22,758

11,054
8,018
22,688

11,054
8,018
22,702

11,054
8,018
22,716

11,054
8,018
22,730

11,054
8,018
22,744

11,054
8,018
22,758

11,053
8,018
22,772

386,408
372

388,817
367

387,573
371

385,861
384

385,137
365

386,399
364

389,497
369

389,572
367

388,763
371

5,220
188

5,953
199

5,553
192

5,576
171

7,367
179

6,195
229

6,150
263

5,594
191

5,112
177

5,078
176

5,551
311

5,156
325

4,851
336

5,134
316

5,101
331

5,099
300

5,032
330

5,054
339

4,697
346

4,715
325

Sept. 14

Sept. 21

Sept. 28

394,856

394,266

393,002

354,275
1,648

355,484
309

354,977
0

3,822
346
0

3,772
349
0

3,828
1,000
0

26
446
0
522
32,887

45
448
0
730r
32,824

20
344
0
559
33,890

11,054
8,018
22,636

11,054
8,018
22,698

384,403
354

Aug.

Sept.

1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account . . .
3
Held under repurchase agreements ..
Federal agency obligations
Bought outright
4
5
Held under repurchase agreements ..
6 Acceptances
Loans to depository institutions
Adjustment credit
7
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets

390,696

392,939r

348,753
3,299

354,429
296

3,883
880
0

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

Oct.

Oct. 26

SUPPLYING RESERVE FUNDS

ABSORBING RESERVE FUNDS

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

11,187

11,178

11,724

11,144

11,151

11,384

11,853

11,851

11,420

11,672

25,190

25,119"

24,847

25,741

24,404

24,890

24,546

25,157

24,566

25,492/

Wednesday figures

End-of-month figures
Sept. 14

Sept. 21

Sept. 28

Oct. 5

Oct. 12

Oct. 19

Oct. 26

395,756

393,482

393,163

387,959

393,065

393,716

395,316

395,802

352,313
3,615

355,896
0

354,496
0

349,846
0

354,761
0

353,925
0

353,103
4,180

356,241
1,139

3,806
370
0

3,744
400
0

3,817
0
0

3,817
0
0

3,806
0
0

3,806
0
0

3,762
0
0

3,762
375
0

3,744
500
0

35
459
0
317
31,960

69
436
0
188r
33,448

17
247
0
579
34,841

13
432
0
539
32,785

301
459
0
1,085
33,005

92
478
0
529
33,209

12
389
0
421
33,677

10
373
0
1,804
33,841

11
326
0
-281
33,840

82
288
0
-231
34,039

11,054
8,018
22,660

11,054
8,018
22,730

11,053
8,018
22,786

11,054
8,018
22,688

11,054
8,018
22,702

11,054
8,018
22,716

11,054
8,018
22,730

11,054
8,018
22,744

11,053
8,018
22,758

11,053
8,018
22,772

386,010
368

385,516
363

389,604
363

387,485
387

386,072
366

386,277
363

388,318
369

390,785
367

389,807
372

389,675
363

5,994
188

6,848
342

5,164
223

5,581
192

11,359
188

6,658
399

5,283
181

5,022
165

5,510
170

5,912
178

5,514
289

5,032r
318

4,790
392

5,134
286

5,101
300

5,099
256

5,032
335

5,054
326

4,697
280

4,715
320

Aug.

Sept.

1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account .
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
Held under repurchase agreements
5
6 Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
0 Float
1 Other Federal Reserve assets

393,969

393,466r

349,110
6,519

353,010
2,140

3,837
1,732
0

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

Oct.

SUPPLYING RESERVE FUNDS

ABSORBING RESERVE FUNDS

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

10,864

12,012

12,584

11,003

10,948

11,181

11,657

11,182

11,247

11,452

26,476

24,837r

24,494

25,173

20,604

19,513

23,693

22,632

25,064

25,030

1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought
back under matched sale-purchase transactions.




3. Excludes required clearing balances and adjustments to compensate for float.

A6

DomesticNonfinancialStatistics • January 1995

1.12

RESERVES AND BORROWINGS

Depository Institutions1

Millions of dollars
Prorated monthly averages of biweekly averages
1994

1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks2
Total vault cash3 4
Applied vault cash
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9

1991

1992

1993

Dec.

Reserve classification

Dec.

Dec.

Apr.

May

June

July

Aug.

Sept.r

Oct.

26,659
32,509
28,872
3,637
55,532
54,553
979
192
38
1

25,368
34,542
31,172
3,370
56,540
55,385
1,155
124
18
1

29,374
36,812
33,484
3,328
62,858
61,795
1,063
82
31
0

29,614
35.215
32,027
3,188
61,641
60,489
1,151
124
57
0

26,790
35,892
32,483
3,409
59,273
58,358
915
200
134
0

26,502
36,898
33,422
3,476
59,924
58,819
1,105
333
226
0

25,996
37,635
34,096
3,539
60,092
58,985
1,107
458
364
0

25,284
37,614
34,052
3,562
59,337
58,333
1,004
469
445
0

25,157
38,431
34,794
3,637
59,951
58,891
1,060
487
444
0

24,747
38,231
34,754
3,476
59,501
58,704
797
380
339
0

Biweekly averages of daily figures for two week periods ending on dates indicated
1994
July 6
1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks2
Total vault cash3 4
Applied vault cash
Surplus vault cash5
Total reserves
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9

July 20

Aug. 3

Aug. 17

Aug. 31

Sept. 14

Sept. 28r

Oct. 12'

Oct. 26

Nov. 9

26,239
37,012
33,571
3,441
59,810
58,330
1,480
568
292
0

26,908
37,179
33,754
3,425
60,662
59,902
760
412
357
1

24,703
38,557
34,818
3,739
59,521
58,176
1,346
458
413
0

25,594
38,114
34,486
3,628
60,080
59,141
939
442
430
0

25,099
36,913
33,455
3,458
58,554
57,559
995
498
468
0

25,720
38,451
34,839
3,612
60,559
59,643
917
447
437
0

24,641
38,397
34,700
3,697
59,341
58,138
1,204
535
458
0

24,824
38,539
35,138
3,401
59,962
58,907
1,055
433
403
0

25,023
37,608
34,137
3,472
59,159
58,587
572
346
326
0

23,786
39,236
35,565
3,671
59,350
58,545
805
351
223
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 may 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 A7
1.13

SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS

Large Banks1

Millions of dollars, averages of daily figures
1994, week ending Monday
Source and maturity
Sept. 5

1
2
3
4

5
6
7
8

Sept. 12

Sept. 19

Sept. 26

Oct. 3

Oct. 10

Oct. 17

Oct. 24

Oct. 31

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

73,232
12,222

69,219
12,379

68,194
13,519

69,421
13,863

73,249
12,920

76,739
12,492

74,555
12,889

68,759
13,879

69,873
15,923

14,414
24,114

17,530
22,508

17,530
21,881

21,105
21,300

20,162
21,455

19,205
20,655

18,386
20,607

18,240
22,922

16,902
22,242

Repurchase agreements on US. 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

20,501
30,996

23,144
32,875

21,588
33,104

22,503
32,287

23,178
29,333

23,964
29,910

24,034
28,918

22,995
33,192

22,000
32,215

34,038
16,693

33,613
16,345

32,897
16,393

32,826
17,661

33,965
16,814

33,091
16,528

33,451
16,698

33,799
17,004

32,802
17,134

57,438
24,467

51,871
21,256

55,427
21,439

61,185r
22,985

60,790
21,031

58,607
21,283

59,293
21,488

56,776
21,415

59,630
21,842

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

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.S (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 US. government agencies,

A8

DomesticNonfinancialStatistics • January 1995

1.14

FEDERAL R E S E R V E B A N K INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit1

Federal Reserve
Bank

Seasonal credit2

Extended credit3

On
12/2/94

Effective date

Previous rate

On
12/2/94

Effective date

Previous rate

On
12/2/94

Effective date

Previous rate

4.75

11/16/94
11/15/94
11/17/94
11/16/94
11/16/94
11/16/94

4.00

5.60

11/25/94

5.20

6.10

11/25/94

5.70

4.00

5.60

11/25/94

5.20

6.10

11/25/94

5.70

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

i

11/17/94
11/15/94
11/16/94
11/15/94
11/16/94
11/15/94

4.75

i

i

t

i

Range of rates for adjustment credit in recent years4

Effective date

In effect Dec. 31, 1977
1978—Jan.

Range (or
level)—
All F.R.
Banks
6

9
20
May 11
12
July 3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3

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

1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10

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

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

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

Effectiv

1981—May 5
Nov. 2
6
Dec. 4

13-14
14
13-14
13
12

F.R.
Bank
of
N.Y.

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

14
14
13
13
12

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

1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17

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

11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5

1984—Apr. 9
13
Nov. 21
26
Dec. 24

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985—May 20
24

7.5-8
7.5

7.5
7.5

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

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

7
7
6.5
6
5.5
5.5

1. Available on a short-term basis to help depository institutions meet temporary needs
for funds that cannot be met through reasonable alternative sources. The highest rate
established for loans to depository institutions may be charged on adjustment credit loans
of unusual size that result from a major operating problem at the borrower's facility.
2. Available to help relatively small depository institutions meet regular seasonal needs
for funds that arise from a clear pattern of intrayearly movements in their deposits and
loans and that cannot be met through special industry lenders. The discount rate on
seasonal credit takes into account rates charged by market sources of funds and ordinarily
is reestablished on the first business day of each two-week reserve maintenance period;
however, it is never less than the discount rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is not
reasonably available from other sources, including special industry lenders. Such credit
may be provided when exceptional circumstances (including sustained deposit drains,
impaired access to money market funds, or sudden deterioration in loan repayment
performance) or practices involve only a particular institution, or to meet the needs of
institutions experiencing difficulties adjusting to changing market conditions over a longer
period (particularly at times of deposit disintermediation). The discount rate applicable to
adjustment credit ordinarily is charged on extended-credit loans outstanding less than




Range (or
level)—
All F.R.
Banks

6.5

6.5

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

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

2
7

3-3.5
3

3
3

1994—May 17
18
Aug. 16
18
Nov. 15
17

3-3.5
3.5
3.5-4
4
4-4.75
4.75

3.5
3.5
4
4
4.75
4.75

4.75

4.75

1990—Dec. 19
1991—Feb.

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

1992—July

In effect Dec. 2, 1994

thirty days; however, at the discretion of the Federal Reserve Bank, this time period may
be shortened. Beyond this initial period, a flexible rate somewhat above rates charged on
market sources of funds is charged. The rate 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 SO 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 adjustmentcredit 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 A9
1.15

RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1

Type of deposit2

Net transaction accounts3
1 $0 million-$54.0 million..
2 More than $54.0 million4 .

12/20/94
12/20/94

3

Nonpersonal time deposits^

12/27/90

4

Eurocurrency liabilities 6 ...

12/27/90

1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with a
Federal Reserve Bank indirectly, on a pass-through basis, with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary Control Act
of 1980, depository institutions include commercial banks, mutual savings banks,
savings and loan associations, credit unions, agencies and branches of foreign banks,
and Edge Act corporations.
2. 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. 20, 1994, the exemption was
raised from $4.0 million to $4.2 million. The exemption applies only to accounts that
would be subject to a 3 percent reserve requirement.
3. Includes 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 for the purpose of making payments to third persons
or others, other than money market deposit accounts (MMDAs) and similar accounts that
permit no more than six preauthorized, automatic, or other transfers per month, of which




no more than three may be checks (accounts subject to such limits are considered 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 of each year. Effective Dec. 20, 1994, the amount was
increased from $51.9 million to $54.0 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2,1992, for institutions that report weekly, and on Apr. 16,1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 VS years was reduced from 3 percent to
1 Vi percent for the maintenance period that began Dec. 13, 1990, and to zero for the
maintenance period that began Dec. 27, 1990. The reserve requirement on nonpersonal
time deposits with an original maturity of 1 '/i years or more has been zero since Oct. 6,
1983.
For institutions that report quarterly, the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 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 5).

A10

DomesticNonfinancialStatistics • January 1995

1.17

FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1994
Type of transaction
and maturity

1991

1992

1993
Mar.

Apr.

May

June

July

Aug.

Sept.

U.S. TREASURY SECURITIES

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

20,158
120
277,314
1,000

14,714
1,628
308,699
1,600

17,717
0
332,229
468

900
0
33,163
0

1,101
0
28,881
0

1,395
0
29,807
0

4,143
0
39,484
0

0
0
29,559
0

1,610
0
36,281
0

0
0
29,668
0

3,043
0
24,454
-28,090
1,000

1,096
0
36,662
-30,543
0

1,223
0
31,368
-36,582
0

147
0
0
-3,605
0

209
0
2,316
-907
0

155
0
0
0
0

0
0
1,197
-3,192
0

0
0
0
0
0

0
0
0
0
0

151
0
0
0
0

6,583
0
-21,211
24,594

13,118
0
-34,478
25,811

10,350
0
-27,140
0

1,413
0
0
3,605

2,817
0
1,607
907

0
0
0
0

0
0
-1,197
3,192

0
0
0
0

0
0
0
0

2,530
0
0
0

1,280
0
-2,037
2,894

2,818
0
-1,915
3,532

4,168
0
0
0

1,103
0
0
0

1,117
0
709
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

938
0
0
0

375
0
-1,209
600

2,333
0
-269
1,200

3,457
0
0
0

618
0
0
0

8%
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

840
0
0
0

31,439
120
1,000

34,079
1,628
1,600

36,915
0
468

4,181
0
0

6,140
0
440

1,550
0
0

4,143
0
0

0
0
0

1,610
0
0

4,459
0
11

1,570,456
1,571,534

1,482,467
1,480,140

1,475,085
1,475,941

155,950
155,625

120,393
120,512

137,458
137,195

133,939
133,075

125,181
126,677

170,356
169,018

151,589
151,029

310,084
311,752

378,374
386,257

475,447
470,723

38,490
38,115

19,741
25,041

21,517
17,112

10,059
4,405

28,085
35,374

44,948
41,199

4,975
9,354

29,729

20,642

42,027

4,232

519

5,691

8,933

-5,793

4,022

-490

0
5
292

0
0
632

0

0
0
108

0
0
180

0
0
70

0
0
58

0
0
322

0

1,072

63

0
0
20

Repurchase agreements
33 Gross purchases
34 Gross sales

22,807
23,595

14,565
14,486

35,063
34,669

3,160
3,170

728
878

4,195
2,895

580
1,300

9,472
8,702

8,491
8,109

3,620
4,982

35 Net change in federal agency obligations

-1,085

-554

-678

-118

-330

1,230

-778

448

319

-1,382

36 Total net change in System Open Market
Account

28,644

20,089

41,348

4,114

189

6,921

8,155

—5,345

4,341

—1,872

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

1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.




0

0

Federal Reserve Banks
1.18

FEDERAL RESERVE BANKS

All

Condition and Federal Reserve Note Statements1

Millions of dollars
Wednesday
1994

Account
Sept. 28

Oct.

5

End of month
1994

Oct.

12

Oct.

19

Oct.

26

Aug.

31

Sept. 30

Oct.

31

Consolidated condition statement
ASSETS
11,054
8,018
339

11,054
8,018
350

11,054
8,018
352

11,053
8,018
350

11,053
8,018
348

11,054
8,018
315

11,054
8,018
360

11,053
8,018
360

570
0
0

401
0
0

384
0
0

337
0
0

370
0
0

494
0
0

504
0
0

264
0
0

3,806
0

3,806
0

3,762
0

3,762

3,744

500

3,837
1,732

3,806
370

3,744

375

349,846

354,761

353,925

357,283

357,380

355,629

355,150

355,928

10 Bought outright2
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements

349,846
166,621

354,761
171,536

353,925
170,700

141,389

141,389

41,836

41,836
0

41,836
0

356,241
173,995
140,410
41,836

349,110
170,345
138,006
40,760

1,139

6,519

41,836
2,140

352,313
169,617
140,860
41,836

0

353,103
170,857
140,410
41,836
4,180

353,010
169,785

141,389

15 Total loans and securities

354,222

358,967

358,070

361,757

361,994

361,692

359,830

360,336

5,037

6,332
1,068

10,084

5,629

5,113

5,125

1,070

1,071

1,065

4,104
1,068

2,477

1,069

22,690
9,448

23,206

9,457

23,223
9,660

23,239
9,520

23,257
9,754

22,624
8,341

23,197
9,218

23,922
9,848

411,876

418,453

421,529

420,638

420,608

418,233

416,848

417,080

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
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"
20 Total assets

1,068

141,389

400

3,615

1,068

LIABILITIES

364,263

366,306

368,759

367,771

367,614

364,032

363,509

367,540

22 Total deposits

32,014

34,856

33,543

36,516

36,848

38,753

37,562

35,050

23
24
25
26

24,701

28,030
5,022
165
326

30,557

6,658
399
256

29,057
5,283
181
335

30,438
5,912
178
320

32,282
5,994
188
289

30,054
6,848
342
318

29,271
5,164
223
392

4,417
3,607

5,633
3,576

8,045
3,565

5,103

3,608

4,695
3,775

4,584
3,632

3,765
3,831

3,992

404,302

410,371

413,912

412,999

412,931

411,001

408,667

408,488

3,607

3,614
3,401

3,618

3,639

3,641

3,401

3,401

3,401

566

1,066

598

599

634

3,588
3,383
262

3,608

3,401

1,172

3,643
3,401
1,548

411,876

418,453

421,529

420,638

420,608

418,233

416,848

417,080

398,798

397,222

400,556

402,593

406,989

398,851

399,937

407,851

21 Federal Reserve notes

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

27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities

5,510
170

280

1,906

CAPITAL ACCOUNTS

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

3,401

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

448,609
84,346
364,263

448,780
82,474
366,306

448,721
79,962
368,759

449,559
81,787
367,771

449,975
82,361
367,614

442,669
78,637
364,032

449,006
85,498
363,509

449,946
82,406
367,540

11,054
8,018
0
345,191

11,054
8,018
0
347,234

11,054
8,018
0
349,687

11,053
8,018
0
348,700

11,053
8,018
0
348,543

11,054
8,018
0
344,960

11,054
8,018
0
344,437

11,053
8,018
0
348,469

364,263

366,306

368,759

367,771

367,614

364,032

363,509

367,540

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
1.19

DomesticNonfinancialStatistics • January 1995
FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holding

Millions of dollars
Wednesday
1994

Type of holding and maturity

End of month
1994

Sept. 28

Oct. 5

Oct. 12

Oct. 19

Oct. 26

1 Total loans

570

401

384

337

370

2 Within fifteen days1
3 Sixteen days to ninety days
4 Ninety-one days to one year

510
60
0

114
287
0

99
285
0

305
32
0

342
29
0

Sept. 30

Oct. 31

512

504

264

417
95
0

264
240
0

133
131
0

Aug. 31

5 Total acceptances

0

0

0

0

0

0

0

0

6 Within fifteen days1
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

9 Total U.S. Treasury securities

349,846

354,761

353,925

357,283

357,380

355,629

353,010

352,313

Within fifteen days1
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

9,781
82,848
109,710
87,052
26,116
34,339

17,446
80,073
108,492
88,294
26,116
34,339

16,189
80,364
108,623
88,294
26,116
34,339

19,951
84,550
104,493
88,239
25,711
34,339

16,161
84,387
108,543
88,239
25,711
34,339

18,290
83,811
110,330
84,522
25,178
33,499

5,373
87.966
110,922
88,294
26,116
34,339

10,538
83,281
109,980
88,463
25,711
34,339

3,806

3,806

3,762

4,137

4,244

5,569

3,806

3,744

230
546
780
1,666
559
25

30
771
755
1,676
549
25

18
780
728
1,676
535
25

512
661
728
1,676
535
25

619
683
789
1,603
525
25

2,022
448
763
1,752
559
25

230
546
780
1,666
559
25

119
725
747
1,603
525
25

10
11
12
13
14
15

16 Total federal agency obligations
17
18
19
20
21
22

Within fifteen days1
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 BASE1
Billions of dollars, averages of daily figures
1994
Item

1990
Dec.

1991
Dec.

1992
Dec.

1993
Dec.
Apr.

Mar.

Total reserves3
Nonborrowed reserves4
Nonborrowed reserves plus extended credit 5 ....
Required reserves
Monetary base6

July

Aug.

Sept.

Oct.

59.71
59.37
59.37
58.60
404.32

59.82
59.36
59.36
58.71
407.04

59.52
59.05
59.05
58.51
409.18

59.48r
59.00
59.00
58.42
411.03r

59.18
58.80
58.80
58.38
413.34

Seasonally adjusted

ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS1

1
2
3
4
5

June

May

41.77
41.44
41.47
40.11
293.16

45.53
45.34
45.34
44.55
317.12

54.34
54.22
54.22
53.19
350.61

60.48
60.39
60.39
59.41
385.86

60.59
60.53
60.53
59.62
397.01

60.33
60.21
60.21
59.18
399.20

59.91
59.71
59.71
59.00
401.73

Not seasonally adjusted
6
7
8
9
10

Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves8
Monetary base9

43.07
42.74
42.77
41.40
296.68

46.98
46.78
46.78
46.00
321.07

56.06
55.93
55.93
54.90
354.55

62.37
62.29
62.29
61.31
390.59

59.50
59.44
59.44
58.53
394.15

61.40
61.27
61.27
60.25
399.76

58.97
58.77
58.77
58.06
400.26

59.56
59.22
59.22
58.45
404.72

59.66
59.20
59.20
58.55
408.17

58.84
58.37
58.37
57.84
408.95

59.39
58.90
58.90
58.33
411.05

58.88
58.50
58.50
58.08
412.78

59.12
58.80
58.82
57.46
313.70
1.66
.33

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

62.86
62.78
62.78
61.80
397.62
1.06
.08

59.61
59.55
59.55
58.64
400.78
.97
.06

61.64
61.52
61.52
60.49
406.32
1.15
.12

59.27
59.07
59.07
58.36
406.59
.92
.20

59.92
59.59
59.59
58.82
410.94
1.11
.33

60.09
59.63
59.64
58.99
414.39
1.11
.46

59.34
58.87
58.87
58.33
414.90

59.95r
59.47
59.47
58.89
416.65'
1.06
.49

59.50
59.12
59.12
58.70
418.13
.80
.38

NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS1

11
12
13
14
15
16
17

Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credir
Required reserves
Monetary base
Excess reserves'3
Borrowings from the Federal Reserve

1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data starting in 1959 and estimates of the impact on
required reserves of changes in reserve requirements are available from the Money and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors of the
Federal Reserve System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements. (See also table 1.10)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves (line 1) less total borrowings of depository institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help depository
institutions deal with sustained liquidity pressures. Because there is not the same need to
repay such borrowing promptly as with traditional short-term adjustment credit, the
money market 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




1.00
.47

reserve requirements, a multiplicative procedure is used to estimate what required
reserves would have been in past periods had current reserve requirements been in effect.
Break-adjusted required reserves include required reserves against transactions deposits
and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6),
plus (2) the (unadjusted) currency component of the money stock, plus (3) (for all
quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the break-adjusted difference between current vault cash and the amount applied
to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with
no adjustments to eliminate the effects of discontinuities associated with regulatory
changes inreserverequirements.
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 contemporaneous reserve
requirements in February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

A14
1.21

Domestic Financial Statistics • January 1995
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1994
Item

1990
Dec.

1991
Dec.

1992
Dec.

1993
Dec.
July'

Aug.'

Sept.'

Oct.

Seasonally adjusted

1
2
3
4
5

Measures2
Ml
M2
M3
L
Debt

6
7
8
9

Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6

826.4
3,353.0
4,125.7
4,974.8
10,690.2r

897.7
3,455.3
4,180.4
4,992.9
ll,168.2 r

1,024.8
3,509.0
4,183.1
5,057.2
11,699.1'

1,128.4
3,568.0
4,232.1
5,134.5
12,325.6'

1,153.1
3,603.5
4,250.5
5,188.2
12,660.7

1,151.0
3,597.4
4,242.9
5,179.4
12,722.6

1,152.0
3,596.0
4,247.2
5,170.1
12,779.3

1,148.5
3,592.5
4,259.3
n.a.
n.a.

246.7
7.8
277.9
294.0

267.1
7.7
290.0
332.8

292.2
8.1
339.6
384.9

321.4
7.9
384.8
414.3

343.2
8.2
389.1
412.5

345.4
8.3
387.5
409.8

347.3
8.4
388.1
408.2

349.9
8.4
385.9
404.3

2,526.6
772.7

2,557.6
725.2

2,484.3
674.1

2,439.6
664.1

2,450.4
647.0

2,446.4
645.5

2,444.0
651.3

2,443.9
666.8

Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits9
14 Large time deposits10' "

582.1
611.3
368.6

665.5
602.9
342.4

754.6
508.7
292.8

785.3
468.5
277.1

777.8
468.8
276.5

776.0
474.8
279.8

773.7
479.5
284.8

765.9
486.3
291.9

Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits9
17 Large time deposits10

338.3
563.2
120.9

375.6
464.5
83.4

429.0
361.8
67.5

430.2
317.2
61.8

424.7
303.8
61.2

418.7
303.0
60.9

412.9
303.6
62.1

407.4
307.0
63.3

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

355.5
135.0

370.4
181.0

352.0
201.5

348.8
197.0

363.5
170.9

362.9
169.3

362.3
167.9

365.0
175.3

2,490.3
8,199.9r

2,763.3
8,404.9r

3,067.9
8,631.2'

3,327.4
8,998.1'

3,419.3
9,241.4

3,436.6
9,286.0

3,454.0
9,325.4

Nontransaction components
10 In M27
11 In M38 only

Debt components
20 Federal debt
21 Nonfederal debt

n.a.
n.a.

Not seasonally adjusted

22
23
24
25
26

Measures2
Ml
M2
M3
L
Debt

27
28
29
30

Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6

843.8
3,366.0
4,135.5
4,997.2
10,687.2'

916.7
3,470.4
4,191.9
5,018.0
11,165.5'

1,046.7
3,527.6
4,198.3
5,087.7
11,701.9'

1,153.8
3,590.6
4,251.5
5,169.4
12,321.3'

1,151.0
3,599.8
4,243.5
5,173.5
12,620.4

1,144.0
3,589.7
4,238.9
5,168.7
12,674.4

1,146.1
3,585.5
4,236.5
5,158.0
12,735.6

1,147.4
3,590.8
4,253.9
n.a.
n.a.

249.5
7.4
289.9
297.0

269.9
7.4
303.1
336.3

295.0
7.8
355.1
388.9

324.9
7.6
402.6
418.6

344.9
8.8
388.4
408.9

345.7
8.9
384.2
405.2

347.1
8.8
385.7
404.5

349.6
8.5
389.0
400.3

2,522.3
769.5

2,553.7
721.6

2,480.9
670.6

2,436.8
660.9

2,448.8
643.7

2,445.7
649.2

2,439.4
651.0

2,443.4
663.1

Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits9
35 Large time deposits10' "

580.8
610.5
367.7

664.0
601.9
341.3

752.9
507.8
291.7

783.9
467.6
276.0

779.6
469.8
276.2

776.6
475.8
281.6

772.4
480.9
285.9

765.2
487.2
291.7

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits9
38 Large time deposits10

337.6
562.4
120.6

374.8
463.8
83.1

428.1
361.2
67.2

429.4
316.5
61.6

425.7
304.5
61.1

419.0
303.7
61.3

412.2
304.5
62.3

407.1
307.6
63.2

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

353.8
134.7

368.5
180.4

350.2
200.4

347.2
195.8

360.0
167.4

360.2
169.5

357.5
165.1

360.9
170.5

Repurchase agreements and Eurodollars
41 Overnight and continuing
42 Term

77.3
158.3

80.6
130.1

80.7
126.8

92.3
143.8

109.2
154.0

110.5
151.6

111.9
152.5

115.5
152.9

2,491.3

2,765.0
8,400.6'

3,069.8
8,632.1'

3,329.5
8,991.8'

3,393.9
9,226.5

3,418.4
9,256.0

3,438.4
9,297.2

Nontransaction components
31 In M27
32 In M38

Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.




n.a.
n.a.

Monetary and Credit Aggregates A15

N O T E S T O T A B L E 1.21

1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data starting in 1959 are available from the Money
and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the US. Treasury, Federal Reserve Banks, and the vaults of
depositoiy institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the US. 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 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: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's flow
of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank
issuers. Travelers checks issued by depository institutions are included in demand
deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than
those owed to depository institutions, the U.S. government, and foreign banks and official
institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit
union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) 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 institutiononly 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, the U.S. government, and foreign banks and official institutions.

A16
1.22

DomesticNonfinancialStatistics • January 1995
DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING

Commercial and BIF-insured saving banks1
1994

1992
Dec.

1993
Dec.
Jan.

Mar.

Feb.

Apr.

May

June

July

Aug.

Sept.

Interest rates (annual effective yields)
INSURED COMMERCIAL BANKS

1 Negotiable order of withdrawal accounts
2 Savings deposits2

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 2 V5 years
More than 2\/l years

2.33
2.88

1.86
2.46

1.84
2.46

1.82
2.43

1.82
2.43

1.81
2.45

1.83
2.50

1.82
2.54

1.83
2.57

1.85
2.63

1.87
2.67

2.90
3.16
3.37
3.88
4.77

2.65
2.91
3.13
3.55
4.29

2.65
2.90
3.14
3.56
4.31

2.68
2.94
3.18
3.61
4.35

2.76
3.02
3.27
3.69
4.46

2.87
3.13
3.42
3.87
4.67

2.99
3.28
3.64
4.12
4.89

3.08
3.36
3.76
4.26
5.02

3.17
3.44
3.88
4.39
5.14

3.29
3.61
4.11
4.61
5.33

3.36
3.75
4.27
4.80
5.47

2.45
3.20

1.87
2.63

1.89
2.62

1.88
2.64

1.83
2.63

1.86
2.65

1.86
2.67

1.88
2.69

1.89
2.67

1.89
2.74

1.91
2.78

3.13
3.44
3.61
4.02
5.00

2.70
3.02
3.31
3.66
4.62

2.69
3.03
3.33
3.72
4.61

2.69
3.04
3.34
3.76
4.66

2.71
3.08
3.37
3.85
4.75

2.72
3.13
3.47
3.96
4.85

2.77
3.21
3.67
4.12
5.08

2.84
3.41
3.92
4.38
5.24

2.98
3.53
4.02
4.56
5.35

3.03
3.69
4.24
4.83
5.47

3.11
3.87
4.47
5.04
5.64

BIF-INSURED SAVINGS BANKS3

8 Negotiable order of withdrawal accounts
9 Savings deposits

10
11
12
13
14

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 2'/i years
More than Vfi years

Amounts outstanding (millions of dollars)
INSURED COMMERCIAL BANKS

15 Negotiable order of withdrawal accounts
16 Savings deposits
17 Personal
18 Nonpersonal

19
20
21
22
23

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 2 V5 years
More than 2 Vi years

24 IRA and Keogh plan deposits

286,541
738,253
578,757
159,496

305,223
766,413
597,838
168,575

293,806
771,559
606,615
164,944

295,573
776,204
611,725
164,479

297,496
779,340
615,875
163,465

293,888
771,869
611,720
160,149

292,797
773,170
612,648
160,522

290,220
767,539
608,132
159,407

290,631
765,751
605,881
159,870

295,320
764,035
600,892
163,143

286,787
755,249
595,175
160,074

38,474
127,831
163,098
152,977
169,708

29,455
110,069
146,565
141,223
181,528

29,312
109,110
144,037
141,204
182,193

29,578
109,444
143,624
141,006
181,240

29,539
107,407
144,022
139,946
180,973

29,467
105,615
146,733
139,313
181,977

29,950
104,400
148,102
140,764
180,381

28,763
102,439
151,165
144,686
181,843

28,659
100,424
152,216
146,875
182,944

27,959
98,085
155,964
150,807
186,490

28,312
96,398
157,253
152,514
190,209

147,350

143,985

143,875

143,409

142,002

142,448

142,047

142,513

142,649

142,617

142,700

10,871
81,786
78,695
3,091

11,151
80,115
77,035
3,079

10,796
78,660
75,445
3,215

10,870
78,016
74,756
3,260

11,078
78,701
75,444
3,257

11,051
78,982
75,717
3,265

11,052
78,817
75,474
3,344

10,792
77,289
74,121
3,168

10,925
77,337
74,064
3,273

11,016
75,108
72,040
3,068

10,769
74,659
71,525
3,134

3,867
17,345
21,780
18,442
18,845

2,793
12,946
17,426
16,546
20,464

2,737
13,094
17,418
16,281
20,630

2,735
13,165
17,436
16,338
20,939

2,671
13,177
17,511
16,180
21,110

2,697
13,058
17,504
16,453
21,454

2,702
12,822
17,444
16,477
21,546

2,614
12,515
17,310
16,493
21,079

2,531
12,511
17,591
16,901
21,573

2,523
12,292
17,593
16,824
21,531

2,402
12,276
17,928
17,287
21,923

21,713

19,356

19,395

19,474

19,447

19,860

19,772

19,511

19,757

19,445

19,532

BIF-INSURED SAVINGS BANKS3

25 Negotiable order of withdrawal accounts
26 Savings deposits2
27 Personal
28 Nonpersonal

29
30
31
32
33

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 2V4 years
More than 2 vi years

34 IRA and 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 and Keogh




deposits and foreign 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. Includes 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
1994
Bank group, or type of deposit
Apr.

Mar.

4 Other checkable deposits4
5 Savings deposits (including MMDAs)5

June

Jul/

Aug.

Seasonally adjusted

DEBITS

Demand deposits3
1 All insured banks
2 Major New York City banks
3 Other banks

May

277,741.7
137,337.2
140,404.5

313,179.6
165,484.6
147,695.1

334,375.0
171,310.7
163,064.2

393,886.4
210,684.5
183,201.9

352,714.2
184,409.0
168,305.2

376,238.0
200,277.8
175,960.2

371,523.9
195,079.4
176,444.5

345,269.3
182,408.3
162,861.0

384,057.0
196,505.5
187,551.5

3,643.1
3,206.4

3,780.7
3,310.6

3,468.9
3,511.0

3,882.4
3,918.6

3,573.7
3,458.4

3,868.1
3,530.6

3,845.3
3,817.0

3,502.4
3,444.8

3,868.1
3,895.1

803.7
4,267.1
448.1

825.8
4,794.5
428.7

785.4
4,200.5
423.7

873.5
4,798.4
450.1

778.6
4,233.3
411.1

834.0
4,714.9
430.6

828.6
4,480.9
435.8

756.3
4,074.6
395.5

852.4
4,635.6
459.5

16.2
5.2

14.4
4.7

11.8
4.6

12.9
5.0

11.9
4.4

12.8
4.5

12.7
4.9

11.5
4.5

12.8
5.1

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

277,752.4
137,307.2
140,445.2

313,344.9
165,595.0
147,749.9

334,354.6
171,283.5
163,071.0

406,836.2
218,783.5
188,052.6

350,136.0
181,272.6
168,863.5

364,471.2
188,885.2
175,586.0

387,227.2
204,251.8
182,975.4

347,414.6
182,452.9
164,961.6

394,406.9
202,845.6
191,561.2

3,645.2
3,209.2

3,783.6
3,310.0

3,467.5
3,509.5

3,889.4
3,882.9

3,781.8
3,633.8

3,685.2
3,567.4

3,902.5
3,940.0

3,508.9
3,562.3

3,855.9
3,916.6

803.6
4,269.0
448.1

826.1
4,803.5
428.8

785.4
4,197.9
423.8

923.3
5,140.2
472.4

771.4
4,228.8
410.8

823.3
4,449.3
438.7

868.4
4,878.2
452.8

762.0
4,150.3
400.4

889.5
4,960.2
475.9

16.2
5.2

14.4
4.7

11.8
4.6

12.9
5.0

12.3
4.6

12.3
4.6

13.0
5.1

11.7
4.6

12.9
5.1

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
Publications Section, Division of Support Services, 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. As of January 1994, other checkable deposits (OCDs), previously defined as
automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW)
accounts, were expanded to include telephone and preauthorized transfer accounts. This
change redefined OCDs for debits data to be consistent with OCDs for deposits data.
5. Money market deposit accounts.

A18
1.26

D o m e s t i c F i n a n c i a l Statistics •

January 1 9 9 5

ASSETS AND LIABILITIES OF COMMERCIAL BANKS'
Billions of dollars
Monthly averages
Account

1993
Oct.

1994
Apr.'

May'

June'

July'

ALL COMMERCIAL
BANKING INSTITUTIONS

1
2
3
4
S
6
7
8
9
10
11
12
13
14
15

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6

16 Total assets7
17
18
19
20
21
22
23
24
25
26

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign
offices
Other liabilities8

27 Total liabilities
28 Residual (assets less liabilities)9

Wednesday figures
1994
Aug.'

Sept.'

Oct.

Oct. 5

Oct. 12

Oct. 19

Oct. 26

Seasonally adjusted

899.8
717.4
182.4
2,175.2
585.9
927.01
73.8
853.1
384.7'
81.8
195.7
151.6
220.4
218.5

3,206.0
976.5
757.4
219.1
2,229.5
602.0
946.4
73.4
873.0
408.8
77.0
195.3
148.5
209.1
219.8

3211.7
9723
750.5
221.8
2239.4
607.0
948.9
73.7
875.2
4123
77.5
193.6
158.1
216.1
225.5

3223.9
975.1
751.4
223.6
2248.8
610.1
956.0
74.1
881.9
416.0
76.2
190.5
157.0
214.5
219.9

3258.9
978.9
751.2
227.7
2280.0
618.7
9627
74.2
888.5
424.0
77.7
197.0
160.5
210.9
227.2

3269.3
971.1
746.2
224.9
2298.2
623.4
971.4
74.4
897.0
430.0
75.0
198.4
159.1
203.3
228.6

3278.5
966.9
740.1
226.9
2311.6
627.8
978.9
74.7
904.2
434.9
69.2
200.9
160.0
2024
222.4

3286.1
957.2
727.8
229.4
2329.0
633.7
983.6
75.0
908.6
441.8
721
197.8
163.4
209.7
223.1

3280.3
955.8
729.0
226.7
2324.6
631.2
981.1
74.7
906.4
440.4
70.6
201.2
154.8
2120
224.2

3276.3
951.5
728.5
2229
2324.8
631.3
981.6
74.8
906.8
441.6
71.2
199.1
169.4
2125
224.4

3,289.0
958.7
727.8
230.9
2330.3
635.1
983.9
75.1
908.9
4427
73.7
194.9
156.3
205.9
224.3

32928
961.5
727.0
234.5
2331.3
635.2
984.5
75.2
909.3
441.0
73.2
197.4
171.5
210.4
221.1

3,606-2

3,7263

3,7543

3,7583

3^00.0

3^03.0

3^05.9

3*825.0

3,8143

3,825.0

3£1&2

3£3&5

2^23.9
810.2
1,713.7
346.2
1367.5
518.1
153.8
364.4

2,506.6
800.3
1,706.3
335.3
1371.0
580.8
148.9
431.9

2520.1
8121
1,707.9
338.1
1369.8
573.4
159.5
413.9

2507.0
808.8
1,698.2
334.4
1,363.8
568.9
155.3
413.6

2513.4
809.8
1,703.6
339.2
1364.4
571.9
161.7
410.3

2517.0
807.6
1,709.4
3426
1366.8
567.6
158.6
409.0

2520.5
803.2
1,717.3
348.9
1368.4
576.7
156.8
419.9

2534.5
806.9
1,727.6
357.6
1370.0
576.1
164.5
411.6

2534.6
810.9
1,723.6
353.0
1370.6
555.9
153.3
4026

2538.7
814.2
1,724.5
355.5
1369.0
561.1
171.4
389.7

2523.7
796.5
1,727.2
358.4
1368.8
577.2
159.1
418.1

2543.5
811.7
1,731.8
360.4
1371.4
597.1
171.8
425.3

123.6
144.4

173.6
173.4

174.5
177.3

184.6
171.7

200.8
177.8

211.2
1729

215.6
172.3

214.0
173.4

221.1
172.0

213.3
173.0

218.5
173.7

2125
1727

3,310.1

3,4344

3,4453

3*432.1

3,463.9

3/168*

3/185.2

3/198.0

3/183.5

3/186.1

3/193-2

3^25.7

296.1

2920

309.1

326.2

336.1

334.2

320.7

327.0

330.8

338.9

325.0

312.7

3,075^

Not seasonally adjusted

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

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6

44 Total assets7
45
46
47
48
49
50
51
52
53
54

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign
offices
Other liabilities8

55 Total liabilities
56 Residual (assets less liabilities)9
Footnotes appear on last page.




3,077.7'
902.0
719.1'
182.9
2,175.7
583.9
929.4'
74.5
854.9r
384.tf
80.6
197.0
150.7
219.7
221.0

3,203.9
977.0
759.6
217.4
2226.9
604.9
944.5
72.9
871.6
405.6
79.6
1923
150.0
206.5
216.4

3,200.3
967.9
747.6
220.3
2232.4
608.5
949.3
73.5
875.8
411.1
73.4
190.1
153.3
213.6
2226

3,219.1
971.6
749.0
2226
2247.4
611.1
956.5
73.9
8825
414.1
74.3
191.5
154.6
2122
217.3

3,242.5
9726
745.5
227.1
2269.9
616.5
963.5
74.0
889.5
421.3
725
196.1
156.0
207.5
225.4

3,261.1
970.5
745.4
225.0
2290.6
619.6
970.4
74.4
896.0
429.3
724
198.8
155.5
197.7
226.9

3,278.8
968.4
741.6
226.8
2310.5
624.0
979.1
75.0
904.1
436.1
68.3
203.0
157.2
204.0
223.6

3,289.9
961.8
729.4
2324
2328.2
631.5
985.3
75.7
909.6
441.6
70.9
198.8
161.4
209.0
225.6

3,280.6
958.1
730.2
228.0
23225
629.7
983.3
75.3
908.0
440.2
66.4
2028
155.8
205.9
226.3

3,279.2
956.3
729.1
227.2
23228
628.4
984.7
75.5
909.2
440.7
69.3
199.8
168.2
225.9
228.9

3,293.5
963.0
730.4
2326
2330.5
6325
984.9
75.7
909.2
4424
74.2
196.6
154.3
204.1
223.3

3,290.3
964.3
727.6
236.8
2325.9
631.8
984.9
75.9
909.0
441.3
71.2
196.7
1627
198.5
222.4

3,610.0

3,719.7

3,7317

3,746L2

3,774.7

3,784.1

3,806.4

3JS2&9

3^11.6

3,845.1

3,8183

.W6.9

2515.9
804.3
1,711.6
342.4
1,369.3
526.5
151.0
375.5

2513.2
808.6
1,704.6
336.5
1368.1
556.8
150.0
406.7

2508.8
800.8
1,708.0
342.1
1365.9
561.0
153.4
407.6

2508.6
807.2
1,701.4
337.2
1,364.2
575.1
154.7
420.4

2507.3
801.9
1,705.4
339.5
1365.9
579.8
156.0
423.8

2505.4
7924
1,713.0
344.2
1368.8
583.3
155.5
427.7

2^17.3
799.8
1,717.5
348.5
1369.0
588.4
157.2
431.2

2525.6
800.6
1,725.0
353.6
1371.4
590.3
161.4
429.0

2536.6
811.9
1,724.7
350.7
1374.0
568.4
155.8
4127

2551.5
826.7
1,724.8
351.5
1373.3
584.2
168.2
416.0

2507.6
784.2
1,723.4
353.8
1369.6
591.8
154.3
437.5

2,502.0
777.8
1,724.2
355.7
1368.5
599.3
1627
436.6

124.2
147.1

172.5
167.4

180.1
1725

179.8
167.8

1929
174.1

200.4
1724

203.7
1729

2127
176.9

209.8
174.8

211.6
175.1

219.1
176.0

215.4
176.7

3,313.7

3/109.9

3/1224

3,4313

3/454.0

3/461.5

3/1824

3^05.6

3/189.7

3,5225

3/1915

3/1934

296.3

309.8

310.3

315.0

320.6

3226

324.0

323.3

321.9

322.6

323.8

323.6

Commercial Banking Institutions
1.26

A19

ASSETS AND LIABILITIES OF COMMERCIAL BANKS1—Continued
Billions of dollars
Wednesday figures

Monthly averages
Account

Oct.

1994

1994

1993
Apr/

Mayr

Juner

Jul/

DOMESTICALLY CHARTERED
COMMERCIAL BANKS

Aug/

Sept/

Oct.

Oct. 5

Oct. 12

Oct. 19

Oct. 26

Seasonally adjusted

Assets
57 Bank credit
•>8 Securities in bank credit
59
U.S. government securities
Other securities
60
61 Loans and leases in bank credit2
6?
Commercial and industrial
63
Real estate
Revolving home equity
64
65
Other
Consumer
66
Security3
67
Other
68
69 Interbank loans4
70 Cash assets5
71 Other assets6

2,738.4
822.4r
665,3r
157.1
1,916.0
433.8
879.6
73.8
805.8
384.7r
56.9
161.0
129.8
193.7
173.3

2,856.4
889.0
695.5
193.5
1,967.4
448.8
902.9
73.3
829.6
408.8
49.5
157.4
123.7
183.0
1727

2,863.8
885.3
691.8
193.5
1,978.5
4520
905.7
73.7
8320
412.3
51.2
157.2
1321
189.1
173.4

2,877.1
886.2
690.8
195.5
1,990.9
455.6
9128
74.0
838.8
416.0
49.6
157.0
131.8
188.6
167.1

2901.6
891.5
691.2
200.3
2010.1
460.8
920.4
74.2
846.2
424.0
46.5
158.5
134.0
185.5
171.6

29128
882.5
685.8
196.7
2,030.3
464.2
929.3
74.4
854.9
430.0
47.0
159.9
134.5
179.6
173.5

2919.6
875.9
678.8
197.1
2,043.7
467.9
937.1
74.7
862.4
434.9
43.4
160.5
1363
180.7
168.8

2,930.0
867.8
669.7
198.1
2,0622
471.6
9429
75.0
867.9
441.8
46.7
159.1
138.7
187.0
168.6

2921.4
864.4
669.3
195.1
2057.0
471.2
940.2
74.7
865.5
440.4
44.8
160.4
126.8
189.8
170.4

2919.0
860.9
669.0
191.9
2058.1
470.5
940.8
74.8
866.0
441.6
45.3
159.8
141.8
189.1
169.7

2931.2
868.0
668.9
199.1
2063.2
471.8
943.1
75.1
868.0
4427
48.3
157.2
135.3
183.2
169.1

2937.8
873.4
670.3
203.1
2064.4
4722
943.9
75.2
868.7
441.0
48.0
159.3
147.8
186.8
166.5

7
72 Total assets

3,175.9

3^78.7

33014

3307.7

33354

3343.1

33484

3367.0

33513

33620

33614

3381.8

2,371.4
797.9
1,573.5
211.8
1,361.7
411.9
120.5
291.4

2363.8
790.1
1,573.7
208.5
1,365.2
477.9
128.7
349.2

2376.4
801.9
1,574.5
209.9
1364.6
471.0
138.5
332.5

2369.0
798.4
1,570.6
210.1
1360.5
4624
131.9
330.5

2371.3
799.9
1,571.5
211.4
1,360.1
461.9
140.6
321.4

2371.9
797.8
1374.1
2125
1,361.6
460.7
139.5
321.2

2368.5
793.3
1375.2
211.2
1364.0
473.3
139.0
334.2

2374.9
797.4
1377.4
214.4
1363.1
477.5
148.2
329.2

2375.5
801.5
1374.0
210.9
1363.0
459.3
139.3
320.0

2380.3
804.3
1376.1
212.8
1363.3
4623
155.4
306.9

2363.1
787.2
1375.9
214.5
1361.4
478.1
142.0
336.1

23821
8021
1379.9
215.6
1364.4
496.8
153.9
3429

-6.2
105.6

21.2
1320

25.3
133.7

326
128.9

44.7
131.5

53.4
126.5

59.9
127.1

64.6
126.5

68.5
126.0

61.6
125.7

71.0
127.3

64.3
126.3

2^82.7

2.994JS

3,0064

2^93.0

3,009.4

3,0125

3,028.7

3,043.5

3,0293

3,029.9

3,039.6

3,0694

293.2

283.9

295.0

314.8

326.0

330.6

319.7

323.4

322.2

3321

321.8

312.4

73
74
75
76
77
78
79
80
81
82

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign
offices
Other liabilities8

83 Total liabilities
84 Residual (assets less liabilities)9

Not seasonsilly adjuster
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6

2876.1
885.6
690.3
195.3
1,990.5
456.6
913.5
73.9
839.6
414.1
48.8
157.4
131.0
186.1
166.0

2,893.7
887.2
687.3
199.8
2,006.6
459.4
921.2
74.0
847.2
421.3
45.7
158.9
129.9
1824
171.1

2,908.5
883.3
686.3
197.0
2,025.3
461.3
928.2
74.4
853.8
429.3
46.0
160.4
1324
173.4
172.1

2,923.8
878.8
681.6
197.2
2,045.0
465.3
937.3
75.0
862.2
436.1
43.7
1627
133.4
181.4
170.3

2,936.4
872.8
671.3
201.5
2,063.6
471.0
944.5
75.7
868.8
441.6
46.0
160.4
136.1
185.3
171.0

2,928.9
868.5
671.5
197.0
2060.3
470.8
942.3
75.3
867.0
440.2
43.9
163.2
128.4
1826
172.9

2,926.6
866.7
670.3
196.4
2,059.9
469.4
943.8
75.4
868.3
440.7
44.5
161.5
139.2
201.8
174.3

2936.8
872.6
671.0
201.6
2064.3
471.2
944.1
75.7
868.4
4424
47.9
158.6
131.0
180.3
168.8

2,937.7
876.8
670.9
205.9
2060.9
470.9
944.2
75.8
868.3
441.3
46.2
158.4
138.5
174.4
167.4

33023

3320.6

33293

3351.6

3371.9

33555

3384.9

3360.2

3361-2

2361.9
790.9
1,571.0
210.5
1360.5
461.7
134.3
327.4

2366.7
796.9
1,569.8
209.6
1360.2
468.3
1321
336.2

2364.1
791.9
13722
211.0
1361.2
469.6
134.6
335.0

2360.2
7828
1377.4
213.8
1,363.6
475.3
136.3
339.1

2366.7
789.5
1377.2
212.3
1364.9
483.5
138.6
345.0

23722
791.0
1381.1
215.5
1365.6
489.6
145.4
344.2

2381.9
8022
1379.8
212.2
1367.5
468.8
141.4
327.4

2399.7
816.6
1383.0
214.4
1368.6
483.8
152.0
331.7

2354.1
774.9
1379.2
215.7
1363.4
490.0
138.1
351.9

2347.1
768.2
1378.9
216.3
13626
498.3
145.8
3525

20.6
127.1

31.1
129.5

329
125.4

43.5
128.9

51.0
126.1

55.4
127.8

62.3
130.3

59.8
129.2

56.6
128.1

67.9
130.2

67.5
130.4

2£8&5

2^72.0

2^8U

2,9933

3,006.1

3,0127

3,0334

3,054-3

3,039.8

3,068.1

3,042.1

3,0433

291.8

304.7

304.6

309.0

314.5

316.6

318.2

317.6

316.1

316.8

318.1

317.8

2,743.4
825.2r
667.0
158.2
1,918.3
433.2
881.9"
74.5
807.4
384.6F
56.0
162.5
128.3
191.9
175.6

2,856.5
890.7
699.1
191.6
1,965.8
451.5
901.0
728
828.2
405.6
521
155.6
125.7
181.3
170.2

3,1804r
2369.1
791.8
1,577.3
2129
1364.4
417.5
117.7
299.8

2369.3
798.6
1,570.7
207.8
13629
455.0
130.3
324.7

110 Other liabilities8

-6.6
108.6

111 Total liabilities

2858.6
8825
690.6
191.9
1,976.1
454.7
906.2
73.4
8327
411.1
49.1
155.2
128.0
187.6
171.6

3,276.7

85
86
87
88
89
90
91
9?
93
94
95
96
97
98
99

7
100 Total assets

101
10?
103
104
105
106
107
108
109

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

9
112 Residual (assets less liabilities)

Footnotes appear on following page.




A20 DomesticNonfinancialStatistics • January 1995

NOTES TO TABLE 1.26
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of
condition (large domestic); other domestically chartered commercial banks (small domestic); branches and agencies of foreign banks; New York State investment companies, and
Edge Act and agreement corporations (foreign-related institutions). Excludes international banking facilities. Data are Wednesday values, or pro rata averages of Wednesday
values. Large domestic banks constitute a universe; data for small domestic banks and
foreign-related institutions are estimates based on weekly samples and on quarter-end
condition reports. Data are adjusted for breaks caused by reclassifications of assets and
liabilities.
2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.
3. Consists of reserve repurchase agreements with broker-dealers and loans to purchase and carry securities.
4. Consists of federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.




5. Includes vault cash, cash items in process of collection, demand balances due from
depository institutions in the United States, balances due from Federal Reserve Banks,
and other cash assets.
6. Excludes the due-from position with related foreign offices, which is included in
lines 25,53, 81, and 109.
7. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
8. Excludes the due-to position with related foreign offices, which is included in lines
25, 53, 81, and 109.
9. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis.
NOTE. Data have been benchmarked to the June 1994 Call Report. Earlier tables were
benchmarked to the March 1994 Call Report.

Weekly Reporting Commercial Banks
1.27

A21

ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1994
Account
Aug. 31

Sept. 7

Sept. 14

113,464
313,539
26,422
287,117
93,048'

122,425
311,900
25,435
286,465
92,855'

49,523
77,176
67,371'
103,775'
1,835
61,152
21,420
4,830
16,590
39,732
40,787'

49,737
76,546
67,327'
100,989'
1,641
61,138
21,411
4,935
16,476
39,727
38,2^

17 Federal funds sold2
18 To commercial banks in the United States
19 To nonbank brokers and dealers in securities
70 To others3
71 Other loans and leases, gross
7? Commercial and industrial
Bankers acceptances and commercial paper
23
74
All other
75
U.S. addressees
Non-U.S. addressees
76
77 Real estate loans
Revolving, home equity
78
79
All other
30 To individuals for personal expenditures
31
To depository and financial institutions
37
Commercial banks in the United States
33
Banks in foreign countries
Nonbank depository and otherfinancialinstitutions
34
35 For purchasing and carrying securities
36 To finance agricultural production
37 To states and political subdivisions
38 To foreign governments and official institutions
39 All other loans4
40 Lease-financing receivables
41 LESS: Unearned income
Loan and lease reserve5
47
43 Other loans and leases, net
44 All other assets

101,872
68,982
25,545
7,345
1,100,977
300,148
3,135
297,013
295,445
1,568
438,305
45,194
393,111
228,632
43,855
23,469
3,737
16,650
18,094
6,565
11,827
980
23,667
28,903
1,658
35,081
1,064,237
148,447'

91,795
61,109'

45 Trial assets6

Oct. 5

Oct. 12

Oct. 19

Oct. 26

Sept. 21

Sept. 28

112,704
313,457
25,693
287,764
92,511'

103,517
306,558
24,798
281,759
91,624

105,062
302,159
21,488
280,671
92,401

111,935
300,939
22,463
278,475
91,337

122,724
300,425
22,994
277,431
91,125

110,588
301,546
25,308
276,238
91,026

105,836
301,946
24,840
277,107
90,625

50,205
77,538
101,678'
1,574
61,199
21,459
4,964
16,494
39,740
38,906'

44,930
78,052
67,153
100,955'
1,523
60,915
21,453
4,975
16,478
39,462
38,517'

44,609
77,163
66,497
103,361'
1,639
61,063
21,466
5,009
16,456
39,598
40,658'

43,278
76,959
66,901
104,622
1,437
61,718
21,544
5,277
16,267
40,174
41,467

42,351
77,217
66,738
104,282
1,685
61,804
21,520
5,270
16,251
40,284
40,793

41,963
77,062
66,187
108,951
1,622
61,833
21,643
5,290
16,354
40,190
45,496

42,886
77,591
66,005
118,990
1,637
61,804
21,651
5,290
16,361
40,152
55,549

95,072
63,115'
24,003'
7,954
1,099,987
300,408
3,201
297,207
295,552
1,655
440,706
45,272
395,434
228,221
44,187
24,076
3,060
17,051
15,630
6,530
11,622
1,032
22,468
29,183
1,650
35,170
1,063,167
150,971'

101,662
69,743'
24,231'
7,689
1,105,672
304,187
3,060
301,127
299,559
1,568
440,297
45,381
394,916
229,578
42,961
24,337
3,082
15,542
15,580
6,504
11,527
1,170
24,655
29,214
1,663
35,155
1,068,854
146,228'

99,586
70,129'
21,275'
8,181
1,106,914
304,020'
2,895
301,125'
299,515'
1,610
440,219'
45,505'
394,713'
230,503
43,622'
25,464'
2,875
15,282
15,490'
6,472
11,545'
993
24,662'
29,389'
1,654
34,789
1,070,471
146,310'

90,122
58,554
23,379
8,189
1,113,864
306,938
2,885
304,053
302,280
1,772
443,492
45,821
397,671
231,292
42,944
25,140
2,458
15,346
15,365
6,500
11,488
940
24,969
29,938
1,633
34,651
1,077,580
148,507

97,636
68,130
24,060
5,446
1,115,804
306,179
3,243
302,935
301,137
1,799
444,149
45,864
398,285
231,973
45,478
26,196
3,005
16,277
15,226
6,467
11,549
1,050
23,723
30,011
1,635
34,754
1,079,416
150,291

93,058
61,196
26,731
5,132
1,116,922
307,240
3,393
303,847
302,028
1,819
444,252
46,129
398,123
232,566
45,406
26,347
2,542
16,517
16,027
6,423
11,571
915
22,421
30,101
1,624
34,565
1,080,734
143,586

99,002
69,578
24,205
5,220
1,119,232
306,917
3,278
303,639
301,759
1,880
445,045
46,251
398,794
233,046
45,477
26,498
2,744
16,235
16,933
6,358
11,572
920
22,722
30,242
1,624
34,528
1,083,080
136,084

r
l,845,334r 1,838,024' 1,837,049' l,827,774 1,826,949'

1,833,705

1,854,774

1,838,462

1,844,939

ASSETS
1

7
3
4
5
6
7
8
9
10
11
12
N

14
IS
16

Cash and balances due from depository institutions
U.S. Treasury and government securities
Trading account
Investment account
Mortgage-backed securities'
All others, by maturity
One year or less
One year through five years
More than five years
Other securities
Trading account
Investment account
State and local government, by maturity
One year or less
More than one year
Other bonds, corporate stocks, and securities
Other trading account assets

Footnotes appear on the following page.




23,13C

7,555
1,097,425
299,417
3,223
296,193
294,563
1,630
439,252
45,194
394,058
226,936
43,944
23,580
3,393
16,970
15,060
6,515
11,683
1,157
24,426
29,037
1,648
35,156
1,060,621
150,294'

A22
1.27

DomesticNonfinancialStatistics • January 1995
ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1994

Account
Aug.

31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

1,149,748
300,325
254,331'
45,994'
8,149
3,936
19,691'
5,155
618
8,445
126,934
722,489
700,766
21,723
17,359
2,000
1,919
445

1,120,501'
281,947
237,343
44,604
8,775
2,806
17,743
5,543
648
9,088
123,109
715,445'
694,638'
20,807'
16,841'
2,001
1,514'
451

1,123,858'
290,029
242,315'
47,714'
8,489
1,857
19,636
5,669
672'
11,392
121,227
712,602'
691,814'
20,788'
16,762'
1,999
1,579
448'

1,145,964
299,886
253,417
46,470
8,229
2,313
21,038
5,144
788
8,957
126,520
719,558
699,043
20,515
16,749
1,678
1,639
449

1,157,278
311,565
260,473
51,092
8,180
1,858
25,065
5,819
848
9,323
124,360
721,354
700,730
20,624
16,836
1,776
1,562
449

1,126,673
284,836
242,298
42,538
8,148
1,891
18,665
5,021
640
8,173
122,944
718,893
698,457
20,437
16,853
1,724
1,414
446

1,125,397
283,596
237,908
45,688
8,237
1,957
18,608
5,293
733
10,860
121,733
720,068
699,485
20,583
16,933
1,711
1,490
448

366,975'
0
22,649'
344,325'
165,105

346,165
0
2,831
343,333
169,423

358,228
0
3,565
354,663
166,263

362,114
0
12,374
349,739
175,940

361,451
54
12,579
348,818
183,788

Oct.

5

Oct.

12

Oct.

19

Oct.

26

LIABILITIES
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63

Deposits
Demand deposits
Individuals, partnerships, and corporations
Other holders
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits4
Nontransaction balances
Individuals, partnerships, and corporations
Other holders
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions, and banks ..

1,144,734
299,923
253,126
46,797
8,585
2,394
19,738
5,792
647
9,641
125,112
719,699
697,373
22,326
17,509
2,440
1,952
425

1,157,512
305,189
256,491
48,698
8,218
2,025
23,081
5,559
654
9,161
128,815
723,508
701,456
22,053
17,641
1,986
2,002
424

64
65
66
67
68

Liabilities for borrowed money5
Borrowings from Federal Reserve Banks
Treasury tax and loan notes
Other liabilities for borrowed money6
Other liabilities (including subordinated notes and debentures)...

364,389
0
17,265
347,124
164,896

342,898
0
2,007
340,891
165,812

351,119
0
4,400
346,719
163,297

371,784'
275
34,348
337,161'
163,488

69

Total UabiUties

1,674,019

1,666,222

1,664,164

L,655,773 R

70

Residual (total assets less total liabilities)7

1,661,551

1,681,770

1,664,726

1,670,636

171,315 R

171,802'

172,885'

172,002'

1,655,938
171,011'

172,154

173,004

173,736

174,302

1,527,712'
96,540'
672
326
345
22,961
51,247'

1,517,419'
96,937'
671
326
345
23,332
49,269'

1,523,003'
97,080'
671
329
342
23,167
45,184

1,520,767'
93,725'
674
329
345
23,259
49,629

1,516,427'
92,829
663
329
334
22,688
50,219

1,525,853
94,253
678
328
350
22,756
52,834

1,523,820
95,856
682
339
343
22,857
49,933

1,532,935
96,910
681
338
343
22,369
60,838

1,543,096
97,324
681
322
359
22,734
61,382

MEMO

71
72
73
74
75
76
77

Total loans and leases, gross, adjusted, plus securities8
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. residents10
Net owed to related institutions abroad

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 (NOWs) and automatic transfer service
(ATS) accounts, 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.
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.

Weekly Reporting Commercial Banks A23
1.28

LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Assets and Liabilities
Millions of dollars, Wednesday figures
1994

Account
Aug.

31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

Oct.

5

Oct.

12

Oct.

19

Oct.

26

ASSETS
1
7
3
4
5
6
7
8
9
10
11
1?
13
14

Cash and balances due from depository
institutions
U.S. Treasury and government agency

Commercial banks in the United States
Banks in foreign countries

1")
16
17
18
19

For purchasing and carrying securities
To foreign governments and official

21

All other
Other assets (claims on nonrelated parties)

22

Total assets3

14,441

13,973

15,022

15,437

15,309

15,819

15,625

15,861

41,273
11,501
24,851
5,330
19,520
158,820
101,246
3,278
97,967
93,810
4,158
26,967

41,078
11,784
28,006
7,390
20,616
159,349
101,374
3,270
98,103
93,858
4,246
26,903

41,342
11,579
29,834
8,224
21,610
160,645
102,136
3,334
98,802
94,594
4,208
26,761

40,438
12,251 R
30,893
9,387
21,506
159,890
101,102
3,219
97,883
93,721
4,163
26,677

40,319
12,476
28,902
9,692
19,210
159,808
102,458
3,167
99,292
95,128
4,164
26,450

40,377
12,377
29,978
10,444
19,534
160,009
102,326
3,285
99,041
94,851
4,189
26,329

40,722
12,449
27,165
7,282
19,882
161,669
103,635
3,097
100,538
96,469
4,069
26,222

38,697
12,518
26,615
7,456
19,160
161,959
103,523
2,957
100,566
96,594
3,972
26,212

23,356
4,602
1,919
16,835
3,793

23,529
4,625
1,956
16,947
3,043

23,715
4,825
1,874
17,016
3,393

24,104
4,684
2,012
17,408
3,484

24,915
4,794
1,847
18,274
3,290

24,128
4,775
2,087
17,266
2,932

24,456
4,804
2,014
17,637
2,990

24,707
4,940
2,120
17,647
3,351

24,897
5,300
2,103
17,495
3,361

349
3,696
35,463

345
3,690
35,267

327
3,638
35,194

329
3,831
33,180

353
3,552
33,186 R

346
3,493
34,465

357
3,552
35,299

358
3,396
35,179

381
3,586
35,573

320,245

To commercial banks in (he United States
To others2
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
Loans to depository and financial

15,891
41,299
11,519
30,426
10,080
20,345
159,480
101,339
3,365
97,974
93,811
4,163
26,948

313,129

314,743

318,578

319,085

315,396

320,204

319,613

317,870

93,292
4,639
3,794
845
88,653
59,894
28,759

93,843
4,362
3,721
641
89,481
61,102
28,379

94,454
4,454
3,719
734
90,001
61,501
28,499

96,499
4,875
3,776
1,099
91,624
62,170
29,453

98,065
5,415
4,047
1,368
92,649
63,522
29,127

96,518
4,333
3,652
682
92,184
62,325
29,859

95,876
4,545
3,653
892
91,332
61,414
29,917

96,895
4,107
3,382
725
92,789
62,529
30,260

97,885
4,261
3,394
867
93,624
62,861
30,763

81,837
41,954
10,281
31,673
39,882
6,478
33,404
33,317

78,031
41,832
7,980
33,852
36,199
6,861
29,338
32,547

74,679
39,504
7,047
32,457
35,175
6,945
28,230
32,560

78,988
44,260
9,698
34,562
34,728
7,048 R
27,680 R
30,805

74,714
39,023
8,204
30,819
35,691
7,137
28,555
31,336

71,153
37,213
5,334
31,879
33,940
6,478
27,462
31,491

72,768
38,470
6,318
32,152
34,298
6,434
27,864
32,937

73,108
38,598
6,170
32,427
34,510
7,061
27,449
32,034

72,376
35,937
6,444
29,493
36,440
6,951
29,489
32,363

320,245

313,129

314,743

318,578

319,085

315,396

320,204

319,613

317,870

228,042
85,632

226,490
81,732

228,002
87,690

230,493
85,310

2 2 9 , 2 9 LR
87,980

227,038
92,119

227,492
92,278

229,782
90,771

227,034
88,599

LIABILITIES
73
74
25
77
78
79
30

Deposits or credit balances owed to other
than directly related institutions
Demand deposits4
Individuals, paitnerships, and corporations . . . .
Other
Nontransaction accounts
Individuals, paitnerships, and corporations . . . .
Other
Borrowings from other than directly
Federal funds purchased5
From commercial banks in the United States . .

11
37
33
34
35
36
37

Other liabilities to nonrelated parties

38

Total liabilities6

Other liabilities for borrowed money
To commercial banks in the United States

MEMO
39
40

Total loans (gross) and securities, adjusted
Net owed ^ related institutions abroad

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




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

A24
1.32

DomesticNonfinancialStatistics • January 1995
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December

1994

Item
1989

1990

1991

1992

1993

Apr.

May

June

July

Aug.

Sept.

Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers

2
3
4
S

Financial companies'
Dealer-placed paper2
Total
Bank-related (not seasonally
adjusted)
Directly placed paper4
Total
Bank-related (not seasonally
adjusted)3

6 Nonfinancial companies3

525,831

562,656

528,832

545,619

555,075

553,497

559,569

563,067

572,539

564,206

574,054

183,622

214,706

212,999

226,456

218,947

207,180

213,623

214,313

222,780

214,769

214,349

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

210,930

200,036

182,463

171,605

180,389

199,803

197,812

199,168

199,175

198,598

203,156

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

131,279

147,914

133,370

147,558

155,739

146,514

148,134

149,586

150,584

150,839

156,549

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

62,972

54,771

43,770

38,194

32,348

31,775

29,867

30,659

30,390

30,448

31,164

9,433
8,510
924

9,017
7,930
1,087

11,017
9,347
1,670

10,555
9,097
1,458

12,421
10,707
1,714

11,643
10,888
755

11,533
10,601
932

12,334
11,273
1,061

11,608
10,838
770

11,543
10,824
719

11,299
10,475
824

1,066
52,473

918
44,836

1,739
31,014

1,276
26,364

725
19,202

625
19,507

465
17,869

453
17,872

386
18,396

325
18,580

388
19,477

15,651
13,683
33,638

13,095
12,703
28,973

12,843
10,351
20,577

12,209
8,096
17,890

10,217
7,293
14,838

10,834
6,723
14,217

10,396
6,367
13,104

10,625
6,576
13,458

10,956
6,399
13,035

10,486
6,458
13,505

10,985
6,575
13,604

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.
5. Includes public utilities and firms engaged primarily in such activities as communi-




cations, 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.

Financial Markets A25
1.33

PRIME RATE CHARGED BY BANKS

Short-Term Business Loans1

Percent per year

Date of change

1991—-Jan.

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

1992—July

Rate

10.00
9.50
9.00
8.50
8.00
7.50
6.50

2

6.00

1994—Mar. 24
Apr. 19
May 17
Aug. 16
Nov. 15

6.25
6.75
7.25
7.75
8.50

Period

Average
rate

1991
1992
1993

8.46
6.25
6.00

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

1. The prime rate is one of several base rates that banks use to price short-term
business loans. The table shows the date on which a new rate came to be the predominant
one quoted by a majority of the twenty-five largest banks by asset size, based on the most




Period

Average
rate

1992—Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec

6.50
6.50
6.50
6.50
6.50
6.50
6.02
6.00
6.00
6.00
6.00
6.00

1993—Jar
Feb
Mar.
Apr.

6.00
6.00
6.00
6.00
6.00
6.00

Period

Average
rate

July
Aug
Sept
Oct
Nov
Dec

6.00
6.00
6.00
6.00
6.00
6.00

1994—Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov

6.00
6.00
6.06
6.45
6.99
7.25
7.25
7.51
7.75
7.75
8.15

recent Call Report. Data in this table also appear in the Board's H.1S (S19) weekly and
G.13 (41S) monthly statistical releases. For ordering address, see inside front cover,

A26 DomesticNonfinancialStatistics • January 1995
1.35

INTEREST RATES

Money and Capital Markets

Percent per year; figures are averages of business day data unless otherwise noted
1994
Item

1991

1992

1994, week ending

1993
July

Aug.

Sept.

Oct.

Sept. 30

Oct. 7

Oct. 14

Oct. 21

Oct. 28

MONEY MARKET INSTRUMENTS

1 Federal funds1,2,3
2 Discount window borrowing2,4

5.69
5.45

3.52
3.25

3.02
3.00

4.26
3.50

4.47
3.76

4.73
4.00

4.76
4.00

4.66
4.00

5.07
4.00

4.62
4.00

4.72
4.00

4.72
4.00

3
4
5

Commercial paper3,5,6
1-month
3-month
6-month

5.89
5.87
5.85

3.71
3.75
3.80

3.17
3.22
3.30

4.49
4.75
5.13

4.65
4.84
5.19

4.90
5.02
5.32

5.02
5.51
5.70

5.01
5.17
5.50

5.08
5.49
5.67

5.08
5.51
5.70

4.96
5.46
5.65

4.98
5.55
5.77

6
7
8

Finance paper, directly placed3,5,7
1-month
3-month
6-month

5.73
5.71
5.60

3.62
3.65
3.63

3.12
3.16
3.15

4.40
4.64
4.67

4.56
4.73
4.79

4.79
4.89
4.99

4.91
5.36
5.30

4.88
5.00
5.13

4.99
5.21
5.27

4.96
5.41
5.31

4.84
5.37
5.28

4.88
5.45
5.33

9
10

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

5.70
5.67

3.62
3.67

3.13
3.21

4.65
5.01

4.74
5.03

4.95
5.24

5.41
5.59

5.13
5.44

5.42
5.60

5.40
5.55

5.38
5.56

5.45
5.64

11
12
13

Certificates of deposit, secondary market3,9
1-month
3-month
6-month

5.82
5.83
5.91

3.64
3.68
3.76

3.11
3.17
3.28

4.45
4.73
5.15

4.60
4.81
5.17

4.85
5.03
5.40

4.98
5.51
5.79

4.97
5.21
5.60

5.05
5.51
5.77

5.03
5.49
5.73

4.91
5.47
5.74

4.94
5.56
5.87

5.86

3.70

3.18

4.74

4.80

5.01

5.52

5.26

5.54

5.56

5.45

5.55

5.38
5.44
5.52

3.43
3.54
3.71

3.00
3.12
3.29

4.33
4.75
5.17

4.48
4.88
5.25

4.62
5.04
5.43

4.95
5.39
5.75

4.66
5.21
5.58

4.90
5.36
5.71

4.91
5.30
5.67

4.94
5.38
5.76

5.01
5.48
5.86

5.42
5.49
5.54

3.45
3.57
3.75

3.02
3.14
3.33

4.39
4.81
5.20

4.50
4.91
5.36

4.64
5.02
5.38

4.96
5.39
5.72

4.79
5.22
n.a.

4.92
5.38
n.a.

4.92
5.34
n.a.

4.92
5.34
5.72

5.07
5.51
n.a.

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

3.43
4.05
4.44
5.14
5.54
5.87
6.29
6.59

5.48
6.13
6.48
6.91
7.12
7.30
7.67
7.58

5.56
6.18
6.50
6.88
7.06
7.24
7.62
7.49

5.76
6.39
6.69
7.08
7.28
7.46
7.87
7.71

6.11
6.73
7.04
7.40
7.58
7.74
8.08
7.94

5.92
6.56
6.87
7.25
7.44
7.60
7.99
7.83

6.07
6.69
7.02
7.38
7.57
7.72
8.08
7.91

6.04
6.63
6.95
7.30
7.48
7.65
8.01
7.86

6.10
6.69
7.01
7.37
7.54
7.71
8.06
7.92

6.22
6.86
7.16
7.53
7.70
7.86
8.16
8.03

8.16

7.52

6.45

7.61

7.55

7.81

8.02

7.92

8.02

7.95

8.00

8.11

6.56
6.99
6.92

6.09
6.48
6.44

5.38
5.82
5.60

5.88
6.26
6.23

5.89
6.23
6.21

5.87
6.23
6.28

6.05
6.37
6.52

5.96
6.31
6.43

5.97
6.32
6.50

6.07
6.38
6.44

6.00
6.31
6.49

6.15
6.46
6.64

9.23

8.55

7.54

8.42

8.36

8.60

8.83

8.73

8.82

8.76

8.80

8.91

8.77
9.05
9.30
9.80
9.32

8.14
8.46
8.62
8.98
8.52

7.22
7.40
7.58
7.93
7.46

8.11
8.31
8.44
8.80
8.45

8.07
8.25
8.38
8.74
8.36

8.34
8.49
8.61
8.98
8.62

8.57
8.71
8.82
9.20
8.80

8.48
8.61
8.73
9.10
8.71

8.57
8.70
8.81
9.20
8.80

8.50
8.65
8.76
9.14
8.73

8.54
8.69
8.80
9.18
8.87

8.65
8.80
8.91
9.29
8.85

8.17
3.24

7.46
2.99

6.89
2.78

n.a.
2.87

n.a.
2.78

n.a.
2.80

n.a.
2.82

n.a.
2.81

n.a.
2.87

n.a.
2.80

n.a.
2.78

n.a.
2.84

14 Eurodollar deposits, 3-month3,10

18
19
20

US. Treasury bills
Secondary market3,5
3-month
6-month
1-year
Auction average3,5,11
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

U.S. TREASURY NOTES AND BONDS

Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS

Moody's series13
30
31 Baa
32 Bond Buyer series14
CORPORATE BONDS

33 Seasoned issues, all industries'5
Rating group
34
35
36
37
38

Aa
A
Baa
A-rated, recently offered utility bonds
MEMO

Dividend-price ratio17
39 Preferred stocks18
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 for 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.
Department of the Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. State and local government general obligation bonds maturing in twenty years are
used in compiling this index. The twenty-bond index has a rating roughly equivalent to
Moodys' A1 rating. Based on Thursday figures.
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.
18. Data for the preferred stock yield was discontinued as of June 29, 1994.
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 A27
1.36

STOCK MARKET

Selected Statistics
1994

Indicator

1991

1992

1993
Feb.

Mar.

Apr.

June

May

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
Finance
5

206.35
258.16
173.97
92.64
150.84

229.00
284.26
201.02
99.48
179.29

249.71
300.10
242.68
114.55
216.55

261.97
322.41
276.67
116.22
217.12

257.32
318.08
265.68
107.72
211.02

247.97
304.48
250.43
105.04
208.12

249.56
307.58
244.75
102.89
211.30

251.21
308.66
246.64
103.27
215.89

249.29
307.34
244.21
102.73
210.91

256.08
316.56
244.67
105.61
214.77

257.61
322.19
239.10
102.30
211.90

255.22
321.53
230.71
101.67
203.33

6 Standard & Poor's Corporation
(1941-43 = 10)1

376.20

415.75

451.63

471.58

463.81

447.23

450.90

454.83

451.40

464.24

466.96

463.81

7 American Stock Exchange
(Aug. 31, 1973 = 50)2

360.32

391.28

438.77

476.25

465.72

437.01

437.54

436.08

430.10

444.89

456.31

456.25

179,411
12,486

202,558
14,171

263,374
18,188

307,269
19,630

311,096
19,481

301,242
15,805

269,812
15,727

265,341
18,400

250,382
14,378

277,877
15,874

292,356
18,785

301,327
20,731

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

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

36,660

43,990

60,310

62,020

61,960

60,700

59,870

60,800

61,930

63,070

61,630

62,150

Free credit balances at brokers4
11 Margin accounts5
12 Cash accounts

8,290
19,255

8,970
22,510

12,360
27,715

12,890
25,665

13,185
26,190

13,175
24,800

12,715
23,265

12,560
28,585

12,620
25,790

12,090
24,400

12,415
25,230

12,875
24,180

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

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

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




Jan. 3, 1974
50
50
50

credit is collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 1934;
Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; and
Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T
the initial margin required for writing options on securities, setting it at 30 percent of the
current market value of the stock underlying the option. On Sept. 30, 1985, the Board
changed the required initial margin, allowing it to be the same as the option maintenance
margin required by the appropriate exchange or self-regulatory organization; such maintenance margin rules must be approved by the Securities and Exchange Commission.
Effective Jan. 31, 1986, the SEC approved new maintenance margin rules, permitting
margins to be the price of the option plus 15 percent of the market value of the stock
underlying the option.
Effective June 8,1988, margins were set to be the price 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 DomesticNonfinancialStatistics • January 1995
1.38

FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year

Calendar year

Type of account or operation

1994
1992

1993

1994
May

US. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus or deficit ( - ) , total
8
On-budget
9 Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (—))
12 Other 2

June

July

Aug.

Sept.

Oct.

1,090,453
788,027
302,426
1,380,856
1,128,518
252,339
-290,403
-340,490
50,087

1,153,226
841,292
311,934
1,408,532
1,141,945
266,587
-255,306
-300,653
45,347

1,257,187
922,161
335,026
1,460,557
1,181,185
279,372
-203,370
-259,024
55,654

83,546
55,366
28,179
115,602
89,731
25,871
-32,057
-34,365
2,308

138,124
106,014
32,110
123,275
108,166
15,108
14,850
-2,152
17,002

84,827
60,145
24,681
118,025
93,164
24,861
-33,198
-33,018
-180

97,338
70,949
26,389
121,608
95,279
26,329
-24,270
-24,330
60

135,895
105,212
30,683
131,903
103,189
28,714
3,993
2,024
1,969

89,024
65,385
23,639
121,472
95,298
26,174
-32,448
-29,914
-2,535

310,918
-17,305
-3,210

248,594
6,283
429

184,998
16,564
1,808

27,649
21,537
-17,132

2,098
-23,797
7,049

-3,245
30,705
5,737

52,350
-9,802
-18,374

-11,996
-5,855
13,858

32,457
-480
471

58,789
24,586
34,203

52,506
17,289
35,217

35,942
6,848
29,094

27,194
5,675
21,519

50,991
9,356
41,635

20,285
3,683
16,603

30,087
5,994
24,093

35,942
6,848
29,094

36,422
5,164
31,258

MEMO

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

1. Since 1990, off-budget items have been the social security trust funds (federal
old-age survivors insurance and federal disability insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on




gold; net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF
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 U.S. Office of Management and Budget, Budget of
the U.S. Government.

Federal FinanceA33
1.39

U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Calendar year

Fiscal year

1993

1994

1994

1993

1992

Source or type
1994

H2

HI

H2r

HI

Aug.

Sept.

Oct.

RECEIPTS

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, n e t . . .
10 Employment taxes and contributions
11
Self-employment taxes and contributions .
12 Unemployment insurance
13 Other net receipts
14
15
16
17

1,257,187r

540,484

593,212

582,054

651,944

97,338

135,895

89,024

509,680
430,211
28
154,989
75,546

542,738
459,699
70
160,047
77,077

246,938
215,584
10
39,288
7,942

255,556
209,517
25
113,510
67,468

262,073
228,423
2
41,768
8,114

274,736
225,387
63
117,928
68,642

43,170
40,459
1
4,016
1,305

57,964
35,201
1
24,811
2,050

43,239
40,480
0
3,919
1,160

131,548
14,027
428,300
396,939
20,604
26,556
4,805

154,205
13,820
461,475
428,810
24,433
28,004
4,661

58,022
7,219
192,599
180,758
3,988
9,397
2,445

69,044
7,198
227,177
208,776
16,270
16,074
2,326

68,266
6,514
206,176
192,749
4,335
11,010
2,417

80,536
6,933
248,301
228,714
20,762
17,301
2,284

4,079
971
39,292
34,020
0
4,880
391

28,921
1,656
40,371
39,614
3,578
346
411

5,513
2,043
32,687
31,263
464
1,073
351

48,057
18,802
12,577
18,273

55,225
20,099
15,225
22,041

23,456
9,497
5,733
11,458

23,398
8,860
6,494
9,879

25,994
10,215
6,617
9,227

26,444
9,500
8,197
11,164

5,989
2,039
1,239
2,502

5,518
1,799
1,254
1,725

4,275
1,848
1,206
2,300

1,460,557

723,527

673,915

727,701

710,330

121,608

131,903

121,472

140,535
6,565
7,996
2,462
8,592
11,872

146,660
10,186
8,880
1,663
11,227
7,516

133,739
5,800
8,502
2,036
9,179
7,451

23,711
990
1,654
390
1,745
382

27,657
2,323
1,772
987
2,156
236

18,801
4,339
1,115
525
3,418
2,048

-14,537
16,076
4,929

-1,490
19,597
4,288

-5,114
16,772
5,592

-3,026
3,719
1,138

2,623
3,583
1,469

858
3,434
1,171

1,153,226

1 All sources

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
OUTLAYS

18 All types

1,408^32'

19
20
21
22
23
24

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

291,086
16,826
17,030
4,319
20,239
20,443

281,451
17,249
17,602
5,398
20,902
15,131

155,231
9,916
8,521
3,109
11,467
8,852

25
26
27
28

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

-22,725
35,004
9,051

-4,851
36,835
11,877

-7,697
18,425
4,464

50,012

44,730

21,241

24,080

26,760"

18,976

4,342

5,088

3,705

29 Health
30 Social security and Medicare
31 Income security

99,415
435,137
207,257

106,495
464,314
213,972

47,232
232.109
98,382

49,882
195,933
107,870

52,958
223,735
102,375'

53,121
232,777
109,103

9,426
39,262
16,848

9,106
39,944
17,101

8,631
37,801
15,275

32
33
34
35
36

35,720
14,955
13,009
198,811
-37,386

37,637
15,283
11,348
202,957
-37,772

18,561
7,238
8,223
98,692
-20,628

16,385
7,482
5,205
99,635
-17,035

19,852
7,400
6,531
99,914
-20,344

16,686
7,718
5,076
99,844
-17,308

3,130
1,204
1,325
18,322
-3,051

4,257
1,362
1,292
16,944
-5,996

1,677
1,340
1,261
18,669
-2,596

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. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and
Outlays of the US. Government-, and U.S. Office of Management and Budget, Budget of
the US. Government, Fiscal Year 1995.

A30
1.40

DomesticNonfinancialStatistics • January 1995
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1994

1993

1992
Item
Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

4,083

4,196

4,250

4,373

4,436

4,562

4,602

4,673

4,692

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

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
3,295
1,117

4,536
3,382
1,154

4,575
3,434
1,141

4,645
3,442
1,202

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

18
18
0

19
19
0

20
20
0

21
21
0

25
25
0

27
27
0

26
26
0

27
27
0

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

5 Agency securities
6 Held by public
7 Held by agencies

MEMO

11 Statutory debt limit

4,086

4,140

4,256

4,316

4,446

4,491

4,559

4,605

4,085
0

4,139
0

4,256
0

4,315
0

4,445
0

4,491
0

4,559
0

4,605
n.a.

4,145

9 Public debt securities
10 Other debt1

3,973
3,972
0

8 Debt subject to statutory limit

4,145

4,145

4,370

4,900

4,900

4,900

4,900

4,900

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
1994

1993
Type and holder

1990

1991

1992

1993
Q4

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

By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable1
State and local government series
Foreign issues2
Government
Public
Savings bonds and notes
Government account series3
Non-interest-bearing

By holder4
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20 Insurance companies
21 Other companies
22 State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25 Foreign and international5
26 Other miscellaneous investors6

Q2

Q3

3364.8

3,801.7

4,177.0

4,535.7

4,535.7

4,575.9

4,645.8

4,689.5

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

4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4

4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4

4,572.6
3,042.9
721.2
1,802.5
504.2
1,529.7
145.5
42.7
42.7
.0
172.6
1,138.4
3.3

4,642.5
3,051.0
698.5
1,835.7
501.8
1,591.5
143.4
42.2
42.2
.0
174.9
1,200.6
3.2

3,091.6
697.3
1,867.5
511.8
1,597.9
137.4
42.0
42.0
.0
176.4
1,211.7
3.2

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
197.5
192.5
534.8

1,153.5
334.2
3,047.7
316.0
80.5
216.0
213.0
564.0

1,153.5
334.2
3,047.7
316.0
80.5
216.0
213.0
564.0

1,141.7
342.6
3,094.6
344.3
70.5
218.1
216.3
582.8

1,203.0
357.7
3,088.2
350.0
59.5
222.0
226.3
585.0

126.2
107.6
458.4
637.7

138.1
125.8
491.8
651.3

157.3
131.9
549.7
702.4

171.9
137.9
623.3
725.0

171.9
137.9
623.3
725.0

175.0
140.1
633.5
714.0

177.1
144,0
633.2
693.1

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.




Q1

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 A3 3
1.42

Transactions1

U.S. GOVERNMENT SECURITIES DEALERS
Millions of dollars, daily averages
1994

1994, week ending

Item
July

Aug.

Sept.

Aug. 31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

Oct. 5

Oct. 12

Oct. 19

Oct. 26

48,137

52,444

52,276

46,252

47,300

49,307

54,340

57,809

50,656

52,378

58,789

52,545

79,197
38,764
15,535
37,607

84,066
50,836
15,998
32,443

80,107
40,213
17,364
34,591

58,878
38,257
18,255
22,166

61,353
34,654
16,130
28,909

72,323
42,631
15,931
46,091

82,436
41,298
16,689
34,792

96,879
41,604
19,413
25,603

89,320
39,096
19,984
39,170

82,896
39,218
17,507
53,701

77,633
41,079
16,369
37,674

97,394
46,033
16,989
30,635

94,926
731
13,306

105,411
685
12,052

99,496
724
12,999

79,274
881
9,351

81,260
494
10,935

95,778
844
15,707

102,620
706
12,541

113,259
753
11,027

103,050
861
16,433

99,394
485
18,650

104,095
517
13,372

113,645
718
11,912

71,173
14,805
24,301

81,935
15,313
20,390

73,099
16,640
21,592

64,113
17,374
12,814

62,047
15,636
17,974

68,483
15,087
30,383

75,454
15,983
22,251

83,033
18,660
14,576

76,022
19,123
22,738

75,097
17,023
35,051

73,406
15,853
24,302

82,326
16,271
18,723

2

OUTRIGHT TRANSACTIONS

1
2
3
4
5

By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed

By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
U.S. Treasury
9
10 Federal agency
11 Mortgage-backed
6
7
8

FUTURES TRANSACTIONS3

By type of deliverable security
12 U.S. Treasury bills
Coupon securities, by maturity
13 Five years or less
14 More than five years
15 Federal agency
16 Mortgage-backed

914

814

1,157

802

912

1,177

1,552

864

1,339

1,178

1,301

890

2,692
12,198
0
0

2,779
13,615
0
0

3,521
13,548
0
0

2,652
13,196
0
0

3,505
13,263
n.a.
0

4,340
14,221
0
0

3,745
15,102
0
0

2,744
12,001
0
0

2,888
12,417
0
0

2,352
11,078
0
0

2,572
11,431
0
0

2,740
13,980
0
0

OPTIONS TRANSACTIONS4

By type of underlying security
17 U.S. Treasury bills
Coupon securities, by maturity
18 Five years or less
19 More than five years
20 Federal agency
21 Mortgage-backed

0

0

0

0

0

0

0

0

0

0

0

0

3,493
4,068
0
791

4,098
5,162
0
675

3,566
4,714
0
523

3,308
4,493
0
286

3,033
4,144
0
410

4,353
4,767
0
332

3,120
5,033
0
704

3,395
4,420
0
527

4,203
5,664
0
768

6,176
5,696
0
388

4,170
5,101
0
447

5,286
6,257
0
599

1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Monthly averages are based on the number of trading days in the
month. Transactions are assumed evenly distributed among the trading days of the report
week. Immediate, forward, and futures transactions are reported at principal value, which
does not include accrued interest; options transactions are reported at the face value of the
underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery refers to purchases or sales of securities (other than mortgage-backed 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 deliveiy of
mortgage-backed agency securities include purchases and sales for which delivery is scheduled in
thirty business days or less. Stripped securities arereportedat market value by maturity of coupon
or corpus.




Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All
futures transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged
on an organized exchange or in the over-the-counter market, and include options on
futures contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6, 1994.

A32
1.43

DomesticNonfinancialStatistics • January 1995
U.S. GOVERNMENT SECURITIES DEALERS

Positions and Financing1

Millions of dollars
1994

1994, week ending

Item
July

Aug.

Sept.

Aug. 31

Sept. 7

Sept. 14

Sept. 21

Sept. 28

Oct. 5

Oct. 12

Oct. 19

Positions2
NET OUTRIGHT POSITIONS3

By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
Five years or less
2
3
More than five years
4 Federal agency
5 Mortgage-backed

4,837

3,951

1,892

3,428

4,536

3,329

4,569

-2,886

-5,041

7,108

5,100

-19,171
-28,672
19,979
45,633

-10,548
-23,009
19,384
42,402

-16,154
-22,764
21,300
37,636

-7,890
-21,785
22,066
39,557

-12,922
-21,390
19,988
39,194

-17,884
-21,848
19,704
36,791

-17,582
-24,332
22,727
36,534

-14,920
-22,864
22,245
37,702

-20,732
-24,944
23,172
38,767

-19,668
-25,604
24,176
38,432

-20,534
-29,001
21,782
36,609

-3,552

-5,172

-2,829

-4,027

-2,750

-3,160

-3,691

-2,574

182

176

-1,345

5,623
-616
0
0

5,561
-5,231
0
0

8,285
-1,681
0
0

5,257
-4,252
0
0

5,912
-1,649
0
0

8,943
-2,146
0
0

9,721
-1,471
0
0

8,156
-2,318
0
0

9,710
1,333
0
0

7,595
-340
0
0

NET FUTURES POSITIONS

6
7
8
9
10

By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed

8,109
-365
0
0

Financing5
Reverse repurchase agreements
11 Overnight and continuing
12 Term

254,524
397,646

271,184
377,559

261,219
387,909

252,868
336,402

253,172
372,589

266,783
390,638

264,681
392,971

259,902
402,932

262,402
361,674

266,164
371,325

253,313
405,719

Securities borrowed
13 Overnight and continuing
14 Term

167,116
51,906

175,069
44,620

173,812
44,528

171,565
45,804

172,181
44,573

171,039
45,876

175,703
44,026

174,406
44,362

180,525
41,997

179,441
42,108

183,088
45,726

2,313r
3

2,096r
31

2,015r
129

2,089r
80

2,128
n.a.

2,055
n.a.

1,885
n.a.

1,917
129

2,283
n.a.

2,214
53

2,150
n.a.

Repurchase agreements
17 Overnight and continuing
18 Term

465,675
363,779

490,518
351,975

473,761
359,336

472,584
308,801

482,859
335,528

482,192
362,393

478,674
365,882

455,305
381,660

459,803
330,918

458,972
340,792

463,363
376,463

Securities loaned
19 Overnight and continuing
20 Term

4,323
1,372

4,132
1,103

4,305
835

4,658
1,164

3,945
959

3,586
671

3,931
691

5,324
1,023

5,827
820

5,505
1,104

5,557
1,363

Securities pledged
21 Overnight and continuing
22 Term

34,700r
1,085

28,599r
4,616

32,459r
4,485

31,509r
6,442

28,808
4,543

30,439
4,310

34,140
4,434

35,808
4,728

34,702
4,215

33,765
3,973

34,316
3,894

Collateralized loans
23 Overnight and continuing
24 Term

20,164
n.a.

22,395
n.a.

18,407
6,130

21,062
n.a.

18,301
n.a.

20,502
5,333

18,493
5,765

16,673
7,292

17,220
n.a.

17,813
n.a.

21,269
n.a.

MEMO: Matched book
Securities in
25 Overnight and continuing
26 Term

207,656
369,889

233,796
349,669

224,344
355,553

213,989
312,893

222,706
335,392

226,609
360,530

228,584
357,269

218,267
373,620

228,572
339,462

221,701
346,234

226,856
379,079

Securities out
27 Overnight and continuing
28 Term

268,075
294,642

290,385
289,736

282,829
294,208

270,225
250,127

286,237
269,926

284,891
295,396

288,381
301,260

272,812
315,458

279,305
275,978

271,377
283,186

281,665
316,415

Securities received as pledge
15 Overnight and continuing
16 Term

6

1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Weekly figures are close-of-business Wednesday data. Positions for
calendar days of the report week are assumed to be constant. Monthly averages are based
on the number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright postitions include immediate and forward positions. Net immediate
positions include securities purchased or sold (other than mortgage-backed agency securities) that have been delivered or are scheduled to be delivered in five business days or less
and "when-issued" securities that settle on the issue date of offering. Net immediate
positions for mortgage-backed agency securities include securities purchased or sold that
have been delivered or are scheduled to be delivered in thirty business days or less.
4. Futures positions reflect standardized agreements arranged on an exchange. All
futures positions are included regardless of time to delivery.




5. Overnight financing refers to agreements made on one business day that mature on
the next business day; continuing contracts are agreements that remain in effect for more
than one business day but have no specific maturity and can be terminated without
advance notice by either party; term agreements have a fixed maturity of more than one
business day. Financing data are reported in terms of actual funds paid or received,
including accrued interest.
6. 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 "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6, 1994.

Federal Finance A3 3
1.44

FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
1994
Agency

1990

1992

1991

1993
Apr.

1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department1
4 Export-Import Bank2,3
5 Federal Housing Administration4
6 Government National Mortgage Association certificates of
participation
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association6
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association9
16 Financing Corporation10
17 Farm Credit Financial Assistance Corporation11
18 Resolution Funding Corporation12

May

June

July

Aug.

434,668

442,772

483,970

570,711

619,302

633,366

646,661

659,206

674,020

42,159
7
11,376
393

41,035
7
9,809
397

41,829
7
7,208
374

45,193
6
5,315
255

44,390
6
4,853
123

43,681
6
4,853
131

43,040
6
4,389
138

43,416
6
4,389
82

43,861
6
4,389
101

0
6,948
23,435
0

0
8,421
22,401
0

0
10,660
23,580
0

0
9,732
29,885
0

0
9,732
29,676
0

0
9,473
29,218
0

0
9,473
29,037
0

0
9,473
29,466
0

0
9,773
29,592
0

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

525,518
141,577
49,993
201,112
53,123
39,784
8,170
1,261
29,996

574,912
153,539
65,621
218,845
52,672
44,306
8,170
1,261
29,996

589,685
156,955
71,274
223,173
52,534
45,820
8,170
1,261
29,996

603,621
160,822
73,340
227,897
53,692
47,940
8,170
1,261
29,996

615,790
166,137
78,929
230,484
52,276
48,069
8,170
1,261
29,996

630,159
169,284
81,270
237,564
53,844
48,313
8,170
1,261
29,996

179,083

185,576

154,994

128,187

118,386

116,092

115,603

113,689

112,804

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

5,309
9,732
4,760
6,325
0

4,847
9,732
0
6,075
0

4,847
9,473
0
4,675
0

4,383
9,473
0
4,375
0

4,383
9,473
0
4,375
0

4,383
9,773
0
4,375
0

52,324
18,890
70,896

48,534
18,562
84,931

42,979
18,172
64,436

38,619
17,578
45,864

37,839
17,360
42,533

37,124
17,419
42,554

35,999
17,357
44,016

35,104
17,372
42,982

34,594
17,402
42,322

MEMO

19 Federal Financing Bank debt13
20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1,1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the securities
market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration,
the Department of Health, Education, and Welfare, the Department of Housing and Urban
Development, the Small Business Administration, and the Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes Federal Agricultural Mortgage Corporation, therefore details do not sum to total.
Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing
Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.




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
1.45

DomesticNonfinancialStatistics • January 1995
NEW SECURITY ISSUES

Tax-Exempt State and Local Governments

Millions of dollars
1994
Type of issue or issuer,
or use

1991

1992

1993
Mar.

1 All issues, new and refunding1

Apr.

May

June

July

Aug.

Sept.

Oct.

154,402

226,818

279,945

15,461

10,129

12,388

14,779

12,450

12310

7,634

9,790

By type of issue
2 General obligation
3 Revenue

55,100
99,302

78,611
136,580

90,599
189,346

7,371
8,090

3,469
6,660

4,029
8,359

5,556
9,223

7,110
5,340

4,177
8,133

2,309
5,325

2,891
6,899

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

24,939
80,614
48,849

24,874
138,327
63,617

27,999
178,714
73,232

3,302
6,145
6,014

1,013
5,235
3,881

1,158
8,085
3,145

1,733
9,335
3,711

4,686
4,931
2,833

1,675
7,963
2,672

1,009
4,962
1,663

952
6,511
2,327

116,953

101,865

91,434

10,114

8,147

9,125

9,726

10348

10,593

5,961

8383

21,121
13,395
21,039
25,648
8,376
30,275

18,852
14,357
12,164
16,744
6,188
33,560

16,831
9,167
12,014
13,837
6,862
32,723

1,859
401
540
1,227
470
5,617

2,102
1,453
707
1,475
601
1,809

1,933
1,037
423
2,136
657
2,939

1,945
2,033
856
1,312
935
2,645

1,147
290
694
1,698
959
5,560

2,075
1,088
784
2,117
1,128
3,401

883
334
433
1,897
403
2,011

1,596
1,135
1,887
n.a.
420
2,396

beginning

January

1993;

Investment

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
Dealer's Digest before then.

Company

U.S. Corporations

Millions of dollars
1994
Type of issue, offering,
or issuer

1991

1992

1993
Feb.

1 AU issues'
2 Bonds2
By type of offering
3 Public, domestic
4 Private placement, domestic3
5 Sold abroad

465,246
389,822

559,827
471,502

Mar.

Apr.

764309

47,893r

52,881

641,498

40,087r

43,671

May

June

35,no'

44,262r

49,456r

r

40,589r

43,126

r

r

29,645

July

Aug.'

Sept.

29391'

38,898

30,923

25,927r

35,566

27376

286,930
74,930
27,962

378,058
65,853
27,591

486,879
116,240
38,379

32,770'
n.a.
7,317

41,097
n.a.
2,574

26,436
n.a.
3,209

33,414
n.a.
7,175

38,387
n.a.
4,738

22,194'
n.a.
3,733'

31,160
n.a.
4,406

24,403
n.a.
3,172

86,628
36,666
13,598
23,944
9,431
219,555

82,058
43,111
9,979
48,055
15,394
272,904

88,002
60,443
10,756
56,272
31,950
394,076

3,586
2,188
100
l,768r
2,115
30,330

2,446
3,020
920
1,632
2,090
33,563

2,229
990
97
546
1,298
24,484r

3,266
2,496
150
1,071
944
32,662r

2,093r
3,177
1,082
681
618
35,475r

2,107
1,428'
248
472
429
21,243'

2,054
3,769
315
320
345
28,764

2,165
2,077
229
707
526
21,872

12 Stocks2

75,424

88325

n.a.

7,806

9,210

5,465

3,674r

6331 r

3,664r

3332

3348

By type of offering
13 Public preferred
14 Common
15 Private placement3

17,085
48,230
10,109

21,339
57,118
9,867

19,898
87,356
11,917

1,318
6,488
n.a.

1,969
7,241
n.a.

2,248
3,218
n.a.

695
2,979r
n.a.

1,366
4,965'
n.a.

599
3,065'
n.a.

710
2,622
n.a.

555
2,793
n.a.

24,111
19,418
2,439
3,474
475
25,507

22,723
20,231
2,595
6,532
2,366
33,879

22,271
25,761
2,237
7,050
3,439
49,889

1,558
1,630
589
43
120
3,867

2,499
1,491
358
480
0
4,381

2,696
773
106
75
0
1,815

956
850
105r
239
32
1,492

1,056
1,853'
449
297
28
2,647'

489
708'
75
0
0
2,386

569
838
50
180
0
1,691

860
865
223
78
0
1,323

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. Beginning July 1993, Securities Data Company and the Board of Governors
of the Federal Reserve System.

Securities Market and Corporate Finance A35
1.47

Net Sales and Assets1

OPEN-END INVESTMENT COMPANIES
Millions of dollars

1994
Item

1992

1993
Feb.

Mar.

Apr.

May

June

Aug.r

July

Sept.

1 Sales of own shares2

647,055

851,885

78,032

87,381

71,164

65,179

65,333

59,258

64,833

62,353

2 Redemptions of own shares
3 Net sales3

447,140
199,915

567,881
284,004

56,235
21,797

73,395
13,986

61,925
9,239

55,036
10,144

56,068
9,265

50,275
8,983

53,242
1,592

53,554
8,799

1,056,310

1,510,209

1,561,705

1,500,745

1,510,827

1,529,478

1,509,998

1,552,652

1,604,961

1,587,586

73,999
982,311

100,209
1,409,838

113,975
1,447,730

112,399
1,388,347

118,221
1,392,606

119,982
1,409,496

114,885
1,395,113

120,129
1,432,523

120,315
1,484,646

118,457
1,469,129

4 Assets4
5 Cash5
6 Other

4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities
and Exchange Commission. Data reflect underwritings of newly formed companies after
their initial offering of securities.

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

1991

1992

1994

1993

1992
Account

1993
Q4

1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits-tax liability
4 Profits after taxes
5 Dividends
6 Undistributed profits

Ql

Q2

Q3

Q4

Ql

Q2

Q3

390.3
365.2
131.1
234.1
160.0
74.1

485.8
462.4
173.2
289.2
191.7
97.5

432.5
413.5
148.6
264.8
182.1
82.7

442.5
432.7
159.8
273.0
188.2
84.7

473.1
456.6
171.8
284.8
190.7
94.1

493.5
458.7
169.9
288.9
193.2
95.6

533.9
501.7
191.5
310.2
194.6
115.6

508.2
483.5
184.1
299.4
196.3
103.0

546.4
523.1
201.7
321.4
202.5
118.9

557.1
539.2
208.7
330.5
207.9
122.6

5.8
19.4

7 Inventory valuation
8 Capital consumption adjustment

405.1
395.9
139.7
256.2
171.1
85.1
-6.4
15.7

-6.2
29.5

2.1
16.9

-11.2
21.0

-10.0
26.5

3.0
31.7

-6.5
38.8

-12.3
37.0

-14.1
37.4

-19.6
37.5

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
1994

1993
Industry

1992

1993

19941
Ql

Q2

Q3

Q4

Ql

Q2

Q3

Q41

1 Total nonfarm business

546.60

586.73

63837

563.48

578.95

594.56

604.51

619.34

637.08

651.92

645.13

Manufacturing
2 Durable goods industries
3 Nondurable goods industries

73.32
100.69

81.45
98.02

92.78
99.77

78.19
95.80

80.33
97.22

82.74
99.74

83.64
98.51

86.03
99.02

91.71
102.28

98.97
98.39

94.44
99.39

Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other2

8.88

10.08

11.24

8.98

9.10

11.09

10.92

11.43

10.70

11.57

11.27

6.67
8.93
7.04

6.14
6.42
9.22

6.72
3.95
10.53

6.16
7.26
8.96

5.94
6.63
8.92

5.89
6.70
8.74

6.55
5.06
10.23

7.46
4.23
10.77

5.36
4.53
9.70

6.65
3.86
10.22

7.40
3.16
11.42

48.22
23.99
268.84

52.55
23.43
299.44

52.25
24.20
336.93

49.98
23.79
284.35

50.61
23.83
296.35

52.96
22.98
303.74

55.60
23.27
310.73

48.68
24.51
327.20

53.55
22.96
336.28

54.15
24.35
343.76

52.60
24.97
340.48

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 1995

1.51

DOMESTIC FINANCE COMPANIES

Assets and Liabilities1

Billions of dollars, end of period; not seasonally adjusted
1993 R

1992

Account

1991 R

1992 R

1994 R

1993 R
Q4 R

Q1

Q2

Q3

Q4

Q1

Q2

ASSETS
1
2
3
4

Accounts receivable, gross2
Consumer
Business
Real estate

5
6

LESS: Reserves for unearned income
Reserves for losses

7
8
9

484.6
121.7
295.8
67.1

491.8
118.3
301.3
72.2

482.8
116.5
294.6
71.7

491.8
118.3
301.3
72.2

477.9
112.6
292.7
72.5

473.7
110.6
291.8
71.4

474.0
111.0
291.9
71.1

482.8
116.5
294.6
71.7

494.5
120.1
302.3
72.1

511.3
124.3
313.2
73.8

56.1
13.1

53.2
16.2

50.7
11.2

53.2
16.2

50.1
15.2

49.7
10.8

49.5
11.2

50.7
11.2

51.2
11.6

51.9
12.1

Accounts receivable, net
All other

415.4
144.9

422.4
142.5

420.9
170.9

422.4
142.5

412.6
150.6

413.2
151.5

413.3
163.9

420.9
170.9

431.7
171.2

447.3
174.6

Total assets

560.3

564.9

591.8

564.9

5633

564.7

5773

591.8

602.9

621.9

42.3
159.5

37.6
156.4

25.3
159.2

37.6
156.4

34.1
149.8

29.4
144.5

25.8
149.9

25.3
159.2

24.2
165.9

23.3
171.2

LIABILITIES AND CAPITAL
10
11

Bank loans
Commercial paper

12
13
14
15
16
17

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.

35.5
190.2
68.4
64.5

39.5
196.3
68.0
67.1

42.7
206.0
87.1
71.4

39.5
196.3
68.0
67.1

43.1
197.3
72.5
66.5

45.0
199.9
77.8
68.1

44.6
204.2
83.8
68.9

42.7
206.0
87.1
71.4

41.1
211.7
90.5
69.5

44.7
219.6
89.9
73.2

18

Total liabilities and capital

560.3

564.9

591.8

564.9

563.3

564.7

5773

591.8

602.9

621.9

Debt

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets of finance companies;
securitized pools are not shown, as they are not on the books.

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
1994

Type of credit

1991 R

1992R

1993 R

Apr/

June

May

Jul/

Aug.r

Sept.

Seasonally adjusted
1 Total

523,824

540,679

546,020

565,290

573,851

576,239

571,470

579,032

590,528

2 Consumer
3 Real estate2
4 Business

154,389
67,376
302,060

157,857
72,496
310,325

160,802
71,991
313,226

163,796
73,066
328,428

166,534
74,371
332,946

168,531
74,503
333,205

166,639
75,321
329,510

166,921
75,524
336,587

172,559
76,428
341,542

Not seasonally adjusted
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Total

527,329

544,691

550,387

567,193

573,773

577,546

568,648

575,769

588,541

Consumer
Motor vehicles
Other consumer3
Securitized motor vehicles4
Securitized other consumer4
Real estate2
Business
Motor vehicles
Retail5
Wholesale6
Leasing
Equipment
Retail
Wholesale6
Leasing
Other business7
Securitized business assets4
Retail
Wholesale
Leasing

155,671
62,232
59,468
23,361
10,610
67,132
304,526
91,554
23,967
31,164
36,423
140,396
30,952
9,671
99,773
63,802
8,774
576
5,285
2,913

159,558
57,259
61,020
29,734
11,545
72,243
312,890
89,011
20,541
29,890
38,580
151,424
33,521
8,680
109,223
60,856
11,599
1,120
5,756
4,723

162,770
56,057
60,396
36,024
10,293
71,727
315,890
95,173
18,091
31,148
45,934
145,452
35,513
8,001
101,938
53,997
21,268
2,483
10,584
8,201

164,500
60,660
62,146
31,328
10,366
73,297
329,396
102,309
20,772
31,308
50,229
147,267
37,035
8,329
101,903
56,962
22,858
2,058
14,349
6,451

165,580
59,398
62,806
32,623
10,753
74,215
333,978
104,023
20,882
31,215
51,926
151,182
38,518
8,421
104,243
55,433
23,340
2,406
14,577
6,357

167,909
59,788
64,530
32,705
10,886
73,755
335,882
105,828
21,024
31,188
53,616
151,542
39,062
8,419
104,061
55,849
22,663
2,619
14,240
5,804

164,749
58,107
65,095
31,848
9,699
75,379
328,520
101,878
20,670
26,154
55,054
151,480
39,348
8,859
103,273
54,444
20,718
2,480
12,817
5,421

166,501
58,589
66,608
31,787
9,517
76,012
333,256
102,655
20,272
25,875
56,508
151,388
39,629
8,968
102,791
56,389
22,824
2,656
14,147
6,021

172,014
60,522
69,796
32,372
9,324
76,589
339,938
106,365
21,164
27,201
58,000
152,782
39,357
9,119
104,306
58,101
22,690
2,564
14,411
5,715

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
balances are no longer carried on the balance sheets of the loan originator.
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.

Real Estate A37
1.53

MORTGAGE MARKETS

Mortgages on New Homes

Millions of dollars except as noted
1994
Item

1991

1992

1993
Apr.

May

June

July

Aug.

Sept.

Oct.

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 rate1
7 Effective rate1'3
8 Contract rate (HUD series)4

155.0
114.0
75.0
26.8
1.71

158.1
118.1
76.6
25.6
1.60

163.1
123.0
78.0
26.1
1.30

166.1
127.6
79.3
26.7
1.16

171.6
132.2
78.5
27.6
1.45

172.6
130.0
78.0
26.5
1.30

166.0
129.0
79.4
27.5
1.35

167.6
129.3
79.0
28.0
1.38

170.6
133.7
79.4
27.9
1.36

173.4
131.9
78.3
27.6
1.22

9.02
9.30
9.20

7.98
8.25
8.43

7.02
7.24
7.37

7.13
7.31
8.56

7.20
7.43
8.61

7.41
7.62
8.72

7.50
7.71
8.64

7.45
7.67
8.68

7.48
7.70
8.96

7.55
7.76
n.a.

9.25
8.59

8.46
7.71

7.46
6.65

8.63
7.93

8.63
8.05

9.03
8.01

8.65
8.23

8.66
8.15

9.10
8.28

n.a.
8.66

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total
12 ' F H A / V A i n s u r e d
13 Conventional

128,983
21,796
107,187

158,119
22,593
135,526

190,861
23,857
167,004

201,542
25,088
176,454

206,147
25,303
180,844

208,180
25,390
182,790

210,666
25,477
185,189

212,680
25,604
187,076

215,249
25,800
189,449

218,479
26,226
192,253

Mortgage transactions (during period)
14 Purchases

37,202

75,905

92,037

6,677

7,238

4,386

4,628

4,077

4,266

5,003

Mortgage commitments (during period)
15 Issued7
16 To sell8

40,010
7,608

74,970
10,493

92,537
5,097

4,788
90

3,801
281

4,268
1

3,798
0

3,776
0

4,880
0

3,421
48

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

26,809
460
26,349

33,665
352
33,313

55,012
321
54,691

59,352
309
59,043

60,799
304
60,495

62,232
299
61,933

62,993
296
62,697

64,118
291
63,827

66,478
287
66,191

69,340
284
69,057

Mortgage transactions (during period)
20 Purchases
21 Sales

99,965
92,478

191,125
179,208

229,242
208,723

14,589
14,175

10,629
10,228

8,341
8,097

6,535
6,338

6,407
5,828

5,512
5,213

8,351
8,139

114,031

261,637

274,599

22,765

9,586

7,252

5,820

5,649

5,035

7,288

FEDERAL HOME LOAN MORTGAGE CORPORATION

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 thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.

A38
1.54

DomesticNonfinancialStatistics • January 1995
MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1993
Type of holder and property

1990

1991

1994

1992
Q2

Q3

Q4

Q1

Q2P

1 All holders

3,762,872

3,924,782

4,049,256

4,109,649

4,167,465

4,209,912

4,236,258

4,279,533

By type of property
2 One- to four-family residences
3 Multifamily residences
4 Commercial
5

2,616,288
309,369
758,313
78,903

2,780,044
306,410
759,023
79,306

2,959,558
295,417
713,862
80,419

3,034,990
291,258
702,720
80,681

3,095,463
290,544
700,642
80,816

3,144,895
290,346
693,824
80,847

3,178,154
288,994
688,144
80,966

3,217,521
291,587
688,226
82,199

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

1,769,187
894,513
507,780
38,024
328,826
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222

1,765,667
910,989
526,817
38,058
325,519
20,595
612,435
480,696
68,306
63,111
322
242,243
11,218
27,227
194,396
9,402

1,769,890
922,610
537,602
37,652
326,508
20,848
609,654
478,456
68,440
62,439
320
237,626
11,001
26,701
190,638
9,287

1,767,685
940,293
556,443
38,630
324,359
20,861
598,330
469,959
67,362
60,704
305
229,061
10,578
25,676
183,322
9,484

1,746,317
937,973
554,125
38,456
324,147
21,246
584,345
457,982
66,903
59,163
297
223,999
10,340
25,098
179,191
9,370

1,760,541
956,767
568,757
39,074
327,021
21,916
585,525
462,122
66.336
56,767
301
218,249
10,064
24,426
174,398
9,361

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

286,263
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
28,664
1,687
26,977
33,665
31,032
2,633

298,991
45
38
7
41,446
16,133
10,739
5,250
9,324
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

309,579
43
37
7
41,424
15,714
10,830
5,347
9,533
11,797
4,850
6,947
19,925
8,381
6,002
5,543
0
160,721
146,009
14,712
28,810
1,695
27,115
46,859
44,315
2,544

321,486
22
15
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,203
5,327
4,754
0
166,642
151,310
15,332
28,460
1,675
26,785
55,476
52,929
2,547

325,835
20
13
7
41,209
14,870
11,037
5,399
9,903
11,344
4,738
6,606
14,241
6,312
4,190
3,739
0
172,343
156,576
15,767
28,181
1,658
26,523
58,498
55,942
2,556

332,543
12
12
0
41,370
14,459
11,147
5,526
10,239
11,169
4,826
6,343
13,908
6,030
4,181
3,697
0
175,377
159,437
15,940
28,475
1,675
26,800
62,232
59,652
2,580

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

1,425,546
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

1,473,323
413,166
404,425
8,741
422,882
417,646
5,236
465,220
456,645
8,575
32
6
0
15
11
172,023
145,000
7,407
19,616
0

1,514,002
415,076
405,963
9,113
430,089
425,154
4,935
481,880
473,599
8,281
30
6
0
14
10
186,927
158,000
7,991
20,936
0

1,546,818
414,066
404,864
9,202
439,029
434,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
0

1,602,595
423,446
414,194
9,251
457,577
453,407
4,170
507,376
498,489
8,887
26
5
0
12
9
214,171
177,000
9,481
27,689
0

1,639,946
435,709
426,363
9,346
465,330
461,508
3,822
514,855
505,730
9,125
22
4
0
10
8
224,030
179,500
12,241
32,289
0

530,452
349,491
85,969
80,761
14,232

561,244
368,874
83,796
93,410
15,164

568,260
378,739
85,871
88,699
14,951

571,668
382,849
86,164
88,538
14,117

573,994
384,681
86,391
89,219
13,703

573,923
383,948
86,516
89,797
13,662

561,511
372,503
86,586
88,803
13,618

546,503
357,381
87,027
88,518
13,576

By type of holder
6 Major financial institutions
7 Commercial banks2
8
One- to four-family
9
Multifamily
10
Commercial
Farm
11
12 Savings institutions3
One- to four-family
13
14
Multifamily
15
Commercial
16
Farm
17 Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm
22 Federal and related agencies
23 Government National Mortgage Association
24
One- to four-family
25
Multifamily
26 Fanners Home Administration4
27
One- to four-family
28
Multifamily
29
Commercial
Farm
30
31 Federal Housing and Veterans' Administrations
One- to four-family
32
Multifamily
33
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
41
Multifamily
42 Federal Land Banks
43
One- to four-family
44
Farm
45 Federal Home Loan Mortgage Corporation
One- to four-family
46
Multifamily
47
48 Mortgage pools or trusts5
49 Government National Mortgage Association
One- to four-family
50
Multifamily
51
52 Federal Home Loan Mortgage Corporation
One- to four-family
53
54
Multifamily
55 Federal National Mortgage Association
56
One- to four-family
Multifamily
57
58 Farmers Home Administration4
59
One- to four-family
Multifamily
60
61
Commercial
62
Farm
63 Private mortgage conduits
64
One- to four-family
Multifamily
65
66
Commercial
Farm
67
68 Individuals and others6
69 One- to four-family
70 Multifamily
71 Commercial
72

1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated
from FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of
accounting changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed
by the agency indicated.




6. 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 for some quarters, are estimated in part by the Federal
Reserve. Line 64 from Inside Mortgage Securities.

Consumer Installment Credit
1.55

A39

CONSUMER INSTALLMENT CREDIT1
Millions of dollars, amounts outstanding, end of period
1994'
Holder and type of credit

1991

1992'

1993'
June

May

Apr.

July

Aug.

Sept.

Seasonally adjusted
1 Total

728,389*

731,098

794,300

823,342

836,936

847,715

854,469

869,628

880,194

2 Automobile
3 Revolving
4 Other

259,594'
245,281'
223,514'

257,678
257,304
216,117

282,036
287,875
224,389

293,018
301,260
229,064

298,278
305,528
233,130

303,526
309,472
234,717

305,193
313,591
235,685

309,721
321,365
238,542

315,313
323,658
241,224

Not seasonally adjusted
744,039r

747,690

812,782

818,956

830,065

842,126

847,727

868,049

880,837

340,713
121,700'
90,302
41,373
46,658
103,293

330,088
118,279
91,694
37,049
49,184
121,396

368,549
116,453
101,634
37,855
57,637
130,654

376,379
122,806
102,718
37,472
53,756
125,825

380,063
122,204
105,718
37,803
54,505
129,772

386,235
124,318
108,183
38,134
55,374
129,882

393,927
123,202
109,838
38,055
55,775
126,930

404,438
125,197
113,122
37,975
56,496
130,821

410,266
130,318
114,961
37,943
55,967
131,382

By major type of credit3
1? Automobile
13 Commercial banks
14 Finance companies
15 Pools of securitized assets

259,863'
112,666
62,232'
28,588

258,226
109,623
57,259
33,888

282,825
123,358
56,057
39,490

291,957
130,104
60,660
34,531

297,172
132,979
59,398
35,836

302,874
136,038
59,788
35,817

304,026
138,907
58,107
34,436

310,925
142,452
58,589
34,584

316,930
144,353
60,522
35,149

16 Revolving
17 Commercial banks
18 Nonfinancial business
19 Pools of securitized assets

258,841'
138,005
41,658
63,333

271,368
132,966
43,974
74,931

303,444
149,527
52,113
79,887

297,740
149,265
48,279
79,927

301,609
149,972
49,005
82,064

305,758
153,032
49,845
82,075

309,716
156,940
50,218
81,704

319,003
161,417
50,873
85,644

322,035
165,527
50,314
85,051

?n Other
71 Commercial banks
77. Finance companies
73 Nonfinancial business
24 Pools of securitized assets

225,335'
90,042
59,468'
5,000
11,372

218,096
87,499
61,020
5,210
12,577

226,513
95,664
60,396
5,524
11,277

229,259
97,010
62,146
5,477
11,367

231,284
97,112
62,806
5,500
11,872

233,494
97,165
64,530
5,529
11,990

233,985
98,080
65,095
5,557
10,790

238,121
100,569
66,608
5,623
10,593

241,872
100,386
69,796
5,653
11,182

5 Total
6
7
8
9
10
11

By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets2

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.

1.56

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.

TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1994
Item

1991

1992

1993
Mar.

Apr.

May

Aug.

July

Sept.

8.41
13.33
12.04
16.25

June

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

INTEREST RATES

Commercial banks2

Auto finance companies

11.14
15.18
13.70
18.23

9.29
14.04
12.67
17.78

8.09
13.47
11.87
16.83

7.76
12.96
11.60
16.15

12.41
15.60

9.93
13.80

9.48
12.79

9.13
12.68

9.71
13.25

9.92
13.51

9.96
13.78

10.17
13.86

10.32
13.92

10.13
13.98

55.1
47.2

54.0
47.9

54.5
48.8

54.0
50.1

53.8
50.0

53.5
50.6

53.3
50.0

53.9
50.2

54.2
50.1

54.3
50.2

88
96

89
97

91
98

92
99

92
99

93
99

94
100

93
100

93
100

93
100

12,494
8,884

13,584
9,119

14,332
9,875

14,821
10,427

15,067
10,477

15,194
10,606

15,180
10,656

15,319
10,735

15,283
10,755

15,419
10,906

OTHER TERMS3

Maturity (months)

Loan-to-value ratio

Amount financed (dollars)

1. The Board's series on amounts of credit covers most short- and intermediate-term
credit extended to individuals 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. Data are available for only the second month of each quarter,
3. At auto finance companies,

A40 DomesticNonfinancialStatistics • January 1995
1.57

FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993

1992
Q4

Qi

1994

Q2

Q3

Q4

Ql

Q2

Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors....

729.0

635.6

475.8

536.1

630.5

456.0

487.3

757.7

603.2

673.7

660.0

491.3

By sector and instrument
2 U.S. government
3 Treasury securities
4 Budget agency issues and mortgages

146.4
144.7
1.6

246.9
238.7
8.2

278.2
292.0
-13.8

304.0
303.8
.2

256.1
248.3
7.8

242.7
240.0
2.7

240.5
237.4
3.2

336.4
332.3
4.1

173.4
157.2
16.2

274.2
266.5
7.7

210.5
211.8
-1.3

122.9
118.2
4.7

5 Private

582.7

388.7

197.5

232.1

374.4

213.3

246.8

421.3

429.8

399.5

449.5

368.4

6
7
8
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

69.8
73.8
281.2
224.5
11.5
47.8
-2.5
45.8
27.3
21.4
63.3

48.7
47.1
199.5
185.6
4.8
9.3
-.3
16.0
.4
9.7
67.4

68.7
78.8
161.4
163.8
-3.1
.4
.4
-15.0
-40.9
-18.4
-37.1

31.1
67.5
123.9
179.5
-11.2
-45.5
1.1
5.5
-13.8
8.6
9.2

77.3
75.3
157.1
185.3
-6.3
-22.4
.4
64.4
5.5
10.0
-15.2

-15.8
54.0
86.6
164.9
-26.5
-51.4
-.5
29.6
19.1
22.3
17.5

88.6
85.7
97.6
123.0
-6.1
-19.5
.2
22.1
-15.8
-14.1
-17.2

127.5
75.7
157.1
194.5
-11.4
-26.8
.8
48.3
-.3
33.2
-20.2

65.8
72.6
220.5
237.3
-4.9
-12.4
.5
76.1
11.5
17.2
-33.8

27.3
67.4
153.2
186.6
-2.6
-30.9
.1
111.0
26.7
3.8
10.2

4.0
48.0
160.9
188.7
-5.5
-22.9
.5
74.4
77.9
8.0
76.3

-32.2
52.0
129.1
115.6
9.7
-1.1
4.9
118.7
69.1
16.4
15.3

17
18
19
20
21
22

By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government

281.6
233.1
.6
40.3
192.1
68.0

218.9
123.7
2.3
10.1
111.3
46.0

170.9
-35.9
2.1
-28.5
-9.6
62.6

217.7
-2.0
1.0
-43.9
40.9
16.4

293.8
21.1
2.0
-26.1
45.2
59.5

249.6
1.9
-2.4
-53.9
58.2
-38.2

176.3
-9.9
-2.3
-27.4
19.7
80.4

275.3
38.9
2.5
-31.7
68.1
107.1

375.3
10.4
4.2
-28.7
34.9
44.1

348.4
44.9
3.5
-16.7
58.0
6.3

315.7
145.1
2.9
15.1
127.1
-11.3

269.7
152.5
10.7
23.7
118.1
-53.8

23 Foreign net borrowing in United States
24 Bonds
25 Bank loans n.e.c
26 Commercial paper
27 U.S. government and other loans

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

21.3
14.4
2.3
5.2
-.6

46.9
59.4
.7
-9.0
-4.2

3.6
26.0
-10.3
-12.1
.0

38.9
66.5
1.5
-21.7
-7.5

42.8
45.3
6.6
-.6
-8.4

83.1
84.5
1.0
-1.6
-.8

22.9
41.4
-6.3
-12.0
-.1

-64.0
29.0
6.0
-101.8
2.9

-4.6
11.1
-1.2
-5.2
-9.3

28 Total domestic plus foreign

739.2

659.4

489.6

557.4

677.4

459.6

526.2

800.5

686.3

696.7

596.0

486.7

Financial sectors
29 Total net borrowing byfinancialsectors
30
31
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
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks

By borrowing sector
40 Government-sponsored enterprises
41 Federally related mortgage pools
42
43 Commercial banks
44 Bank holding companies
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 Issuers of asset-backed securities (ABSs)




225.1

202.9

152.6

237.1

276.0

198.8

175.6

168.4

417.7

342.4

479.4

329.8

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

157.2
80.6
76.6
.0

132.6
33.6
99.2
-.1

169.4
32.2
137.2
.0

56.6
68.8
-12.2
.0

275.3
167.8
107.5
.0

127.3
53.4
73.9
.0

327.3
160.0
186.5
-19.2

235.3
146.6
88.6
.0

75.7
41.5
.3
13.5
31.3

-11.0

35.5
46.3
.6
4.7
8.6
-24.7

6.8
67.6
.5
8.8
-32.0
-38.0

81.3
78.5
.6
2.2
-.7
.8

118.9
112.2
3.6
-14.0
-6.2
23.3

66.1
97.0
.9
-24.1
-6.5
-1.1

6.2
94.1
1.4
-34.6
-75.1
20.4

111.8
84.9
1.4
13.2
-16.2
28.4

142.4
134.7
6.2
-16.5
-9.4
27.4

215.1
134.9
5.5
-18.0
76.0
16.8

152.1
142.0
.2
-18.3
39.0
-10.8

94.5
96.9
2.2
-32.6
-4.3
32.3

25.2
124.3
75.7
-1.4
6.2
12.5
-15.1
.0
.0
27.4
10.1
1.4
28.3

17.0
150.3
35.5
-.7
-27.7
15.4
-30.2
.0
.0
24.0
.0
.8
52.3

9.1
136.6
6.8
-11.7
-2.5
-6.5
-44.5
.0
.0
18.6
-2.4
1.2
51.0

40.2
115.6
81.3
8.8
2.3
13.2
-6.7
.0
.0
-3.6
8.0
.3
56.3

80.6
76.6
118.9
5.6
8.8
2.9
11.1
i
.2
-5.0
-1.0
3.5
80.5

33.5
99.2
66.1
14.5
.8
3.6
-5.4
.1
-.2
1.0
-6.4
-5.6
67.7

32.2
137.2
6.2
3.5
21.1
-31.4
9.7
.0
.1
-24.4
-25.2
.4
61.9

68.8
-12.2
111.8
11.3
1.3
-1.6
12.6
.3
.6
-20.7
32.4
1.3
60.5

167.8
107.5
142.4
6.5
.5
7.9
13.5
.3
-.1
9.0
-.8
6.0
85.2

53.4
73.9
215.1
1.2
12.2
36.7
8.8
.1
.4
16.3
-10.4
6.2
114.2

140.8
186.5
152.1
4.4
3.5
47.4
-5.6
.1
.0
62.0
-27.6
1.2
76.6

146.6
88.6
94.5
-6.1
8.2
-21.1
30.6
-.1
.2
66.4
-29.2
3.8
41.4

Flow of Funds A41
1.57

FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued
1992
Transaction category or sector

1989

1990

1991

1992

1993

1994

1993
Q4

QL

Q2

Q3

Q4

QL

Q2

All sectors
53 Total net borrowing, all sectors

964.4

862.3

642.2

794.5

953.4

658.4

701.8

968.8

1,104.0

1,039.1

1,075.5

816.5

54
55
56
57
58
59
60
61

295.8
69.8
120.2
281.6
45.8
40.7
65.9
44.7

414.4
48.7
114.7
200.1
16.0
2.2
30.7
35.6

424.0
68.7
160.5
161.9
-15.0
-29.1
-44.0
-84.9

459.8
31.1
160.4
124.5
5.5
-9.4
13.1
9.5

413.3
77.3
246.9
160.7
64.4
-7.8
-5.1
3.8

375.5
-15.8
177.0
87.4
29.6
-15.3
3.7
16.3

409.9
88.6
246.3
98.9
22.1
-48.9
-110.9
-4.3

393.0
127.5
205.9
158.4
48.3
19.5
16.4
-.2

448.7
65.8
291.8
226.6
76.1
-4.0
6.3
-7.2

401.5
27.3
243.7
158.7
111.0
2.4
67.7
26.9

557.0
4.0
219.0
161.1
74.4
65.6
-54.8
49.2

358.2
-32.2
160.0
131.3
118.7
35.3
6.9
38.3

U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

Funds raised through mutual funds and corporate equities
62 Total net share issues
63 Mutual funds
64 Corporate equities
65 Nonfinancial corporations
66 Financial corporations
67 Foreign shares purchased in United States

-60.8

19.7

215.4

296.0

436.5

294.8

344.3

473.5

494.4

434.0

219.0

219.5

37.2
-98.0
-124.2
9.0
17.2

65.3
-45.6
-63.0
10.0
7.4

151.5
64.0
18.3
15.1
30.7

211.9
84.1
27.0
26.4
30.7

316.8
119.7
20.9
38.2
60.6

205.4
89.4
14.0
27.7
47.8

268.9
75.4
8.6
35.2
31.6

358.0
115.5
24.8
38.6
52.1

348.9
145.5
28.7
38.2
78.6

291.5
142.4
21.5
40.9
80.0

114.0
105.0
-2.8
38.3
69.4

152.7
66.8
10.4
17.5
38.9

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
1.58

Domestic Financial Statistics • January 1995
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
Transaction category or sector

1989

1990

1991

1992

1994

1993

1993
Q4

Ql

Q2

Q3

Q4

Ql

Q2

NET LENDING IN CREDIT MARKETS2

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

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
Funding corporations
Thrift institutions
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities issuers (ABSs)
Bank personal trusts

964.4

862.3

642.2

794.5

953.4

658.4

701.8

968.8

1,104.0

1,039.1

1,075.5

816.5

137.0
94.7
-.8
13.7
29.3
-3.1
86.6
743.8
-4.1
124.3
-7.3
177.2
146.1
26.7
2.8
1.6
8.0
-90.0
101.8
29.7
81.1
46.1
32.0
20.1
23.8
6.6
67.1
.5
80.2
27.1
19.7

190.1
157.2
-1.7
-3.7
38.3
33.7
85.5
553.0
13.9
150.3
8.1
125.1
94.9
28.4
-2.8
4.5
16.1
-154.0
94.4
26.5
17.2
34.9
29.0
.0
41.4
.2
80.9
-.7
2.8
51.1
15.9

-7.5
-39.6
-3.7
6.7
29.2
10.5
26.6
612.5
15.2
136.6
31.1
80.8
35.7
48.5
-1.5
-1.9
15.8
-123.5
83.2
32.6
85.7
46.0
-12.7
11.2
90.3
14.7
30.1
-.7
17.5
48.9
10.0

72.0
70.7
-1.1
29.2
-26.8
-11.9
100.5
633.9
69.0
115.6
27.9
95.3
69.5
16.5
5.6
3.7
23.5
-61.3
79.1
12.8
37.3
34.4
1.7
.1
123.7
17.4
1.3
1.1
-6.9
53.8
8.0

-2.3
-30.9
-3.2
17.5
14.4
-18.4
125.8
848.4
90.2
76.6
36.2
142.2
149.6
-9.8
.0
2.4
18.1
-1.7
105.1
33.3
40.2
28.1
-5.3
.0
164.0
10.2
12.9
.6
9.2
79.1
9.5

104.3
112.0
-1.3
31.8
-38.3
-16.0
98.3
471.9
80.7
99.2
48.2
63.8
53.4
6.5
.2
3.6
11.4
-22.6
100.8
11.9
8.4
16.7
22.3
-12.8
96.1
17.3
-29.4
2.6
-113.1
62.1
8.3

-40.2
-91.0
-3.0
-2.8
56.5
-23.2
65.6
699.6
16.7
137.2
42.5
100.5
103.4
-1.4
-4.5
3.0
-3.8
-30.7
124.6
27.3
118.0
-9.3
-26.9
-50.4
148.6
16.7
-57.3
.2
75.2
61.4
9.1

-3.3
-70.5
-3.2
16.6
53.7
-27.1
93.2
905.9
128.0
-12.2
35.7
133.4
137.4
-14.3
7.9
2.4
1.1
16.0
97.8
36.0
11.1
51.5
-18.3
65.1
194.4
10.5
33.3
.8
52.5
59.4
10.0

-43.9
-76.7
-3.3
40.8
-4.7
-15.4
123.7
1,039.7
140.8
107.5
28.2
146.7
160.3
-16.9
1.2
2.2
32.4
21.1
111.8
37.6
91.9
24.4
2.0
-1.6
174.6
5.9
25.3
1.0
-7.8
88.0
9.9

78.1
114.4
-3.5
15.2
-48.0
-7.9
220.5
748.3
75.2
73.9
38.5
188.1
197.3
-6.5
-4.8
2.1
42.6
-13.3
86.3
32.1
-60.1
45.9
22.0
-13.3
138.4
7.7
50.3
.2
-82.8
107.7
8.9

465.9
447.1
-3.6
33.7
-11.2
-40.8
123.9
526.5
92.4
186.5
48.8
187.3
120.8
61.4
3.0
2.1
19.5
16.1
50.5
27.9
-97.7
45.5
72.9
-55.4
-72.6
8.7
-37.4
.7
-55.7
75.8
12.9

235.0
270.2
-3.8
39.1
-70.5
-8.2
54.2
535.6
104.3
88.6
17.9
117.8
136.4
-20.7
.2
1.9
23.5
37.2
77.6
32.8
-42.0
49.4
24.3
-66.2
11.3
3.6
33.7
.7
-34.4
43.6
11.7

964.4

8623

642.2

794.5

953.4

658.4

701.8

968.8

1,104.0

1,039.1

1,075.5

816.5

24.8
3.5
.6
28.8
321.2
-16.2
6.4
98.7
16.9
90.1
77.8
35.7
37.2
-98.0
15.6
68.2
2.4
-25.8
19.6
313.8

2.0
1.5
1.0
25.7
165.1
35.4
43.3
63.7
-66.1
70.3
-24.2
38.2
65.3
-45.6
3.5
37.0
-4.8
-28.3
29.7
135.7

-5.9
.0
.0
25.7
360.3
-3.9
86.4
1.5
-58.5
41.2
-16.5
-16.7
151.5
64.0
51.4
3.6
-6.2
-3.3
16.1
197.2

-1.6
-2.0
.2
27.3
249.7
61.7
113.8
-57.2
-73.2
3.9
35.5
-7.2
211.9
84.1
4.2
41.5
8.5
18.4
-7.1
257.6

.8
.0
.4
35.2
295.8
42.8
117.3
-70.3
-23.5
15.8
65.5
-22.1
316.8
119.7
61.9
49.0
4.6
-11.4
1.6
309.2

5.1
-8.0
.3
26.3
267.9
-14.4
51.8
-29.9
-91.1
-33.4
-68.7
-23.2
205.4
89.4
-.4
46.1
9.7
32.8
-6.0
194.5

3.4
.0
.3
43.6
353.4
70.2
99.7
-108.5
-21.6
-46.8
170.7
-11.9
268.9
75.4
44.8
43.2
7.9
-9.0
-4.2
194.3

-4.0
.0
.4
35.3
316.8
126.5
214.4
-67.8
-26.8
61.8
37.9
-17.1
358.0
115.5
40.0
51.1
7.3
-17.8
-7.2
431.1

1.7
.0
.4
36.6
356.0
-4.5
73.1
-68.1
-59.5
.6
67.8
-50.7
348.9
145.5
76.6
49.8
-1.8
7.1
.1
226.1

2.2
.0
.7
25.5
156.9
-20.9
81.9
-36.6
13.7
47.7
-14.4
-8.6
291.5
142.4
86.5
51.9
4.9
-25.9
17.6
385.2

-.2
.0
.7
20.0
-27.7
155.5
173.1
5.2
-39.6
-10.9
15.3
24.9
114.0
105.0
30.0
24.7
13.5
-66.4
19.0
287.1

-11.2
.0
.6
20.1
61.0
197.0
-60.4
-66.5
-4.8
67.8
183.7
13.9
152.7
66.8
-34.1
23.0
3.9
-75.1
-8.9
117.1

1,985.7

1,410.6

1,530.2

1,764.5

2,262.7

1,312.8

1,875.5

2,624.2

2,309.9

2,2413

1,918.6

1,463.1

8.4
-2.2
7.0

3.3
8.5
9.1

-13.1
4.5
9.7

.7
1.6
4.1

-1.5
-1.3
16.0

-11.8
2.2
5.0

4.7
-2.0
5.2

2.9
8.3
25.1

2.1
-5.2
21.9

-15.5
-6.2
11.7

-2.4
.6
23.1

.3
-1.1
16.3

-.2
-4.4
32.4
2.7
-55.6

.2
1.6
-24.0
.1
-35.4

-.6
26.2
6.2
1.3
-45.3

-.2
-4.9
27.9
14.0
-46.0

-.2
4.2
84.6
1.0
-36.1

-.1
-5.5
8.9
9.5
8.4

-.2
2.7
179.6
-6.9
-83.4

-.2
.5
60.8
18.2
-65.8

-.2
-10.4
66.6
1.2
-23.9

-.2
24.0
31.3
-8.6
28.6

-.2
-27.9
8.3
-1.0
-108.8

-.2
4.9
130.0
19.9
-155.8

1,997.6

1,447.2

1,541.2

1,767.2

2,196.1

1,296.1

1,775.9

2,574.4

2,257.9

2,176.2

2,026.9

1,448.8

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

33 Net flows through credit markets
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53

Otherfinancialsources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Life insurance reserves
Pension fund reserves
Interbank claims
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

54 Total financial sources
Floats not included in assets (—)
55 U.S. government checkable deposits
56 Other checkable deposits
57 Trade credit
58
59
60
61
62

Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous

63 Total identified to sectors as assets

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.




2. Excludes corporate equities and mutual fund shares.[001a]

Flow of Funds A43
1.59

SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period

1990

1991

1992

1994

1993

1992
Transaction category or sector

1993
Q4

Q2

Ql

Q3

Q4

Ql

Q2

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors

10,712.6

11,181.5

11,720.7

12,351.9

11,720.7

11,804.0

12,001.1

12,145.0

12351.9

12,476.5

12,607.7

By lending sector and instrument
2 US. government
3 Treasury securities
4 Budget agency issues and mortgages

2,498.1
2,465.8
32.4

2,776.4
2,757.8
18.6

3 080.3
3,061.6
18.8

3,336.5
3,309.9
26.6

3,080.3
3,061.6
18.8

3,140.2
3,120.6
19.6

3,201.2
3,180.6
20.6

3,247.3
3,222.6
24.7

3,336.5
3,309.9
26.6

3,387.7
3,361.4
26.3

3,395.4
3,368.0
27.4

5 Private

8,214.5

8,405.1

8,640.4

9,015.4

8,640.4

8,663.9

8,799.9

8,897.8

9,015.4

9,088.8

9,212.3

Commercial paper
Other loans

1,039.9
1,008.2
3,758.5
2,616.3
307.9
755.4
78.9
812.4
726.9
116.9
751.8

1,108.6
1,086.9
3,920.0
2,780.0
304.8
755.8
79.3
797.4
686.0
98.5
707.8

1,139.7
1,154.4
4,043.9
2,959.6
293.6
710.3
80.4
803.0
672.1
107.1
720.2

1,217.0
1,229.8
4,201.0
3,144.9
287.4
687.8
80.8
867.3
677.6
117.8
704.9

1,139.7
1,154.4
4,043.9
2,959.6
293.6
710.3
80.4
803.0
672.1
107.1
720.2

1,160.7
1,175.9
4,053.9
2,976.0
292.1
705.4
80.5
787.4
660.9
113.9
711.2

1,201.5
1,194.8
4,103.6
3,035.0
289.3
698.7
80.7
801.1
666.2
124.0
708.6

1,209.2
1,212.9
4,159.9
3,095.5
288.0
695.6
80.8
825.1
666.5
123.2
700.9

1,217.0
1,229.8
4,201.0
3,144.9
287.4
687.8
80.8
867.3
677.6
117.8
704.9

1,216.8
1,241.8
4,227.3
3,178.2
286.0
682.1
81.0
864.9
690.2
129.9
718.1

1,218.4
1,254.8
4,270.0
3,217.5
288.4
681.8
82.2
895.8
713.0
135.7
724.6

By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government

3,614.3
3,751.7
135.4
1,147.0
2,469.2
848.6

3,784.7
3,709.3
135.0
1,116.4
2,458.0
911.1

4,002.3
3,710.5
136.0
1,074.1
2,500.4
927.5

4,296.2
3,732.3
138.0
1,048.0
2,546.3
987.0

4,002.3
3,710.5
136.0
1,074.1
2,500.4
927.5

4,009.6
3,707.8
133.1
1,066.6
2,508.1
946.5

4,092.8
3,724.9
136.3
1,059.2
2,529.3
982.2

4,192.5
3,720.8
138.4
1,051.3
2,531.1
984.5

4,296.2
3,732.3
138.0
1,048.0
2,546.3
987.0

4,338.7
3,767.1
136.3
1,051.0
2,579.8
983.0

4,420.5
3,812.5
141.7
1,057.5
2,613.4
979.2

285.0

298.8

310.9

357.8

310.9

319.8

332.0

351J

357.8

340.9

341.2

210.6
26.2
43.3
60.8

213.4
25.9
42.0
59.9

6
7
8
9
10
11
1?
13
14
1*
»
16
17
18
19
20
21
22

By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit

23 Foreign credit market debt held in
United States
74
7
26
27

Bonds
Bank loans n.e.c
Commercial paper
U.S. government and other loans

7.8 Total credit market debt owed by nonfinancial
sectors, domestic and foreign

115.4
18.5
75.3
75.7

129.5
21.6
81.8
65.9

143.9
23.9
77.7
65.3

203.4
24.6
68.7
61.1

143.9
23.9
77.7
65.3

160.6
24.3
72.3
62.7

171.9
25.9
72.1
62.0

193.0
26.2
71.7
60.3

203.4
24.6
68.7
61.1

10,997.6

11,4803

12,031.6

12,709.7

12,031.6

12,123.9

12,333.1

12,4963

12,709.7

12,817.4

12,948.9

Financial sectors
79 Ibtal credit market debt owed by
financial sectors

2,599.5

2,752.1

3,004.7

3,286.1

3,004.7

3,044.8

3,09X6

3,195.4

3,286.1

3,401.8

3,490.7

1,418.4
393.7
1,019.9
4.9
1,181.1
572.4
4.3
69.6
417.7
117.1

1,564.2
402.9
1,156.5
4.8
1,187.9
640.0
4.8
78.4
385.7
79.1

1,720.0
443.1
1,272.0
4.8
1,284.8
724.8
5.4
80.5
394.3
79.9

1,877.1
523.7
1,348.6
4.8
1,409.0
836.9
8.9
66.5
393.5
103.1

1,720.0
443.1
1,272.0
4.8
1,284.8
724.8
5.4
80.5
394.3
79.9

1,755.8
451.2
1,299.8
4.8
1,289.0
748.8
5.7
70.3
379.3
85.0

1,774.5
468.4
1,301.3
4.8
1,318.2
770.8
6.0
73.4
375.9
92.1

1,842.2
510.3
1,327.1
4.8
1,353.2
804.3
7.6
69.2
373.2
98.9

1,877.1
523.7
1,348.6
4.8
1,409.0
836.9
8.9
66.5
393.5
103.1

1,952.1
563.7
1,388.4
.0
1,449.7
870.5
9.0
60.3
409.4
100.4

2,016.2
600.3
1,415.9
.0
1,474.5
895.5
9.5
52.0
408.9
108.5

By borrowing sector
40 Government-sponsored enterprises
41 Federallyrelatedmortgage pools
47 Privatefinancialsectors
43 Commercial banks
44 Bank holding companies
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 Issuers of asset-backed securities (ABSs)

398.5
1,019.9
1,181.1
76.7
114.8
145.7
139.1
.0
.0
374.4
24.6
12.4
278.1

407.7
1,156.5
1,187.9
65.0
112.3
139.1
94.6
.0
.0
393.0
22.2
13.6
329.1

447.9
1,272.0
1,284.8
73.8
114.6
161.6
87.8
.0
.0
389.4
30.2
13.9
391.7

528.5
1,348.6
1,409.0
79.5
123.4
169.9
99.0
.2
.2
384.4
29.2
17.4
472.2

447.9
1,272.0
1,284.8
73.8
114.6
161.6
87.8
.0
.0
389.4
30.2
13.9
391.7

456.0
1,299.8
1,289.0
73.1
119.9
162.2
90.3
.0
.0
379.1
23.9
14.0
407.2

473.2
1,301.3
1,318.2
76.6
120.2
166.5
93.4
.1
.2
369.8
32.0
14.4
422.3

515.1
1,327.1
1,353.2
77.9
120.3
166.3
96.8
.2
.1
373.9
31.8
15.8
443.6

528.5
1,348.6
1,409.0
79.5
123.4
169.9
99.0
.2
.2
384.4
29.2
17.4
472.2

563.7
1,388.4
1,449.7
79.0
124.2
190.4
97.6
.3
.3
395.4
22.3
17.7
491.3

600.3
1,415.9
1,474.5
78.0
126.3
190.1
105.2
.2
.3
407.6
15.0
18.7
501.7

53 Ibtal credit market debt, domestic and foreign

13397.1

14,2323

15,0363

15,995.8

15,0363

15,168.7

15,425.7

15,691.7

15,995.8

16,219.2

16,439.6

3,911.7
1,039.9
1,696.0
3,762.9
812.4
815.0
609.9
949.4

4,335.7
1,108.6
1,856.5
3,924.8
797.4
785.9
565.9
857.5

4,795.5
1,139.7
2,023.1
4,049.3
803.0
776.6
579.0
870.2

5,208.8
1,217.0
2,270.1
4,209.9
867.3
768.8
580.0
873.9

4,795.5
1,139.7
2,023.1
4,049.3
803.0
776.6
579.0
870.2

4,891.2
1,160.7
2,085.2
4,059.7
787.4
755.4
565.5
863.7

4,970.9
1,201.5
2,137.4
4,109.6
801.1
765.6
572.0
867.5

5,084.7
1,209.2
2,210.2
4,167.5
825.1
761.9
568.2
864.9

5,208.8
1,217.0
2,270.1
4,209.9
867.3
768.8
580.0
873.9

5,339.8
1,216.8
2,322.9
4,236.3
864.9
776.8
582.6
879.4

5,411.7
1,218.4
2,363.7
4,279.5
895.8
790.9
586.5
893.1

30
31
32
33
34
35
36
37
38
39

By instrument
US. government-related
Government-sponsored enterprises securities
Mortgage pool securities
LoansfromU.S. government
Private
Corporate bonds
Mortgages
Open market papa
LoansfromFederal Home Loan Banks

54 US. government securities
55 Tax-exempt securities
56 Corporate and foreign bonds
17 Mortgages
58 Consumer credit
59 Bank loans n.e.c
60 Open market paper
61 Other loans

Digitized for1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
FRASER
tables L.2 through L.4. For ordering address, see inside front cover.


A44
1.60

Domestic Financial Statistics • January 1995
S U M M A R Y OF F I N A N C I A L A S S E T S A N D LIABILITIES1
Billions of dollars except as noted, end of period
1992
Transaction category or sector

1990

1991

1992

1993

1994

1993
Q4

QL

Q2

Q3

Q4

QL

Q2

CREDIT MARKET DEBT OUTSTANDING2

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

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
Funding corporations
Thrift institutions
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities issuers (ABSs)
Bank personal trusts

13,597.1

14,2323

15,0363

15,995.8

15,0363

15,168.7

15,425.7

15,691.7

15,995.8

16,219.2

16,439.6

2,260.8
1,499.3
47.8
189.6
524.1
239.0
918.3
10,179.0
375.6
1,019.9
241.4
2,772.5
2,466.7
270.8
13.4
21.6
35.7
1,320.5
1,116.5
344.0
607.4
433.9
497.6
49.2
360.2
35.6
372.7
7.7
106.5
268.9
213.4

2,240.2
1,446.5
44.1
196.2
553.3
246.9
958.1
10,787.2
390.7
1,156.5
272.5
2,853.3
2,502.5
319.2
11.9
19.7
51.5
1,192.6
1,199.6
376.6
693.0
479.9
484.9
60.3
450.5
50.3
402.7
7.0
124.0
317.8
223.5

2,318.0
1,523.1
42.9
225.4
526.5
235.0
1,052.7
11,430.6
459.7
1,272.0
300.4
2,948.6
2,571.9
335.8
17.5
23.4
75.0
1,134.5
1,278.8
389.4
730.4
514.3
486.6
60.5
574.2
67.7
404.1
8.1
117.1
377.9
231.5

2,325.8
1,502.3
39.7
242.9
540.9
216.6
1,174.4
12,279.0
549.8
1,348.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.4
481.3
60.4
738.2
77.9
417.0
8.6
126.3
457.0
240.9

2,318.0
1,523.1
42.9
225.4
526.5
235.0
1,052.7
11,430.6
459.7
1,272.0
300.4
2,948.6
2,571.9
335.8
17.5
23.4
75.0
1,134.5
1,278.8
389.4
730.4
514.3
486.6
60.5
574.2
67.7
404.1
8.1
117.1
377.9
231.5

2,291.7
1,493.5
42.2
216.0
540.0
229.4
1,061.2
11,586.3
463.0
1,299.8
303.6
2,956.6
2,589.4
326.7
16.4
24.2
74.0
1,124.8
1,316.2
396.3
759.8
511.9
473.7
47.9
611.4
71.9
404.5
8.1
135.9
393.2
233.7

2,286.9
1,466.5
41.4
223.1
555.9
223.1
1,083.4
11,832.3
495.5
1,301.3
318.2
2,998.8
2,628.5
327.1
18.4
24.8
74.3
1,130.0
1,343.9
405.3
762.6
524.8
473.5
64.1
659.9
74.5
403.9
8.3
149.0
408.1
236.2

2,274.4
1,451.1
40.6
230.3
552.4
218.8
1,117.5
12,080.9
530.8
1,327.1
324.2
3,036.4
2,670.2
322.3
18.7
25.3
82.4
1,136.5
1,372.1
414.6
785.6
530.9
472.0
63.8
703.6
76.0
400.6
8.6
147.1
430.1
238.7

2,325.8
1,502.3
39.7
242.9
540.9
216.6
1,174.4
12,279.0
549.8
1,348.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.4
481.3
60.4
738.2
77.9
417.0
8.6
126.3
457.0
240.9

2,416.3
1,598.0
38.8
241.9
537.5
206.3
1,205.2
12,391.4
572.0
1,388.4
341.5
3,120.8
2,743.9
332.4
18.2
26.4
97.9
1,134.8
1,403.4
429.6
746.2
553.7
492.8
46.6
720.0
80.1
422.2
8.8
112.4
476.0
244.2

2,471.0
1,655.8
37.9
254.7
522.6
204.7
1,218.1
12,545.8
598.8
1,415.9
351.6
3,159.1
2,782.3
331.6
18.3
26.8
103.8
1,145.4
1,426.1
437.8
735.6
566.1
503.1
30.0
722.9
81.0
422.0
9.0
103.8
486.9
247.1

13,597.1

14,2323

15,0363

15,995.8

15,0363

15,168.7

15,425.7

15,691.7

15,995.8

16,219.2

16,439.6

61.3
10.0
16.3
380.0
3,484.2
95.3
5,005.3
934.2
2,349.2
546.9
498.4
372.3
304.3
602.1
137.4
942.2
77.4
522.1
2,820.4

55.4
10.0
16.3
405.7
4,138.3
96.4
5,044.8
1,020.6
2,350.7
488.4
539.6
355.8
289.6
813.9
188.9
935.9
71.2
608.3
2,992.2

51.8
8.0
16.5
433.0
4,516.5
132.8
5,059.1
1,134.4
2,293.5
415.2
543.6
392.3
280.1
1,042.1
217.3
977.4
79.6
629.6
3,160.2

53.4
8.0
17.0
468.2
4,981.5
175.9
5,141.8
1,251.7
2,223.2
391.7
559.4
457.8
258.0
1,429.3
279.3
1,026.4
84.2
660.9
3,424.8

51.8
8.0
16.5
433.0
4,516.5
132.8
5,059.1
1,134.4
2,293.5
415.2
543.6
392.3
280.1
1,042.1
217.3
977.4
79.6
629.6
3,160.2

54.5
8.0
16.6
443.9
4,658.1
137.3
5,055.3
1,089.1
2,275.7
410.6
556.6
446.2
277.1
1,134.6
225.0
976.9
82.9
639.0
3,176.6

53.9
8.0
16.7
452.7
4,739.5
145.0
5,097.1
1,168.0
2,255.0
401.1
549.8
450.4
272.8
1,225.8
234.7
989.6
81.2
637.6
3,258.3

55.6
8.0
16.8
461.9
4,898.0
166.9
5,088.5
1,181.9
2,236.6
389.4
547.9
472.5
260.2
1,342.4
254.5
1,009.7
82.8
651.2
3,325.8

53.4
8.0
17.0
468.2
4,981.5
175.9
5,141.8
1,251.7
2,223.2
391.7
559.4
457.8
258.0
1,429.3
279.3
1,026.4
84.2
660.9
3,424.8

56.4
8.0
17.1
473.2
4,908.4
203.5
5,157.1
1,220.5
2,234.4
382.6
582.4
473.0
264.3
1,439.0
282.8
1,020.9
88.8
665.7
3,516.2

54.9
8.0
17.3
478.2
4,926.4
226.2
5,180.7
1,231.2
2,213.7
378.9
576.4
512.8
267.7
1,443.1
273.9
1,026.9
86.1
674.1
3,525.8

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

33 Total credit market debt
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
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

53 Total UabUities

27,751.1

29,609.6

31,360.1

33,746.4

31360.1

31,777.4

32,365.7

33,053.7

33,746.4

34,0563

34,3613

Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business

22.0
3,530.2
2,529.1

22.3
4,863.6
2,444.4

19.6
5,462.9
2,411.5

20.1
6,186.5
2,427.9

19.6
5,462.9
2,411.5

19.8
5,647.3
2,420.2

20.0
5,683.7
2,434.1

20.3
5,941.7
2,445.5

20.1
6,186.5
2,427.9

20.4
6,052.2
2,459.2

20.8
5,877.7
2,477.2

Floats not included in assets (—)
57 U.S. government checkable deposits
58 Other checkable deposits
59 Trade credit

15.0
35.9
-130.3

3.8
40.4
-129.3

6.8
42.0
-124.6

5.6
40.7
-106.9

6.8
42.0
-124.6

3.4
36.7
-135.0

3.5
41.6
-139.2

2.2
33.7
-134.8

5.6
40.7
-106.9

.3
36.3
-113.1

.9
38.7
-120.1

-4.1
-32.0
3.0
17.8
-261.2

-4.8
-4.2
9.2
17.8
-330.7

-4.9
-9.3
38.1
25.2
-398.4

-5.1
-4.7
122.7
33.3
-479.8

-4.9
-9.3
38.1
25.2
-398.4

-5.0
-5.8
94.9
14.1
-437.1

-5.0
-5.7
108.0
23.3
-433.7

-5.1
-7.8
132.6
22.5
-478.9

-5.1
-4.7
122.7
33.3
-479.8

-5.2
-7.4
136.7
26.6
-505.1

-5.2
-7.2
166.7
22.1
-482.9

34,188-3

37,337.6

39,679.1

42,775.1

39,679.1

40,298.4

40,910.8

41,896.7

42,775.1

43,019.1

43,123.8

60
61
62
63
64

Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous

65 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 A45
2.10

NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, and indexes 1987 = 100, except as noted
1994
1991

Measure

1992

1993
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept."

Oct.

104.1

106.5

110.9

115.0

115.9

116.0

116.6

117.5

117.8r

118.7

118.6

119.4

5
Equipment
6 Intermediate
7 Materials

103.2
105.3
102.8
108.9
96.8
105.4

105.7
108.0
105.7
111.2
99.0
107.7

110.2
112.7
108.7
118.5
102.6
111.9

114.2
117.2
111.6
125.3
105.1
116.2

114.7
117.5
111.9
125.7
105.9
117.7

114.7
117.3
111.2
126.2
106.7
117.9

115.3
117.8
111.7
126.6
107.5
118.6

116.1
118.7
112.7
127.5
108.3
119.4

116.7
119.3r
113.2
128.0"
108.9"
119.4"

117.3"
120.1"
113.5"
129.6"
109.0"
120.8"

117.0
119.8
112.6
130.2
108.4
121.0

117.5
120.3
112.8
131.1
109.0
122.2

Industry groupings
8 Manufacturing

103.7

106.8

111.7

116.1

117.2

117.7

118.5

118.9

119.5

120.7

120.6

121.7

77.8

78.6

80.6

82.4

83.0

83.1

83.4

83.5

83.7

84.3

84.1

84.6

89.7

97.7

103.3r

107.0

110.0

103.0

108.0

105.0

109.0

110.0

109.0

107.0

11 Nonagricultural employment, total4
12 Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
15 Service-producing
16 Personal income, total
17 Wages and salary disbursements
18
Manufacturing
19 Disposable personal income
20 Retail sales5

106.2
96.6
97.1
96.0
109.4
127.8
124.5
113.7
128.8
121.1

106.4
94.9
95.8
94.5
110.5
135.6
131.6
118.0
137.0
126.9

108.1
93.1
93.7
93.7
112.8
141.4
136.2
120.0
142.5
135.2

109.8
94.5
94.6
95.3
114.6
146.7
141.8
124.6
147.5
141.9

110.1
94.8
94.6
95.4
115.0
147.5
142.4
124.8
148.4
144.5

110.5
95.3
94.8
95.7
115.4
148.3
143.3
124.8
148.2
143.1

110.8
95.3
94.8
95.7
115.7
149.0
144.3
124.9
149.8
143.0

111.2
95.6
95.0
96.0
116.1
149.3
144.5
125.3
150.1
144.3

111.4
95.6
95.0
96.0
116.5
150.0
145.2
125.6
150.8
144.5

111.7
95.8
95.2
96.3
116.8
150.6
145.4"
126.0"
151.4"
146.6"

112.0
95.9
95.2
96.4
117.1
151.4
146.2
126.5
152.3
147.4

112.2
96.1
95.4
96.7
117.3
n.a.
n.a.
n.a.
n.a.
149.1

Prices6
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)

136.2
121.7

140.3
123.2

144.5
124.7

146.7
124.8

147.2
124.9

147.4
125.0

147.5
125.3

148.0
125.6r

148.4
126.0

149.0
126.6

149.4
125.5

149.5
125.8

1 Industrial production1
Market groupings
2 Products, total
3 Final, total

9 Capacity utilization, manufacturing (percent)2..
10 Construction contracts3

covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the
price indexes can be obtained from the U.S. Department of Labor, Bureau of Labor
Statistics, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for
series mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
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. 590-605.

1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in February
1994. See "Industrial Production and Capacity Utilization since 1990: A Revision,"
Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of
the industrial production index, 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

2.11

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1994
1991

Category

1992

1993
Mar.

Apr.

May

June

July

Aug."

Sept."

Oct.

HOUSEHOLD SURVEY DATA1

1 Civilian labor force2
2
3
4
5

125,303
3

Nonagricultural industries
Agriculture
Unemployment
Number
Rate (percent of civilian labor force)

126,982

128,040

130,580

130,747

130,774

130,248

130,457

131,189

131,343

131,836

118,880
3,459

119,437
3,435

119,195
3,235

119,173
3,278

119,722
3,444

120,219
3,409

120,741
3,495

114,644
3,233

114,391
3,207

116,232
3,074

118,611
3,426

8,426
6.7

9,384
7.4

8,734
6.8

8,543
6.5

8,408
6.4

7,902
6.0

7,817
6.0

8,005
6.1

8,023
6.1

7,715
5.9

7,600
5.8

108,256

108^19

110,171

112^98

112,699

112,951

113,334

113,624

113,914

114,162

114,356

17,804
599
4,571
5,710
25,849
6,605
30,193
18,841

17,980
609
4,806
5,816
26,039
6,781
31,326
18,941

18,009
603
4,907
5,843
26,190
6,787
31,598
19,014

18,044
605
4,927
5,849
26,328
6,798
31,765
19,018

18,045
601
4,944
5,857
26,439
6,797
31,918
19,023

18,095
603
4,942
5,866
26,484
6,801
32,036
19,087

18,093
602
4,970
5,868
26,565
6,789
32,129
19,146

18,133
598
4,975
5,869
26,627
6,787
32,225
19,142

ESTABLISHMENT SURVEY DATA

6 Nonagricultural payroll employment4

9 Contract construction
10 Transportation and public utilities
11 Trade
14 Government

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. Beginning January 1994, reflects redesign of current population survey and population controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the
twelfth day; annual data are averages of monthly figures. By definition, seasonality does
not exist in population figures.
3. Includes self-employed, unpaid family, and domestic service workers.




18,007
606
4,893
5,759
26,165
6,791
31,497
18,981

4. Includes all full- and part-time employees who worked during, or received pay for,
the pay period that includes the twelfth day of the month; excludes proprietors, selfemployed persons, household and unpaid family workers, and members of the armed
forces. Data are adjusted to the March 1992 benchmark, and only seasonally adjusted data
are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.

A46
2.12

Domestic Nonfinancial Statistics • January 1995
O U T P U T , CAPACITY, A N D C A P A C I T Y U T I L I Z A T I O N 1
Seasonally adjusted
1993

1994

1994

1993

1993

1994

Series
Q4

Ql

Q2

Q3r

Q4

Ql

Q2

Q3

Capacity (percent of 1987 output)

Output (1987 = 100)

Q4

Ql

Q2r

Q3r

Capacity utilization rate (percent)2

1 Total industry

112.9

115.2

116.7

118.4

137.2

138.0

139.0

140.0

82-3

83.4

84.0

2 Manufacturing

114.1

116.3

118.3

120.3

140.0

140.9

142.0

143.1

81.5

82.5

83.3

84.0

Primary processing3
Advanced processing

109.9
116.1

110.7
118.9

113.2
120.8

114.3
123.1

128.6
145.4

129.0
146.6

129.5
148.0

129.9
149.4

85.5
79.9

85.8
81.2

87.4
81.6

88.0
82.4

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment

118.1
104.9
109.6
115.6
101.4
152.7
132.6
131.7

121.0
103.6
109.7
114.8
102.7
158.8
136.4
142.7

122.9
105.2
113.9
121.3
103.7
164.7
142.0
134.3

125.6
106.0
111.9
116.0
106.2
170.4
149.9
135.4

146.3
115.2
122.6
126.3
117.6
178.2
157.7
156.1

147.6
115.4
122.4
126.0
117.5
181.7
160.3
157.8

149.1
115.7
122.4
126.0
117.5
186.2
163.3
159.7

150.6
115.9
122.4
126.0
117.5
190.8
166.3
161.7

80.7
91.1
89.4
91.5
86.2
85.7
84.1
84.4

82.0
89.8
89.6
91.1
87.4
87.4
85.1
90.5

82.5
90.9
93.0
96.3
88.3
88.4
87.0
84.1

83.4
91.5
91.4
92.1
90.4
89.3
90.2
83.7

85.2

82.5

82.1

80.5

132.8

132.2

131.4

130.6

64.2

62.4

62.5

61.6

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

109.2
107.7
114.2
118.6
114.4
107.7

110.5
108.9
114.4
120.3
117.6
104.5

112.7
111.6
115.4
122.7
121.3
108.0

113.8
112.2
117.3
124.8

132.7
120.5
125.8
147.7
133.0
115.4

133.4
121.2
126.3
148.7
133.9
115.3

134.0
121.8
126.8
149.7
115.2

82.6
89.8
91.2
80.8
86.6
93.2

83.2
90.3
90.9
81.5
88.4
90.5

84.5
92.2
91.4
82.5
90.6
93.7

84.9
92.1
92.5
83.4

105.9

132.1
119.9
125.3
146.8
132.0
115.6

92.0

97.3
115.6
114.8

98.4
119.9
118.2

99.6
116.7
117.6

98.4
118.2
118.8

110.8
134.3
131.7

110.6
134.7
132.2

110.6
135.2
132.8

110.5
135.6
133.3

87.8
86.1
87.2

89.0
89.0
89.4

90.1
86.3
88.6

89.0
87.2
89.1

1973

1975

Previous cycle5

High

Low

High

3
4

20 Mining
21 Utilities
22 Electric

Low

Latest cycle6
High

Low

1994

1993
Oct.

84.6

May

June

Julyr

Aug/

Sept/

Oct.p

84.9

Capacity utilization rate (percent)2
1 Total industry

89.2

72.6

87.3

71.8

84.8

78.1

81.7

83.9

84.3

84.4

84.8

84.5

2 Manufacturing

88.9

70.8

87.3

70.0

85.1

76.7

80.8

83.4

83.5

83.7

84.3

84.1

84.6

92.2
87.5

68.9
72.0

89.7
86.3

66.8
71.4

89.1
83.3

78.0
76.0

84.4
79.3

87.9
81.5

87.5
81.8

87.5
82.1

88.3
82.7

88.1
82.4

88.9
82.8

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transpcxtahon equipment

88.8
90.1
100.6
105.8
92.9

68.5
62.2
66.2
66.6
61.3

86.9
87.6
102.4
110.4
90.5

65.0
60.9
46.8
38.3
62.2

83.9
93.3
92.9
95.7
88.9

73.8
76.2
74.4
72.2
75.8

79.6
90.9
86.5
89.6
81.8

82.4
91.5
94.3
97.7
89.1

82.5
91.5
91.4
94.1
87.3

82.8
91.5
90.6
92.4
87.9

83.7
91.4
90.9
90.0
92.3

83.7
91.5
92.8
93.8
91.2

84.3
91.3
94.9
97.0
91.8

96.4
87.8
93.4

74.5
63.8
51.1

92.1
89.4
93.0

64.9
71.1
44.5

83.7
84.9
84.5

71.4
77.3
57.3

84.7
83.6
79.7

88.6
86.9
82.9

88.6
87.7
82.8

89.1
89.5
80.6

89.4
90.3
86.1

89.4
90.7
84.4

89.8
91.8
84.8

77.0

66.6

81.1

66.9

88.3

78.5

64.3

62.5

62.8

62.0

61.6

61.1

61.2

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

87.9
92.0
96.9
87.9
102.0
96.7

71.8
60.4
69.0
69.9
50.6
81.1

87.0
91.7
94.2
85.1
90.9
89.5

76.9
73.8
82.0
70.1
63.4
68.2

86.8
92.1
94.9
85.9
97.0
88.5

80.4
78.5
86.3
79.4
75.3
84.5

82.5
90.0
90.1
80.4
84.4
93.6

84.8
92.5
91.9
83.0
91.7
94.5

84.8
91.8
92.8
82.9
91.4
92.1

84.9
92.1
91.3
83.1
90.6
91.0

85.1
93.0
93.9
83.9
91.0
92.5

84.6
91.3
92.3
83.2

85.0
92.3
91.8
84.0

92.4

93.2

94.4
95.6
99.0

88.4
82.5
82.7

96.6
88.3
88.3

80.6
76.2
78.7

87.0
92.6
94.8

86.8
83.1
86.3

88.4
85.6
86.5

89.6
84.9
87.0

90.2
89.3
91.4

89.3
88.0
90.2

88.9
87.1
88.9

88.9
86.4
88.1

88.7
85.8
87.4

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Primary processing3
Advanced processing4

20 Mining
21 Utilities
22 Electric

1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in February
1994. See "Industrial Production and Capacity Utilization since 1990: A Revision,"
Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of
the industrial production index, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally
adjusted index of industrial production to the corresponding index of capacity.




3. Primary processing includes textiles; lumber; paper; industrial chemicals; 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, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.

Selected Measures A47
2.13

INDUSTRIAL PRODUCTION

Indexes and Gross Value1

Monthly data seasonally adjusted

portion

1994

1993

1987
Group

1993
avg.
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Jul/

Aug/

Sept/

Oct.p

117.5

117.8

118.7

118.6

119.4

117.0
119.8
112.6
118.5
121.7
126.2
92.1
185.4
114.1
115.6

117.5
120.3
112.8
118.7
122.3
125.8
94.9
179.4
116.4
115.6

Index (1987 = 100)
MAJOR MARKETS

100.0

1 Total index
7

4
5
6
7
8
9
10
11
1?.
N

14
11
16
17
18
19

Final products
Consumer goods, total
Durable consumer goods
Automotive products
Autos, consumer
Trucks, consumer
Auto parts and allied goods
Other
Appliances televisions and air
conditioners
Carpeting and furniture
Miscellaneous home goods
Nondurable consumer goods
Clothing
Chemical products
Paper products

70

71
22

Residential utilities

?3

?4
75

7,6
77
78
79
30

31
37
33
34
35
36

Business equipment
Information processing and related
Computer and office equipment
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
Intermediate products, total
Construction supplies
Business supplies

37
38
39

40
41

Durable consumer parts
Equipment parts
Other

47

43
44
45
46
47
48
49

50

Nondurable goods materials
Textile materials
Paper materials
Chemical materials
Other
Energy materials
Primary energy
Converted fuel materials

110.9

111.9

112.8

114.0

114.6

115.0

115.9

116.0

116.6

59.5
44.8
26.5
5.8
2.7
1.7
1.1
.6
1.0
3.1

110.2
112.7
108.7
110.5
111.6
112.2
86.1
157.3
110.6
109.5

111.2
113.8
109.2
112.7
113.8
114.9
85.2
166.4
U1.9
111.8

112.1
114.6
109.7
115.8
120.2
124.9
95.4
176.0
112.3
112.0

113.0
115.4
110.1
118.2
124.9
131.5
98.8
188.0
113.9
112.2

113.6
116.2
110.9
119.0
127.7
134.6
102.0
191.0
116.3
111.3

114.2
117.2
111.6
120.9
131.7
141.0
106.7
200.4
116.2
111.5

114.7
117.5
111.9
118.3
125.3
131.1
101.0
183.3
115.4
112.1

114.7
117.3
111.2
117.4
123.3
128.6
98.3
181.2
114.3
112.2

115.3
117.8
111.7
115.5
119.2
121.4
92.4
171.6
115.6
112.3

116.1
118.7
112.7
116.5
120.2
121.9
91.5
174.4
117.5
113.3

116.7
119.3
113.2
117.4
118.5
118.3
88.4
170.1
118.9
116.5

117.3
120.1
113.5
120.5
124.1
130.0
93.6
193.0
114.1
117.3

.8
.9
1.4
20.7
9.1
2.6
3.6
2.6
2.7
.8
2.0

122.9
102.2
106.7
108.2
106.1
122.5
122.5
103.2
113.7
106.6
116.5

130.4
104.1
106.3
108.2
105.9
93.3
122.6
104.0
114.6
111.3
115.9

130.7
102.5
107.5
107.9
105.2
94.3
122.3
103.3
115.2
110.6
117.0

130.5
102.8
108.0
107.9
105.8
95.1
122.0
102.6
113.1
108.6
114.9

123.7
104.0
109.1
108.6
106.1
93.8
121.6
102.6
119.7
105.1
125.4

123.4
105.5
108.6
109.0
106.9
94.4
123.3
102.3
117.1
104.3
122.1

125.6
104.5
109.4
110.1
109.0
95.8
125.4
102.5
114.4
105.3
117.9

122.8
106.9
109.5
109.4
109.3
96.5
123.7
103.6
108.4
107.7
108.7

125.5
105.6
109.2
110.6
110.0
97.6
125.8
104.5
110.8
108.2
111.8

126.9
105.6
110.5
111.6
110.0
97.3
127.8
104.9
115.8
106.4
119.4

132.2
110.0
111.8
112.0
110.7
97.7
128.6
103.5
116.1
104.2
120.8

135.6
110.7
111.3
111.5
109.7
97.1
129.8
104.8
113.0
105.9
115.8

131.1
109.4
110.9
110.9
109.2
96.7
128.9
104.6
112.0
106.3
114.2

128.7
110.7
111.4
111.1
109.4
97.3
130.4
103.3
112.0
108.4
113.4

18.3
13.2
5.5
2.3
3.9
2.0
1.0
1.8
4.4
.6
.2

118.5
134.6
155.8
223.1
112.2
136.7
134.5
115.6
74.8
82.5
118.9

120.4
137.7
162.0
241.8
112.5
136.1
139.6
119.4
72.7
86.5
123.4

121.8
139.7
164.5
248.6
113.0
141.5
150.5
119.3
72.5
82.9
130.4

123.1
141.8
167.2
256.1
114.8
142.8
154.9
120.8
71.5
82.3
141.1

123.9
142.9
170.1
261.5
114.0
145.2
161.0
119.4
71.0
82.4
145.3

125.3
145.0
173.5
269.5
114.6
147.5
166.7
120.7
69.9
87.4
139.7

125.7
145.5
175.2
272.1
116.8
141.2
156.1
121.4
69.9
88.6
143.6

126.2
146.3
175.6
273.4
118.1
139.8
153.7
124.5
69.8
89.6
136.2

126.6
147.3
177.1
274.2
119.8
136.1
146.0
127.3
68.9
89.1
135.9

127.5
148.5
179.0
278.6
120.7
137.2
147.3
127.6
68.6
88.9
138.1

128.0
149.6
181.3
282.7
122.6
132.8
143.4
129.3
67.9
87.4
135.7

129.6
152.1
184.4
286.2
123.2
138.7
156.9
129.9
67.6
83.4
135.5

130.2
152.9
186.3
290.2
124.0
136.6
153.4
130.8
67.2
85.5
141.7

131.1
154.3
188.5
293.7
125.4
137.2
153.3
130.8
67.0
82.8

14.7
5.9
8.8

102.6
96.8
106.5

103.5
98.6
106.7

104.3
99.5
107.5

105.4
101.3
108.1

105.7
100.5
109.2

105.1
98.9
109.3

105.9
99.7
110.0

106.7
101.8
109.9

107.5
102.9
110.6

108.3
102.7
112.0

108.9
103.8
112.3

109.0
104.4
112.0

108.4
104.0
111.3

109.0
104.4
112.2

40.5
20.5
4.1
7.4
9.0
3.1
9.0
1.2
2.0
3.8
2.0
11.0
7.3
3.7

111.9
115.5
113.9
123.4
109.7
112.5
113.8
104.2
113.7
116.9
113.8
103.7
99.1
112.7

112.8
117.5
116.0
127.0
110.3
112.9
114.1
104.0
113.2
117.2
115.1
103.0
98.2
112.6

113.9
119.1
120.4
127.5
111.6
114.7
115.3
103.7
115.2
119.1
114.9
97.6
113.8

115.5
121.5
125.7
128.6
113.6
117.6
116.6
102.1
115.2
119.9
120.2
103.2
97.5
114.5

116.0
122.2
126.7
130.7
113.2
116.2
115.4
103.2
114.0
119.7
115.6
104.8
97.3
119.6

116.2
121.9
126.0
131.6
112.0
113.1
116.2
104.4
116.1
120.4
115.1
105.6
100.2
116.1

117.7
124.1
127.3
133.9
114.6
115.3
117.7
106.2
117.6
121.6
116.8
105.6
101.1
114.4

117.9
125.2
125.9
135.9
116.1
119.4
117.0
106.4
113.8
122.2
116.2
105.2
101.4
112.5

118.6
125.9
125.8
136.9
116.9
119.0
119.1
106.3
117.8
125.3
116.3
104.6
100.4
112.6

119.4
126.3
125.2
138.8
116.5
117.7
118.9
106.4
119.4
123.1
117.6
106.9
100.5
119.4

119.4
127.3
126.3
140.4
117.0
116.8
119.1
106.2
116.7
123.6
120.6
104.8
99.9
114.6

120.8
128.8
129.0
142.2
117.8
115.8
120.7
108.5
120.8
125.3
119.1
105.6
100.5
115.7

121.0
129.8
129.4
143.7
118.4
117.1
120.2
107.6
119.9
124.5
119.8
105.2
99.8
115.8

122.2
131.9
131.7
146.1
120.1
119.9
121.2
108.5
118.9
126.5
120.8
105.0
99.6
115.5

97.2
95.2

110.6
110.4

111.5
111.3

112.2
111.8

113.2
112.7

113.7
113.2

114.0
113.4

115.2
114.7

115.4
114.9

116.2
115.8

117.1
116.7

117.5
117.2

118.1
117.7

118.1
117.7

118.9
118.5

97.7
24.8
23.8

108.2
108.5
108.2

108.8
108.8
108.6

109.6
108.6
109.0

110.6
108.7
109.8

111.1
109.3
109.9

111.3
109.6
111.0

112.1
110.6
111.6

112.2
109.9
111.5

112.9
111.1
111.8

113.6
112.1
112.3

113.9
112.9
112.9

114.7
112.3
113.5

114.5
111.6
112.6

115.2
111.9
112.9

12.2

134.6

137.5

138.7

140.6

141.3

143.2

144.6

145.7

147.4

148.6

150.1

151.7

152.8

154.4

11.3
29.5

119.7
115.0

120.2
116.5

121.3
118.0

122.5
120.0

123.0
120.1

124.1
120.1

124.3
122.1

124.9
122.7

125.9
123.8

126.6
124.0

127.2
124.8

129.5
126.4

129.8
126.9

130.9
128.6

103.1

SPECIAL AGGREGATES
51

52
53
54

55
56
57
58

Total excluding autos and trucks
Total excluding motor vehicles and parts
Total excluding computer and office
equipment
Consumer goods excluding autos and trucks .
Consumer goods excluding energy
Business equipment excluding autos and
trucks
Business equipment excluding computer and
office equipment
Materials excluding energy




A48
2.13

Domestic Nonfinancial Statistics • January 1995
Indexes and Gross Value1—Continued

INDUSTRIAL PRODUCTION

1993

1987

roup

OIP
ML coce

proportion

1994

1993

avg.
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Jul/

Aug/

Sept/

Oct.p

Index (1987 = 100)
MAJOR INDUSTRIES
59 Total index

100.0

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
91

Durable goods
Lumber and products...
Furniture and fixtures...
Stone, clay, and glass
products
Primary metals
hoi and steel
Raw steel
Nonferrous
Fabricated metal
products
Industrial and commercial
machinery and
computer
equipment
Computer and office
equipment
Electrical machinery . . .
Transportation
equipment
Motor vehicles and
parts
Autos and light
trucks
Aerospace and
miscellaneous
transportation
equipment
Instruments
Miscellaneous
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 . . .

92 Mining
93
Metal
94
Coal
95
Oil and gas extraction . . . .
96
Stone and earth minerals..
97 Utilities
98
Electric
Gas
99

' 24
25
32
33
331,2
333-6,9
34

110.9

111.9

112.8

114.0

114.6

115.0

115.9

116.0

116.6

117.5

117.8

118.7

118.6

119.4

84.3
27.1
57.1

60 Manufacturing
61
Primary processing
62
Advanced processing

111.7
107.6
113.7

112.9
108.5
115.0

114.0
109.9
116.0

115.4
111.3
117.4

115.6
110.7
117.9

116.1
110.0
119.0

117.2
111.4
119.9

117.7
112.3
120.2

118.5
113.8
120.7

118.9
113.4
121.5

119.5
113.5
122.3

120.7
114.7
123.5

120.6
114.6
123.5

121.7
115.8
124.5

46.5
2.1
1.5

114.3
100.6
103.3

116.2
104.6
104.8

118.0
104.9
104.2

120.1
105.2
106.3

120.4
105.2
105.4

120.9
102.8
107.4

121.7
102.9
107.6

122.5
103.8
109.5

122.9
105.8
109.9

123.4
105.9
110.6

124.2
106.0
112.4

126.0
106.0
113.7

126.4
106.1
113.5

127.8
106.0
114.3

2.4
3.3
1.9
.1
1.4

98.7
106.5
111.6
105.7
99.5

99.7
106.1
113.3
107.2
96.2

100.5
109.8
114.4
106.2
103.5

104.6
113.0
119.1
110.9
104.5

101.1
110.5
115.8
102.0
103.3

100.0
107.6
111.5
105.8
102.1

101.7
111.1
117.2
106.0
102.6

102.7
114.4
122.2
105.3
103.8

104.1
115.4
123.2
105.7
104.7

103.2
111.9
118.6
106.3
102.6

102.7
110.9
116.5
104.7
103.2

103.6
111.3
113.4
107.0
108.4

103.8
113.5
118.2
109.9
107.1

104.5
116.2
122.2
10X9

5.4

99.5

100.7

102.1

102.6

103.9

103.0

104.1

105.0

105.1

106.4

107.8

108.3

108.7

109.8

35

8.5

144.1

150.3

152.0

155.7

156.3

158.8

161.4

162.8

165.0

166.3

168.6

170.5

172.0

173.9

357
36

2.3
6.9

223.1
127.5

241.8
131.4

248.6
132.1

256.1
134.3

261.5
134.8

269.5
136.1

272.1
138.3

273.4
140.2

274.2
141.9

278.6
144.1

282.7
147.9

286.2
150.2

290.2
151.7

293.7
154.5
108.0

37

9.9

104.2

104.2

108.3

110.7

111.9

113.0

110.1

108.8

106.5

106.7

104.8

109.0

107.5

371

4.8

120.7

124.1

132.4

138.5

142.1

146.1

139.9

137.5

132.5

132.8

129.9

139.3

137.1

138.2

2.5

2.5

118.4

120.8

131.7

138.4

141.8

148.5

138.4

135.7

127.9

128.3

124.4

136.3

132.5

132.5

5.1
5.1
1.3

88.7
104.0
109.3

85.5
102.7
109.6

85.7
102.4
110.1

84.5
102.3
110.3

83.4
103.7
110.7

82.0
104.1
109.9

82.1
104.4
111.1

81.9
104.5
112.1

82.2
104.5
111.8

82.3
104.6
111.7

81.2
105.3
115.0

80.5
105.8
113.6

79.6
106.1
113.1

79.6
106.5
113.9

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

108.7
108.6
91.0
107.8
93.1
112.3
101.3
117.8
104.9

108.8
109.0
86.4
107.7
92.1
112.7
101.6
117.8
108.2

109.1
108.4
83.3
108.0
92.6
114.5
101.7
118.8
107.8

109.7
109.0
84.3
107.4
93.1
115.5
101.9
119.3
107.1

109.6
109.2
88.2
107.8
92.4
113.5
101.7
119.3
104.8

110.1
110.1
86.7
108.7
92.9
114.9
102.3
119.9
104.5

111.7
112.2
89.4
110.1
94.2
114.8
103.6
121.7
104.1

111.8
111.8
94.1
111.5
94.6
112.8
103.9
121.2
108.9

113.1
112.3
97.4
112.1
95.3
116.0
104.4
123.3
109.0

113.3
112.1
96.8
111.4
95.7
117.4
105.5
123.6
106.2

113.6
113.4
95.0
112.0
96.1
115.6
105.3
124.2
104.9

114.1
111.9
98.2
113.3
95.7
119.1
105.2
125.5
106.6

113.5
111.4
98.6
111.4
95.6
117.2
104.9
124.8
106.4

114.3
111.2
101.5
112.8
95.8
116.7
105.4
126.3
107.3

30
31

3.2
.3

115.9
85.0

116.5
83.9

117.8
83.5

119.3
85.1

120.3
84.8

119.7
83.1

122.5
85.1

123.0
86.0

124.6
84.3

124.9
83.2

126.6
83.6

126.8
83.8

126.9
83.5

129.2
84.0

10
12
13
14

8.0
.3
1.2
5.8
.7

97.3
167.6
103.8
92.2
93.8

98.0
175.8
104.4
92.6
94.1

96.9
168.5
101.1
91.8
98.2

96.9
177.3
104.7
90.9
93.9

97.0
177.8
104.0
91.0
94.9

98.8
167.4
114.4
91.8
97.1

99.5
167.3
120.4
91.5
96.3

99.9
171.3
119.8
91.9
96.9

99.1
160.3
113.2
92.6
99.3

99.8
169.8
115.0
92.8
97.6

98.7
169.8
108.6
92.5
99.2

98.3
158.8
111.4
92.2
97.1

98.2
160.4
110.7
92.1
97.3

98.1
162.2
111.3
91.5
98.3

7.7
6.1
1.6

116.2
115.9
117.2

114.9
113.7
119.1

116.1
115.2
119.4

115.8
115.5
117.0

121.9
119.1
132.6

119.8
118.1
126.4

118.0
117.4
120.1

114.4
115.8
109.4

114.7
115.5
111.9

120.8
121.5
118.1

119.2
120.1
115.9

118.1
118.5
116.5

117.3
117.6
116.0

116.7
116.9
115.8

79.5

111.2

112.2

112.9

114.0

114.0

114.3

115.8

116.5

117.6

118.0

118.9

119.6

119.7

120.7

81.9

108.6

109.2

110.2

111.4

111.4

111.7

112.8

113.2

114.0

114.3

114.8

116.0

115.8

116.8

372-6,9
38
39

491,3PT
492.3PT

SPECIAL AGGREGATES
100 Manufacturing excluding

motor vehicles and
parts
101 Manufacturing excluding

office and computing
machines

Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS

102 Products, total

1,707.0 1,886.9 1,908.8 1,928.2 1,943.9 1,955.4 1,964.1 1,962.6 1,965.5 1,969.4 1,980.7 1,982.7 2,001.7 1,990.8 2,000.5

103 Final
104 Consumer goods
105 Equipment
106 Intermediate

1,314.6 1,480.7 1,498.9 1,514.9 1,525.7 1,535.0 1,547.9 1,544.5 1,541.1 1,542.9 1,551.6 1,551.8 1,569.9 1,561.7 1,569.1
866.6
944.1
953.1
960.2
963.7
968.7
972.4
974.0
967.4
969.5
974.4
975.4
975.0
982.5
972.0
448.0
536.7
545.7
554.7
561.9
566.3
573.9
572.0
573.7
573.4
576.6
577.4
589.7
587.4
593.7
392.5
406.1
410.0
413.3
420.4
418.2
418.2
416.2
426.5
429.1
424.5
431.0
431.3
431.8
429.0

1. Data in this table also appear in the Board's G. 17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in February
1994. See "Industrial Production and Capacity Utilization since 1990: A Revision,"




Federal Reserve Bulletin, vol. 80 (March 1994), pp. 220-26. For a detailed description of
the industrial production index, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204.
2. Standard industrial classification.

Selected Measures A49
2.14

HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1994

1993
Item

1991

1992

1993
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

Jul/

Aug/

Sept.

Private residential real estate activity (thousands of units except as noted)
NEW UNITS

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

1,199
986
213
1,288
1,126
162
680
543
137
1,193
1,040
153
254

1,474
1,181
293
1,612
1,383
229
713
574
139
1,289
1,139
150
308

1,312
1,071
241
1,271
1,125
146
716
577
139
1,216
1,075
141
316

1,252
1,054
198
1,328
1,121
207
720
578
142
1,334
1,185
149
301

1,313
1,068
245
1,519
1,271
248
732
585
147
1,273
1,115
158
308

1,380
1,069
311
1,471
1,211
260
740
585
155
1,354
1,192
162
290

1,357
1,083
274
1,491
1,200
291
748
582
166
1,446
1,257
189
292

1,316
1,046
270
1,358
1,163
195
751
584
167
1,329
1,151
178
292

1,337
1,034
303
1,439
1,219
220
758
585
173
1,282
1,160
122
286

1,354
1,046
308
1,463
1,176
287
770
588
182
1,337
1,144
193
288

1,425
1,052
373
1,497
1,228
269
779
594
185
1,402
1,166
236
301

507
284

610
266

666
294

817
294

642
296

697
298

722
298

673
298

692
301

628r
313r

635
315

685
320

703
326

120.0
147.0

121.3
144.9

126.1
147.6

125.0
146.4

126.0
153.4

129.9
150.7

132.3
152.8

129.0
152.9

129.9
151.8

133.5r
158.4r

125.0
145.8

133.0
153.2

129.6
152.7

18 Number sold

3,219

3,520

3,800

4,350

4,250

3,840

4,070

4,120

4,110

3,960

3,970

3,930

3,890

Price of units sold (thousands
of dollars)2
19
20 Average

99.7
127.4

103.6
130.8

106.5
133.1

107.4
133.7

107.9
134.6

107.2
133.3

107.6
134.4

108.9
135.5

109.8
136.6

112.8
140.9

111.7
139.3

112.4
140.6

108.4
135.2

1 Permits authorized
7 One-family
3
Two-family or more
4 Started
One-family
6 Two-family or more
7 Under construction at end of period'
8 One-family
9 Two-or-more-family
10
11 One-family
1? Two-or-more-family
13 Mobile homes shipped
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period
Price of units sold (thousands
of dollars)2
16
17 Average
EXISTING UNITS ( o n e - f a m i l y )

Value of new construction (millions of dollars)3
CONSTRUCTION
21

Total put in place

??
73
74
75
76
77
28
79

30
31
37
33

Industrial buildings
Commercial buildings
Other buildings
Public utilities and other
Public
Conservation and development
Other

403,644

435,355

466,365

499,931

488,469

485,894

496,042

497,035

504,356

506,144

506,827

506,810

515,100

293,536
157,837
135,699
22,281
48,482
20,797
44,139

316,115
187,870
128,245
20,720
41,523
21,494
44,508

341,101
210,455
130,646
19,533
42,627
23,626
44,860

367,271
228,549
138,722
20,391
47,342
24,225
46,764

363,852
229,775
134,077
19,682
43,261
22,998

361,895
233,322
128,573
19,972
42,065
22,258
44,278

371,681
236,767
134,914
19,905
46,602
23,918
44,489

374,091
238,049
136,042
21,221
47,481
23,824
43,516

378,235
241,162
137,073
21,338
47,912
23,956
43,867

379,345
240,694
138,651
20,960
48,410
24,439
44,842

377,694
239,422
138,272
20,967
48,702
23,764
44,839

377,473
238,553
138,920
22,311
48,288
23,250
45,071

383,254
239,775
143,479
23,471
50,283
24,352
45,373

110,107

119,238

125,262

132,659

124,617

2,298
40,657
5,230
84,474

122,944
1,959
39,508
5,851
75,626

126,121
2,024
40,655
5,677
77,765

129,133
2,087
40,272
5,895
80,879

131,846

2,454
37,355
5,976
79,477

124,361
2,231
38,830
5,206
78,094

129,337

2,502
34,899
6,021
75,816

123,999
2,404
36,329
6,731
78,535

126,799

1,837
32,041
5,010
71,219

2,018
39,979
5,715
81,625

1,689
40,236
6,663
83,258

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.
SOURCES. Bureau of the Census estimates for all series except (1) mobile homes, which are




48,136
2,911
38,410

5,707
77,589

2,277
40,300
4,605
79,617

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 Domestic Nonfinancial Statistics • January 1995
2.15

CONSUMER AND 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)
1993

r

19941

1994

Oct.

Index
level,
Oct.

1994

1994

Dec.

1993

Change from 1 month earlier

Oct.
Mar/

June

Sept/

June

July

Aug.

Sept.

Oct.

J

J2

CONSUMER PRICES2
(1982-84=100)

1 Ail items

2.8

2.6

3.3

IS

2.5

3.6

J

J

.1

149.5

2
3
4
5
6

2.4
.9
3.0
1.6
3.7

2.4
.4
2.9
1.7
3.5

4.9
1.2
3.4
2.4
3.7

-1.1
4.7
2.9
.6
4.2

2.8
-4.9
3.1
4.2
2.4

5.1
10.9
2.6
.6
3.6

.3
.1
.3
.4
.2

.5
1.8
.2
.1
.2

.4
1.4
.3
-.1
.4

.3
-.7
.2
.1
.2

.0
-.7
.2
.0
.2

145.0
105.8
158.0
138.3
169.3

.2
1.3
-1.5
-.7
1.6

1.0
.6
-2.2
1.7
1.9

-.3
5.2
-15.6
1.5
.3

3.6
-.6
15.4
2.0
4.3

-.3
-5.5

.6
.7
1.7
.4
.1

-.5
-.2
-2.9
.1
.1

-.5
-.2

.0
.I R

.5
,4R
2.R
.0
,3R

-1.2

1.5
3.0

2.6
3.9
3.2
2.0
2.4

.1

-1.0

-.3
-1.0

125.8
126.1
77.1
139.6
134.8

.9
1.4

3.2
4.1

-.3
1.6

2.8
1.9

3.1
3.9

5.9
6.2

.6'
.6

.5R
.4

.7
.5

.3
.6

.4
.7

120.4
129.1

1.9
-4.2
9.8

-6.5
-10.6
13.1

18.4
-22.1
15.4

-4.5
10.1
22.7

-20.6
21.0
-.8

-12.9
-20.5
18.8

-1.4
-.1
1.4

.2
-5.3
1.3

-2.0
.0
.9

98.8
71.0
159.2

Energy items
All items less food and energy
Commodities
Services
PRODUCER PRICES
(1982=100)

7
8
9
10
11

Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment

12
13

Intermediate materials
Excluding foods and feeds
Excluding energy

14
15
16

Energy
Other

.0?
r

Crude materials

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rentalequivalence measure of homeownership.




-.T
2.5 R

l.l r

-2.2'
-.1'
1.7R

SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.

Selected Measures A51
2.16

GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1994

1993
Account

1991

1992

1993
Q3

Q4

Ql

Q2

Q3

GROSS DOMESTIC PRODUCT
5,724.8

6,020.2

6343.3

6359.2

6,478.1

6374.7

6,689.9

6,775.9

3,902.4
456.6
1,257.8
2,188.1

4,136.9
492.7
1,295.5
2,348.7

4,378.2
538.0
1,339.2
2,501.0

4,401.2
541.9
1,340.2
2,519.1

4,469.6
562.8
1,355.2
2,551.6

4,535.0
576.2
1,368.9
2,589.9

4,586.4
580.3
1,381.4
2,624.7

4,655.3
594.7
1,402.0
2,658.6

6 Gross private domestic investment
7
8
Nonresidential
Structures
<
>
10
Producers' durable equipment
11
Residential structures

744.8
746.6
557.0
182.9
374.1
189.6

788.3
785.2
561.4
171.1
390.3
223.8

882.0
866.7
616.1
173.4
442.7
250.6

882.2
868.3
619.0
173.9
445.1
249.3

922.5
913.5
646.3
176.7
469.6
267.2

966.6
942.5
665.4
172.7
492.7
277.1

1,034.4
967.0
683.3
181.8
501.5
283.6

1,051.1
978.7
696.7
181.1
515.6
282.0

12
13

Change in business inventories

-1.8
-1.2

3.0
-2.7

15.4
20.1

13.9
24.2

9.0
10.7

24.1
22.3

67.4
60.4

72.5
64.5

14 Net exports of goods and services
15
16

-19.9
601.1
620.9

-30.3
638.1
668.4

-65.3
659.1
724.3

-77.0
649.0
726.0

-71.2
680.3
751.4

-86.7
674.2
760.9

-97.6
704.5
802.1

-116.9
720.1
836.9

17 Government purchases of goods and services
18
19 State and local

1,097.4
445.8
651.6

1,125.3
449.0
676.3

1,148.4
443.6
704.7

1,152.9
442.7
710.2

1,157.2
439.8
717.4

1,159.8
437.8
722.0

1,166.7
435.1
731.5

1,186.4
442.9
743.5

By major type of product
20 Final sales, total
71 Goods
??
Durable
23
Nondurable
?4
Services
25

5,726.6
2,225.7
934.2
1,291.5
3,028.9
472.0

6,017.2
2,292.0
968.6
1,323.4
3,227.2
498.1

6,327.9
2,390.4
1,032.4
1,358.1
3,405.5
532.0

6,345.4
2,381.9
1,026.8
1,355.1
3,429.3
534.1

6,469.2
2,452.6
1,072.9
1,379.7
3,459.3
557.2

6,550.6
2,489.1
1,098.2
1,390.9
3,503.8
557.7

6,622.5
2,493.7
1,099.4
1,394.3
3,555.4
573.4

6,703.5
2,531.3
1,117.8
1,413.6
3,596.8
575.3

-1.8
-16.9
15.1

3.0
-13.0
16.0

15.4
8.6
6.7

13.9
14.9
-1.1

9.0
9.0
.0

24.1
20.6
3.5

67.4
38.2
29.2

72.5
52.6
19.9

4,867.6

4,9793

5,134.5

5,139.4

5,218.0

5,261.1

5314.1

5359.2

4,608.2

4,829.5

5,131.4

5,138.5

5,262.0

5308.7

5,430.7

n.a.

1
2
3
4
5

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

26 Change in business inventories
71
28
MEMO

29 Total GDP in 1987 dollars
NATIONAL INCOME

30
31 Compensation of employees
V.
Wages and salaries
Government and government enterprises
33
34
Other
Supplement to wages and salaries
35
36
Employer contributions for social insurance
37
Other labor income
38

39
40

Business and professional1
Farm1

3,404.8
2,816.0
545.4
2,270.6
588.8
289.8
299.0

3,591.2
2,954.8
567.3
2,387.5
636.4
307.7
328.7

3,780.4
3,100.8
583.8
2,517.0
679.6
324.3
355.3

3,801.7
3,115.9
586.1
2,529.8
685.9
327.0
358.8

3,845.8
3,148.4
587.8
2,560.7
697.4
330.6
366.8

3,920.0
3,208.3
595.7
2,612.6
711.7
338.5
373.2

3,979.3
3,257.2
601.9
2,655.4
722.0
343.6
378.4

4,021.9
3,292.3
604.2
2,688.1
729.7
346.0
383.7

376.2
339.5
36.7

418.7
374.4
44.4

441.6
404.3
37.3

420.3
404.5
15.8

462.9
418.5
44.4

471.0
423.8
47.2

471.3
431.9
39.3

465.4
436.9
28.5

41 Rental income of persons2

-10.5

-5.5

24.1

26.3

30.3

15.3

34.1

33.8

4?
43
44
45

390.3
365.2
5.8
19.4

405.1
395.9
-6.4
15.7

485.8
462.4
-6.2
29.5

493.5
458.7
3.0
31.7

533.9
501.7
-6.5
38.8

508.2
483.5
-12.3
37.0

546.4
523.1
-14.1
37.4

n.a.
n.a.
-18.9
37.8

447.4

420.0

399.5

396.7

389.1

394.2

399.7

n.a.

Inventory valuation adjustment
Capital consumption adjustment

46 Net interest
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.

A52 Domestic Nonfinancial Statistics • January 1995
2.17

PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1994

1993
1991

1992

1993
Q3

Q4

Ql

Q3

Q2

PERSONAL INCOME AND SAVING

1 Total personal income

4,860.3

5,1543

5375.1

5395.9

5,484.6

5355.8

5,659.9

5,727.8

2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises

2,816.1
738.4
557.4
648.0
884.2
545.5

2,974.8
757.6
578.3
682.3
967.6
567.3

3,080.8
773.8
588.4
701.9
1,021.4
583.8

3,115.9
781.4
594.9
709.6
1,038.8
586.1

3,148.4
791.0
601.7
712.6
1,057.0
587.8

3,208.3
801.9
609.4
728.6
1,082.0
595.7

3,257.2
811.6
612.8
742.5
1,101.2
601.9

3,292.3
821.0
617.8
753.8
1,113.2
604.2

299.0
376.2
339.5
36.7
-10.5
150.5
695.1
770.1
382.3

328.7
418.7
374.4
44.4
-5.5
161.0
665.2
860.2
414.0

355.3
441.6
404.3
37.3
24.1
181.3
637.9
915.4
444.4

358.8
420.3
404.5
15.8
26.3
182.8
634.1
921.6
446.8

366.8
462.9
418.5
44.4
30.3
184.1
627.7
931.0
452.1

373.2
471.0
423.8
47.2
15.3
185.7
631.1
947.4
463.8

378.4
471.3
431.9
39.3
34.1
191.7
649.4
957.6
470.7

383.7
465.4
436.9
28.5
33.8
196.9
670.2
968.3
476.3

8
9
10
11
12
13
14
15
16
17

Other labor income
Proprietors' income1
Business and professional1
Farm1
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits

18 EQUALS: Personal income

236.2

248.7

261.3

263.8

266.6

276.3

279.9

282.8

4,860.3

LESS: Personal contributions for social insurance

5,154.3

5,375.1

5,395.9

5,484.6

5,555.8

5,659.9

5,727.8

623.7

648.6

686.4

695.4

707.0

723.0

746.4

743.8

20 EQUALS: Disposable personal income

4,236.6

4,505.8

4,688.7

4,700.5

4,777.6

4,832.8

4,913.5

4,984.0

21

LESS: Personal outlays

4,025.0

4,257.8

4,496.2

4,518.2

4,588.2

4,657.3

4,712.4

4,785.3

22 EQUALS: Personal saving

211.6

247.9

192.6

182.3

189.4

175.5

201.1

198.8

19,263.3
12,898.9
14,003.0

19,489.7
13,110.4
14,279.0

19,878.8
13,390.8
14,341.0

19,871.2
13,425.1
14,338.0

20,119.1
13,518.9
14,451.0

20,235.2
13,639.8
14,535.0

20,389.7
13,650.9
14,625.0

20,506.9
13,713.7
14,682.0

5.0

5.5

4.1

3.9

4.0

3.6

4.1

4.0

27 Gross saving

751.4

722.9

787.5

788.9

825.8

886.2

9233

n.a.

28 Gross private saving

937.3

980.8

1,002.5

989.9

1,011.4

1,037.3

1,041.4

n.a.

29 Personal saving
30 Undistributed corporate profits'
31 Corporate inventory valuation adjustment

211.6
99.2
5.8

247.9
94.3
-6.4

192.6
120.9
-6.2

182.3
130.3
3.0

189.4
147.9
-6.5

175.5
127.7
-12.3

201.1
142.3
-14.1

198.8
n.a.
-18.9

Capital consumption allowances
32 Corporate
33 Noncorporate

383.3
243.1

396.8
261.8

407.8
261.2

413.3
264.1

411.1
263.0

432.2
301.8

425.9
272.1

432.3
276.7

-185.9
-202.9
17.0

-257.8
-282.7
24.8

-215.0
-241.4
26.3

-201.0
-224.9
23.9

-185.6
-220.1
34.5

-151.1
-176.2
25.2

-118.1
-145.1
27.0

752.9

731.7

789.8

783.4

8093

850.2

8993

922.5
-113.2

966.6
-116.4

1,034.4
-135.1

-163

-36.1

-24.0

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

34 Government surplus, or deficit ( - ) , national income and
product accounts
35
Federal
36
State and local
37 Gross investment
38 Gross private domestic investment
39 Net foreign investment
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




744.8
8.1

788.3
-56.6

882.0
-92.3

882.2
-98.8

13

8.8

23

-5.5

SOURCE. U.S. Department of Commerce, Survey of Current Business.

n.a.
n.a.
n.a.
n.a.
1,051.1
n.a.
n.a.

Summary Statistics A53
3.10

U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted1
1994

1993
Item credits or debits

1991

1992

1993
Q2

Q3

Q4

Ql

Q2P

-103,896
-132,575
456,866
-589,441
-763
57,613
3,946
-14,620
-3,785
-13,712

-25,602
-33,727
113,787
-147,514
-129
14,786
668
-2,730
-985
-3,486

-27,856
-36,488
111,736
-148,224
-87
14,317
2,015
-3,114
-986
-3,513

-30,587
-33,169
119,679
-152,848
-444
13,637
-590
-5,591
-987
-3,443

-32,317
-36,962
118,018
-154,980
-338
12,972
-811
-2,371
-968
-3,839

-36,970
-41,771
122,670
-164,441
17
14,743
-2,495
-2,588
-975
-3,901

-6,952
-74,068
416,913
-490,981
-5,485
51,082
14,833
23,959
-3,461
-13,811

-67,886
-96,097
440,361
-536,458
-3,034
58,747
4,540
-15,010
-3,735
-13,297

11 Change in U.S. government assets other than official
reserve assets, net (increase, —)

2,900

-1,652

-306

-281

-192

-321

490

-217

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

5,763
0
-177
-367
6,307

3,901
0
2,316
-2,692
4,277

-1,379
0
-537
-44
-797

822
0
-166
313
675

-545
0
-118
-48
-378

-673
0
-113
-80
-480

-59
0
-101
-3
45

3,537
0
-108
251
3,394

-60,175
4,763
11,097
-44,740
-31,295

-63,759
22,314
45
-45,114
-41,004

-146,213
32,238
-598
-119,983
-57,870

-36,507
5,595
-87
-24,340
-17,675

-34,915
7,335
4,838
-40,777
-6,311

-62,628
-9,293
-303
-30,349
-22,683

-48,667
-1,236
1,941
-24,605
-24,767

-5,147
15,141

22 Change in foreign official assets in United States (increase, +)
23 U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities4
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets5

17,199
14,846
1,301
1,177
-1,484
1,359

40,858
18,454
3,949
2,572
16,571
-688

71,681
48,702
4,062
1,666
14,666
2,585

17,492
5,668
1,082
158
9,485
1,099

19,259
19,098
1,345
1,121
-2,489
184

23,962
22,856
970
825
-587
-102

11,530
1,193
50
938
10,139
-790

7,869
6,168
2,483
121
53
-956

28 Change in foieign 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

80,935
3,994
-3,115
18,826
35,144
26,086

105,646
15,461
13,573
36,857
29,867
9,888

159,017
18,452
14,282
24,849
80,068
21,366

34,337
3,459
7,606
-622
15,025
8,869

52,675
27,618
1,169
3,474
17,445
2,969

66,200
7,370
4,733
7,996
38,008
8,093

83,548
35,200
5,867
9,260
21,258
11,963

34,460
24,770
-7,662
13,447
3,905

0
-39,670

0
-17,108

0
21,096

-39,670

-17,108

21,096

0
9,739
435
9,304

0
-8,427
-6,643
-1,785

0
4,047
103
3,944

0
-14,525
5,810
-20,335

0
-3,532
480
-4,012

1 Balance on current account
2 Merchandise trade balance2
3
Merchandise exports
4
Merchandise imports
5 Military transactions, net
6 Other service transactions, net
7 Investment income, net
8 U.S. government grants
9 U.S. government pensions and other transfers
10 Private remittances and other transfers

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

34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37 Before seasonal adjustment

- I 2,486

-7,802

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)

5,763

3,901

-1,379

822

-545

-673

-59

3,537

16,022

38,286

70,015

17,334

18,138

23,137

10,592

7,748

-4,882

5,942

-3,847

-869

-3,194

-229

-1,674

-3,965

1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38^10.
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 1995
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1994
Item

1991

1992

1993
Mar.

Apr.

May

June

July

Aug.'

Sept.p

1 Goods and services, balance
2 Merchandise
3 Services

-28,472
-74,068
45,5%

-40,384
-96,097
55,713

-75,725
-132,575
56,850

-6,898
-11,446
4,548

-8,447
-13,337
4,890

-9,381
-14,271
4,890

-9,041
-14,019
4,978

-11,191
-15,948
4,757

-9,680
-14,094
4,414

-10,128
-14,604
4,476

4 Goods and services, exports
5 Merchandise
6 Services

580,127
416,913
163,214

616,924
440,361
176,563

641,677
456,866
184,811

58,387
42,065
16,322

56,402
40,378
16,024

56,397
40,276
16,121

58,362
42,028
16,334

56,327
40,133
16,194

59,943
44,126
15,817

59,673
43,539
16,134

7 Goods and services, imports
8 Merchandise
9 Services

-608,599
-490,981
-117,618

-657,308
-536,458
-120,850

-717,402
-589,441
-127,961

-65,285
-53,511
-11,774

-64,849
-53,715
-11,134

-65,778
-54,547
-11,231

-67,403
-56,047
-11,356

-67,518
-56,081
-11,437

-69,623
-58,220
-11,403

-69,801
-58,143
-11,658

-66,723

-84,501

—115,568

—9,583

-12,045

—12,885

-13,028

-14,845

-12,758

—13,523

MEMO

10 Balance on merchandise trade, Census
basis

1. Data show monthly values consistent with quarterly figures in the US. balance of
payments accounts.

3.12

SOURCE. FT900, US. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.

U.S. RESERVE ASSETS
Millions of dollars, end of period
1994
Asset

1991

1992

1993
Apr.

1 Total

June

July

Aug.

Sept.

Oct.p

77,719

2 Gold stock, including Exchange
Stabilization Fund1
3 Special drawing rights^3
4 Reserve position in International Monetary
Fund
5 Foreign currencies4

71,323

73,442

76,565

74,420

75,732

75,443

75,740

76,532

78,172

11,057
11,240

11,056
8,503

11,053
9,039

11,053
9,440

11,052
9,522

11,052
9,731

11,052
9,696

11,054
9,837

11,054
9,971

11,053
10,088

9,488
45,934

11,759
40,005

11,818
41,532

11,899
44,173

11,841
42,005

12,184
42,765

12,183
42,512

12,161
42,688

12,067
43,440

12,339
44,692

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

3.13

May

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.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1994
Asset

1991

1992

1993
Apr.

1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3

June

July

Aug.

Sept.

Oct.p

968

205

386

171

174

604

181

188

342

223

281,107
13,303

314,481
13,118

379,394
12,327

396,495
12,104

402,170
12,065

411,580
12,065

423,715
12,056

427,574
12,044

429,819
12,044

439,854
12,039

1. Excludes deposits and U.S. Treasury securities held for international and
regional
organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.




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 A55
3.15

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1994
Item

1992

1993
Mar.

4
5
6
7
8
9
10
11
12

June

July

Aug/

Sept.p

493,152

479,215

488,161

501,827r

516,419

517,852

518,795

69,808
150,900

79,6%
148,707

74,695
140,653

76,911
134,568

80,937r
141,338

84,889
146,247

79,588
143,400

81,476
138,261

210,931
4,532
37,598

212,203
5,652
44,245

215,481
5,763
43,505

214,841
5,799
43,227

226,094
5,837
44,751

228,773
5,875
44,904

233,670
5,913
45,700

242,221
5,952
46,691

246,940
5,990
46,128

189,230
13,700
37,973
164,690
3,723
3,306

By area
Europe'
Canada
Latin America and Caribbean
Asia
Africa
Other countries

482,808

54,967
104,596

By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5

206,921
15,285
55,898
197,708
4,052
2,942

215,065
14,018
53,389
203,811
3,718
3,149

210,417
13,901
44,439
203,434
3,691
3,331

213,549
14,505
43,731
209,029
3,969
3,376

221,957r
15,996r
42,696
211,200r
4,110
5,866

227,469
18,656
42,749
217,881
3,862
5,800

226,170
18,547
44,070
220,435
4,259
4,369

224,704
19,237
44,267
222,287
4,388
3,910

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.

3.16

May

412,624

1 Total1
2
3

Apr.

LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies

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 U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the
United States, and on the 1989 benchmark survey of foreign portfolio investment in the
United States.

Reported by Banks in the United States1

Millions of dollars, end of period
1993
1990

Item

1991

1994

1992
Sept.

70,477
66,796
29,672
37,124
6,309

1 Banks' liabilities
2 Banks' claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers2
1. Data on
authorities.

claims

exclude




foreign

currencies

held

by

U.S.

monetary

75,129
73,195
26,192
47,003
3,398

72,796
62,799
24,240
38,559
4,432

Dec.

Mar.

June

81,225
59,136
20,930
38,206
2,494

77,627
59,151
19,379
39,772
3,058

85,737
72,728
19,912
52,816
3,655

71,695
55,698
20,440
35,258
4,182

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.

A56
3.17

International Statistics • January 1995
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1994
Item

1991

1992

1993
Mar.

Apr.

May

Juner

July

Aug.

Sept.p

BY HOLDER AND TYPE OF LIABILITY

1 Total, all foreigners

756,066

810,259

914,989

952,570

960,143

961,827

991,232

997,099r

992,932'

991,655

2 Banks' own liabilities
3 Demand deposits
4
Time deposits2
5 Other3
6 Own foreign offices4

575,374
20,321
159,649
66,305
329,099

606,444
21,828
160,385
93,237
330,994

621,118
21,575
175,117
110,117
314,309

648,799
23,035
176,973
111,444
337,347

666,673
23,646
178,224
123,797
341,006

664,770
27,878
183,171
122,681
331,040

685,265
24,566
184,473
117,368
358,858

697,114r
23,595
186,400r
126,973'
360,146r

692,663r
22,994
185,246r
117,844r
366,579r

704,736
23,552
178,093
133,079
370,012

180,692
110,734

203,815
127,644

293,871
176,523

303,771
173,475

293,470
167,999

297,057
161,145

305,967
171,315

299,985r
170,05 l r

300,269'
170,579

286,919
164,321

18,664
51,294

21,974
54,197

36,288
81,060

41,762
88,534

38,167
87,304

48,775
87,137

49,915
84,737

46,257r
83,677r

46,352
83,338r

38,914
83,684

8,981
6,827
43
2,714
4,070

9,350
6,951
46
3,214
3,691

10,935
5,639
15
2,780
2,844

8,086
5,641
209
2,482
2,950

5,912
4,328
26
2,411
1,891

8,363
6,437
35
2,785
3,617

8,631
5,256
31
3,073
2,152

7,318
5,511
29
3,469
2,013

4,967
3,972
36
2,335
1,601

6,118
5,141
28
2,491
2,622

2,154
1,730

2,399
1,908

5,296
4,275

2,445
2,097

1,584
1,358

1,926
857

3,375
2,825

1,807
1,082

995
836

977
767

424
0

486
5

1,021
0

338
10

226
0

1,069
0

548
2

725
0

159
0

205
5

131,088
34,411
2,626
16,504
15,281

159,563
51,202
1,302
17,939
31,961

220,708
64,231
1,601
21,654
40,976

228,403
66,995
1,668
23,943
41,384

215,348
64,682
1,504
22,064
41,114

211,479
64,817
1,435
24,398
38,984

222,275
67,691
2,029
26,029
39,633

231,136r
73,967r
1,472
28,052r
44,443r

222,988r
67,465r
1,232
26,793r
39,440"

219,737
71,207
1,691
27,542
41,974

96,677
92,692

108,361
104,596

156,477
150,900

161,408
148,707

150,666
140,653

146,662
134,568

154,584
141,338

157,169
146,247

155,523
143,400

148,530
138,261

3,879
106

3,726
39

5,482
95

12,414
287

9,969
44

12,050
44

13,112
134

10,863
59

11,990
133

10,203
66

522,265
459,335
130,236
8,648
82,857
38,731
329,099

547,320
476,117
145,123
10,170
90,296
44,657
330,994

582,441
474,695
160,386
9,719
105,192
45,475
314,309

611,693
497,795
160,448
10,707
104,809
44,932
337,347

624,710
514,901
173,895
11,785
107,662
54,448
341,006

628,200
510,790
179,750
15,551
109,084
55,115
331,040

645,698
530,866
172,008
12,323
108,317
51,368
358,858

649,355r
536,263r
176,117
11,792
106,889
57,436
360,146r

652,352r
536,570*
169,99 l r
11,831
107,272r
50,888r
366,579r

646,742
538,286
168,274
10,566
101,205
56,503
370,012

62,930
7,471

71,203
11,087

107,746
10,707

113,898
11,009

109,809
10,081

117,410
11,407

114,832
10,834

113,092r
10,135

115,782r
12,249

108,456
10,951

5,694
49,765

7,555
52,561

17,020
80,019

17,404
85,485

15,684
84,044

22,081
83,922

22,347
81,651

21,446
81,511r

22,049
81,484r

15,488
82,017

93,732
74,801
9,004
57,574
8,223

94,026
72,174
10,310
48,936
12,928

100,905
76,553
10,240
45,491
20,822

104,388
78,368
10,451
45,739
22,178

114,173
82,762
10,331
46,087
26,344

113,785
82,726
10,857
46,904
24,965

114,628
81,452
10,183
47,054
24,215

109,290
81,373
10,302
47,990*
23,081r

112,625r
84,656r
9,895
48,846r
25,915

119,058
90,102
11,267
46,855
31,980

18,931
8,841

21,852
10,053

24,352
10,641

26,020
11,662

31,411
15,907

31,059
14,313

33,176
16,318

27,917
12,587r

27,969
14,094

28,956
14,342

8,667
1,423

10,207
1,592

12,765
946

11,606
2,752

12,288
3,216

13,575
3,171

13,908
2,950

13,223r
2,107

12,154
1,721

13,018
1,596

7,456

9,111

17,567

19,209

17,961

26,385

27,075

25,589

25,338

19,160

7 Banks' custodial liabilities5
8
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
9
instruments7
10 Other
11 Nonmonetary international and regional organizations 8 ...
12 Banks' own liabilities
13
Demand deposits
14
Time deposits
Other3
15
16
17
18
19

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other

20 Official institutions9
21
Banks' own liabilities
22
Demand deposits
Time deposits2
23
24
Other3
25
26
27
28

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other

29 Banks10
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
Time deposits2
33
34
Other3
Own foreign offices4
35
36
37
38
39

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other

40 Other foreigners
41
Banks' own liabilities
42.
Demand deposits
43
Time deposits
Other3
44
45
46
47
48

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
MEMO

49 Negotiable time certificates of deposit in custody for
foreigners

1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign
banks, consists principally of amounts owed to the head office or parent foreign bank, and
to foreign branches, agencies, or wholly owned subsidiaries of the head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term securities,
held by or through reporting banks.




6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to
official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates
of deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported
3.17

Data A57

LIABILITIES TO FOREIGNERS Reported by Banks in the United States'—Continued
1994
Item

1991

1992

1993
Mar.

Apr.

May

June

July

Aug.

Sept.p

AREA

1 Total, all foreigners

756,066

810,259

914,989

952,570

960,143

961,827

991,232'

997,099'

992,932'

991,655

2 Foreign countries

747,085

800,909

904,054

944,484

954,231

953,464

982,601R

989,781R

987,965R

985,537

3
4
5
6
7
8
9

249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
241
11,391
2,222
37,238
1,598
100,292
622
12,741

307,670
1,611
20,567
3,060
1,299
41,411
18,630
913
10,041
7,365
3,314
2,465
577
9,793
2,953
39,440
2,666
111,805
504
29,256

376,989
1,917
28,627
4,517
1,872
39,741
26,613
1,519
11,559
16,096
2,966
3,366
2,511
20,493
2,572
41,555
3,227
133,936
570
33,332

398,584
2,515
31,827
3,093
1,497
42,010
31,771
1,425
12,786
17,705
2,429
3,131
1,971
19,622
1,451
39,262
2,922
149,656
414
33,097

405,686
2,719
32,049
3,342
1,932
43,147
32,704
1,160
11,915
16,347
2,537
4,061
3,041
18,321
2,532
40,998
2,972
153,906
407
31,596

404,477
3,309
32,612
3,207
1,849
41,982
27,583
1,453
13,015
18,514
3,278
2,853
4,016
17,482
3,443
40,174
2,759
158,962
424
27,562

412,205r
3,578
25,306
3,473
2,649
43,246'
33,114'
1,377
12,771
18,709'
4,018
2,920
4,497
15,839'
4,043
38,075
3,250
163,339'
434
31,567'

422,604'
3,364
25,145
2,877
2,504
41,410
30,838'
1,153
11,537
18,458
3,731
2,865
4,593
17,142'
5,710
41,378
3,515
171,248
230
34,906

419,891'
3,349
27,161'
2,634
1,735
41,911
31,045'
1,199
11,733
17,213'
3,195
2,867
3,794
15,459
4,152
43,486'
3,238
174,019
227
31,474

406,506
3,014
27,593
2,128
2,319
43,143
31,888
1,227
10,769
18,755
2,861
3,023
2,899
14,197
4,654
41,312
3,013
160,193
224
33,394

Belgium and Luxembourg
Denmark

10

11
17
13

Italy

14

Portugal

15
16
17
18
19
70
71
22

Turkey
United Kingdom
Other Europe and other former U.S.S.R.12

21,605

22,420

20,227

21,430

22,552

25,948

25,480'

26,625

26,346

24,652

74 Latin America and Caribbean
75
76
77 Bermuda
78 Brazil
79 British West Indies
30 Chile
31
37 Cuba
33
34
35
36
37 Netherlands Antilles
38
39 Peru
40
Uruguay
41
42 Other

345,529
7,753
100,622
3,178
5,704
163,620
3,283
4,661
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,096
13,181
6,879

317,228
9,477
82,284
7,079
5,584
153,033
3,035
4,580
3
993
1,377
371
19,454
5,205
4,177
1,080
1,955
11,387
6,154

351,356
14,477
72,964
7,830
5,301
184,608
3,183
3,171
33
880
1,207
410
28,018
4,195
3,582
926
1,611
12,786
6,174

361,546
14,020
77,457
6,200
5,258
191,133
3,576
3,428
38
823
1,170
419
27,806
5,313
3,404
877
1,578
12,973
6,073

364,556
13,270
80,843
7,671
4,880
195,456
3,832
4,003
9
846
1,157
495
22,362
5,036
3,521
898
1,536
12,312
6,429

358,829
13,474
79,265
8,182
5,572
188,943
3,286
3,865
11
842
1,137
526
21,900
7,021
3,811
912
1,561
12,013
6,508

38i,o6C
13,750
85,817
8,975
5,708
206,263'
3,523
3,929
11
812
1,143
475
21,286
4,885
3,861
930
1,597
11,655
6,440

375,495'
14,592
87,264
10,103'
6,259
198,280'
3,353
3,773
12
819
1,206
518
20,179
4,301
4,087
916
1,420
12,004'
6,409

377,632'
14,807
83,255
8,422'
5,695
204,463'
2,988
3,726
13
847
1,141
531
20,817'
5,058
3,843
1,027
1,336
13,157'
6,506

384,444
13,783
86,074
10,334
5,729
207,986
3,407
4,027
13
823
1,101
565
19,932
4,268
4,081
1,079
1,399
13,297
6,546

43

120,462

143,540

144,656

152,486

149,188

152,135

148,761'

151,317'

152,611'

158,380

2,626
11,491
14,269
2,418
1,463
2,015
47,069
2,587
2,449
2,252
15,752
16,071

3,202
8,408
18,499
1,399
1,480
3,773
58,435
3,337
2,275
5,582
21,437
15,713

4,011
10,633
17,233
1,114
1,986
4,435
61,483
4,913
2,035
6,137
15,824
14,852

5,294
9,306
18,685
1,658
2,345
4,580
66,425
4,808
2,544
5,985
13,305
17,551

6,058
8,698
19,093
1,450
1,802
4,134
62,295
2,619
5,550
13,655
19,188

5,358
9,820
21,665
1,521
1,537
3,460
63,051
4,523
2,590
5,788
14,895
17,927

6,158'
8,375
19,111'
2,136
2,002
3,762
64,124
4,581
3,150
4,851
14,374
16,137

5,018'
8,811
18,777
1,695
1,676'
3,822
65,690
5,3 It
3,396
5,222
14,935'
16,964'

4,394
8,737
18,722
1,777'
1,835'
3,436
65,793
4,873
3,214
6,364
15,928
17,538

5,062
8,863
18,881
2,187
1,828
3,192
68,244
4,622
3,135
6,503
17,138
18,725

6,634
2,208
99

5,813
1,688
76
331
11
983
2,724

6,166
1,984
93
230
8
1,057
2,794

6,411
1,999
78
290
7
1,204
2,833

6,153
1,706
80
289
8
1,291
2,779

6,36c
1,914
82
417
8
1,156'
2,783'

6,278
2,014
72
197
9
1,186
2,800

23 Canada

44
45
46
47
48
49
50

China
People's Republic of China
Republic of China (Taiwan)

Israel

4,646

53
54
55

Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries
Other

56
57
58
59
60
61
62

Egypt
Morocco
South Africa
Zaire
Oil-exporting countries
Other

4,825
1,621
79
228
31
1,082
1,784

5,884
2,472
76
190
19
1,346
1,781

12
1,303
2,561

5,749
1,659
89
285
11
1,139
2,566

Other

5,567
4,464
1,103

4,167
3,043
1,124

4,192
3,308
884

4,689
3,006
1,683

6,436
2,991
3,445

5,909
2,796
3,113

8,684
5,804
2,880

7,587
6,288
1,299

5,125
3,935
1,190

5,277
3,966
1,311

8,981
6,485
1,181
1,315

9,350
7,434
1,415
501

10,935
6,850
3,218
867

8,086
6,375
330
1,381

5,912
4,249
393
1,270

8,363
5,634
909
1,820

8,631'
6,647'
847
1,137

7,318
5,446
612
1,260

4,967
3,642
418
907

6,118
4,189
1,058
871

51
57

63
64
65

66 Nonmonetary international and regional organizations
67
68 Latin American regional
69 Other regional17

11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and
Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United
Arab Emirates (Trucial States).




451

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 Europe."

A58
3.18

International Statistics • January 1995
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1994
Area or country

1991

1992

1993
Mar.

Apr.

May

June

July

Aug.'

Sept."

1 Total, all foreigners

514,339

499,437

483,216

474,969

476,239

472,522

476,500'

469,277'

478,429

474,649

2 Foreign countries

508,056

494,355

480,811

473,049

475,055

470,796

474,079r

467,881r

476,470

471,385

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

123,377
331
6,404
707
1,418
14,723
4,222
717
9,047
2,468
355
325
3,147
2,755
4,923
4,717
962
63,430
569
2,157

121,044
413
6,535
382
598
11,490
7,683
679
8,876
3,063
396
720
2,295
2,763
4,100
6,567
1,287
60,939
536
1,722

129,738
489
6,775
612
570
11,481
8,164
736
7,658
2,945
531
936
1,961
2,666
3,443
8,606
1,559
68,175
376
2,055

124,723
420
6,774
896
647
11,398
9,374
720
6,370
2,575
598
846
1,862
1,859
3,313
5,578
1,546
67,347
364
2,236

123,505
486
6,391
1,332
669
13,092
8,303
682
6,749
3,272
605
835
1,642
2,828
3,420
6,487
1,324
63,110
361
1,917

119,709r
416
7,115
539
699
13,763
7,224r
661
6,128
3,003
620
876
1,605
2,502
3,411
6,674
1,210
61,166
340
1,757

123,1 Vf
470
6,917
622
739
13,278r
7,887r
583
6,074
3,006
751
1,035
1,541
1,905
3,632
9,028
1,208
62,478r
274
1,682

124,297
442
6,545
464
511
16,001
9,986
657
5,538
2,948
826
1,040
1,378
2,664
4,194
6,938
1,152
61,273
273
1,467

119,889
282
7,253
521
603
14,809
8,695
612
5,338
2,831
650
1,182
1,272
2,219
3,933
5,852
1,024
60,575
258
1,980

15,113

13,845

18,410

16,989

17,920

17,114

20,538r

19,9W

19,688

19,261

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

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

218,078
4,958
60,835
5,935
10,773
101,507
3,397
2,750
0
884
262
162
14,991
1,379
4,654
730
936
2,525
1,400

224,032
4,425
65,045
8,032
11,803
97,993
3,614
3,179
0
673
286
195
15,835
2,367
2,913
651
951
2,904
3,166

220,298
4,662
66,022
8,342
12,924
92,252
3,640
3,057
0
703
289
163
16,210
2,411
2,491
751
532
2,662
3,187

219,983
5,161
66,239
8,837
11,457
91,700
3,455
3,263
0
679
273
191
16,300
2,769
2,539
807
500
2,526
3,287

219,608
5,178
64,974
6,591
11,995
94,150
3,353
3,229
0
677
291
198
16,456
2,871
2,341
901
540
2,462
3,401

221,929r
5,506
64,098
6,276
11,356
98,045
3,419
3,366
0
707
312
194
16,768
2,366
2,219
908
608
2,434
3,347r

215,931r
5,811
67,951
5,783'
10,618
89,474
3,327
3,326
8
683
308
186
16,684'
2,118
2,357
926
748
2,245
3,378r

223,527
5,876
63,273
7,328
10,122
100,454
3,410
3,414
0
604
320
210
16,764
2,139
2,386
924
706
2,150
3,447

220,423
5,614
62,985
5,474
10,284
100,721
3,412
3,459
0
624
310
204
16,479
1,350
2,310
938
711
2,044
3,504

43

125,262

131,789

110,697

99,013

105,412

103,874

104,857r

102,360r

102,341

105,305

747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796

906
2,046
9,642
529
1,189
820
79,172
6,179
2,145
1,867
18,540
8,754

2,299
2,628
10,864
589
1,522
826
59,576
7,569
1,408
2,154
14,398
6,864

796
2,162
11,666
737
1,647
664
49,771
7,502
1,307
2,764
14,153
5,844

843
1,817
9,903
684
1,545
676
54,931
7,457
925
2,744
16,387
7,500

802
2,024
8,996
738
1,378
711
53,120
7,410
914
2,944
18,323
6,514

784
1,948
9,783
784
1,319
671r
55,535r
7,984
654
2,979r
16,565
5,851r

941
1,786
10,031
791
1,369
638r
53,313r
8,112
514
2,839r
16,342
5,684r

754
1,807
9,877
829
1,363
675
52,629
8,553
533
2,784
16,080
6,457

1,167
1,257
12,873
927
1,339
660
52,880
8,606
561
2,685
15,287
7,063

4,928
294
575
1,235
4
1,298
1,522

4,279
186
441
1,041
4
1,002
1,605

3,819
196
444
633
4
1,128
1,414

3,690
205
518
565
4
1,210
1,188

3,680
206
472
557
5
1,207
1,233

3,684
219
470
575
5
1,211
1,204

3,788
281
518
556
4
1,239
1,190

3,456
234
479
492
3
1,194
1,054

3,659
229
485
656
3
1,189
1,097

3,464
250
490
559
3
1,103
1,059

63 Other
64
Australia
Other
65

2,306
1,665
641

2,987
2,243
744

2,809
2,072
737

3,321
1,685
1,636

3,337
1,859
1,478

3,011
1,369
1,642

3,258
1,489
1,769

3,105
1,587
1,518

2,958
1,390
1,568

3,043
1,693
1,350

66 Nonmonetary international and regional organizations6 . . .

6,283

5,082

2,405

1,920

1,184

1,726

2,421

1,396

1,959

3,264

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
Yugoslavia^.
22 Other Europe and other former U.S.S.R.3
23 Canada

44
45
46
47
48
49
50
51
52
53
54
55

China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries4
Other

56
57
58
59
60
61
62

Egypt
Morocco
South Africa
Zaire
Oil-exporting countries5
Other

1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included
all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Europe."

Nonbank-Reported
3.19

BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
United States1 Payable in U.S. Dollars

Data A59

Reported by Banks in the

Millions of dollars, end of period
1994

Type of claim

1993

Mar.

Apr.

May

476,239
25,116
280,435
96,903
47,971
48,932
73,785

472,522
22,552
284,532
98,186
50,323
47,863
67,252

July

June

1,605,709'

1

Total

2
3
4
5
6
7
8

Banks' claims
Foreign public borrowers
Own foreign offices
Unaffiliated foreign banks
Deposits
Other
All other foreigners

Claims of banks' domestic customers3
Deposits
Negotiable and readily transferable
instruments4
Outstanding collections and other
12
claims

9
10
11

1,550,487'

1,458,849'

1,470,901'

514,339
37,126
318,800
116,602
69,018
47,584
41,811

499,437
31,367
303,991
109,342
61,550
47,792
54,737

483,216
28,814
286,882
98,030
46,887
51,143
69,490

474,969
25,764
280,898
94,809
44,177
50,632
73,498

65,344
15,280

60,058
15,452

40,410
9,619

47,802
14,022

31,474

17,155

20,340

13,132

13,636

13,440

8,655

7,871

7,564

36,213

22,854

22,085

21,751

8,031

43,024

22,238

13,599

8,974

478,476
22,788
286,939
102,270
49,719
52,551
66,479

23,031

12,939

468,837
21,926
283,840
100,484
50,756
49,728
62,587

Sept.p

49,209
12,579

37,125

Aug.

1,474,359'
476,389
21,650
289,451
101,789
50,962
50,827
63,499

MEMO
13

Customer liability on acceptances

14

Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States5

20,603

20,098

n.a.

and to foreign branches, agencies, or wholly owned subsidiaries of the head office or
parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit 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 for quarter ending with month indicated.
Reporting banks include all types of depository institution, as well as some brokers and
dealers.
2. For US. banks, includes amounts due from own foreign branches and foreign
subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign
banks, consists principally of amounts due from the head office or parent foreign bank.

3.20

21,901

BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1993
Maturity, by borrower and area2

1990

1991

1994

1992
Sept.

1 Total
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3

Mar.

June

206,903

195,302

195,119

189,498

194,794

193,255

186,007

165,985
19,305
146,680
40,918
22,269
18,649

162,573
21,050
141,523
32,729
15,859
16,870

163,325
17,813
145,512
31,794
13,266
18,528

161,953
21,211
140,742
27,545
10,341
17,204

166,244
17,458
148,786
28,550
10,828
17,722

166,385
15,896
150,489
26,870
9,585
17,285

160,424
12.603
147,821
25,583
8,638
16,945

49,184
5,450
49,782
53,258
3,040
5,272

51,835
6,444
43,597
51,059
2,549
7,089

53,300
6,091
50,376
45,709
1,784
6,065

57,240
9,819
51,561
37,642
1,916
3,775

56,300
7,542
56,624
40,287
1,783
3,708

58,786
7,291
58,717
36,007
1,603
3,981

50,907
8,155
56,618
38,314
1,797
4,633

3,859
3,290
25,774
5,165
2,374
456

3,878
3,595
18,277
4,459
2,335
185

5,367
3,287
15,312
5,038
2,380
410

4,433
2,549
13,353
4,732
2,049
429

4,327
2,553
13,877
5,412
1,934
447

3,822
2,548
13,341
4,709
2,001
449

3,316
2,496
12,691
4,795
1,850
435

1. Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.




Dec.

2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.

A60

International Statistics • January 1995

3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1
Billions of dollars, end of period
1992
Area or country

1990

1993

1994

1991
June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June

320.1

343.6

358.7

344.5

346.5

361.0

377.0

388.3

403.7

488.9*

4953 r

132.2
.0
10.4
10.6
5.0
.0
2.2
4.4
60.9
5.9
24.0

137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6

135.6
6.2
11.9
8.8
8.0
3.3
1.9
4.6
65.6
6.5
18.7

136.0
6.2
15.3
10.9
6.4
3.7
2.2
5.2
61.0
6.3
18.9

132.9
5.6
15.3
9.3
6.5
2.8
2.3
4.8
60.8
6.3
19.3

142.4
6.1
13.5
9.9
6.7
3.6
3.0
5.3
65.7
8.2
20.4

150.0
7.0
14.0
10.8
7.9
3.7
2.5
4.7
73.5
8.0
17.9

153.3
7.1
12.3
12.4
8.7
3.7
2.5
5.6
74.7
9.7
16.8

161.0
7.4
11.7
12.6
7.6
4.7
2.5
5.9
84.5
6.6
17.4

178.0
7.9
16.4
28.7
15.5
4.1
2.8
6.3
69.8
7.6
18.8

165.6r
8.6
18.8r
24.3
14.0
3.6
2.9
6.5
57.7r
9.5r
19.6r

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

22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8

22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7

25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0
1.7
2.2

25.0
.7
1.5
1.0
3.0
1.6
.5
9.7
1.5
1.5
1.7
2.3

24.0
1.2
.9
.7
3.0
1.2
.4
8.9
1.3
1.7
1.7
2.9

25.4
1.2
.8
.7
2.7
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

26.0
.6
1.1
.6
3.2
2.1
1.0
9.3
2.1
2.2
1.2
2.8

24.6
.4
1.0
.4
3.2
1.7
.8
8.9
2.1
2.6
1.1
2.3

41.2
1.0
1.1
1.0
3.8
1.6
1.2
12.3
2.4
3.0
1.2
12.7

43.2r
1.0
1.1
.8r
4.6
1.6
1.1
13.2
2.1
2.8
1.2
13.7

25 OPEC2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries

12.8
1.0
5.0
2.7
2.5
1.7

14.5
.7
5.4
2.7
4.2
1.5

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

16.6
.6
5.1
3.1
6.6
1.1

15.7
.6
5.5
3.1
5.4
1.1

14.8
.5
5.4
2.8
4.9
1.1

16.7
.5
5.1
3.2
6.7
1.2

22.4r
.5
4.7
3.4r
12.8
1.0

21.5
.5
4.4
3.2
12.4
1.1

31 Non-OPEC developing countries

65.4

63.9

68.1

72.8

72.1

74.4

76.6

77.0

82.5

93.4r

93.91

5.0
14.4
3.5
1.8
13.0
.5
2.3

4.8
9.6
3.6
1.7
15.5
.4
2.1

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
16.8
.4
2.7

7.2
11.7
4.7
2.0
17.5
.3
2.6

7.7
12.0
4.7
2.1
17.7
.4
3.0

8.7
12.5
5.1
2.2
18.7
.5
2.6

9.8
11.8
5.1
2.4
18.3
.6
2.7

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
Peru
Other

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 Asia

.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7

.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0

.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
3.4
3.4
2.2
2.7

1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6

.5
6.4
2.9
.4
6.5
4.1
2.6
2.8
3.0

2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
2.9

.8
7.5r
3.6
.4
13.9
5.2
3.4
2.9
3.1

.7
7.1
3.7
.4
14. l r
5.2
3.2
3.3
3.5

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa3

.4
.8
.0
1.0

.4
.7
.0
.7

.5
.7
.0
.6

.3
.6
.0
.9

.2
.6
.0
1.0

.2
.5
.0
.8

.2
.6
.0
.9

.2
.6
.0
.8

.4
.6
.0
.8

.4
.7
.0
1.0

.5
.7
.0
.9

2.3
.2
1.2
.9

2.4
.9
.9
.7

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

3.0
1.7
.6
.7

3.0
1.6
.6
.9

3.3
1.5
.5
1.4

3.01
1.2
.5
1.4r

56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama6
62 Lebanon
63 Hong Kong
64 Singapore
65 Other'

44.7
2.9
4.4
11.7
7.9
1.4
.1
9.7
6.6
.0

54.2
11.9
2.3
15.8
1.2
1.4
.1
14.4
7.1
.0

61.4
12.9
5.1
19.3
.8
1.9
.1
14.9
6.4
.0

54.5
8.9
3.8
16.9
.7
2.0
.1
15.2
6.8
.0

58.3
6.9
6.2
21.8
1.1
1.9
.1
13.8
6.5
.0

60.2
9.7
4.1
17.6
1.6
2.0
.1
16.7
8.4
.0

58.0
7.1
4.5
15.6
2.5
2.1
.1
16.9
9.3
.0

67.9
12.7
5.5
15.1
2.8
2.1
.1
19.1
10.4
.0

72.5
12.6
8.1
16.9
2.3
2.4
.1
18.7
11.2
.1

78.3r
15.4
8.4
17.2
2.7
2.0
.1
19.7r
12.7
.0

76.6r
13.5
6.1

66 Miscellaneous and unallocated8

39.9

48.0

48.6

36.8

39.7

38.8

46.2

46.3

43.3

72.0r

91.0*

52 Eastern Europe
53 Russia4
54 Yugoslavia5
55 Other

1. The banking offices covered by these data include US. offices and foreign branches
of U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not
covered include U.S. agencies and branches of foreign banks. Beginning March 1994, the
data include large foreign subsidiaries of U.S. banks. The data also include other types of
U.S. depository institutions as well as some types of brokers and dealers. To eliminate
duplication, the data are adjusted to exclude the claims on foreign branches held by a U.S.
office or another foreign branch of the same banking institution.
2. Organization of Petroleum Exporting Countries, shown individually; other members
of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and




2o. r

2.4
1.9
.1
21.8
10.6
.0

United Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia.
6. Includes Canal Zone.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional
organizations.

Nonbank-Reported Data

A61

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1994

1993
Type of liability, and area or country

1990

1991

1992
Mar.

June

Sept.

Dec.

Mar.

June"

1 Total

46,043

44,708

45,260

46,170

46,514

48,524

49,136

51,740

55316

2 Payable in dollars
3 Payable in foreign currencies

40,786
5,257

39,029
5,679

37,276
7,984

37,896
8,274

37,027
9,487

39,311
9,213

37,880
11,256

38,115
13,625

42,463
12,853

By type
4 Financial liabilities
Payable in dollars
5
6
Payable in foreign currencies

21,066
16,979
4,087

22,518
18,104
4,414

23,590
16,780
6,810

24,239
17,178
7,061

25,100
16,935
8,165

26,731
18,705
8,026

28,254
18,175
10,079

30,111
18,481
11,630

33,277
22,424
10,853

7 Commercial liabilities
8
Trade payables
Advance receipts and other liabilities . . .
9

24,977
10,683
14,294

22,190
9,252
12,938

21,670
9,566
12,104

21,931
9,684
12,247

21,414
9,370
12,044

21,793
9,226
12,567

20,882
8,800
12,082

21,629
8,956
12,673

22,039
9,855
12,184

10
11

Payable in dollars
Payable in foreign currencies

23,807
1,170

20,925
1,265

20,496
1,174

20,718
1,213

20,092
1,322

20,606
1,187

19,705
1,177

19,634
1,995

20,039
2,000

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

10,978
394
975
621
1,081
545
6,357

12,003
216
2,106
682
1,056
408
6,528

13,207
414
1,623
889
606
569
8,430

13,567
306
1,625
899
639
503
9,035

14,199
268
2,219
863
585
491
9,118

16,445
278
2,077
855
573
378
11,694

18,185
175
2,326
975
534
634
12,925

20,293
525
2,589
1,214
564
1,200
13,595

23,564
503
1,590
939
533
631
18,151

19

Canada

229

292

544

604

493

663

859

508

698

4,784
537
114
6
3,524
7
4

4,053
379
114
19
2,850
12
6

4,299
626
114
18
2,865
13
5

4,199
476
124
18
2,901
11
5

3,719
1,301
114
18
1,600
15
5

3,359
1,148
0
18
1,533
17
5

3,553
1,157
120
18
1,613
14
5

3,282
1,052
115
18
1,454
13
5

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

4,153
371
0
0
3,160
5
4

27
28
29

Asia2
Japan
Middle Eastern oil-exporting countries^

5,295
4,065
5

5,381
4,116
13

5,747
4,679
19

5,703
4,692
24

6,039
4,857
19

5,754
4,725
23

5,689
4,620
23

5,601
4,589
24

5,694
4,760
24

30

Africa

2
0

6
4

6
0

6
0

130
123

132
124

133
123

133
124

9
0

409

52

33

60

40

18

29

23

30

10,310
275
1,218
1,270
844
775
2,792

8,701
248
1,039
1,052
710
575
2,297

7,398
298
700
729
535
350
2,505

6,992
264
707
650
537
472
2,119

6,807
269
775
603
577
441
2,186

7,051
257
643
571
601
536
2,319

6,825
240
648
684
687
375
2,051

6,549
253
554
577
628
387
2,156

6,903
254
711
669
642
472
2,309

31
32
33
34
35
36
37
38
39
40

Oil-exporting countries4
All other5
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

1,261

1,014

1,002

1,005

942

847

883

1,039

1,062

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,672
12
538
145
30
475
130

1,355
3
310
219
107
307
94

1,533
3
307
209
33
457
142

1,776
11
429
236
34
553
171

1,828
6
356
226
16
659
172

1,759
4
340
214
36
577
173

1,661
21
348
216
26
485
126

1,911
8
493
211
19
557
150

2,004
2
416
217
23
705
194

48
49
50

Asia2
Japan
Middle Eastern oil-exporting countries-

9,483
3,651
2,016

9,334
3,721
1,498

10,594
3,612
1,889

10,757
3,709
1,796

10,520
3,390
1,815

10,916
3,726
1,968

10,458
3,951
1,525

10,906
4,613
1,533

10,898
4,385
1,813

51
52

Africa
Oil-exporting countries4

844
422

715
327

568
309

675
322

665
378

641
320

463
171

490
199

523
247

53

Other5

1,406

1,071

575

726

652

579

592

734

649

1. For a description of the changes in the international statistics tables, see Federal
Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Revisions include a reclassification of transactions, which also affects the totals for
Asia and the grand totals.




3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.

A62

International Statistics • January 1995

3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1993
Type of claim, and area or country

1990

1991

1994

1992r
Mar.

June

Sept.

Dec.

Mar.

Junep

1 Total

35,348

45,262

42,286

46,753

42,589

43,199

43,603

43,447

50,407

2 Payable in dollars
i Payable in foreign currencies

32,760
2,589

42,564
2,698

39,594
2,692

43,610
3,143

39,304
3,285

39,664
3,535

40,371
3,232

40,028
3,419

46,864
3,543

By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
8 Other financial claims
9
Payable in dollars
10
Payable in foreign currencies

19,874
13,577
12,552
1,025
6,297
5,280
1,017

27,882
20,080
19,080
1,000
7,802
6,910
892

23,822
15,136
14,313
823
8,686
7,762
924

26,833
16,732
15,602
1,130
10,101
9,045
1,056

22,656
11,966
10,997
969
10,690
9,541
1,149

24,212
13,499
12,490
1,009
10,713
9,605
1,108

23,656
13,272
12,421
851
10,384
9,328
1,056

23,324
13,852
12,953
899
9,472
8,407
1,065

29,632
17,585
16,672
913
12,047
10,978
1,069

11 Commercial claims
12 Trade receivables
13 Advance payments and other claims

15,475
13,657
1,817

17,380
14,468
2,912

18,464
15,907
2,557

19,920
17,566
2,354

19,933
17,450
2,483

18,987
16,009
2,978

19,947
17,003
2,944

20,123
17,285
2,838

20,775
18,004
2,771

14
15

Payable in dollars
Payable in foreign currencies

14,927
548

16,574
806

17,519
945

18,963
957

18,766
1,167

17,569
1,418

18,622
1,325

18,668
1,455

19,214
1,561

16
17
18
19
20
21
22

By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

9,645
76
371
367
265
357
7,971

13,441
13
269
283
334
581
11,534

9,331
8
764
326
515
490
6,252

10,405
67
905
388
544
478
6,991

9,744
74
781
383
499
494
6,579

8,384
70
708
362
485
512
5,230

8,095
131
785
472
502
515
4,527

7,347
122
753
441
503
520
3,916

8,085
83
899
417
480
495
4,638

23

Canada

2,934

2,642

1,716

2,013

1,805

1,627

1,870

2,508

3,546

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

6,201
1,090
3
68
4,635
177
25

10,717
827
8
351
9,056
212
40

11,323
658
40
686
9,297
445
29

10,298
320
79
592
8,397
656
23

7,349
762
258
590
4,803
665
24

10,741
580
197
590
8,176
882
25

11,314
496
125
599
8,759
865
161

10,388
502
34
567
8,143
782
26

15,291
1,215
65
359
12,855
473
33

860
523
8

640
350
5

864
668
3

3,362
3,123
3

3,016
2,485
10

2,756
2,215
5

1,801
1,063
3

2,626
1,762
5

2,246
1,360
2

37
0

57
1

83
9

128
1

125
1

88
1

99
1

76
0

74
1

195

385

505

627

617

616

477

379

390

7,044
212
1,240
807
555
301
1,775

8,193
194
1,585
955
645
295
2,086

8,351
189
1,537
933
552
362
2,094

8,800
170
1,492
1,025
734
437
2,363

8,968
173
1,511
1,046
565
442
2,562

8,088
163
1,438
935
410
376
2,288

8,764
185
1,943
997
417
424
2,252

8,407
174
1,817
923
351
404
2,219

8,563
179
1,761
920
287
642
2,338

31
32
33

Japan
Middle Eastern oil-exporting countries2

34
35

Africa
Oil-exporting countries3

36

All other4

37
38
39
40
41
42
43

Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

44

Canada

1,074

1,121

1,286

1,334

1,359

1,360

1,356

1,465

1,451

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,375
14
246
326
40
661
192

2,655
13
264
427
41
842
203

3,043
28
255
357
40
924
345

3,474
18
195
836
17
998
349

3,456
17
239
788
43
913
317

3,071
20
225
407
39
866
286

3,207
11
173
462
70
945
295

3,499
12
210
423
58
985
290

3,801
17
285
494
66
1,000
303

4,127
1,460
460

4,591
1,899
620

4,866
1,903
693

5,430
2,163
773

5,220
1,885
673

5,538
2,519
456

5,623
2,142
657

5,763
2,338
654

6,028
2,326
601

52
53
54

Japan
Middle Eastern oil-exporting countries2

55
56

Africa
Oil-exporting countries3

488
67

430
95

554
78

463
75

516
99

493
107

492
71

512
101

484
90

57

Other4

367

390

364

419

414

437

505

477

448

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.

A74

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Securities Holdings and Transactions

A63

3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1994

1994
Transaction, and area or country

1992

1993
Jan.Sept.

Mar.

May

Apr.

June

July

Aug.

Sept.p

US. corporate securities
STOCKS

221,367
226,503

1 Foreign purchases
2 Foreign sales

319,728
298,145

270,471
264,690

36,535
36,290

29,853
31,654

26,699
25,113

28,349
30,249

24,332
25,174

29,312
26,400

28,725
30,136

3 Net purchases, or sales (—)

-5,136

21,583

5,781

245

-1,801

1,586

-1,900

-842

2,912

-1,411

4 Foreign countries

-5,169

21,311

5,828

247

-1,799

1,569

-1,891

-846

2,914

-1,425

-4,927
-1,350
-80
-262
168
-3,301
1,407
2,203
-88
-3,943
-3,598
10
169

10,665
-103
1,647
-600
2,986
4,560
-3,213
5,724
-328
8,198
3,825
63
202

9,407
124
2,732
1,249
1,230
1,893
-728
-1,193
-917
-1,424
931
47
636

1,243
82
332
-155
79
584
-59
-31
64
-1,175
-117
13
192

803
-83
252
82
174
230
290
-1,862
4
-1,191
-658
33
124

1,219
210
398
176
30
174
156
-207
49
476
335
-1
-123

-378
-241
119
89
74
-322
-529
-839
-111
-143
171
6
103

-291
-68
56
357
82
-830
-313
-476
-94
280
555
-7
55

1,424
-22
73
266
136
866
-366
989
-281
1,031
1,132
0
117

-1,011
-63
-108
55
-104
-638
63
-625
-431
588
760
10
-19

33

272

-47

-2

-2

17

-9

4

-2

14

214,922
175,842

283,800
217,943

230,280
184,618

30,717
25,265

29,756
27,473

24,955
20,868

31,789
21,123

25,166
18,898

S Europe
6 France
7 Germany
8 Netherlands
9 Switzerland
10 United Kingdom
11 Canada
17 Latin America and Caribbean
N Middle East'
14 Other Asia
IS Japan
16 Africa
17 Other countries
18 Nonmonetary international and
regional organizations
BONDS2

19 Foreign purchases
20 Foreign sales

22,963r
15,686

19,038
17,625

21 Net purchases, or sales (—)

39,080

65,857

45,662

5,452

2,283

4,087

10,666

6,268

7,277'

1,413

22 Foreign countries

37,964

65,319

45,050

5,365

2,298

4,025

10,538

5,883

7,344'

13%

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries

17,435
1,203
2,480
540
-579
12,421
237
9,300
3,166
7,545
-450
354
-73

22,429
2,346
885
-290
-627
19,529
1,668
15,697
3,257
20,846
11,569
1,149
273

27,465
240
-453
2,521
546
25,778
1,895
4,099
979
9,974
4,979
20
618

2,982
32
-64
330
131
3,343
-17
1,848
59
417
-363
-10
86

346
181
83
216
-189
556
-16
873
903
523
55
130

528
-3
-244
358
136
894
286
762
17
2,287
1,575
10
135

6,031
47
52
868
144
5,624
422
1,553
339
2,177
1,396
9

5,152r
-18
34
610
-9
4,497r
519
-81
157r
1,558
763
18
21

2,325
-16
-355
-64
292
1,916
194
-1,831
-53
716
431

7

4,531
21
52
29
-192
4,409
625
-527
375
766
712
-23
136

36 Nonmonetary international and
regional organizations

1,116

538

612

87

-15

62

128

385

-4,028
30,946
34,974
-147
64,158
64,305

-6,715
31,098
37,813
427
71,762
71,335

-3,093'
29,291r
32,384
—2,202r
59,351
61,553'

73

74
71

76
77
78
79
30
31
37

33
34
35

7

-67

2

43
17

Foreign securities
3 7 Stocks, net purchases, or sales (—)
38 Foreign purchases
39 Foreign sales3
40 Bonds, net purchases, or sales (—)
41 Foreign purchases
42 Foreign sales

-32,259
150,051
182,310
-15,605
513,589
529,194

-63,340
245,527
308,867
-69,471
829,871
899,342

-34,814
303,601
338,415
-13,553
703,014
716,567

-6,527
37,088
43,615
5,975
120,450
114,475

-1,940
33,083
35,023
-5,565
69,086
74,651

43 Net purchases, or sales ( - ) , of stocks and bonds . . . .

-47,864

-132,811

-48,367

-552

-7,505

-4,175

-6,288

—51,274

-132,972

-48,329

-529

-7,461

-4,462

-6,281

-31,350
-6,893
-4,340
-7,923
-13
-755

-89,390
-14,997
-9,229
-15,303
-185
-3,868

-3,013
-7,274
-13,904
-20,996
-187
-2,955

8,157
456
-2,836
-6,718
-120
532

-40
-412
-6,602
-117
-31
-259

-1,291
436
-2,421
-528
-4
-654

4,268
-769
-4,997
-4,309
-45
-429

3,410

161

-38

-23

-44

287

-7

44 Foreign countries
45
46
47 Latin America and Caribbean
48
49
50 Other countries
51 Nonmonetary international and
regional organizations

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman,
Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of US. government




— 1,258r
33,840"
35,098r
1,360*
67,262r
65,902r

691
37,346
36,655
-800
78,733
79,533

—5,295'

102'

-109

-5,477'

-81'

418

-2,410
-2,041
— l,437r
339r
29
43

-179"
-600
l,528r
—321'
48
-557

-2,906
865
5,163
-1,912
-22
-770

183

-527

182

agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.

A137 International Statistics • January 1995
3.25

Foreign Transactions1

MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars; net purchases, or sales (—) during period

1994
Area or country

1994

1993r

1992

Jan.Sept.

Mar.

Apr.

May

July

June

Aug.'

Sept.p

1 Total estimated

39,288

23,401

42,357

-1,240

-13,607

19,778

—5,353

1,710"

15,103

11,093

2 Foreign countries

37,935

23,175

43,155

-1,200

-12,879

19,727

-4,901

2,043r

14,687

11,167

3
4
5
6
7
8
9
10
11

Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R
Canada

19,625
1,985
2,076
-2,959
-804
488
24,184
-5,345
562

-2,403
1,218
-9,975
-515
1,421
-1,501
6,167
782
10,309

23,833
556
4,766
304
559
1,969
10,555
5,124
5,457

2,342
269
-729
-971
34
1,385
723
1,631
542

-5,356
-175
-465
187
-154
3
-3,910
-842
-1,662

8,772
147
2,279
21
150
-211
4,955
1,431
98

-2,702
-170
143
560
257
158
-5,562
1,912
-11

4,891'
-78
714
120
100
-416
4,820
-369'
2,937

8,264
529
1,795
-15
-158
-259
5,361
1,011
1,838

3,921
-31
-243
-68
105
441
3,522
195
1,515

12
13
14
15
16
17
18
19

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other

-3,222
539
-1,956
-1,805
23,517
9,817
1,103
-3,650

-4,572
390
-5,806
844
20,531
17,070
1,156
-1,846

-18,222
-411
-17,593
-218
33,285
20,776
58
-1,256

-3,428
93
-4,204
683
151
2,914
-18
-789

-6,002
-146
-6,911
1,055
403
2,976
59
-321

-2,652
-130
-2,708
186
13,286
8,185
-29
252

-7,080
-9
-6,744
-327
5,128
5,099
16
-252

-7,273
17
-7,663
373
2,522
-812
5
-1,039

-2,310
-132
3,172
-5,350
5,990
3,681
80
825

-666
19
1,487
-2,172
6,766
3,210
200
-569

1,353
1,018
533

226
-279
654

-798
-767
68

-40
5
-37

-728
-724
21

51
70
-111

-452
-395
54

-333
-425
23

416
317
-4

-74
-61
-1

37,935
6,876
31,059

23,175
1,272
21,903

43,155
34,737
8,418

-1,200
-5,051
3,851

-12,879
-640
-12,239

19,727
11,253
8,474

-4,901
2,679
-7,580

2,043'
4,897'
-2,854

14,687
8,551
6,136

11,167
4,719
6,448

4,317
11

-8,836
-5

-642
1

33

144
0

-342
0

-495

12
0

621
1

3
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 Africa

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.




0

0

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 A65
3.26

D I S C O U N T RATES OF FOREIGN C E N T R A L B A N K S 1
Percent per year, averages of daily figures
Rate on Nov. 31, 1994
Country

Rate on Nov. 31, 1994
Country

Month
effective
4.5
4.5
6.04
5.0
5.0

Austria..
Belgium.
Canada..
Denmark
France2 .

May 1994
May 1994
Nov, 1994
May 1994
July 1994

Month
effective
Germany...
Italy
Japan
Netherlands

4.5
7.5
1.75
4.5

1. Rates shown are mainly those at which the central bank either discounts or makes
advances against eligible commercial paper or government securities for commercial
banks or brokers. For countries with more than one rate applicable to such discounts or
advances, the rate shown is the one at which it is understood that the central bank
transacts the largest proportion of its credit operations.

3.27

Rate on Nov. 31, 1994

Country

May 1994
Aug. 1994
Sept. 1993
May 1994

Month effective
Norway
Switzerland . . . .
United Kingdom

4.75
3.5
12.0

Feb. 1994
Apr. 1994
Sept. 1992

2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.

FOREIGN SHORT-TERM INTEREST RATES1
Percent per year, averages of daily figures
1994
Type or country

1991

1992

1993
May

8 Italy

5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33

3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39

3.18
5.88
5.14
7.17
4.79
6.73
8.30
10.09
8.10
2.96

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.




June

July

Aug.

Sept.

Oct.

Nov.

4.51
5.13
6.38
5.07
3.94
5.04
5.52
7.76
5.27
2.17

4.51
5.13
6.50
4.95
4.21
4.95
5.44
8.04
5.33
2.12

4.74
5.15
6.28
4.86
4.17
4.84
5.51
8.39
5.53
2.14

4.80
5.47
5.71
4.89
4.21
4.88
5.46
8.88
5.47
2.28

5.01
5.65
5.61
4.95
4.00
4.98
5.50
8.68
5.34
2.31

5.52
5.83
5.56
5.12
4.02
5.12
5.52
8.80
5.15
2.33

5.78
5.98
5.77
5.10
3.86
5.15
5.49
8.72
5.09
2.33

A139 International Statistics • January 1995
3.28

FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1994
Country/currency unit

1991

1992

1993
June

1
2
3
4
5
6
7
8
9
10

Australia/dollar^
Austria/schilling
Belgium/franc
Canada/dollar
China, P.RVyuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

11
12
13
14
15
16
17
18
19
20

Hong Kong/dollar
India/rupee
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder,
New Zealand/dollar2
Norway/krone
Portugal/escudo

21
22
23
24
25
26
27
28
29
30

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2

July

Aug.

Sept.

Oct.

Nov.

77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0481'
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

67.993
11.639
34.581
1.2902
5.7795
6.4863
5.7251
5.6669
1.6545
229.64

73.291
11.446
33.514
1.3836
8.6836
6.3786
5.4241
5.5597
1.6271
244.77

73.409
11.027
32.315
1.3826
8.6605
6.1581
5.1996
5.3702
1.5674
236.92

74.010
11.010
32.248
1.3783
8.6072
6.1845
5.1493
5.3602
1.5646
237.11

74.200
10.904
31.871
1.3540
8.5581
6.1038
4.9689
5.2975
1.5491
235.98

73.787
10.695
31.284
1.3503
8.5492
5.9479
4.6866
5.2025
1.5195
233.06

75.492
10.838
31.694
1.3647
8.5370
6.0268
4.7388
5.2867
1.5396
237.38

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

7.7357
31.291
146.47
1,573.41
111.08
2.5738
1.8585
54.127
7.0979
161.08

7.7309
31.385
149.54
1,592.22
102.53
2.5942
1.8242
59.121
7.0686
168.76

7.7265
31.376
152.79
1,562.31
98.44
2.5948
1.7585
60.063
6.8560
160.98

7.7272
31.373
152.22
1,582.15
99.94
2.5633
1.7570
60.119
6.8644
159.80

7.7275
31.372
154.61
1,565.79
98.77
2.5575
1.7372
60.297
6.7961
157.91

7.7276
31.373
158.64
1,548.29
98.35
2.5589
1.7028
60.898
6.6166
155.26

7.7306
31.394
156.39
1,583.81
98.04
2.5604
1.7261
62.093
6.7297
157.27

1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74

1.6294
2.8524
784.66r
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63

1.6158
3.2729
805.75
127.48
48.21 l r
7.7956
1.4781
26.416
25.333
150.16

1.5310
3.6318
809.86
134.23
49.232
7.7968
1.3727
27.018
25.137
152.62

1.5137
3.6705
808.39
129.31
49.010
7.7471
1.3239
26.658
24.977
154.67

1.5045
3.5968
806.83
129.90
49.241
7.7420
1.3184
26.419
25.021
154.22

1.4885
3.5570
803.69
128.41
49.260
7.5227
1.2892
26.210
24.968
156.61

1.4761
3.5420
801.98
126.34
49.112
7.2631
1.2648
26.132
25.001r
160.64

1.4682
3.5256
799.46
128.34
49.163
7.3637
1.2956
26.188
24.992
158.92

89.84

86.61

93.18

91.60

89.06

89.26

88.08

86.66

87.71

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).

A74

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Issue
Anticipated schedule of release dates for periodic releases

December 1994

Page
A76

SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest Bulletin Reference
Title and Date

Issue

Page

Assets and liabilities of commercial banks
March 31, 1993
June 30, 1993
September 30, 1993
December 31, 1993

August
November
February
May

1993
1993
1994
1994

A70
A70
A70
A68

February
May
August
November

1994
1994
1994
1994

A76
A74
A68
A68

February
May
August
November

1994
1994
1994
1994

A80
A78
A72
A72

November
January
August
October

1991
1992
1992
1992

A80
A70
A80
A70

December
May
August
March

1991
1992
1992
1993

A79
A81
A83
A71

Terms of lending at commercial banks
November 1993
February 1994
May 1994
August 1994

Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1993
December 31, 1993
March 31, 1994
June 30, 1994

Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992

Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992




A74

Index to Statistical Tables
References are to pages A3-A66 although the prefix 'A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 21, 22
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-22
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 23
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 22,26
Bankers balances, 18-22. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 23
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, 18
Federal Reserve Banks, 11
Central banks, discount rates, 65
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 21
Weekly reporting banks, 21-23
Commercial banks
Assets and liabilities, 18-22
Commercial and industrial loans, 18-23
Consumer loans held, by type and terms, 39
Deposit interest rates of insured, 16
Loans sold outright, 21
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 4
Commercial paper, 24, 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, 18-23




Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 23
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13

Deposits (See also specific types)
Banks, by classes, 4, 18-22, 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
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 21, 22, 23, 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, 24, 26
Financial institutions, loans to, 21, 22, 23
Float, 5
Flow of funds, 40,42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 23
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 21, 22
Foreign exchange rates, 66
Foreign trade, 54
Foreigners
Claims on, 55, 58, 59, 60, 62
Liabilities to, 22, 54, 55, 56, 61, 63, 64

A74

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, 66
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-65
International organizations, 55, 56, 58, 61, 62
Inventories, 51
Investment companies, issues and assets, 35

Investments (See also specific types)
Banks, by classes, 18-23
Commercial banks, 4, 18-23
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, 18-23
Commercial banks, 4, 18-23
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, 21, 22, 38
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 21-23
Reserve requirements, 9
Reserves
Commercial banks, 18
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
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, 63
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 21, 22
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 21, 22
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 also Credit unions and Savings and
Thrift institutions, 4. (See
loan associations)
Time and savings deposits, 4, 14, 16, 18-23
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, 18-23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 18-23, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 64
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 25
U.S. international transactions, 53-66
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)

A74

Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN,
ALAN S. BLINDER,

OFFICE OF BOARD

Chairman
Vice Chairman

MEMBERS

Assistant to the Board
Assistant to the Board
THEODORE E . ALLISON, Assistant to the Board for Federal
Reserve System Affairs
L Y N N S . FOX, Deputy Congressional Liaison
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
D I A N E E . WERNEKE, Special Assistant to the Board
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Adviser
JOSEPH R . COYNE,
DONALD J. W I N N ,

LEGAL

EDWARD W. KELLEY, JR.
JOHN P. LAWARE

DIVISION OF INTERNATIONAL FINANCE
EDWIN M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
D A L E W . HENDERSON, Associate Director
DAVID H . HOWARD, Senior Adviser
DONALD B . ADAMS, Assistant Director
THOMAS A . CONNORS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H . JOHNSON, Assistant Director
CATHERINE L . M A N N , Assistant Director
RALPH W . SMITH, JR., Assistant Director

DIVISION

General Counsel
Associate General Counsel
RICHARD M . ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M . O ' D A Y , Associate General Counsel
ROBERT DEV. FRIERSON, Assistant General Counsel
KATHERINE H . WHEATLEY, Assistant General Counsel
J. VIRGIL MATTINGLY, JR.,
SCOTT G . ALVAREZ,

OFFICE OF THE SECRETARY
Secretary
JENNIFER J. JOHNSON, Deputy Secretary
BARBARA R . LOWREY, Associate Secretary
WILLIAM W . WILES,

DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C . SCHEMERING, Deputy Director
D O N E . KLINE, Associate 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
WILLIAM SCHNEIDER, Project Director,
National Information Center



DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
MARTHA BETHEA, Associate Director
WILLIAM R . JONES, Associate Director
MYRON L . KWAST, Associate Director
PATRICK M . PARKINSON, Associate Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
MARTHA S . SCANLON, Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
FLINT BRAYTON, Assistant Director
DAVID S . JONES, Assistant Director
STEPHEN A . RHOADES, Assistant Director
CHARLES S . STRUCKMEYER, Assistant Director
ALICE PATRICIA WHITE, Assistant Director
JOYCE K . ZICKLER, Assistant Director
JOHN J. MINGO, Senior Adviser
G L E N N B . CANNER, Adviser
DIVISION

OF MONETARY

AFFAIRS

Director
DAVID E . LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D . PORTER, Deputy Associate Director
VINCENT R . REINHART, Assistant Director
NORMAND R . V . BERNARD, Special Assistant to the Board

DONALD L . KOHN,

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD, Director
G L E N N E . LONEY, Associate Director
DOLORES S . SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN MCNULTY, Assistant Director

LAWRENCE B. LINDSEY
SUSAN M . PHILLIPS

JANET L. YELLEN

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
S . DAVID FROST, Staff Director

DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR., Director
DAVID L . ROBINSON, Deputy Director (Finance and
Control)
LOUISE L . ROSEMAN, Associate Director
CHARLES W . BENNETT, Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G . HAMILTON, Assistant Director
JEFFREY C . MARQUARDT, Assistant Director
JOHN H . PARRISH, Assistant Director
FLORENCE M . YOUNG, Assistant Director

DIVISION OF HUMAN RESOURCES
MANAGEMENT
Director
Associate Director
ANTHONY V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
DAVID L . S H A N N O N ,

JOHN R . WEIS,

OFFICE OF THE CONTROLLER
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R . PAULEY, Assistant Controller (Finance)
GEORGE E . LIVINGSTON,

DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
DIVISION OF INFORMATION RESOURCES
MANAGEMENT
STEPHEN R . MALPHRUS, Director
MARIANNE M . EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W . RADEBAUGH, JR., Assistant Director
ELIZABETH B . RIGGS, Assistant Director
RICHARD C . STEVENS, Assistant Director




OFFICE OF THE INSPECTOR GENERAL
Inspector General
DONALD L . ROBINSON, Assistant Inspector General
BARRY R . SNYDER, Assistant Inspector General
BRENT L . BOWEN,

A72

Federal Reserve Bulletin • January 1995

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
A L A N GREENSPAN,

Chairman

WILLIAM J. MCDONOUGH,

Vice Chairman

ALAN S. BLINDER

LAWRENCE B . LINDSEY

THOMAS M . HOENIG

THOMAS C . MELZER

MICHAEL H . MOSKOW
SUSAN M . PHILLIPS

EDWARD W . KELLEY, JR.

CATHY E. MINEHAN

JANET L . YELLEN

JOHN P. LAWARE

ALTERNATE MEMBERS
EDWARD G . BOEHNE

ROBERT D . MCTEER

JERRY L . JORDAN

JAMES H . OLTMAN

GARY H . STERN

STAFF
Associate Economist
Associate Economist
FREDERIC S. MISHKIN, Associate Economist
LARRY J. PROMISEL, Associate Economist
CHARLES J. SIEGMAN, Associate Economist
THOMAS D . SIMPSON, Associate Economist
DAVID J. STOCKTON, Associate Economist
SHEILA L. TSCHINKEL, Associate Economist

Secretary and Economist
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
JACK H . BEEBE, Associate Economist
DONALD L. KOHN,

MARVIN S. GOODFRIEND,

NORMAND R.V. BERNARD,

DAVID E. LINDSEY,

JOAN E . LOVETT,

Manager for Domestic Operations, System Open Market Account
Manager for Foreign Operations, System Open Market Account

PETER R . FISHER,

FEDERAL ADVISORY COUNCIL
President
Vice President

RICHARD M . ROSENBERG,
EUGENE A . MILLER,

Seventh District
B. CRAIG, III, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
CHARLES R . HRDLICKA, Eleventh District
RICHARD M . ROSENBERG, Twelfth District

N. CARTER, First District
Second District
ANTHONY P. TERRACCIANO, Third District
FRANK V. CAHOUET, Fourth District
RICHARD G . TILGHMAN, Fifth District
CHARLES E. RICE, Sixth District
MARSHALL

EUGENE A . MILLER,

J. CARTER BACOT,

ANDREW




HERBERT

V.

Secretary Emeritus
Co-Secretary
ANNABLE, Co-Secretary

PROCHNOW,

WILLIAM J. KORSVIK,
JAMES

A74

CONSUMER ADVISORY COUNCIL

JAMES

L. WEST, Tijeras, New Mexico, Chairman

D. BLANKE, St. Paul, Minnesota
Orlando, Florida
MICHAEL FERRY, St. Louis, Missouri
ELIZABETH G . FLORES, Laredo, Texas
NORMA L. FREIBERG, New Orleans, Louisiana
LORI GAY, Los Angeles, California
RONALD HOMER, Boston, Massachusetts
THOMAS L. HOUSTON, Dallas, Texas
DOUGLAS

ALVIN

J.

COWANS,

Durham, North Carolina
Philadelphia, Pennsylvania
REGINALD J. SMITH, Kansas City, Missouri
JOHN E. TAYLOR, Washington, D.C.
LORRAINE VANETTEN, Troy, Michigan
GRACE W. WEINSTEIN, Englewood, New Jersey
LILY K. YAO, Honolulu, Hawaii
ROBERT O . ZDENEK, Greenwich, Connecticut
KATHARINE

ANNE

B.

W.

MCKEE,

SHLAY,

THRIFT INSTITUTIONS ADVISORY COUNCIL

BEATRICE D'AGOSTINO,
CHARLES JOHN KOCH,

Lakewood, Colorado
A. COOPER, Minneapolis, Minnesota
PAUL L. ECKERT, Davenport, Iowa
GEORGE R . GLIGOREA, Sheridan, Wyoming
KERRY KILLINGER, Seattle, Washington
MALCOLM E. COLLIER,

WILLIAM




Somerville, New Jersey, President
Cleveland, Ohio, Vice President

New Bedford, Massachusetts
W. MITCHELL, JR., Winston-Salem, North Carolina
STEPHEN W. PROUGH, Newport Beach, California
STEPHEN D. TAYLOR, Miami, Florida
JOHN M. TIPPETS, DFW Airport, Texas
ROBERT MCCARTER,
NICHOLAS

A74

STAFF STUDIES: Only Summaries Printed in the
BULLETIN
Studies and papers on economic andfinancialsubjects 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, by Stephen

A. Rhoades. February 1992. 11 pp.
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MARKETS, 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

Staff Studies 1-157 are out of print.
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 . 35 pp.
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
1 9 8 0 - 9 0 , by Margaret Hastings Pickering. May 1 9 9 1 .

21 pp.




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 1 9 9 3 . 18 pp.
1 6 6 . THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET,

by Mark Carey, Stephen Prowse, John Rea, and Gregory
Udell. January 1994. I l l pp.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN
BANKING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE "OPERATING PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A . Rhoades. July 1 9 9 4 . 3 7 pp.

A74

Maps of the Federal Reserve System

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.

All

3-C

2-B

1-A

5 _ E Baltimore^

4-D
Pittsburgh

f
Buffalo
NJ

Cbariiig*.
/
^

6-F

.

• Cincinnati
KY

NY

NEW YORK

BOSTON

wv ,

PHILADELPHIA
7-G

'Nashville

RICHMOND

CLEVELAND
8-H

Birmingham
isville

CHICAGO

ATLANTA

ST. LOUIS

9-1

MINNEAPOLIS
12-L

10-J

' A M

Omaha*
J

Denver

MO

ALASKA

Oklahoma City
O
K

KANSAS CITY
11-K

San Antonio {
HAWAD

DALLAS




SAN FRANCISCO

A74

Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Jerome H. Grossman
William C. Brainard

Cathy E. Minehan
Paul M. Connolly

NEW YORK*

10045

Maurice R. Greenberg
David A. Hamburg
Joseph J. Castiglia

William J. McDonough
James H. Oltman

Buffalo

14240

PHILADELPHIA

19105

James M. Mead
Donald J. Kennedy

44101

Jerry L. Jordan
Sandra Pianalto

Cincinnati
Pittsburgh

45201
15230

A. William Reynolds
G. Watts Humphrey, Jr.
John N. Taylor, Jr.
Robert P. Bozzone

RICHMOND*

23219

Henry J. Faison
Claudine B. Malone
Rebecca Hahn Windsor
Harold D. Kingsmore

J. Alfred Broaddus, Jr.
Jimmie R. Monhollon

Leo Benatar
Hugh M. Brown
Shelton E. Allred
Samuel H. Vickers
Dorothy C. Weaver
Paula Lovell
Jo Ann Slaydon

Robert P. Forrestal
Jack Guynn

Robert M. Healey
Richard G. Cline
J. Michael Moore

Michael H. Moskow
William C. Conrad

Robert H. Quenon
John F. McDonnell
Robert D. Nabholz, Jr.
Laura M. Douglas
Sidney Wilson, Jr.

Thomas C. Melzer
James R. Bowen

Gerald A. Rauenhorst
Jean D. Kinsey
Lane Basso

Gary H. Stern
Colleen K. Strand

Herman Cain
A. Drue Jennings
Sandra K. Woods
Ernest L. Holloway
Sheila Griffin

Thomas M. Hoenig
Richard K. Rasdall

Cece Smith
Roger R. Hemminghaus
Alvin T. Johnson
Judy Ley Allen
Erich Wendl

Robert D. McTeer, Jr.
Tony J. Salvaggio

Judith M. Runstad
James A. Vohs
Anita E. Landecker
William A. Hilliard
Gerald R. Sherratt
George F. Russell, Jr.

Robert T. Parry
Patrick K. Barron

Carl W. Turnipseed1

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

Vice President
in charge of branch

Baltimore
21203
Charlotte
28230
Culpeper Communications

Charles A. Cerino1
Harold J. Swart1

Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1

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
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

72203
40232
38101
55480
59601
64198
80217
73125
68102
75201
79999
77252
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Donald E. Nelson 1
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. Scott1
David J. France
Harold L. Shewmaker

Sammie C.Clay
Robert Smith, III1
James L. Stull1

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.