Full text of Federal Reserve Bulletin : January 1995
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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 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 Loans to insiders divided by assets Dividends 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 not significantly improve estimates of the probability of failure.10 Estimating the Historical Relationship between Call Report Data and CAMEL Ratings 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 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 Income per capita Personal income divided by labor force, 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 Investment securities Better UBSS asset growth percentile score Worse UBSS composite percentile score Worse Prior management rating Worse Prior composite CAMEL rating 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 Aug. Sept. 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 Market group 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 1990 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 1994 1990 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 Difference between revised and earlier growth rates (percentage points) Revised rate of growth1 (percent) 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 Total index 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 1991 1992 1993 1994 1990 -.2 .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 1990 -1.2 .2 Manufacturing Durable manufacturing Lumber and products Furniture and fixtures Stone, clay, and glass products Difference between revised and earlier growth rates (percentage points) Revised rate of growth2 (percent) SIC group1 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 Capacity " " ~,—-——^^ Ratio scale, 1987 production = 100 140 — Manufacturing 120 - — Capacity —— - 100 Production 100 Production 80 I I I 1 1 1 1 80 1 1 1 1 1 1 1 1 1 1 1 Percent of capacity w 1 1 1983 1 1 1 Manufacturing — Utilization 1 1 Percent of capacity Total industry — 1981 140 120 1 1 1985 1 1 1987 1 1 1989 1 1 1991 1 1 1993 1 1995 90 80 80 70 70 1 1981 1 1 1983 1 1 1985 1 1 1987 All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production. 90 Utilization 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 .6 Sept.' NOV.P Nov. 1993 to Nov. 1994 .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 Total 81.9 Low, 1982 71.8 High, 1988-89 84.9 Nov. Aug.r Sept.r Oct. Nov.? 823 84.5 84.3 84.5 84.7 2.7 84.5 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 1994 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) Bank(s) First United Bancshares, Inc., El Dorado, Arkansas First United of Texas, Inc., Texarkana, Texas FirstBank, Texarkana, Texas Effective ^ ^ 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 Reserve classification 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 1994 1991 1992 1993 Dec. 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 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 6 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 1 2 3 4 5 6 7 8 Sept. 5 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 Account Sept. 28 Oct. 5 Wednesday End of month 1994 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 Type of holding and maturity Wednesday End of month 1994 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 3,276.7 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 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. 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 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 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 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 15,891 14,441 13,973 15,022 15,437 15,309 15,819 15,625 15,861 41,299 11,519 30,426 10,080 20,345 159,480 101,339 3,365 97,974 93,811 4,163 26,948 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 35,573 320,245 313,129 314,743 318,578 319,085 315,396 320,204 319,613 317,870 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 13 Margin stocks 14 Convertible bonds 15 Short sales Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 70 50 70 80 60 80 65 50 65 55 50 55 65 50 65 1. 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 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 1993 1994 May 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 8 Debt subject to statutory limit 9 Public debt securities 10 Other debt1 MEMO 11 Statutory debt limit 3,973 4,086 4,140 4,256 4,316 4,446 4,491 4,559 4,605 3,972 0 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 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 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 1990 1992 1993 Q4 Q1 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. 1991 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 8,109 -365 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 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 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 1990 1992 1991 1993 Apr. 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 1 All issues, new and refunding1 1992 1993 Mar. 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 1 AU issues' 2 Bonds2 By type of offering 3 Public, domestic 4 Private placement, domestic3 5 Sold abroad 1991 465,246 389,822 1992 559,827 471,502 1993 Feb. 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 July Aug.r 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 1 Profits with inventory valuation and capital consumption adjustment 2 Profits before taxes 3 Profits-tax liability 4 Profits after taxes 5 Dividends 6 Undistributed profits 7 Inventory valuation 8 Capital consumption adjustment 1992 1994 1993 1992 Account 1993 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 390.3 365.2 131.1 234.1 160.0 74.1 405.1 395.9 139.7 256.2 171.1 85.1 485.8 462.4 173.2 289.2 191.7 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 -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/ May June 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' May Apr. June 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 June July Aug. Sept. 8.41 13.33 12.04 16.25 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 Ql Q2 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 Data in this table also appear in the Board's Z.l (780) quarterly statistical release, Digitized for1.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 coce ML 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 60 Manufacturing 61 Primary processing 62 Advanced processing 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 34 100.0 110.9 111.9 112.8 114.0 114.6 115.0 115.9 116.0 116.6 117.5 117.8 118.7 118.6 119.4 84.3 27.1 57.1 111.7 107.6 113.7 112.9 108.5 115.0 114.0 109.9 116.0 115.4 111.3 117.4 115.6 110.7 117.9 116.1 110.0 119.0 117.2 111.4 119.9 117.7 112.3 120.2 118.5 113.8 120.7 118.9 113.4 121.5 119.5 113.5 122.3 120.7 114.7 123.5 120.6 114.6 123.5 121.7 115.8 124.5 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 1993 1994 Oct. Oct. Change from 3 months earlier (annual rate) 1993 1994 Dec. r Change from 1 month earlier Index level, Oct. 1994 19941 Mar/ June Sept/ June July Aug. Sept. Oct. J2 CONSUMER PRICES2 (1982-84=100) 1 Ail items 2.8 2.6 3.3 IS 2.5 3.6 J 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 LESS: Personal contributions for social insurance 18 EQUALS: Personal income 236.2 248.7 261.3 263.8 266.6 276.3 279.9 282.8 4,860.3 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 1 Total 2 Gold stock, including Exchange Stabilization Fund1 3 Special drawing rights^3 4 Reserve position in International Monetary Fund 5 Foreign currencies4 1991 1992 1993 May June July Aug. Sept. Oct.p 77,719 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 Apr. 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 1 Total1 2 3 4 5 6 7 8 9 10 11 12 By type Liabilities reported by banks in the United States U.S. Treasury bills and certificates3 U.S. Treasury bonds and notes Marketable Nonmarketable4 U.S. securities other than U.S. Treasury securities5 By area Europe' Canada Latin America and Caribbean Asia Africa Other countries 1993 Apr. May June July Aug/ Sept.p 412,624 482,808 493,152 479,215 488,161 501,827r 516,419 517,852 518,795 54,967 104,596 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 3,306 206,921 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 Mar. 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 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 1991 75,129 73,195 26,192 47,003 3,398 1994 1992 72,796 62,799 24,240 38,559 4,432 Sept. 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. 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 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 June 1,605,709' 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 49,209 12,579 37,125 31,474 17,155 20,340 23,031 12,939 13,132 13,636 13,440 13,599 8,974 8,655 7,871 7,564 8,031 43,024 36,213 22,854 22,085 July Aug. 468,837 21,926 283,840 100,484 50,756 49,728 62,587 478,476 22,788 286,939 102,270 49,719 52,551 66,479 22,238 21,751 Sept.p 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 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 1990 1994 1992 Sept. Dec. 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. 1991 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. 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Making Sense of Savings SHOP: The Card You Pick Can Save You Money When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit 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 June July 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 8 Italy 1991 5.86 11.47 9.07 9.15 8.01 9.19 9.49 12.04 9.30 7.33 1992 3.70 9.56 6.76 9.42 7.67 9.25 10.14 13.91 9.31 4.39 1993 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. May 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 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 1991 1992 1993 June 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 federal, 29 also Credit unions and Savings and Thriftreceipts, 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 OK 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 Edward G. Boehne William H. Stone, Jr. CLEVELAND* 44101 Jerry L. Jordan Sandra Pianalto Cincinnati Pittsburgh 45201 15230 A. William Reynolds G. Watts Humphrey, Jr. 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 Baltimore 21203 Charlotte 28230 Culpeper Communications Vice President in charge of branch Carl W. Turnipseed1 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.