Full text of Federal Reserve Bulletin : January 2000

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Volume 86 • Number 1 • January 2000

Federal Reserve

BULLETIN

Board of Governors of the Federal Reserve System, Washington, D.C.



Table of Contents
pline, discusses the motivation for and theory
behind a subordinated debt policy, and presents
an extensive summary of existing policy proposals. It then reviews the economic literature on the
potential for SND to exert market discipline on
banks and presents a wide range of new evidence
acquired by the study group. The third major
section of the study analyzes many characteristics
that an SND policy could have, in terms of both
their contribution to market discipline and their
operational feasibility.

L RECENT CHANGES IN U.S. FAMILY
FINANCES: RESULTS FROM THE 1998
SURVEY OF CONSUMER FINANCES

Using data from the Federal Reserve Board's two
most recent Surveys of Consumer Finances, this
article provides a detailed picture of changes in
the financial condition of U.S. families between
1995 and 1998.
The financial situation of families changed notably in the three-year period. While income continued a moderate upward trend, net worth grew
strongly, and the increase in net worth was
broadly shared by different demographic groups.
A booming stock market accounts for a substantial part of the rise in net worth, but the data also
suggest that improvements in financial circumstances extended to many families that did not
own stocks.
The indebtedness of families grew, but less
rapidly than their assets. Nonetheless, compared
with 1995, debt repayments in 1998 accounted
for a larger share of the income of the typical
family with debt, and the proportion of debtors
who were late with their payments by sixty days
or more in the year preceding the survey was also
higher.
30 STAFF STUDY

Industrial production advanced 0.3 percent in
November, to 139.5 percent of its 1992 average,
after a 0.8 percent increase in October. The rate
of capacity utilization for total industry was
unchanged at 81.0 percent, a level 1 percentage
point below its 1967-98 average.
35 STATEMENT TO THE CONGRESS

Richard A. Small, Assistant Director, Division of
Banking Supervision and Regulation, discusses
the Federal Reserve's role in the government's
efforts to detect and deter money laundering and
other financial crimes, particularly as these issues
relate to the private banking operations of financial institutions; he states that the Board will
continue its cooperative efforts with other bank
supervisors and the law enforcement community to develop and implement effective antimoney-laundering programs addressing the everchanging strategies of criminals who attempt to
launder their illicit funds through private banking
organizations, as well as through other components of banking organizations in the United
States and abroad (Testimony before the Permanent Subcommittee on Investigations of the Senate Committee on Governmental Affairs, November 10, 1999).

SUMMARY

A growing number of observers have proposed
using subordinated notes and debentures (SND)
as a way of increasing market discipline on banks
and banking organizations. Although policy proposals vary, all would mandate that banks subject
to the policy must issue and maintain a minimum
amount of SND. In recent years, the perceived
need for more market discipline has derived primarily from the realization that the increasing
size and complexity of the major banking organizations has made the supervisor's job of protecting bank safety and soundness ever more difficult. A second important motivation is the desire
to find market-based ways of better insulating the
banking system from systemic risk. A Federal
Reserve staff study of these issues, Using Subordinated Debt as an Instrument of Market Discipline, begins by carefully defining market disci


32 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR NOVEMBER 1999

40

ANNOUNCEMENTS

Action by the Federal Open Market Committee
and an increase in the discount rate.

Modifications to the settlement finality for automated clearinghouse credit transactions processed
by Federal Reserve Banks.
Adjustment of the dollar amount that triggers
certain disclosure requirements under the Truth in
Lending Act.
Proposed revisions to the official staff commentary that applies and interprets the requirements
of Regulation Z.
Review of publications activities of the Federal
Reserve Board.
Survey results on consumer confidence in banks'
Y2K preparations.

51 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 26, 1999.
A3 GUIDE TO TABULAR

PRESENTATION

A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics

Release of a report on a survey of web site
privacy policies of banking and thrift institutions.

A63 GUIDE TO STATISTICAL
SPECIAL TABLES

RELEASES

Increase in adversely classified syndicated bank
loans.

A66 INDEX TO STATISTICAL

TABLES

Enforcement actions.

A68 BOARD OF GOVERNORS AND

44 MINUTES OF THE MEETING OF THE
FEDERAL OPEN MARKET
COMMITTEE
HELD ON OCTOBER 5, 1999

At this meeting, the Committee adopted a directive that called for maintaining the federal funds
rate at an average of around 5XA percent and that
contained a bias toward a possible firming of
policy during the intermeeting period.




AND

STAFF

A70 FEDERAL OPEN MARKET COMMITTEE
STAFF; ADVISORY
COUNCILS
A72 FEDERAL RESERVE BOARD

PUBLICATIONS

A74 MAPS OF THE FEDERAL RESERVE
A76 FEDERAL RESERVE BANKS,
AND OFFICES

AND

SYSTEM

BRANCHES,

PUBLICATIONS COMMITTEE

Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus
• J. Virgil Mattingly, Jr. • Michael J. Prell • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens

The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Multimedia Technologies Center
under the direction of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.




Recent Changes in U.S. Family Finances:
Results from the 1998 Survey of Consumer Finances
Arthur B. Kennickell, Martha Starr-McCluer, and
Brian J. Surette, of the Board's Division of Research
and Statistics, prepared this article with assistance
from Gerhard Fries, Annelise K. Li, and Amber Lynn
Lytle.
Using data from the Federal Reserve Board's two
most recent Surveys of Consumer Finances, this
article provides a detailed picture of changes in the
financial condition of U.S. families between 1995 and
1998. The discussion also refers to selected data from
the two preceding surveys to provide a broader
context within which to interpret the more recent
changes.1
The financial situation of families changed notably
between 1995 and 1998. While income continued a
moderate upward trend, net worth grew strongly, and
the increase in net worth was broadly shared by
different demographic groups. A continued rise in
the holding of stock equity combined with a booming
stock market accounts for a substantial part of the rise
in net worth. The 3.5 percentage point decline in the
proportion of families without some type of transaction account—a group that tends to have low
incomes—suggests that improvements in financial
circumstances were also shared by many people who
did not own stocks. The indebtedness of families
grew, but less rapidly than their assets. Nonetheless,
compared with 1995, debt repayments in 1998
accounted for a larger share of the income of the
typical family with debt, and the proportion of debtors who were late with their payments by sixty days
or more in the year preceding the survey was also
higher.

1. The four surveys were conducted in 1989, 1992, 1995, and 1998.
For a detailed discussion of results from earlier surveys, see Arthur B.
Kennickell and Martha Starr-McCluer, "Changes in Family Finances
from 1989 to 1992: Evidence from the Survey of Consumer
Finances," Federal Reserve Bulletin, vol. 80 (October 1994),
pp. 861-82; and Arthur B. Kennickell, Martha Starr-McCluer, and
Annika E. Sunden, "Family Finances in the U.S.: Recent
Evidence from the Survey of Consumer Finances," Federal
Reserve Bulletin, vol. 83 (January 1997), pp. 1-24. Tabulations of
data from the four surveys will be available on the Internet at
www.federalreserve.gov/pubs/oss/oss2/98/scf98home.html.




BACKGROUND

In 1998, the U.S. economy entered the seventh year
of an economic expansion. The civilian unemployment rate had fallen from 5.7 percent in September
1995 to 4.5 percent in September 1998. At the same
time, inflation remained subdued, with the consumer
price index rising at an average annual rate of 2.2 percent over the period.2
Interest rates on deposits remained fairly steady.
Mortgage rates fluctuated over the period but
declined overall, from 7.4 percent in 1995 to 6.9 percent in 1998. Over the same period, key asset prices
rose markedly. Standard and Poor's index of 500
stock prices registered an extraordinary gain of
76 percent, and the median price of existing homes
sold rose 15 percent, to $129,400.
Institutional, regulatory, and market changes during this time altered the context in which families
planned their finances. Employers continued to
expand offerings of tax-deferred retirement accounts
for their workers; new means of stock trading
emerged, such as Internet-based brokerage services;
automobile dealers added less-expensive models to
the range of vehicles available for leasing; lenders
became increasingly willing to accept mortgages with
very low down payments; and many banks faced
increased regulatory pressure to provide equitable
access to credit.3
Ongoing demographic trends continued to change
the structure of the population. Overall population
growth was about 2.8 percent between 1995 and
1998. With the aging of the "baby boom" population, the number of people aged 45 to 64 grew about
9.5 percent. The population in some other age groups
grew less, and the number of children aged less than
5 declined slightly. The number of households rose

2. All aggregate statistics cited in this section are for September
except as noted; September is the midpoint of the period during which
interviews were conducted.
3. For an examination of the wider availability of mortgage credit
over this period, see Glenn B. Canner, Wayne Passmore, and Elizabeth Laderman, "The Role of Specialized Lenders in Extending
Mortgages to Lower-Income and Minority Households," Federal
Reserve Bulletin, vol. 85 (November 1999), pp. 709-23.

2

Federal Reserve Bulletin • January 2000

3.5 percent, while the average number of people per
household declined somewhat.

FAMILY

INCOME

To measure income, the survey requests information
on families' total cash income, before taxes, for the
full calendar year preceding the interview (see box
"The Survey of Consumer Finances"). In the 1998
survey, inflation-adjusted mean and median family
incomes continued the upward trend observed
between the 1992 and 1995 surveys; they also sur-

passed the levels observed in the 1989 survey, toward
the end of the previous economic expansion (table 1).
Overall, trends in mean and median income shown in
the four surveys accord well with those shown in the
Current Population Survey (CPS) of the Bureau of
the Census.
From 1995 to 1998, the proportion of families with
incomes of $50,000 or more rose about one-fifth, to
33.8 percent, while the proportion with incomes
below $10,000 fell about one-sixth, to 12.6 percent.
Some cross-sectional patterns hold consistently in
the survey data since 1989. Median income is successively higher for each age group through 45-54 and

The Survey of Consumer Finances
The Survey of Consumer Finances (SCF) is a triennial
survey of U.S. families sponsored by the Board of Governors of the Federal Reserve System with the cooperation
of the U.S. Department of the Treasury. The term "family"
as it is used here is more comparable to the U.S. Bureau
of the Census definition of "household" than to their use
of "family," which excludes the possibility of a family of
one individual. The appendix to this article provides a full
technical definition of "family" for the SCF. The survey is
designed to provide detailed information on U.S. families'
balance sheets and their use of financial services, as well as
on their pensions, labor force participation, and demographic characteristics as of the time of the interview. It
also collects information on families' total cash income,
before taxes, for the calendar year preceding the survey.
Because only minor changes have been made in the wording of the questionnaire since 1989, the underlying measurements are highly comparable over time.
The need to measure financial characteristics imposes
special requirements on the sample design for the survey.
The survey is expected to provide reliable information both
on attributes that are broadly distributed in the population—
for example, home ownership—and on those that are highly
concentrated in a relatively small part of the population—
for example, ownership of closely held businesses. To
address this requirement, the SCF employs a dual-frame
sample design consisting of both a standard, geographically
based random sample and a special oversample of relatively wealthy families. This design has been essentially
unchanged since 1989. Weights are used to combine information from the two samples to make estimates for the
full population. Recent modifications to the survey weights,
which are described in the appendix, have enhanced the
comparability of the time series of survey estimates.
This article draws principally upon the final data from the
1995 survey and nearly final data from the 1998 survey. To
provide a larger context, some information is also included
from the final versions of the 1989 and 1992 surveys.
Differences between estimates from earlier surveys as




reported here and as reported in earlier Federal Reserve
Bulletin articles are attributable to additional statistical
processing of the data, to revisions of the weights, and to
adjustments for inflation. Since 1992, the SCF has been
conducted by the National Opinion Research Center at the
University of Chicago (NORC) between July and December of each survey year. The 1989 SCF was conducted by
the Survey Research Center at the University of Michigan.
In the 1995 survey, 4,299 families were interviewed, and in
the 1998 survey, 4,309 were interviewed.
All dollar figures from the SCF in this article are adjusted
to 1998 dollars using the "current methods" version of the
consumer price index (CPI) for all urban consumers.1 In an
ongoing effort to improve accuracy, the Bureau of Labor
Statistics has introduced a number of revisions to the CPI
methodology. The current-methods index attempts to extend
these changes to earlier years to obtain a series as consistent
as possible with the current practices in the official CPI.
Because the current-methods index shows a lower rate of
past price inflation than does the official CPI, upward adjustments for inflation made to the pre-1998 nominal values
are smaller than they would have been under the official
CPI.
To provide a measure of the significance of the developments discussed in this article, standard errors due to sampling are given for selected estimates. Space limits prevented the inclusion of the standard errors for all estimates.
Although we do not directly address the statistical significance of the results, the article highlights findings that are
significant or are interesting in a broader context.

1. For technical information about the construction of this index, see
Kenneth J. Stewart and Stephen B. Reed, "Consumer Price Index Research
Series Using Current Methods, 1978-98," Monthly Labor Review, vol. 122
(June 1999), pp. 29-38. To adjust assets and liabilities to 1998 dollars, the
following factors were applied to the earlier survey figures: for 1989, 1.2733;
for 1992, 1.1417; and for 1995, 1.0622. To adjust family income for the
previous calendar year to 1998 dollars, the following factors were applied:
for 1989. 1.3285; for 1992, 1.1697; for 1995, 1.0904; and for 1998. 1.0135.

Results from the 1998 Survey of Consumer Finances

then declines. Mean income has a similar pattern,
but the age group at which it reaches its peak varies
somewhat across survey years. In part because
income in the survey includes returns on assets, mean
and median incomes increase steadily with net worth.
Education is also positively associated with income
in the surveys.
Income by Demographic

Category

3

largely explained by a decrease in the fraction of
respondents reporting themselves as "Hispanic" in
the SCF.
Families headed by the self-employed showed the
strongest gains in mean and median income of all the
work-status groups over the 1995 to 1998 period. At
the same time, mean income rose in all regions of the
country, although the median fell slightly for families
in the north central region. Mean income increased
over this time for all the net worth groups shown in
the table, but the median increased markedly only for
families in the top half of the net worth distribution.

Between 1995 and 1998, mean inflation-adjusted
family income either held steady or rose for all age
groups. The percentage increases were particularly
strong for families headed by those in the 55-to-74
age groups. Median income, which is the income
of the "typical" family, showed a similar pattern,
but it also grew substantially for the 45-to-54 age
group.
Across education groups, mean income grew
between 1995 and 1998 only for families headed by
individuals with at least some college education.
However, mean incomes for all education groups
in 1998 were lower than they had been in 1989.4
This broad decrease in the face of the rise in the
overall mean since 1989 is explained, at least in part,
by a large gain in the proportion of all families
headed by those with a college degree or at least
some college education; these two groups have the
highest means. Indeed, median income between
1989 and 1998 rose appreciably only for families
headed by college graduates. Between 1995 and
1998, median income grew for all families except
those whose head had not completed a high school
degree.
Mean and median income rose between 1995 and
1998 both for families with white non-Hispanic
respondents and for all other families, but over the
1989 to 1998 interval these measures increased only
for the latter group. At the same time, the data show
increases in the proportions of respondents reporting
that they were white non-Hispanic.5 The change is

Because saving out of current income is an important
determinant of changes in family net worth, the 1992
and later surveys have asked respondents whether,
over the preceding year, the family spent less than its
income, more than its income, or about as much as its
income.6 Though only qualitative, these answers provide a useful indicator of whether families are saving.
Asking instead for a specific dollar amount of spending or saving would require substantial additional
time from respondents and might lower the rate of
response to the survey.
Overall, the proportion of families reporting that
they saved in the preceding year rose only slightly
between 1995 and 1998 and was still below the level
in 1992, near the outset of the current expansion.
Between the two most recent surveys, large declines
in the saving measure for the youngest and oldest
groups were offset by increases for most of the other
age groups. Across net worth groups, the measure
increased most for the groups with net worth between
the 50th and 90th percentiles of the net worth distribution, and it decreased most for the top decile.
The upward movement in the SCF saving indicator
contrasts with household saving as measured in the
national income and product accounts (NIPA), which
declined between 1995 and 1998. However, there are

4. Data from the CPS give a similar result for the 1989-98 period.
5. The SCF question that is used to determine race and Hispanic
origin was changed in 1998. In earlier surveys, respondents were
asked to choose a single category that described their race or ethnicity
best. In 1998, respondents were allowed to choose as many as seven
responses, but they were asked to report first the category with which
they identified most strongly.
For comparability with the earlier surveys, this article uses only the
first 1998 response. Very few respondents gave more than a single
response, and more complex treatments of the data do not yield
conclusions that are substantively different from those reported in this
article.

The proportion of respondents reporting Hispanic origin differs
from estimates based on the CPS, most likely because the CPS asks
directly about ethnicity in a question separate from the one that asks
about race. Thus, in the CPS, even respondents who do not normally
identify themselves as Hispanic might provide an ethnic origin that is
later classified as Hispanic. The 1998 SCF estimates of the proportion
of African-Americans and other minorities are close to CPS estimates.
6. For a more detailed discussion of this variable, see Arthur B.
Kennickell, Saving and Permanent Income, Finance and Economics
Discussion Series 95—41 (Board of Governors of the Federal Reserve
System, November 1995). Available at www.federalreserve.gov/pubs/
oss/oss2/method.html.




Family Saving

4

Federal Reserve Bulletin • January 2000

1. Before-tax family income, and distribution of families, by selected characteristics of families, 1989, 1992, 1995, and 1998
surveys, and percentage of families who saved, 1992, 1995, and 1998 surveys
Thousands of 1998 dollars except as noted
1989
Family
characteristic

1992
Percentage
of
families
who saved

Percentage
of
families

45.6
(LI)

57.1

100.0

6.5
17.5
36.3
65.7
140.4

6.2
17.2
36.7
68.8
195.5

27.9
47.8
63.3
71.4
83.3

14.8
27.0
29.8
20.7
7.6

28.1
21.5
15.1
13.9
12.5
8.9

28.1
40.9
47.6
33.9
20.4
15.7

34.6
53.2
64.7
56.5
33.0
26.6

59.1
56.9
59.0
59.2
54.0
49.4

25.8
22.8
16.2
13.2
12.6
9.4

24.8
38.1
51.8
90.7

24.3
32.2
15.7
27.8

14.0
27.2
31.6
51.5

19.9
34.3
42.2
74.7

38.1
56.8
59.5
68.1

20.4
30.0
17.8
31.9

38.5
18.6

59.2
29.3

74.8
25.2

35.1
21.1

50.4
31.1

61.1
44.9

75.3
24.7

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

40.9
47.8
18.5
9.3

52.2
117.6
30.3
17.9

57.0
11.1
25.2
6.7

39.3
51.2
17.3
12.9

50.0
86.8
26.1
23.9

63.2
59.4
48.2
41.3

54.8
10.9
26.0
8.3

Region
Northeast
North central
South
West

37.2
31.8
27.9
38.5

59.3
53.9
44.1
54.0

20.8
24.4
34.4
20.4

37.9
33.0
26.9
30.2

52.8
47.1
38.8
48.4

57.5
61.3
54.2
56.4

20.2
24.4
34.6
20.9

Housing status
Owner
Renter or other

42.5
17.5

65.0
28.0

63.9
36.1

39.8
19.5

55.9
27.5

63.2
46.2

63.9
36.1

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

13.3
28.0
40.2
53.1
99.6

18.6
32.0
46.0
64.7
178.0

25.0
25.0
25.0
15.0
10.0

14.9
27.8
37.4
49.1
92.3

19.8
31.5
41.7
58.0
137.0

37.4
52.4
63.5
70.8
81.0

25.0
25.0
25.0
15.0
10.0

Percentage
of
families

Median

Mean

32.8
(1.3)

51.7
(3.6)

100.0

6.6
16.5
35.9
66.4
144.8

6.3
16.9
36.2
68.9
235.0

15.1
23.9
29.7
22.7
8.6

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

26.6
46.5
49.2
33.6
20.6
17.6

35.5
62.9
76.8
60.7
42.2
32.2

Education of head
No high school diploma
High school diploma
Some college
College degree

17.3
28.8
37.2
53.1

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25.000-49,999
50,000-99,999
100,000 or more

some important conceptual differences between the
two measures. First, the underlying SCF question
asks only whether the family has spent more, less, or
about the same as its income over the past year. Thus,
the amounts by which families' expenditures differed
from their income might have changed appreciably
but without necessarily altering the outcome of the
SCF variable. Second, the NIPA measure of saving
relies on definitions of income and consumption that
may not be the same as those used by individual
families. Notably, the NIPA measure excludes saving
in the form of capital gains, whereas families might
include such gains when reporting their saving in the
SCF; hence, a strongly rising stock market could well



Median

Mean

30.4
(.7)

have caused the SCF saving indicator to suggest
more saving than the NIPA.
The survey also collects information on motivations for saving (table 2).7 Several trends appear in
the data: Retirement-related reasons for saving have
consistently increased in importance since 1989. This
result is not surprising given the increased public

7. Although families were asked to report their motives for saving
regardless of whether they were currently saving, some families
reported only that they do not save. The analysis here is confined to
the first reason reported by families that provided a motive. The
proportion of families reporting only that they do not save declined
almost 2 percentage points from 1995 to 1998.

Results from the 1998 Survey of Consumer Finances

5

1.—Continued
Thousands of 1998 dollars except as noted
1995
Family
characteristic

1998
Percentage
of
families
who saved

Percentage
of
families

55.9

100.0

5.6
17.1
35.9
68.8
239.5

30.7
40.2
58.9
71.8
81.6

12.6
24.8
28.8
25.2
8.6

27.4
42.1
50.7
38.5
24.3
16.7

36.1
60.0
69.7
71.7
46.6
29.2

53.0
57.3
57.8
61.1
56.3
48.6

23.3
23.3
19.2
12.8
11.2
10.2

18.5
31.7
19.0
30.7

15.5
29.2
35.5
54.7

21.7
37.0
50.8
85.5

39.5
53.7
56.7
65.6

16.5
31.9
18.5
33.2

59.1
41.7

77.6
22.4

37.7
23.3

58.8
33.5

59.8
42.1

77.7
22.3

51.5
85.0
29.7
19.8

60.4
63.4
46.1
30.6

58.3
10.3
25.0
6.5

40.5
52.7
19.3
11.7

53.5
109.0
32.9
21.9

59.8
61.1
48.6
33.7

59.2
11.3
24.4
5.1

32.7
33.3
30.2
33.8

52.4
48.4
43.9
47.7

52.6
59.2
54.6
54.0

19.8
23.9
35.1
21.2

35.5
32.9
31.6
36.2

60.9
48.9
49.4
56.9

53.5
58.3
55.0
56.9

19.3
23.6
35.7
21.3

Housing status
Owner
Renter or other

40.3
19.6

58.8
26.7

61.3
44.0

64.7
35.3

43.7
20.3

66.6
26.7

62.2
43.4

66.2
33.8

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

15.4
30.5
37.7
45.8
85.6

19.8
33.3
43.3
56.3
149.0

35.8
51.4
59.4
68.5
82.6

25.0
25.0
25.0
15.0
10.0

15.9
30.4
40.5
56.8
88.3

20.4
33.8
46.7
67.9
177.2

36.4
50.1
61.9
71.8
80.2

25.0
25.0
25.0
15.0
10.0

Percentage
of
families
who saved

Percentage
of
families

47.5
(LI)

55.2

6.2
17.9
36.8
67.6
147.9

5.6
17.4
36.7
69.3
218.9

Age of head (years)
Less than 35
35-^4
45-54
55-64
65-74
75 or more

27.3
40.8
42.9
36.0
20.5
17.1

Education of head
No high school diploma
High school diploma
Some college
College degree

Median

Mean

100.0

33.4
(1.0)

53.1
(1.6)

31.2
41.4
60.4
70.4
86.5

15.1
25.4
31.0
21.0
7.4

6.2
16.9
35.5
66.0
142.4

33.2
51.9
70.3
57.3
39.8
28.2

56.4
54.3
58.0
58.0
50.0
51.7

24.8
23.0
17.9
12.5
12.0
9.8

15.5
27.7
32.7
48.7

22.3
37.2
43.2
75.9

42.8
50.6
54.1
68.2

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

35.2
21.1

52.2
31.1

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

39.3
40.3
17.9
12.0

Region
Northeast
North central
South
West

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 and more

Median

Mean

32.7
(-9)

NOTE. In this and the following tables, percentage distributions may not sum
to 100 because of rounding. Dollars have been converted to 1998 values with
the current-methods consumer price index for all urban consumers (see text box
"The Survey of Consumer Finances"). See appendix for details on standard
errors (shown above, in parentheses in the first row of data, for the means and
medians) and for definitions of family and family head.

In providing data on income, respondents were asked to base their answers on
the calendar year preceding the interview. In providing data on saving,
respondents were asked to base their answers on the year (that is, not specifically the calendar year) preceding the interview. The 1989 survey did not ask
•amilies whether they had saved in the preceding year.

discussion of the future of social security, the movement toward greater reliance on account-type pension
plans, and the aging of the baby-boom generation.
The proportion of families reporting educationrelated reasons for saving has also risen since 1989.
This result likely reflects both the increases in the
costs of education and the increasing number of
children of the baby-boom generation at or near
college age. Over the same period, the reporting of

liquidity-related reasons (for example, "saving for
a rainy day") and of investment-related reasons
declined.8




8. The proportion of families citing "other reasons" increased
strongly from 1995 to 1998, mostly because of a greater frequency of
general responses about the future (for example, "saving for the
future").

6

Federal Reserve Bulletin • January 2000

2. For respondents who gave a reason, distribution
of reasons most important for their families' saving,
1989, 1992, 1995, and 1998 surveys
Percent
Reason
Education
For the family
Buying own home
Purchases
Retirement
Liquidity
Investments
Other

1989

1992

1995

1998

9.2
3.4
5.3
8.4
20.4
37.5
8.7
7.0

10.3
3.0
4.5
5.8
22.0
38.5
8.7
7.1

11.6
2.8
5.5
8.1
25.5
35.4
4.6
6.6

11.5
4.1
4.6
5.7
34.7
23.2
2.1
14.1

8.4

12.0

6.8

4.9

MEMO

When asked for a reason,
reported do not save
NOTE. See note to table 1.

NET WORTH

In an acceleration of a trend dating from the 1992
SCF, both mean and median net worth—the difference between families' gross assets and their
liabilities—rose strongly between 1995 and 1998
(table 3).9 Between those two years, mean net worth
rose 25.7 percent, and the median rose 17.6 percent.10
The levels of both of these measures surpassed the
levels observed in 1989, toward the end of the last
expansion: Compared with the 1989 figures, 1998
mean and median net worth were both nearly 20 percent higher.

Net Worth by Demographic

Category

Income and net worth have a clear, positive association in each of the four surveys. As for changes
between years, mean net worth declined between
1995 and 1998 for the lowest income group and
increased for all other income groups; the strongest
gain was for families with incomes of $100,000 or
more, a group likely to have had large gains in the
stock market. Extending the comparison back to 1989
also shows substantial increases in mean net worth
for higher-income families, but it shows an increase
of nearly one-third for the group with incomes below
$10,000.

9. The asset values reported in this article do not account for future
tax liabilities. For example, a family that sold its stock would be
required to pay taxes on any increase in the value of the stock.
10. Shifts of mean net worth relative to the median provide some
information about changes in the concentration of net worth. But the
shift alone does not reveal which net worth groups are affected (see
Arthur B. Kennickell and R. Louise Woodburn, "Consistent Weight
Design for the 1989, 1992, and 1995 SCFs, and the Distribution
of Wealth," Review of Income and Wealth, series 42, June 1999,
pp. 193-215).




The medians for the income groups show a somewhat different pattern than the means. Median net
worth increased from 1995 to 1998 for those families
in the groups with incomes from $25,000 to $99,999,
while slipping somewhat for the other groups. However, compared with the 1989 data, median net worth
was higher in 1998 for all families except those with
incomes of $100,000 or more. The divergence of the
mean and median outcomes for this income group is
indicative of a widening dispersion of net worth
among the families in this group.
Within any of the surveys, net worth shows the
classic, hump-shaped pattern across age groups that
is suggested by the life-cycle theory of household
saving. In contrast to the mixed changes in net worth
over income groups from 1995 to 1998, the changes
in means and medians across age groups tended to go
in the same direction: Mean net worth rose for all
groups, and the median increased for all groups
except for families in the less-than-35 age group. The
medians rose particularly strongly for the families in
the 65-and-older groups. By 1998, mean net worth
for each age group was above its 1989 level. However, for the under-55 groups, the medians of net
worth were still substantially below their 1989 levels,
while the medians for the top two age groups were up
notably.
Education tends to be a good predictor of earning
ability over the long term, and also of net worth.
Recently, the differences in net worth among certain
education groups have widened. Over the 1995-98
period, median net worth rose most markedly for
families headed by someone with at least some college education, while it fell for families headed by
those with less than a high school diploma; indeed,
for the latter group, the median has fallen over the
period of the four surveys. Since 1989, the gap
between families whose head does not have a high
school diploma and the families in the other education groups has been widening; the groups with
a high school diploma or some college (but not a
college degree) have gained the most.
The mean and median net worth of white nonHispanics rose between 1995 and 1998. The mean
net worth of nonwhites and Hispanics also rose, but
the median leveled off after increasing steadily
between 1989 and 1995. Over the full 1989-98
period, both groups showed gains in the mean and the
median. Nevertheless, the net worth of families with
nonwhite or Hispanic respondents remained substantially below that of other families.
Families headed by the self-employed had the
highest mean and median levels of net worth in each
of the surveys. The self-employed group showed the

Results from the 1998 Survey of Consumer Finances

largest increases in net worth between 1995 and
1998: 24.0 percent for the mean and 49.9 percent for
the median. The median net worth of all the workstatus groups grew from 1989 to 1998, although from
1995 to 1998 it declined a small amount for families
with heads who were neither working nor retired—
including unemployed workers, students, homemakers, and others not currently working for pay.
Across the four principal regions of the country,
the mean and median net worth of families increased
from 1995 to 1998. However, the longer-term patterns are more mixed, reflecting such factors as differing cyclical variations in labor and housing markets
across regions.
Mean and median net worth of homeowners moved
up between 1995 and 1998, surpassing the 1989
levels for the first time since that year. For renters,
mean and median net worth slipped a bit over the
recent three-year period. Over the nine-year period,

the mean net worth of renters declined about 10 percent, while their median net worth rose about 68 percent from a very low initial level. As noted later
in this article, the proportion of homeowners has
increased notably in recent years, and this movement
may have entailed the transition of wealthier renters
into home ownership.

ASSETS
Over the four surveys, the share of financial assets in
families' total asset holdings has risen steadily, from
30.4 percent in 1989 to 40.6 percent in 1998 (table 4).
Ownership and holdings of a broad spectrum of
financial assets rose, but direct and indirect holdings
of stocks were the most important factor in the rising
share of financial assets (tables 5 and 6). By definition, the share of nonfinancial assets—mainly vehi-

3. Family net worth, by selected characteristics of families, 1989, 1992, 1995, and 1998 surveys
Thousands of 1998 dollars
Family
characteristic
All families

1989
Median
59.7
(5.2)

1992
Mean
236.9
(50.1)

Median
56.5
(3.3)

1995
Mean
212.7
(13.8)

Median
60.9
(2.4)

1998
Mean
224.8
(14.9)

Median
71.6
(4.1)

Mean
282.5
(16.4)

Income (1998 dollars)
Less than 10.000
10,000-24.999
25,000-49,999
50,000-99.999
100,000 or more

1.9
22.8
58.1
131.4
542.1

30.5
72.0
134.2
247.4
1,378.3

2.9
27.1
55.6
129.9
481.9

32.1
69.8
131.4
245.6
1,300.8

4.8
31.0
56.7
126.6
511.4

46.6
80.3
124.0
258.1
1,411.9

3.6
24.8
60.3
152.0
510.8

40.0
85.6
135.4
275.5
1,727.8

Age of head (vears)
Less than 35
35-44
45-54
55-64
65-74
75 or more

9.9
71.8
125.7
124.6
97.1
92.2

60.5
188.2
351.7
391.4
356.0
307.4

10.4
50.9
89.3
130.2
112.3
99.2

53.1
152.7
304.4
384.9
326.1
244.4

12.7
54.9
100.8
122.4
117.9
98.8

47.4
152.8
313.0
404.7
369.3
273.8

9.0
63.4
105.5
127.5
146.5
125.6

65.9
196.2
362.7
530.2
465.5
310.2

Education of head
No high school diploma
High school diploma
Some college
College degree

30.7
46.9
58.5
141.4

106.0
142.0
237.2
460.6

21.3
43.9
65.9
112.1

80.2
127.7
195.8
387.0

24.0
54.7
49.7
110.9

89.6
141.3
201.2
407.2

20.9
53.8
73.9
146.4

79.1
157.8
237.8
528.2

90.5
8.5

289.6
80.6

79.5
13.7

253.5
88.7

81.2
16.8

265.9
82.5

94.9
16.4

334.4
101.7

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

48.3
216.0
84.2
1.0

145.0
829.0
232.5
52.7

44.7
164.7
80.7
4.5

139.6
682.3
214.0
72.2

51.9
165.5
86.2
3.9

145.2
742.0
239.4
62.9

52.4
248.1
113.0
3.6

168.9
919.8
307.2
76.5

Region
Northeast
North central
South
West

111.1
66.9
44.9
58.3

275.1
238.8
167.6
312.6

73.2
65.0
39.4
81.4

240.0
198.0
160.4
290.2

88.0
69.2
46.6
58.1

266.9
210.0
197.6
247.1

94.2
80.3
61.3
61.3

302.4
248.8
267.5
327.1

Housing status
Owner
Renter or other

127.7
2.5

342.6
50.0

112.8
3.7

307.4
45.1

110.5
5.2

321.3
47.9

132.1
4.2

403.5
45.1

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

NOTE. See note to table 1.




7

8

Federal Reserve Bulletin • January 2000

cles, real estate, and businesses—fell correspondingly (table 7).
Overall, the percentage of families with assets
moved up slightly, to 96.8 percent, between the 1995
and 1998 surveys (table 8). With ownership of assets
in both surveys at 100 percent for families with
incomes of $50,000 or more, this movement was the
result of small increases for the lowest income
groups. By age of family head, the ownership rate
declined for the 45-to-54 group and the oldest group.
Increases in median amounts of total assets were
most pronounced for families with incomes of
$50,000 or more, families headed by those aged 55
and older, and families in the top half of the net worth
distribution.

Financial Assets
Largely continuing earlier trends, the composition of
families' financial assets shifted from 1995 to 1998
(table 4). The share of financial assets held in transaction accounts and certificates of deposit fell sharply,
to 15.7 percent in 1998—down from 19.7 percent in
1995 and 29.3 percent in 1989. The shares of savings
bonds, other bonds, and the "other" category of
financial assets have also fallen since 1989. Growth
over the nine-year period was concentrated among
stocks, mutual funds, tax-deferred retirement
accounts, and other managed assets; together these
assets accounted for 48.4 percent of financial assets
in 1989 and 71.3 percent in 1998.
In both the 1995 and 1998 surveys, the proportion
of families having financial assets rose with income;

4.

V a l u e o f financial a s s e t s o f all f a m i l i e s , distributed
b y t y p e o f asset, 1 9 8 9 , 1 9 9 2 , 1 9 9 5 , and 1 9 9 8 s u r v e y s
Percent
Type of financial
asset
Transaction accounts
Certificates of deposit
Savings bonds
Bonds
Stocks
Mutual funds (excluding
money market funds)
Retirement accounts
Cash value of life insurance . . .
Other managed assets
Other
Total

1989

1992

1995

1998

19.1
10.2
1.5
10.2
15.0

17.5
8.1
1.1
8.4
16.5

14.0
5.7
1.3
6.3
15.7

11.4
4.3
0.7
4.3
22.7

5.3
21.5
6.0
6.6
4.8
100

7.7
25.5
6.0
5.4
3.8
100

12.7
27.9
7.2
5.9
3.4
100

12.5
27.5
6.4
8.6
1.7
100

30.4

31.5

36.6

40.6

MEMO

Financial assets as a
percentage of total assets ..

NOTE. For this and following tables, see text for definition of asset
categories. Also see note to table 1.




across age groups, the proportion owning financial
assets does not vary much except for the lower frequency of ownership among the youngest age group
(table 5). Within each survey, the median holding
among families having such assets rose strongly with
income. The median holding generally rose and then
fell with age.
The overall proportion of families having any
financial asset rose almost 2 percentage points from
1995 to 1998. Among all the demographic groups
not already at or near 100 percent, the percentage
of families with financial assets moved up except
among families headed by those aged 75 or more.
The largest increases were among families in the 55to-64 age group, in the nonwhite or Hispanic group,
among the group of families headed by someone
neither working nor retired, among renters, and
among families in the bottom 25 percent of the net
worth distribution.
For families with financial assets, the median holding rose 35.8 percent overall across the three-year
period.11 Gains were spread broadly, but the largest
were among families with incomes of $25,000 or
more, families in the 65-to-74 age group, homeowners, families headed by the self-employed or retirees,
with white non-Hispanic respondents, and those in
the upper half of the distribution of net worth. The
median level of financial assets fell for families with
incomes of less than $25,000, those in the youngerthan-35 group, and those that were renters.

Transaction Accounts and Certificates of Deposit
In 1998, 90.5 percent of families had some type of
transaction account—a category comprising checking, savings, and money market deposit accounts,
money market mutual funds, and call accounts at
brokerages. The families without such accounts in
1998 were disproportionately likely to have low
incomes; to be renters; to be in the bottom quarter of
the distribution of net worth; to be headed by a
person younger than 35 or at least 75; to be headed
by a person neither working nor retired; and to have a
nonwhite or Hispanic respondent (see box "Families
without a Checking Account").

11. In discussing the dollar value of families' holdings of detailed
components of net worth, we present only the median amounts held
for those having such items. In general, the median is a statistically
more robust indicator of the typical amount held than is the mean
when relatively few members of a group hold an item or when a
relatively large fraction of the total holdings is concentrated among a
small proportion of families.

Results from the 1998 Survey of Consumer Finances

9

Families without a Checking Account
The portion of families without any type of transaction
account has fallen in each SCF since 1989. In 1989,
14.9 percent of families did not have a transaction account.
By 1998, the figure was 9.5 percent.1
The portion of families without a checking account also
fell continuously, from 18.7 percent in 1989 to 13.2 percent
in 1998 (data not shown). Among these families in 1998,
47.9 percent had owned a checking account at some time in
the past. The great majority of families without a checking
account—82.6 percent—had incomes of less than $25,000,
and 44.7 percent of them had incomes of less than $10,000;
60.9 percent of them were headed by individuals under the
age of 45, and 35.6 percent of them by those under 35;
57.1 percent of these families were nonwhite or Hispanic.
The survey asked all families without checking accounts
to give the reason for not having an account (table). The
proportion of families reporting that they did not like banks
moved up from 15.3 percent in 1992 to 18.6 percent in
1995, and it stayed near this level in 1998. The proportion
of families reporting that they did not write enough checks
to make an account worthwhile edged up, to 28.4 percent in
1998, but was still below the levels seen in the 1989 and

1. For the definition of transaction account, see text. For a discussion of
the ways that lower-income families obtain checking and credit services and
the effects that developments in electronic transactions may have on such
families, see Jeanne M. Hogarth and Kevin H. O'Donnell, "Banking Relationships of Lower-Income Families and the Governmental Trend toward
Electronic Payment," Federal Reserve Bulletin, vol. 85 (July 1999),
pp. 459-73.

From 1995 to 1998 the proportion of families
having transaction accounts rose 3.5 percentage
points.12 Ownership of transaction accounts rose for
every group that had less than a 100 percent ownership rate except for families in the 75-or-older group,
for whom the ownership rate fell 3.5 percentage
points. Gains in ownership were particularly large for
the nonwhite or Hispanic group (7.7 percentage
points), for families headed by those neither working
nor retired (11.0 percentage points), and for families
in the bottom quarter of the net worth distribution
(8.4 percentage points).
Overall, median holdings of transaction accounts
among those who had such accounts rose about onethird, to $3,100; holdings were steady or rose for all
demographic groups considered here except families
with incomes of less than $10,000 and renters.

12. This rise was driven in part by a notable increase in the
proportion of families with savings accounts.




1992 surveys. Altogether, 19.6 percent of families in 1998
reported that either minimum balances or service charges
were too high. Only 1.2 percent reported that bank location
or banking hours deterred them from having a checking
account.
The pattern of responses for families that once had a
checking account differs substantially from that of other
families without accounts. Those who had accounts in the
past were much more likely to report that fees were a
deterrent and much less likely to report that they did not
write enough checks or that they did not like banks.
Distribution of reasons cited by respondents for their
families' not having a checking account, by reason,
1989, 1992, 1995, and 1998 surveys
Percent
Reason
Do not write enough checks
to make it worthwhile
Minimum balance is too high . . .
Do not like dealing with banks ..
Service charges are too high —
Cannot manage or balance
a checking account
No bank has convenient hours
or location
Do not have enough money
Credit problems
Do not need/want an account . . .
Other
Total

1989

1992

1995

1998

34.4
7.7
15.0
8.6

30.4
8.7
15.3
11.3

25.3
8.8
18.6
8.4

28.4
8.6
18.5
11.0

5.0

6.5

8.0

7.2

1.2
21.2

.8
21.2
.7
3.2
1.9
100

1.2
20.0
1.4
4.9
3.5
100

1.2
12.9
2.7
6.3
3.1
100

*
*

6.8
100

* Responses not coded separately in 1989.

Ownership of certificates of deposit, a traditional
savings vehicle, also edged up over the three-year
period, though it remained below the 1989 level.
Increases for families in the bottom 90 percent of the
net worth distribution were offset by a large decline
in ownership by the wealthiest 10 percent of families.
Overall, for those having certificates of deposit, the
median value of holdings rose 41.5 percent over the
period.
Savings Bonds and Other Bonds
The percentage of all families owning savings bonds
fell substantially between 1995 and 1998. The ownership rate declined for every demographic group; the
median holding among those with savings bonds
hardly changed.
Other types of bonds—excluding bonds held
through mutual funds, retirement accounts, and other
managed assets—were held by only 3.0 percent of
families in 1998, virtually unchanged from 1995.

10

Federal Reserve Bulletin • January 2000

5. Family holdings of financial assets, by selected characteristics of families and type of asset, 1995 and 1998 surveys
A.

1995 Survey of Consumer Finances
Family
characteristic

Transaction
accounts

Certificates of
deposit

Savings
bonds

Bonds

Stocks

Mutual
funds

Retirement
accounts

Life
insurance

Other
managed
assets

Other

Any
financial
asset

Percentage of families holding asset
A11 families

87.0

14.3

22.8

3.1

15.2

12.3

45.2

32.0

3.9

11.1

91.0

Income (1998 dollars)
Less than 10.000
10,000-24,999
25.000-49,999
50,000-99,999
100,000 or more

59.2
82.3
93.4
98.7
99.8

7.9
15.6
13.8
16.2
20.0

5.3
12.4
25.7
38.0
38.2

*

2.3
8.4
13.9
24.7
43.6

1.3
4.9
12.2
20.9
36.7

7.9
25.1
52.5
71.6
84.3

15.2
24.8
32.3
44.8
52.6

*

2.7
4.6
14.6

3.1
4.3
5.3
8.1

9.5
8.3
13.1
11.6
14.7

67.4
87.8
97.0
99.5
100.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

80.4
87.2
88.8
88.4
91.3
93.2

7.2
8.1
12.5
17.1
24.0
34.7

20.4
31.0
25.3
20.3
17.0
15.3

1.7
4.5
3.1
5.6
7.0

10.8
14.6
17.7
15.0
18.6
19.7

8.0
11.2
16.3
16.3
15.0
10.3

40.7
54.3
57.4
50.9
36.6
15.7

22.8
29.3
38.4
37.4
37.5
35.8

1.6
3.5
3.0
7.7
5.9
5.2

13.8
10.9
12.9
9.3
10.0
5.4

86.9
91.8
92.8
90.8
92.6
94.2

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

92.5
68.1

16.7
6.2

26.2
10.8

3.8
0.6

18.2
5.1

14.8
3.6

49.1
31.5

34.0
24.8

4.8
1.0

11.7
9.1

94.9
77.4

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

89.6
91.5
86.6
58.1

10.4
18.7
23.4
7.8

26.6
25.8
15.3
12.6

2.5
5.3
4.2

15.3
18.7
16.5
4.3

12.4
19.0
11.5
4.3

55.8
50.7
24.9
18.4

32.2
41.9
32.0
13.7

3.6
3.1
5.3
*

11.8
16.8
7.1
11.5

94.1
94.6
88.7
65.2

Housing status
Owner
Renter or other

95.0
72.4

17.4
8.7

28.3
12.7

4.3
.9

19.2
7.9

16.0
5.5

54.3
28.4

38.8
19.4

5.0
1.9

9.5
14.0

96.5
80.8

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

63.7
89.1
96.1
98.7
99.7

1.8
8.7
17.7
27.1
32.2

8.4
19.9
27.3
34.8
36.5

*

2.9
8.8
13.5
29.2
45.6

1.9
5.3
11.3
23.4
41.8

15.1
41.9
51.8
66.3
80.2

11.3
27.4
38.4
47.3
56.1

*

1.4
4.9
18.2

1.9
3.4
6.3
14.5

9.1
10.7
11.3
10.9
17.3

71.6
94.3
97.9
100.0
100.0

3.2

16.5

*

*

*

*

Median value of holdings for families holding asset (thousands of 1998 dollars)
2.3

10.6

1.1

31.1

.7
1.3
2.0
4.4
15.9

7.4
10.6
10.6
13.8
19.1

.3
.8
.7
1.3
1.6

30.8
15.9
61.6

Age of head (years)
Less than 35
35—44
45-54
55-64
65-74
75 or more

1.3
2.1
3.2
3.3
3.5
5.3

5.6
5.6
12.7
14.9
21.2
13.8

.5
1.1
1.1
1.6
1.6
5.1

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

2.6
1.5

11.2
10.6

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

2.1
4.8
3.2
.6

Housing status
Owner
Renter or other

All families
Income (1998 dollars)
Less than 10.000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100




9.6

21.2

18.1

5.3

31.9

1.6
6.4
6.4
7.4
23.4

26.6
9.2
13.8
17.8
63.4

5.3
11.1
10.6
24.6
88.2

2.1
3.2
5.0
7.4
13.8

15.9
22.3
42.5
65.9

2.1
1.9
2.1
5.0
13.8

1.4
5.9
13.3
44.0
218.5

11.7
26.6
10.6
53.1
42.5

3.2
4.8
10.6
20.6
21.2
19.1

5.8
10.6
22.3
59.5
58.4
53.1

6.4
15.6
29.7
33.6
30.3
25.0

3.7
5.6
8.3
5.6
5.3
5.3

4.8
11.5
60.3
53.1
37.2
69.0

1.1
2.1
5.3
10.6
9.6
37.2

5.7
14.6
29.7
34.8
22.5
24.3

1.1
0.5

31.1
28.7

9.8
2.5

22.3
6.8

19.5
12.7

5.3
5.6

31.9
6.4

4.2
1.4

19.9
6.2

8.5
17.0
16.5
9.0

1.0
.9
2.7
0.4

18.9
53.1
41.4

13.8
26.6
53.1
24.4

17.0
26.0
27.6
12.7

5.8
6.4
4.5
3.7

15.4
45.7
53.1

*

6.1
19.1
20.2
5.5

2.1
4.2
10.6
5.3

15.6
26.5
20.6
2.7

3.2
1.3

11.7
8.5

1.1
1.1

41.4
7.4

10.6
3.9

23.4
10.6

21.5
7.6

6.4
3.7

37.2
14.9

5.3
1.7

26.0
4.9

.6
1.5
2.7
7.0
20.7

1.4
5.3
10.6
15.9
37.2

.2
.6
1.1
1.6
2.9

*

10.6
21.2
74.4

.6
1.9
5.0
10.6
53.1

2.1
3.7
10.6
22.3
86.0

1.3
8.0
17.0
37.7
104.1

1.3
3.6
5.3
7.4
18.1

9.0
11.5
26.6
125.3

.9
1.6
4.2
10.6
31.9

1.1
8.9
26.2
88.6
341.0

*
*

*

*

*

*

*

Results from the 1998 Survey of Consumer Finances

11

5.—Continued
B.

1998 Survey of Consumer Finances
Family
characteristic

Transaction
accounts

Certificates of
deposit

Savings
bonds

Bonds

Stocks

Mutual
funds

Retirement
accounts

Any
financial
asset

Life
insurance

Other
managed
assets

Other

9.4

92.9

Percentage of families holding asset
90.5

15.3

19.3

3.0

19.2

16.5

48.8

29.6

5.9

61.9
86.5
95.8
99.3
100.0

7.7
16.8
15.9
16.4
16.8

3.5
10.2
20.4
30.6
32.3

*

1.3
2.4
3.3
12.2

3.8
7.2
17.7
27.7
56.6

1.9
7.6
14.0
25.8
44.8

6.4
25.4
54.2
73.5
88.6

15.7
20.9
28.1
39.8
50.1

4.9
3.9
8.0
15.8

8.0
8.2
10.2
9.1
12.7

70.6
89.9
97.3
99.8
100.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

84.6
90.5
93.5
93.9
94.1
89.7

6.2
9.4
11.8
18.6
29.9
35.9

17.2
24.9
21.8
18.1
16.1
12.0

1.0
1.5
2.8
3.5
7.2
5.9

13.1
18.9
22.6
25.0
21.0
18.0

12.2
16.0
23.0
15.2
18.0
15.1

39.8
59.5
59.2
58.3
46.1
16.7

18.0
29.0
32.9
35.8
39.1
32.6

1.9
3.9
6.5
6.5
11.8
11.6

10.1
11.8
9.1
8.4
7.3
6.4

88.6
93.3
94.9
95.6
95.6
92.1

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

94.7
75.8

17.9
6.4

22.2
9.2

3.7
.4

22.1
9.1

18.8
8.4

53.7
32.0

32.1
20.8

7.1
1.7

9.7
8.3

96.3
81.2

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

92.7
95.4
87.2
69.1

11.1
11.7
28.8
7.6

21.8
20.2
14.4
11.8

1.9
5.4
5.1

16.6
24.8
14.8
4.8

58.9
53.5
28.8
17.5

27.5
39.5
32.4
17.6

4.2
8.7
9.9

*

19.5
26.5
17.1
8.8

*

9.4
14.1
6.8
10.9

94.8
96.9
90.3
75.2

Housing status
Owner
Renter or other

96.2
79.2

18.9
8.3

23.3
11.5

3.8
1.3

24.9
8.0

21.0
7.5

58.4
30.1

36.9
15.2

7.7
2.4

8.7
10.8

97.5
84.1

72.1
91.4
98.5
99.7
100.0

3.0
9.8
19.7
30.0
26.9

7.0
16.3
23.9
27.9
33.1

*

3.1
9.4
18.8
36.3
58.9

2.1
8.7
15.1
35.7
46.4

18.4
44.2
56.4
71.9
82.9

10.8
23.7
35.6
45.7
52.1

*

2.3
5.9
10.1
22.2

7.9
10.0
8.3
10.2
13.1

78.0
94.7
99.1
99.9
100.0

3.0

22.4

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

*

2.2
3.4
16.9

*

Median value of holdings for families holding asset (thousands of 1998 dollars)
3.1

15.0

1.0

.5
1.3
2.5
6.0
19.0

7.0
20.0
14.5
13.3
22.0

1.8
1.0
.6
1.0
1.5

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

1.5
2.8
4.5
4.1
5.6
6.1

2.5
8.0
11.5
17.0
20.0
30.0

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

3.7
1.5

Current work status of head
Working for someone else
Self-employed
Retired
Other not working
Housing status
Owner
Renter or other

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100
NOTE. See note to table 1.
* Ten or fewer observations.




44.8

17.5

25.0

24.0

7.3

31.5

8.4
25.0
19.0
108.0

14.0
10.0
8.0
15.0
55.0

6.0
26.0
11.0
25.0
65.0

7.5
8.0
13.0
31.0
93.0

3.0
5.0
5.0
9.5
18.0

30.0
15.0
32.0
100.0

.5
l.l
2.0
5.0
25.0

1.1
4.8
17.6
57.2
244.3

.5
.7
1.0
1.5
2.0
5.0

3.0
55.3
31.7
100.0
52.0
18.8

5.0
12.0
24.0
21.0
50.0
50.0

7.0
14.0
30.0
58.0
60.0
59.0

7.0
21.0
34.0
46.8
38.0
30.0

2.7
8.5
10.0
9.5
8.5
5.0

19.4
25.0
39.3
65.0
41.3
30.0

1.0
2.5
6.0
10.0
6.0
8.2

4.5
22.9
37.8
45.6
45.8
36.6

17.0
6.3

1.0
.7

46.0
14.2

20.0
9.0

29.0
10.0

26.0
13.0

7.5
5.0

32.0
23.0

4.0
1.0

29.9
6.4

2.7
6.3
5.0
1.0

9.0
22.0
24.0
10.0

.7
.9
2.5
.8

15.0
150.0
50.0

10.0
52.0
50.0
11.0

16.0
40.0
55.0
17.5

20.0
49.5
31.0
15.0

7.0
11.5
6.0
5.0

30.0
39.3
32.0

1.8
7.0
7.0
0.5

19.0
45.0
32.8
2.5

5.0
1.1

18.0
10.0

1.0
.6

41.5
50.0

20.0
8.0

30.0
12.0

30.0
7.5

8.0
5.0

32.0
23.0

5.0
1.0

41.2
3.4

.6
1.7
4.8
10.5
23.0

1.5
6.2
15.0
25.0
44.0

.2
.5
1.0
2.0
2.0

10.0
25.0
100.0

.7
3.0
8.0
26.3
85.0

1.5
6.0
14.0
35.3
107.0

2.0
8.1
28.0
59.8
125.0

1.2
5.0
7.0
10.0
20.0

10.0
21.4
23.4
120.0

.5
1.8
6.0
7.0
20.0

1.1
10.4
42.7
144.4
456.8

*

*

*
*

*

*

*

12

Federal Reserve Bulletin • January 2000

At the same time, the median amount of bonds among
families that had them rose 44.1 percent. Changes for
the different demographic groups were quite mixed,
but among the groups with relatively large holdings
in 1995—the top income and top net worth groups—
ownership moved down while the median holding
rose substantially. The increase in the median holding
for families headed by the self-employed was also
notable. Given the sparseness of bond ownership
among most other groups, estimates of the amounts
of their holdings are subject to a relatively high level
of statistical variability.

Publicly Traded Stocks
The fraction of families having direct ownership of
publicly traded stocks—that is, stocks other than
those held through mutual funds, retirement accounts,
or other managed assets—rebounded to 19.2 percent
in 1998; the proportion had fallen to 15.2 percent in
1995 from about 17 percent in both 1989 and 1992.
Although the largest increases in ownership were in
the highest income and net worth groups, almost all
of the groups showed some increase. Among families
with incomes from $25,000 to $49,999, the proportion owning stock rose 3.8 percentage points. For
those in the 55-to-64 age group, the increase was
10.0 percentage points. Some of the additional ownership may be attributable to the increasing ease of
individual stock trading.
Fueled by a rising stock market, the median
amount of stock held by those having direct holdings
rose 82.3 percent, from $9,600 in 1995 to $17,500 in
1998.13 Most of the demographic groups also had
large proportional increases. Among the work-status
groups, the increases in holdings were most notable
for the self-employed and retired. Of all the demographic categories, only one, the 55-to-64 age group,
had minimal growth in their holdings over the period,
probably because of an influx of new owners with
relatively small holdings.

13. During the interview period of the 1998 survey—July to
December—the stock market, as measured by the Wilshire index of
5000 companies, slipped from an average of 10,770 in July to 9,270 in
September but bounced back to an average of 10,840 in December.
This variation raises a concern that the net worth values reported in
the survey may be affected by the date of the interview. Regression
analysis of the 1998 survey data suggests that the reporting of equity
values was not significantly affected by fluctuations in the value of the
market index except for families that were relatively active stock
traders. Reporting by other families may have been based on brokerage statements, which are typically mailed quarterly.




Mutual Funds
Continuing a trend going back at least to 1989, the
proportion of families owning mutual funds of any
type (excluding money market funds or funds held
through retirement accounts or other managed assets)
rose 4.2 percentage points, to 16.5 percent, between
1995 and 1998. Ownership increased substantially
for most of the demographic groups, and it eased off
only for the families in the 55-to-64 age group, which
had a particularly large rise in the fraction of families
with directly held stock.
Between 1995 and 1998, median holdings of
mutual funds among those who had them rose
17.9 percent. The changes in holdings over demographic groups were more mixed than was the case
for directly held stocks, but increases were nonetheless broadly spread. As was the case with bonds and
directly held stocks, the increase among the workstatus groups was particularly notable for the selfemployed. Among the net worth groups, the largest
proportional increases were for families between the
25th and 90th percentiles of the distribution.

Retirement Accounts
Continuing earlier trends, the ownership of taxdeferred retirement accounts rose broadly, from
45.2 percent of families in 1995 to 48.8 percent
in 1998.14 Across the income groups, ownership
declined only among the under-$ 10,000 group; however, the shrinkage of this group over the three years
suggests that its composition may have changed
in important ways. Ownership also declined for
the younger-than-35 and neither-working-nor-retired
groups. Ownership of retirement accounts increased
4.6 percentage points for families with white nonHispanic respondents, while it rose Vi percentage
point for other families.

14. The tax-deferred retirement accounts include individual retirement accounts (IRAs), Keogh accounts, and certain employersponsored accounts. The amounts held in retirement accounts may be
invested in virtually any asset, including stocks, bonds, mutual funds,
options, and real estate.
Here, employer-sponsored accounts are those from current jobs
held by the family head and that person's spouse or partner as well as
those from past jobs held by them. The accounts from current jobs are
restricted to those in which loans or withdrawals can be made, such as
401 (k) accounts; those from past jobs are restricted to accounts from
which the family expects to receive the account balance in the future.
These restrictions on the types of accounts are intended to confine the
analysis to amounts that are portable across jobs and to which families
will ultimately have full access. Earlier articles on the survey in the
Federal Reserve Bulletin included only the accounts from current
jobs.

Results from the 1998 Survey of Consumer Finances

For families with tax-deferred retirement accounts,
median holdings jumped 32.6 percent. Increases
appeared in all the demographic groups except renters and families with incomes from $10,000 to
$24,999. The median value of holdings of the white
non-Hispanic group rose considerably, but for the
nonwhite or Hispanic group, median holdings only
edged up.
Tax-deferred retirement accounts are only a part of
the retirement assets that families have. Many families also have coverage under defined-benefit pension
plans, which typically provide annuity income at
retirement based on workers' salaries and years of
service. Most families also have some entitlement
to social security retirement income. Unfortunately,
future retirement income from these sources is difficult to value because it depends crucially on assumptions about future events and conditions—work decisions, earnings, inflation rates, discount rates,
mortality, and so on. Because of the lack of widely
agreed standards for these assumptions, this article
does not include a measure of the present value of
such income in families' net worth.15
However, the survey does provide general information on pension coverage, which consists of definedbenefit plans and defined-contribution—that is,
account-type—plans. According to the 1998 survey,
41.0 percent of families had some type of pension
coverage through a current job of either the family
head or the spouse or partner of that person; the level
was 39.1 percent in 1995 (not shown in table). Continuing a trend away from defined-benefit pension
plans, the share of families with pension coverage
through a current job that participated in a definedbenefit plan slipped from 47.5 percent in 1995 to
42.9 percent in 1998, while the share participating in
an account-type plan rose from 73.9 percent in 1995
to 79.4 percent in 1998. The share with both types of
plans went up from 21.4 percent in 1995 to 22.3 percent in 1998.
In many account-type pension plans, contributions
may be made by the employer, the worker, or both.
In some cases these contributions represent a substantial amount of saving, though workers may offset
this saving by reducing their saving in other forms.
The employer's contributions also represent addi-

15. For one possible calculation of net worth that includes the
annuity value of pension benefits and social security retirement payments, see Arthur B. Kennickell and Annika E. Sunden, Pensions,
Social Security, and the Distribution of Wealth, Finance and Economics Discussion Series 1997-55 (Board of Governors of the Federal
Reserve System, October 1997). Papers in this series from 1996 to
date are available at www.federalreserve.gov/pubs/feds.




13

tional income for the worker. In 1998, 82.7 percent
of families with account-type pension plans on a
current job had employers who made a contribution
to the plan, and 86.6 percent of families with such
plans made contributions themselves.
Participation in defined-contribution plans is usually voluntary. In 1998, 22.7 percent of family heads
who were eligible to participate in such a plan failed
to do so, down from 26.0 percent in 1995. The data
indicate that this choice is related strongly to income:
Heads of families with incomes of less than $25,000
were less likely to participate than others. Among the
family heads who were eligible but chose not to
participate, 40.2 percent were covered by a definedbenefit plan.

Cash Value Life Insurance
Cash value life insurance combines insurance coverage in the form of a death benefit with an investment
vehicle. Some types of cash value policies offer a
high degree of choice on the investments. Like
returns earned within IRAs, Keoghs, and personal
annuities, investment returns on cash value life insurance are typically shielded from taxation until money
is withdrawn. Ownership of cash value policies
declined 2.4 percentage points between 1995 and
1998. This decline continued a downward trend from
the 1989 survey, and it was shared by almost every
demographic group. This movement may reflect several factors. First, other investments may have
become more attractive to consumers than cash value
insurance. Second, term life insurance—which pays
a death benefit if the insured dies within the term
of the coverage but pays nothing otherwise—has
been competitive with cash value insurance; in addition, advances in the availability of information may
have made it easier for consumers to compare costs.
Finally, consumers' demand for life insurance may
have eased somewhat: As with the ownership of cash
value insurance, ownership of any type of life insurance policy has slipped, from 75.1 percent of families
in 1989 to 69.2 percent in 1998.
For families that held cash value insurance, the
median cash value increased 37.7 percent between
1995 and 1998. The median also rose for all groups
except the youngest and oldest age classes, families
with incomes from $25,000 to $49,999, and families
in the bottom quarter of the distribution of net worth.
The decline in ownership, taken together with the
increase in the median holding, suggests that the
typical family owning this asset is using it more
intensively as an investment vehicle.

14

Federal Reserve Bulletin • January 2000

Other Managed Assets
Ownership of other managed assets—including personal annuities and trusts with an equity interest and
managed investment accounts—rose from 3.9 percent of families in 1995 to 5.9 percent in 1998. Part
of the rise is attributable to the increased holding of
personal annuities with an equity interest: 4.5 percent
of families had such annuities in 1998, up from
3.9 percent in 1995.16 Most groups increased their
ownership of other managed assets over the threeyear period, with a particularly notable rise for families with incomes of $100,000 or more and those in
the top 10 percent of the distribution of net worth.
Median holdings for those having other managed
assets declined slightly. In light of the sparseness of
ownership for many of the groups, much of the large
change observed in various groups is likely attributable to sampling variation.
Other Financial Assets
For the other financial assets—a heterogeneous category including oil and gas leases, futures contracts,
royalties, proceeds from lawsuits or estates in settlement, and loans made to others—ownership fell
1.7 percentage points from 1995 to 1998. The decline
was broadly spread across demographic groups. For
those having such assets, the median holding dipped
about $200 from the 1995 level. The pattern of
changes across the demographic groups appears to
have no straightforward interpretation.
Publicly traded companies have increasingly been
offering stock options to their employees as a form
of compensation.17 Although such stock options,
when executed, may make an appreciable contribution to family net worth, the survey did not specifically ask for the value of these options because their
valuation is not straightforward until their exercise
date.18 Instead, in 1998 the survey for the first time
asked whether the family head or that person's
spouse or partner had been given stock options by
16. In 1998, the SCF questionnaire was changed so that information on annuities was collected separately from information on trusts
and managed investment accounts. The earlier surveys had asked
about the total value of holdings in these types of assets after respondents had specified the types they had. Some of the increase in the
ownership of annuities may reflect this change.
17. See David Lebow, Louise Sheiner, Larry Slifman, and Martha
Starr-McCluer, Recent Trends in Compensation Practices, Finance
and Economics Discussion Series 1999-32 (Board of Governors of the
Federal Reserve System, July 1999).
18. Because such options are typically not publicly traded, their
value is uncertain until the exercise date; until then, meaningful
valuation would require complex assumptions about future movements in stock prices.




an employer during the preceding year. Overall,
11.2 percent of families in the 1998 survey reported
having received stock options.
Direct and Indirect Holdings
of Publicly Traded Stocks
Families may hold stock in publicly traded companies in many different ways—through direct ownership of shares or through mutual funds, retirement
accounts, or other managed assets—and information
about each of these asset types is collected separately
in the SCF. When all these forms of stock ownership
are combined, the data show considerable growth in
stock ownership in every survey since 1989 (table 6).
In 1998, 48.8 percent of families owned stock equity
through some means. Since 1989, the ownership rate
has grown 17.2 percentage points, with nearly half
of the gain since 1995. Between 1995 and 1998,
ownership rose for all family income and age groups;
among these, the increases were largest in the
$50,000-$99,999 income group and the 55-to-64 age
group.
Not surprisingly, given the robust growth in stock
prices, the median value of stock holdings among
those having any rose strongly—from $15,400 in
1995 to $25,000 in 1998, a 62.3 percent increase.
Moreover, the proportion of financial assets attributable to all forms of stock ownership also moved up,
from 40.0 percent in 1995 to 53.9 percent in 1998.
The rise reflects both an increase in the market valuation of stocks and the increased tendency of families
to hold stock.
Nonfinancial

Assets

Nonfinancial assets as a proportion of the total assets
of all families fell from 69.6 percent in 1989 to
59.4 percent in 1998 (table 7). The proportion of
nonfinancial assets attributable to the primary residence or other residential property held steady at
about 55 percent over the 1989-98 period. At the
same time, the part attributable to vehicles and net
equity in privately owned businesses rose slightly,
while the proportion attributable to net equity in
nonresidential properties and other nonfinancial
assets fell. The patterns across demographic groups
in 1995 and 1998 are similar to those seen for financial assets: Ownership and median holdings rise with
income; by age group, they rise initially and then
decline (table 8).
Overall, the proportion of families with any type of
nonfinancial asset slipped a bit, from 90.9 percent in

Results from the 1998 Survey of Consumer Finances

15

6. Direct and indirect family holdings of stock, by selected characteristics of families, 1989, 1992, 1995, and 1998 surveys
Percent except as noted
Median value among families
with holdings
(thousands of 1998 dollars)

Families having stock holdings,
direct or indirect1

Family
characteristic

Stock holdings as share of
group's financial assets

1989

1992

1995

1998

1989

1992

1995

1998

1989

1992

1995

1998

All families

31.6

36.7

40.4

48.8

10.8

12.0

15.4

25.0

27.8

33.7

40.0

53.9

Income (1998 dollars)
Less than 10.000
10,000-24,999
25.000-49,999
50,000-99,999
100,000 or more

*

6.8
17.8
40.2
62.5
78.3

5.4
22.2
45.4
65.4
81.6

7.7
24.7
52.7
74.3
91.0

*

6.4
6.0
10.2
53.5

6.2
4.6
7.2
15.4
71.9

3.2
6.4
8.5
23.6
85.5

4.0
9.0
11.5
35.7
150.0

*

12.7
31.5
51.5
81.8

11.7
16.9
23.2
35.3

15.9
15.3
23.7
33.5
40.2

12.9
26.7
30.3
39.9
46.4

24.8
27.5
39.1
48.8
63.0

Age of head (years)
Less than 35
35^*4
45-54
55-64
65-74
75 or more

22.4
38.9
41.8
36.2
26.7
25.9

28.3
42.4
46.4
45.3
30.2
25.7

36.6
46.4
48.9
40.0
34.4
27.9

40.7
56.5
58.6
55.9
42.6
29.4

3.8
6.6
16.7
23.4
25.8
31.8

4.0
8.6
17.1
28.5
18.3
28.5

5.4
10.6
27.6
32.9
36.1
21.2

7.0
20.0
38.0
47.0
56.0
60.0

20.2
29.2
33.5
27.6
26.0
25.0

24.8
31.0
40.6
37.3
31.6
25.4

27.2
39.5
42.9
44.4
35.8
39.8

44.8
54.7
55.7
58.3
51.3
48.7

NOTE. See note to table 1.
1. Indirect holdings are those in mutual funds, retirement accounts, and other managed assets.
* Ten or fewer observations.

1995 to 89.9 percent in 1998. Declines were spread
fairly evenly over most demographic groups except
the income and net worth groups, in which the
decreases were largest for families at the lower ends
of the scales. The median holding of nonfinancial
assets for all families with such assets rose 11 percent
over the three-year period. Although most groups
shared in the rise, the increases in the medians
for the nonwhite or Hispanic group and for the selfemployed were particularly noteworthy.
Vehicles
Vehicles continue to be the most widely held nonfinancial asset; 86 percent of families either owned
them (table 8) or leased them (not shown) in both
the 1995 and 1998 surveys.19 Although the share of
families leasing vehicles is still fairly small (6.4 percent in 1998), it has been growing quickly, while the
rate of ownership slid down a bit between 1995 and
1998, to 82.8 percent.20
Between the 1992 and 1995 surveys, the greatest
growth in leasing was among families with incomes

of $100,000 or more. However, between the 1995
and 1998 surveys, the growth of leasing among families in that income group had leveled off, while it had
picked up among families with incomes below
$50,000.
Among owners, the median value of owned vehicles rose about $300 between 1995 and 1998, a
2.9 percent increase. Across income groups, the value
of vehicles owned rose notably only for families with
incomes of $100,000 or more. The median value of
vehicles owned also increased substantially for families in the top 10 percent of the net worth distribution
and in the 55-or-older age groups.
Primary Residence and
Other Residential Real Estate
Continuing a trend since 1989, home ownership rose
1.5 percentage points from 1995, reaching 66.2 per7. Value of nonfinancial assets of all families, distributed
by type of asset, 1989, 1992, 1995, and 1998 surveys
Percent
Type of nonfinancial asset

19. Vehicles include automobiles, vans, trucks, sport utility vehicles, motorcycles, recreational vehicles, airplanes, and boats that are
owned for personal use. Counting families that have personal use of a
car owned by a business raises the proportion of families with a
vehicle to 87.2 percent in 1998.
20. The share of families leasing a vehicle was 2.9 percent in 1992
and 4.5 percent in 1995. Leased vehicles represented 25.0 percent of
all new vehicles acquired by families in 1998, up from 20.5 percent in
1995 and 10.1 percent in 1992. For additional evidence on vehicle
leasing, see Ana Aizcorbe and Martha Starr-McCluer, "Vehicle Ownership, Vehicle Acquisitions and the Growth of Auto Leasing,"
Monthly Labor Review, vol. 120 (June 1997), pp. 34-40.




Primary residence
Other residential property
Equity in nonresidential
property
Business equity
Other
Total

1989

1992

1995

1998

5.6
45.9
8.1

5.7
47.0
8.5

7.1
47.4
8.0

6.5
47.1
8.5

11.0
26.9
2.5
100

10.9
26.3
1.6
100

7.9
27.3
2.3
100

7.7
28.5
1.7
100

69.6

68.5

63.4

59.4

MEMO

Nonfinancial assets
as a share of total assets ..
NOTE. See note to table 1.

16

Federal Reserve Bulletin • January 2000

Family holdings of nonfinancial assets, by selected characteristics of families and type of asset, and of any asset,
by family characteristic, 1995 and 1998 surveys
A.

1995 Survey of Consumer Finances
Family
characteristic

Vehicles

Primary
residence

Other
residential
property

Equity in
nonresidential
property

Business
equity

Other

Any
nonfinancial
asset

Any
asset

Percentage of families holding asset
All families

84.1

64.7

11.8

9.4

11.1

9.0

90.9

96.3

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49.999
50,000-99,999
100,000 or more

54.9
82.3
91.7
93.4
91.6

36.1
54.9
67.0
84.5
91.1

3.9
7.0
9.9
16.7
38.4

4.0
5.5
8.0
14.5
24.5

4.8
6.6
9.4
16.3
31.5

3.8
5.9
9.4

23.0

66.8
89.4
96.4
98.8
99.5

83.0
96.0
99.7
100.0
100.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

83.8
84.7
88.2
88.4
82.5
72.2

37.9
64.7
75.3
82.0
79.5
72.8

4.2
9.7
16.3
19.9
12.2

3.6
7.1
14.3
13.4
16.2
6.4

8.3
14.3
15.5
12.7
8.7
3.7

7.2
10.0
11.4
10.2
9.0
5.6

87.1
90.6
93.6
93.9
92.6
89.9

94.3
96.0
97.3
96.4
97.7
98.4

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

88.2
69.7

70.6
44.3

13.2
7.1

10.4
5.7

12.8
5.3

10.6
3.6

95.1
76.3

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

89.9
86.1
76.2
59.0

63.8
74.5
70.6
34.4

10.3
21.3
13.1
5.0

8.0
8.5
4.2

6.9
58.1
3.3
4.0

9.6
15.5
5.8
5.9

93.9
96.0
88.1
66.2

98.6
97.8
95.6
76.9

Housing status
Owner
Renter or other

90.9
71.6

100.0

15.1
5.7

12.1
4.4

13.7
6.3

10.5
6.3

100.0
74.1

100.0
89.6

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

65.4
87.8
90.9
92.3
92.3

13.7
64.1
88.3
92.2
93.5

.9
4.5
9.0
15.8
33.8

1.6

5.7
12.3
16.5
37.1

3.0
7.0
10.5
12.4
20.3

68.4
96.3
99.0
99.8
99.9

85.3
100.0
100.0
100.0
100.0

16.1

5.4

11.1

21.3
42.6

22.2

11.0

Median value of holdings for families holding asset (thousands of 1998 dollars)
AH families

10.5

95.6

53.1

31.9

47.8

9.3

88.1

108.1

4.0
6.2

28.0
31.9
45.1
63.7
106.2

15.9
14.9
42.5
21.2
106.2

54.1
35.1
26.0
31.9
265.5

6.2
6.4
6.2
14.3
19.1

14.2
45.7
84.0
146.7
314.7

13.5
55.5
104.4
202.2
608.5

12.7

5.3
10.6
10.6
10.6
14.9
8.5

23.2
102.2
120.0
114.7
100.7
83.9

159.8
170.8
132.9
102.3

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

16.9
24.4

41.4
69.0
85.0
126.4
196.5

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

9.4
11.3
13.7
12.2
8.7
5.6

80.7
100.9
106.2
92.4
90.3
85.0

36.1
49.9
63.7
58.4
60.5
28.7

19.1
67.8
42.5
6.4

21.2
37.2
74.4
69.0
106.8
37.4

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

11.4
7.8

96.7
74.4

58.4
30.9

34.0
21.2

53.1
27.9

10.6
6.9

99.5
37.0

126.3
40.9

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

11.5
13.4
7.8
6.6

95.6
127.5
80.7
63.7

49.9
85.0
47.8
45.1

18.1

55.8
37.2
53.1

22.3
79.7
106.2

86.4
189.0
83.9

21.2

10.6
8.5
10.6
7.4

105.0
243.5
102.0
22.3

Housing status
Owner
Renter or other

12.7
6.7

95.6

55.2
39.8

37.2
12.7

58.4
23.4

10.6
5.3

123.0
7.9

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

4.8
9.1
11.9
15.1
21.6

28.7
53.1
90.3
136.0
196.5

2.1

1.6
10.6
23.4
95.6
345.2

2.7
5.3
8.5
10.6
26.6

6.2
43.6
107.7
180.5
421.2




11.1

29.7
32.4
53.1
132.8

18.1

7.4
10.6
37.2
108.9

21.2

34.1
118.1

168.1

13.1
6.1

51.7
137.1
273.3
802.3

Results from the 1998 Survey of Consumer Finances

-Continued
B.

1998 Survey of Consumer Finances
Family
characteristic

Vehicles

Primary
residence

Other
residential
property

Equity in
nonresidential
property

Business
equity

Other

Any
nonfinancial
asset

Any
asset

Percentage of families holding asset
AH families

82.8

66.2

12.8

8.6

11.5

8.5

89.9

96.8

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

51.3
78.0
89.6
93.6
88.7

34.5
51.7
68.2
85.0
93.3

5.8
11.4
19.0
37.3

5.0
7.6
12.0
22.6

3.8
5.0
10.3
15.0
34.7

2.6
5.6
9.4
10.2
17.1

62.7
85.9
95.6
98.0
98.9

83.8
96.4
99.2
100.0
100.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

78.3
85.8
87.5
88.7
83.4
69.8

38.9
67.1
74.4
80.3
81.5
77.0

3.5
12.2
16.2
20.4
18.4
13.6

2.7
7.5
12.2
10.4
15.3

8.1

7.2
14.7
16.2
14.3
10.1
2.7

7.3
8.8
9.2
8.5
10.3
7.0

83.3
92.0
92.9
93.8
92.0
87.2

94.8
97.6
96.7
98.2
98.5
96.4

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

87.3
67.2

71.8
46.8

14.1
8.4

9.4
5.8

13.2
5.4

10.0
3.1

93.8
76.4

98.8
89.9

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

87.6
89.5
73.3
58.5

63.5
81.3
72.4
35.8

10.6
25.3
14.3
4.5

6.7
17.7
10.1

8.8
13.3
6.4

*

5.5
63.4
3.6
3.7

92.4
98.1
85.2
66.3

98.2
99.2
94.7
85.7

Housing status
Owner
Renter or other

90.6
67.6

100.0

16.8
5.1

11.3
3.3

14.5
5.4

9.5
6.4

100.0
70.1

100.0
90.7

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

62.3
87.4
90.4
90.8
92.0

14.1
67.2
89.3
94.0
95.1

*

*

5.8
11.8
26.2
41.7

3.5
7.9
16.7
30.6

1.4
6.5
10.6
17.9
41.4

2.5
8.0
8.9
11.4
18.8

65.2
96.1
99.1
99.3
99.6

87.4
100.0
100.0
100.0
100.0

*

Median value of holdings for families holding asset (thousands of 1998 dollars)
60.0

10.0

97.8

123.5

25.0
28.0
30.0
114.1

37.5
31.1
37.5
56.0
230.0

5.0
5.0
6.0
12.0
36.0

16.3
43.7
83.5
156.3
380.0

11.7
46.2
112.0
233.2
665.6

42.5
45.0
74.0
70.0
75.0
103.0

25.0
20.0
45.0
54.0
45.0
54.0

34.0
62.5
100.0
62.5
61.1
40.0

5.0
8.0
14.0
28.0
10.0
10.0

22.7
103.5
126.8
126.9
109.9
96.1

28.9
128.0
178.9
198.2
165.2
135.0

100.0
85.0

67.0
59.0

42.5
24.0

67.6
30.0

10.0
5.0

107.6
52.0

144.9
43.1

11.2
15.5
8.6
7.2

98.0
150.0
89.0
90.0

50.0
85.0
100.0
64.6

24.0
80.0
50.0

30.0
100.0
50.0
39.0

7.0
50.0
10.0
*

89.6
256.6
97.8
28.5

112.4
329.3
134.5
18.0

Housing status
Owner
Renter or other

13.2
6.2

100.0

65.0
64.6

45.0
15.0

75.0
31.0

13.0
5.0

130.6
7.2

193.3
11.6

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

4.9
8.6
12.6
15.5
23.3

40.0
60.0
95.0
140.0
250.0

3.5
12.0
40.0
87.5
300.0

1.0
5.0
8.8
15.0
55.0

6.4
51.5
118.0
218.5
519.0

5.9
60.7
165.4
362.5
973.7

All families

10.8

100.0

65.0

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

4.0
5.7
10.2
16.6
26.8

51.0
71.9
85.0
130.0
240.0

*

*

70.0
50.0
60.0
132.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

8.9
11.4
12.8
13.5
10.8
7.0

84.0
101.0
120.0
110.0
95.0
85.0

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

11.8
8.0

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

NOTE. See note to table 1.




*

37.5
35.0
80.0
151.5

38.0

*

*

10.0
21.0
45.0
120.0

* Ten or fewer observations.

Not applicable.

17

18

Federal Reserve Bulletin • January 2000

cent in 1998. Ownership grew strongly for families
with incomes of $100,000 or more, for families
headed by those younger than 45 or those 65 or older,
for those with nonwhite or Hispanic respondents, and
for families headed by the self-employed. Home
ownership fell for families with less than $25,000
of income and for families headed by those aged
45 to 64.
The median value of a primary residence among
homeowners rose only 4.6 percent from 1995 to
1998, but increases for some groups were very large:
23.2 percent for families with less than $10,000 of
income, 22.1 percent for those with incomes of
$100,000 or more, 13.0 percent for the 45-to-54 age
group, and 27.2 percent among the wealthiest 10 percent of families. The median home value for families
with nonwhite or Hispanic respondents increased
14.2 percent, compared with 3.4 percent for other
families.21
In 1998, 12.8 percent of families had some form of
residential real estate besides a primary residence
(second homes, time shares, one- to four-family
rental properties, and other types of residential property), up from 11.8 percent in 1995. The pattern of
changes was mixed across demographic groups, with
a notable increase for families headed by the selfemployed. For families with this kind of property, the
median value of their property rose 22.4 percent over
the three-year period. Percentage gains were particularly large for families in the 75-or-older age group,
for families with nonwhite or Hispanic respondents,
and for families headed by retirees; however, because
relatively few families in these groups have such
property, these estimates may be imprecise.

groups; notable exceptions were families headed by
those aged 75 or more and by retirees.
Among owners of nonresidential real estate, the
median net equity in such property—its value less the
amount of any outstanding loans secured by it—rose
19.1 percent over the 1995-98 period. The increase
was shared by most of the demographic groups.
Net Equity in Privately Held Businesses
In 1998, 11.5 percent of families owned privately
held business interests, a proportion that has hardly
changed since 1989.22 Between 1995 and 1998, business ownership rose 3.2 percentage points for families with $100,000 or more of income, while moving
only slightly for the other income groups.
Among families with business interests, the median
value of the business net of borrowing done by the
business rose 25.5 percent over the three-year period.
Changes were quite mixed across the demographic
groups considered. The median increased for families with incomes from $25,000 to $99,999 but
declined for the other income groups. By age of
family head, the median fell for the 55-to-74 groups,
while it rose for the others. The median holding fell
for families in the top 25 percent of the net worth
distribution, for whom business interests have been a
key asset. The increase in business ownership for
these families suggests that the decline in the median
may have been driven by the startup of new businesses that have relatively low initial net values and
possibly by the change in form of ownership of
particularly successful businesses to that of publicly
traded corporation.

Net Equity in Nonresidential Real Estate
Continuing a trend observed since the 1989 SCF,
ownership of nonresidential real estate (commercial
properties, rental properties with five or more units,
farm land, undeveloped land, and all other types of
nonresidential real estate except property owned
through a business) slipped between 1995 and 1998.
This trend partly reflects the expiration of real estate
partnerships that had been established before changes
in the tax code limited the deductibility of losses on
investments in which a person has a "passive" interest. Ownership fell for most of the demographic
21. Among homeowners, mean and median equity in a primary
residence—that is, the difference between the market value of the
property and the amounts outstanding on any debt secured by the
property—also rose over the 1995-98 period: The median increased
from $53,100 in 1995 to $57,000 in 1998, while the mean jumped
from $78,300 to $87,400.




Other Nonfinancial Assets
For the remaining nonfinancial assets (a broad category of tangible items including artwork, jewelry,
precious metals, and antiques), ownership rates fell a
bit between 1995 and 1998. The decline was spread
across most of the demographic groups. In contrast,
the median value of holdings for those who had such
assets rose slightly. Although patterns of change
in median holdings were varied across groups, the
median grew strongly for the 55-or-older and selfemployed groups and families in the top quarter of
the net worth distribution.
22. The forms of business in this category are sole proprietorships,
limited partnerships, other types of partnerships, subchapter S corporations, other types of corporations that are not publicly traded, and
other types of private businesses.

Results from the 1998 Survey of Consumer Finances

19

9. Family holdings of unrealized capital gains, by selected characteristics of families, 1989, 1992, 1995, and 1998 surveys
Thousands of 1998 dollars
Family
characteristic
All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49.999
50,000-99,999
100,000 or more
Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

1989
Median

1992
Mean

12.7

91.5

t
t
12.7
38.2
159.0

11.9
30.1
55.3
89.0
531.5

t

20.6
68.6
132.3
160.7
139.5
126.2

14.1
40.7
38.2
33.7
21.5

Median
8.6
t
.6
6.9
27.4
134.7

f

5.7
20.6
33.1
34.3
28.9

1995

1998

Mean

Median

Mean

Median

Mean

79.8

6.3

71.8

10.8

96.3

15.3
28.4
49.4
85.8
490.7

t
t
5.3
26.1
81.3

16.5
25.7
37.6
69.3
493.8

t
t
10.0
27.0
105.3

16.0
26.6
46.9
80.8
629.2

15.4
62.2
117.9
150.1
123.9
75.8

4.2
19.8
30.8
31.9
34.7

f

10.1
38.8
101.3
145.7
125.5
91.3

t

15.4
63.3
125.6
185.8
163.5
114.7

7.1
22.4
35.6
46.5
36.0

NOTE. See note to table 1.
t Less than $50.

Unrealized Capital Gains

Families' Holdings of Debt

Changes in the values of assets such as businesses,
real estate, and stocks are a key determinant of
changes in family net worth. Unrealized gains are
increases in the value of assets that are yet to be sold.
To obtain information on this part of net worth, the
survey asks about changes in value from the time of
purchase for certain key assets—the primary residence, other real estate, businesses, publicly traded
stock, and mutual funds.23 Driven by the appreciation
of residential real estate and especially by the strong
rise in the stock market, the median unrealized
capital gain rose 71.4 percent between 1995 and
1998, while the mean moved up 34.1 percent
(table 9). The mean in 1998 was above its value in
1989, whereas the median was a bit below its 1989
level.

From 1995 to 1998, the overall proportion of families
with any sort of debt inched down from 74.5 percent
to 74.1 percent (table 11). Nonetheless, the 1998
level remained above the 73.0 percent figure registered in 1989. Among families with debt, the median
amount of debt outstanding rose 42.3 percent from
1995 to 1998, and in 1998 stood 73.3 percent above
its level in 1989.
In all the surveys, the prevalence of debt rises with
income through the $99,999 mark and then drops off.
In contrast, the median amount of debt among those
with debt rises continuously across income groups,
probably because of borrowing associated with the
acquisition of nonfinancial assets by higher-income
groups. Across age groups, the proportion of families
with debt rises relatively slowly up to about age 45
and then declines; the median shows a similar pattern. The drop-off in debt for older families is
driven by the paying off of mortgages on primary
residences.

LIABILITIES

The substantial growth in family assets from 1995 to
1998 was accompanied by substantial growth in family debt. The growth in assets was somewhat faster,
however, producing a slight decline in the ratio of
family debts to assets (the leverage ratio), from
14.7 percent in 1995 to 14.4 percent in 1998
(table 10). But the movement in the ratio reversed
only part of the upward trend observed from 1989 to
1995.

10. Amount of debt of all families, distributed
by type of debt, 1989, 1992, 1995, and 1998 surveys
Percent
Type of debt
Home-secured debt
Other residential property
Installment loans
Other lines of credit
Credit card balances
Other
Total

1989

1992

1995

1998

69.4
7.6
16.6
1.4
2.8
2.2
100

72.5
10.0
11.3
.7
3.2
2.3
100

73.3
7.5
11.8
.6
3.9
2.8
100

71.9
7.4
12.8
.3
3.8
3.7
100

12.4

14.6

14.7

14.4

MEMO

23. The survey does not collect information on capital gains for
every asset. Most notably, it does not collect such information for
retirement accounts.




Debt as a percentage
of total assets
NOTE. See note to table 1.

20

Federal Reserve Bulletin • January 2000

11. Family holdings of debt, by selected characteristics of families and type of debt, 1995 and 1998 surveys
A.

1995 Survey of Consumer Finances
Family
characteristic

Home-secured

Other
residential
property

Installment
loans

Other
lines of
credit

Credit
card
balances

Other

Any
debt

Percentage of families holding debt
1.9

47.3

8.5

74.5

6.1

2.2

23.9
41.2
54.5
62.8
41.2

8.7
8.6
13.5

47.2
65.8
82.2
89.4
85.3

2.7
2.1
2.2
1.7
1.3

54.7
55.9
56.4
43.2
30.5
17.5

7.4
10.5
13.0
7.8
5.4
2.9

83.5
86.9
86.3
73.7
53.4
28.4

46.1
45.3

2.1

47.1
48.0

8.5
8.5

75.3
71.6

5.4
8.1
2.4

58.6
45.3
18.0
40.8

2.3
3.6

58.0
45.3
25.8
36.8

9.9
4.6
9.6

87.4
80.9
44.8
63.2

63.3

5.8
2.7

45.4
46.9

1.5
2.6

51.1
40.3

8.0
9.4

79.6
65.2

9.6
47.3
55.6
49.5
54.4

2.5
3.4
8.0
18.6

48.9
55.0
47.0
36.2
27.9

2.4
2.2

41.4
55.5
57.3
39.5
27.9

9.6
9.4
7.0

66.7
81.4
79.3
70.5
70.8

All families

41.0

4.7

45.9

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49.999
50.000-99,999
100,000 or more

9.0
23.9
44.9
67.6
72.7

1.6
1.3
3.9
7.0
19.7

25.1
38.9
53.7
60.0
39.7

3.1
4.6

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

33.0
54.3
61.8
45.2
24.7
6.8

2.1

62.5
59.7
53.3
34.8
16.5

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

44.1
30.2

5.0
3.5

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

51.2
51.6
18.7
18.2

Housing status
Owner
Renter or other
Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

4.9
8.4
8.3
3.5
1.0

1.2
*

3.2

8.1

8.1

7.4

Median value of holdings for families holding debt (thousands of 1998 dollars)
1.6

2.1

23.4

.6
1.3

2.1

1.6

1.8

2.1
2.7

3.7
7.4

2.2
8.4
21.6
64.1
114.8

1.4
2.0
2.1
1.4
.9
.4

1.6
2.1
3.2
4.2
2.1
4.2

40.0
42.4
22.4
7.4
2.0

1.6

1.3

2.7
1.6

28.6
11.2

2.6
7.4

1.7
2.7
.9
.9

2.1
5.3
3.2
1.6

30.8
44.1
6.4
8.2

7.3
5.3

5.1
1.5

1.6
1.3

3.2
1.6

48.8
5.1

5.6
6.4
6.2
7.6
8.3

2.8
3.2
2.4
*

1.7
1.4
1.6
1.5
1.5

1.6
1.7
2.1
3.2
8.5

6.6
22.5
39.1
37.9
80.0

54.9

31.9

6.4

3.7

19.1
29.7
45.7
69.2
105.2

10.6
19.1
29.7
33.8
42.5

2.7
3.8
6.9
9.5
9.1

3.2
2.3
5.3

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

65.9
64.8
53.1
39.3
20.2
19.3

26.6
33.8
31.9
35.1
35.1
8.5

7.5
5.9
7.6
5.3
5.2
3.6

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

57.4
42.0

35.1
26.6

6.9
5.2

4.0

Current work status of head
Working for someone else ..
Self-employed
Retired
Other not working

59.5
65.9
24.4
47.8

30.8
44.6
35.1

7.3
6.4
4.3
5.2

Housing status
Owner
Renter or other

54.9

31.9
52.0

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

49.8
47.8
55.8
53.1

20.2
26.6
27.9
63.2

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more




81.8

1.5
2.1

6.4
3.6
4.0

8.5

1.2

16.1

Results from the 1998 Survey of Consumer Finances

11.—Continued
B.

1998 Survey of Consumer Finances
Family
characteristic

Home-secured

Other
residential
property

Installment
loans

Other
lines of
credit

Credit
card
balances

Other

Any
debt

Percentage of families holding debt
All families

43.1

5.1

43.7

2.3

44.1

8.8

74.1

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

8.3
21.3
43.7
71.0
73.4

4.1
7.7
16.4

25.7
34.4
50.0
55.0
43.2

1.2
2.9
3.3
2.6

20.6
37.9
49.9
56.7
40.4

3.6
7.0
7.7
12.2
14.8

41.7
63.7
79.6
89.4
87.8

9.6
11.4

81.2
87.6
87.0
76.4
51.4
24.6

Age of head (years)
Less than 35
45-54
55-64
65-74
75 or more

33.2
58.7
58.8
49.4
26.0
11.5

2.0
6.7
6.7
7.8
5.1

60.0
53.3
51.2
37.9
20.2
4.2

2.4
3.6
3.6
1.6

50.7
51.3
52.5
45.7
29.2
11.2

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

46.7
30.7

5.4
4.0

44.3
41.6

2.4
1.9

44.4
43.3

Current work status of head
Working for someone else —
Self-employed
Retired
Other not working

50.8
63.1
18.6
26.8

5.2
10.7
3.1

55.2
46.3
15.8
39.0

2.7
3.7

53.5
47.5
20.9
39.0

10.8
10.7
3.3
7.5

84.6
39.9
65.7

65.1

6.2
2.9

44.3
42.6

3.4

1.8

46.2
40.0

9.3
7.8

79.4
63.5

3.2
4.8
8.9
14.8

47.1
50.0
46.4
34.3
27.2

2.8
2.5
1.7
1.9
2.6

39.5
54.8
48.7
36.9
28,2

9.3
9.2
7.7
7.6
10.8

65.5
81.5
76.8
70.2
75.9

35^14

Housing status
Owner
Renter or other
Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

11.3
47.2
56.2
57.0
58.9

11.1

8.3
4.1
2.0

74.9
71.1

Median value of holdings for families holding debt (thousands of 1998 dollars)
1.7

3.0

33.3

1.1

.6
1.3
2.2
3.8
10.0

27.1
75.0
135.4

2.0
1.1
.7

1.7
3.0
5.0
5.0
4.5
1.7

19.2
55.7
48.4
34.6
11.9
8.0

0.7

2.0
1.1

3.3
1.7

40.0
15.3

2.8
3.8

2.0
2.0
1.2

3.0
6.5
1.9
1.1

35.5
67.9
10.2
12.6

2.0
1.3

4.0
1.3

1.0

1.6

3.0
3.0
1.3

1.7

1.5
2.0
5.0
6.0
20.0

62.0

40.0

8.7

2.5

16.0
34.2
47.0
75.0
123.8

34.0
20.0
42.0
60.0

4.0
6.0
8.0
11.3
15.4

1.1
3.0
2.8
5.0

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 or more

71.0
70.0
68.8
49.4
29.0
21.2

55.0
40.0
40.0
41.0
56.0
29.8

9.1
7.7
10.0
8.3
6.5
8.9

Race or ethnicity of respondent
White non-Hispanic
Nonwhite or Hispanic

62.0
62.0

42.6
30.0

9.0
7.2

Current work status of head
Working for someone else
Self-employed
Retired
Other not working

66.0
74.0
37.0
57.0

37.0
54.0
34.0

11.0

62.0

42.6
27.5

9.5
7.7

2.2
2.8

29.0
22.0
54.0
72.0

8.0
7.8
8.9
10.1
14.7

All families
Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

Housing status
Owner
Renter or other
Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100
NOTE. See note to table 1.




56.5
55.0
59.0
72.0
100.0

1.0

1.4
3.0
4.9

2.8

5.8
6.7

* Ten or fewer observations.

10.0

1.0

1.9
2.4
3.2
1.5
2.0
1.8

1.0

1.8

1.5
2.0

4.1

8.0

60.9

PflUj 6.0

Not applicable.

8.4
28.4
46.2
67.4
98.0

21

22

Federal Reserve Bulletin • January 2000

Between 1995 and 1998, changes in the proportion
of families in different demographic groups holding
debt were mixed. Although the proportion declined
in most groups, increases were appreciable for families with incomes of $100,000 or more, for the 55to-64 age group, and for families headed by the
self-employed. The median amount of debt increased
for most of the demographic groups, and many of the
changes were large.

Mortgages and Other Home Equity Borrowing
on the Primary Residence
Home-secured debt (first and second mortgages and
home equity loans and lines of credit secured by the
primary residence) declined slightly as a share of
total family debt between 1995 and 1998 (table 10).
Nonetheless, the proportion of families with such
debt rose over the period, from 41.0 percent to
43.1 percent (table 11), a level substantially above
the 40.0 percent registered in 1989.24 The proportion
of families holding such debt rose for most groups
in the 1995-98 period. Increases were particularly
notable for families headed by the self-employed
and for families in the top quarter of the net worth
distribution.
While home purchase continues to be the main
purpose of home-secured debt, the use of such borrowing for other purposes has become increasingly
important since the Tax Reform Act of 1986, which
phased out the deductibility of interest payments on
most debt other than that secured by the primary
residence. Moreover, declining interest rates during
most of 1998 strengthened families' incentives that
year to refinance existing mortgages and, by refinancing for more than the existing balance, use the opportunity to obtain funds for other purposes.
For families with home-secured debt, the median
amount of home-secured debt moved up 12.9 percent
over the recent three-year period, while the median
value of primary residences rose 5.4 percent for this
group. Taken together with the fact that the share of
families with home-secured debt rose by more than
the share who were homeowners, this result suggests
that many families may have been using such borrowing to extract equity from their homes. The median
amount of home-secured debt rose for almost every
group, with the increases especially marked among
the top income and net worth groups. The proportion
of families in the nonwhite or Hispanic group bor24. In 1998, 65.1 percent of homeowners had some type of homesecured debt.




rowing against a primary residence remained 16 percentage points below that of other families; however,
the median level of borrowing by the nonwhite or
Hispanic group jumped to the level of the other
families in 1998.
For home equity lines of credit, the amount
included in home-secured debt is only the balance
outstanding at the time of the interview. The use of
home equity credit lines has expanded since 1995,
when 5.1 percent of families had a line and 56.0 percent of those families were drawing funds on it;
in 1998 the figures were 7.0 percent with lines and
63.7 percent drawing on them (not shown in table).

Borrowing on Other Residential Real Estate
Across income and net worth groups, borrowing for
other residential real estate is most prevalent in all the
surveys among families at the upper ends of the
distributions. While the overall proportion of families
having this type of debt rose slightly from 1995 to
1998, the shares of families in the top income and net
worth groups having such debt fell distinctly. At the
same time, for those having this type of debt, the
median amount owed rose in almost every demographic group.

Installment Borrowing
Although the share of installment borrowing in total
family debt rose 1.0 percentage point between 1995
and 1998, its prevalence dropped 2.2 percentage
points, to 43.7 percent; the prevalence of such borrowing stood at 49.4 percent in 1989.25 Over the
recent three-year period, the prevalence declined for
all income groups except the top and bottom and for
all age groups except those between 55 and 74. At
least some of the decline is attributable to the substitution of other types of borrowing and to the growth
of vehicle leasing.
Over the same period, for those with installment
loans the median amount owed on such loans climbed
36.0 percent, to $8,700. The median rose for most
demographic groups, with pronounced increases for
families with incomes of $100,000 or more, for families headed by those aged 75 or older and retirees,
and for the wealthiest 10 percent of families.

25. The term "installment borrowing" in this article describes
consumer loans that typically have fixed payments and a fixed term.
Examples are automobile loans, student loans, and loans for furniture,
appliances, and other durable consumer goods.

Results from the 1998 Survey of Consumer Finances

Borrowing on Other Lines of Credit
The use of personal lines of credit other than home
equity lines rebounded slightly from 1995 to 1998.
Still, only 2.3 percent of families used such debt in
1998, and usage was similarly thin across demographic groups.26 At the same time, among those
borrowers the median amount borrowed declined
32.4 percent, with mixed changes across family
groups.
Credit Card Borrowing
The proportion of families that had an outstanding
balance on any of their credit cards after paying their
most recent bills dropped 3.2 percentage points
from 1995 to 1998, to 44.1 percent.27 The decline
was shared by all of the demographic groups except
for families headed by those aged 55 to 64, by the
self-employed, and by those neither working nor
retired and families in the highest net worth group.
Among families having balances outstanding on
any of their credit cards, the median total balances
owed by the family hardly changed over the period,
standing at $1,700 in 1998. Nonetheless, increases
were much more common than declines across the
demographic groups.
Bank-type cards are the most widely held and most
widely accepted credit cards. In 1998, 67.6 percent of
families had a bank-type card—up from 66.5 percent
in 1995 (not shown in table). Of families with such
cards, the share carrying a balance edged down a bit,
from 56.0 percent in 1995 to 54.8 percent in 1998;
this result suggests some increase in the relative
importance of convenience use of bank-type cards
over the period (that is, use in which the balance is
paid in full each month).
Among families with bank-type cards, the median
total credit limit on all their bank-type cards rose
from $8,700 in 1995 to $10,000 in 1998. Among
families with balances on their cards, the median
limits were somewhat lower, at $8,000 in 1995 and
$9,500 in 1998; the median fraction of the available
credit limit used by this group was about 28 percent
in 1998, up slightly from 24 percent in 1995. The
survey asks for the interest rate paid on the card on
which the family has the largest balance, or on the

26. In 1998, another 0.9 percent of all families had such credit lines
available but had no outstanding balance at the time of the interview.
27. The debt could have been on bank-type cards (such as Visa,
Mastercard, Discover, and Optima), store and gasoline company cards,
so-called travel and entertainment cards (such as American Express
and Diners Club), and other credit cards.




23

newest card for families without balances. In both
1995 and 1998, the median interest rate reported was
15 percent; the result is nearly the same if attention is
restricted only to families borrowing on their cards.
Other Debt
Other borrowing (loans on insurance policies, loans
against pension accounts, borrowing on a margin
account, and unclassified loans) was slightly more
prevalent in 1998 than in 1995. Increases and
decreases were scattered across the demographic
groups. At the same time, for borrowers, the median
amount of other debt owed rose from $2,100 to
$3,000. On a percentage basis, most of the changes
across the demographic groups were sizable. The
increase in the amount of borrowing was driven
by somewhat greater borrowing against pension
accounts and cash value life insurance; while the
share of families reporting balances outstanding on
margin loans ticked up from 0.2 percent in 1995 to
0.8 percent in 1998, the median amount of such loans
actually slipped a bit over the period.

Reasons for Borrowing
The SCF provides detailed information on the reasons that families borrow money (table 12).28 One
subtle problem with the use of these data is that, even
though money is borrowed for a particular purpose,
it may be used to offset some other use of funds. For
example, a family may have sufficient assets to purchase a home without using a mortgage but may
instead choose to finance the purchase to free existing
funds for another purpose. Thus, trends in the data
can be only suggestive of the underlying use of funds
by families.
The survey shows that the proportion of total borrowing directly attributable to home purchase fell
2.3 percentage points between 1995 and 1998,
although the 68.1 percent level seen in 1998 was still
above that observed in 1989 or 1992. Almost offset28. The survey does not collect exhaustive detail on the uses of
borrowed funds. In the case of credit cards, it was deemed impractical
to ask about the purposes of borrowing. For the analysis here, credit
card debt is included in the category "goods and services." In the case
of first mortgages taken out when a property was obtained, it was
assumed that the funds were used for the purchase of the home. The
surveys before 1995 did not collect information on the use of funds
from refinancing a first mortgage; in the table, such borrowing is
attributed to home purchase in all the years shown. The surveys before
1998 did not collect information on the uses of funds borrowed from
pension accounts; the table reports borrowing from pension accounts
as a separate category, unclassified as to purpose.

24

Federal Reserve Bulletin • January 2000

12. Amount of debt of all families, distributed by purpose
of debt, 1989, 1992, 1995, and 1998 surveys
Percent

13. Amount of debt of all families, distributed
by type of lending institution, 1989, 1992, 1995,
and 1998 surveys
Percent

Purpose of debt

1989

1992

1995

1998

63.5
2.5
9.8
3.8
10.4
5.9
2.3

67.4
2.5
10.8
1.8
7.0
5.6
2.8

70.4
2.0
8.2
1.0
7.5
5.7
2.7

68.1
2.0
7.8
3.2
7.5
6.0
3.4

.2
1.5
100

.1
2.1
100

.2
2.2
100

.4
1.5
100

Type of institution
Home purchase
Home improvement
Other residential property
Investments, excluding real estate .
Vehicles
Goods and services
Education
Unclassifiable loans against
pension accounts
Other
Total
NOTE. See note to table 1.

1989

Commercial bank
Savings and loan or savings bank .
Credit union
Finance or loan company
Mortgage or real estate lender
Individual lender
Other nonfinancial
Government
Credit card and store card
Pension account
Other
Total

...

1992

1995

1998

28.2
26.1
4.0
3.7
2.2
21.2
6.8
1.6
2.0
2.8
.2
1.1
100

33.3
16.8
4.0
3.2
3.1
27.1
4.3
1.6
2.0
3.3
.1
1.1
100

35.1
10.8
4.5
3.2
1.9
32.7
5.0
.8
1.3
3.9
.2
.7
100

32.6
9.6
4.2
4.2
3.7
35.9
3.4
1.3
.6
3.8
.4
.3
100

NOTE. See note to table 1.

ting this decline was an increase in borrowing for
investment purposes; in light of the rising stock
market and strong business conditions, some of this
borrowing may include borrowing to invest in equities or to start a new business. The shares of borrowing for education, borrowing for purchases of goods
and services, and borrowing from pension accounts
all rose. Borrowing for other residential real estate
and for miscellaneous purposes both declined.
First mortgages on primary residences may be used
to purchase a home or to extract equity for other
purposes. Borrowing for the initial home purchase
accounts for the great majority of debt owed on first
mortgages. However, in 1998 approximately 41 percent of all families with first mortgages had refinanced their home at some time, and 26.1 percent of

them had extracted some of their home equity (not
shown in table). Among families that removed some
equity when they refinanced, the major uses reported
for the funds were home improvements or repairs
(43.1 percent), payment of bills or bill consolidation
(20.8 percent), investments (7.8 percent), education
(6.4 percent), and vehicle purchases (4.5 percent).
Choice of Lenders
Reflecting ongoing changes in markets for financial
services, the mix of institutions that families used for
borrowing shifted markedly (table 13). Continuing a
secular decline, the share of family borrowing attrib-

14. Ratio of debt payments to family income, share of debtors with ratio above 40 percent, and share of debtors with any
payment sixty days or more past due, by selected family characteristics, 1989, 1992, 1995, and 1998 surveys
Percent
Aggregate

Family
characteristic

Median

1989

1992

1995

1998

1989

1992

1995

1998

All families

12.7

14.1

13.6

14.5

15.9

16.1

16.1

17.6

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

16.2
12.5
16.0
16.5
8.0

16.8
14.8
16.5
15.3
10.7

19.5
16.1
16.2
16.0
8.7

19.4
16.2
17.4
17.4
10.0

23.0
16.4
16.1
16.2
11.8

19.5
15.3
16.3
17.0
13.7

15.4
17.7
16.6
16.9
11.1

20.3
17.8
18.1
18.3
13.1

Age of head (years)
Less than 35
35^14
45-54
55-64
65-74
75 and more

18.0
16.7
12.2
9.0
5.5
2.1

16.5
17.8
14.6
11.4
7.8
3.4

17.1
16.6
14.6
11.5
6.9
2.9

16.6
17.0
16.3
12.9
8.5
3.9

17.3
17.9
16.2
12.6
11.1
9.8

16.6
19.0
16.1
14.5
10.6
5.0

16.9
18.1
16.6
14.0
12.2
3.4

17.4
19.4
17.8
16.7
13.9
8.9

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100

11.5
16.0
17.8
14.6
7.3

10.9
17.1
17.8
14.3
10.5

12.5
17.9
17.3
13.5
9.1

14.0
19.0
17.7
14.4
10.3

11.2
16.9
18.5
15.2
12.2

10.6
19.0
18.3
16.0
14.0

12.1
18.6
18.3
15.3
13.3

14.5
19.0
19.7
17.6
14.5




Results from the 1998 Survey of Consumer Finances

utable to savings and loan institutions and savings
banks moved down 1.2 percentage points from 1995
to 1998. After rising in earlier surveys, the share of
lending attributable to commercial banks also
declined, by 2.5 percentage points over the period.
The share of families' debts held by mortgage and
real estate lenders rose 3.2 percentage points, the
share held by finance companies ticked up by 1 percentage point, and the share held by brokerages
moved up 1.8 percentage points.29 The shares of
other nonfinancial lenders and of pension accounts
also rose. At the same time, the importance of lending by credit unions, individuals, government, credit
card lenders, and other lenders all declined.
Debt Burden
The rise in family indebtedness over the past decade
has raised a concern that the debt might become
excessively burdensome to families. The ability of
families to service their loans is a function of two
factors: the terms of the loan payments and the
income and assets that families have available to
meet those payments. In planning their borrowing,
families make assumptions about their future ability
to repay the loans. If events are sufficiently contrary
to their assumptions, the resulting defaults might
induce restraint in spending and a broader pattern of
financial distress in the economy.
29. In this analysis, the mortgages reported to be held by finance
companies are classified with mortgage and real estate lenders.

Interest rates on many types of loans fell somewhat
toward the end of the 1995-98 period. Over the
three-year period, family income rose broadly, the
proportion of families with any type of debt fell
slightly, but the median amount owed increased substantially.30 The net effect of all these movements on
the ability of families to service their loans is not
immediately obvious.
The ratio of total family debt payments to total
family income is a common measure of "debt burden." Most often, this ratio is computed from aggregate data as the ratio of the total debt payments of
all families to the total income of all families. Estimates of this ratio constructed from the SCF data rose
from 13.6 percent in 1995 to 14.5 percent in 1998
(table 14). This figure surpasses the 14.1 percent
level recorded in the 1992 SCF, the previous high
point since 1989.
The SCF data can also be used to compute the ratio
by demographic group. With the exception of families in the less-than-35 age group, the ratio of payments to income held steady or rose between 1995
and 1998 for every group in the table.31 The relative
size of the increase was particularly notable for families with incomes of $100,000 or more and those in
the 65-or-older age groups.
30. As noted above, the SCF measures before-tax cash family
income for the calendar year preceding the survey.
31. If the calculation of the ratio is limited to families that actually
had debt, the results show very similar patterns of change between
1995 and 1998.

14.—Continued
Percent
Any payment sixty days
or more past due

Ratio above 40 percent

Family
characteristic
1989

1992

1995

1998

1989

1992

1995

All families

10.1

10.9

10.5

12.7

7.3

6.0

7.1

Income (1998 dollars)
Less than 10,000
10,000-24,999
25,000-49,999
50,000-99,999
100,000 or more

28.6
15.0
9.1
4.9
1.8

28.4
15.5
9.6
4.4
2.2

27.6
17.3

32.0
19.9
13.8
5.7

20.9
12.2
4.8
4.5
1.2

11.6
9.3
6.3
2.2
.5

8.4
11.3
8.6
2.7
1.3

15.1
12.3
9.2
4.5
1.5

Age of head (years)
Less than 35
35-44
45-54
55-64
65-74
75 and more

12.7
7.8
10.9
8.6
7.7
14.1

10.5
11.6
10.2
14.3
7.8
8.7

11.0
9.2
10.4
14.5
7.8
8.9

11.6
11.6
13.9
17.5
20.9

11.2
6.4
4.5
7.4
3.3
1.2

8.3
6.8
5.4
4.7
1.0

8.7
7.7
7.4
3.2
5.3
5.4

11.1
8.4
7.4
7.5
3.1
1.1

7.7
11.9

9.6
11.9
11.8

11.1

11.9
14.8
12.5
11.5
11.5

17.7
7.6
3.8
2.2
1.6

14.4
5.5
3.1
2.3

14.5
8.2
4.4
2.4
.7

16.2
9.8
5.5
1.0
2.4

Percentiles of net worth
Less than 25
25-49.9
50-74.9
75-89.9
90-100
NOTE. See note to table 1.




11.1

10.1
7.8

10.1

10.0

8.0

4.2
1.7

9.7

10.8
8.7
12.4

25

2.1

11.8

1.8

1.8

1998

26

Federal Reserve Bulletin • January 2000

While the aggregate ratios indicate the trends in
debt burdens for families and groups overall, the SCF
data also make it possible to look at the ratio of total
loan payments to income for typical borrowers.
Among families with debt, the median ratio of payments to income stood at 15.9 percent in 1989; in
1992 and 1995 it was only marginally higher, but in
1998 it jumped to 17.6 percent. The median ratio also
rose for almost every demographic group. The most
striking increases were among families with incomes
of less than $10,000 and those in the 75-or-older
group.
Although both the aggregate and median measures
of debt burden increased over the 1995-98 period,
the levels of these ratios were still well below those
often considered to be indicative of financial distress
for individual borrowers. However, these measures
may not fully reflect problems among families with
high levels of debt. One indicator of the prevalence
of financial distress is the proportion of families
whose debt payments represent more than 40 percent
of their income. The fraction of such families, which
was 10.1 percent in 1989, rose appreciably between
1995 and 1998, from 10.5 percent to 12.7 percent.
The measure rose for most demographic groups, with
particularly large increases among families with
incomes below $50,000 and those in the 65-or-older
age groups.
If a family has any sort of debt at the time of the
survey, the SCF asks whether any payments have
been late by sixty days or more at least once in the
preceding year.32 The data show that the fraction of
families with debt who had been late rose from
7.1 percent in 1995 to 8.1 percent in 1998—a high
since 1989. Over the three-year period, the proportion rose notably in the under-$ 10,000 income group
and the 55-64 age group and decreased in the oldest
two age groups.

groups considered in the article, but they declined for
a few groups. Underlying the rise in net worth was
wider ownership of many types of assets combined
with higher valuations in key asset markets and a
lesser rise in levels of indebtedness.
Ownership of primary residences and retirement
accounts increased notably between 1995 and 1998.
In addition, the proportion of families owning publicly traded stocks (either directly or through mutual
funds, retirement accounts, or other managed assets)
jumped more than 8 percentage points, with substantial gains across income and age groups. For some
demographic groups, increased ownership of assets
corresponded to declines in median holdings, most
likely because the "new" holders of these assets had
relatively small amounts.
The proportion of families with debt declined
slightly over the period, but the median amount owed
jumped more than 42 percent. The median amount of
mortgage debt grew strongly, although the overall
fraction of debt accounted for by mortgages declined.
On net, the ratio of debts to assets for all families
declined a bit. However, some indicators of debt
burden, such as the median ratio of debt payments to
income among debtors, showed substantial increases.
Increases in overall mean and median income were
less dramatic than those for net worth, but for the first
time since their low points observed in the 1992 SCF,
the mean and median pushed above their 1989 levels.
At least some part of the recent increases must be
attributable to capital gains from the sale of assets.
However, the 2.5 percentage point drop in the fraction of families with incomes below $10,000 suggests that improved employment and earnings for
some families were also key factors.

SUMMARY

The 1998 data used here represent the best estimates
at the current advanced stage of data processing, but
they may differ in some ways from the final version.
Data from the 1998 SCF, suitably altered to protect
the privacy of respondents, will be available in February 2000 at www.federalreserve.gov/pubs/oss/oss2/
98/scf98home.html.
The data used in this article from the 1989, 1992,
and 1995 SCFs are derived from the final versions of
those surveys. Results reported in this article may
differ in some details from results reported earlier
either because of additional data processing, revisions to the survey weights, or adjustments for
inflation. Further discussion of the methodology

Between 1995 and 1998, the mean and median net
worth of U.S. families rose considerably. These measures of net worth rose for most of the demographic

32. The measure of late payments in the SCF differs conceptually
from the aggregate delinquency rate in some important respects.
Whereas the delinquency rate records late payments on each loan in a
given period, the survey asks families whether they have been late or
behind in any of their payments during the past year. Thus, for
example, a family with three delinquent loans would be counted three
times in the aggregate data but only once in the SCF.




APPENDIX: SURVEY PROCEDURES AND
STATISTICAL MEASURES

Results from the 1998 Survey of Consumer Finances

underlying the SCF is available at the above web
address.
Generally, the survey estimates correspond fairly
well to external estimates. Comparisons of SCF estimates with aggregate data from the Federal Reserve
flow of funds accounts suggest that when adjustments
are made to achieve conceptual comparability, these
aggregate estimates and the SCF estimates are usually very close.33 In general, only medians from the
SCF can be compared with those of other surveys
because of the special design of the SCF sample.

Definition of Family in the SCF
The definition of "family" used throughout this
article differs from that typically used in other government studies. In the SCF, a household unit is
divided into a "primary economic unit" (PEU)—the
family—and everyone else in the household. The
PEU is intended to be the economically dominant
single individual or couple (whether married or living
together as partners) and all other persons living
in the household who are financially dependent on
that person or those persons. In other government
studies—for example, those of the Bureau of the
Census—an individual is not considered a family. In
this report, the head of the family is taken to be the
central individual in a PEU without a core couple, the
male in a mixed-sex core couple of the PEU, or the
older person in a same-sex core couple. The term
"head" used in this article is an artifact of the organization of the data and implies no judgment about the
actual structure of families.

The Sampling

Techniques

The survey is expected to provide a core set of data
on family assets and liabilities. The major aspects of
the sample design that address this requirement have
been fixed since 1989. The SCF combines two techniques for random sampling.34 First, a standard,
multistage area-probability sample (a geographically
based random sample) is selected to provide good
coverage of characteristics, such as home ownership,
that are broadly distributed in the population.
33. For the details of this comparison, see Rochelle L. Antoniewicz, A Comparison of the Household Sector from the Flow of Funds
Accounts and the Survey of Consumer Finances, Finance and Economics Discussion Series 1996-26 (Board of Governors of the Federal
Reserve System, June 1996).
34. For additional technical details, see Kennickell and Woodburn,
"Consistent Weight Design."




27

Second, a supplemental sample is selected to disproportionately include wealthy families, who hold
a disproportionately large share of such thinly held
assets as noncorporate businesses and tax-exempt
bonds. This sample is drawn from a list of statistical
records derived from tax data. These records are
made available for this purpose under strict rules
governing confidentiality, the rights of potential
respondents to refuse participation in the survey, and
the types of information that can be made available.
Of the 4,299 completed interviews in the 1995
survey, 2,780 families came from the area-probability
sample, and 1,519 were from the list sample; the
comparable figures for the 4,309 cases completed in
1998 are 2,813 families from the area-probability
sample and 1,496 from the list sample.35

The Interviews
Since 1989, only minor changes to the SCF questionnaires have been made, and then only in response to
financial innovations or to gather additional information on the structure of family finances. Thus, the
information obtained by the survey is highly comparable over this period.
The generosity of families in giving their time for
interviews has been crucial to the success of the SCF.
In the 1998 SCF, the median interview required about
VA hours. However, for some particularly complicated cases, the amount of time needed was substantially more than 2 hours. The role of interviewers in
this effort is also critical: Without their dedication
and perseverance, the survey would not have been
possible.
Data for the 1995 and 1998 surveys were collected
by the National Opinion Research Center at the University of Chicago (NORC) between the months of
June and December in each of the two years. The
great majority of interviews were obtained in-person,
although interviewers were allowed to conduct telephone interviews if that was more convenient for the
respondent. In both years, interviewers used a program running on laptop computers to administer the
survey and collect the data.
The use of computer-assisted personal interviewing (CAPI) has the great advantage of enforcing
systematic collection of data across all cases. In the
implementation of CAPI for the SCF, the program
was tailored to allow the collection of partial informa-

35. The 1995 SCF represents 99.0 million families, and the 1998
SCF represents 102.6 million families.

28

Federal Reserve Bulletin • January 2000

tion in the form of ranges whenever a respondent
either did not know or did not want to reveal an exact
dollar figure.36
Response rates differ strongly in the two parts of
the SCF sample. In both 1995 and 1998 about 70 percent of households selected into the area-probability
sample actually completed interviews. The overall
response rate in the list sample was about 35 percent;
in the part of the list-sample likely containing the
wealthiest families, the response rate was only about
10 percent. Analysis of the data confirms that the
tendency to refuse participation is highly correlated
with net worth.

Nonresponse—either complete nonresponse to the
survey or nonresponse to selected items within a
survey—may be another important source of error.
As noted in more detail below, the SCF uses weighting to adjust for differential nonresponse to the survey. To deal with missing information on individual
questions within the interview, the SCF uses statistical methods to impute missing data.38

Weighting

Errors may be introduced into survey results at many
stages. Sampling error, the variability expected to
occur in estimates based on a sample instead of a
census, is a particularly important source of error.
Such error may be reduced either by increasing
the size of a sample or, as is done in the SCF, by
designing the sample to reduce important sources of
variability. Sampling error can be estimated, and for
this article we use replication methods to do so.
Replication methods draw samples from the set of
actual respondents in a way that incorporates the
important dimensions of the original sample design.
In the SCF, weights were computed for all the cases
in each of the selected replicates. For each statistic
for which standard errors are reported in this article,
the weighted statistic is estimated using the replicate
samples, and a measure of the variability of these
estimates is combined with a measure of the variability due to imputation (see below) to yield the standard error.37
In addition to errors of sampling, interviewers may
introduce errors by failing to follow the survey protocol or misunderstanding a respondent's answers. SCF
interviewers are given lengthy, project-specific training to minimize such problems. Respondents may
introduce error by interpreting a question in a sense
different from that intended by the survey. For the
SCF, extensive pre-testing of questions and thorough
review of the data tends to reduce this source of
error.

To provide a measure of the frequency with which
families similar to the sample families could be
expected to be found in the population of all families,
analysis weights are computed for each case to
account for both the systematic properties of the
design and for differential patterns of nonresponse.
The SCF response rates are low by the standards of
other major government surveys. However, unlike
other surveys, which almost certainly also have
differential nonresponse by wealthy households, the
SCF has the means to adjust for such nonresponse. A
major part of SCF research is devoted to the evaluation of nonresponse and adjustments for nonresponse
in the analysis weights for the survey.39
Preparations for the description of the 1998 SCF
data included a detailed analysis of the assets and
liabilities of families classified by a large number
of characteristics. At this stage, it became clear that
the 1998 SCF estimates of home ownership rates for
nonwhites and Hispanics were substantially understating the levels observed in other surveys, particularly the Current Population Survey (CPS). The CPS
was already used in weighting adjustments to benchmark the overall home ownership rate in the SCF. An
examination of data from the earlier SCFs indicated
problems in other years as well, but the directions of
the differences were not consistent.
Because of the importance of SCF data in assessing the financial behavior and well-being of nonwhites and Hispanics, and because of the importance
of home ownership as an indicator of key financial
relationships, it was decided to add a new adjustment
to the SCF weighting design to bring the survey's
estimates of home ownership for nonwhites and His-

36. For a review of the SCF experience in the collection of
range data, see Arthur B. Kennickell, "Using Range Techniques
with CAPI in the 1995 Survey of Consumer Finances" (Board of
Governors of the Federal Reserve System, January 1997). Available at
www.federalreserve.gov/pubs/oss/oss2/method.html.
37. See Kennickell and Woodburn, "Consistent Weight Design."

38. For a description of the imputation procedures used in the SCF,
see Arthur B. Kennickell, "Multiple Imputation in the Survey of
Consumer Finances," in Proceedings of the Section on Business and
Economic Statistics (1998 Annual Meetings of the American Statistical Association, Dallas, August), pp. 11-20.
39. For a description of the weighting methodology, see Kennickell
and Woodburn, "Consistent Weight Design."

Sources of Error




Results from the 1998 Survey of Consumer Finances

panics more in line with the CPS estimates.40 Such
adjusted weights were computed for the 1989, 1992,
1995, and 1998 surveys, and these weights were used
in all calculations reported in this article. These
weights are available in the public version of the SCF
data sets as X42001.
40. Details of the adjustments are given in Arthur B. Kennickell,
"Revisions to the SCF Weighting Methodology: Accounting for
Race/Ethnicity and Homeownership" (Board of Governors of
the Federal Reserve System, December 1999). Available at
www.federalreserve.gov/pubs/oss/oss2/method.html.




29

For this article, the weights of a small number of
cases have been further adjusted to diminish the
possibility that the results reported could be unduly
affected by influential observations. Such influential
observations were detected using a graphical technique to inspect the weighted distribution of the
underlying data. Most of the cases found were holders of an unusual asset or liability or members of
demographic groups in which such holdings were
rare. These weight adjustments are likely to make the
key findings in the article more robust.
•

30

Staff Studies
The staff members of the Board of Governors of the
Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range of
economic and financial subjects. From time to time
the studies that are of general interest are published
in the Staff Studies series and summarized in the
Federal Reserve Bulletin. The analyses and conclusions set forth are those of the authors and do not

necessarily indicate concurrence by the Board of
Governors, by the Federal Reserve Banks, or by
members of their staffs.
Single copies of the full text of each study are
available without charge. The titles available are
shown under "Staff Studies" in the list of Federal
Reserve Board publications at the back of each
Bulletin.

STUDY SUMMARY

USING SUBORDINATED DEBT AS AN INSTRUMENT OF MARKET

DISCIPLINE

Federal Reserve System Study Group on Subordinated Notes and Debentures
A growing number of observers have proposed using
subordinated notes and debentures (SND) as a way of
increasing market discipline on banks and banking
organizations. Although policy proposals vary, all
would mandate that banks subject to the policy must
issue and maintain a minimum amount of SND. In
recent years, the perceived need for more market
discipline has derived primarily from the realization
that the increasing size and complexity of the major
banking organizations has made the supervisor's job
of protecting bank safety and soundness ever more
difficult. A second important motivation is the desire
to find market-based ways of better insulating the
banking system from systemic risk. In light of the
ongoing interest in using SND as an instrument of
market discipline, in mid-1998 staff of the Federal
Reserve System undertook a study of the issues surrounding an SND policy.1
The study begins by carefully defining market discipline, discusses the motivation for and theory
behind a subordinated debt policy, and presents an
extensive summary of existing policy proposals. The
study then reviews the economic literature on the
1. This study was completed in May 1999, before enactment of the
Gramm-Leach-Bliley Act in November 1999. That act requires that
the Federal Reserve Board and the U.S. Department of the Treasury
conduct a joint study of the feasibility and appropriateness of requiring large insured depository institutions and depository holding companies to hold a portion of their capital in subordinated debt. The joint
study must be submitted to the Congress within eighteen months of
the date of enactment.




potential for SND to exert market discipline on banks
and presents a wide range of new evidence acquired
by the study group. This includes information gathered from extensive interviews with market participants, new econometric work, and the experience
of bank supervisors. The third major section of the
study analyzes many characteristics that an SND
policy could have, in terms of both their contribution
to market discipline and their operational feasibility.
These potential characteristics include the types of
institutions that should be subject to an SND policy;
the amount that should be required; the maturity,
optionality, interest rate cap, and other possible features of the debt instrument; the frequency of issuance; and the way a transition period might work.
The study also includes appendixes that (1) provide a
detailed summary of the study group's interviews
with market participants, (2) examine the potential
for banks to avoid SND discipline, (3) analyze the
potential macroeconomic effects of an SND policy,
and (4) review the Argentine experience with implementing a mandatory subordinated debt policy.
Because the overall purpose of the study is to
conduct a broad review and evaluation of the issues,
no policy conclusions are advanced. However, the
overall tone of the study suggests that a properly
designed SND policy is operationally feasible and
would likely impose significant additional market
discipline on the banking institutions to which it
applied. In addition, the study makes clear that

31

assessment of a policy proposal would be helped
greatly by additional research in several areas: for
example, the marginal costs and benefits of required
SND issuance relative to those of the existing subordinated debt market and the potential costs and bene-




fits of using the existing SND market, along with
existing markets for bank equity and other uninsured
liabilities, to aid in bank supervisory surveillance
activities.
•

32

Industrial Production and Capacity Utilization
for November 1999
total industry was unchanged at 81.0 percent, a level
1 percentage point below its 1967-98 average.

Released for publication December 15
Industrial production advanced 0.3 percent in
November after a 0.8 percent increase in October. At
139.5 percent of its 1992 average, industrial production in November was 4.3 percent higher than in
November 1998. The rate of capacity utilization for

MARKET

GROUPS

The output of consumer goods ticked up 0.1 percent
in November after having risen 1.6 percent in Octo-

Industrial production and capacity utilization
Ratio scale, 1 9 9 2 = 100
_

Industrial production

Percent of capacity
Capacity utilization

140
Manufacturing

-

_
Total industry

-

_

130
A/

-

Total industry

85

120
110
»

Manufacturing

VV^J*

100
1

1

1

1990

1

1

1992

1994

1

1

1996

1

1

1

1

1

1988

1998

1

1

1990

1

1

1

1

1994

1992

1

1

1

1998

1996

Industrial production, market groups
Ratio scale, 1992 = 100

Ratio scale, 1992 = 100
155

Consumer goods

155

Intermediate products

145

-

_

Ajsp
Durable

y

—

f

-

135

—

Vy

125

-

—

—

—
Construction supplies

V

i

i

i

i

115

115
105
Business supplies

95
1

1

1

1

95
1

1

1

1

1

Ratio scale, 1992 = 100

1990

1992

1994

1996

1998

1

1

1

1

1

Ratio scale, 1992 = 100

1990

1992

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




175

ff*^

105
Nondurable
i

145
135

1994

1996

1998

33

Industrial p r o d u c t i o n and c a p a c i t y utilization, N o v e m b e r 1 9 9 9
Industrial production, index, 1992=100
Percentage change
Category

1999
19991
Aug.

r

Sept.

r

Oct.

r

Total

137.7

138.0

139.1

Nov. P

Aug.'

Sept.

r

Oct.

r

Nov. P

139.5

Previous estimate

137.6

137.6

127.6
117.6
173.9
132.9
154.6

127.5
116.9
173.8
134.0
155.6

128.8
118.8
174.9
135.0
156.3

129.0
118.9
175.4
136.0
157.3

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

142.5
174.4
111.5
98.5
117.8

142.9
174.9
111.8
98.4
116.9

144.0
176.1
112.8
99.2
119.2

4.3

138.5

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

Nov. 1998
to
Nov. 1999

144.6
177.0
113.2
99.9
116.4

1.1
1.6

3.1
2.8
5.0
4.4
6.3

.6

.4
.3
.4

.7
.9

.8

.8

-1.7

1.9

.5
.6
.3
.7
-2.3

4.6
7.0
1.4
-1.5
5.0

Capacity utilization, percent
1998
Average,
1967-98

Low,
1982

High,
1988-8'

1999

Nov.
Total

71.1

85.4

Sept. r

Oct.

Nov. P

80.9

80.7

80.6

81.0

81.0

4.2

80.6

82.1

Aug. r

80.4

80.7

79.7
78.8
82.8
81.9
92.2

79.7
78.7
82.8
81.9
91.4

80.0
79.1
83.0
82.6
93.0

80.1
79.1
83.3
83.2
90.8

4.7
5.6
2.4
-.2
1.4

Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities

81.1
80.5
82.4
87.5
87.4

69.0
70.4
66.2
80.3
75.9

85.7
84.2
88.9
88.0
92.6

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

ber. The production of durable consumer goods fell
0.3 percent, pulled down by a drop in home appliances and televisions. After having advanced nearly
Wi percent in October, the output of nondurable
non-energy consumer goods rose 3A percent, led by
increases in food, tobacco, and consumer chemical
production. A 3.6 percent decline in the output of
energy products reflected an unusually warm November as well as disruptions at a couple of petroleum
refineries.
The production of business equipment increased
for a second month; gains in information processing
equipment and other equipment offset decreases in
industrial and transit equipment. Within the information processing group, the output of computers
increased 2.1 percent, a step down from the high
rates of growth seen recently. Within the "other
equipment" category, farm machinery posted a large
increase after having fallen much more sharply
during the past spring and summer. The output of
transit equipment was once again constrained by a



80.2
79.4
82.6
84.2
87.6

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

drop in the production of commercial aircraft and
parts.
The production of construction supplies rose
3
/4 percent for the third month in a row, to a level
4V2 percent higher than in November 1998. The
output of materials increased 0.6 percent, a rise similar to the gains posted in the previous two months.
Sizable increases in the production of steel and semiconductors (the output of which has accelerated in
the past two months) lifted the production of durable
goods materials 1.2 percent in November. The output
of nondurable goods materials, which had jumped
nearly 1 percent in October, edged up 0.1 percent.

INDUSTRY

GROUPS

Manufacturing output rose V percent in November
2
after a 3A percent gain in October. The increase in the
output of durables was led by gains at makers of
primary metals (particularly iron and steel), motor

34

Federal Reserve Bulletin • January 2000

vehicles and parts, computers, semiconductors, and
communications equipment. While most other durable goods industries recorded increases, the output
of commercial aircraft and construction machinery
declined noticeably. The ongoing contraction in the
production of commercial aircraft reduced the output
of aerospace and miscellaneous transportation equipment in November to a level about 13 percent below
that of November 1998.
Production in nondurable manufacturing increased
for a fourth month after earlier weakness; the level
of production for nondurable manufacturing is
1.4 percent higher than a year earlier. Among nondurables, food production increased nearly 1 percent
for a second month, as did chemicals and products. Losses were posted by the petroleum products, textile, apparel, and printing and publishing
industries.
The factory operating rate edged up 0.1 percentage
point, to 80.1 percent, the highest level since November 1998. The utilization rate for durable manufacturing was a bit above its 1967-98 average, while the
rate for nondurable manufacturing industries was
well below its average.
The output at utilities fell 2lA percent in November; mine production, which was boosted by an
increase in oil and gas well drilling, increased for the
second straight month.

REVISION OF INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION

On November 30, 1999, the Federal Reserve Board
published a revision to the index of industrial production (IP) and the related measures of capacity and
capacity utilization for the period from January 1992
to October 1999. The updated measures reflect both
the incorporation of newly available, more comprehensive source data typical of annual revisions and,
for some series, the introduction of improved methods for compiling the series. The new source data are
for recent years, primarily 1997 and 1998, and the
modified methods affect data from 1992 onward.
In addition, the supplementary series on the gross
value of products leaving the industrial sector are




now expressed in 1996 dollars; these series begin
in 1977.
The updated IP measures include some annual data
from the Census Bureau's 1997 Census of Manufactures and from selected editions of its 1998 Current
Industrial Reports. Annual data from the U.S. Geological Survey on metallic and nonmetallic minerals
(except fuels) for 1997 and 1998 are also introduced.
The updating includes revisions to the monthly indicator for each industry (either physical product data,
production worker hours, or electric power usage)
and revised seasonal factors.
The revision introduced improved measures of
production for computers and office equipment
(SIC 357) and motor vehicles (SIC 3711, 3). The new
monthly measure for computers is derived from
detailed information on the major products produced
by the industry. For example, from 1994 to 1998,
quarterly data on the physical quantity and average
unit values of about 1,100 distinct models of personal
computers, notebooks, servers, and workstations are
used to construct the new IP index for computers;
previously, monthly electric power use by the industry was used as the within-year indicator of production. The new measures of motor vehicle production
incorporate price weights for the different models of
light vehicles; previously, all autos and light trucks
were weighted equally in compiling an aggregate
figure. In addition, the monthly production indicators
for bolts and fasteners (SIC 345) and for metalworking machinery (SIC 354) were changed from electric
power use to production worker hours.
Capacity and capacity utilization rates have been
revised to incorporate preliminary data from the Census Bureau's 1998 Survey of Plant Capacity, which
covers manufacturing, along with other new data on
capacity from the U.S. Geological Survey, the Department of Energy, and other organizations.
The revision is available on the Board's web site,
at www.federalreserve.gov/releases/gl7, and on diskettes from Publications Services (telephone 202-4523245). The revised data are also available through the
STAT-USA web site of the Department of Commerce
(www.stat-usa.gov). Further information on these
revisions is available from the Board's Industrial
Output Section (telephone 202-452-3197).
•

35

Statement to the Congress
Statement by Richard A. Small, Assistant Director,
Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve System,
before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs, U.S.
Senate, November 10, 1999

I am pleased to appear before the Permanent Subcommittee on Investigations to discuss the Federal
Reserve's role in the government's efforts to detect
and deter money laundering and other financial
crimes, particularly as these issues relate to the private banking operations of financial institutions.
You have asked the Federal Reserve to address
several matters, including the Federal Reserve's
review of private banking activities; the extent to
which private banking is vulnerable to money laundering and what private banking activities raise concerns in this regard; the Federal Reserve's experience
in obtaining information from U.S. banks that conduct private banking activities outside the United
States; and any recommendations or comments
the Federal Reserve may have with regard to the
strengthening of anti-money-laundering controls for
private banking or on pending legislation. You have
also asked us to comment on the operations of a
specific banking organization. I will address each of
these matters; however, I am not at liberty to discuss
the activities of any one organization because of the
confidentiality of examination findings that must be
maintained.
In order to better understand the money laundering
issues related to private banking, it would be very
useful to first provide you with some background
information on what we consider to be private banking and the way in which private banks operate. But
first, let me start by stating that, as a bank supervisor,
of primary interest to the Federal Reserve is the need
to ensure that banking organizations operate in a safe
and sound manner and have proper internal control
and audit infrastructures to support effective compliance with necessary laws and regulations. A key
component of internal controls and procedures is
effective anti-money-laundering procedures. Moreover, as part of our examination process, we review
the anti-money-laundering policies and procedures



adopted by financial institutions to ensure their continued adequacy.
The Federal Reserve places a high priority on
participating in the government's efforts designed to
attack the laundering of proceeds of illegal activities
through our nations's financial institutions. Over the
past several years, the Federal Reserve has been
actively engaged in these efforts by, among other
things, redesigning the Bank Secrecy Act examination process, developing anti-money-laundering
guidance, regularly examining the institutions we
supervise for compliance with the Bank Secrecy Act
and relevant regulations, conducting money laundering investigations, providing expertise to the U.S. law
enforcement community for investigation and training initiatives, and providing training to various foreign central banks and government agencies.

OVERVIEW

OF PRIVATE

BANKING

Private banking offers the personal and discrete delivery of a wide variety of financial services and products to the affluent market, primarily high net worth
individuals and their corporate interests who generally, on average, have minimum investable assets of
$1 million. Customers most often seek out the services of a private bank for issues related to privacy,
such as security concerns related to public prominence or family considerations or, in some instances,
tax considerations. The private banking relationship
is usually managed by a "relationship manager," who
is responsible for providing a high degree of personalized service to the customer and for developing and
maintaining a strong, long-term banking relationship
with that customer.
Private banking accounts can typically be opened
in the name of an individual, a commercial business,
a law firm, an investment adviser, a trust, a personal
investment company, or an offshore mutual fund. A
private banking operation usually offers its customers an all-inclusive money management relationship
that could include investment portfolio management,
financial planning advice, custodial services, funds
transfer, lending services, overdraft privileges, hold
mail, letter-of-credit financing, and bill paying
services. These services, some of which I will

36

Federal Reserve Bulletin • January 2000

describe in some further detail in my testimony, may
be performed through a specific department of a
commercial bank, an Edge corporation, a nonbank
subsidiary, or a branch or agency of a foreign banking organization or in multiple areas of the institution, or such services may be the sole business of an
institution.
Private banking services almost always involve a
high level of confidentiality regarding customer
account information. Consequently, it is not unusual
for private bankers to assist their customers in achieving their financial planning, estate planning, and confidentiality goals through offshore vehicles such as
personal investment corporations, trusts, or more
exotic arrangements, such as mutual funds. Through
a financial organization's global network of affiliated
entities, private banks often form the offshore vehicles for their customers. These shell companies,
which are incorporated in such offshore jurisdictions
as the Bahamas, the British Virgin Islands, the Cayman Islands, the Netherlands Antilles, and countries
in the South Pacific, such as the Cook Islands, Fiji,
Nauru, and Vanuatu, are formed to hold the customer's assets, as well as offer confidentiality because the
company, rather than the beneficial owner of the
assets, becomes the account holder at the private
bank.
A customer's private banking relationship frequently begins with a deposit account and then
expands into other products. Many banks require
private banking customers to establish a deposit
account before opening or maintaining any other
accounts. To distinguish private banking accounts
from retail accounts, institutions usually require significantly higher minimum account balances and
assess higher fees. The customer's transactions, such
as wire transfers, check writing, and cash deposits
and withdrawals, are conducted through these deposit
accounts.
Investment management for private banking customers usually consists of either discretionary
accounts in which portfolio managers make the
investment decisions based on recommendations
from the bank's investment research resources or
nondiscretionary accounts in which customers
make their own investment decisions. Private banking customers may request extensions of credit.
Loans backed by cash collateral or managed assets
held by the private banking function are quite
common, especially in international private banking.
Private banking customers may pledge a wide range
of their assets, including cash, mortgages, marketable securities, land, or buildings, to secure their
loans.



THE PRIVATE BANKING

INDUSTRY

As the affluent market grows, both in the United
States and globally, competition to serve it has
become more intense. Consequently, new entrants in
the private banking marketplace include nonbank
financial institutions, as well as banks, and the range
of private banking products and services continues
to grow. A 1997 study estimated the private banking
industry at $17 trillion globally and predicted that the
private banking industry would grow at two to three
times the pace of the overall consumer banking market for the foreseeable future.
Approximately 4,000 financial organizations are
competing worldwide in the private banking market
with no one organization currently managing more
than 2.5 percent of the estimated available business.
Private banking has a proven track record of being
profitable for banking organizations.
Typically, private banking services are organized
as a separate functional entity within the larger corporate structure of a banking organization. As the private banking industry has developed over the past
several years, the expectations of the customers have
evolved. Historically, clients sought discretion, confidentiality, and asset preservation. This emphasis
has shifted as capital restraints have been dismantled,
and in some countries, autocratic regimes have been
replaced with free market economies.
Today, while confidentiality is still important,
investment performance has taken precedence. Private banking customers' portfolios typically now
include a greater proportion of equities and sophisticated investment products.

REVIEW OF PRIVATE BANKING

ACTIVITIES

The Federal Reserve has long recognized that private
banking facilities, while providing necessary services
for a specified group of customers, can, without careful scrutiny, be susceptible to money laundering. In
our continuing efforts to provide relevant information
and guidance in the area of effective anti-moneylaundering policies and procedures for private banking, in 1997, the Federal Reserve published guidance
on sound risk-management practices for private banking activities. Besides distributing the guidance to
all banking organizations supervised by the Federal
Reserve, the guidance was made publicly available through the Federal Reserve's web site. More
recently, the Federal Reserve developed enhanced
examination guidelines specifically designed to assist

Statement to the Congress

examiners in understanding and reviewing private
banking activities.
Since 1996, the Federal Reserve has undertaken
two significant reviews of private banking. In the fall
of 1996, the Federal Reserve Bank of New York
began a yearlong cycle of on-site examinations of the
risk-management practices of approximately forty
banking organizations engaged in private banking
activities. Last year, a Private Banking Coordinated
Supervisory Exercise by several Reserve Banks and
Board staff was undertaken to better understand and
assess the current state of risk-management practices
at private banks throughout the Federal Reserve
System.
The examinations by the Federal Reserve Bank of
New York focused principally on assessing each
organization's ability to recognize and manage the
potential risks, such as credit, market, legal, reputational, or operational, that may be associated with an
inadequate knowledge and understanding of its customers' personal and business backgrounds, sources
of wealth, and uses of private banking accounts.
These reviews were prompted by the Federal
Reserve's desire to enhance its understanding of the
risks associated with private banking. We recognized,
for example, that some private banking operations
may not have been conducting adequate due diligence with regard to their international customers.
While all organizations had anti-money-laundering
policies and procedures, the implementation and
effectiveness of those policies and procedures ranged
from exceptional to those that were clearly in need of
improvement.
As a result of the examinations of the private
banking activities of these organizations, which
began in 1996, certain essential elements associated with sound private banking activities were
identified. These elements include the need for the
following:
• Senior management oversight of private banking
activities and the creation of an appropriate corporate
culture that embraces a sound risk-management and
control environment to ensure that organization personnel apply consistent practices, communicate effectively, and assume responsibility and accountability
for controls.
• Due diligence policies and procedures that
require banking organizations to obtain identification
and basic information from their customers, understand sources of funds and lines of business, and
identify suspicious activity.
• Management information systems that provide
timely information necessary to analyze and effec


37

tively manage the private banking business and to
monitor for and report suspicious activity.
• Adequate segregation of duties to deter and prevent insider misconduct and such things as unauthorized account activity and unapproved waivers of
documentation requirements.
During the course of the examinations, a number
of banking organizations were reluctant to release
information on the beneficial ownership of personal
investment corporations established in recognized
secrecy jurisdictions that maintained accounts at the
banks. The banks raised concerns regarding the prohibition on disclosure imposed by the laws of the
countries in which the personal investment corporations were formed, as well as concerns that such
disclosures would lead to customer backlash. However, as the result of continued persistence by Federal
Reserve examiners, all banks provided the requested
information. Very few customers closed their
accounts even after being asked to waive any confidentiality protections that they may have had under
foreign law so that the beneficial ownership information could be made available to examiners.
In last year's Coordinated Supervisory Exercise, a
sample consisting of the private banking activities of
seven banking organizations was reviewed by a Systemwide team of examiners during regularly scheduled safety and soundness examinations. As a result
of the examinations, we concluded that the strongest
risk-management practices existed at private banks
with high-end domestic customers. We found that
among private banks with primarily international customers, stronger risk-management practices were in
place at those organizations that had a prior history
of problems in this area but, as a result of regulatory
pressure, had successfully corrected the problems.
The weakest risk-management practices were identified at organizations whose private banking activities were only marginally profitable and who were
attempting to build a customer base by targeting
customers in Latin America and the Caribbean.
This exercise also identified emerging trends in the
private banking industry, some of which were the
following:
• Established private banking operations maintain
strong risk-management controls and strong earnings,
in contrast to relatively new entrants that have no
specific criteria for seeking customers and tend to
have inadequate customer screening procedures.
• New software and hardware products are being
introduced into the marketplace that allow for banking organizations to direct products to their custom-

38

Federal Reserve Bulletin • January 2000

ers, with the byproduct that these systems will allow
for more effective identification of potentially suspicious or criminal activity.

VULNERABILITIES TO MONEY

LAUNDERING

The Federal Reserve has addressed and continues to
address perceived vulnerabilities to money laundering in private banking by issuing private banking
sound practices guidance and developing targeted
examination procedures for private banking, as well
as our regular on-site examinations of private banking operations. There are some practices within private banking operations that we believe pose unique
vulnerabilities to money laundering and, therefore,
require a commitment by the banking organizations
to increased awareness and due diligence.
Personal investment corporations that are incorporated primarily in offshore secrecy or tax haven jurisdictions and are easily formed and generally free of
tax or government regulation are routinely used to
maintain the confidentiality of the beneficial owner of
accounts at private banks. Moreover, and of primary
interest to the beneficial owners, are the apparent
protections afforded the account holders by the
secrecy laws of the incorporating jurisdictions. Private banking organizations have at times interpreted
the secrecy laws of the foreign jurisdictions in which
the personal investment corporations are located as a
complete prohibition to disclosing beneficial ownership information. The Federal Reserve, however, has
continually insisted that for those accounts that are
maintained within the United States, banking organizations must be able to provide evidence that they
have sufficient information regarding the beneficial
owners of the accounts to appropriately apply sound
risk-management and due diligence procedures.
A variant of personal investment corporation
accounts that could increase the risk of the accounts
being used for money laundering purposes are personal investment corporations that are owned through
bearer shares. Bearer shares are negotiable instruments with no record of ownership so that title of the
underlying entity is held essentially by anyone who
possesses the bearer shares. Historically, bearer
shares were used as a vehicle for estate planning in
that at death the shares would be passed on to the
deceased beneficiaries without the need for probate
of the estate. However, in the context of potential
illicit activity being conducted through an entity
whose ownership is identified by bearer shares, it is
virtually impossible for a banking organization to
apply sound risk-management procedures, including



identifying the beneficial owner of the account, unless
the banking organization physically holds the bearer
shares in custody for the beneficial owner, which of
course we encourage.
The use of omnibus or concentration accounts by
private banking customers that seek confidentiality
for their transactions poses an increased vulnerability
to banking organizations that the transactions could
be the movement of illicit proceeds. Omnibus or
concentration accounts are a variation of suspense
accounts and are legitimately used by banks, among
other things, to hold funds temporarily until they can
be credited to the proper account. However, such
accounts can be used to purposefully break or confuse an audit trail by separating the source of the
funds from the intended destination of the funds. This
practice effectively prevents the association of the
customer's name and account numbers with specific
account activity and easily masks unusual transactions and flows that would otherwise be identified for
further review.
Much has been said about the use of correspondent
accounts in facilitating money laundering transactions. Admittedly, correspondent accounts may raise
money laundering concerns because the interbank
flow of funds may mask the illicit activities of customers of a bank that is using the correspondent
services. However, it is our belief that correspondent
banking relationships, if subject to appropriate controls, play an integral role in the financial marketplace by allowing banks to hold deposits and perform
banking services, such as check clearing, for other
banks. This allows certain banks, especially smaller
institutions, to gain access to financial markets on a
more cost-effective basis than otherwise may be
available.

FOREIGN

JURISDICTIONS

A primary obstacle to our supervision of offshore
private banking activities by U.S. banking organizations, not only with regard to beneficial ownership
information but also with regard to the safety and
soundness of the operations, is our inability to conduct on-site examinations in many offshore jurisdictions. While it appears that nearly all institutions that
we supervise have adequate anti-money-laundering
policies and procedures, our examination process
is most effective when we have the ability to review
and test an organization's policies and procedures.
Secrecy laws in some jurisdictions limit or restrict
our ability to conduct these on-site reviews or to
obtain pertinent information. In such instances,

Statement to the Congress

practically our only alternative is to rely on a bank's
internal auditors.
A number of offshore jurisdictions are currently
preparing for on-site examinations by home country
supervisors. This effort is being led in large part by
members of the Basle Committee on Banking Supervision and the Offshore Group of Banking Supervisors. A report issued by these groups in 1996 stated,
While recognizing that there are legitimate reasons for
protecting customer privacy . . . secrecy laws should not
impede the ability of supervisors to ensure safety and
soundness of the international banking system.

LEGISLATIVE AND REGULATORY

INITIATIVES

The Federal Reserve has continually supported
efforts to better and more effectively attack money
laundering activities because of our supervisory interests in establishing policies and procedures thwarting
money laundering, as well as our interests in supporting and participating in law enforcement's efforts to
detect and deter money laundering. The use of the
banking system to launder the proceeds of criminal
activity can certainly damage the reputation of the
banks involved, as well as have a detrimental impact
on the banking sector as a whole.
The proposed "Foreign Money Laundering Deterrence and Anticorruption Act" addresses a number
of areas in which current requirements would be
strengthened. We note that a number of the provisions of the proposed legislation address similar
issues to those set forth in the recently released
National Money Laundering Strategy. The Strategy
requires a review of a number of critical areas in
which the Federal Reserve will be an active participant, and we believe that the results of the reviews
will provide information that should be useful to the
legislative process.




39

The Federal Reserve has been contemplating, in
cooperation with the banking industry, developing
guidance to assist banking organizations in implementing money laundering risk assessments of their
customer base. These risk assessments would be used
to determine the appropriate due diligence required to
identify and, when necessary, report suspicious activity. For example, because of the increased concern
that private banking accounts could be used for
money laundering, we would expect that guidance in
this area would suggest that it may be necessary to
engage in a more in-depth analysis of a customer's
intended use of the account coupled with a heightened ongoing review of account activity to determine
if, in fact, the customer has acted in accordance with
the expectations developed at the inception of the
relationship. We believe that such policies and procedures will be an effective tool against potential money
laundering activity.
The banking system has a significant interest in
protecting itself from being used by criminal elements. Individual banking organizations have committed substantial resources and achieved noticeable
success in creating operational environments that are
designed to protect their institutions from unknowingly doing business with unsavory customers and
money launderers. Clearly, these efforts need to continue and the momentum needs to be maintained. I
want to emphasize that the Federal Reserve actively
supports these efforts. Consequently, we will continue our cooperative efforts with other bank supervisors and the law enforcement community to develop
and implement effective anti-money-laundering programs addressing the ever-changing strategies of
criminals who attempt to launder their illicit funds
through private banking operations, as well as
through other components of banking organizations
here and abroad.
•

40

Announcements
ACTION BY THE FEDERAL OPEN MARKET
COMMITTEE AND AN INCREASE IN THE
DISCOUNT RATE

MODIFICATIONS TO THE SETTLEMENT FINALITY
FOR ACH CREDIT TRANSACTIONS PROCESSED
BY FEDERAL RESERVE BANKS

The Federal Open Market Committee on November 16, 1999, voted to raise its target for the federal funds rate by 25 basis points to 5Vi percent. In
a related action, the Board of Governors approved
a 25 basis point increase in the discount rate to
5 percent.
Although cost pressures appear generally contained, risks to sustainable growth persist. Despite
tentative evidence of a slowing in certain interestsensitive sectors of the economy and of accelerating
productivity, the expansion of activity continues
in excess of the economy's growth potential. As a
consequence, the pool of available workers willing to
take jobs has been drawn down further in recent
months, a trend that must eventually be contained if
inflationary imbalances are to remain in check and
economic expansion continue.
Today's increase in the federal funds rate, together
with the policy actions in June and August and the
firming of conditions more generally in U.S. financial
markets over the course of the year, should markedly
diminish the risk of inflation going forward. As a
consequence, the directive the Federal Open Market
Committee adopted is symmetrical with regard to the
outlook for policy over the near term.
In taking the discount rate action, the Federal
Reserve Board approved requests submitted by the
Boards of Directors of the Federal Reserve Banks of
Boston, Cleveland, Richmond, and Kansas City. Subsequently the Board approved similar requests by the
board of directors of the Federal Reserve Bank of
San Francisco, also effective on November 16; by the
boards of directors of the Federal Reserve Banks of
Atlanta and Dallas, effective November 17; and by
the boards of directors of the Federal Reserve Banks
of St. Louis, New York, Philadelphia, Chicago, and
Minneapolis, effective November 18. The discount
rate is the rate charged depository institutions when
they borrow short-term adjustment credit from their
District Federal Reserve Banks.

The Federal Reserve Board on November 12, 1999,
approved modifications to the settlement finality for
automated clearinghouse (ACH) credit transactions
processed by the Federal Reserve Banks so that
settlement becomes final when posted to depository
institutions' accounts. The Board will require prefunding for any ACH credit transactions that settle
through a Federal Reserve account that is being monitored in real time to help manage settlement risk.
The Reserve Banks will be modifying their software and their ACH operating circular to implement
settlement-day finality. To permit time for these
changes, settlement-day finality and prefunding will
be implemented in early 2001. A specific implementation date will be announced three months in
advance of the effective date.




ADJUSTMENT OF THE DOLLAR AMOUNT
THAT TRIGGERS CERTAIN DISCLOSURE
REQUIREMENTS UNDER THE TRUTH IN
LENDING ACT

The Federal Reserve Board on November 3, 1999,
published its annual adjustment of the dollar amount
that triggers additional disclosure requirements under
the Truth in Lending Act for mortgage loans that bear
fees above a certain amount.
The Board has adjusted the dollar amount from
$441 for 1999 to $451 for 2000 based on the annual
percent change reflected in the consumer price index
that was in effect on June 1, 1999. The adjustment is
effective January 1, 2000.
The Home Ownership and Equity Protection Act
of 1994 bars credit terms such as balloon payments
and requires additional disclosures when total points
and fees payable by the consumer exceed $400 (to be
adjusted annually) or 8 percent of the total loan
amount, whichever is larger.

41

PROPOSED

ACTION

The Federal Reserve Board on November 3, 1999,
published proposed revisions to the official staff commentary that applies and interprets the requirements
of Regulation Z (Truth in Lending). Comments are
requested by January 10, 2000.

REVIEW OF PUBLICATIONS
OF THE FEDERAL RESERVE

ACTIVITIES
BOARD

The Federal Reserve Board on November 3, 1999,
announced a review of its publications activities. As
part of this effort, the Board is seeking public comment on how the Board's publications are individually and collectively meeting information needs and
to offer suggestions for improving or possibly eliminating some publications or adding new ones. Comments are requested by December 17, 1999.

SURVEY RESULTS ON CONSUMER
IN BANKS' Y2K
PREPARATIONS

CONFIDENCE

The Federal Reserve Board and the Federal Deposit
Insurance Corporation (FDIC) announced on November 18, 1999, the results of a survey by the Gallup
Organization. According to the survey, current figures indicate that nine out of ten U.S. bank customers believe that their banks are ready for the
Year 2000—or Y2K. By comparison, a March survey
found that an estimated 76 percent of bank customers
were confident that their banks would solve the Y2K
problem.
Both surveys were sponsored by federal financial
institution regulatory agencies. The Federal Reserve
Board and the FDIC sponsored the current survey,
which was delivered to the agencies on November 15, 1999. The results, which are based on about
1,400 completed interviews, are from an ongoing
survey of adult Americans who have bank accounts.
"The survey underscores growing consumer confidence that banks are prepared for Y2K and that it will
be business as usual for bank customers on January 1,
2000 and thereafter," said FDIC Chairman Donna
Tanoue.
The most recent Gallup report indicates that financial institutions have been informing their customers




about their Year 2000 readiness. The percentage of
American adult depositors who have received information about Y2K readiness from their financial
institutions has significantly increased over the past
seven months: An estimated 70 percent now report
receiving information from their financial institution,
compared with 23 percent in March. Additionally, in
March, 52 percent of respondents reported having
seen or heard a great deal about the Y2K issue, but
that percentage is now up to 68 percent.
Only about 5 percent of bank customers currently
indicate that they are very concerned about the Y2K
issue, down from 11 percent in the March report.
The November findings support the notion that
a decreased level of concern about the likely effect of
the century date change on computers is related to
increased information about the Y2K issue. Consumer confidence in their own financial institutions
has also increased. More than 90 percent of those
surveyed expressed confidence in their own banks,
with the proportion of those saying they would definitely or probably take extra cash declining from
62 percent to 39 percent in the period between the
March and October surveys. A majority of those who
plan to withdraw extra cash say that they will take
less than $500.
The survey results also indicate that the public is
increasingly confident that basic payment systems
will work properly during the century date change.
Most American adult depositors believe that they will
have access to their money; that checks will continue
to be processed accurately; and that automatic teller
machines, credit card systems, and electronic direct
deposits will function normally.
Edward W. Kelley, Jr., a member of the Board of
Governors of the Federal Reserve System stated,
From the beginning of our preparations for Y2K we said
that there were two challenges facing us—the technical
challenge and the challenge of public confidence. I believe
we've met the technical challenge and these data indicate
we've made good progress in ensuring Americans know
we are ready for the century rollover.

Over the past three years, FDIC-insured financial
institutions have been identifying and overhauling
systems to make them Year 2000-ready. At the same
time, the regulatory agencies have been closely monitoring their efforts. As of today, the regulators have
assigned a "Satisfactory" rating, the highest possible
rating, to 99.9 percent of FDIC-insured financial
institutions.

42

Federal Reserve Bulletin • January 2000

RELEASE OF A REPORT ON A SURVEY
OF WEB SITE PRIVACY

INCREASE IN ADVERSELY CLASSIFIED
SYNDICATED BANK LOANS

The four federal banking agencies (the Federal
Reserve Board, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the
Office of Thrift Supervision) on November 9, 1999,
released a report on the results of a survey of Internet
privacy policies of banking and thrift institutions.
The survey report, titled Interagency Financial
Institution Web Site Privacy Survey Report, examined
314 World Wide Web sites selected randomly, plus
those of the 50 largest banks and thrift institutions
with web sites. Conducted during May and July by
the federal agencies that supervise the institutions,
the survey examined the collection of consumer
information, interactive capabilities, and privacy disclosures at these sites. The purpose of the survey was
to provide an indication of the state of the industry
with respect to data collection and on-line privacy
disclosures.
Overall, 48 percent of the 364 web sites surveyed
posted a privacy disclosure—a privacy policy (a comprehensive statement regarding the collection and use
of consumer information) or an information practice
statement (a statement describing a particular information handling policy or practice, such as data
security). Sixty-two percent of web sites that collected personal information provided a privacy disclosure. Sites that collected personal information
were three times as likely to post a privacy policy as
sites that did not collect personal information. The
survey also found that 96 percent of the nation's fifty
largest banks and thrifts that are on-line provided a
privacy policy or information practice statement.
The agencies began work on the survey in February 1999. The agencies will monitor, as appropriate,
the industry's progress in responding to consumer
privacy issues and complying with the new legal
mandates contained in the financial services reform
legislation through regular supervisory activities.
This survey supplements previous web site surveys
that did not focus on financial institutions, such as
the Federal Trade Commission's "Privacy Online:
A Report to Congress" (June 1998), and the Georgetown Internet Privacy Policy Survey "Privacy
Online in 1999: A Report to the Federal Trade Commission" (June 1999). Because the sample population and content of the questionnaire used to conduct
the interagency survey differ materially from those in
the surveys cited, direct comparisons between the
results of the various surveys should not be made.
Copies of the survey report are available on the
agencies's web sites.

The Federal Reserve Board, the Federal Deposit
Insurance Corporation, and the Office of the Comptroller of the Currency released data on November 10, 1999, on syndicated bank loans rated
adversely by examiners. According to the data, syndicated bank loans rated adversely by examiners
increased in 1999 from low levels. The agencies
released aggregate data for the past six years and data
by major industry sector for the past three years.
Under the Shared National Credit (SNC) Program,
the agencies review large syndicated loans annually,
usually in May and June. The program, established in
1977, is designed to provide an efficient and consistent review and classification of any loan or loan
commitment shared by three or more institutions and
totaling $20 million or more.
In 1999, the SNC Program covered 8,974 credits to
5,587 borrowers totaling $1.8 trillion in drawn and
undrawn loan commitments. Of the total, $37.4 billion, or 2 percent, was classified adversely because of
default or other significant credit concerns. That was
up from the lowest level this decade, 1.3 percent in
1998, but still significantly below the 4.1 percent
level reached in 1994.
Borrowers have drawn down about a third of the
$1.8 trillion in loan commitments, or $630 billion. Of
this amount, $33 billion, or 5.3 percent, was classified adversely, up from 3.2 percent in 1998 but down
from 11 percent in 1994.
The percentage of adversely classified credits rose
in 1999 for most major industry sectors compared
with 1998. The rise was sharpest for service industries because of a large increase in problem loans in
the health-care sector. Other industries recording an
increase included oil and gas and wholesale and retail
trade.
Credits listed as "special mention" by examiners
because of potential weakness—a less serious category than the three adverse classifications: substandard, doubtful, and loss—totaled $31.4 billion in
1999, up from $22.8 billion in 1998 but about the
same as in 1994.




ENFORCEMENT

ACTIONS

The Federal Reserve Board on November 16, 1999,
announced the issuance of a consent order against
Robert and Adele Barber, both institution-affiliated
parties of the First Western Bank, Cooper City,
Florida, a state member bank.

Announcements

The individuals, without admitting to any allegations, consented to the order to resolve allegations
that they violated the Change in Bank Control Act in
connection with their acquisition of beneficial ownership of the shares of the bank.
The Federal Reserve Board on November 16, 1999,
announced the issuance of a consent order against
Matthew J. Callahan, an institution-affiliated party of
the First Western Bank, Cooper City, Florida, a state
member bank.
The individual, without admitting to any allegations, consented to the order to resolve allegations
that he violated the Change in Bank Control Act in
connection with his acquisition of beneficial ownership of the shares of the bank.
The Federal Reserve Board on November 16, 1999,
announced the issuance of a consent order against




43

Bertram Smith, an institution-affiliated party of the
First Western Bank, Cooper City, Florida, a state
member bank.
The individual, without admitting to any allegations, consented to the order to resolve allegations
that he violated the Change in Bank Control Act in
connection with his acquisition of beneficial ownership of the shares of the bank.
The Federal Reserve Board on November 16, 1999,
announced the execution of a written agreement
by and among Heritage Bancorp Company, Inc.,
Cleveland, Oklahoma; the First Bank of Cleveland,
Cleveland, Oklahoma; the Federal Reserve Bank of
Kansas City; and the Oklahoma State Banking
Department.
•

44

Minutes of the Meeting of the
Federal Open Market Committee
Held on October 5, 1999
A meeting of the Federal Open Market Committee
was held in the offices of the Board of Governors of
the Federal Reserve System in Washington, D.C., on
Tuesday, October 5, 1999, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Boehne
Mr. Ferguson
Mr. Gramlich
Mr. Kelley
Mr. McTeer
Mr. Meyer
Mr. Moskow
Mr. Stern
Messrs. Broaddus, Guynn, Jordan, and
Parry, Alternate Members of the
Federal Open Market Committee
Mr. Hoenig, Ms. Minehan, and Mr. Poole, Presidents
of the Federal Reserve Banks of Kansas City,
Boston, and St. Louis respectively
Mr. Kohn, Secretary and Economist
Ms. Fox, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Prell, Economist
Ms. Johnson, Economist
Ms. Cumming, Messrs. Howard, Lang, Lindsey,
Rolnick, Rosenblum, Slifman, and Stockton,
Associate Economists
Mr. Fisher, Manager, System Open Market Account
Messrs. Ettin and Reinhart, Deputy Directors,
Divisions of Research and Statistics and
International Finance respectively,
Board of Governors
Messrs. Madigan and Simpson, Associate Directors,
Divisions of Monetary Affairs and Research and
Statistics respectively, Board of Governors
Mr. Whitesell, Assistant Director, Division of
Monetary Affairs, Board of Governors



Mr. Kumasaka, Assistant Economist, Division of
Monetary Affairs, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Ms. Browne, Messrs. Eisenbeis, Goodfriend, Kos,
Rasche, and Sniderman, Senior Vice Presidents,
Federal Reserve Banks of Boston, Atlanta,
Richmond, New York, St. Louis, and Cleveland
respectively
Messrs. Judd and Sullivan, Vice Presidents, Federal
Reserve Banks of San Francisco and Chicago
respectively
Mr. Filardo, Assistant Vice President, Federal Reserve
Bank of Kansas City

By unanimous vote, the minutes of the meeting
of the Federal Open Market Committee held on
August 24, 1999, were approved.
The Manager of the System Open Market Account
reported on recent developments in foreign exchange
markets. There were no open market operations in
foreign currencies for the System's account in the
period since the previous meeting, and thus no vote
was required of the Committee.
The Manager also reported on developments in
domestic financial markets and on System open market transactions in government securities and federal
agency obligations during the period August 24,
1999, through October 4, 1999. By unanimous vote,
the Committee ratified these transactions.
The information reviewed at this meeting suggested that the expansion of economic activity was
substantial in the quarter just ended. Consumer
spending and business investment in durable equipment remained strong, and inventory investment
picked up from the sluggish pace of the second
quarter, while residential housing activity showed
some signs of deceleration. To meet aggregate
demand, industrial production increased further and
employment gains continued to be relatively robust,
keeping labor markets taut. Inflation was moderate,

45

but somewhat above that in 1998, owing to a sharp
rebound in energy prices.
Although private nonfarm payroll employment
expanded relatively slowly in August, the slowdown
had followed a surge in July, and growth for the two
months was very close to the brisk pace of the first
half of the year. Job gains in the service-producing
sector remained strong in the July-August period,
while employment in the goods-producing sector
continued to decline, though at a slightly slower rate
than earlier in the year. The civilian unemployment
rate dropped back to 4.2 percent in August, matching
its low for the year.
Industrial production was up appreciably further
on balance in July and August. Mining activity rose
markedly, utility output increased moderately on
balance, and manufacturing production recorded a
further sizable advance over the two months. Within
manufacturing, high-tech goods and motor vehicles
were sources of particular strength, while the production of nondurable goods changed little. The rate of
utilization of manufacturing capacity climbed over
the two months but remained well below its longterm average.
Total retail sales posted strong gains over July and
August. Increases in sales were spread across all
major categories, with spending for nondurable goods
and motor vehicles notably strong. Expenditures on
services rose moderately in the two-month period.
There were mixed signals with regard to the housing
sector. Construction was at a high level, the inventory
of unsold homes remained quite low, and starts of
multifamily units rose over the July-August period.
However, single-family housing starts edged lower
on balance over July and August, and sales of existing homes weakened.
The available information suggested that business
capital spending continued to climb rapidly. Shipments of nondefense capital goods posted further
large gains in July and August, with outlays for
high-tech machinery and transportation equipment
particularly strong. In addition, new orders for durable equipment turned up sharply in the two months.
Nonresidential construction activity changed little on
balance in July as continued strength in the office and
an increase in the lodging and miscellaneous categories offset reductions in the industrial and non-office
commercial categories.
Manufacturing and trade inventories, outside of
motor vehicles, picked up sharply in July after posting a small increase in the first half of the year, but
inventories remained lean in relation to sales. In
manufacturing, stocks rebounded from a substantial June decline; however, the aggregate stock


shipments ratio remained at the bottom of its range
for the past twelve months. Wholesalers also
increased their inventories in July; while the
inventory-shipments ratio for this sector rose, it was
in the low end of its range for the past year. In the
retail sector, inventories contracted somewhat in July,
and the inventory-sales ratio for this sector also was
near the bottom of its range over the past year.
The nominal deficit on U.S. trade in goods and
services widened in July from its second-quarter
average, with the value of imports rising more than
the value of exports. The increase in imports was
concentrated in aircraft, consumer goods, industrial
supplies, and oil. The step-up in exports
occurred primarily in industrial machinery and semiconductors. Among the major foreign industrial countries, the limited available information suggested that
economic activity was strengthening in Europe and
the United Kingdom in the third quarter while economic indicators for Japan were mixed after the
strong advance in the first half of the year. Economic
growth in Canada seemed to be continuing at a robust
pace, and economic recovery in most of the Asian
emerging-market economies was proceeding briskly.
Inflation remained relatively moderate, though
somewhat above the pace of 1998 because of a sharp
rebound in energy prices. Overall consumer prices
increased in July and August at about the secondquarter rate. Abstracting from the sharp advances in
energy prices and the mild increases in food prices,
consumer inflation continued to be relatively subdued
over the two months. In the past twelve months, the
core CPI rose less than in the previous twelve-month
period. At the producer level, prices of finished
goods other than food and energy were essentially
unchanged over the two months; moreover, the
change in core producer prices in the past year was
about the same as in the year-earlier period. At earlier
stages of processing, however, producer prices of
crude and intermediate materials excluding food and
energy had firmed noticeably over recent months.
Average hourly earnings continued to grow at a moderate pace over July and August, and the rise over the
past year was considerably smaller than that for the
year-earlier period.
At its meeting on August 24, 1999, the Committee
adopted a directive that called for a slight tightening
of conditions in reserve markets consistent with an
increase of lA percentage point in the federal funds
rate to an average of around 5'A percent. The members noted that this move, together with the firming in
June, should help to keep inflation subdued and to
promote sustainable economic expansion. The Committee also agreed that the directive should be sym-

46

Federal Reserve Bulletin • January 2000

metric. A possible rise in inflation remained the main
threat to sustained economic expansion, but it was
not anticipated that further tightening would be
needed in the near term and there would be time to
gather substantially more information about the balance of risks relating to trends in aggregate demand
and supply.
Open market operations after the meeting were
directed toward implementing and maintaining the
desired slight tightening of pressure on reserve positions, and the federal funds rate averaged very close
to the Committee's 5lA percent target. Most other
short-term market interest rates posted small mixed
changes on balance because the policy action was
widely anticipated and the FOMC's policy announcement after the August 24 meeting referenced markedly diminished inflation risks. However, longer-term
yields rose somewhat over the intermeeting period in
response to the receipt of new information indicating
both surprisingly strong spending at home and abroad
and higher commodity prices. Most measures of
share prices in equity markets registered sizable
declines over the intermeeting period, apparently
reflecting not only higher interest rates but also
concerns that U.S. stocks might be overvalued and
that foreign equities were becoming relatively more
attractive as economic prospects brightened abroad.
In foreign exchange markets, the trade-weighted
value of the dollar changed little over the period in
relation to the currencies of a broad group of important U.S. trading partners. The dollar depreciated
against the currencies of the major foreign industrial
countries, especially the Japanese yen, in response to
generally stronger-than-expected incoming data on
spending and production in those countries. However, the dollar rose against the currencies of the
other important trading partners in the broad group,
reflecting sizable declines in the currencies of several
countries in Latin America and Asia.
Despite a further rise in opportunity costs, M2 and
M3 continued to grow at moderate rates in August
and evidently in September as well. Expansion of
these two monetary aggregates was supported by
further rapid expansion in the demand for currency
and stronger inflows to retail money market funds at
a time of weakness in US. bond and equity markets.
In addition, growth of M3 was sustained by large
flows into institution-only money market funds as the
yields on those funds caught up to earlier increases
in short-term market rates. For the year through
September, M2 was estimated to have increased
at a rate somewhat above the Committee's annual
range and M3 at a rate just above the upper end of
its range. Total domestic nonfinancial debt continued




to expand at a pace somewhat above the middle of its
range.
The staff forecast prepared for this meeting suggested that the expansion would gradually moderate
to a rate around or perhaps a little below the growth
of the economy's estimated potential. The growth
of domestic final demand increasingly would be held
back by the anticipated waning of positive wealth
effects associated with earlier large gains in equity
prices; the slower growth of spending on consumer
durables, houses, and business equipment in the wake
of the prolonged buildup in the stocks of these items;
and the higher intermediate- and longer-term interest
rates that had evolved as markets came to expect that
a rise in short-term interest rates would be needed to
achieve a better balance between aggregate demand
and aggregate supply. The lagged effects of the earlier rise in the foreign exchange value of the dollar
were expected to place continuing, but substantially
diminishing, restraint on U.S. exports for some period
ahead. Core price inflation was projected to rise
somewhat over the forecast horizon, in part as a
result of higher non-oil import prices and some firming of gains in nominal labor compensation in persistently tight labor markets that would not be fully
offset by rising productivity growth.
In the Committee's discussion of current and prospective economic conditions, members commented
that the incoming information suggested that the
expansion had been considerably stronger in recent
months than many had anticipated, while most measures of inflation had remained subdued. The economy's substantial momentum seemed likely to persist
over the balance of the year, but the members continued to expect some slackening during the year
ahead. This outlook was supported by the emergence
of somewhat less accommodative conditions in
financial markets, including the increases that had
occurred in interest rates over the past several months
and the steadying of stock market prices over the
same period. On the other hand, foreign economies
were strengthening more quickly than anticipated and
rising exports were likely to offset part of the slowdown in domestic demand.
The implications of continued robust growth for
the inflation outlook depended critically on judgments about the supply side of the economy. Productivity and economic potential seemed to have been
growing at an increasingly rapid rate in recent years.
That acceleration had itself tended to boost consumption and investment demand—in complex interactions of aggregate supply and demand—but it also
had held down increases in unit costs and prices. A
great deal of uncertainty surrounded the behavior of

Minutes of the Federal Open Market Committee

productivity growth going forward, but some further
pickup, and the associated ability of the economy to
accommodate more rapid growth without added inflation, was a possibility that could not be overlooked.
However, a further pickup in productivity growth
was by no means assured, and a number of other
favorable developments in supply and prices that had
acted to restrain inflation in recent years had already
begun to dissipate or reverse. These included the
substantial upturn in energy prices, the ebbing of
import price declines, and the pickup in health care
costs; adverse trends in the latter two factors in
particular were likely to be extended. In these circumstances, members generally saw some risk of rising
inflation going forward, but they also recognized that
similar forecasts in recent years had proved wrong
and that considerable uncertainty surrounded expectations of somewhat higher core inflation.
In their review of developments across the nation,
members reported continued high levels of activity in
all regions and few indications of moderating growth,
though agriculture remained relatively depressed in
many areas. The anecdotal information from around
the nation clearly supported the overall statistical
evidence of persisting strength in key components of
domestic demand. Consumer spending, notably for
light motor vehicles, was continuing to rise at a brisk
pace. Some of the strength in consumer durables was
related to purchases associated with homebuilding,
which, though likely to slacken a little owing to the
rise in mortgage interest rates, seemed to be staying
at a high level. While consumer spending probably
would be sustained by further anticipated growth in
employment and incomes, the pause in the stock
market, should it persist, and the attendant effects
on financial wealth were expected with some lag to
damp further gains in consumer expenditures.
Business fixed investment appeared to have accelerated to a surprising extent in the third quarter from
an already robust pace earlier in the year. Further
noteworthy gains were recorded in business expenditures for computing and communications equipment,
evidently reflecting ongoing efforts to take advantage
of declining prices and improving technology. Some
of the rise in such spending could represent accelerated purchases in advance of the century date change
and might well tend to be offset in early 2000. Over
time, however, ongoing efforts to enhance productivity for competitive reasons suggested further vigorous growth in spending for such equipment. Forecasts of other business investment expenditures were
much less ebullient and on the whole pointed to little
change. Building activity currently displayed substantial strength in some major cities, largely involving




A1

office and hotel structures, but nonresidential construction activity more generally was relatively sluggish. It seemed likely that commercial building activity would be damped later as new capacity was
completed and financing became less attractive in
response to the rise that had occurred in market
interest rates.
The prospects for business inventories over coming months were difficult to evaluate, with the usual
uncertainties accentuated by century date change
effects. According to fragmentary information, inventory investment picked up during the summer months
from a very low pace in the second quarter. To some
extent, the recent strengthening may have reflected
precautionary stockbuilding as insurance against
potential supply disruptions relating to the century
date change. Such stockbuilding might well intensify
during the closing months of the year and be reversed
early next year, with effects of uncertain magnitude
on overall economic activity in that period. Looking
beyond such a swing, business inventories, which
currently appeared to be near desired levels in most
industries, were projected to grow at a moderate pace
broadly in line with the expansion in final sales.
The strengthening of many economies around the
world was seen as a harbinger of increasing demand
for U.S. exports, a view that was reinforced by growing anecdotal indications of improving foreign markets for a wide range of U.S. products. An aspect of
that improvement was more attractive investment
opportunities abroad and some associated weakening
in the foreign exchange value of the dollar that
implied upward pressure on the prices of imports and
to an uncertain extent on those of competing domestically produced products. Moreover, some members
saw the possibility of a steeper drop in the dollar—
under pressure from burgeoning foreign dollar portfolios as a consequence of very large U.S. current
account deficits—as an added source of risk to the
maintenance of sustainable growth and low inflation
in the United States.
In the Committee's discussion of the outlook for
inflation, a number of members emphasized that the
behavior of prices had remained surprisingly benign
for an extended period, confounding earlier forecasts
of appreciable acceleration stemming from tight labor
markets and rising labor costs. That experience
argued forcefully in their view for the need to regard
forecasts of increasing inflation with considerable
caution. Most members nonetheless continued to
view some increase in core price inflation as a definite possibility. This view reflected their expectations
that the current expansion, even if it did moderate to
a pace approximating the economy's trend potential

48

Federal Reserve Bulletin • January 2000

growth, would do so at a level of resource use that,
based on the historical record, exceeded the economy's sustainable capacity—perhaps by even more
than at present, given the evident strength of aggregate demand. Such an outcome seemed likely to
generate further pressures on unit labor costs, which
had tended in recent years to be contained by accelerating productivity. There was no evidence that the
acceleration was coming to an end, but the members
saw a clear risk that upward pressures on labor costs
could at some point outpace gains in productivity.
Members also mentioned that labor compensation
would come under greater pressures as a result of
rising healthcare benefit costs and possible increases
in the minimum wage.
Other factors cited as pointing to a less benign
inflation performance involved the waning or reversal
of a number of temporary influences that had exerted
a beneficial effect on prices in recent years. In particular, the decline of the dollar from its recent high
in July, especially if it were to continue, would mean
higher import prices and reduced price competition
for a wide range of domestic goods. In this regard,
several members observed that they were hearing
noticeably fewer comments by business contacts
about their inability to raise prices. Members also
noted that, in the context of apparently strengthening
economic activity worldwide, non-oil commodity
prices seemed poised to turn upward, though they
had risen only slightly thus far. While oil prices,
which had increased sharply this year, had changed
relatively little recently and could move down in the
future, secondary effects of the earlier increase on
costs and prices in other sectors of the economy
seemed likely. Nonetheless, considerable uncertainty
surrounded expectations of rising inflation. Labor
cost increases had not turned up, and core inflation
continued to edge lower. Further improvements in
productivity growth could keep price pressures in
check for some time.
In the Committee's discussion of policy for the
intermeeting period ahead, all the members indicated
that they favored or could accept an unchanged policy stance. Members commented that they saw little
risk of a surge in inflation over coming months,
though some pickup from the currently subdued level
of core price inflation was a distinct possibility under
prospective economic conditions. It was noted that
expanding aggregate supply, boosted by accelerating
productivity, had remained in reasonable balance with
rapidly growing aggregate demand despite an already
high level of economic activity; however, substantial
uncertainty surrounded the outlook for aggregate supply and aggregate demand going forward, and it was




unclear how their interaction would affect the behavior of inflation. In light of the uncertainties surrounding these developments, the members agreed that it
would be desirable to await more evidence on the
performance of the economy, and in this regard considerable new information on the behavior of the
economy and the outlook for inflation would become
available during the intermeeting period. The risks of
waiting seemed small at this juncture, in part because
inflation and inflation expectations were not likely
to worsen substantially in the near term, and the
Committee had demonstrated its willingness to take
needed anticipatory action to curb rising inflationary
pressures that could threaten the overall performance
of the economy. They also agreed that century date
change concerns were not likely to be of a kind or
magnitude that would preclude a policy tightening
move at the November meeting, should such an
action seem warranted at that time.
On the issue of the tilt in the Committee's directive, a majority of the members favored associating
an unchanged policy stance with a directive that was
biased toward restraint. These members did not
anticipate that intermeeting developments would
require policy to be tightened during the weeks
immediately ahead, but they believed that the Committee probably would need to move to a less
accommodative policy stance in the relatively near
future, possibly at the November meeting. They also
believed that, given the Committee's recently adopted
practice of immediately announcing its decisions to
change the symmetry of the directive, an asymmetrical directive would help convey the message that
policy adjustments might not yet be completed for
the balance of this year and that the Committee
remained concerned about potential inflationary
developments in coming months. Other members,
while generally agreeing that the risks pointed on
balance to some rise in inflation over time, nonetheless were quite uncertain about the timing of any
additional firming in monetary policy and preferred
to leave the Committee's possible future course of
action more open. Even so, they could accept an
asymmetric directive in light of the consensus that
had emerged at this meeting in favor of an unchanged
policy stance.
With regard to the Committee's announcement of
its decision to adopt an asymmetric directive, members observed that the recent practice of making such
announcements had led to some misinterpretations of
the Committee's intentions and seemed to have added
to volatility in financial markets. As a consequence,
Committee members briefly considered alternative
treatments of symmetry and disclosure for this meet-

Minutes of the Federal Open Market Committee

ing. Because the Committee had begun a process
for examining the wording of its directive and its
announcement policy, most of the members concluded that the most satisfactory alternative for now,
though it was not fully satisfactory, was to continue
with the Committee's recent announcement practice.
However, the working group chaired by Governor
Ferguson was requested to expedite its report, if
possible.
At the conclusion of this discussion, the Committee voted to authorize and direct the Federal Reserve
Bank of New York, until it was instructed otherwise, to execute transactions in the System Account
in accordance with the following domestic policy
directive:
The information reviewed at this meeting suggests that
the expansion of economic activity was substantial in the
quarter just ended. Nonfarm payroll employment increased
briskly through August, and the civilian unemployment
rate dropped back to 4.2 percent, matching its low for the
year. Industrial production was up appreciably further
in July and August. Total retail sales posted sizable gains
over the two months. Housing construction apparently has
slowed somewhat but has remained at a high level. Available indicators suggest that the expansion in business capital spending has continued to be rapid. The nominal deficit
on U.S. trade in goods and services widened in July from
its average in the second quarter. Inflation has continued at
a moderate pace, albeit somewhat above that in 1998
owing to a sharp rebound in energy prices.
Most short-term interest rates have posted small mixed
changes since the meeting on August 24, 1999, while
longer-term yields have risen somewhat. Most measures
of share prices in equity markets have registered sizable
declines over the intermeeting period. In foreign exchange
markets, the trade-weighted value of the dollar has changed
little over the period in relation to the currencies of a broad
group of important U.S. trading partners.
M2 and M3 have continued to grow at a moderate pace.
For the year through September, M2 is estimated to have




49

increased at a rate somewhat above the Committee's annual
range and M3 at a rate just above the upper end of its
range. Total domestic nonfinancial debt has continued to
expand at a pace somewhat above the middle of its range.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability and
promote sustainable growth in output. In furtherance of
these objectives, the Committee reaffirmed at its meeting in
June the ranges it had established in February for growth of
M2 and M3 of 1 to 5 percent and 2 to 6 percent respectively, measured from the fourth quarter of 1998 to the
fourth quarter of 1999. The range for growth of total
domestic nonfinancial debt was maintained at 3 to 7 percent for the year. For 2000, the Committee agreed on a
tentative basis in June to retain the same ranges for growth
of the monetary aggregates and debt, measured from the
fourth quarter of 1999 to the fourth quarter of 2000. The
behavior of the monetary aggregates will continue to be
evaluated in the light of progress toward price level stability, movements in their velocities, and developments in the
economy and financial markets.
To promote the Committee's long-run objectives of price
stability and sustainable economic growth, the Committee
in the immediate future seeks conditions in reserve markets
consistent with maintaining the federal funds rate at an
average of around 514 percent. In view of the evidence
currently available, the Committee believes that prospective developments are more likely to warrant an increase
than a decrease in the federal funds rate operating objective
during the intermeeting period.
Votes for this action: Messrs. Greenspan, McDonough,
Boehne, Ferguson, Gramlich, McTeer, Meyers, Moskow,
Kelley, and Stern. Votes against this action: None.

It was agreed that the next meeting of the Committee would be held on Tuesday, November 16, 1999.
The meeting adjourned at 1:25 p.m.
Donald L. Kohn
Secretary

51

Legal Developments
JOINT FINAL RULE—AMENDMENTS TO SAFETY AND
SOUNDNESS STANDARDS
The Office of the Comptroller of the Currency (OCC), the
Board of Governors of the Federal Reserve System
(Board), the Federal Deposit Insurance Corporation
(FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are updating their procedural rules
pertaining to safety and soundness standards issued under
section 39 of the Federal Deposit Insurance Act (FDI Act).
This joint final rule adopts, with only one technical change,
the Agencies' interim rules.
Effective November 29, 1999, 12C.F.R. Parts 30, 263,
364, and 570 are amended as follows:

Section 570.1-Authority, purpose, scope and
preservation of existing authority.

(c) Scope. This part and the Interagency Guidelines Establishing Safety and Soundness Standards as set forth at
Appendix A to this part and the Interagency Guidelines Establishing Year 2000 Standards for Safety and
Soundness as set forth at Appendix B to this part
implement the provisions of section 39 of the FDI Act
as they apply to savings associations.

Part 3 0 - S a f e t y and Soundness Standards
Accordingly, the interim rule amending 12 C.F.R. Part 30,
which was published at 63 Federal Register 55,486 on
October 15, 1998, was superseded by an interim rule
published at 64 Federal Register 52,638 on September 30,
1999.
Part 2 6 3 - R u l e s of Practice for Hearings
Accordingly, the interim rule amending 12 C.F.R. Part 263,
which was published at 63 Federal Register 55,486 on
October 15, 1998, is adopted as a final rule without change.

FINAL RULE—AMENDMENT

TO REGULATION A

The Board of Governors has amended 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 16, 1999, 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 3 6 4 - S t a n d a r d s for Safety and Soundness
Accordingly, the interim rule amending 12 C.F.R. Part 364,
which was published at 63 Federal Register 55,486 on
October 15, 1998, is adopted as a final rule without change.
Part 5 7 0 - S u b m i s s i o n and Review of Safety and
Soundness

Compliance Plans and Issuance of Orders to
Correct Safety and Soundness Deficiencies

Part 2 0 1 - E x t e n s i o n s 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. 12U.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:

1. The authority citation for Part 570 continues to read as
follows:

Section 201.51-Adjustment credit for depository
institutions.

Authority: 12U.S.C. 1831p-l.
2. Section 570.1(c) is revised to read as follows:



The rates for adjustment credit provided to depository
institutions under section 201.3(a) are:

52

Federal Reserve Bulletin • January 2000

Federal Reserve Bank

Rate

Effective

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

5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0

November
November
November
November
November
November
November
November
November
November
November
November

16,
18,
18,
16,
16,
17,
18,
18,
18,
16,
17,
16,

1998
1998
1998
1998
1998
1998
1998
1998
1998
1998
1998
1998

ORDERS ISSUED UNDER BANK HOLDING COMPANY
ACT

Orders Issued Under Section 3 of the Bank Holding
Company Act
Brookline Bancorp, MHC
Brookline, Massachusetts
Brookline Bancorp, Inc.
Brookline, Massachusetts
Order Approving Acquisition of Shares of a Bank
Holding Company
Brookline Bancorp, MHC and its subsidiary, Brookline
Bancorp, Inc., both of Brookline, Massachusetts (collectively "Brookline"), bank holding companies within the
meaning of the Bank Holding Company Act ("BHC Act"),
have requested the Board's approval under section 3 of the
BHC Act (12 U.S.C. §1842) to acquire up to 9.9 percent of
the voting shares of Medford Bancorp, Inc. ("Medford")
and thereby acquire an interest in Medford's wholly owned
subsidiary bank, Medford Savings Bank, both of Medford,
Massachusetts. 1
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published
(64 Federal Register 55,290 (1999)). The time for filing
comments has expired, and the Board has considered this
proposal and all comments received in light of the factors
set forth in section 3 of the BHC Act. Brookline is the 33rd
largest depository institution in Massachusetts, controlling
total deposits of $509.3 million, representing less than
1 percent of total deposits in depository institutions in the
state.2 Medford is the 15th largest depository institution in
Massachusetts, controlling $902.6 million in deposits, representing less than 1 percent of total deposits in depository
institutions in the state. Brookline has stated that it proposes to acquire the shares of Medford as a passive investment and that Brookline would not control Medford after
this investment.

1. The proposed acquisition would be made by Brookline Securities
Corp., a wholly owned subsidiary of Brookline Bancorp, Inc.
2. Asset and deposit data are as of June 30, 1999. In this context,
depository institutions include commercial banks, savings banks, and
savings associations.




In connection with this proposal, the Board received
comments from Medford objecting to the proposal on the
grounds that the investment would have an adverse effect
on the managerial resources and financial condition of
Brookline and Medford, and would harm the communities
that Medford serves. The Board has considered carefully
Medford's comments in light of the factors that the Board
must consider under section 3(c) of the BHC Act. 3
The Board previously has stated that the acquisition of
less than a controlling interest in a bank or bank holding
company is not a normal acquisition for a bank holding
company. 4 However, the requirement in section 3(a)(3) of
the BHC Act for Board approval before a bank holding
company acquires more than 5 percent of the voting shares
of a bank suggests that Congress contemplated the acquisition by bank holding companies of between 5 and
25 percent of the voting shares of banks. 5 On this basis, the
Board previously has approved the acquisition by a bank
holding company of less than a controlling interest in a
bank or bank holding company where the proposal meets
the factors set forth in the BHC Act. 6
Medford contends that the proposed investment would
constitute a controlling investment in Medford, and would
enable Brookline to exercise a coercive influence on Medford's corporate affairs. Brookline has agreed to abide by
certain commitments that the Board has relied on in other
cases to determine that an investing bank holding company
would not be able to exercise a controlling influence over
another bank holding company or bank for purposes of the
BHC Act. 7 For example, Brookline has committed not to
exercise or attempt to exercise a controlling influence over

3. The Board may not approve an application that would violate
state law. Whitney Nat'I Bank in Jefferson Parish v. Bank of New
Orleans & Trust Co., 379 U.S. 411, 419 (1965). Medford contends
that Massachusetts law requires Brookline to file an application with
the Massachusetts Board of Bank Incorporation ("State Bank
Board"). The Massachusetts Commissioner of Banks ("Commissioner") has been provided with notice of the application filed with Board,
as required under section 3 of the BHC Act, 12 U.S.C. § 1842(b)(1),
and is reviewing whether Brookline also is required to file an application with the State Bank Board. The Commissioner has not filed any
comments with the Board about this proposal. In addition, Massachusetts law appears to require Brookline to file such an application only
if Brookline owns or controls 25 percent or more of the voting stock
of each of two or more banking institutions. Mass. Gen. Laws ch.
167A, § 2(2)(b). At this time, Brookline owns or controls 25 percent
or more of the voting stock of only one banking institution. Accordingly, it does not appear at this time that the Board is precluded from
approving this proposal. The Board's approval of the application is
conditioned on Brookline obtaining any approval that is required by
Massachusetts law.
4. See, e.g., First Mariner Bancorp, 84 Federal Reserve
Bulletin
956, 957 (1998); Sun Banks, Inc., 71 Federal Reserve Bulletin 243
(1985) ("Sun Banks"); State Street Boston Corp., 67 Federal Reserve
Bulletin 862, 863 (1981).
5. See 12 U.S.C. § 1842(a)(3).
6. See, e.g., GB Bancorporation,
83 Federal Reserve Bulletin 115
(1997) (acquisition of up to 24.9 percent of the voting shares of a
bank); Mansura Bancshares, Inc., 79 Federal Reserve Bulletin 37
(1993) (acquisition of 9.7 percent of the voting shares of a bank
holding company).
7. See, e.g., National Bancshares Corp. of Texas, 82 Federal Reseme Bulletin 565 (1996); First Southern Bancorp, Inc., 82 Federal

Legal Developments

the management or policies of Medford or any of its
subsidiaries; not to seek or accept representation on the
board of directors of Medford or any of its subsidiaries;
and not to have any director, officer, employee, or agent
interlocks with Medford. Brookline also has committed not
to attempt to influence the dividend policies, loan decisions, or operations of Medford or any of its subsidiaries.
Moreover, Brookline, which proposes to acquire less than
10 percent of the voting shares of Medford, may not
acquire any additional shares of Medford without prior
Board approval under the BHC Act.
Medford contends that these commitments by Brookline
are insufficient to prevent Brookline from exercising a
controlling influence on Medford. The Board notes, however, that it has adequate supervisory authority to monitor
Brookline's compliance with its commitments, and expressly retains authority to initiate a control proceeding
against Brookline if facts presented later indicate that
Brookline or any of its subsidiaries or affiliates, in fact,
controls Medford for purposes of the BHC Act. Based on
these commitments and all other facts of record, it is the
Board's judgment that Brookline would not acquire control
of Medford for purposes of the BHC Act through consummation of this proposal.
Competitive Considerations
In considering an application under section 3 of the BHC
Act, the Board is required to evaluate a number of factors,
including the competitive effects of the proposal. The
Board previously has noted that one company need not
acquire control of another company in order to substantially lessen competition between them.8 The Board has
found that noncontrolling interests in directly competing
depository institutions may raise serious questions under
the BHC Act, and has concluded that the specific facts of
each case will determine whether the minority investment
in a company would be anticompetitive.9
Brookline and Medford compete directly in the Boston
banking market.10 If Brookline and Medford are considered as a combined organization, Brookline would be the
12th largest depository institution organization in the
Boston banking market, controlling $1.3 billion in deposits, representing less than 1 percent of total deposits in
depository institutions in the market." The HerfindahlHirschman Index ("HHI") for the Boston banking market
would remain unchanged at 1899.12.12 Accordingly, based

Reserve Bulletin 424 (1996). These commitments are set forth in the
Appendix.
8. See, e.g. First State Corp., 76 Federal Reserve Bulletin 376, 379
(1990); Sun Banks at 243.
9. See, e.g. Sun Banks at 244.
10. The Boston banking market is defined as the Boston Ranally
Metropolitan Area and the town of Lyndeboro in New Hampshire.
11. Market deposit data are as of June 30, 1998, and reflect
acquisitions through October 15, 1999.
12. Market share data are based on calculations that include the
deposits of thrift institutions at 50 percent. The Board previously has
indicated that thrift institutions have become, or have the potential to




53

on all the facts of record, the Board concludes that consummation of this proposal would not have a significantly
adverse effect on competition or on the concentration of
resources in any relevant market in which Brookline and
Medford compete.13
Other Factors
The Board also is required under section 3(c) of the BHC
Act to consider the financial and managerial resources and
future prospects of the companies and banks concerned.
Medford contends that Brookline's investment could distract the attention of Medford's management from the
operation of Medford, restrict Medford's ability to effect a
merger, and adversely affect Medford's employees and its
ability to retain customers. The Board believes that the
commitments made by Brookline to maintain its investment as a passive investment and not to exercise a controlling influence over Medford reduce the potential adverse
effects of the proposal. Moreover, the Board notes that
Brookline currently is well capitalized and would remain
well capitalized on consummation of the proposal. Based
on all the facts of record, the Board has concluded that the
financial and managerial resources and the future prospects
of Brookline, Medford, and their subsidiaries are consistent
with approval of this application, as are the other supervisory factors the Board must consider under section 3 of the
BHC Act. In addition, considerations relating to the convenience and needs of the communities to be served, including the record of performance of the institutions involved
under the Community Reinvestment Act (12 U.S.C. § 2901
et seq.), are consistent with approval of the application.
Conclusion
Based on the foregoing, and on all 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 Brookline with all commitments made in connection with this application, including
the commitments discussed in this order. The commitments
and conditions relied on by the Board in reaching this
decision are deemed to be conditions imposed in writing

become, significant competitors of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386, 387 (1989);
National City Corporation, 70 Federal Reserve Bulletin 743, 744
(1984). Thus, the Board regularly has included thrift deposits in the
calculation of market share on a 50-percent weighted basis. See, e.g.,
First Hawaiian, Inc., 11 Federal Reserve Bulletin 52, 55 (1991).
13. Under the DOJ 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. The Department of Justice has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anticompetitive elfects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by more than 200 points. The Department
of Justice has stated that the higher than normal thresholds for an
increase in the HHI when screening bank mergers and acquisitions for
anticompetitive effects implicitly recognize the competitive effects of
limited-purpose and other nondepository financial entities.

54

Federal Reserve Bulletin • January 2000

by the Board in connection with its findings and decision,
and, as such, may be enforced in proceedings under applicable law.
The 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 Boston,
acting pursuant to delegated authority.
By order of the Board of Governors, effective November 29, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

Appendix
As part of this proposal, Brookline Bancorp, MHC
("MHC"), Brookline Bancorp, Inc. ("SHC"), and Brookline Securities Corp. ("Securities Corp"), each of Brookline, Massachusetts, commit that they will not, without the
prior approval of the Federal Reserve Board, directly or
indirectly:
(1) Exercise or attempt to exercise a controlling influence over the management or policies of Medford
Bancorp, Inc. ("Medford") or any of its subsidiaries;
(2) Seek or accept representation on the board of directors of Medford or any of its subsidiaries;
(3) Have or seek to have any employee or representative
serve as an officer, agent, or employee of Medford or
any of its subsidiaries;
(4) Take any action that would cause Medford or any of
its subsidiaries to become a subsidiary of MHC,
SHC, Securities Corp, or any of their subsidiaries;
(5) Acquire or retain shares that would cause the combined interests of MHC, SHC, Securities Corp, and
any of their subsidiaries and their officers, directors,
and affiliates to equal or exceed 25 percent of the
outstanding voting shares of Medford or any of its
subsidiaries;
(6) Propose a director or slate of directors in opposition
to a nominee or slate of nominees proposed by the
management or the board of directors of Medford or
any of its subsidiaries;
(7) Solicit or participate in soliciting proxies with respect to any matter presented to the shareholders of
Medford or any of its subsidiaries;
(8) Attempt to influence the dividend policies or practices; the investment loan, or credit decisions or
policies; the pricing of services; personnel decisions;
operations activities (including the location of any
offices or branches or their hours of operation, etc.);
or any similar activities or decisions of Medford or
any of its subsidiaries;



(9) Dispose or threaten to dispose of shares of Medford
or any of its subsidiaries as a condition of specific
action or nonaction by Medford or any of its subsidiaries; or
(10) Enter into any other banking or nonbanking transactions with Medford or any of its subsidiaries, except
that MHC or SHC may establish and maintain deposit accounts with Medford's subsidiary depository
institution, provided that the aggregate balance of all
such deposit accounts does not exceed $500,000 and
that the accounts are maintained on substantially the
same terms as those prevailing for comparable
accounts of persons unaffiliated with Medford or any
of its subsidiaries.

The Sanwa Bank, Limited
Osaka, Japan
Order Approving the Acquisition of a Bank Holding
Company
The Sanwa Bank, Limited ("Sanwa"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), has requested the Board's approval under section 3 of the BHC Act (12 U.S.C. § 1842)
to retain up to 32 percent of the voting shares of The Toyo
Trust and Banking Company, Limited, Tokyo, Japan
("Toyo"), and thereby retain control of Toyo's wholly
owned U.S. subsidiary bank, Toyo Trust Company of
New York, New York, New York ("Toyo Bank"). 1
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(64 Federal Register 25,041 (1999)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in section 3 of the BHC Act.
Sanwa, with total consolidated assets of approximately
$418 billion, is the fourth largest banking organization in
Japan.2 In the United States, Sanwa owns Sanwa Bank
California, San Francisco, California ("Sanwa Bank"), a
state-chartered commercial bank. In addition, Sanwa operates branches in New York, New York, Chicago, Illinois,
and San Francisco and Los Angeles, California; and representative offices in Houston, Texas, and New York, New
York. Sanwa also engages in a broad range of permissible
1. On March 30, 1999, Sanwa acquired newly issued shares of Toyo
that, when aggregated with the 4.9 percent of Toyo's voting shares
previously held by Sanwa, represented approximately 32 percent of
Toyo's voting shares. This investment was part of a plan to increase
Toyo's capital, which was approved by the Japanese government. On
consummation of the investment, Sanwa placed the newly acquired
Toyo voting shares in a voting trust that does not permit Sanwa to vote
such shares until U.S. regulators act on Sanwa's proposed acquisition
of control of Toyo. Under the terms of the trust agreement, the voting
trust terminates if the Board and the New York State Banking Department ("Department") approve Sanwa's retention of its ownership
interest in Toyo. The Department approved Sanwa's application to
acquire control of Toyo on April 8, 1999.
2. Asset data are as of March 31, 1999, and are based on exchange
rates then applicable. Ranking data are as of December 31, 1998.

Legal Developments

nonbanking activities in the United States through subsid
iaries, including underwriting and dealing in debt and
equity securities to a limited extent.
Toyo, with total consolidated assets of approximately
$66 billion, is the 19th largest banking organization in
Japan. Toyo controls Toyo Bank and operates a branch in
New York, New York.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. For purposes of the BHC Act, the home state of
Sanwa is California,3 and Toyo Bank is located in New
York. All the conditions for an interstate acquisition enumerated in section 3(d) are met in this case.4 In light of all
the facts of record, the Board is permitted to approve the
proposal under section 3(d) of the BHC Act.
Competitive Considerations
Sanwa and Toyo compete directly in the New York/New
Jersey Metropolitan banking market ("New York banking
market"). 5 Sanwa's New York branch controls deposits
representing less than 1 percent of the deposits in the
market. Toyo, through its New York branch and Toyo
Bank, also controls deposits representing less than 1 percent of the deposits in the market.6 On consummation of
the proposal, numerous competitors would remain in the
market, and the market would remain unconcentrated.
Based on these and all other facts of record, the Board
concludes that consummation of the proposal would not
result in any significantly adverse effects on competition or
on the concentration of banking resources in the New York
banking market or any other relevant banking market.

3. A bank holding company's home state is that state in which the
total deposits of all banking subsidiaries of such company were the
largest on July 1, 1966, or the date on which the company became a bank
holding company, whichever is later. 12 U.S.C. § 1841(o) (4) (C).
4. Sanwa is adequately capitalized and adequately managed, as
defined by applicable law. 12 U.S.C. § 1842(d)(1)(A). Toyo Bank has
been in existence and operated continuously for at least the period
of time required by New York state banking law. See 12 U.S.C.
§ 1842 (d) (1) (B); N.Y. Banking Law §142-a (1998). On consummation of the proposal, Sanwa and its affiliates would control less than
10 percent of the total amount of deposits of insured depository
institutions in the United States. 12 U.S.C. § 1842(d)(2). All other
requirements of section 3(d) of the BHC Act would be met on
consummation of the proposal.
5. The New York banking market includes New York City; Nassau,
Orange, Putnam, Rockland, Suffolk, Sullivan, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex,
Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a portion of Mercer Counties in New Jersey; Pike County in
Pennsylvania; and portions of Fairfield and Litchfield Counties in
Connecticut.
6. Deposit data are as of June 30, 1998.




55

Certain Supervisory Considerations
Under section 3 of the BHC Act, the Board may not
approve an application involving a foreign bank unless the
bank is "subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities
in the bank's home country."7 The Board previously has
determined, in applications under the International Banking Act (12 U.S.C. § 3101 et seq.) ("IBA") and the BHC
Act, that certain Japanese commercial banks were subject
to comprehensive consolidated supervision by their home
country supervisor.8 In this case, the Board has determined
that Sanwa is supervised on substantially the same terms
and conditions as the other Japanese banks. Based on all
the facts of record, the Board has concluded that Sanwa is
subject to comprehensive supervision and regulation on a
consolidated basis by its home country supervisor.
The BHC Act also requires the Board to determine that
the foreign bank has provided adequate assurances that it
will make available to the Board such information on its
operations and activities and those of its affiliates that the
Board deems appropriate to determine and enforce compliance with the BHC Act. The Board has reviewed the
restrictions on disclosure in jurisdictions where Sanwa has
material operations and has communicated with relevant
government authorities concerning access to information.
Sanwa has committed that, to the extent not prohibited by
applicable law, it will make available to the Board such
information on the operations of Sanwa and any of its
affiliates that the Board deems necessary to determine and
enforce compliance with the BHC Act, the IBA, and other
applicable federal law. Sanwa also has committed to cooperate with the Board to obtain any waivers or exemptions
that may be necessary in order to enable Sanwa to make
any such information available to the Board. In light of
these commitments and other facts of record, the Board has
concluded that Sanwa has provided adequate assurances of
access to any appropriate information the Board may request. For these reasons, and based on all the facts of
record, the Board has concluded that the supervisory factors it is required to consider under section 3(c)(3) of the
BHC Act are consistent with approval.

7. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the
Board determines whether a foreign bank is subject to consolidated
home country supervision under the standards set forth in Regulation K. 12 C.F.R. 225.13(a)(4). Regulation K provides that a foreign
bank may be considered subject to consolidated supervision if the
Board determines that the bank is supervised or regulated in such a
manner that its home country supervisor receives sufficient information on the worldwide operations of the foreign bank, including the
relationships of the bank to its affiliates, to assess the foreign bank's
overall financial condition and compliance with law and regulation.
12 C.F.R. 211.24(c)(1)(h).
8. See The Fuji Bank, Limited, 85 Federal Reserve Bulletin 338
(1999); and The Mitsubishi Bank, Limited, 82 Federal Reserve Bulletin 436 (1996).

56

Federal Reserve Bulletin • January 2000

Financial, Managerial, and Convenience and Needs
Considerations
The Board also has carefully considered the financial and
managerial resources and future prospects of Sanwa, Toyo,
and their respective subsidiaries, and the effect the proposal
would have on such resources. The Board notes that the
proposal is incidental to a corporate restructuring of Japanese banking organizations that is intended to enhance the
overall financial strength and future prospects of both
organizations. Sanwa's reported capital levels exceed the
minimum levels that would be required under the Basle
Capital Accord, and its capital levels are considered equivalent to the capital levels that would be required of a U.S.
banking organization under similar circumstances. The
Board notes, moreover, that the proposal does not involve
any expansion of the banking or nonbanking activities of
Toyo, and that Sanwa's investment in Toyo has strengthened Toyo's capital position and made additional financial
resources available to Toyo Bank.
In addition, the Board has reviewed supervisory information from the home country authorities responsible for
supervising Sanwa and Toyo concerning the proposal and
the condition of the parties, confidential financial information from Sanwa and Toyo, and reports of examination
from the appropriate federal and state supervisors of the
affected organizations assessing the financial and managerial resources of the organizations. Based on all the facts of
record, the Board has concluded that the financial and
managerial resources and future prospects of the organizations involved in the proposal are consistent with approval.
Sanwa Bank received an "outstanding" performance
rating at its most recent examination under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA") by
the Federal Deposit Insurance Corporation ("FDIC"), as
of August 24, 1998. Toyo Bank also received an "outstanding" CRA performance rating from the FDIC at its most
recent examination, as of June 8, 1998. In light of all the
facts of record, the Board has concluded that considerations relating to the convenience and needs of the communities to be served, including the records of performance of
the relevant depository institutions under the CRA, are
consistent with approval.

with its findings and decision, and, as such, may be enforced in proceedings under applicable law.
By order of the Board of Governors, effective November 24, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

Orders Issued Under Section 4 of the Bank Holding
Company Act
Bayerische Hypo- und Vereinsbank AG
Munich, Germany
Deutsche Bank AG
Deutsche Bank AG
Frankfurt, Germany
Stichting Prioriteit ABN AMRO Holding
Stichting Administratiekantoor ABN AMRO Holding
ABN AMRO Holding N. V.
ABN AMRO Bank N. V.
All of Amsterdam, The Netherlands
Order Approving Notices to Engage in Nonbanking
Activities

Conclusion

Bayerische Hypo- und Vereinsbank AG ("BHV"), a foreign banking organization subject to the Bank Holding
Company Act ("BHC Act"), and Deutsche Bank AG
("Deutsche Bank") and Stichting Prioriteit ABN AMRO
Holding ("ABN AMRO"), Stichting Administratiekantoor
ABN AMRO Holding, ABN AMRO Holding N.V., and
ABN AMRO Bank N.V., bank holding companies within
the meaning of the BHC Act, have requested the Board's
approval under section 4(c)(8) of the BHC Act (12 U.S.C.
§1843 (c) (8)), and section 225.24 of the Board's Regulation Y (12 C.F.R. 225.24) to retain up to 12.5 percent of the
voting interests in Identrus, LLC, New York, New York
("Identrus"), and to engage through Identrus and other
nonbank subsidiaries in acting as a certification authority
("CA") in the United States in connection with financial
and nonfinancial transactions and other related activities.1

Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved. The Board's approval is specifically
conditioned on compliance by Sanwa with all the commitments made in connection with the application and on the
Board receiving access to information on the operations or
activities of Sanwa and any of its affiliates that the Board
determines to be appropriate to determine and enforce
compliance by Sanwa and its affiliates with applicable
federal statutes. 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

1. BHV, Deutsche Bank, and ABN AMRO and its subsidiaries listed
above are hereafter collectively referred to as "Notificants". Foreign
banks, such as Notificants, may engage in permissible banking activities in the United States directly through a U.S. branch or agency. A
foreign bank must, however, receive the Board's prior approval under
section 4(c)(8) to engage in the United States through a nonbank
subsidiary in activities that are closely related to banking. In this case,
Notificants have requested approval under section 4(c)(8) of the BHC
Act to engage in the proposed activities in the United States through
Identrus and other nonbank subsidiaries to provide themselves maximum flexibility in structuring their Identrus-related activities. For
purposes of this order, references to activities conducted by Notificants are intended to refer to activities conducted through Identrus or
other U.S. nonbanking companies.




Legal Developments

Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(64 Federal Register 22,866 (1999)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act. BHV, with total
consolidated assets of $575 billion,2 is the second largest
commercial banking organization in Germany, and operates branches in New York, New York, and Chicago,
Illinois, and an agency in Los Angeles, California.
Deutsche Bank, with total consolidated assets of
$724 billion, is the largest commercial banking organization in Germany. Deutsche Bank controls three subsidiary
banks in the United States, and operates a branch in New
York, New York, and a representative olfice in San Francisco, California.
ABN AMRO, with total consolidated assets of
$544 billion, is the largest commercial banking organization in The Netherlands. ABN AMRO controls seven depository institutions in Illinois and one commercial bank in
New York. ABN AMRO Bank N.V. also operates branches
in Boston, Massachusetts; Chicago, Illinois; New York,
New York; Pittsburgh, Pennsylvania; and Seattle, Washington; and agencies in Atlanta, Georgia; Miami, Florida;
Houston, Texas; and Los Angeles and San Francisco, California.
Each Notificant also engages in a number of nonbanking
activities in the United States.
Proposed Activities
Identrus is a joint venture among Notificants and other
commercial banks and foreign banking organizations.3 Under the proposal, Identrus would act as the global rulemaking and coordinating body for a network of financial institutions that would act as CAs and thereby provide services
designed to verify or authenticate the identity of customers
conducting financial and nonfinancial transactions over the
Internet and other "open" electronic networks. To provide
these services, Identrus and its network of participating
financial institutions (the "Identrus System") would utilize
digital certificates and digital signatures created through
the use of public key cryptography.
In a CA system using public key cryptography, a company generates (or is assigned) a public key/private key

2. Asset data are as of June 30, 1999, and ranking data are as of
December 31, 1998.
3. Bank of America NT & SA, Charlotte, North Carolina, and
Citibank, N.A., New York, New York, have applications pending
before the Office of the Comptroller of the Currency to invest indirectly in Identrus. The Chase Manhattan Bank, New York, New York,
received the approval of the New York State Banking Department to
invest indirectly in Identrus. See Letter from P. Vincent Conlon,
Deputy Superintendent of Banks, New York State Banking Department, to Ronald C. Mayer, The Chase Manhattan Bank, dated April 9,
1999 ("Chase Letter"). Identrus expects other U.S. commercial banks
and foreign banking organizations to seek approval from appropriate
regulatory authorities to invest in Identrus and engage in related
activities.




57

pair and registers as the unique "owner" of the key pair
with a CA.4 Private keys and public keys are a set of
different but related mathematical functions that can be
used to encrypt and decrypt electronic communications. A
message encrypted by a particular private key can be
decrypted only by its corresponding public key. Although a
private key and its corresponding public key are related, a
private key cannot feasibly be derived from its corresponding public key. Thus, while a private key must be kept
confidential by the company that is the registered "owner"
of the key pair, the company's public key can be made
publicly available without jeopardizing the confidentiality
of the company's private key. A company sending a business communication (e.g., a purchase order) over an open
electronic network like the Internet to another entity uses
its confidential private key to digitally sign the message
being sent. A digital signature is a compressed and encrypted version of the message to which it is attached. The
entity receiving the digitally signed message then uses the
sender's public key to decrypt the digital signature.5 If the
receiver successfully decodes the signature with the sender's public key, the receiver can be assured that the message was created using the sender's private key.6 To be
assured that the message was actually sent by the purported
sender, however, the receiver must confirm that the private
key/public key pair used to sign and decode the message is
uniquely "owned" by the purported sender. A CA provides
this assurance by issuing "digital certificates" certifying
that the relevant private key/public key pair is uniquely
associated with the message sender and verifying upon
request the validity of such digital certificates. Notificants
and other financial institutions participating in the Identrus
System ("Participants") 7 would create unique private key/
public key pairs for, and issue digital certificates on behalf
of, eligible customers that contract with a Participant to
receive Identrus identity authentication services.8 Each Par-

4. A number of nonbanking companies currently operate C A systems that rely on public key cryptography and provide identity authentication services to senders and receivers of electronic communications.
5. The sender's public key may be attached to the digitally signed
communication, or the receiver of the message may obtain the sender's public key from a publicly available database.
6. The receiver also can confirm that the message was not altered
after it was signed by comparing the message received to the decrypted version of the message text embedded in the digital signature.
7. Participation in the Identrus System is available only to organizations that are engaged primarily in the business of providing financial
services, are subject to regulation and examination by a government
authority in their home country, and that meet certain eligibility
criteria, such as minimum capital requirements and debt rating criteria. A Participant also must agree to be bound by the Identrus
operating rules and execute certain participation agreements. Financial institutions would not be required to purchase an ownership
interest in Identrus to become a Participant.
8. Participants may provide Identrus-related services only to customers that have agreed to be bound by applicable provisions of the
Identrus operating rules and have signed the appropriate customer
agreements. The Identrus operating rules allow Participants to provide
Identrus-related services only to business entities, such as corporations, and governmental organizations, and not to natural persons. The

58

Federal Reserve Bulletin • January 2000

ticipant would act as a repository for the digital certificates
that it has issued, i.e., it would maintain a database containing information on the status of the outstanding, expired, or
revoked digital certificates that it has issued to customers.
Participants also would verify for third parties the validity
of digital certificates issued to their customers and, upon
request of the third party, may provide an explicit warranty
as to the validity of the customers' digital certificates.9
Participants also may process and transmit verification and
warranty requests received from customers concerning digital certificates issued by other Participants in the Identrus
System. In addition, Participants may provide customers
with a limited range of software and hardware required for
customers to utilize the Identrus System.10
Identrus would provide the infrastructure framework
within which Participants would act as CAs and provide
related services. The primary function of Identrus would be
to act as the "root certification authority" of the Identrus
System, i.e., issuing digital certificates to Participants that
establish the status of Participants as CAs in the Identrus
System and authenticating for customers of, and Participants in, the Identrus System the identity of Participants.11
Identrus also would (i) establish and maintain the operating
rules governing the Identrus System, including the minimum technical requirements for digital certificates and
other components of the System; (ii) monitor compliance
by Participants with the System's operating rules and technical standards; and (iii) monitor collateral requirements
and aggregate warranty exposure for Participants in the
Identrus System.12

Identrus operating rules and customer agreements would make each
customer contractually responsible for ensuring that its private key is
kept confidential.
9. The operating rules of the Identrus System would provide that a
company relying on a digital certificate issued by a Participant would
have recourse against the Participant only if the company purchased
an explicit warranty from the Participant and then only up to amount
of the purchased warranty. A Participant that issues a digital certificate
could refuse to issue a warranty with respect to a digital certificate for
any bona fide reason. The Identrus System would limit the aggregate
amount of warranties that a Participant may have outstanding at any
one time and would require each Participant to post collateral with
Identrus to cover its warranty exposure.
10. For example, Participants may provide smart cards containing
digital certificates and smart card readers to their customers.
11. Digital certificates issued by a Participant to a customer are
digitally signed by the Participant with the Participant's own private
key and are accompanied by a digital certificate issued by Identrus.
The digital certificates issued by Identrus would certify that the
Participant is an authorized Participant in the Identrus System and that
the private key used by a Participant to digitally sign its certificates is
uniquely associated with the Participant, thereby authenticating the
identity of the Participant.
12. The activities of Notificants and Identrus would be limited to
providing the identity authentication and related services described
above. Notificants and Identrus would not provide a general encryption or electronic message service, or any warranty of the underlying
financial or nonfinancial transaction between customers whose identities are authenticated through the use of the Identrus System.




Permissibility of Proposed Activities
Section 4(c)(8) of the BHC Act provides that a bank
holding company may, with the Board's approval, engage
in any activity that the Board determines to be closely
related to banking.13 The Board previously has authorized
bank holding companies under section 4(c)(8) of the BHC
Act to act as CAs and provide identity authentication
services in connection with payment-related and other financial transactions conducted over electronic networks.14
The Board has not previously authorized bank holding
companies under section 4(c)(8) to act as CAs or provide
identity authentication services in connection with nonfinancial transactions.
In determining whether an activity is closely related to
banking, the Board and the courts look to whether
(1) banks generally provide the proposed services;
(2) banks generally provide services that are operationally
or functionally so similar to the proposed services as to
equip them particularly well to provide the proposed services; or (3) banks generally provide services that are so
integrally related to the proposed services as to require
their provision in a specialized form.15
Banks and bank holding companies have long provided
identity authentication services in connection with nonfinancial transactions conducted by third parties and their
own traditional banking and lending activities. For example, banks and bank holding companies are authorized to
provide notary services to customers.16 The role of a notary
is to authenticate signatures on financial or nonfinancial
documents for the benefit of third parties.17 In order to
verify a signature on a paper-based document, a notary
must verify the identity of the person signing the document. The role served by a CA with respect to electronic
documents is functionally similar to the role served by a
notary with respect to paper-based documents.18
Similarly, banks traditionally have identified their customers to third parties through the issuance of letters of

13. 12 U.S.C. § 1843(c)(8).
14. See 12 C.F.R. 225.28(b)(14); Banc One Corporation, Inc., 83
Federal Reserve Bulletin 602, 606 (1997); Citicorp, 68 Federal Reserve Bulletin 505, 510 (1982).
15. See National Courier Association v. Board of Governors of the
Federal Reserve System, 516 F.2d 1229, 1237 (D.C. Cir. 1975). In
addition, the Board may consider any other basis that demonstrates
that the proposed activity has a reasonable or close connection or
relationship to banking or managing or controlling banks. See Board
Statement Regarding Regulation Y, 49 Federal Register 806 (1984);
Securities Industry Association v. Board of Governors of the Federal
Reserve System, 468 U.S. 207, 210-11 n.5 (1984).
16. See OCC Unpublished Interpretive Letter dated June 11, 1985;
Popular, Inc., 84 Federal Reserve Bulletin 481 (1998).
17. 58 Am. Jur. 2d Notaries Public § 31 (2d ed. 1989).
18. The American Bar Association, for example, has noted that the
issuance of digital certificates by CAs is "analogous to traditional
certification processes undertaken by notaries with respect to documents executed with pen and ink." See Digital Signature Guidelines,
Information Security Committee, Electronic Commerce and Information Technology Division, Section of Science and Technology, American Bar Association, p. 54 (Aug. 1, 1996).

Legal Developments

introduction or letters of reference.19 In addition, banks and
bank holding companies routinely authenticate the identity
of customers and noncustomers in connection with their
authorized check cashing functions.20
Banks and bank holding companies also have long been
authorized to issue signature guarantees to issuers of securities and their transfer agents in connection with the
transfer of securities.21 A bank issuing a signature guarantee warrants that the signature of the customer indorsing a
certificated security or authorizing the transfer of an uncertificated security is authentic. The issuing bank also warrants that the signer was an appropriate person to indorse
the security or authorization (or, if the signature is by an
agent, that the agent had actual authority to act on behalf of
the appropriate person) and the signer had legal capacity to
sign.22 In light of these warranties, a bank providing a
signature guarantee must verify the identity of the customer providing the indorsement or signing the instruction.23
Furthermore, identity authentication services are an integral part of many traditional banking functions. Accordingly, banks and bank holding companies have developed
sophisticated methods for authenticating the identity of
customers and noncustomers that transact business or communicate with the bank or bank holding company through
electronic means or otherwise. Many of these activities are
operationally and functionally similar to the proposed activities and equip banks and bank holding companies particularly well to provide the proposed services. For example, banks and bank holding companies maintain systems
to electronically authenticate the identity of persons engaged in credit and debit card, automated teller machine
("ATM"), home banking, and wire transfer transactions
with the institution.24 Banks and bank holding companies

19. Banks have drafted letters of introduction or letters of reference
on behalf of their customers that serve the purpose of introducing the
customer to other banks or third parties with which the customer seeks
to do business. See McLeod v. Fourth National Bank of St. Louis,
122 U.S. 528, 534 (1887); OCC Interpretive Letter No. 610, reprinted
in [1992-1993 Transfer Binder] CCH Fed. Banking L. Rep. 83,448
(Oct. 8, 1992).
20. Under the Uniform Commercial Code, a bank that accepts a
check for deposit warrants to the drawee bank that all indorsements on
the check are genuine, and the bank is liable to the drawee bank for
the amount of the check plus expenses and lost interest if an indorsement on the check was forged. See, e.g., N.Y. U.C.C. § 4 - 2 0 7
(McKinney 1991).
21. See Letter from William B. Glidden, OCC Assistant Director,
dated Dec. 5, 1985; see also Acceptance of Signature Guarantees from
Eligible Guarantor Institutions, Exchange Act Rel. No. 29,663, [19831984 Transfer Binder] Fed. Sec. L. Rep. (CCH) 84,825, at 82,119
(Sept. 9, 1991); U.S. League of Savings Associations, SEC No-Action
Letter, [1982-1983 Transfer Binder] Fed. Sec. L. Rep. (CCH) 77,412,
at 78,500 (Apr. 29, 1983). Broker-dealer subsidiaries of bank holding
companies also have provided signature guarantees.
22. See, e.g., N.Y. U.C.C. § 8-306(a) and (b) (McKinney 1999).
23. A bank issuing a signature guarantee is liable to the issuer of the
security or its transfer agent for any loss that results from a breach of
any of these warranties by the bank. See, e.g., N.Y. U.C.C. § 8-306(h)
(McKinney 1999).
24. Article 4A of the Uniform Commercial Code, in fact, encourages banks to develop and maintain commercially reasonable security




59

also electronically authenticate the identity of persons in
connection with the check and credit card verification
services they are authorized to provide to merchants and
other businesses.25
The Board notes, moreover, that state banks and national
banks recently have been authorized to act as CAs and
provide identity authentication services in connection with
financial and nonfinancial transactions conducted over
electronic networks.26 Based on the foregoing, the Board
concludes that acting as a CA and, more generally, authenticating the identity of customers conducting financial and
nonfinancial transactions are activities that are closely related to banking within the meaning of section 4(c)(8) of
the BHC Act.
As discussed above, Identrus and Notificants also propose to engage in a number of activities as part of and in
connection with their proposed CA activities. These activities include (i) processing, transmitting, and storing data
necessary for the operation of the Identrus System, such as
digital certificates, requests for verification of digital certificates, and warranty requests; (ii) developing and marketing software and hardware necessary for the operation of
the Identrus System; and (iii) complying with, monitoring,
and enforcing the collateral posting requirements associated with identity warranties. In addition, Identrus would
establish operating policies, procedures, and guidelines for
the Identrus System.
The Board's Regulation Y permits bank holding companies to provide data processing and data transmission services and facilities (including software and hardware) for
the processing and transmission of financial, banking, or
economic data, and to engage in activities related to making, acquiring, brokering, or servicing extensions of credit,
such as posting collateral and monitoring collateral requirements.27 Regulation Y also permits bank holding companies to engage in incidental activities that are necessary to
the conduct of an activity that is closely related to banking.28 Identrus and Notificants have represented that they
would engage in the additional activities only in connection with their CA activities and would not engage in such
activities separate or apart from their CA activities. Notificants also have committed that the data processing and
data transmission activities of Notificants and Identrus,
including any proposed development or sale of hardware

procedures, such as algorithms or other encryption devices, for authenticating the identity of customers that transmit wire transfer instructions to the bank. See, e.g., N.Y. U.C.C. § 4-A-202 (McKinney 1999).
25. See 12 C.F.R. 225.28(b)(2)(iii); Barnett Banks of Florida, Inc.,
71 Federal Reserve Bulletin 648 (1985); OCC Unpublished Interpretive Letter dated March 26, 1982.
26. See Chase Letter, OCC Conditional Approval No. 267 (Jan. 12,
1998).
27. See 12 C.F.R. 225.28(b)(2) and (14). Under Regulation Y, a
bank holding company may develop and sell hardware and software
that is designed and marketed for the processing and transmission of
financial, banking, or economic data, and may develop and sell
general purpose hardware so long as such general purpose hardware
does not constitute more than 30 percent of the cost of any packaged
offering. See 12 C.F.R. 225.28(b)(14).
28. 12 C.F.R. 225.21(a)(2).

A66 Federal Reserve Bulletin • January 2000

and software, will comply with the Board's regulations and
interpretations. In light of the nature of these additional
activities, the fact that they would be conducted only in
connection with the CA activities of Identrus and Notificants, and all other facts of record, the Board concludes
that these activities are encompassed within the activities
previously approved by the Board by regulation or are
incidental to the permissible CA activities of Identrus and
Notificants and, therefore, are permissible under Regulation Y.29
Other Considerations
In order to approve the notices, the Board also must
determine that the performance of the proposed activities
by Notificants and Identrus "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."30 As part of its evaluation of
these factors, the Board considers the financial and managerial resources of Notificants and their subsidiaries, and
the effect the transaction would have on such resources.31
The Board notes that each Notificant maintains capital
equivalent to the capital levels that would be required of a
U.S. banking organization. Based on all the facts of record,
including confidential examination reports and financial
information submitted by Notificants, the Board has concluded that financial and managerial considerations are
consistent with approval of the proposal.
The Board has carefully considered the possibility that
Identrus, Notificants, and their customers could expose
themselves to the risks of electronic interception, interference, and fraud by operating and participating in a system
that provides digital certification services for transactions
conducted over open electronic networks like the Internet.
The Board has carefully considered the proposal in light of
these risks and the policies and procedures that the Identrus
System would use to mitigate such risks. The Board notes
that an organization would be eligible to become a Participant in the Identrus System only if it provides financial
services, is regulated and examined by a government authority in its home country, meets minimum capital standards, and has a minimum long-term debt rating. Identrus
and Notificants also intend to use sophisticated cryptographic
methods to seek to ensure the security of digital certificates
and to adopt a highly secure root CA technology.
In addition, as noted above, Participants and customers
would be required to enter into written contracts that
carefully define the functions, responsibilities, and scope of
29. Notificants may engage in data processing and data transmission
activities, including the development and sale of hardware and software, pursuant to this order only to the extent such activities are
necessary to permit the proper operation of the Identrus System.
Notificants and Identrus also must conduct their data processing and
data transmission activities subject to the software and hardware
limitations contained in Regulation Y.
30. 12 U.S.C. § 1843(c)(8).
31 .See 12 C.F.R. 225.26(b).




liability of the relevant parties and require the Participant
and customer to comply with the operating rules of Identrus before they are permitted to participate in the Identrus
System.32 Each digital certificate issued by a Participant
would indicate that the recipient of the certificate may not
rely on the certificate unless the recipient purchases a
separate warranty from the Participant issuing the certificate. Furthermore, Identrus proposes to (i) establish limits
on each Participant's per transaction and aggregate warranty exposure and monitor each Participant's compliance
with these limits, (ii) require Participants to provide collateral to secure their warranty exposure and monitor compliance with such collateral requirements, and (iii) maintain a
comprehensive auditing system that would monitor the
adherence of Participants to the Identrus operating rules
and technical standards.
The Board recognizes that neither the cryptographic
methods employed by Identrus nor any other security system can provide absolute protection against the risks noted
above. The nature of these risks is not different, however,
from those to which more traditional banking operations
are exposed in other forms. The Board expects banking
organizations considering whether to act as CAs to analyze
carefully the associated risks, and to evaluate carefully
whether those risks are consistent with their policies relating to the security of customer information and other
data.33 The Board believes that such analyses and evaluations would mitigate the risk that acting as a CA would
result in unsound banking practices.34
The Board also has carefully considered the competitive
effects of the proposal. Notificants do not currently act as
CAs in the United States, and consummation of the proposal would increase competition in the market for CA
services. In addition, the Board notes that the Identrus
System would permit Notificants and other Participants in

32. Notificants have indicated that the Identrus System is in the
process of finalizing its operating rules, including the technical specifications for the system, and sample Participant and customer agreements. The Board has carefully reviewed the Identrus System's draft
operating rules and agreements, and Notificants have committed to
provide the Federal Reserve System with the final version of the
operating rules (including the technical specifications) and sample
Participant and customer agreements prior to commencing operations.
33. The Board notes that Identrus has engaged an independent
public accounting firm to conduct a detailed risk analysis of the
Identrus System. Moreover, Notificants have agreed to treat Identrus
as a subsidiary for purposes of the BHC Act, and Identrus has
committed to include a provision in any contract with a vendor that
provides services covered by the Bank Service Company Act
(12 U.S.C. § 1861 et seq.) indicating that the Identrus-related operations of that vendor will be subject to the examination and regulatory
authority of the Board.
34. Notificants have committed that neither Notificants nor Identrus
will represent that the Board's approval of these notices constitutes an
endorsement of Notificants' or Identrus's products or services by the
Federal Reserve System, and neither Notificants nor Identrus will
indicate in any of their marketing efforts or materials, either oral or
written, that the Federal Reserve System assures or has approved or
endorsed the security, functionality, or effectiveness of the products or
services offered by Notificants or Identrus.

Legal Developments

the Identrus System to compete with each other to provide
CA and related services to customers.
Notificants have stated that consummation of the proposal would facilitate the use of the Internet and other open
electronic networks for business-to-business electronic
commerce, and allow companies to reduce the transaction
costs associated with doing business. The Board also believes that consummation of the proposal would enhance
the ability of Notificants to meet the needs of their customers. In addition, as the Board previously has noted, there
are public benefits to be derived from permitting capital
markets to operate so that banking organizations can make
potentially profitable investments in nonbanking companies and from permitting banking organizations to allocate
their resources in the manner they consider to be most
efficient when such investments and actions are consistent,
as in this case, with the relevant considerations under the
BHC Act.35
Based on the foregoing and all other facts of record, the
Board has determined that consummation of the proposal
can reasonably be expected to produce benefits to the
public that outweigh any potential adverse effects of the
proposal. Accordingly, based on all the facts of record, the
Board has determined that the balance of public interest
factors that the Board must consider under the proper
incident to banking standard of section 4(c)(8) of the BHC
Act is favorable and consistent with approval.
Conclusion
Based on the foregoing and all the facts of record, the
Board has determined that the proposal should be, and
hereby is, approved. The Board's approval is specifically
conditioned on compliance by Notificants with all the
commitments made in connection with the notices, including the commitments discussed in this order, and the conditions set forth 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 225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)), and to the Board's
authority to require such modification or termination of the
activities of a bank holding company or any of its subsidiaries as the Board finds necessary to ensure compliance
with, or to prevent evasion of, the provisions of the BHC
Act and the Board's regulations and orders issued thereunder. These commitments and conditions are deemed to be
conditions imposed in writing by the Board in connection
with its findings and decision, and, as such, may be enforced in proceedings under applicable law. This proposal
shall not be consummated later than three months after the
effective date of this order, unless such period is extended
for good cause by the Board or by the appropriate Federal
Reserve Bank, acting pursuant to delegated authority.
By order of the Board of Governors, effective November 10, 1999.

35. See, e.g., Banc One Corporation, 84 Federal Reserve
553 (1998).




61

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

J.P. Morgan & Co. Incorporated
New York, New York
UBS AG
Zurich, Switzerland
Order Approving Notices to Engage in Nonbanking
Activities
J.R Morgan & Co. Incorporated ("JPM"), a bank holding
company within the meaning of the Bank Holding Company Act ("BHC Act"), and UBS AG ("UBS"), a foreign
banking organization subject to the BHC Act, have requested the Board's approval under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.24 of
the Board's Regulation Y (12 C.F.R. 225.24) to acquire or
retain more than 5 percent of the voting interests in
TP Group LDC, Grand Cayman, Cayman Islands ("TP
Group"), and its majority owned subsidiary, Tradepoint
Financial Networks pic, London, United Kingdom
("Tradepoint"), and thereby engage in operating a securities exchange.
Notice of the proposals, affording interested persons an
opportunity to submit comments, has been published
(64 Federal Register 46,196, 48,397, and 48,643 (1999)).
The time for filing comments has expired, and the Board
has considered the notices and all comments received in
light of the factors set forth in section 4(c)(8) of the BHC
Act.
JPM, with total consolidated assets of $269 billion, is the
fifth largest banking organization in the United States.
UBS, with total consolidated assets of $583 billion, is the
largest banking organization headquartered in Switzerland.1 UBS operates branches in Los Angeles and
San Francisco, California; Stamford, Connecticut; Chicago, Illinois; and New York, New York, and agencies in
Miami, Florida; and Houston, Texas. JPM and UBS also
engage through subsidiaries in a broad range of nonbanking activities in the United States and worldwide.
JPM proposes to control approximately 17 percent of the
voting shares of TP Group, and UBS proposes to control
approximately 11 percent of the voting shares of
TP Group.2 TP Group owns approximately 54.1 percent of

1. Asset data are as of June 30, 1999, and ranking data are as of
December 31, 1998.
2. JPM currently owns directly and indirectly an approximately
16 percent nonvoting interest in TP Group and UBS currently owns a
10.79 percent voting interest in TP Group. JPM and UBS acquired
these interests in July 1999 in reliance on section 4(c)(13) of the BHC
Act and the Board's Regulation K (12 C.F.R. Part 211). On consummation of the proposal, JPM would convert its entire non-voting
interest in TP Group into a voting interest in the organization. In
Bulletin
connection with this conversion, JPM also would acquire an addi-

A66 Federal Reserve Bulletin • January 2000

the outstanding voting shares of Tradepoint, which operates the Tradepoint Stock Exchange ("Exchange"), an
electronic securities exchange for the secondary trading of
equity and equity-related securities listed on the London
Stock Exchange. JPM and UBS also have stated that Tradepoint anticipates establishing an office or subsidiary in the
United States. In light of these proposed actions, JPM and
UBS have requested the Board's approval under section 4(c)(8) of the BHC Act to control their interests in
TP Group.3
The Exchange is a screen-based electronic market that
provides securities trade matching, execution, and related
services to U.S. and foreign market-makers, broker-dealers,
and institutional investors that become members of the
Exchange.4 Currently, members may access the Exchange
and enter bid and ask quotes through electronic terminals
linked to certain financial networks (e.g., a Bloomberg
terminal) or through a personal computer linked directly to
the Exchange. Terminals linked to the Exchange can be
located anywhere in the world, though trading currently
may occur only during U.K. business hours.5 Orders entered into the Exchange's system are displayed on separate
electronic order books for each security, which displays, in
descending order, the best bid and ask quotations for the
security. The Exchange automatically and continuously
matches equal bid and ask offers for each listed security on
a first-come, first-served basis.6

which is operated by CRESTCo., a corporation established
by the Bank of England for the settlement of uncertificated
U.K. equities.7 Tradepoint is not affiliated with the London
Clearing House or CRESTCo.
The Exchange is a recognized investment exchange under Section 37(3) of the U.K. Financial Services Act 1986,
and is regulated and supervised by the U.K. Financial
Services Authority ("FSA") under the securities laws of
the United Kingdom. Although Tradepoint makes its services available to customers in the United States, the
Securities and Exchange Commission ("SEC") has granted
Tradepoint a limited volume exemption from the registration requirements of section 5 of the Securities Exchange
Act of 1934 ("1934 Act"). 8 The SEC's exemptive order
permits Tradepoint to operate in the United States without
registering as a securities exchange so long as (i) the
Exchange's average daily dollar value of trades involving
U.S. members does not exceed $40 million, and (ii) the
Exchange's worldwide average daily volume does not exceed 10 percent of the average daily trading volume on the
London Stock Exchange. The SEC's exemptive order also
requires that the Exchange comply with a number of other
conditions designed to protect U.S. investors and to ensure
fair and orderly markets.

Tradepoint does not take a principal position in securities, clear or settle the securities transactions executed on
the Exchange, or assume any principal risk for securities
trades executed on the Exchange. Tradepoint and its shareholders also are under no obligation to guarantee a member's trades. Each member of the Exchange is required to
be a member of the London Clearing House, or to appoint
a member of the London Clearing House to clear the
member's trades on the Exchange. Trades matched by the
Exchange are registered at the end of each business day
with the London Clearing House in the name of the appropriate clearing member. The London Clearing House then
becomes the counterparty to each side of the trade until it is
settled. Settlement occurs through the CREST system,

Section 4(c)(8) of the BHC Act provides that a bank
holding company may, with Board approval, engage in any
activity that the Board determines to be "so closely related
to banking or managing or controlling banks as to be a
proper incident thereto." In considering whether an activity
is closely related to banking, the Board and the courts look
to whether banks generally (1) conduct the proposed activity, (2) provide services that are operationally or functionally so similar to the proposed services as to equip them
particularly well to provide the proposed services, or
(3) provide services that are so integrally related to the
proposed services as to require their provision in a specialized form.9
The Board has not previously determined by regulation
or order that operating a securities exchange is closely
related to banking within the meaning of section 4(c)(8) of
the BHC Act. The principal function of a securities exchange is to provide a centralized facility for the execution,

tional 1 percent of TP Group's shares from a third party. After the
share conversion and purchase, JPM would control approximately
17 percent of the voting shares of TP Group.
3. A bank holding company must obtain the Board's approval under
section 4(c)(8) of the BHC Act if a foreign company held by the bank
holding company seeks to engage in business in the United States.
4. As of June 30, 1999, the Exchange had approximately 92 members. Unlike many U.S. securities exchanges, the Exchange is not
owned by its members but rather by its shareholders, which may or
may not be members of the exchange.
5. The Exchange's current trading hours are Monday to Friday,
7:30 A.M. to 5:30 P.M. London time, with a post-trade administration
session from 5:30 P.M. to 6:00 P.M.
6. The Exchange also has the capacity to operate periodic auctions.
In a periodic auction, bid and ask quotations would be allowed to
accumulate and then filled, to the extent possible, at a single price
calculated to match the largest possible number of accumulated buy
and sell orders. The Exchange does not currently operate periodic
auctions but may do so in the future for infrequently traded securities
or the securities of smaller capitalization issuers.




Closely Related to Banking Standard

7. Cross trades executed on the Exchange are not registered with the
London Clearing House and are settled directly by the relevant member through CREST. Cross trades are trades where the buyer and seller
are both customers of the same Exchange member.
8. 15 U.S.C. § 78e; see Tradepoint Financial Networks pic,
Exchange Act Release No. 41,199, 1999 SEC LEXIS 612 (March 22,
1999).

9. See National Courier Association v. Board of Governors of the
Federal Reserve System, 516 F.2d 1229, 1237 (D.C. Cir. 1975). The
Board may also consider any other basis that may demonstrate that the
proposed activity has a reasonable or close connection or relationship
to banking or managing or controlling banks. See Board Statement

Regarding Regulation Y, 49 Federal Register 806 (1984); Securities

Industry Association v. Board of Governors of the Federal Reserve
System, 468 U.S. 207, 210-211 n.5 (1984).

Legal Developments

clearance, and settlement of securities transactions.10 Banks
and bank holding companies currently are authorized to
provide securities brokerage services to their customers
and, as part of these services, to execute and clear such
transactions on a securities exchange.11 Bank holding company subsidiaries authorized to act as a dealer in securities
("section 20 subsidiaries") also may provide securities
execution, clearance, and settlement services in connection
with their dealer operations.12 In addition, subsidiaries of
banks and bank holding companies that act as a broker or
dealer frequently become members of securities exchanges
and, in the case of mutually owned exchanges such as the
New York Stock Exchange ("NYSE"), acquire small (less
than 5 percent) ownership interests in the exchange.
Through these relationships, banks and bank holding companies have gained extensive experience with and knowledge of the rules and operations of securities exchanges.
Banks and bank holding companies also provide services
that are functionally and operationally similar to those
provided by the Exchange. Subsidiaries of banks and bank
holding companies acting as a securities broker may execute cross-trades for their customers and thereby match
equal bid and offer orders received from their customers. In
addition, section 20 subsidiaries of bank holding companies may act as a specialist or market-maker on a securities
exchange, such as the NYSE or NASDAQ.13 A specialist
generally maintains a book of current buy and sell orders
received from other brokers and matches equal bid and
offer quotes for execution.14 Market-makers for a security
on the NASDAQ securities exchange also publish bid and
offer prices at which they stand ready to execute transactions in the relevant security, either for their own account
or for the account of customers. In addition, a marketmaker receives customer orders and matches them, to the
extent possible, against an order received from another
customer or against an order for the market-maker's own
account.

Proper Incident to Banking Standard and Other
Considerations

(1996).
14. See 5 L. Loss & J. Seligman, Securities Regulation 2513-14
(3d ed. 1990); New York Stock Exchange Rule 104.

15.See 12U.S.C. § 1843(c)(8).
16 .See 12 C.F.R. 225.26.
17. See Financial Services Act of 1986, sch. 4, par. 5.

63

In order to approve the proposal, the Board also must
determine that the proposed activities are a proper incident
to banking, that is, that performance of the proposed activities "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."15 As part of its evaluation of these factors, the
Board considers the financial condition and managerial
resources of the notificant and its subsidiaries and the effect
the transaction would have on those resources.16
In considering the financial resources of the notificants,
the Board has carefully reviewed the capitalization of JPM
and UBS and has found the capitalization of each to be
consistent with approval. In particular, the Board notes that
JPM and its subsidiary bank, Morgan Guaranty Trust Company, New York, New York, are well capitalized and
would remain so after consummation of the proposal, and
that UBS's 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 U.S. banking organization. The Board also has considered recent financial statements of JPM and UBS, including pro forma financial statements and other available
information, and the condition of the U.S. operations of
UBS.
Furthermore, as noted above, Tradepoint does not take a
principal position in any security and does not assume any
principal risk for the clearance or settlement of securities
transactions executed on the Exchange. In addition, JPM
and UBS would not guarantee any securities transactions
executed on the Exchange. Based on these and other facts
of record, including relevant supervisory information, the
Board has determined that financial and managerial considFor these reasons, and based on all the facts of record,
erations are consistent with approval.
the Board concludes that operating a securities exchange is
The Board also has carefully considered the competitive
an activity that is closely related to banking for purposes of
effects of the proposal. There are numerous existing and
section 4(c)(8) of the BHC Act.
potential competitors for the proposed services. Accordingly, the Board concludes that consummation of the proposal would have a de minimis effect on competition.
In considering the potential for conflicts of interests and
other adverse effects, the Board also has carefully reviewed
10. The operations of the Exchange are more limited than many
the operational and supervisory framework within which
securities exchanges in that the Exchange does not directly or indithe Exchange operates. As noted above, the Exchange is
rectly clear or settle securities transactions executed on the Exchange.
subject to regulation by the FSA under the securities laws
Rather, the Exchange maintains systems to route trades to the London
of the United Kingdom, and its U.S. activities are subject to
Clearing House for clearance and settlement through CREST.
11. See 12 C.F.R. 225.28(b)(7)(i); BankAmerica
Corporation,
regulation by the SEC under the federal securities laws.
69 Federal Reserve Bulletin 105 (1983). See also 12 U.S.C. § 24 U.K. law requires that recognized investment exchanges,
(Seventh); OCC Interp. Letter No. 622 (April 9, 1993).
such as the Exchange, promote and maintain high stan12. See J.P. Morgan & Co., Inc. et al., 75 Federal Reserve Bulletin
dards of integrity and fair dealing.17 In furtherance of this
192 (1989), aff'd sub nom. Securities Industry Ass'n v. Board of
requirement, the FSA has adopted a code of conduct govGovernors, 900 F.2d 360 (D.C. Cir. 1990); First of America Corporation, 80 Federal Reserve Bulletin 1120 (1994).
13. See, e.g., Fleet Financial Group, 84 Federal Reserve Bulletin
227 (1998); Dresdner Bank AG, 82 Federal Reserve Bulletin 850




A66 Federal Reserve Bulletin • January 2000

erning recognized investment exchanges that is designed to
ensure that the decisions of an exchange are not improperly
influenced by conflicts of interest. Staff of the FSA has
advised Board staff that the FSA could take supervisory
action against a recognized investment exchange under
U.K. law if the exchange sought to deny a person access to
the exchange on the basis of an improper conflict of
interest.
The U.K. Financial Services Act of 1986 also requires
that the Exchange have financial resources sufficient to
support its activities, and maintain rules and procedures to
ensure that trading is conducted in an orderly manner and
consistent with the protection of investors.18 Pursuant to
these requirements, Tradepoint has established rules for the
Exchange that govern the admission of members, establish
standard terms for the execution of securities transactions
on the Exchange, and provide sanctions for noncompliance
with the Exchange's rules. The FSA has reviewed the
Exchange's rules and determined that they are consistent
with the requirements of U.K. law and must review any
proposed amendments to such rules.19
Tradepoint's operations in the United States also would
remain subject to the antifraud provisions of the federal
securities laws.20 Although the SEC has granted Tradepoint a limited volume exemption from the registration
requirements of section 5 of the 1934 Act, the SEC's
exemptive order requires that Tradepoint comply with a
number of conditions designed to ensure the maintenance
of fair and orderly markets in the United States and the
protection of U.S. investors. For example, these conditions
permit the SEC to monitor the Exchange for compliance
with the antifraud and other applicable provisions of the
federal securities laws; require the Exchange to adopt and
implement procedures to ensure the nondisclosure of confidential, material information held by the Exchange; and
allow the SEC to obtain access to the books, records
(including copies of membership applications and standards for admission as a member), facilities, and personnel
of the Exchange as necessary or appropriate. Based on
these and other conditions, the SEC concluded that the
limited volume exemption provided the Exchange was
consistent with the public interest and the protection of
investors.21
Notificants have stated that consummation of the proposal would increase competition for the execution of
equity and equity-related securities listed on the London
Stock Exchange and provide added convenience to marketmakers, broker-dealers, and institutional investors that seek
to execute trades in such securities. The SEC also has
stated that the Exchange's services provide U.S. investors

18. See Financial Services Act of 1986, sch. 4, pars. 1 and 2.
19. The FSA has the authority to conduct on-site inspections of the
Exchange if necessary or appropriate.
20. See, e.g., 15 U.S.C. § 78j(b).
21. JPM and UBS also have committed that Tradepoint will be
considered a subsidiary for purposes of the BHC Act, and as an
affiliate of any insured depository institution affiliate of the notificants
for purposes of sections 23A and 23B of the Federal Reserve Act.




with a lower-cost method of investing in foreign securities.
In addition, the Board has noted that there are public
benefits to be derived from permitting capital markets to
operate so that bank holding companies can make potentially profitable investments in nonbanking companies and
from permitting banking organizations to allocate their
resources in the manner they consider to be most efficient
when such investments and actions are consistent, as in this
case, with the relevant considerations under the BHC Act.
Based on all the facts of record, the Board has determined that consummation of the proposal can reasonably
be expected to produce public benefits that outweigh any
potential adverse effects of the proposal, and therefore that
the performance of the proposed activity by JPM and UBS
is a proper incident to banking for purposes of section 4(c)(8) of the BHC Act.22

Conclusion
Based on the foregoing and all the facts of record, including the commitments made by notificants in connection
with the notices, and subject to the terms and conditions set
forth in this order, the Board has determined that the
notices should be, and hereby are, approved. The Board's
determination is subject to all the conditions set forth in the
Board's Regulation Y, including those in sections 225.7
and 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the
Board's authority to require modification or termination of
the activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to ensure compliance with, or to prevent evasion of, the provisions and
purposes of the BHC Act and the Board's regulations and
orders issued thereunder. The Board's decision is specifically conditioned on compliance with all the commitments
made in the notices, including the commitments and conditions discussed in this order. The commitments and conditions relied on 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.
By order of the Board of Governors, effective November 8, 1999.
This action was taken pursuant to the Board's Rules Regarding
Delegation of Authority (12 C.F.R. 265.4(b)(1)) by a committee of
Board members. Voting for this action: Vice Chairman Ferguson and

22. Regulation Y provides that a bank holding company must seek
the Board's approval prior to altering in any material respect a
nonbanking activity previously approved by the Board. See 12 C.F.R.
225.25(c)(3). As noted above, the Exchange does not currently clear
or settle securities transactions executed on the Exchange. Because the
clearance and settlement of securities transactions involves risks that
are materially different from the risks associated with the execution of
securities transactions, notificants must separately seek the Board's
approval if the Exchange in the future proposes to clear or settle
securities transactions to permit the Board to determine whether the
performance of such additional activities by the Exchange would
constitute a proper incident to banking under section 4(c)(8) of the
BHC Act.

Legal Developments

Governors Kelley and Gramlich. Absent and not voting: Chairman
Greenspan and Governor Meyer.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

ORDERS ISSUED UNDER BANK MERGER ACT

SunTrust Bank
Atlanta, Georgia
Order Approving Merger of Banks
SunTrust Bank, Atlanta, Georgia ("SunTrust-Atlanta"), a
state member subsidiary bank of SunTrust Banks, Inc.,
Atlanta, Georgia ("SunTrust"), has applied under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C.
§ 1828(c)) ("Bank Merger Act") to merge with SunTrust's
twenty-six wholly owned subsidiary banks ("Merging
Banks"), 1 and to retain and operate branches at the locations of the main offices and branches of the Merging
Banks.
Notice of the application, 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 (12C.F.R. 262.3(b)). As required by the Bank
Merger Act, reports on the competitive effects of the
merger were requested from the United States Attorney
General and the other federal banking agencies. The time
for filing comments has expired, and the Board has considered the application and all the facts of record in light of
the factors set forth in the Bank Merger Act.
SunTrust is the largest commercial banking organization
in Georgia, controlling deposits of $10.4 billion, representing 23.4 percent of the total deposits in commercial banking organizations in Georgia.2 It also is the 14th largest
commercial banking organization in Alabama, controlling
deposits of $298.1 million, representing less than 1 percent
of the total deposits in commercial banking organizations
in Alabama; the largest commercial banking organization
in Florida, controlling deposits of $20.4 billion, representing 33.1 percent of the total deposits in commercial banking organizations in Florida; the fourth largest commercial
banking organization in Tennessee, controlling deposits of
$5.7 billion, representing 7.4 percent of the total deposits
in commercial banking organizations in Tennessee; and the
largest commercial banking organization in Virginia, controlling deposits of $18.6 billion, representing 34.5 percent
of the total deposits in commercial banking organizations
in Virginia. This proposal represents a reorganization of
SunTrust's existing banking operations and, therefore, the
Board concludes that consummation of the proposal would
not have any significantly adverse effects on competition or
on the concentration of banking resources in any relevant
banking market.

1. The Merging Banks are listed in the appendix.
2. All banking data are as of June 30, 1998.




65

Riegle-Neal Analysis
Section 102 of the Riegle-Neal Interstate Banking and
Branching Efficiency Act of 1994 ("Riegle-Neal Act")
(Pub. L. No. 103-328, 108 Stat. 2338 (1994)) authorizes a
bank to conduct an interstate merger with another bank
unless, prior to June 1, 1997, the home State of one of the
banks involved in the transaction has adopted a law expressly prohibiting merger transactions involving out-ofstate banks.3 The Riegle-Neal Act also authorizes the acquiring bank to retain and operate, as a main office or
branch, any bank offices of the acquired bank.4
All the states involved in the proposal, Alabama, Florida, Georgia, Tennessee, and Virginia, have enacted legislation allowing interstate mergers between banks located in
their states and out-of-state banks pursuant to the provisions of the Riegle-Neal Act on or after June 1, 1997.5
SunTrust-Atlanta has notified the appropriate state banking
agencies regarding its proposal to consolidate its banking
operations and has provided a copy of its Bank Merger Act
application to all the relevant state agencies. In light of the
foregoing, it appears that the proposal complies with the
requirements of the Riegle-Neal Act.6

Financial and Managerial Considerations
In reviewing this proposal under the Bank Merger Act, the
Board also has considered the financial and managerial
resources and future prospects of the institutions involved.
The Board has reviewed these factors in light of the facts
of record, including supervisory reports of examination
assessing the financial and managerial resources of
SunTrust-Atlanta and the Merging Banks. Based on all the
facts of record, and because the proposal represents the
reorganization of banking operations already under common control, the Board concludes that the financial and
managerial resources and future prospects of SunTrustAtlanta and the Merging Banks are consistent with approval of the proposal.

Convenience and Needs Considerations
The Board received a comment from the Coalition of
Black Business Enterprises and Organizations of Albany,

3. 12 U.S.C. § 1831u(a)(l) (1994).
4. 12 U.S.C. § 1831u(d)(l) (1994).
5. See Ala. Code §§ 5-13B-22, 23 (effective May 31, 1997); Fla.
Stat. Ch. 658.2953 (effective May 31, 1997); Ga. Code Ann., Fin. Inst.
§ 7-1-628.3 (effective June 1, 1997); Tenn. Code Ann § 452- 1402
et seq. (effective June 1, 1997); and Va. Code Ann. § 6.1^44.1 et seq.
(effective March 16, 1995).
6. All the conditions for an interstate merger enumerated in RiegleNeal would be met in this case. Each bank involved in the transaction
is adequately capitalized and the resulting bank will continue to be
adequately capitalized and adequately managed on consummation of
this proposal. SunTrust-Atlanta and all affiliated depository institutions would not control more than 10 percent of the total amount of
deposits of insured depository institutions in the United States and this
corporate reorganization would not cause an increase in the percentage of deposits controlled by SunTrust in any state.

A66 Federal Reserve Bulletin • January 2000

Georgia ("Protestant"), maintaining that one of the Merging Banks, SunTrust Bank, South Georgia, N.A., Leesburg,
Georgia ("SunTrust-Leesburg"), does not provide needed
services or make adequate efforts to meet the credit needs
of consumers who live in low- and moderate-income
("LMI") census tracts of Albany, Georgia. Specifically,
Protestant states that African Americans, particularly small
business owners in low-income census tracts, are harmed
by "redlining" and indifference on the part of SunTrustLeesburg.7
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). As
provided in the CRA, the Board has evaluated this factor in
light of examinations by the primary federal supervisors of
the CRA performance of the relevant institutions. An institution's most recent CRA performance evaluation is a
particularly important consideration in the applications process because it represents a detailed, on-site evaluation of
the institution's overall record of performance under the
CRA by its primary federal supervisor.8 54 Federal Register 23,618 and 23,641 (1999).
The results of these examinations indicate that SunTrust's depository institution subsidiaries, including
SunTrust-Leesburg, are helping to meet the convenience
and needs of the communities they serve. Each of SunTrust's depository institutions received a rating of "satisfactory" or higher at its last CRA performance examination, with nine banks receiving an "outstanding" rating.
Examiners found that the CRA-related investments made
by SunTrust-Atlanta and the Merging Banks exhibited a
high level of responsiveness to the credit needs of the
communities, the banks' branch networks were accessible
to most segments of the communities they served, and the
banks provided a significant number and variety of community development services.
SunTrust-Leesburg, which provides products and services to the area identified by Protestant, received a "satisfactory" rating on its most recent CRA performance examination as of July 30,1997, by the Office of the Comptroller
of the Currency ("OCC"). In SunTrust-Leesburg's 1997

7. Protestant further alleges that the CRA performance deficiencies
of SunTrust-Leesburg result from the lack of minority representation
on SunTrust-Leesburg's board of directors and its management and
stalf. The Bank Merger Act does not authorize the Board to adjudicate
disputes that arise in areas of employment discrimination or to monitor the racial composition of the board of directors, management, or
staff of an organization. Under the regulations of the Department of
Labor, SunTrust and SunTrust-Leesburg are required to file reports
with the Equal Employment Opportunity Commission ("EEOC")
covering all employees, and the EEOC has jurisdiction to determine
whether companies are in compliance with equal employment opportunity statutes. See 41 C.F.R. 60-1.7(a), 60-1.40.
8. The Interagency Questions and Answers Regarding Community
Reinvestment provide that an institution's most recent CRA performance evaluation is an important consideration in the applications
process because it represents a detailed on-site evaluation of the
institution's overall record of performance under the CRA by the
appropriate federal financial supervisor.




CRA performance examination, OCC examiners found
that the level of lending by the bank throughout its assessment area was responsive to the community's credit needs
and that no conspicuous gaps existed in the loan penetration of geographies. Examiners determined that SunTrustLeesburg had good loan penetration in low-income geographies throughout its assessment area. OCC examiners also
considered SunTrust-Leesburg's level of lending in the
Albany, Georgia, Metropolitan Statistical Area ("Albany
MSA")9 good and responsive to the credit needs in the
MSA.10
SunTrust-Leesburg had a good record of serving the
credit needs of the small businesses throughout its assessment area. Specifically, examiners found that in the assessment area, 84 percent of SunTrust-Leesburg's small business loans were in amounts of $100,000 or less, and that
89 percent of the bank's small business loans were to
businesses with gross revenues of less than $1,000,000. In
the Albany MSA, 32 percent of SunTrust-Leesburg's small
business loans were in LMI geographies. OCC examiners
concluded that SunTrust-Leesburg's small business lending in the Albany MSA was adequate, noting that
39 percent of that MSA's small businesses were in LMI
geographies.11 Examiners also considered SunTrustLeesburg's performance in small farm lending to be adequate; SunTrust-Leesburg made 21 percent of its small
farm loans in LMI geographies in its assessment area.
Approximately 26 percent of the farms in the assessment
area were in LMI geographies.
SunTrust-Leesburg reports that it helps to meet the credit
needs of its assessment areas through participation in several community development organizations, including
Albany Community Together ("ACT"), Georgia Development Authority ("GDA"), and Community Development
Center ("CDC"). SunTrust-Leesburg has committed to
invest $1 million in ACT, which is organizing a small
business revolving loan fund. GDA originates small farm
loans throughout Georgia, and CDC provides small business loans in the city of Albany. SunTrust-Leesburg has
committed $110,000 to Vision Albany, an initiative to
promote community development in Albany and Dougherty Counties. SunTrust-Leesburg representatives assist
these organizations in providing services in the bank's
assessment areas.

9. SunTrust-Leesburg includes the Albany MSA as one of its four
assessment areas. All seven of the low-income census tracts in
SunTrust-Leesburg's assessment areas are in the city of Albany. In
addition, five of the nineteen moderate-income geographies in
SunTrust-Leesburg's assessment areas are in the city of Albany.
10. SunTrust-Atlanta states that in 1998, SunTrust-Leesburg made
more than 50 percent of the loans to African American borrowers in
the Albany MSA's low-income census tracts that were reported by
local depository institutions under the Home Mortgage Disclosure
Act.
11. SunTrust-Atlanta states that SunTrust-Leesburg's small business loan efforts have resulted in the bank making approximately
30 percent of the total business loans in amounts of less than $100,000
and 50 percent of the business loans between $100,000 and $250,000
in LMI census tracts of Albany from 1996 to 1998.

Legal Developments

In reviewing the convenience and needs of the communities served by SunTrust-Leesburg, the Board also notes
that the bank provides a full range of services, including
commercial, agricultural, real estate, and consumer loans,
trust services and a variety of community development
services. SunTrust has stated that its internal reorganization will not adversely affect the provision of these services
by SunTrust-Leesburg because the reorganization plan involves no branch closings or any other actions that might
limit the bank's ability to serve the credit needs of its local
communities.
The Board has carefully considered all the facts of
record, including Protestant's comments, the response to
those comments, the CRA performance records of SunTrust Bank-Atlanta and the Merging Banks, relevant reports from their primary federal regulators, and other supervisory information. Based on the facts of record, and for
the reasons discussed above, the Board concludes that
convenience and needs considerations, including the relevant banks' records of CRA performance, are consistent
with approval of the proposal.
Conclusion
Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved.12 The Board's approval is specifically
conditioned on compliance by SunTrust-Atlanta with all
the commitments made in connection with the application.
For purposes of this action, the commitments and conditions relied on in reaching this decision are conditions
imposed in writing by the Board and, as such, may be
enforced in proceedings under applicable law.
The proposed acquisition 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 Atlanta, acting pursuant to delegated authority.
By order of the Board of Governors, effective November 18, 1999.

12. Protestant requested that several public meetings or hearings be
held on this matter in Albany, Georgia. The Bank Merger Act does not
require the Board to hold a public hearing on an application. Under its
rules, the Board may, in its discretion, hold a public meeting or
hearing on an application if a meeting or hearing is necessary or
appropriate to clarify factual issues related to the application and to
provide an opportunity for testimony, if appropriate. See 12 C.F.R.
262.3(i). The Board has carefully considered Protestant's request in
light of all the facts of record. Protestant has had ample opportunity to
submit its views and Protestant's request for a public meeting or
hearing fails to demonstrate why written comments would not adequately present Protestant's evidence. Protestant's request also fails to
identify disputed issues of fact that are material to the Board's
decision and that would be clarified by a public meeting or hearing.
For these reasons, and based on all the facts of record, the Board has
determined that a public meeting or hearing is not required or warranted in this case. Accordingly, Protestant's request is denied.




67

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Meyer. Absent and not voting: Governor Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

Appendix
Merging Banks:
Crestar Bank, Richmond, Virginia
SunTrust Bank, Alabama, N.A., Florence, Alabama
SunTrust Bank, Augusta, N.A., Augusta, Georgia
SunTrust Bank, Central Florida, N.A., Orlando, Florida
SunTrust Bank, Chattanooga, N.A., Chattanooga,
Tennessee
SunTrust Bank, East Central Florida, Daytona Beach,
Florida
SunTrust Bank, East Tennessee, N.A., Knoxville,
Tennessee
SunTrust Bank, Gulf Coast, Sarasota, Florida
SunTrust Bank, Miami, N.A., Miami, Florida
SunTrust Bank, Mid-Florida, N.A., Winter Haven, Florida
SunTrust Bank, Middle Georgia, N.A., Macon, Georgia
SunTrust Bank, Nashville, N.A., Nashville, Tennessee
SunTrust Bank, Nature Coast, Brooksville, Florida
SunTrust Bank, North Central Florida, Ocala, Florida
SunTrust Bank, North Florida, N.A., Jacksonville, Florida
SunTrust Bank, Northeast Georgia, N.A., Athens, Georgia
SunTrust Bank, Northwest Florida, Tallahassee, Florida
SunTrust Bank, Northwest Georgia, N.A., Rome, Georgia
SunTrust Bank, Savannah, N.A., Savannah, Georgia
SunTrust Bank, South Central Tennessee, N.A., Pulaski,
Tennessee
SunTrust Bank, South Florida, N.A., Fort Lauderdale,
Florida
SunTrust Bank, South Georgia, N.A., Leesburg, Georgia
SunTrust Bank, Southeast Georgia, N.A., Brunswick,
Georgia
SunTrust Bank, Southwest Florida, Fort Myers, Florida
SunTrust Bank, Tampa Bay, Tampa Bay, Florida
SunTrust Bank, West Georgia, N.A., Columbus, Georgia

ORDERS ISSUED UNDER INTERNATIONAL BANKING
ACT

Bank Austria Aktiengesellschaft
Vienna, Austria
Order Approving Establishment of a Branch and
Representative Offices
Bank Austria Aktiengesellschaft ("Bank"), Vienna, Austria, a foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 7(d) of
the IBA (12 U.S.C. § 3105(d)) to establish a federally
licensed branch in Greenwich, Connecticut. Bank has also

A66 Federal Reserve Bulletin • January 2000

applied under section 10(a) of the IBA (12 U.S.C.
§ 3107(a)) to establish representative offices in Atlanta,
Georgia; and San Francisco, California. The Foreign Bank
Supervision Enhancement Act of 1991, which amended the
IBA, provides that a foreign bank must obtain the approval
of the Board to establish a branch or representative office in
the United States.
Notice of the application, affording interested persons an
opportunity to submit comments, was published on
November 27, 1998, in a newspaper of general circulation
in Greenwich, Connecticut (Greenwich Time)', Atlanta,
Georgia (Atlanta Journal and Constitution)', and San Francisco, California (San Francisco Chronicle). The time for
filing comments has expired, and the Board has considered
the application and all comments received.
Bank, with total consolidated assets of $130 billion, is
the largest bank in Austria.1 AnteilsverwaltungZentralsparkasse ("AV-Z"), an Austrian holding company,
is Bank's largest shareholder.2 Bank engages directly and
indirectly in a number of banking, financial, and other
activities in Europe, Asia, and the United States. In the
United States, Bank operates a federal branch in New
York, New York; a representative office in Chicago, Illinois; and several nonbank subsidiaries. Bank is a qualifying foreign banking organization within the meaning of
Regulation K (12 C.F.R. 211.23(b)).
In September 1998 Bank merged with Creditanstalt
Aktiengesellschaft, Vienna, Austria, which, up until the
merger, operated a branch in Greenwich, Connecticut; and
representative offices in Atlanta, Georgia; and San Francisco, California. Bank has requested authority to retain
and operate these offices through this application. Pursuant
to Regulation K, the Board allowed the merger to proceed
before an application to establish the offices was filed and
acted on by the Board.3
In order to approve an application by a foreign bank to
establish a branch or representative office in the United
States, the IBA and Regulation K require the Board to
determine that the foreign bank applicant engages directly
in the business of banking outside of the United States, and
has furnished to the Board the information it needs to
assess the application adequately. The Board also shall take
into account whether the foreign bank and any foreign
bank parent are subject to comprehensive supervision or
regulation on a consolidated basis by its home country
supervisor (12 U.S.C. §§ 3105(d)(2), 3107(a)(2); 12 C.F.R.
211.24(d)(2), 211.24(c)(1)).4 The Board may also take into

account additional standards as set forth in the IBA and
Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Board previously has determined, in connection with
applications involving other banks in Austria, that those
banks were subject to home country supervision on a
consolidated basis.5 Bank is supervised by the Austrian
Federal Ministry of Finance (the "Ministry") and the Austrian National Bank on substantially the same terms and
conditions as those other banks. Based on all the facts of
record, the Board has determined that Bank is subject to
comprehensive supervision on a consolidated basis by its
home country supervisor.
The Board also has taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d) (3)-(4); 12 C.F.R.
211.24(c)(2)-(3). The ministry has no objection to the
establishment of the proposed branch and representative
offices.
With respect to the financial and managerial resources of
Bank, taking into consideration Bank's record of operations in its home country, its overall financial resources,
and its standing with its home country supervisors, the
Board has also determined that financial and managerial
factors are consistent with approval of the proposed branch
and representative offices. Bank appears to have the experience and capacity to support the proposed branch and
representative offices and has established controls and procedures for the proposed offices to ensure compliance with
US. law.
With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank operates
and has communicated with relevant government authorities regarding access to information. Bank and its parent
have committed to make available to the Board such information on the operations of Bank and any of its affiliates
that the Board deems necessary to determine and enforce
compliance with the IBA, the Bank Holding Company Act
of 1956, as amended, and other applicable federal law. To
the extent that the provision of such information to the
Board may be prohibited by law, Bank and its parent have

1. Unless otherwise indicated, data are as of June 30, 1999.
2. As of October 1, 1999, AV-Z owned 24.5 percent of Bank
Austria. Although AV-Z is organized as a savings bank, Austrian law
provides that AV-Z may only hold and manage assets.
3. See 12 C.F.R. 211.24(a)(3), and Board Letter dated September 21, 1998, to John C. Murphy, Jr., Esq.
4. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors: (i) ensure
that the bank has adequate procedures for monitoring and controlling
its activities worldwide; (ii) obtain information on the condition of the
bank and its subsidiaries and offices through regular examination
reports, audit reports, or otherwise; (iii) obtain information on the

dealings with and relationship between the bank and its affiliates, both
foreign and domestic; (iv) receive from the bank financial reports that
are consolidated on a worldwide basis or comparable information that
permits analysis of the bank's financial condition on a worldwide
consolidated basis; (v) evaluate prudential standards, such as capital
adequacy and risk asset exposure, on a worldwide basis. These are
indicia of comprehensive, consolidated supervision. No single factor
is essential, and other elements may inform the Board's determination.




5. See Creditanstalt-Bankverein, 82 Federal Reserve Bulletin 594
(1996); Erste Bank der Osterreichischen Sparkassen Aktiengesellschaft, 84 Federal Reserve Bulletin 1123 (1998).

Legal Developments

committed to cooperate with the Board to obtain any
necessary consents or waivers that might be required from
third parties for disclosure of such information. In addition,
subject to certain conditions, the Ministry may share information on Bank's operations with other supervisors, including the Board. In light of these commitments and other
facts of record, and subject to the condition described
below, the Board concludes that Bank has provided adequate assurances of access to any necessary information
that the Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank and its parent, as well as the
terms and conditions set forth in this order, the Board has
determined that Bank's application to establish the
federally-licensed branch and representative offices should
be, and hereby is, approved. Should any restrictions on
access to information on the operations or activities of
Bank and its affiliates subsequently interfere with the
Board's ability to obtain information to determine and
enforce compliance by Bank or its affiliates with applicable
federal statutes, the Board may require termination of any
of Bank's direct or indirect activities in the United States,
or in the case of an office licensed by the Office of the
Comptroller of the Currency ("OCC"), recommend termination of such office. Approval of this application is also
specifically conditioned on compliance by Bank and its
parent with the commitments made in connection with this
application and with the conditions in this order.6 The
commitments and conditions referred to above are conditions imposed in writing by the Board in connection with
its decision and may be enforced in proceedings under
12 U.S.C. § 1818 or 12 U.S.C. § 1847 against Bank, its
offices, and its affiliates.
By order of the Board of Governors, effective November 18, 1999.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Meyer. Absent and not voting: Governor Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

6. The Board's authority to approve establishment of the proposed
branch office parallels the continuing authority of the OCC to license
federal offices of a foreign bank; the Board's authority to approve
establishment of the proposed representative offices parallels the continuing authority of the States of Georgia and California to license
offices of a foreign bank. The Board's approval of this application
does not supplant the authority of the OCC, or the States of Georgia
and California, respectively, to license the proposed offices of Bank in
accordance with any terms or conditions that they may impose.




69

UBS AG
Basel, Switzerland
Order Approving Establishment of a Representative
Office
UBS AG ("Bank"), Basel, Switzerland, a foreign bank
within the meaning of the International Banking Act
("IBA"), has applied under section 10(a) of the IBA
(12 U.S.C. § 3107(a)) to establish a representative office in
Washington, D.C. The Foreign Bank Supervision Enhancement Act of 1991, which amended the IBA, provides that a
foreign bank must obtain the approval of the Board to
establish a representative office in the United States.
Notice of the application, affording interested persons an
opportunity to submit comments, has been published in a
newspaper of general circulation in Washington, D.C. (The
Washington Times, August 6, 1999). The time for filing
comments has expired, and the Board has considered the
application and all comments received.
Bank, with assets of approximately $581.7 billion,1 was
created as a result of the 1998 merger of Swiss Bank
Corporation and Union Bank of Switzerland. UBS is the
largest banking organization in Switzerland and the fourth
largest banking organization in the world. Bank's shares
are publicly traded and widely held, with no single shareholder owning more than 5 percent of the shares.
Bank engages in a broad range of commercial and investment banking activities, directly and through a number
of subsidiaries, both foreign and domestic. In the United
States, Bank operates state-licensed branches in Stamford,
Connecticut, New York, New York, and Chicago, Illinois;
federally-licensed branches in San Francisco and
Los Angeles, California; state-licensed agencies in Miami,
Florida, and Houston, Texas; and a representative office in
Houston, Texas.
The proposed representative office would act as a liaison
between Bank and existing and potential private banking
customers in Washington, D.C., and adjacent areas in Virginia and Maryland. The office would market private banking products offered by Bank's New York branch.
In acting on an application to establish a representative
office, the IBA and Regulation K provide that the Board
shall take into account whether the foreign bank engages
directly in the business of banking outside the United
States and has furnished to the Board the information it
needs to assess the application adequately. The Board also
shall take into account whether the foreign bank is subject
to comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C.
§ 3107(a)(2); 12 C.F.R. 211.24(d)(2)).2 In addition, the

1. Data are as of June 30, 1999.
2. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors: (i) ensure
that the bank has adequate procedures for monitoring and controlling
its activities worldwide; (ii) obtain information on the condition of the
bank and its subsidiaries and offices through regular examination
reports, audit reports, or otherwise; (iii) obtain information on the

A66 Federal Reserve Bulletin • January 2000

Board may take into account additional standards set forth
in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4);
12C.F.R. 211.24(c)(2)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Board previously has determined that Bank was subject
to comprehensive home country supervision on a consolidated basis.3 There have been no material changes in the
manner in which Swiss banks are supervised and regulated
by their home country supervisors since that time. Accordingly, based on all the facts of record, the Board has
determined that Bank continues to be subject to comprehensive supervision and regulation on a consolidated basis
by its home country supervisor.
The Board also has taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)). With respect to consent of appropriate home
country authorities, the Swiss Banking Commission has no
objection to establishment of the proposed representative
office.
With respect to the financial and managerial resources of
Bank, taking into consideration Bank's record of operation
in its home country, its overall financial resources, and its
standing with its home country supervisor, the Board also
has determined that financial and managerial factors are
consistent with approval of the proposed representative
office. Bank appears to have the experience and capacity to
support the proposed representative office and has established controls and procedures for the proposed representative office to ensure compliance with U.S. law.
With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank operates
and has communicated with relevant government authorities regarding access to information. Bank has committed
to make available to the Board such information on the
operations of Bank and any of its affiliates that the Board
deems necessary to determine and enforce compliance with

the IBA, the Bank Holding Company Act of 1956, as
amended, and other applicable federal law. To the extent
that the provision of such information may be prohibited
by law, Bank has committed to cooperate with the Board to
obtain any necessary consents or waivers that might be
required from third parties for disclosure of such information. In addition, subject to certain conditions, the Swiss
Banking Commission may share information on Bank's
operations with other supervisors, including the Board. In
light of these commitments and other facts of record, and
subject to the conditions described below, the Board concludes that Bank has provided adequate assurances of
access to any necessary information the Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank and the terms and conditions
set forth in this order, the Board has determined that
Bank's application to establish the representative office
should be, and hereby is, approved. Should any restrictions
on access to information on the operations or activities of
Bank subsequently interfere with the Board's ability to
obtain information to determine and enforce compliance by
Bank or its affiliates with applicable federal statutes, the
Board may require termination of any of Bank's or its
affiliates' direct or indirect activities in the United States,
or in the case of an office licensed by the Office of the
Comptroller of the Currency, recommend termination of
such office. Approval of this application also is specifically
conditioned on compliance by Bank with the commitments
made in connection with the application, and with the
conditions in this order.4 The commitments and conditions
referred to above are conditions imposed in writing by the
Board in connection with its decision, and may be enforced
in proceedings under 12 U.S.C. § 1818 against Bank and its
affiliates.
By order of the Board of Governors, effective November 24, 1999.

dealings with and relationship between the bank and its affiliates, both
foreign and domestic; (iv) receive from the bank financial reports that
are consolidated on a worldwide basis, or comparable information that
permits analysis of the bank's financial condition on a worldwide
consolidated basis; (v) evaluate prudential standards, such as capital
adequacy and risk asset exposure, on a worldwide basis. These are
indicia of comprehensive consolidated supervision. No single factor is
essential and other elements may inform the Board's determination.

4. The Board's authority to approve the establishment of the proposed representative office parallels the continuing authority of the
District of Columbia to license or otherwise to permit the establishment of offices of a foreign bank. The Board's approval of this
application does not supplant the authority of the District of Columbia
and the Office of Banking and Financial Institutions ("Office") to
license or otherwise to permit the establishment of the proposed office
of Bank in accordance with any terms or conditions that the Office
may impose.

3. See UBS AG, Federal Reserve Bulletin 684 (1998).




Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

Legal Developments

71

INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(JULY 1, 1999 - SEPTEMBER 30, 1999)

Applicant

Merged or Acquired Bank or Activity

Date of Approval

Bulletin
Volume
and Page

South Bancorporation,
Birmingham, Alabama

First American Corporation,
Nashville, Tennessee
First American National Bank,
Nashville, Tennessee
First American Federal Savings Bank,
Nashville, Tennessee
First American Community Development
Corporation,
Nashville, Tennessee
To establish a representative office in
New York, New York
U.S. Bank, N.A.,
Minneapolis, Minnesota
To establish a state-licensed branch in
New York, New York
The CIBC World Markets Corporation,
Toronto, Canada
CIBC World Markets Inc.,
Toronto, Canada
CIBC Delaware Holdings Inc.,
New York, New York
CIBC National Bank,
Maitland, Florida
First Indiana Bank,
Indianapolis, Indiana
CIT Group, Inc.,
Livingston, New Jersey
Newcourt Credit Group, Inc.,
Toronto, Canada
Mercantile Bancorporation Inc.,
St. Louis, Missouri
Ameribanc, Inc.,
St. Louis, Missouri
Mercantile Bank National Association,
St. Louis, Missouri
BankBoston Corporation,
Boston, Massachusetts
BankBoston, N.A.,
Boston, Massachusetts
HealthCare Financial Partners, Inc.,
Chevy Chase, Maryland

August 30, 1999

85, 685

May 5, 1999

85, 647

August 18, 1999

85, 693

September 27, 1999

85, 774

September 20, 1999

85, 733

July 14, 1999

85, 645

September 27, 1999

85, 736

September 1, 1999

85, 737

September 7, 1999

85, 747

July 20 1999

85, 643

The Chase Manhattan Bank,
New York, New York

August 16, 1999

85, 694

Security State Bank of Pecos,
Pecos, Texas

July 28, 1999

85, 640

Banco de la Ciudad de Buenos Aires,
Buenos Aires, Argentina
Bank Iowa,
Red Oak, Iowa
Caixa Geral de Depositos S.A.,
Lisbon, Portugal
Canadian Imperial Bank of Commerce,
Toronto, Canada

Civitas Bank,
St. Joseph, Michigan
The Dai-Ichi Kangyo Bank, Limited,
Tokyo, Japan

Firstar Corporation,
Milwaukee, Wisconsin

Fleet Financial Group, Inc.,
Boston, Massachusetts

The Fuji Bank, Limited,
Tokyo, Japan
Heller Financial, Inc.,
Chicago, Illinois
Manufacturers and Traders Trust
Company,
Buffalo, New York
Security Pecos Bancshares, Inc.,
Pecos, Texas
Security Delaware Pecos Bancshares,
Inc.,
Dover, Delaware




A66 Federal Reserve Bulletin • January 2000

Index of Orders Issued or Actions Taken—Continued

Applicant

Merged or Acquired Bank or Activity

Date of Approval

Bulletin
Volume
and Page

Stockman Financial Corporation,
Miles City, Montana

Terry Bancshares, Inc.,
Terry, Montana
State Bank of Terry,
Terry, Montana
Daiwa SB Investments Ltd.,
New York, New York
Harlingen Bancshares, Inc.,
Harlingen, Texas
HN Bancshares of Delaware, Inc.,
Harlingen, Texas
Harlingen National Bank,
Harlingen, Texas
First Union National Bank,
Charlotte, North Carolina

July 2, 1999

85, 641

July 20, 1999

85, 644

August 23, 1999

85, 683

September 7, 1999

85, 773

The Sumitomo Bank, Limited,
Osaka, Japan
Texas Regional Bancshares, Inc.,
McAllen, Texas
Texas State Bank,
McAllen, Texas

United Bank of Philadelphia,
Philadelphia, Pennsylvania

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

Section 3
Applicant(s)

Bank(s)

Effective Date

Compass Bancshares, Inc.,
Birmingham, Alabama

Western Bancshares of Albuquerque, Inc.,
Albuquerque, New Mexico

November 5, 1999

APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT

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

Section 3
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Area Bancshares, Corporation,
Owensboro, Kentucky

Lyon Bancorp, Inc.,
Eddyville, Kentucky
Peoples Bank of Murray,
Kentucky,
Murray, Kentucky
Dees Bank of Hazel,
Hazel, Kentucky
Bank of Livingston County,
Tiline, Kentucky

St. Louis

November 4, 1999




Legal Developments

73

Section 3—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Arvest Bank Group, Inc.,
Bentonville, Arkansas
Bank of America Corporation,
Charlotte, North Carolina
NB Holdings Corporation,
Charlotte, North Carolina
Camden National Corporation,
Camden, Maine

The First National Bank of Huntsville,
Huntsville, Arkansas
Bank of America, N.A.,
Charlotte, North Carolina
Lake-Osceola State Bank,
Baldwin, Michigan
KSB Bancorp, Inc.,
Kingfield, Maine
Kingfield Savings Bank,
Kingfield, Maine
Nevada Community Bancorp Limited,
Las Vegas, Nevada

St. Louis

October 29, 1999

Richmond

November 24, 1999

Boston

November 10, 1999

Chicago

November 10, 1999

Atlanta

October 25, 1999

Minneapolis

November 10, 1999

Dallas

November 10, 1999

Farmers and Merchants Bank and Trust,
Mount Pleasant, Iowa

Chicago

November 1, 1999

North Central Bancorp, Inc.,
Norfolk, Nebraska

Kansas City

November 24, 1999

Bay bank Corporation,
Gladstone, Michigan
Merchants and Planters Bank,
Manila, Arkansas
Dairy State Financial Services, Inc.,
Plymouth, Wisconsin
Dairy State Bank,
Plymouth, Wisconsin
First National Bank and Trust Company
of Minden,
Minden, Nebraska
First State Bank of Pinellas,
St. Petersburg, Florida
Sun Bancorp, Inc.,
Selinsgrove, Pennsylvania
Silver Lake Bank,
Topeka, Kansas

Minneapolis

November 10, 1999

St. Louis

November 18, 1999

Chicago

November 3, 1999

Kansas City

November 10, 1999

Atlanta

November 10, 1999

Cleveland

November 1, 1999

Kansas City

November 9, 1999

Capitol Bancorp Ltd.,
Lansing, Michigan
Sun Community Bancorp Limited,
Phoenix, Arizona
Charter Banking Corp.,
Tampa, Florida
Community First Bankshares, Inc.,
Fargo, North Dakota
Community First National Bank,
Fergus Falls, Minnesota

The Employee Stock and Ownership
Trust of First Grayson
Bancshares, Inc.,
Celeste, Texas
Farmers and Merchants Bancshares,
Inc.,
Burlington, Iowa
Farmers & Merchants Investment,
Inc.,
Milford, Nebraska
First Bancshares Corporation,
Gladstone, Michigan
First Delta Bankshares, Inc.,
Blytheville, Arkansas
First Manitowoc Bancorp, Inc.
Manitowoc, Wisconsin

First Minden Bancshares, Inc.,
Minden, Nebraska
First State Financial Corporation,
Sarasota, Florida
F.N.B. Corporation,
Hermitage, Pennsylvania
Gideon Enterprises, L.P.,
Topeka, Kansas




Columbia Bank,
Tampa, Florida
River Acquisition Corp.,
Minneapolis, Minnesota
River Bancorp., Inc.,
Ramsey, Minnesota
Northland Security Bank,
Ramsey, Minnesota
First Grayson Bancshares, Inc.
Waco, Texas

A66 Federal Reserve Bulletin • January 2000

Section 3—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Gold Banc Corporation,
Leawood, Kansas
Gold Banc Acquisition Corporation
VIII, Inc.,
Leawood, Kansas
Great River Banshares Corporation,
Burlington, Iowa
Greenville First Banc shares, Inc.,
Greenville, South Carolina
Heritage Commerce Corp.,
San Jose, California
Interbancorp,
Duvall, Washington
Interim First Capital Corporation,
Norcross, Georgia

Union Bankshares, Ltd.,
Denver, Colorado
Union Bank and Trust,
Denver, Colorado

Kansas City

November 4, 1999

Henry County Bank,
Mount Pleasant, Iowa
Greenville First Bank, N.A.,
Greenville, South Carolina
Heritage Bank South Bay,
Morgan Hill, California
Inter Bank,
Duvall, Washington
First Capital Bancorp, Inc.,
Norcross, Georgia
First Capital Bank,
Norcross, Georgia
Nevada First Bank,
Las Vegas, Nevada
Pan American Bank,
Chicago, Illinois
The Bank of Northern Michigan,
Petoskey, Michigan

Chicago

November 15, 1999

Richmond

November 2, 1999

San Francisco

November 12, 1999

San Francisco

October 28, 1999

Atlanta

October 25, 1999

San Francisco

October 21, 1999

Chicago

November 2, 1999

Chicago

November 15, 1999

Pyramid Bancorp.,
Grafton, Wisconsin
Grafton State Bank,
Grafton, Wisconsin

Chicago

November 23, 1999

The Bank of Advance,
Advance, Missouri
The First National Bank of Lerna,
Lerna, Illinois
Bowen State Bank,
Bowen, Illinois
Lake Ariel Bancorp, Inc,
Lake Ariel, Pennsylvania
LA Bank, N.A.,
Lake Ariel, Pennsylvania
Marble Falls National Bancshares, Inc.,
Marble Falls, Texas
North Star Holding Company, Inc.,
Jamestown, North Dakota
NorthStar Bank,
Esterville, Iowa
Pacific Crest Bank,
Agoura Hills, California
Dayton State Bank,
Dayton, Texas
Regal Bank & Trust,
Owings Mills, Maryland
Regal Savings Bank, FSB,
Owings Mills, Maryland

St. Louis

October 22, 1999

New York

November 19, 1999

Dallas

November 18, 1999

Minneapolis

November 4, 1999

Chicago

November 10, 1999

San Francisco

November 17, 1999

Intermountain First Bancorp,
Las Vegas, Nevada
JD Financial Group, Inc.,
Evanston, Illinois
Lake Michigan Financial
Corporation,
Holland, Michigan
Merchants & Manufacturers
Bancorp,
New Berlin, Wisconsin
Merchants Merger Corp.,
New Berlin, Wisconsin
Miles Independent Bancorporation,
Inc.,
Advance, Missouri
Miles Bancshares, Inc.,
Advance, Missouri
NBT Bancorp Inc.,
Norwich, New York

North American Bancshares, Inc.,
Sherman, Texas
Northern Plains Investment, Inc.,
Jamestown, North Dakota
NorthStar Bancshares, Inc.,
Estherville, Iowa
Pacific Crest Capital, Inc.,
Agoura Hills, California
Paradigm Bancorporation, Inc.,
Houston, Texas
Regal Bancorp, Inc.,
Owings Mills, Maryland




November 10, 1999
Richmond

November 8, 1999

Legal Developments

75

Section 3—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Regions Financial Corporation,
Birmingham, Alabama

LCB Corporation,
Fayetteville, Tennessee
Lincoln County Bank,
Fayetteville, Tennessee
Minden Bancshares, Inc.,
Minden, Louisiana
Minden Bank & Trust Company,
Minden, Louisiana
Slocomb National Bank,
Slocomb, Alabama
Cokato Bancshares, Inc.,
Cokato, Minnesota
State Bank of Cokato,
Cokato, Minnesota

Atlanta

November 3, 1999

Atlanta

November 3, 1999

Atlanta

October 25, 1999

Minneapolis

November 15, 1999

St. Louis

November 10, 1999

Kansas City

November 17, 1999

Dallas

November 18, 1999

New York

November 10, 1999

Richmond

October 28, 1999

San Francisco

November 10, 1999

Boston

November 17, 1999

St. Louis

November 22, 1999

Regions Financial Corporation,
Birmingham, Alabama

SNB Holdings, Inc.,
Slocomb, Alabama
State Bank of Cokato Employee
Stock Ownership Plan and Trust,
Cokato, Minnesota
State Bank of Cokato Employee
Stock Ownership Plan and
Trust II,
Cokato, Minnesota
St. Elizabeth Bancshares, Inc.,
St. Elizabeth, Missouri
Team Financial Acquisition
Subsidiary, Inc.,
Paola, Kansas
Team Financial, Inc.,
Paola, Kansas

Texas Independent Bancshares, Inc.,
Texas City, Texas
Tompkins Trustco, Inc.,
Ithaca, New York

Uwharrie Capital Corp,
Albemarle, North Carolina
VIB Corp,
El Centra, California

Westborough Bancorp, M.H.C.,
Westborough, Massachusetts
Westborough Financial Services,
Inc.,
Westborough, Massachusetts
Wilson & Muir Bancorp, Inc.,
Bardstown, Kentucky




Bank of St. Elizabeth,
St. Elizabeth, Missouri
Team Financial Employees Stock
Ownership Plan,
Paola, Kansas
ComBankshares, Inc.,
Prairie Village, Kansas
Community Bank of Chapman,
Chapman, Kansas
American Independent Bancshares, Inc.,
Santa Fe, Texas
Letchworth Independent Bancshares
Corporation,
Castile, New York
The Bank of Castile,
Castile, New York
The Mahopac National Bank,
Mahopac, New York
Anson Bancorp, Inc.,
Wadesboro, North Carolina
Kings River Bancorp,
Reedley, California
Kings River State Bank,
Reedley, California
Westborough Savings Bank,
Westborough, Massachusetts

Farmers Bank of Vice Grove,
Vine Grove, Kentucky

A66 Federal Reserve Bulletin • January 2000

Section 4
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

ANB Bankcorp, Inc.,
Bristow, Oklahoma
Banco Santander Central Hispano,
S.A.,
Madrid, Spain
Bay Banks of Virginia, Inc.,
Kilmarnock, Virginia
BostonFed Bancorp, Inc.,
Burlington, Massachusetts

To engage in data processing activities

Kansas City

October 27, 1999

To engage de novo in certain leasing
activities

New York

October 28, 1999

Bay Trust Company,
Kilmarnock, Virginia
Diversified Ventures, Inc., d/b/a
Forward Financial Company,
Northborough, Massachusetts
Cera Holding, C.V.,
Leuven, Belgium
Cera Ancora NV,
Leuven, Belgium
Almanij, N.V.,
Antwerp, Belgium,
KBC Bank & Insurance Holding
Company, N.V.,
Brussels, Belgium
KBC Bank, N.V.,
Brussels, Belgium
D.E. Shaw & Co., L.P.,
New York, New York
Chester Valley Bancorp,
Cherry Hill, New Jersey
Heller Financial Inc.,
Chicago, Illinois
CIT Group, Inc.,
New York, New York
Texas Bank, S.S.B.,
Buffalo, Texas

Richmond

November 8, 1999

Boston

November 5, 1999

New York

October 29, 1999

Philadelphia

October 28, 1999

San Francisco

November 5, 1999

Dallas

October 25, 1999

First National Insurance Agency, Inc.,
Woodbine, Georgia
Gloucester Investment Corporation,
Gloucester, Massachusetts
City Insurance and Financial Services,
Inc.,
Hartford, Alabama
Hometown Mortgage Services, Inc.,
Fond du Lac, Wisconsin
Capitol Partners, L.C.,
Des Moines, Iowa
To engage de novo in extending credit
and servicing loans
Fidelity National Loans, Inc.,
Holly Springs, Mississippi
Maplewood Apartments, L.L.C.,
McCook, Nebraska
Baxley Federal Savings Bank,
Baxley, Georgia
First Data Investor Services Group, Inc.,
Westborough, Massachusetts

Atlanta

October 21, 1999

Boston

November 12, 1999

Atlanta

November 3, 1999

Chicago

November 17, 1999

Chicago

November 15, 1999

Chicago

November 3, 1999

St. Louis

November 10, 1999

Kansas City

November 10, 1999

Atlanta

November 5, 1999

Cleveland

November 8, 1999

Cera Stichting VZW,
Leuven, Belgium
Cera Beheersmaatschappij NV,
Leuven, Belgium

Commerce Bancorp, Inc.,
Cherry Hill, New Jersey
Dai-Ichi Kangyo Bank, Limited,
Tokyo, Japan

Eagle Bancshares, Inc.,
Fairfield, Texas
Fairfield Holdings,
Fairfield, Texas
First National Banc, Inc.,
St. Marys, Georgia
GBT Bancorp,
Gloucester, Massachusetts
Hartford Financial Corporation,
Hartford, Alabama
Hometown Bancorp, Ltd.,
Fond du Lac, Wisconsin
Iowa State Bank Holding Company,
Des Moines, Iowa
Larch Bancorporation, Inc.,
Larchwood, Iowa
M & F Bancorp, Inc.,
Holly Springs, Mississippi
McCook National Company,
McCook, Nebraska
PAB Bankshares, Inc.,
Valdosta, Georgia
PNC Bank Corp.,
Pittsburgh, Pennsylvania




Legal Developments

77

Section 4—Continued
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Provident Financial Group, Inc.
Cincinnati, Ohio

Fidelity Financial of Ohio, Inc.,
Cincinnati, Ohio
Centennial Bank,
Cincinnati, Ohio
OHSL Financial Corporation,
Cincinnati, Ohio

Cleveland

November 17, 1999

Cleveland

October 25, 1999

Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Graff Family, Inc.,
McCook, Nebraska

McCook National Company,
McCook, Nebraska
The McCook National Bank,
McCook, Nebraska
Maplewood Apartments, L.L.C.,
McCook, Nebraska
Bank of Norfolk,
Norfolk, Nebraska
Columbus Financial Corporation,
Columbus, Nebraska
Columbus Federal Savings Bank,
Columbus, Nebraska
RBSG International Holdings Limited,
Edinburgh, Scotland
Citizens Financial Group, Inc.,
Providence, Rhode Island
UST Corp.,
Boston, Massachusetts
First Deposit Bancshares, Inc.,
Tompkinsville, Kentucky
Deposit Bank of Monroe County,
Tompkinsville, Kentucky
South Central Savings Bank, FSB,
Edmonton, Kentucky

Kansas City

November 10, 1999

Kansas City

October 27, 1999

Boston

November 19, 1999

St. Louis

October 22, 1999

Provident Financial Group, Inc.
Cincinnati, Ohio

Sections 3 and 4

North Central Bancorp, Inc.,
Norfolk, Nebraska

The Royal Bank of Scotland Group
pic,
Edinburgh, Scotland
The Royal Bank of Scotland pic,
Edinburgh, Scotland
South Central Bancshares of
Kentucky, Inc.,
Horse Cave, Kentucky

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)

Bank(s)

Effective Date

AmSouth Bank,
Birmingham, Alabama
Compass Bank,
Birmingham, Alabama

First American National Bank,
Nashville, Tennessee
Western Bank,
Albuquerque, New Mexico

November 2, 1999




November 5, 1999

A66 Federal Reserve Bulletin • January 2000

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

Bank(s)

Reserve Bank

Effective Date

The Bank of Orange County,
Fountain Valley, California
CalWest Bank,
Downey, California
Peapack-Gladstone Bank,
Gladstone, New Jersey
SunTrust Bank, Atlanta,
Atlanta, Georgia
UnionB ank/West,
Macomb, Illinois
Valencia Bank & Trust,
Santa Clarita, California

Security First Bank,
Fullerton, California
National Business Bank,
Torrance, California
Chatham Savings, FSB,
Gladstone, New Jersey
STI Capital Management, N.A.,
Orlando, Florida
Associated Bank Illinois, NA,
Rockford, Illinois
First Valley National Bank,
Lancaster, California
Valley National Bank, Lancaster,
California

San Francisco

October 27, 1999

San Francisco

October 27, 1999

New York

November 12, 1999

Atlanta

November 24, 1999

Chicago

November 5, 1999

San Francisco

November 16, 1999

San Francisco

November 16, 1999

PENDING CASES INVOLVING THE BOARD OF GOVERNORS

This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
Wasserman v. Federal Reserve Bank, No. 99-6280 (2d Cir.,
filed August 26, 1999). Appeal of district court dismissal of
case challenging refusal by the Board and the Federal
Reserve Bank of New York to investigate certain matters.
Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed
August 3, 1999). Employment discrimination action.
Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D.
Cal., filed July 21, 1999). Action relating to impounded
bank drafts.
Sedgwick v. Board of Governors, No. Civ 99 0702 (D. Arizona, filed April 14, 1999). Action under Federal Tort
Claims Act alleging violation of bank supervision requirements. The Board filed a motion to dismiss on June 15,
1999.
Hunter v. Board of Governors, No. 1:98CV02994 (TFH)
(D.D.C., filed December 9, 1998). Action under the Freedom of Information Act and the Privacy Act. The Board
filed a motion to dismiss or for summary judgment on
July 22,1999.
Folstad v. Board of Governors, No. 1:99 CV 124 (W.D. Mich.,
filed February 17, 1999). Freedom of Information Act complaint. On November 16, 1999, the district court granted the
Board's motion for summary judgment and dismissed the
action.
Nelson v. Greenspan, No. 1:99CV00215 (EGS) (D.D.C., filed
January 28, 1999). Employment discrimination complaint.
On March 29, 1999, the Board filed a motion to dismiss the
action.




Fraternal Order of Police v. Board of Governors, No.
1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998).
Declaratory judgment action challenging Board labor practices. On February 26, 1999, the Board filed a motion to
dismiss the action.
Independent Community Bankers of America v. Board of Governors, No. 98- 1482 (D.C. Cir., filed October 21, 1998).
Petition for review of a Board order dated September 23,
1998, conditionally approving the applications of Travelers
Group, Inc., New York, New York, to become a bank
holding company by acquiring Citicorp, New York, New
York, and its bank and nonbank subsidiaries. On November 2, 1999, the court affirmed the Board's order.
Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK)
(S.D.N.Y„ filed May 15, 1998). Action to freeze assets of
individual pending administrative adjudication of civil
money penalty assessment by the Board. On May 26, 1998,
the court issued a preliminary injunction restraining the
transfer or disposition of the individual's assets and appointing the Federal Reserve Bank of New York as receiver for
those assets.
Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed
May 4, 1998). Appeal and cross-appeal of district court
order granting in part and denying in part the Board's
motion for summary judgment seeking prejudgment interest
and a statutory surcharge in connection with a civil money
penalty assessed by the Board. On February 24, 1999, the
court granted the Board's appeal and denied the crossappeal, and remanded the matter to the district court for
determination of prejudgment interest due to the Board.
Fenili v. Davidson, No. C-98-01568-CW (N.D. California,
filed April 17, 1998). Tort and constitutional claim arising

Legal Developments

out of return of a check. On June 5, 1998, the Board filed its
motion to dismiss.
Goldman v. Department of the Treasury, No. 98-9451 (11th
Circuit, filed November 10, 1998). Appeal from a District
Court order dismissing an action challenging Federal Reserve notes as lawful money.
Kerr v. Department of the Treasury, No. CV-S-97-01877DWH (D. Nev., filed December 22, 1997). Challenge to
income taxation and Federal Reserve notes. On September 3, 1998, a motion to dismiss was filed on behalf of all
federal defendants. The court dismissed the action on
March 31, 1999, and on April 28, 1999, the plaintiff filed a
notice of appeal.
Bettersworth v. Board of Governors, No. 97-CA-624 (W.D.
Tex., filed August 21, 1997). Privacy Act case. On June 1,
1999, the Board filed a motion for summary judgment.

79

TERMINATION OF ENFORCEMENT ACTIONS
The Federal Reserve Board announced on November 16,
1999, the termination of the following enforcement actions:

Mercantile Capital Corp.
Boston, Massachusetts
Written agreement dated January 26, 1996; terminated
August 23, 1999.

Adairsville Bancshares, Inc., and Bank of
Adairsville
Adairsville, Georgia
Written agreement dated December 10, 1998; terminated
September 8, 1999.

FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS

Robert and Adele Barber
Cooper City, Florida
The Federal Reserve Board announced on November 16,
1999, the issuance of a consent Order against Robert and
Adele Barber, both institution- affiliated parties of the First
Western Bank, Cooper City, Florida, a state member bank.

Matthew J. Callahan
Cooper City, Florida
The Federal Reserve Board announced on November 16,
1999, the issuance of a consent Order against Matthew J.
Callahan, an institution- affiliated party of the First Western Bank, Cooper City, Florida, a state member bank.

Bertram Smith
Cooper City, Florida
The Federal Reserve Board announced on November 16,
1999, the issuance of a consent Order against Bertram
Smith, an institution-affiliated party of the First Western
Bank, Cooper City, Florida, a state member bank.




Pan American Bank
Coconut Grove, Florida
Cease and Desist Order dated march 4, 1998; terminated
September 29, 1999.

California Center Bank
Los Angeles, California
Cease and Desist Order dated October 4, 1994; terminated
October 15, 1999.

WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS

Heritage Bancorp Company, Inc.
Cleveland, Oklahoma
The Federal Reserve Board announced on November 16,
1999, the execution of a Written Agreement by and among
Heritage Bancorp Company, Inc., Cleveland, Oklahoma;
the First Bank of Cleveland, Cleveland, Oklahoma; the
Federal Reserve Bank of Kansas City; and the Oklahoma
State Banking Department.

A1

Financial and Business Statistics
A3

DOMESTIC FINANCIAL STATISTICS

Money Stock and Bank Credit
A4
A5
A6

Reserves, money stock, and debt measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions

Policy Instruments
A7
A8
A9

Federal Finance—Continued

GUIDE TO TABULAR PRESENTATION

Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions

Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding

A27 Gross public debt of U.S. Treasury—
Types and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding

Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and liabilities
A33 Domestic finance companies—Owned and managed
receivables

Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock and debt measures

Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20

All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions

A34 Mortgage markets—New homes
A3 5 Mortgage debt outstanding

Consumer Credit
A36 Total outstanding
A3 6 Terms

Flow of Funds
A37
A39
A40
A41

Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities

Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics

Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
All Federal debt subject to statutory limitation




DOMESTIC NONFINANCIAL STATISTICS

Selected Measures
A42
A42
A43
A44
A46
A47
A48
A49

Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving

A66 Federal Reserve Bulletin • January 2000

INTERNATIONAL STATISTICS
Summary

Securities Holdings

Statistics

A50
A51
A51
A51

U.S. international transactions
U.S. foreign trade
US. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions
Reported

by Banks in the United

States

A52
A53
A55
A56

Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—Combined
domestic offices and foreign branches
Reported by Nonbanking
Enterprises in the United

Business
States

A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners




and

Transactions

A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange

Rates

A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Pro forma balance sheet and income
statements for priced services operations,
September 30, 1999
A66 INDEX TO SPECIAL TABLES

A3

Guide to Tabular Presentation
SYMBOLS AND
c
e
n.a.
P
r

ABBREVIATIONS

ATS
BIF
CD
CMO
CRA
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
G-10

Corrected
Estimated
Not available
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
Group of Ten

GENERAL

GNMA
GDP
HUD

INFORMATION

*

0

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




IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PMI
PO
REIT
REMIC
RHS
RP
RTC
SCO
SDR
SIC
VA

Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Rural Housing Service
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs

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 2000

1.10

RESERVES, MONEY STOCK, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1998

1999

1999

Monetary or credit aggregate
June

July "

Aug. r

-15.4
-15.0
-17.1
8.5

-40.4
-41.7
-41.0
6.2

-24.9
-20.3
-29.6
8.0

3.5
5.1'
5.8r
6.8

-2.3
5.2
5.7
5.7

-4.0
4.3 r
6.4 r
5.4

8.7
8.6

6.4
5.9

7.6
7.1

Q4

Q2

Q3

-1.8
-2.5
-.6
8.7

-1.2
1.0
-1.3
9.1

-6.6
-5.6
-6.7
10.1

5.0
11.0
12.9
6.3

2.8
7.2
7.6
6.6 r

13.0
18.4

1

Sept.r

Oct.

2.5
1.1
1.6
7.1

1.3
-.6
1.5
11.3

-33.3
-33.0
-31.9
16.5

— 1.7
5.5
5.1
5.3

3.2
5.7
5.2
6.2

-9.8
4.9
6.7
6.5

5.5
5.0
10.3
n.a.

7.1 r
11.9

7.9
4.1

6.4
4.0

9.5
11.5

4.8
24.9

institutions2

1
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base 3

5
6
7
8

Concepts of money and debt4
Ml
M2
M3
Debt

Nontransaction
9 In M2 5
10 In M3 only 6

Q1

r

components

Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time 7
Large time 8 ' 9
Thrift institutions
14
Savings, including MMDAs
15
Small time 7
16
Large time 8

17.6
.3
3.8

11.6
-5.5
-.3

9.7
-3.3
-3.2

11.7
1.3
7.2

12.1
-2.0
-7.4

14.0
1.2
21.3

8.0
3.3
-5.1

14.4
7.4
28.6

4.2
6.6
62.4

10.1
-6.7
10.4

12.8
-6.5
7.6

14.6
-7.9
-7.0

15.0
-5.1
4.1

18.5
-14.4
-1.4

19.0
-4.6
10.9

4.2
1.2
5.4

4.5
3.5
10.8

-3.9
4.6
-8.0

Money market mutual funds
17 Retail
18 Institution-only

28.5
41.8

20.5
17.9

10.7r
14.5

6.9
7.5

8.7r
7.7

1.9
-4.6

9.9
22.9

8.7
6.3

9.6
25.1

Repurchase agreements and Eurodollars
19 Repurchase agreements 10
20 Eurodollars 10

18.9
3.2

14.1
-.8

-2.7
32.0

15.3
-7.2

53.2
22.5

-.4
-17.8

6.2
-32.6

-1.9
-.7

-12.0
-14.9

-2.8
9.2

-3.1
9.5r

-2.3
9.5

-.3
7.4

.3
6.9 r

1.4
6.4

1.0
7.6

-4.2
9.5

n.a.
n.a.

11
12
13

Debt components4
21 Federal
22 Nonfederal

1. Unless otherwise noted, rates of change are calculated from average amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
M l : (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 M l is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: M l plus (1) savings (including MMDAs), (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted M l .
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all




depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.

Money Stock and Bank Credit
1.11

A5

RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT 1
Millions of dollars
Average of
daily figures
1999
Aug.

Average of daily figures for week ending on date indicated

1999
Oct.

Sept.

Sept. 15

Sept. 22

Sept. 29

Oct. 6

Oct. 13

Oct. 20

Oct. 27

SUPPLYING R E S E R V E F U N D S

1 Reserve Bank credit outstanding
U.S. government securities 2
2
Bought outright—System account 3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Repurchase agreements—triparty 4
7
Acceptances
Loans to depository institutions
8
Adjustment credit
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding

528,020

536,558

542,985

534,616

538,420

537,386

539,721

541,218

544,464

543,573

487,746
1,296

490,477
2,373

490,849
428

490,649
1,268

491,006
1,938

489,966
2,871

490,373
2,981

491,044
0

490,907
0

490,711
0

247
4,751
n.a.
0

238
9,515
n.a.
0

206
1,916
14,248
0

238
8,224
n.a.
0

238
11,155
n.a.
0

238
9,728
n.a.
0

229
10,548
573
0

219
0
14,659
0

198
0
18,123
0

194
0
17,061
0

84
273
0
0
430
33,193

57
283
0
0
288
33,328

35
224
3
0
482
34,594

23
268
0
0
948
32,998

72
283
0
0
153
33,575

101
304
0
0
199
33,979

82
283
1
0
527
34,124

26
263
0
0
781
34,225

15
224
1
0
553
34,444

40
191
7
0
324
35,047

11,047
8,200
27,231

11,046
7,667
27,381

11,050
7,200
27,483

11,046
8,057
27,367

11,046
7,200
27,397

11,048
7,200
27,427

11,050
7,200
27,457

11,051
7,200
27,471

11,050
7,200
27,485

11,050
7,200
27,499

536,083
n.a.
69

542,365
n.a.
89

550,878
0
94

542,626
n.a.
87

542,578
n.a.
86

542,567
n.a.
93

545,124
0
93

549,897
0
97

551,630
0
94

553,185
0
92

5,076
196
7,020
274
18,110
7,669

6,389
226
7,100
248
18,524
7,712

5,179
182
7,165
278
18,362
6,580

5,480
229
7,119
269
18,245
7,031

7,512
265
6,924
248
18,601
7,849

7,403
218
7,323
223
18,606
6,627

5,457
167
7,392
271
18,801
8,123

5,235
202
7,080
319
18,195
5,916

5.421
187
7,097
291
18,332
7,146

5,206
180
7,062
260
18,242
5,095

Oct. 13

Oct. 20

Oct. 27

ABSORBING R E S E R V E FUNDS

17 Currency in circulation
18 Reverse repurchase agreements—triparty 4 . . .
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments . .
23
Other
24 Other Federal Reserve liabilities and capital .
25 Reserve balances with Federal Reserve Banks'

Wednesday figures

End-of-month figures
Aug.

Sept.

Oct.

Sept. 15

Sept. 22

Sept. 29

Oct. 6

SUPPLYING R E S E R V E F U N D S

1 Reserve Bank credit outstanding
U.S. government securities 2
2
Bought outright—System account"
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Repurchase agreements—triparty 4
7
Acceptances
Loans to depository institutions
8
Adjustment credit
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
12
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding

534,796

546,150

548,919

540,481

544,833

543,003

540,266

544,224

550,310

548,132

490,198
2,575

489,037
7,607

490,738
0

491,129
1,335

491,054
4,893

491,019
5,220

491,266
2,160

491,282
0

491,367
0

492,051
0

238
9,195
n.a.
0

238
14,456
n.a.
0

188
0
22,560
0

238
13,040
n.a.
0

238
14,877
n.a.
0

238
11,183
n.a.
0

228
7,110
4,011
0

198
0
15,520
0

198
0
23,550
0

188
0
20,065
0

53
285
0
0
-291
32,544

179
300
0
0
65
34.268

41
123
10
0
-297
35,556

28
278
0
0
1,241
33,192

132
287
0
0
-504
33,857

105
313
0
0
583
34,342

142
272
5
0
869
34,203

16
245
0
0
2,543
34,420

14
209
6
0
353
34,614

27
174
10
0
277
35,340

11,045
8,200
27,298

11,047
7,200
27,457

11,049
7,200
27,513

11,046
7,200
27,367

11,048
7,200
27,397

11,048
7,200
27,427

11,050
7,200
27,457

11,051
7,200
27,471

11,050
7,200
27,485

11,050
7,200
27,499

538,466
n.a.
84

544,101
n.a.
93

555,597
0
94

543,515
n.a.
85

543,220
n.a.
93

544,246
n.a.
93

547,759
0
97

551,615
0
95

553,003
0
92

555,537
0
94

5,559
166
6,919
225
18,728
11,194

6,641
243
7,392
191
19,105
14,088

4,527
189
7,276
202
18,401
8,395

10,128
242
7,119
256
18,108
6,641

7,721
161
6,924
244
18,552
13,563

8,232
191
7,324
191
18,485
9,916

5,259
178
7,392
274
18,380
6,634

4,948
284
7,080
270
17,775
7,879

4,925
167
7,097 r
311
17,991
12,459r

4,363
172
7,062
223
17,951
8,479

ABSORBING R E S E R V E F U N D S

17 Currency in circulation
18 Reverse repurchase agreements—triparty 4 . . .
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
20
Treasury
21
Foreign
22
Service-related balances and adjustments . .
23
Other
24 Other Federal Reserve liabilities and capital v
25 Reserve balances with Federal Reserve Banks5

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




4. Cash value of agreements arranged through third-party custodial banks. These agreements are collateralized by U.S. government and federal agency securities.
5. Excludes required clearing balances and adjustments to compensate for float.

A6

DomesticNonfinancialStatistics • January 2000

1.12

RESERVES AND BORROWINGS

Depository Institutions1

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility 8
Extended credit9

1997

1998

Dec.
1
2
3
4
5
6
7
8
9
10
11
12

1996

Dec.

Dec.

Apr.

May

June

July

Aug.

Sept.

Oct.

13,330
44,525
37,844
6,681
51,174
49,758
1,416
155
87
68
n.a.
0

10,664
44,740
37,255
7,485
47,920
46,235
1,685
324
245
79
n.a.
0

9,021
44,305
35,997
8,308
45,018
43,435
1,583
117
101
15
n.a.
0

9,238
42,164
34,407
7,757
43,645
42,486
1,159
166
128
39
n.a.
0

10,070
42,459
34,805
7,654
44,875
43,619
1,256
127
39
89
n.a.
0

8,539
42,632
33,856
8,776
42,394
41,133
1,261
145
18
127
n.a.
0

7,797
44,059
34,005
10,054
41,802
40,726
1,076
309
83
226
n.a.
0

7,802
44,664
34,069
10,595
41,871
40,742
1,129
344
72
271
n.a.
0

7,698
44,519
34,089
10,430
41,787
40,590
1,197
338
56
282
n.a.
0

6,769 r
47,019
33,933
13,086
40,702 r
39,548 r
1,154r
281
52
221
8
0

1999

Biweekly averages of daily figures for two week periods ending on dates indicated
1999
June 30
1
2
3
4
5
6
7
8
9
10
11
12

Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility 8
Extended credit9

July 14

July 28

Aug. 11

Aug. 25

Sept. 8

Sept. 22

Oct. 6

Oct. 20

Nov. 3

8,309
43,426
34,062
9,365
42,371
41,027
1,343
180
23
158
n.a.
0

7,526
44,019
33,788
10,231
41,314
40,303
1,011
331
136
196
n.a.
0

8,041
43,899
34,198
9,702
42,238
41,098
1,140
266
17
249
n.a.
0

7,923
44,994
34,123
10,871
42,046
40,967
1,078
409
146
263
n.a.
0

7,421
44,786
34,003
10,783
41,423
40,289
1,134
304
31
273
n.a.
0

8,470
43,774
34,126
9,648
42,596
41,388
1,207
318
35
284
n.a.
0

7,440
44,556
34,327
10,229
41,766
40,744
1,022
323
48
276
n.a.
0

7,380
45,199
33,636
11,563
41,016
39,524
1,491
385
91
294
1
0

6,544
47,350
33,998
13,352
40,542
39,408
1,133
265
21
244
1
0

6,722 r
47,593
34,013
13,580
40,735 r
39,740 r
995 r
246
72
153
22
0

1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates refer
to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.




5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Borrowing at the discount window under the terms and conditions established for the
Century Date Change Special Liquidity Facility in effect from October 1, 1999 through
April 7, 2000.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.

Policy Instruments
1.14

A7

FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit

Federal Reserve
Bank

On
12/10/99

Effective
date

Boston
New York . . .
Philadelphia .
Cleveland . . .
Richmond . . .
Atlanta

Previous
rate

On
12/10/99

Effective
date

Extended credit
Previous
rate

On
12/10/99

Effective
date

11/16/99
11/18/99
11/18/99
11/16/99
11/16/99
11/17/99

Chicago
St. Louis
Minneapolis .
Kansas City . .
Dallas
San Francisco

Seasonal credit

Special Liquidity Facility credit
Previous
rate

On
12/10/99

Effective
date

11/18/99
11/18/99
11/18/99
11/16/99
11/17/99
11/16/99

6.15

Range of rates for adjustment credit in recent years
Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

9
20
11
12
3
10
21
22
16
20
1
3

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

6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5

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

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

12
12

1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
8
1981—May 5
8
Nov. 2
6
Dec. 4

12-13
13
12-13
12

13
13
13
12
11
11
10
10
11
12
13
13
14
14
13
13
12

In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.

1
1

11-12

11
10-11

10
11
12
12-13

1
3

13-14
14
13-14
13
12

10
10.5
10.5
11
11

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

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

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

9
13
Nov. 21
26
Dec. 24

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985—May 20
24

7.5-8
7.5

7.5
7.5

1986—Mar.

7
10
Apr. 21
23
July 11
Aug. 21
22

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

7
7
6.5
6.5
6
5.5
5.5

1987—Sept. 4
11

5.5-6
6

6
6

1988—Aug.

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
1984—Apr.

1990—Dec. 19

Range (or
level)—All
F.R. Banks

6.5

6.5

1
4
30
2
13
17
6
7
20
24

6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5^.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

2
7

3-3.5
3

1994—May 17
18
Aug. 16
18
Nov. 15
17

3-3.5
3.5
3.5^1
4
4-4.75
4.75

3.5
3.5
4
4
4.75
4.75

1
9

4.75-5.25
5.25

5.25
5.25

1996—Jan. 31
Feb. 5

5.00-5.25
5.00

5.00
5.00

1998—Oct. 15
16
Nov. 17
19

4.75-5.00
4.75
4.50-4.75
4.50

4.75
4.75
4.50
4.50

1999—Aug. 24
26
Nov. 16
18

4.50-4.75
4.75
4.75-5.00
5.00

4.75
4.75
4.75
5.00

5.00

5.00

1991—Feb.
Apr.
May
Sept.
Nov.
Dec.
1992—July

1995—Feb.

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




Effective date

In effect Dec. 10, 1999

3
3

ordinarily is reestablished on the first business day of each two-week reserve maintenance
period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis
points.
4. Available in the period between October 1, 1999, and April 7, 2000, to help depository
institutions in sound financial condition meet unusual needs for funds in the period around the
century date change. The interest rate on loans from the special facility is the Federal Open
Market Committee's intended federal funds rate plus 150 basis points.
5. For earlier data, see the following publications of the Board of Governors: Banking and
Monetary Statistics, 1914-1941, and 1941-1970- and the Annual Statistical Digest, 19701979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit
borrowings by institutions with deposits of $500 million or more that had borrowed in
successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was
in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed
on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to
4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981,
and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period. The
surcharge was eliminated on Nov. 17, 1981.

A8

DomesticNonfinancialStatistics • January 2000

1.15

RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Requirement
Type of deposit
Percentage of
deposits

1. Required reserves must be held in the form of deposits with Federal Reserve Banks
or vault cash. Nonmember institutions may maintain reserve balances with a Federal
Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For
previous reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions
include commercial banks, savings banks, savings and loan associations, credit unions,
agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than six
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 30, 1999, for depository institutions that report weekly, and with the period
beginning January 20, 2000, for institutions that report quarterly, the amount was decreased
from $46.5 million to $44.3 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the




12/30/99
12/30/99
12/27/90

0

Net transaction accounts2
$0 million-$44.3 million 3
More than $44.3 million 4

3
10
0

1
2

Effective date

12/27/90

succeeding calendar year by 80 percent of the percentage increase in the total reservable
liabilities of all depository institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 30, 1999, for depository institutions that report
weekly, and with the period beginning January 20, 2000, for institutions that report quarterly,
the exemption was raised from $4.9 million to $5.0 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1 Vi years was reduced from 3 percent to 11/2 percent for
the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on
nonpersonal time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 l/z years (see note 5).

Policy Instruments

A9

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
Millions of dollars
1999
T y p e of transaction
and maturity

1996

1997

1998
Mar.

May

Apr.

June

Aug.

July

Sept.

U.S. TREASURY SECURITIES2

1
7
4
5

7
8
9
10
11
1?
N
14
1.5
16
17
18
19
?0
71
22
?3
?4
25

Outright transactions
(excluding
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within o n e year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
O n e to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
M o r e than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
G r o s s purchases
Gross sales
Redemptions

matched

Matched
transactions
76 Gross purchases
27 Gross sales
Repurchase
agreements
78 Gross purchases
29 Gross sales
30 Net c h a n g e in U.S. Treasury securities

9,901
0
426,928
426,928
0

9,147
0
436,257
435,907
0

3,550
0
450,835
450,835
2,000

0
0
35,065
35,065
0

0
0
48,142
48,142
0

0
0
37,107
37,107
0

0
0
35,045
35,045
0

0
0
42,037
42,037
0

0
0
37,052
37,052
0

0
0
42,643
42,643
0

524
0
30,512
-41,394
2,015

5,549
0
41,716
-27,499
1,996

6,297
0
46,062
-49,434
2,676

1,060
0
3,015
-5,956
0

1,677
0
3,768
-3,370
726

1,421
0
3,768
-4,607
0

880
0
2,740
-5,540
0

951
0
3,279
-368
41

429
0
7,669
-10,798
0

960
0
3,468
-2,125
0

3,898
0
-25,022
31,459

20,080
0
-37,987
20,274

12,901
0
-37,777
37,154

2,428
0
-3,015
5,956

3,362
0
-3,768
3,020

4,442
0
-3,768
2,562

948
0
-2,740
5,540

0
0
-3,279
0

1,272
0
-4,751
8,433

0
0
-3,468
2,125

1,116
0
-5,469
6,666

3,449
0
-1,954
5,215

2,294
0
-5,908
7,439

346
0
0
0

945
0
0
0

1,584
0
0
2,045

65
0
0
0

0
0
0
373

447
0
-2,918
1,290

0
0
0
0

1,655
0
-20
3,270

5,897
0
-1,775
2,360

4,884
0
-2,377
4,842

2,404
0
0
0

262
0
0
350

2,890
0
0
0

0
0
0
0

0
0
0
0

1,075
0
0
1,075

0
0
0
0

17,094
0
2,015

44,122
0
1,996

29,926
0
4,676

6,238
0
0

6,246
0
726

10,337
0
0

1,893
0
0

951
0
41

3,223
0
0

960
0
0

3,092,399
3,094,769

3,577,954
3,580,274

4,395,430
4,399,330

393,267
394,865

366,838
364,476

356,960
358,362

380,872
380,464

347,067
346,747

374,032
373,159

348,014
350,151

457,568
450,359

810,485
809,268

512,671
514,186

62,878
53,706

45,067
48,867

27,605
30,531

17,710
14,614

27,707
33,612

23,097
23,717

29,369
24,337

19,919

41,022

19,835

13,812

4,082

6,008

5,397

-4,675

3,476

3,855

0
0
409

0
0
1,540

0
25
322

0
0
25

0
0
0

0
0
0

0
0
52

0
0
10

0
0
11

0
0
0

75,354
74,842

160,409
159,369

284,316
276,266

35,731
34,009

20,623
22,937

38,167
36,962

32,786
32,104

46,941
48,840

61,968
56,053

53,224
47,963

FEDERAL AGENCY OBLIGATIONS
Outright
transactions
31 Gross purchases
V Gross sales
33 R e d e m p t i o n s
Repurchase
agreements
34 G r o s s p u r c h a s e s
35 Gross sales
36 Net c h a n g e in federal agency obligations
37 Total n e t c h a n g e in S y s t e m O p e n M a r k e t A c c o u n t . . .

103

-500

7,703

1,697

-2,314

1,205

630

-1,909

5,904

5,261

20,021

40,522

27,538

15,509

1,768

7,213

6,028

-6,584

9,380

9,116

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




2. Transactions exclude c h a n g e s in compensation for the effects of inflation on the principal
of inflation-indexed securities.

A10
1.18

DomesticNonfinancialStatistics • January 2000
FEDERAL RESERVE BANKS

Condition and Federal Reserve Note Statements1

Millions of dollars
Wednesday
1999

Account
Sept. 29

Oct. 6

End of month
1999

Oct. 13

Oct. 20

Oct. 27

Aug. 31

Sept. 30

Oct. 31

Consolidated condition statement

ASSETS
11,048
7,200
287

11,050
7,200
298

11,051
7,200
304

11,050
7,200
317

11,050
7,200
317

11,045
8,200
294

11,047
7,200
298

11,049
7,200
331

418
0
0

419
0
0

261
0
0

228
0
0

211
0
0

338
0
0

480
0
0

173
0
0

4,011

15,520

23,550

20,065

238
11,183

228
7,110

198
0

198
0

188
0

238
9,195

238
14,456

188
0

10 Total U.S. Treasury securities 3

496,239

493,426

491,282

491,367

492,051

492,773

496,644

490,738

11 Bought outright 4
12
Bills
13
Notes
14
Bonds
15 Held under repurchase agreements

491,019
199,165
211,801
80,053
5,220

491,266
199,410
211,803
80,053
2,160

491,282
199,423
211,806
80,054
0

491,367
199,669
211,270
80,428
0

492,051
200,350
211,272
80,429
0

490,198
199,320
210,829
80,049
2,575

489,037
197,183
211,801
80,053
7,607

490,738
199,035
211,273
80,430
0

16 Total loans a n d securities

508,078

505,194

507,261

515,343

512,515

502,544

511,817

513,659

6,978
1,337

9,050
1,340

13,877
1,341

7,656
1,342

6,656
1,341

9,328
1,332

5,649
1,336

4,726
1,344

15,861
17,149

16,108
16,721

16,112
16,937

16,116
17,108

16,120
17,464

15,845
15,445

16,105
16,864

16,251
17,678

567,937

566,961

574,084

576,132

572,664

564,033

570,317

572,239

517,199
n.a.

520,697
0

524,543
0

525,927
0

528,449
0

511,545
n.a.

517,035
n.a.

528,509
0

25,609

19,778

20,927

25,035

19,533

24,750

28,759

20,420

16,996
8,232
191
191

14,067
5,259
178
274

15,424
4,948
284
270

19,633
4,925
167
311

14,775
4,363
172
223

18,800
5,559
166
225

21,684
6,641
243
191

15,502
4,527
189
202

6,643
5,012

8,106
4,683

10,839
4,262

7,179
4,463

6,730
4,444

9,011
4,605

5,418
5,323

4,909
4,455

554,464

553,263

560,570

562,604

559,156

549,911

556,535

558,293

6,329
5,952
1,192

6,333
5,952
1,412

6,336
5,952
1,225

6,337
5,952
1,239

6,354
5,952
1,201

6,308
5,952
1,863

6,330
5,952
1,499

6,355
5,952
1,639

567,937

566,961

574,084

576,132

572,664

564,033

570,317

572,239

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Triparty Obligations
2
7 Repurchase agreements—triparty
Federal agency obligations3
8 Bought outright
9 Held under repurchase agreements

17 Items in process of collection
18 Bank premises
Other assets
19 Denominated in foreign currencies 5
20 All other 6
21 Total assets

n.a.

n.a.

n.a.

22,560

LIABILITIES
22 Federal Reserve notes
23 Reverse repurchase agreements—triparty 2
24 Total deposits
25
26
27
28

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

29 Deferred credit items
30 Other liabilities and accrued dividends
31 Total liabilities
CAPITAL ACCOUNTS
32 Capital paid in
33 Surplus
34 Other capital accounts
35 Total liabilities a n d capital accounts

MEMO
36 Marketable U.S. Treasury securities held in custody for
foreign and international accounts

Federal Reserve note statement
37 Federal Reserve notes outstanding (issued to Banks)
38
LESS: Held by Federal Reserve Banks
Federal Reserve notes, net
39

40
41
42
43
44

Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
Total collateral

824,276
307,076
517,199

828,182
307,485
520,697

827,718
303,175
524,543

828,391
302,464
525,927

827,758
299,309
528,449

780,358
268,813
511,545

827,075
310,040
517,035

827,249
298,740
528,509

11,048
7,200
0
498,952
517,199

11,050
7,200
0
502,447
520,697

11,051
7,200
0
506,292
524,543

11,050
7,200
0
507,677
525,927

11,050
7,200
0
510,199
528,449

11,045
8,200
0
492,300
511,545

11,047
7,200
0
498,788
517,035

11,049
7,200
0
510,261
528,509

1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Cash value of agreements arranged through third-party custodial banks.
3. Face value of the securities.
4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.




5. Valued monthly at market exchange rates.
6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
7. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.

Federal Reserve Banks
1.19

FEDERAL RESERVE BANKS

All

Maturity Distribution of Loan and Security Holding

Millions of dollars
Wednesday
1999

Type of holding and maturity
Sept. 29

Oct. 6

End of month
1999

Oct. 13

Oct. 20

Oct. 27

Aug. 31

Sept. 30

Oct. 31

1 Total loans

418

419

261

228

211

338

480

173

2 Within fifteen days'
3. Sixteen days to ninety days

372
46

192
227

72
189

198
30

181
29

189
149

330
150

106
66

4 Total U.S. Treasury securities 2

496,239

493,426

491,282

491,367

492,051

492,763

496,644

490,738

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

19,310
97,374
142,227
122,349
50,204
64,777

14,900
99,028
143,316
121,199
50,205
64,777

14,978
102,323
137,796
121,200
50,207
64,778

10,793
101,936
142,077
121,200
50,209
65,152

10,377
103,172
141,937
121,200
50,211
65,153

11,187
100,038
144,224
122,346
50,195
64,773

10,704
96,836
152,924
121,199
50,204
64,777

7,085
105,645
141,442
121,201
50,212
65,153

11,421

7,388

198

198

188

5,168

14,694

188

11,223
17
51
10
120
0

7,140
17
51
10
120
0

10
7
51
10
120
0

10
7
51
10
120
0

7
6
45
10
120
0

4,930
27
41
20
150
0

14,496
17
51
10
120
0

7
6
45
10
120
0

5
6
7
8
9
10

11 Total federal agency obligations
12
13
14
15
16
17

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.




2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.

A12
1.20

Domestic Financial Statistics • January 2000
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1999
Item

1995
Dec.

1996
Dec.

1997
Dec.

1998
Dec.
Mar.

Total reserves 3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 6

May

June

July

Aug.

Sept.

Oct.

42.87
42.72
42.72
41.61
537.63

41.98
41.67
41.67
40.90
541.20

42.07
41.72
41.72
40.94
544.42 r

42.11
41.77
41.77
40.92
549.56 r

40.95
40.66
40.66
39.79
557.10

Seasonally adjusted

A D J U S T E D FOR
CHANGES IN R E S E R V E R E Q U I R E M E N T S 2

1
2
3
4
5

Apr.

56.45
56.20
56.20
55.16
434.10

50.16
50.01
50.01
48.75
451.37

46.86
46.54
46.54
45.18
478.88

44.90
44.79
44.79
43.32
512.32

43.72
43.65
43.65
42.41
524.23

43.98
43.81
43.81
42.82
528.74

44.36
44.23
44.23
43.11
534.86

Not seasonally adjusted
6
7
8
9
10

Total reserves 7
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves 8
Monetary base 9

58.02
57.76
57.76
56.73
439.03

51.45
51.30
51.30
50.04
456.63

48.01
47.69
47.69
46.33
484.98

45.12
45.00
45.00
43.54
518.28

43.14
43.08
43.08
41.84
523.35

43.67
43.50
43.50
42.51
526.77

44.91
44.78
44.78
43.65
533.12

42.43
42.29
42.29
41.17
535.88

41.85
41.54
41.54
40.77
540.98

41.92
41.58
41.58
40.79
543.87

41.85
41.51
41.51
40.65
548.13 r

40.77
40.49
40.49
39.62
555.46

57.90
57.64
57.64
56.61
444.45
1.29
.26

51.17
51.02
51.02
49.76
463.40
1.42
.16

47.92
47.60
47.60
46.24
491.79
1.69
.32

45.02
44.90
44.90
43.44
525.06
1.58
.12

43.12
43.06
43.06
41.82
530.30
1.31
.07

43.65
43.48
43.48
42.49
533.49
1.16
.17

44.88
44.75
44.75
43.62
539.98
1.26
.13

42.39
42.25
42.25
41.13
542.82
1.26
.15

41.80
41.49
41.49
40.73
548.07
1.08
.31

41.87
41.53
41.53
40.74
550.86
1.13
.34

41.79
41.45
41.45
40.59
555.19 r
1.20
.34

40.70
40.42
40.42
39.55
562.59
1.16
.28

N O T A D J U S T E D FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S 1 0

11
12
13
14
15
16
17

Total reserves 11
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5
Required reserves
Monetary base 12
Excess reserves 13
Borrowings from the Federal Reserve

1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).




8. To adjust required reserves for discontinuities that are due to regulatory changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

Monetary and Credit Aggregates
1.21

A13

MONEY STOCK AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1999
Item

1995
Dec.

1996
Dec.

1997
Dec.

1998
Dec.
July

r

Aug/

Sept/

Oct.

Seasonally adjusted

1
2
3
4

Measures2
Ml
M2
M3
Debt

5
6
7
8

MI components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6

1,126.7
3,649.1
4,618.5
13,716.1

1,081.3
3,823.9
4,955.6
14,460.8

1,074.9
4,046.4
5,403.4
15,223.5

1,093.4
4,401.0
5,995.8
16,243.3r

1,099.5
4,543.1
6,191.6
16,851.1

1,102.4
4,564.5
6,218.6
16,937.6

1,093.4
4,583.1
6,253.1
17,029.0

1,098.4
4,602.2
6,306.8
n.a.

372.3
8.3
389.4
356.7

394.1
8.0
403.0
276.2

424.5
7.7
396.5
246.2

459.2
7.8
377.5
248.8

487.3
8.6
362.7
240.9

490.9
8.6
363.3
239.6

495.0
8.3
352.8
237.4

499.1
8.1
354.5
236.8

2,522.4
969.4

2,742.6
1,131.7

2,971.5
1,357.0

3,307.6
1,594.8

3,443.6
1,648.6

3,462.1
1,654.1

3,489.6
1,670.0

3,503.7
1,704.6

Commercial banks
11 Savings deposits, including MMDAs . .
12 Small time deposits 9
13 Large time deposits' 0- 11

775.3
575.0
346.6

905.2
593.7
414.8

1,022.9
626.1
490.2

1,189.8
626.0
541.0

1,260.8
613.1
539.6

1,269.2
614.8
537.3

1,284.4
618.6
550.1

1,288.9
622.0
578.7

Thrift institutions
14 Savings deposits, including MMDAs . .
15 Small time deposits 9
16 Large time deposits 10

359.8
356.7
74.5

367.1
353.8
78.4

377.3
343.2
85.9

415.2
325.9
89.1

455.0
311.7
88.7

456.6
312.0
89.1

458.3
312.9
89.9

456.8
314.1
89.3

Money market mutual funds
17 Retail
18 Institution-only

455.5
255.9

522.8
313.3

602.0
379.9

750.7
516.2

802.9
546.0

809.5
556.4

815.4
559.3

821.9
571.0

Repurchase agreements and Eurodollars
19 Repurchase agreements' 2
20 Eurodollars'"

198.7
93.7

211.3
113.9

251.7
149.3

297.8
150.7

308.6
165.6

310.2
161.1

309.7
161.0

306.6
159.0

3,639.1
10,077.0

3,781.3
10,679.5

3,800.3
11,423.2

3,750.8
12,492.6r

3,708.0
13,143.1

3,711.0
13,226.6

3,698.1
13,330.9

n.a.
n.a.

Nontransaction
9 In M2 7
10 In M3 only 8

components

Debt components
21 Federal debt
22 Nonfederal debt

Not seasonally adjusted

23
24
25
26

Measures2
Ml
M2
M3
Debt

27
28
29
30

Ml components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6

1,152.4
3,671.7
4,638.0
13,716.6

1,104.9
3,843.7
4,972.5
14,459.3

1,097.4
4,064.6
5,419.6
15,220.6

1,115.3
4,417.8
6,011.9
16,240.2r

1,098.1
4,533.3
6,162.3
16,785.3

1,097.6
4,558.9
6,201.6
16,875.8

1,088.1
4,568.8
6,225.0
16,973.3

1,095.7
4,586.7
6,289.9
n.a.

376.2
8.5
407.2
360.5

397.9
8.3
419.9
278.8

428.9
7.9
412.3
248.3

464.2
8.0
392.4
250.7

487.7
8.3
362.7
239.4

490.2
8.2
361.9
237.3

493.4
8.1
350.8
235.7

498.9
8.0
353.9
234.9

2,519.3
966.4

2,738.9
1,128.8

2,967.2
1,355.0

3,302.5
1,594.1

3,435.2
1,629.0

3,461.3
1,642.7

3,480.7
1,656.2

3,491.0
1,703.2

Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits 9
35 Large time deposits' 0, "

774.1
573.8
345.8

903.3
592.7
413.3

1,020.4
625.3
487.7

1,186.8
625.4
537.4

1,261.7
612.9
539.4

1,268.4
614.4
537.5

1,277.5
618.3
550.5

1,279.5
622.8
581.7

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits 9
38 Large time deposits' 0

359.2
355.9
74.3

366.3
353.2
78.1

376.4
342.8
85.4

414.1
325.6
88.5

455.4
311.6
88.6

456.3
311.8
89.2

455.8
312.7
90.0

453.5
314.5
89.8

Money market mutual funds
39 Retail
40 Institution-only

456.1
257.7

523.2
316.0

602.3
384.5

750.6
523.3

793.7
533.4

810.4
548.0

816.4
547.5

820.7
566.7

Repurchase agreements and Eurodollars
41 Repurchase agreements' 2
42 Eurodollars' 2

193.8
94.9

205.7
115.7

245.1
152.3

290.5
154.5

305.9
161.6

308.4
159.7

308.4
159.9

305.2
159.8

3,645.9
10,070.7

3,787.9
10,671.4

3,805.8
11,414.8

3,754.9
12,485.2r

3,652.2
13,133.2

3,665.8
13,210.0

3,655.8
13,317.5

Nontransaction
31 In M2 7
32 In M3 only 8

components

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




n.a.
n.a.

A14

DomesticNonfinancialStatistics • January 2000

NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
M l : (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted M l .
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enter-




prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.

Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A15

Assets and Liabilities1

A. All commercial banks
Billions of dollars
Wednesday figures

Monthly averages
Account

1999

1999

1998
Oct.

Apr.

July r

June

May

Aug. r

Sept/

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Seasonally adjusted

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security 3
Other loans and leases
Interbank loans
Cash assets4
Other assets5

17
18
19
20
21
22
23
24
25
26

4,555.6r
l,213.7r
812.9r
400.8r
3,341.9r
963.5r
1,365.9
103.7
1,262.2
491.3
131.0r
390.2r
224.5
261.0
348.6

4,553.0
1,231.1
813.9
417.2
3,321.9
965.0
1,367.4
97.9
1,269.4
481.9
122.2
385.4
224.0
258.2
348.7

4,588.1
1,248.2
819.8
428.4
3,339.9
973.0
1.379.7
98.5
1,281.2
480.1
122.4
384.6
214.9
253.5
345.5

4,619.2
1,258.8
817.3
441.5
3,360.5
980.7
1,396.7
106.4
1,290.3
481.0
116.0
386.1
207.8
263.7
349.4

4,625.8
1,247.6
809.5
438.2
3,378.2
983.7
1,421.0
115.1
1,305.9
480.7
107.8
385.0
218.6
271.4
360.5

4,629.3
1,260.1
816.8
443.3
3,369.1
979.9
1,415.0
114.6
1,300.4
479.7
105.8
388.8
214.2
262.4
355.6

4,613.5
1,250.3
814.3
435.9
3,363.2
979.2
1,420.4
115.2
1,305.3
479.7
101.7
382.2
212.2
271.5
362.4

4,621.0
1,244.6
808.0
436.6
3,376.4
985.6
1,422.0
115.3
1,306.7
481.0
105.7
382.1
217.8
273.7
363.1

4,639.2
1,248.4
807.1
441.2
3,390.8
986.7
1,423.0
115.2
1,307.8
482.1
114.0
385.1
228.4
276.3
362.9

5,271.5r

5,295.1r

5,331.0"

5325.7

5,343.4

5381.0

5,416.9

5,402.4

5,400.2

5,416.2

5,4472

3,376.5
656.6
2,719.9
725.7
1,994.2
983.7
311.8
671.9
210.2
273.8

3,374.9
649.6
2,725.2
723.6
2,001.7
997.8
324.3
673.6
203.9
271.1

3,377.2
655.7
2,721.5
718.8
2,002.7
1,020.5
338.4
682.0
215.1
275.5

3,392.0
649.3
2,742.8
722.4
2,020.4
1,018.8
339.2
679.6
212.5
274.0

3,385.5
637.2
2,748.3
720.4
2,027.9
1,025.8
338.5
687.3
222.4
279.2

3,396.0
635.3
2,760.7
728.6
2,032.1
1,038.1
342.6
695.6
218.3
289.0

3,434.0
631.8
2,802.1
765.9
2,036.2
1,041.0
352.6
688.5
220.6
287.8

3,421.5
618.9
2,802.6
753.6
2,049.0
1,033.4
355.3
678.0
235.9
282.6

3,437.3
631.3
2,806.0
762.3
2,043.6
1,032.5
347.3
685.2
218.5
281.2

3,424.1
631.2
2,792.9
766.7
2,026.2
1,048.2
350.6
697.7
218.5
288.1

3,443.5
653.1
2,790.4
769.7
2,020.7
1,045.9
351.9
694.0
210.7
301.1

4,808.4

27 Total liabilities
28 Residual (assets less liabilities)7

4,519.3r
l,195.4r
799.9"
395.5r
3.323.91
957.4r
1,360.3
104.3
1,256.0
495.9
126.8r
383,5r
227.5
259.9
347.2

3,287.6
673.0
2,614.5
714.8
1,899.8
983.4
315.5
667.9
221.0
316.5

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

^sio.o 1
1,195.^
801.8r
394.1r
3,314.1r
961.7r
1,351.0
103.0
1,247.9
499.5
122.1r
379.9r
217.4
257.8
344.8

5,226.7r

16 Total assets 6

4,490.4r
l,218.8r
116.9
441.9
3,271.6r
943.9r
1,301.2
102.4
l,198.9r
493.1
156.6r
376.7r
219.2
246.1
329.0

4,844.2

4,847.7

4,888.2

4,897.4

4,912.9

4,941.4

4,983.4

4,973.5

4,969.4

4,978.9

5,001.2

418.3r

427.3r

447.5r

442.8r

428.3

430.5

439.6

433.5

428.9

430.8

437.3

446.0

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
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5

45
46
47
48
49
50
51
52
53
54

55 Total liabilities
56 Residual (assets less liabilities)

7

4,522.0"
1,200.9"
808. l r
392.8r
3,321.lr
961.9r
1,359.7
103.9
1,255.8
493.4
126.6r
379.5r
223.3
257.6
348.7

4,549.4r
l,210.4r
812.4r
398.0"
S^.O 1 "
963.8r
1,366.5
103.3
1,263.2
488.6
130.4r
389.8r
221.8
256.6
354.5

4,537.0
1,220.0
806.0
413.9
3,317.0
962.6
1,368.4
97.7
1,270.6
479.5
120.2
386.4
217.7
250.3
351.4

4,567.0
1,235.4
808.1
427.3
3,331.7
964.4
1,382.3
98.7
1,283.6
481.2
118.7
385.1
207.1
243.1
348.3

4,609.4
1,247.6
807.1
440.5
3,361.8
976.7
1,400.4
107.2
1,293.2
484.0
112.7
388.0
204.2
261.0
351.4

4,630.3
1,244.1
803.8
440.3
3,386.2
984.8
1,424.7
116.0
1,308.7
481.4
108.6
386.7
215.1
271.6
357.8

4,628.0
1,251.6
807.7
444.0
3,376.4
981.7
1,418.7
115.3
1,303.4
479.8
104.5
391.6
211.9
256.2
356.3

4,615.5
1,243.7
805.6
438.1
3,371.8
979.1
1,425.2
116.0
1,309.3
480.0
102.5
384.9
208.0
290.3
362.3

4,623.9
1,239.6
801.8
437.9
3,384.2
986.6
1,424.9
116.2
1,308.7
481.9
107.2
383.6
211.1
270.1
356.1

4,641.3
1,247.7
803.8
443.9
3,393.6
986.3
1,425.6
116.1
1,309.5
483.5
114.3
383.9
221.2
266.2
356.0

5,285.6r

5,292.9r

5,323.5r

5,298.2

5,306.7

5366.7

5,415.6

53933

5,416.8

5,402.1

5,425.4

3,287.1
662.9
2,624.1
716.4
1,907.7
985.6
313.6
672.0
223.5
315.0

3,387.2
664.2
2,723.0
722.6
2,000.3
983.5
312.4
671.1
203.1
273.4

3,365.5
640.6
2,724.9
724.8
2,000.1
1,006.0
325.2
680.8
210.1
270.8

3,375.2
650.8
2,724.4
716.1
2,008.3
1,024.1
338.3
685.7
209.3
274.8

3,375.7
638.5
2,737.1
715.7
2,021.5
1,009.5
334.6
674.9
204.7
273.2

3,371.6
620.9
2,750.7
717.7
2,033.0
1,002.3
331.3
671.0
217.4
279.1

3,394.6
629.5
2,765.1
730.1
2,035.0
1,033.0
338.8
694.2
214.3
287.9

3,436.5
623.6
2,812.9
767.5
2,045.4
1,043.7
350.2
693.5
222.3
286.3

3,432.7
615.9
2,816.7
755.8
2,060.9
1,025.0
349.8
675.2
222.4
280.5

3,456.5
637.6
2,818.8
762.9
2,055.9
1,029.9
343.5
686.4
218.0
279.6

3,418.3
617.2
2,801.1
766.6
2,034.5
1,053.4
348.3
705.1
221.1
286.4

3,417.5
623.7
2,793.8
772.9
2,020.9
1,056.1
351.2
704.9
228.7
300.1

4,811.2

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

4,518.3r
l,204.6r
811.8r
392.9"
3,313.7r
968.4r
1,347.6
102.4
l,245.3r
496.0
124.0"
377.7r
222.4
255.5
347.8

5,228.0r

44 Total assets 6

4,495.4r
l,216.7r
772. l r
444.5
3,278.7r
943.6r
1,304.7
103.2
1,201.5
493.6
158.2r
378.6r
217.0
246.5
326.9

4,847.3

4,852.3

4,883.4

r

r

r

416.8

440. l

4,863.1

4,870.4

4,929.9

4,988.8

4,960.6

4,983.9

4,979.2

5,002.4

r

435.1

436.3

436.8

426.8

432.7

433.0

422.9

423.0

438.4

440.6

93.2r

92.6r

92.6r

97.8

102.8

111.3

98.8

107.3

97.5

96.6

99.6

95.0"

r

r

99.1

105.4

110.4

97.4

105.1

95.5

94.5

99.1

MEMO

57 Revaluation gains on off-balance-sheet
items 8
58 Revaluation losses on off-balancesheet items 8
Footnotes appear on p. A21.




134.1
131.2

94.5

94.7

A16
1.26

Domestic Financial Statistics • January 2000
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1—Continued

B. Domestically chartered commercial banks
Billions of dollars

Monthly averages

Account

1998

Oct.

Wednesday figures

1999

Apr.

May

June

July r

1999
Aug. r

Sept. r

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Seasonally adjusted

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5

3,871.4 r
1,000.0
695.6
304.4
2,871.3 r
720.8
1,277.7
102.4
1,175.3
493.1
86.5
293.3 r
193.6
210.6
290.6

17
18
19
20
21
22
23
24
25
26

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

28 Residual (assets less liabilities) 7

4,032.5
1,041.5
728.0
313.6
2,991.0
772.3
1,349.0
97.9
1,251.1
481.9
69.6
318.2
196.5
223.1
316.6

4,064.5
1,058.3
735.8
322.5
3,006.1
777.6
1,362.1
98.5
1,263.6
480.1
67.4
318.9
189.2
215.5
316.5

4,100.7
1,069.6
735.7
334.0
3,031.0
783.5
1,379.1
106.4
1,272.7
481.0
64.8
322.7
184.9
222.9
320.1

4,108.0
1,061.0
729.7
331.3
3,047.0
784.7
1,403.2
115.1
1,288.1
480.7
56.1
322.3
195.6
227.3
328.6

4,110.4
1,071.1
734.9
336.1
3,039.4
781.6
1,397.0
114.6
1,282.4
479.7
55.1
326.0
192.3
218.5
325.6

4,097.6
1,063.9
734.6
329.3
3,033.7
780.2
1,402.6
115.2
1,287.5
479.7
51.4
319.7
191.0
229.2
330.3

4,104.1
1,059.2
729.7
329.5
3,044.9
785.5
1,404.2
115.3
1,288.9
481.0
54.6
319.6
196.4
230.1
331.0

4,119.7
1,060.5
726.6
333.9
3,059.1
787.7
1,405.2
115.2
1,290.0
482.1
61.9
322.2
202.2
231.7
330.6

4,624.2 r

4,657.1 r

4,707.4 r

4,710.9

4,727.3

4,769.7

4,800.5

4,788.1

4,789.1

4,802.4

4,824.8

2,971.5
657.7
2,313.8
415.3
1,898.5
767.6
284.7
482.9
115.3
237.5

3,064.6
646.5
2,418.1
425.5
1,992.6
811.6
290.8
520.8
115.4
206.6

3,064.4
639.1
2,425.3
425.6
1,999.7
825.1
302.9
522.3
118.7
211.1

3,071.5
644.8
2,426.6
426.2
2,000.5
839.6
311.9
527.7
145.6
214.1

3,081.6
638.3
2,443.2
425.7
2,017.6
846.5
314.7
531.8
145.2
210.7

3,076.3
626.2
2,450.1
426.2
2,023.9
853.6
314.9
538.8
150.5
217.5

3,084.9
624.4
2,460.4
433.5
2,026.9
869.2
317.3
551.9
152.2
224.5

3,102.6
620.4
2,482.3
447.8
2,034.4
871.5
329.8
541.7
166.2
224.9

3,102.0
607.6
2,494.5
448.7
2,045.8
866.6
332.0
534.6
169.2
219.9

3,108.5
619.8
2,488.7
447.5
2,041.2
864.5
327.4
537.1
166.1
218.7

3,090.8
619.3
2,471.5
446.4
2,025.1
878.5
327.9
550.6
167.5
225.8

3,107.5
641.7
2,465.8
446.2
2,019.6
875.7
329.4
546.3
160.4
237.2

4,198.2

4,219.4

4,270.7

4,283.9

4,297.9

4,330.8

4,365.2

4,357.7

4,357.8

4,362.5

4,380.8

416.6 r

27 Total liabilities

4,023.2 r
l,017.7 r
724.5
293.2 r
3,005.5 r
766.8
1,346.7
103.7
1,243.0
491.3
79.0
321.7 r
200.0
227.5
315.1

4,091.9

....

3,979.5 r
999.5 r
712.7
286.7 r
2,980.0 r
755.5
1,340.5
104.3
1,236.2
495.9
73.4
314.7 r
200.9
223.9
311.3

4,508.5 r

16 Total assets 6

3,959.9 r
995.6 r
712.3
283.3 r
2,964.4 r
752.4
1,331.0
103.0
1,228.0
499.5
70.1
311.3 r
192.0
223.2
307.3

425.9 r

436.7 r

427.0

429.3

439.0

435.3

430.4

431.3

439.9

444.0

4,107.3
1,062.6
727.0
335.6
3,044.7
782.1
1,400.6
115.3
1,285.3
479.8
53.8
328.5
190.1
212.3
326.3

4,096.2
1,054.6
726.3
328.3
3,041.5
779.8
1,407.3
116.0
1,291.3
480.0
52.1
322.3
186.8
247.6
330.1

4,103.5
1,052.0
723.4
328.6
3,051.5
785.8
1,407.0
116.2
1,290.8
481.9
56.5
320.4
189.7
225.7
324.2

4,117.6
1,056.0
722.8
333.3
3,061.6
786.3
1,407.7
116.1

437.8 r

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
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5

3,872.2 r
994.8
691.0
303.9
2,877.4 r
719.5
1,281.0
103.2
1,177.7
493.6
88.3
295.0 r
191.5
210.6
288.6
4,505.3 r

44 Total assets 6

45
46
47
48
49
50
51
52
53
54

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

....

55 Total liabilities
56 Residual (assets less liabilities) 7

3,971.0 r
l,005.8 r
722.6
283.2 r
2,965.2 r
760.6
1,327.9
102.4

4,644.0 r

2,970.6
647.6
2,323.0
417.1
1,905.9
769.8
282.8
487.0
115.5
236.8

3,987.4 r
l,006.6 r
720.1
286.5 r
2,980.8 r
762.6
1,340.1
103.9
1,236.3
493.4
73.5

4,020. l r
l,015.3 r
723.6
291.7 r
3,004.8 r
768.8
1,347.5
103.3

4,019.7
1,032.0
720.6
311.4
2,987.7
770.7
1,350.2
97.7

4,047.1
1,046.7
725.0
321.7
3,000.4
770.6
1,364.9
98.7

4,091.7
1,059.2
726.4
332.7
3,032.6
779.9
1,382.8
107.2

1,244.2

1,252.4

1,266.1

1,275.6

488.6
78.2
321.8 r
197.3
222.2
322.1

479.5
67.9
319.4
190.2
215.4
320.0

481.2
63.7
320.1
181.4
205.5
318.7

484.0
61.3
324.7
181.4
220.4
321.8

4,108.6
1,054.8
724.1
330.7
3,053.7
784.7
1,406.7
116.0
1,290.8
481.4
57.2
323.7
192.1
226.9
326.1

4,661.2 r

4,703.2 r

4,687.4

4,694.1

4,756.2

4,794.8

4,777.1

4,801.8

4,784.3

4,798.3

3,075.9
654.3
2,421.6
423.4
1,998.2
811.4
291.4
519.9
114.0
207.3

3,052.7
630.3
2,422.4
424.5
1,997.9
833.3
303.8
529.5
126.7
211.3

3,068.8
640.1
2,428.6
422.6
2,006.0
843.1
311.7
531.4
141.2
213.9

3,067.7
627.7
2,440.0
420.8
2,019.2
837.2
310.0
527.1
139.9
210.7

3,065.0
610.0
2,455.0
424.3
2,030.7
830.2
307.7
522.5
147.5
217.3

3,083.9
618.1
2,465.8
433.1
2,032.7
864.1
313.6
550.6
149.8
223.8

3,105.1
612.2
2,493.0
449.9
2,043.1
874.2
327.4
546.7
166.1
224.1

3,112.2
604.7
2,507.5
448.9
2,058.7
858.2
326.4
531.9
157.4
218.7

3,128.4
626.1
2,502.4
448.7
2,053.7
861.9
323.6
538.3
163.3
217.9

3,085.8
605.2
2,480.5
448.2
2,032.3
883.6
325.7
558.0
168.7
224.9

3,080.2
612.4
2,467.8
449.2
2,018.7
885.9
328.7
557.2
173.3
236.4

4,092.7

4,208.6

4,224.1

4,267.0

4,255.5

4,259.9

4,321.6

4,369.5

4,346.6

4,371.5

4,363.0

4,375.7

412.6 r

435.5 r

437.1 r

431.9

434.2

434.5

425.3

430.5

430.3

421.2

422.6

82.2

55.0 r

57.3 r

57.7 r

60.5

64.7

73.0

62.9

71.6

61.2

60.9

63.6

83.6
335.9

56.4 r
335.7

59.6 r
335.5

60.5 r
334.3 r

62.8
340.3

69.1
344.4

73.1
347.5

62.2
346.6

70.5
348.8

60.2
348.4

59.7
344.3

63.1
345.6

1,225.5

496.0
72.1
308.7 r
197.0
222.0
312.0

311. R

196.7
222.0
313.5

436.3 r

1,291.5

483.5
63.3
320.9
195.0
220.5
324.2

MEMO

57 Revaluation gains on off-balance-sheet
items 8
58 Revaluation losses on off-balancesheet items 8
59 Mortgage-backed securities 9
Footnotes appear on p. A21.




Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A17

Assets and Liabilities1—Continued

C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures

Monthly averages
Account

Oct.

1999

1999"

1998
Apr.

May

June

July

Aug.

Sept.

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Seasonally adjusted

Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Trading account
5
Investment account
6
Other securities
7
Trading account
8
Investment account
9
State and local government .
10
Other
11
Loans and leases in bank credit 2 . . .
12
Commercial and industrial
13
Bankers acceptances
14
Other
15
Real estate
16
Revolving home equity
17
Other
18
Consumer
19
Security 3
20
Federal funds sold to and
repurchase agreements
with broker-dealers
21
Other
22
State and local government
23
Agricultural
24
Federal funds sold to and
repurchase agreements
with others
25
All other loans
26
Lease-financing receivables
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
29
Other
30 Cash assets 4
31 Other assets 5
32 Total assets 6
33
34
35
36
37
38
39
40
41
42

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

43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.




2,428.9"
584.4r
380.0"
21.0
359. l r
204.4
112.7
91.7
23.9
67.8
1,844.5"
532.3
1.3
531.0"
708.7"
74.2
634.5"
301.0"
80.4

2,430.6
551.5
379.7
25.9
353.8
171.8
72.8
99.0
24.6
74.4
1,879.1
552.8
1.1
551.7
719.0
74.2
644.8
300.6
64.6

2,438.8
551.3
377.8
22.3
355.5
173.5
75.0
98.6
24.8
73.8
1,887.5
553.0
1.0
552.0
722.5
75.1
647.4
297.7
68.3

2,466.5
562.0
384.1
25.1
359.0
178.0
74.2
103.8
25.3
78.5
1,904.5
561.4
1.0
560.4
721.9
74.1
647.8
292.8
73.8

2,461.2
581.9
384.2
22.7
361.5
197.7
79.7
118.0
25.4
92.6
1,879.3
564.1
1.0
563.2
716.8
68.2
648.6
284.1
64.3

2,479.2
596.6
391.8
23.3
368.6
204.7
83.7
121.0
25.7
95.3
1,882.6
567.6
1.1
566.6
721.8
68.7
653.0
280.9
62.2

2,501.2
606.2
390.1
20.9
369.2
216.1
90.9
125.2
25.7
99.5
1,895.0
570.7
1.1
569.5
733.2
76.6
656.6
278.9
59.4

2,487.2
595.4
383.5
20.0
363.5
211.9
83.8
128.2
25.7
102.5
1,891.8
566.1
1.1
564.9
745.7
84.8
660.9
277.0
50.8

2,491.8
603.7
386.4
20.6
365.8
217.3
90.5
126.9
25.6
101.2
1,888.1
564.0
1.2
562.8
742.2
84.4
657.8
276.0
49.8

2,478.1
597.2
386.9
19.3
367.6
210.3
82.8
127.5
25.6
101.9
1,881.0
562.2
1.1
561.0
746.4
84.7
661.7
276.2
46.1

2,482.9
593.6
384.0
20.8
363.2
209.5
81.9
127.7
25.4
102.3
1,889.4
567.0
1.1
565.9
746.7
85.2
661.6
276.8
49.4

2,496.5
595.7
381.5
19.9
361.6
214.2
84.5
129.8
25.4
104.3
1,900.7
568.7
1.1
567.6
745.7
84.9
660.8
277.8
56.7

63.6
16.7
11.4
8.9

47.9
16.7
11.4
8.9

51.4
16.8
11.4
8.6

55.6
18.2
11.4
8.6

46.9
17.4
11.7
8.5

45.3
16.9
11.9
8.8

42.1
17.3
11.9
8.8

34.0
16.8
12.0
8.9

32.0
17.8
12.0
8.8

29.5
16.6
12.0
8.8

31.8
17.7
12.0
8.9

41.1
15.6
11.9
9.0

13.4
87.0"
101.5
123.3"

11.8
92.3
117.9
131.7

10.7
96.0
119.3
143.3

15.5
99.0
120.0
144.7

4.2
103.9
121.7
139.6

7.7
98.7
123.1
134.6

11.0
96.5
124.6
132.7

9.7
94.1
127.4
145.9

10.9
94.6
129.7
143.3

10.3
92.6
126.3
142.3

10.0
92.5
126.0
147.8

7.3
96.0
127.7
151.7

77.2
46.1
144.4
228.8"

81.1
50.6
155.3
234.7

88.1
55.2
153.0
237.3

87.1
57.6
156.2
240.6

89.5
50.1
150.5
238.5

85.9
48.7
143.2
236.0

83.3
49.4
149.8
239.4

90.6
55.3
154.3
243.7

89.3
54.0
148.1
242.2

88.3
54.1
155.4
246.5

92.3
55.6
158.4
243.2

95.8
55.9
156.4
245.5

2,887.1r

2,913.9

2,933.9

2,969.4

2,951.7

2,954.7

2,984.5

2,992.6

2,987.1

2,983.9

2,993.9

3,011-3

1,677.2"
376.7"
1,300.5"
227.1"
1,073.4"
600.6
205.4
395.3
110.6
209.0

1,700.0
364.5
1,335.5
229.0
1,106.5
625.9
207.1
418.8
110.5
176.3

1,694.7
355.5
1,339.1
226.0
1,113.1
633.6
215.6
418.0
113.6
180.0

1,694.9
357.3
1,337.6
227.9
1,109.6
643.4
220.7
422.7
141.5
182.0

1,693.0
351.3
1,341.7
229.4
1,112.3
639.5
217.5
422.1
140.9
179.4

1,680.0
337.8
1,342.2
227.0
1,115.2
645.1
219.1
426.0
147.0
184.4

1,685.9
338.7
1,347.2
232.7
1,114.5
655.2
221.1
434.1
148.8
190.3

1,685.7
334.7
1,351.0
242.6
1,108.4
657.1
237.0
420.0
161.9
190.5

1,691.4
328.5
1,362.9
244.5
1,118.4
652.8
239.0
413.8
165.1
185.2

1,693.2
336.2
1,357.0
242.9
1,114.1
649.6
234.2
415.4
161.6
184.4

1,677.2
333.9
1,343.3
241.5
1,101.8
660.8
233.2
427.6
163.4
191.5

1,684.8
345.9
1,338.8
240.6
1,098.2
663.3
238.5
424.8
156.0
202.4

2,597.4"

2,612.6

2,621.9

2,661.8

2,652.8

2,656.5

2,680.2

2,695.2

2,694.4

2,688.7

2,693.0

2,706.4

289.6"

301.3

311.9

307.7

298.9

298.2

304.3

297.4

292.7

295.1

300.9

304.9

A18
1.26

Domestic Financial Statistics • January 2000
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

C. Large domestically chartered commercial banks—Continued
Monthly averages
Account

1999r

1998
Oct.

Wednesday figures

Apr.

May

June

July

1999
Aug.

Sept.

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities . .
51
Other
52
One year or less
53
One to five years
54
More than five years . . .
55
Other securities
56
Trading account
57
Investment account
58
State and local government . .
59
Other
60
Loans and leases in bank credit 2 . .
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Security3
70
Federal funds sold to and
repurchase agreements
with broker-dealers . . . .
71
Other
72
State and local government . . . .
73
Agricultural
74
Federal funds sold to and
repurchase agreements
with others
75
All other loans
76
Lease-financing receivables . . . .
77 Interbank loans
78
Federal funds sold to and
repurchase agreements
with commercial banks
79
Other
80 Cash assets 4
81 Other assets5

83
84
85
86
87
88
89
90
91
92

93 Total liabilities
94 Residual (assets less liabilities)

7

....

2,436.6
553.1
380.7
20.8
359.9
239.4
120.5
24.3
55.9
40.3
172.5
75.0
97.5
24.9
72.6
1,883.5
557.5
1.0
556.5
719.8
74.7
392.5
252.6
295.5
68.4

2,456.4
557.8
381.3
23.5
357.8
235.1
122.7
25.3
57.7
39.8
176.5
74.2
102.3
25.1
77.2
1,898.6
561.5
1.0
560.5
719.9
73.9
393.2
252.8
290.9
73.0

2,447.2
574.1
378.4
20.9
357.5
233.8
123.6
25.3
58.8
39.5
195.7
79.7
116.0
25.0
91.1
1,873.0
562.7
1.0
561.7
715.9
68.2
394.3
253.4
282.3
62.7

2,459.7
586.5
382.8
22.2
360.7
237.5
123.2
24.9
59.0
39.3
203.7
83.7
120.0
25.4
94.6
1,873.2
561.9
1.1
560.8
722.3
69.1
398.7
254.6
281.5
58.4

2,489.0
598.1
382.7
20.7
361.9
240.6
121.4
24.5
58.2
38.6
215.4
90.9
124.5
25.6
98.9
1,891.0
568.2
1.1
567.1
733.5
77.2
400.2
256.2
280.8
55.9

2,489.0
592.3
380.9
20.8
360.1
238.2
121.8
25.3
59.0
37.5
211.5
83.8
127.7
25.8
101.9
1,896.6
567.5
1.1
566.4
747.8
85.5
404.1
258.2
277.1
51.9

2,491.4
599.3
382.0
20.9
361.1
239.8
121.3
25.4
58.3
37.7
217.3
90.5
126.8
25.6
101.2
1,892.1
566.1
1.2
565.0
744.5
84.9
402.6
257.1
276.2
48.4

2,477.2
590.8
381.4
19.8
361.6
239.5
122.1
25.1
59.3
37.6
209.5
82.8
126.7
25.6
101.1
1,886.3
563.2
1.1
562.1
749.3
85.3
406.3
257.7
276.1
46.9

2,483.2
589.4
380.6
22.0
358.6
236.1
122.4
25.6
59.4
37.4
208.8
81.9
126.9
25.5
101.4
1,893.8
568.6
1.1
567.5
748.1
85.9
404.0
258.3
276.7
51.3

2,494.8
593.6
380.2
20.4
359.8
237.5
122.3
25.5
59.3
37.4
213.4
84.5
128.9
25.6
103.3
1,901.2
568.8
1.1
567.7
746.6
85.6
402.1
258.9
277.9
58.1

65.5
16.7
11.4
9.0

49.8
16.7
11.3
8.7

51.2
17.2
11.3
8.6

54.1
18.9
11.3
8.7

45.3
17.4
11.6
8.8

41.8
16.6
11.9
9.0

38.8
17.1
12.0
9.0

35.1
16.8
12.0
9.0

31.4
17.0
12.1
9.0

30.3
16.6
12.1
9.0

33.4
17.9
12.0
9.0

42.0
16.1
11.9
9.0

13.4
Klff
100.8
119.7r

11.8
90.4
118.1
135.8

10.7
92.6
119.2
143.4

15.5
97.5
120.2
145.1

4.2
103.6
121.3
137.5

7.7
97.9
122.5
129.4

97.1
123.4
130.3

9.7
95.0
126.5
141.3

10.9
95.5
129.3
139.0

10.3
93.9
125.6
137.2

10.0
93.0
124.9
141.1

7.3
95.2
126.3
146.0

74.2
45.4
145.1
226.7

83.8
52.0
154.2
239.1

87.2
56.3
151.5
239.6

86.3
58.8
152.0
246.0

85.9
51.5
144.7
240.7

80.9
48.4
136.4
237.5

81.3
49.0
148.6
240.6

86.8
54.5
154.8
241.2

85.2
53.8
143.0
241.5

83.3
53.9
170.4
244.7

86.2
55.0
155.9
238.6

91.6
54.4
149.6
241.2

2,927.5

2,932.5

2,900.7

2,931.8

2,924.4

2,969.8

2,987.8

2,976.3

2^91.0

2,980-5

2,993.2

l,673.7r
369.7r
UOW/
228.9r
l,075.1r
600.5
201.7
398.7
110.9
209.0

1,706.1
368.6
1,337.5
226.9
1,110.6
628.3
209.4
418.9
109.0
176.3

1,680.3
349.1
1,331.2
224.8
1,106.3
641.4
216.7
424.7
121.7
180.0

1,688.8
353.7
1,335.1
224.4
1,110.7
645.8
220.3
425.5
137.1
182.0

1,681.7
344.6
1,337.1
224.6
1,112.6
630.4
213.7
416.7
135.7
179.4

1,670.0
328.5
1,341.6
225.2
1,116.4
621.6
212.6
409.0
144.0
184.4

1,681.9
335.3
1,346.6
232.2
1,114.3
647.5
217.0
430.5
146.4
190.3

1,684.3
329.5
1,354.8
244.6
1,110.2
656.9
232.7
424.2
161.8
190.5

1,694.6
324.9
1,369.6
244.7
1,124.9
644.6
233.0
411.5
153.2
185.2

1,703.4
340.9
1,362.5
244.1
1,118.4
645.6
229.3
416.4
158.7
184.4

1,671.4
325.4
1,346.0
243.3
1,102.7
662.1
228.5
433.6
164.7
191.5

1,664.3
328.2
1,336.1
243.5
1,092.6
667.3
234.1
433.1
168.8
202.4

2£94.0 r

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

2,436.7
556.8
385.8
25.2
360.5
242.5
118.0
25.0
54.2
38.9
171.0
72.8
98.2
24.7
73.5
1,879.9
558.9
1.1
557.8
716.1
73.7
390.7
251.7
298.2
66.5

2,883.8r

82 Total assets 6

2,430.7r
582.0r
378.1r
21.9
356. l r
259.4r
96.7r
26.9
38.3r
31.5
204.0
112.7
91.3
24.0
67.4
l,848.6r
532.5r
1.3
531.1
710.5r
74.8
395.3r
240.4r
3Q0&
82.2

2,619.7

2,623.4

2,653.7

2,6272

2,620.1

2,666.0

2,693.6

2,677.6

2,692.2

2,689.7

2,702.7

289.9r

307.8

309.1

307.0

304.6

304.3

303.7

294.2

298.8

298.9

290.8

290.5

82.2

55.0

57.3

57.7

60.5

64.7

73.0

62.9

71.6

61.2

60.9

63.6

83.6
284.5r
193.0r

56.4
270.8
180.7

59.6
266.8
177.9

60.5
264.4
176.8

62.8
269.9
183.6

69.1
274.3
187.3

73.1
276.9
186.3

62.2
273.8
184.0

70.5
275.5
185.8

60.2
275.1
185.0

59.7
271.7
182.2

63.1
273.0
183.6

91.5r

90.1

88.8

87.6

86.3

87.1

90.7

89.7

89.7

90.1

89.5

89.4

4.4
38.5

.9
37.9

.6
37.7

.0
37.0

-3.3
36.3

-4.2
32.2

-4.9
27.8

-5.6
26.7

-5.4
27.6

-5.7
27.6

-5.7
27.1

-5.4
25.8

1.
10

MEMO

95 Revaluation gains on off-balancesheet items 8
96 Revaluation losses on off-balancesheet items 8
97 Mortgage-backed securities9
98
Pass-through securities
99
CMOs, REMICs, and other
mortgage-backed securities . .
100 Net unrealized gains (losses) on
available-for-sale securities 10 . . .
101 Offshore credit to U.S. residents" . . .
Footnotes appear on p. A21.




Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A19

Assets and Liabilities1—Continued

D. Small domestically chartered commercial banks
Billions of dollars
Wednesday figures

Monthly averages
1999r

1998

Account

Oct.''

Apr.

May

June

July

1999
Aug.

Sept.

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Seasonally adjusted

Assets
1 Bank credit
7
Securities in bank credit
U.S. government securities
4
Other securities
Loans and leases in bank credit2
6
Commercial and industrial
7
Real estate
Revolving home equity
8
9
Other
in
Consumer
ii
Security3
Other loans and leases
l?
n Interbank loans
14 Cash assets4
15 Other assets5

1,442.5
415.7
315.6
100.0
1,026.8
188.4
569.0
28.2
540.8
192.1
6.1
71.1
70.3
66.2
61.7

1,529.3
444.1
332.6
111.5
1,085.2
199.6
612.0
28.8
583.2
198.9
5.5
69.1
60.3
67.8
72.6

1,540.7
448.1
334.9
113.2
1,092.6
202.5
618.0
29.2
588.8
198.2
5.2
68.7
57.6
70.9
74.0

1,556.7
455.7
340.4
115.2
1,101.0
205.4
624.8
29.5
595.2
198.5
5.2
67.2
55.3
71.4
74.6

1.571.3
459.6
343.8
115.8
1.111.7
208.2
632.2
29.8
602.4
197.8
5.3
68.2
56.9
72.6
78.1

1,585.3
461.8
344.0
117.8
1,123.5
210.0
640.4
29.8
610.6
199.2
5.3
68.7
54.6
72.3
80.5

1,599.5
463.5
345.6
117.8
1,136.0
212.8
645.9
29.8
616.1
202.1
5.3
69.9
52.2
73.1
80.7

1,620.8
465.6
346.2
119.4
1,155.2
218.6
657.5
30.3
627.2
203.7
5.3
70.1
49.7
72.9
84.9

1,618.7
467.4
348.6
118.8
1,151.3
217.6
654.8
30.2
624.6
203.6
5.3
69.9
49.0
70.3
83.4

1,619.5
466.7
347.7
119.1
1,152.8
218.1
656.2
30.4
625.8
203.6
5.2
69.7
48.7
73.8
83.8

1,621.1
465.7
345.7
120.0
1,155.5
218.5
657.5
30.2
627.3
204.2
5.2
70.2
48.5
71.7
87.7

1,623.2
464.8
345.1
119.7
1,158.4
219.0
659.5
30.2
629.3
204.3
5.2
70.3
50.5
75.3
85.1

16 Total assets 6

1,621.4

1,710.2

1,7233

1,738.0

1,759.1

1,772.6

1,7853

1,807.9

1,801.0

1,8053

1,808.5

1,813.5

1,294.3
280.9
1,013.3
188.2
825.1
167.0
79.4
87.6
4.7
28.6

1,364.6
282.0
1,082.6
196.5
886.1
185.7
83.7
102.0
4.9
30.4

1,369.8
283.6
1,086.2
199.6
886.6
191.5
87.3
104.2
5.0
31.1

1,376.6
287.5
1,089.1
198.2
890.9
196.1
91.2
104.9
4.1
32.1

1,388.5
287.0
1,101.5
196.2
905.3
206.9
97.2
109.8
4.3
31.3

1,396.3
288.4
1,107.9
199.1
908.8
208.6
95.8
112.8
3.5
33.1

1,399.0
285.7
1,113.3
200.8
912.4
214.0
96.1
117.9
3.4
34.2

1,416.9
285.7
1,131.3
205.3
926.0
214.4
92.7
121.6
4.3
34.4

1,410.6
279.1
1,131.6
204.1
927.4
213.9
93.0
120.9
4.2
34.7

1,415.2
283.6
1,131.7
204.6
927.0
215.0
93.2
121.8
4.6
34.3

1,413.6
285.4
1,128.2
204.9
923.3
217.6
94.7
123.0
4.1
34.2

1,422.7
295.8
1,127.0
205.6
921.4
212.4
90.9
121.5
4.5
34.9

1,494.4

1,585.6

1,597.5

1,608.9

1,631.1

1,641.4

1,650.6

1,670.0

1,6633

1,669.1

1,669.5

1,674.4

128.1

131.2

134.7

137.9

137.6

136.2

139.0

139.0

17
18
19
70
71
77
73
74
75
26

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

27 Total liabilities
28 Residual (assets less liabilities)

7

126.9

124.6

125.8

129.0

Not seasonally adjusted

Assets
99 Bank credit
Securities in bank credit
31
U.S. government securities
37
Other securities
33
Loans and leases in bank credit2
34
Commercial and industrial
35
Real estate
Revolving home equity
36
37
Other
38
Consumer
39
Security 3
40
Other loans and leases
41 Interbank loans
47 Cash assets 4
43 Other assets5

1,441.6
412.8
312.9
99.9
1,028.8
187.1
570.5
28.4
542.0
192.7
6.1
72.4
71.8
65.5
61.9

1,534.4
449.0
336.8
112.2
1,085.4
201.7
611.8
28.7
583.1
197.8
5.5
68.5
61.2
67.8
73.0

1,550.8
453.5
339.4
114.0
1,097.3
205.2
620.4
29.1
591.2
197.9
5.2
68.7
53.3
70.5
74.0

1,563.8
457.5
342.3
115.2
1,106.3
207.3
627.6
29.4
598.2
197.7
5.2
68.5
52.2
70.3
76.2

1,572.6
457.9
342.2
115.6
1,114.7
208.0
634.3
29.5
604.8
197.3
5.3
69.8
52.8
70.7
79.3

1,587.5
460.2
342.2
118.0
1,127.3
208.7
642.5
29.7
612.8
199.7
5.3
71.0
52.0
69.1
81.2

1,602.7
461.1
343.8
117.3
1,141.6
211.7
649.3
30.0
619.3
203.2
5.3
72.1
51.1
71.8
81.1

1,619.6
462.5
343.3
119.2
1,157.1
217.2
658.9
30.5
628.5
204.3
5.3
71.4
50.8
72.1
85.0

1,615.9
463.3
345.0
118.3
1,152.6
216.0
656.0
30.4
625.6
203.6
5.3
71.7
51.2
69.3
84.8

1,619.0
463.8
345.0
118.8
1,155.2
216.6
658.0
30.6
627.4
204.0
5.2
71.4
49.6
77.2
85.5

1,620.4
462.6
342.8
119.8
1,157.8
217.2
658.9
30.4
628.5
205.2
5.2
71.4
48.6
69.7
85.7

1,622.8
462.4
342.6
119.9
1,160.4
217.4
661.1
30.5
630.6
205.5
5.2
71.1
49.0
70.9
82.9

44 Total assets 6

1,621.5

1,716.6

1,728.7

1,742.5

1,755.7

1,769.7

1,786.4

1,807.0

1,800.7

1,810.7

1,803.8

1,805.1

1,296.9
277.9
1,019.0
188.2
830.7
169.4
81.1
88.3
4.7
27.8

1,369.8
285.7
1,084.1
196.5
887.6
183.1
82.0
101.1
4.9
31.1

1,372.4
281.2
1,091.2
199.6
891.6
191.9
87.1
104.8
5.0
31.3

1,380.0
286.5
1,093.5
198.2
895.3
197.3
91.4
105.9
4.1
31.9

1,386.0
283.1
1,102.9
196.2
906.6
206.7
96.3
110.4
4.3
31.4

1,394.9
281.5
1,113.4
199.1
914.3
208.6
95.1
113.5
3.5
32.9

1,402.1
282.8
1,119.3
200.8
918.4
216.6
96.6
120.0
3.4
33.5

1,420.8
282.6
1,138.2
205.3
932.9
217.3
94.7
122.6
4.3
33.5

1,417.6
279.7
1,137.9
204.1
933.7
213.7
93.3
120.3
4.2
33.6

1,425.0
285.1
1,139.9
204.6
935.3
216.3
94.3
121.9
4.6
33.5

1,414.4
279.9
1,134.5
204.9
929.6
221.5
97.2
124.3
4.1
33.4

1,415.9
284.2
1,131.7
205.6
926.1
218.6
94.5
124.1
4.5
34.0

1,498.7

1,588.9

1,600.6

1,613.3

1,6283

1,639.8

1,655.6

1,675.9

1,669.0

1,6793

1,6733

1,673.0

122.7

127.7

128.0

129.3

127.3

129.9

130.8

131.1

131.7

131.4

130.4

132.1

51.4

64.9

68.7

69.9

70.4

70.1

70.6

72.8

73.3

73.3

72.6

72.5

45
46
47
48
49
50
51
57
53
54

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

55 Total liabilities
56 Residual (assets less liabilities)7
MEMO

57 Mortgage-backed securities 9
Footnotes appear on p. A21.




A20
1.26

Domestic Financial Statistics • January 2000
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities1—Continued

E. Foreign-related institutions
Billions of dollars

Monthly averages

Account

1998

Oct.

Wednesday figures

1999
Apr.

May

June

July"

1999
Aug."

Sept."

Oct.

Oct. 6

Oct. 13

Oct. 20

Oct. 27

Seasonally adjusted

1
2
3
4
5
6
7
8
9
10
11
12

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2 . . .
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5

14
15
16
17
18
19
20
21

520.5
189.6
85.9
103.7
330.9
192.7
18.4
52.6
67.2
27.4
35.0
32.1

523.6
189.9
84.0
105.9
333.7
195.5
17.6
54.9
65.8
25.7
38.0
29.0

518.6
189.1
81.6
107.5
329.4
197.2
17.6
51.3
63.4
22.9
40.8
29.3

517.8
186.6
79.8
106.9
331.2
199.0
17.8
51.6
62.8
22.9
44.1
31.8

518.8
189.0
81.8
107.2
329.8
198.3
18.0
50.7
62.8
21.8
43.9
30.0

515.8
186.3
79.7
106.6
329.5
198.9
17.8
50.4
62.4
21.2
42.3
32.1

516.9
185.4
78.3
107.1
331.5
200.1
17.8
51.1
62.6
21.4
43.6
32.1

519.5
187.8
80.6
107.3
331.7
198.9
17.8
52.0
63.0
26.2
44.6
32.3

6473 r

638.0"

623.6 r

614.8

616.1

6113

616.4

6143

611.1

613.7

622.4

311.9
10.1
301.8
172.1
21.0
151.1
94.8
67.2

310.4
10.5
299.9
172.7
21.4
151.3
85.2
59.9

305.7
10.9
294.8
180.9
26.6
154.4
69.4
61.4

310.5
10.9
299.5
172.3
24.5
147.8
67.3
63.4

309.2
11.0
298.2
172.1
23.6
148.6
72.0
61.7

311.1
10.9
300.3
168.9
25.3
143.7
66.1
64.5

331.3
11.5
319.8
169.6
22.8
146.8
54.4
62.8

319.5
11.4
308.2
166.8
23.4
143.4
66.7
62.8

328.8
11.6
317.3
168.0
19.9
148.1
52.3
62.5

333.3
11.9
321.4
169.7
22.7
147.1
51.0
62.3

336.0
11.4
324.6
170.2
22.5
147.7
50.3
63.8

645.9

6283

6173

6133

615.0

610.7

618.2

615.8

611.6

616.4

620.4

1.7r

23 Residual (assets less liabilities) 7

532.4"
196.0"
88.4"
107.6
336.4"
196.7"
19.2
52.0"
68.5"
24.5
33.5
33.4

716.5

22 Total liabilities

539.8r
196.(7
87.2r
108.7
343.9"
201.9"
19.8
53.3"
68.8"
26.6
35.9
35.9

316.1
15.4
300.7
215.8
30.8
185.0
105.7
79.0

Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

550. r
200.4r
89.5r
110.9
349.7
209.3r
20.0"
51.9r
68.6r
25.4
34.6
37.5

7183r

13 Total assets 6

619.0r
218.8r
81.2r
137.5
400.2r
223.1r
23.5
70.1
83.4r
25.6
35.5
38.5

1.4r

1.3

1.1

.6

-1.8

-1.4

-.5

-2.6

2.0

9.7"

6.1"

Not seasonally adjusted

24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit 2 . . .
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5

41
42
43
44
45
46
47
48

Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

....

49 Total liabilities
50 Residual (assets less liabilities) 7

547.2r
198.8r
89.2r
22.91"
66.3r
109.6
66.5
43.1
348.4
207.8r
19.7
51.9"
69.0"
25.4
33.5
35.7

534.6"
194.3"
88.0"
20.0"
68.0"
106.3
64.8
41.4
340.3"
199.3"
19.6
53.0"
68.5"
26.6
35.6
35.2

529.3"
195.1"
88.8"
21.6"
67.1"
106.3
63.3
43.0
334.2"
195.0"
19.0
52.2"
68.0"
24.5
34.3
32.4

517.3
188.0
85.4
19.9
65.5
102.5
60.9
41.7
329.3
191.9
18.2
52.2
67.0
27.4
34.9
31.4

519.9
188.7
83.0
17.3
65.7
105.6
65.2
40.5
331.2
193.8
17.5
55.0
65.0
25.7
37.7
29.6

517.7
188.5
80.7
15.6
65.1
107.8
70.0
37.8
329.2
196.8
17.6
51.4
63.3
22.9
40.6
29.7

521.8
189.3
79.7
14.8
64.9
109.6
71.8
37.8
332.4
200.1
18.0
51.4
63.0
22.9
44.7
31.7

520.7
189.1
80.6
15.1
65.5
108.4
70.7
37.7
331.7
199.6
18.2
50.8
63.2
21.8
43.9
30.0

519.3
189.0
79.3
14.5
64.8
109.7
72.3
37.5
330.3
199.3
18.0
50.4
62.6
21.2
42.7
32.2

520.4
187.7
78.4
14.1
64.3
109.2
70.9
38.4
332.7
200.8
17.9
50.8
63.2
21.4
44.4
31.9

523.7
191.7
81.0
16.8
64.3
110.6
73.0
37.7
332.0
200.1
17.9
51.0
63.0
26.2
45.7
31.8

122.1'

40 Total assets 6

623.2r
221.9r
81.2r
17.5r
63.7r
140.7
91.7
49.0
401.3
224. l r
23.8r
69.9r
83.6r
25.6
35.9
38.3

641.6 r

631.7 r

6203r

610.8

612.6

610.5

620.8

616.2

615.0

617.8

6Z7.1

316.5
15.3
301.2
215.8
30.8
185.0
107.9
78.3

311.3
9.9
301.4
172.1
21.0
151.1
89.2
66.1

312.8
10.3
302.5
172.7
21.4
151.3
83.4
59.4

306.4
10.7
295.7
180.9
26.6
154.4
68.1
61.0

308.0
10.8
297.2
172.3
24.5
147.8
64.8
62.5

306.6
10.9
295.7
172.1
23.6
148.6
69.8
61.8

310.7
11.4
299.3
168.9
25.3
143.7
64.5
64.1

331.4
11.5
319.9
169.6
22.8
146.8
56.2
62.2

320.5
11.3
309.2
166.8
23.4
143.4
65.0
61.8

328.0
11.6
316.5
168.0
19.9
148.1
54.7
61.7

332.5
11.9
320.6
169.7
22.7
147.1
52.3
61.5

337.3
11.4
325.9
170.2
22.5
147.7
55.5
63.7

718.5

638.7

628.2

616.4

607.6

610.4

6083

619.4

614.0

612.4

616.1

626.7

4.2r

2.9r

3.4r

3.2

2.2

2.2

1.4

2.2

2.7

1.7

.4

51.9

38.2

35.3

34.9

37.3

38.1

38.3

35.9

35.8

36.3

35.7

36.1

' 47.5

38.6

34.8

34.1

36.3

36.3

37.3

35.2

34.6

35.3

34.8

36.0

3.9"

MEMO

51 Revaluation gains on off-balance-sheet
items 8
52 Revaluation losses on off-balancesheet items 8
Footnotes appear on p. A21.




Commercial Banking Institutions—Assets and Liabilities

A21

NOTES TO TABLE 1.26
NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A 1 7 - 1 9 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank




group that contained the acquired bank and put into past data for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.

A22
1.32

DomesticNonfinancialStatistics • January 2000
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December

1999

Item
1994

1996

1997

1998

Apr.

May

June

July

Aug. r

Sept.

595,382

674,904

775,371

966,699

1,163,303

1,219,789

1,230,009

1,221,020

1,242,107

1,257,658

1,274,726

223,038
207,701

275,815
210,829

361,147
229,662

513,307
252,536

614,142
322,030

697,030
276,721

710,857
268,129

705,603
272,014

712,718
277,570

710,320
290,228

718,380
293,381

164,643

1 All issuers

1995

188,260

184,563

200,857

227,132

246,038

251,023

243,404

251,819

257,110

262,965

Financial companies 1
2
3

Dealer-placed paper, total 2
Directly placed paper, total 3

4 Nonfinancial companies

4

1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.

3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.

B. Bankers Dollar Acceptances 1
Millions of dollars, not seasonally adjusted, year ending September2
1995

1996

1997

1998

1 Total amount of reporting banks' acceptances in existence

29,242

25,832

25,774

14,363

2 Amount of other banks' eligible acceptances held by reporting banks
3 Amount of own eligible acceptances held by reporting banks (included in item 1)
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1)

1,249
10,516

709
7,770

736
6,862

523
4,884

11,373

9,361

10,467

5,413

Item

1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United
States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks;
that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal
Reserve Act (12 U.S.C. §372).

1.33

PRIME RATE CHARGED BY BANKS

2. Data on bankers dollar acceptances are gathered from approximately 65 institutions;
includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and
agencies of foreign banks, and Edge and agreement corporations. The reporting group is
revised every year.

Short-Term Business Loans'

Percent per year
Date of change
1996—Jan.
Feb.

Period

Rate

1
1

8.50
8.25

1997—Mar. 26

8.50

1998—Sept. 30
Oct. 16
Nov. 18

8.25
8.00
7.75

1999—July 1
Aug. 25
Nov. 17

8.00
8.25
8.50

Average
rate

1996
1997
1998

8.27
8.44
8.35

1996—Jan
Feb
Mar
Apr
Mav
June
July
Aug
Sept
Oct
Nov
Da.

8.50
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25

1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call




Period
1997—Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Ocl
Nov
Dec
1998—Jan
Feb
Mar
Apr

Average
rate
8.25
8.25
8.30
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50

Period

Average
rate

1998-—July
Aug
Sept
Oct
Nov
Dec

8.50
8.50
8.49
8.12
7.89
7.75

1999-—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct

7.75
7.75
7.75
7.75
7.75
7.75
8.00
8.06
8.25
8 25
8.37

Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415)
monthly statistical releases. For ordering address, see inside front cover.

Financial Markets
1.35

INTEREST RATES

A23

Money and Capital Markets

Percent per year; figures are averages of business day data unless otherwise noted
1999, week ending

1999
Item

1996

1997

1998
July

Aug.

Sept.

Oct.

Oct. 1

Oct. 8

Oct. 15

Oct. 22

Oct. 29

M O N E Y M A R K E T INSTRUMENTS

1 Federal funds 1 ' 2 ' 3
2 Discount window borrowing 2 ' 4

5.30
5.02

5.46
5.00

5.35
4.92

4.99
4.50

5.07
4.56

5.22
4.75

5.20
4.75

5.27
4.75

5.27
4.75

5.17
4.75

5.18
4.75

5.18
4.75

Commercial paper•3'5,6
Nonfinancial
3
1-month
4
2-month
3-month
5

n.a.
n.a.
n.a.

5.57
5.57
5.56

5.40
5.38
5.34

5.06
5.08
5.11

5.18
5.23
5.25

5.28
5.29
5.32

5.28
5.30
5.88

5.29
5.30
5.30

5.30
5.30
5.90

5.28
5.31
5.87

5.27
5.30
5.96

5.27
5.30
5.90

n.a.
n.a.
n.a.

5.59
5.59
5.60

5.42
5.40
5.37

5.08
5.10
5.14

5.20
5.24
5.28

5.29
5.31
5.32

5.29
5.32
5.93

5.31
5.32
5.32

5.31
5.33
5.93

5.30
5.32
5.95

5.28
5.31
5.99

5.28
5.31
5.97

5.43
5.41
5.42

5.54
5.58
5.62

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

7
8

Financial
1-month
2-month
3-month
3,5,7

9
10
11

Commercial paper (historical)
1-month
3-month
6-month

12
1.3
14

Finance paper, directly placed (historical)3,5,8
1-month
3-month
6-month

5.31
5.29
5.21

5.44
5.48
5.48

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

15
16

Bankers acceptances3,5,9
3-month
6-month

5.31
5.31

5.54
5.57

5.39
5.30

5.16
5.42

5.30
5.64

5.37
5.75

6.02
5.89

5.50
5.77

6.00
5.82

6.00
5.90

6.01
5.90

6.06
5.95

17
18
19

Certificates of deposit, secondary
1-month
3-month
6-month

5.35
5.39
5.47

5.54
5.62
5.73

5.49
5.47
5.44

5.13
5.24
5.58

5.25
5.41
5.83

5.34
5.50
5.89

5.36
6.13
6.04

5.35
5.79
5.90

5.37
6.10
6.00

5.36
6.13
6.05

5.36
6.15
6.09

5.36
6.14
6.07

5.38

5.61

5.45

5.21

5.36

5.48

6.09

5.74

6.06

6.09

6.14

6.12

5.01
5.08
5.22

5.06
5.18
5.32

4.78
4.83
4.80

4.55
4.58
4.75

4.72
4.87
4.91

4.68
4.88
4.96

4.86
4.98
5.12

4.71
4.79
4.94

4.69
4.88
5.03

4.84
4.94
5.11

4.97
5.03
5.16

4.96
5.10
5.20

5.02
5.09
5.23

5.07
5.18
5.36

4.81
4.85
4.85

4.60
4.62
4.71

4.76
4.88
4.95

4.73
4.91
5.00

4.88
4.98
5.12

4.72
4.81
n.a.

4.73
4.87
n.a.

4.78
4.93
5.12

4.99
5.00
n.a.

5.00
5.12
n.a.

5.52
5.84
5.99
6.18
6.34
6.44
6.83
6.71

5.63
5.99
6.10
6.22
6.33
6.35
6.69
6.61

5.05
5.13
5.14
5.15
5.28
5.26
5.72
5.58

5.03
5.55
5.62
5.68
5.94
5.79
6.28
5.98

5.20
5.68
5.77
5.84
6.15
5.94
6.43
6.07

5.25
5.66
5.75
5.80
6.12
5.92
6.50
6.07

5.43
5.86
5.94
6.03
6.33
6.11
6.66
6.26

5.24
5.66
5.73
5.81
6.12
5.92
6.50
6.09

5.34
5.78
5.87
5.95
6.24
6.02
6.58
6.17

5.42
5.85
5.92
6.03
6.35
6.11
6.68
6.28

5.47
5.92
5.99
6.09
6.40
6.18
6.74
6.34

5.51
5.92
6.01
6.09
6.36
6.16
6.68
6.30

6.80

6.67

5.69

6.22

6.37

6.43

6.60

6.43

6.51

6.61

6.67

6.61

5.52
5.79
5.76

5.32
5.50
5.52

4.93
5.14
5.09

5.24
5.64
5.36

5.47
5.93
5.58

5.56
6.06
5.69

5.78
6.23
5.92

5.56
6.10
5.73

5.69
6.15
5.80

5.75
6.20
5.89

5.82
6.26
5.98

5.85
6.31
5.99

7.66

7.54

6.87

7.57

7.77

7.78

7.93

7.79

7.84

7.95

8.00

7.95

7.37
7.55
7.69
8.05

7.27
7.48
7.54
7.87

6.53
6.80
6.93
7.22

7.19
7.48
7.65
7.95

7.40
7.68
7.84
8.15

7.39
7.68
7.84
8.20

7.55
7.79
7.99
8.38

7.39
7.67
7.85
8.24

7.47
7.71
7.91
8.28

7.59
7.80
8.01
8.40

7.64
7.85
8.06
8.44

7.55
7.83
8.01
8.42

2.19

1.77

1.49

1.20

1.25

1.27

1.28

1.31

1.26

1.29

1.29

1.29

market3,10

20 Eurodollar deposits, 3-month 3,11

74
75
26

U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction high ' '
3-month
6-month
1-year

?7
?R
?9
30
31
3?.
33
34

Constant maturities13
1-year
2-year
3-year
5-year
1-year
10-year
20-year
30-year

?L

??
23

U . S . TREASURY N O T E S AND B O N D S

Composite
35 More than 10 years (long-term)
S T A T E AND L O C A L N O T E S AND B O N D S

series'4
36
37 Baa
38 Bond Buyer series 15
Moody's

CORPORATE BONDS

39 Seasoned issues, all industries 16
Rating group
40
41 Aa
4? A
43 Baa
MEMO

Dividend-price ratio17
44 Common stocks

1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages
(http://www.federalreserve.gov/releases/cp) for more information.
7. An average of offering rates on commercial paper for firms whose bond rating is AA or
the equivalent. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies. Series
ended August 29, 1997.
9. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.




11. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
A1 rating. Based on Thursday figures.
16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and
G. 13 (415) monthly statistical releases. For ordering address, see inside front cover.

A24
1.36

DomesticNonfinancialStatistics • January 2000
STOCK MARKET

Selected Statistics
1999

Indicator

1997

1996

1998
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Prices and trading volume (averages of daily figures)1
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
5
Finance

357.98
453.57
327.30
126.36
303.94

456.99
574.97
415.08
143.87
424.84

550.65
684.35
468.61
190.52
516.65

588.70
736.20
477.47
218.24
514.75

603.69
751.93
491.25
218.11
544.08

627.75
780.84
523.08
228.48
564.99

635.62
791.72
537.88
242.98
562.66

629.53
783.96
520.66
241.36
546.43

648.83
809.33
528.72
250.50
557.92

621.03
778.82
492.13
241.84
521.59

607.87
769.47
462.33
237.71
493.37

599.04
753.94
450.13
285.16
490.92

6 Standard & Poor's Corporation
(1941-43 = 10)2

670.49

873.43

1,085.50

1,246.58

1,281.66

1,334.76

1,332.07

1,322.55

1,380.99

1,327.49

1,318.17

1,300.01

7 American Stock Exchange
(Aug. 31, 1973 = 50) 3

570.86

628.34

682.69

699.15

711.08

748.29

787.02

772.01

803.75

781.33

788.74

786.96

409,740
22,567

523,254
24,390

666,534
28,870

756,932
31,774

776,538
29,563

874,818
38,895

785,778
35,241

723,025
28,806

721,294
25,754

709,569
27,795

772,627
32,540

882,422
35,762

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 4

97,400

126,090

140,980

151,530

156,440

172,880

177,984

176,930

178,360

176,390

179,316

182,272

Free credit balances at brokerss
11 Margin accounts 6
12 Cash accounts

22,540
40,430

31,410
52,160

40,250
62,450

38,850
57,910

40,120
59,435

41,200
60,870

41,250
61,665

42,865
64,100

44,330
60,000

44,230
62,600

47,125
62,810

51,040
61,085

Margin requirements (percent of market value and effective date) 7
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. Daily data on prices are available upon request to the Board of Governors. For ordering
address, see inside front cover.
2. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
5. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.




Jan. 3, 1974
50
50
50

6. Series initiated in June 1984.
7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization; such maintenance margin rules
must be approved by the Securities and Exchange Commission.

Federal Finance
1.38

A25

FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year

Fiscal year
Type of account or operation

1999
1997

1998

1999
May

June

July

Aug.

Sept.

Oct.

1

US. budget
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus or deficit (—), total
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (—))
12 Other 2

1,579,292
1,187,302
391,990
1,601,235
1,290,609
310,626
-21,943
-103,307
81,364

1,721,798
1,305,999
415,799
1,652,552
1,335,948
316,604
69,246
-29,949
99,195

1,827,285
1,382,817
444,468
1,703,639
1,382,861
320,778
123,646
-45
123,691

98,663
62,722
35,941
122,631
91,434
31,197
-23,969
-28,712
4,744

199,507
156,929
42,578
145,939
136,141
9,799
53,568
20,788
32,779

121,923
87,959
33,964
147,086
117,652
29,434
-25,164
-29,693
4,530

126,324
91,554
34,770
129,127
97,984
31,143
-2,803
-6,430
3,627

200,396
161,304
39,092
143,059
108,846
35,119
57,336
52,458
3,973

121,035
89,009
32,026
147,701
119,506
28,196
-26,667
-30,497
3,830

38,171
604
-16,832

-51,211
4,743
-22,778

-88,304
-17,580
-17,762

-551
32,495
-7,975

-22,246
-27,459
-3,863

1,193
13,553
10,418

26,470
3,160
-26,827

-47,718
-20,069
10,451

5,754
8,891
12,022

43,621
7,692
35,930

38,878
4,952
33,926

56,458
6,641
49,817

25,643
5,506
20,586

53,102
6,720
46,382

39,549
4,984
34,565

36,389
5,559
30,831

56,458
6,641
49,817

47,567
4,527
43,040

MEMO

13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts

1. Since 1990, off-budget items have been the social security trust funds (federal old-age
survivors insurance and federal disability insurance) and the U.S. Postal Service.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets;
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;




net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government.

A26
1.39

DomesticNonfinancialStatistics • January 2000
U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Fiscal year

Calendar year

Source or type

1997
1998

1998

1999

1999

1999
H2

HI

H2

HI

Aug.

Sept.

Oct.

RECEIPTS
1 All sources

1,721,798

2 Individual income taxes, net
3
Withheld
4
Nonwithheld
5
Refunds
Corporation income taxes
Gross receipts
6
7
Refunds
8 Social insurance taxes and contributions, net . . .
y
Employment taxes and contributions 2
10
Unemployment insurance
ii
Other net receipts 3
12
13
14
15

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 4

1,827,285

773,810

922,630

825,057

966,045

126,324

200,396

121,035

828,586
646,483
281,527
99,476

879,480
693,940
308,185
122,706

354,072
306,865
58,069
10,869

447,514
316,309
219,136
87,989

392,332
339,144
65,204
12,032

481,527
351,068
240,278
109,467

60,709
57,476
5,163
1,921

89,250
49,244
43,077
3,072

63,505
57,596
7,129
1,221

213,249
24,593
571,831
540,014
27,484
4,333

216,325
31,645
611,832
580,880
26,480
4,472

104,659
10,135
260,795
247,794
10,724
2,280

109,353
14,220
312,713
293,520
17,080
2,112

104,163
14,250
268,466
256,142
10,121
2,202

106,861
17,092
324,831
306,235
16,378
2,216

5,115
1,418
49,389
44,960
4,085
344

42,571
2,336
55,481
54,794
332
356

7,175
4,995
43,879
42,412
1,049
418

57,673
18,297
24,076
32,658

70,399
18,336
27,782
34,777

31,133
9,679
10,262
13,348

29,922
8,546
12,971
15,829

33,366
9,838
12,359
18,735

31,015
8,440
14,915
15,140

5,397
1,814
2,175
3,131

7,167
1,727
2,294
4,242

4,181
1,788
2,554
2,948

OUTLAYS
l,703,639 r

824,368

815,884

877,414

817,235

129,127

143,059 r

147,701

17
18
19
20
21
22

National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture

268,456
13,109
18,219
1,270
22,396
12,206

276,792
15,264
19,397
981
22,303
24,359

140,873
9,420
10,040
411
11,106
10,590

129,351
4,610
9,426
957
10,051
2,387

140,196
8,297
10,142
699
12,671
16,757

134,414
6,879
9,319
797
10,351
9,803

20,867
530
1,681
26
1,961
726

24,279
l,382 r
1,773
375
2,246 r
1,15 0 r

24,036
1,000
1,524
-311
1,528
6,759

23
24
25
26

Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services

1,014
40,332
9,720

2,966
38,856
12,791

-3,526
20,414
5,749

-2,483
16,196
4,863

4,046
20,836
6,972

-1,629
17,082
5,368

-1,097
3,838
879

6,509 r
4,260
1,330

1,698
3,750
1,627

16 All types

1,652,552

54,919

57.438

26,851

25,928

27,762

29,003

4,363

5,437

5,175

27 Health
28 Social security and Medicare
29 Income security

131,440
572,047
233,202

140,803
580,491
237,180

63,552
283,109
106,353

65,053
286,305
125,196

67,838
316,809
109,481

69,320
261,146
126,552

11,959
45,607
16,505

13,031
48,681
16,897

12,229
48,179
17,607

30
31
32
33
34

41,781
22,832
13,444
243,359
-47,194

43,210
25,837
16,058
230,265
-40,445

22,077
10,212
7,302
122,620
-22,795

19,615
11,287
6,139
122,345
-21,340

22,750
12,041
9,136
116,954
-25,793

20,105
13,149
6,650
116,655
-17,724

1,895
2,349
200
19,931
-3,095

3,615
2,306
l,696 r
15,259
-7,164

3,657
2,127
1,117
18,894
-2,896

Veterans benefits and services
Administration of justice
General government
Net interest 5
Undistributed offsetting receipts 6

1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do not correspond to calendar year data because revisions from the Budget have not
been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Federal employee retirement contributions and civil service retirement and
disability fund.




4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S.
Government, Fiscal Year 2000\ monthly and half-year totals: U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government.

Federal Finance A25
1.40

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1997

1999

1998

Item
Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

5,446

5,536

5,573

5,578

5,556

5,643

5,681

5,668

5,685 r

i Public debt securities
3
Held by public
4
Held by agencies

5,413
3,815
1,599

5,502
3,847
1,656

5,542
3,872
1,670

5,548
3,790
1,758

5,526
3,761
1,766

5,614
3,787
1,827

5,652
3,795
1,857

5,639
3,685
1,954

5,656
n.a.
n.a.

33
26
7

34
27
7

31
26
5

30
26
4

29
26
4

29
29
1

29
28
1

29
28
1

29 r
n.a.
n.a.

5,328

5,417

5,457

5,460

5,440

5,530

5,566

5,552

5,568

5,328
0

5,416
0

5,456
0

5,460
0

5,439
0

5,530
0

5,566
0

5,552
0

5,568
0

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt 1
MEMO

11 Statutory debt limit

1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.

Types and Ownership

Billions of dollars, end of period
1998
Type and holder

1995

1996

1997

1999

1998
Q4

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
15

By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds'
Nonmarketable 2
State and local government series
Foreign issues"
Government
Public
Savings bonds and notes
Government account series 4
Non-interest-bearing

By holder 5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks
18 Private investors
19
Depository institutions
20
Mutual funds
Insurance companies
21
22
State and local treasuries 6
Individuals
23
Savings bonds
24
Pension funds
25
Private
26
State and Local
27
Foreign and international 7
28
Other miscellaneous investors 6 ' 8

Q2

Q3

4,988.7

5,323.2

5,502.4

5,614.2

5,614.2

5,651.6

5,638.8

5,656.3

4,964.4
3,307.2
760.7
2,010.3
521.2
n.a.
1,657.2
104.5
40.8
40.8
.0
181.9
1,299.6
24.3

5,317.2
3,459.7
777.4
2,112.3
555.0
n.a.
1,857.5
101.3
37.4
47.4
.0
182.4
1,505.9
6.0

5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5

5,605.4
3,355.5
691.0
1,960.7
621.2
50.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8

5,605.4
3,355.5
691.0
1,960.7
621.2
50.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8

5,643.1
3,361.3
725.5
1,912.0
632.5
59.2
2,281.8
167.5
33.5
33.5
.0
180.6
1,870.2
8.5

5,629.5
3,248.5
647.8
1,868.5
632.5
59.9
2,381.0
172.6
30.9
30.9
.0
180.0
1,967.5
9.3

5,647.2
3,233.0
653.2
1,82 8.8
643.7
67.6
2,414.2
168.1
31.0
31.0 r
.0
180.0
2,005.2
9.0

1,304.5
391.0
3,307.7
315.4
286.5
241.5
289.8

1,497.2
410.9
3,431.2
296.6
315.8
214.1
257.0

1,655.7
451.9
3,414.6
300.3
321.3
176.6
239.3

1,826.8
471.7
3,334.0
237.4
339.5
144.6
269.3

1,826.8
471.7
3,334.0
237.4
339.5
144.6
269.3

1,857.1
464.5
3,327.6
247.6
341.3
137.7
266.6

1,953.6
493.8
3,199.3
n.a.
n.a.
n.a.
n.a.

185.0
474.5
298.7
175.8
835.2
679.7

187.0
505.1
314.6
190.5
1,102.1
553.5

186.5
539.1
334.3
204.8
1,241.6
409.9

186.7
547.0
345.4
201.6
1,278.7
330.8

186.7
547.0
345.4
201.6
1,278.7
330.8

186.6
544.9
347.3
197.6
1,270.8
332.1

186.6
n.a.
n.a.
n.a.
1,257.3
n.a.

1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.




Ql

n.a.

7. Includes nonmarketable foreign series treasury securities and treasury deposit funds.
Excludes treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.

A28
1.42

DomesticNonfinancialStatistics • January 2000
U.S. GOVERNMENT SECURITIES DEALERS

Transactions1

Millions of dollars, daily averages
1999

1999, week ending

item
July

Aug.

Sept.

24,009

26,323

93,047
53,586
1,372

99,186
68,592
826

43,320
652

Sept. 1

Sept. 8

Sept. 15

27,445

38,241

27,843

82,426
54,516
586

95,890
60,198
1,006

81,430
49,912
475

45,889

46,570

48,585

777

1,018

818

4,592
4,278
69,129

5,126
4,832
66,417

5,858
4,593
64,305

93,223
3,677
25,013

105,210
4,070
25,261

78,790
49,164
44,117

Sept. 22

Sept. 29

Oct. 6

Oct. 13

32,118

23,234

24,693

26,101

23,011

24,314

22,047

77,284
59,754
462

68,958
44,882
347

95,035
62,209
629

103,945
55,369
2,314

86,924
53,537
562

82,519
61,196
1,499

90,643
55,937
506

46,278

47,150

43,798

47,373

52,951

46,227

42,441

42,844

964

987

898

1,279

939

968

849

790

6,068
5,361
52,887

4,235
2,843
79,337

4,681
7,416
93,477

5,336
4,031
41,392

9,346
4,149
44,491

4,810
3,479
68,329

9,770
3,856
102,275

5,901
3,737
46,148

4,641
3,006
44,349

88,466
4,534
23,835

103,077
3,407
23,534

85,541
3,470
23,324

90,150
4,800
34,704

72,030
5,686
17,418

100,747
4,507
20,472

100,831
4,023
21,249

85,585
5,426
30,508

92,226
5,662
18,721

93,708
4,720
17,042

89,717
52,553
41,156

76,506
53,504
40,469

92,258
57,426
29,353

74,118
50,850
56,013

79,468
55,435
58,773

65,392
48,377
23,974

81,819
57,639
24,019

86,898
58.157
47,080

78,448
55,394
71,768

77,302
47,267
27,427

75,426
46,560
27,307

n.a.

n.a.

Oct. 20

Oct. 27

O U T R I G H T TRANSACTIONS 2

1
2
3
4
5
6
7
8
9

By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
13
U.S. Treasury
14
Federal agency
15
Mortgage-backed

10
11
12

FUTURES T R A N S A C T I O N S 3

By type of deliverable security
16 U.S. Treasury bills
Coupon securities, by maturity
17
Five years or less
18
More than five years
19 Inflation-indexed
Federal agency
20 Discount notes
Coupon securities, by maturity
21
One year or less
22
More than one year, but less than
or equal to five years
More than five years
23
24 Mortgage-backed

0

0

0

0

n.a.

n.a.

n.a.

n.a.

n.a.

2,469
12,348
0

4,701
14,980
0

2,226
13,642
0

4,400
17,151
0

2,538
13,485
0

2,167
14,803
0

1,720
11,765
0

1,819
14,028
0

3,354
12,564
0

2,186
10,767
0

3,050
14,003
0

1,862
12,112
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0

OPTIONS T R A N S A C T I O N S 4

25
26
27
28
29
30
31
32
33

By type of underlying security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

0

0

0

0

0

0

0

0

0

0

0

0

951
3,892
0

1,197
4,480
0

842
3,440
0

1,074
2,546
0

879
4,611
0

989
2,935
0

754
2,705
0

645
3,710
0

1,110
3,332
0

1,244
3,377
0

996
4,531
0

591
3,190
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
0
1,175

0
0
1,033

0
0
917

0
n.a.
1,081

n.a.
n.a.
1,224

0
546

n.a.
n.a.
1,396

0
587

0
n.a.
331

0
n.a.
390

0
0
447

1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in five business days or less and "when-issued"
securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.




n.a.

n.a.

n.a.
0
652

Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.

Federal Finance
1.43

U.S. GOVERNMENT SECURITIES DEALERS

A25

Positions and Financing1

Millions of dollars
1999, week ending

1999
July

Aug.

Sept.

Sept. 1

Sept. 8

Sept. 15

Sept. 22

Sept. 29

Oct. 6

Oct. 13

Oct. 20

Positions 2

N E T OUTRIGHT POSITIONS

1
2
3
4
5
6
7
8
9

By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed
N E T FUTURES

10
11
12
13
14
15
16
17
18

4,005

165

1,862

7,295

5,816

-1,306

2,541

-341

1,598

8,456

8,929

-25,332
-14,263
3,202

-31,236
-7,689
3,370

-33,167
-14,651
3,758

-30,286
-7,215
3,774

-33,085
-9,493
3,703

-34,425
-15,435
3,799

-35,223
-18,404
3,940

-30,337
-15,694
3,531

-33,225
-19,135
4,161

-35,289
-21,983
4,035

-39,504
-22,914
3,528

21,732

29,448

38,620

32,385

36,636

40,505

40,704

37,279

40,332

39,198

35,664

3,233

4,065

5,158

5,297

4,905

4,771

5,392

5,246

7,256

5,764

5,706

7,633
2,882
18,844

6,923
1,023
17,990

6,989
2,346
18,585

8,216
1,200
16,238

7,354
1,736
17,132

6,918
2,877
20,159

6,443
2,418
22,066

7,430
2,615
15,596

4,438
1,664
16,636

5,018
2,981
22,120

4,406
3.119
22,955

n.a.

n.a.

n.a.

10,411
4,912
0

12,073
9,957
0

9,928
11,952
0

POSITIONS 4

By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

0

0

0

0

7,576
-4,401
0

10,940
-5,879
0

7,803
-420
0

7,650
-7,434
0

n.a.

0

8,136
-4,965
0

0

8,176
2,020
0

8,247
203
0

n.a.
6,301
1,302
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

N E T OPTIONS POSITIONS

19
20
21
22
23
24
25
26
27

By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

0

0

0

0

0

0

0

0

0

0

0

-2,059
89
0

-1,661
-553
0

-57
-1,552
0

-878
-1,725
0

-555
-2,364
0

-456
-1,304
0

523
-671
0

456
-1,483
0

-614
-4,075
0

-1,441
-4,888
0

-2,486
-2,656
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

n.a.
n.a.
2,070

n.a.
n.a.
3,540

n.a.
n.a.
2,105

n.a.
n.a.
4,630

n.a.
n.a.
2,468

n.a.
n.a.
1,443

n.a.
n.a.
2,097

n.a.
n.a.
2,103

n.a.
n.a.
1,728

n.a.

0
n.a.

32
1,053

32
826

Financing 5
Reverse repurchase agreements
28 Overnight and continuing
29 Term

258,349
821,067

273,639
780,367

290,610
792,662

274,150
733,653

276,844
757,629

297,141
793,309

286,250
821,609

303,871
810,388

295,403
765,661

289,515
792,836

293,341
810,239

Securities borrowed
30 Overnight and continuing
31 Term

254,405
90,588

254,149
87,850

250,667
91,796

253,085
83,148

252,062
84,953

251,946
91,765

253,559
95,900

243,384
95,524

260,255
93,727

254,576
93,874

257,963
98,054

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.

2,583
n.a.

2,393
n.a.

Repurchase agreements
34 Overnight and continuing
35 Term

675,629
688,157

694,296
650,774

692,032
680,923

696,064
605,775

686,295
631,178

699,375
674,289

697,399
710,400

684,837
724,393

689,566
640,089

691,509
660,904

695,993
693,946

Securities loaned
36 Overnight and continuing
37 Term

11,458
6,991

9,885
7,269

9,063
7,026

9,492
7,031

9,022
7,012

9,194
6,966

8,974
7,453

9,006
6,689

9,019
6,916

9,106
6,671

8,814
7,412

Securities pledged
38 Overnight and continuing
39 Term

55,853
9,530

53,526
8,213

53,966
8,116

51,878
7,920

52,453
7,914

53,386
8,034

55,262
8,153

54,502
8,354

57,870
8,370

57,441
8,276

52,812
8,383

Collateralized
40 Total

17,509

18,826

23,284

20,879

20,894

21,840

26,460

24,024

25,111

20,695

27,676

Securities received as pledge
32 Overnight and continuing
33 Term

loans

1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate positions include securities purchased or sold (other than mortgage-backed agency securities) that
have been delivered or are scheduled to be delivered in five business days or less and
"when-issued" securities that settle on the issue date of offering. Net immediate positions for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt




securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, "n.a." indicates that data are not published because of insufficient activity.

A30
1.44

DomesticNonfinancialStatistics • January 2000
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
1999
Agency

1995

1996

1997

1998
Apr.

MEMO
19 Federal Financing B a n k debt 1 3

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

Aug.

925,823

1,022,609

1,296,477

1,377,524

1,404,576

1,425,396

l,457,925 r

1,491,900

37,347
6
2,050
97

29,380
6
1,447
84

27,792
6
552
102

26,502
6
n.a.
205

26,100
6
n.a.
84

26,094
6
n.a.
88

26,370
6
n.a.
99

26,204
6
n.a.
105

26,107
6
n.a.
109

n.a.
5,765
29,429
n.a.

n.a.
n.a.
27,853
n.a.

n.a.
n.a.
27,786
n.a.

n.a.
n.a.
26,496
n.a.

n.a.
n.a.
26,094
n.a.

n.a.
n.a.
26,088
n.a.

n.a.
n.a.
26,364
n.a.

n.a.
n.a.
26,198
n.a.

n.a.
n.a.
26,101
n.a.

807,264
243,194
119,961
299,174
57,379
47,529
8,170
1,261
29,996

896,443
263,404
156,980
331,270
60,053
44,763
8,170
1,261
29,996

994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996

1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996

1,351,424
415,602
310,387
478,994
67,527
37,660
8,170
1,261
29,996

1,378,482
421,655
317,533
492,913
66,608
38,129
8,170
1,261
29,996

1,399,026
437,109
314,412
499,897
67,749
37,959
8,170
1,261
29,996

1,431,721
444,775
334,575
502,653
66,922
40,843
8,170
1,261
29,996

1,465,793
458,320
340,972
517,200
67,269
40,310
8,170
1,261
29,996

58,172

49,090

44,129

41,637

41,131

40,585

39,901

39,341

2,044
5,765
n.a.
3,200
n.a.

1,431
n.a.
n.a.
n.a.
n.a.

552
n.a.
n.a.
n.a.
n.a.

A
T

T

T

T

T

T

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

1

1

1

1

1
1

i

21,015
17,144
29,513

18,325
16,702
21,714

13,530
14,898
20,110

9,500
14,091
20,538

agencies

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.




July

78,681

10 Federally sponsored agencies 7
Federal Home Loan Banks
11
12
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
13
14
Farm Credit Banks 8
Student Loan Marketing Association 9
15
16
Financing Corporation 10
Farm Credit Financial Assistance Corporation 11
1/
18
Resolution Funding Corporation 12

20
21
22
23
24

June

844,611

1 Federal a n d federally sponsored agencies
2 Federal agencies
Defense Department 1
3
4
Export-Import Bank 2 ' 3
5
Federal Housing Administration 4
6
Government National Mortgage Association certificates of
participation 5
Postal Service 6
7
8
Tennessee Valley Authority
United States Railway Association 6
9

Lending to federal and federally sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6

May

i

i

8,550
13,999
19,088

i

8,275
13,997
18,859

i

7,935
13,877
18,773

7,445
13,944
18,512

1

7,270
13,969
18,102

10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets' and
guaranteed loans.

Securities Markets and Corporate Finance
1.45

NEW SECURITY ISSUES

A31

Tax-Exempt State and Local Governments

Millions of dollars
1999
Type of issue or issuer,
or use

1996

1997

1998
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

1 All issues, new and refunding'

171,222

214,694

262,342

24,323

15,758

16,234

23,428

18,671

15,746

18,433

17,497

By type of issue
2 General obligation
3 Revenue

60,409
110,813

69,934
134,989

87,015
175,327

8,323
16,000

6,443
9,315

5,294
10,941

10,997
12,431

6,206
12,465

4,268
11,478

5,171
13,262

4,183
13,314

By type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township

13,651
113,228
44,343

18,237
134,919
70,558

23,506
178,421
60,173

1,895
14,604
7,825

907
10,010
4,841

1,220
11,279
3,735

1,236
18,414
3,779

2,194
13,572
2,906

911
11,578
3,257

2,341
13,449
2,642

1,753
12,186
3,557

7 Issues for new capital

112,298

135,519

160,568

16,201

10,474

12,149

19,509

12,172

12,530

14,973

14,908

26,851
12,324
9,791
24,583
6,287
32,462

31,860
13,951
12,219
27,794
6,667
35,095

36,904
19,926
21,037
n.a.
8,594
42,450

3,537
1,640
2,839
n.a.
1,084
3,918

2,734
1,107
1,372
n.a.
618
2,592

2,795
1,791
603
n.a.
1,058
3,760

3,793
1,650
1,594
n.a.
739
7,195

3,415
1,264
535
n.a.
850
2,729

2,842
1,955
1,038
n.a.
585
3,255

2,885
1,886
1,976
n.a.
1,271
3,941

2,049
1,674
1,176
n.a.
726
4,509

8
9
10
11
12
13

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.

1.46

NEW SECURITY ISSUES

SOURCE. Securities Data Company beginning January
Digest before then.

1990; Investment

Dealer's

U.S. Corporations

Millions of dollars
1999
Type of issue, offering,
or issuer

1996

1997

1998
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

1 All issues 1

773,110

929,256

1,128,491

103,175

126,161

85,862

110,475

96,608

96,608

83,466

82,936

2 Bonds 2

651,104

811,376

1,001,736

92,885

116,440

76,721

94,713

88,338

83,546

75,708

76,485

By type of offering
3 Sold in the United States
4 Sold abroad

567,671
83,433

708,188
103,188

923,771
77,965

82,871
10,014

101,024
15,416

65,886
10,834

86,730
7,983

79,031
9,306

69,451
14,095

63,383
12,325

66,357
10,128

648

1,224

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

MEMO

n.a.

n.a.

By industry group
6 Nonfinancial
7 Financial

167,904
483,200

222,603
588,773

307,935
693,801

23,131
69,754

39,818
76,623

30,676
46,045

32,843
61,870

24,531
63,807

25,526
58,020

22,704
53,005

21,073
55,412

8 Stocks 3

5 Private placements, domestic

n.a.

122,006

117,880

126,755

10,290

9,721

9,141

15,762

8,270

13,062

7,758

6,451

By type of offering
9 Public
10 Private placement 4

122,006
n.a.

117,880
n.a.

126,755
n.a.

10,290
n.a.

9,721
n.a.

9,141
n.a.

15,762
n.a.

8,270
n.a.

13,062
n.a.

7,758
n.a.

6,451
n.a.

By industry group
11 Nonfinancial
12 Financial

80,460
41,546

60,386
57,494

74,113
52,642

8,911
1,379

8,534
1,187

7,640
1,501

10,425
5,337

6,436
1,834

11,589
1,473

6,379
1,379

5,491
960

1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.




2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data are not available.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.

A32
1.47

DomesticNonfinancialStatistics • January 2000
Net Sales and Assets 1

OPEN-END INVESTMENT COMPANIES
Millions of dollars

1999
Item

1997

1998
Mar.

1 Sales of own shares 2

Apr.

May

Aug.

July

June

Sept.1"

Oct.

1,190,900

1,461,430

164,290

166,324

140,422

138,502

140,926

132,991

132,226

140,237

918,728
272,172

1,217,022
244,408

146,479
17,811

139,035
27,288

127,800
12,622

117,953
20,550

128,173
12,754

125,908
7,084

126,207
6,019

124,011
16,226

4 Assets 4

3,409,315

4,173,531

4,328,150

4,505,237

4,442,880

4,650,385

4,585,131

4,548,784

4,498,964

4,704,277

5 Cash 5
6 Other

174,154
3,235,161

191,393
3,982,138

198,741
4,129,409

211,243
4,293,994

211,580
4,231,300

214,779
4,435,607

209,061
4,376,070

209,349
4,339,435

209,709
4,289,255

225,111
4,479,166

2 Redemptions of own shares
3 Net sales 3

1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.

1.48

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.

CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1998r

1997
Account

1996r

1997r

1999

1998r
Q41

1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits-tax liability
4 Profits after taxes
5 Dividends
6 Undistributed profits
7 Inventory valuation
8 Capital consumption adjustment

Q1

Q2

Q3

Q4

Ql 1

Q2 r

Q3

753.9
726.3
223.6
502.7
297.7
205.0

837.9
795.9
238.3
557.6
333.7
223.9

846.1
781.9
240.2
541.7
348.6
193.1

853.5
811.6
244.1
567.4
344.8
222.6

858.3
788.9
239.9
548.9
346.5
202.5

847.9
792.0
241.1
550.9
347.3
203.6

843.8
780.1
244.3
535.8
348.4
187.4

834.3
766.7
235.6
531.0
352.2
178.8

882.0
818.1
248.0
570.1
356.4
213.7

875.5
835.8
254.4
581.4
361.5
219.9

883.7
857.8
259.1
598.6
367.3
231.3

3.1
24.4

7.4
34.6

20.9
43.3

4.0
38.0

29.5
39.9

13.6
42.4

19.8
43.9

20.8
46.9

13.3
50.6

-13.6
53.2

-26.5
52.4

SOURCE. U.S. Department of Commerce, Survey of Current Business.

1.51

DOMESTIC FINANCE COMPANIES

Assets and Liabilities1

Billions of dollars, end of period; not seasonally adjusted
1998
Account

1996

1997

1999

1998

Ql

Q2

Q3

Q4

Ql

Q2

Q3

ASSETS
1 Accounts receivable, gross 2
Consumer
2
Business
3
Real estate
4

637.1
244.9
309.5
82.7

663.3
256.8
318.5
87.9

711.7
261.8
347.5
102.3

667.2
251.7
325.9
89.6

676.0
251.3
334.9
89.9

687.6
254.0
335.1
98.5

711.7
261.8
347.5
102.3

733.8
261.7
362.8
109.2

756.5
269.2
373.7
113.5

776.5
271.3
382.9
122.3

55.6
13.1

52.7
13.0

56.3
13.8

52.1
13.1

53.2
13.2

52.4
13.2

56.3
13.8

52.9
13.4

53.4
13.4

54.0
13.6

7 Accounts receivable, net
8 All other

568.3
290.0

597.6
312.4

641.6
337.9

601.9
329.7

609.6
340.1

622.0
313.7

641.6
337.9

667.6
363.3

689.7
373.2

708.8
368.6

9 Total assets

858.3

910.0

979.5

931.6

949.7

935.7

979.5

1,030.8

1,062.9

1,077.4

19.7
177.6

24.1
201.5

26.3
231.5

22.0
211.7

22.3
225.9

24.9
226.9

26.3
231.5

24.8
222.9

25.1
231.0

27.0
205.3

60.3
332.5
174.7
93.5

64.7
328.8
189.6
101.3

61.8
339.7
203.2
117.0

64.6
338.2
193.1
102.1

60.0
348.7
188.9
103.9

58.3
337.6
185.4
103.6

61.8
339.7
203.2
117.0

64.6
366.7
220.3
131.5

65.4
383.1
226.1
132.2

84.7
396.2
216.0
148.2

858.3

910.0

979.5

931.6

949.7

936.6

979.5

1,030.8

1,062.9

1,077.4

5 LESS; Reserves for unearned income
Reserves for losses
6

LIABILITIES AND C A P I T A L

10 Bank loans
11 Commercial paper
12
13
14
15

Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

16 Total liabilities and capital

1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.




2. Before deduction for unearned income and losses,

Securities Market and Corporate Finance
1.52

DOMESTIC FINANCE COMPANIES

A33

Owned and Managed Receivables1

Billions of dollars, amounts outstanding
1999
Type of credit

1996

1997

1998
Apr.

May

June

July

Aug.

Sept.

Seasonally adjusted
1 Total

762.4

810.5

875.8

919.5

931.9

938.1

954.7

967.4 r

973.1

2
3
4

307.6
111.9
342.9

327.9
121.1
361.5

352.8
131.4
391.6

364.2
141.2
414.2

369.5
142.8
419.5

372.4
141.2
424.5

375.9
144.2
434.6

380.8 r
146.7
439.9

382.3
148.9
441.9

Consumer
Real estate
Business

Not seasonally adjusted

5 Total
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

Consumer
Motor vehicles loans
Motor vehicle leases
Revolving 2
Other 3
Securitized assets 4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets 4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans 5
Leases
Equipment
Loans
Leases
Other business receivables 6
Securitized assets 4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables 6

769.7

818.1

884.0

919.4

931.6

942.9

948.9

962.2 r

968.7

310.6
86.7
92.5
32.5
33.2

330.9
87.0
96.8
38.6
34.4

356.1
103.1
93.3
32.3
33.1

360.9
106.8
94.8
31.3
32.0

368.3
105.1
95.3
31.3
32.0

374.6
108.6
95.6
32.4
32.6

378.1
108.5
97.0
32.8
32.0

382.0 r
112.7
98.3
33.0
31.6 r

383.5
109.4
98.1
30.9
32.9

36.8
8.7
.0
20.1
111.9
52.1
30.5

44.3
10.8
.0
19.0
121.1
59.0
28.9

54.8
12.7
8.7
18.1
131.4
75.7
26.6

57.8
11.8
8.8
17.6
141.2
81.7
31.6

65.8
11.6
8.7
18.3
142.8
83.6
31.5

65.3
11.3
9.7
19.0
141.2
80.5
33.0

68.3
11.1
9.9
18.4
144.2
83.6
33.1

68.0
10.8
9.4
18.1
146.7
86.0
33.7

73.5
10.6
10.2
17.9
148.9
87.7
34.6

28.9
.4
347.2
67.1
25.1
33.0
9.0
194.8
59.9
134.9
47.6

33.0
.2
366.1
63.5
25.6
27.7
10.2
203.9
51.5
152.3
51.1

29.0
.1
396.5
79.6
28.1
32.8
18.7
198.0
50.4
147.6
69.9

27.6
.3
417.4
86.2
30.7
36.5
18.9
203.1
52.0
151.0
76.9

27.4
.3
420.5
84.4
31.6
33.8
19.0
203.8
51.7
152.1
78.9

27.5
.2
427.1
82.8
30.9
32.7
19.2
208.3
53.3
155.1
82.6

27.2
.2
426.7
78.8
31.7
27.9
19.3
208.5
52.9
155.6
89.2

26.8
.2
433.5
78.6
33.3
26.8
18.5
210.5
53.1
157.4
92.7

26.5
.2
436.3
80.3
34.5
26.8
19.0
208.4
48.2
160.2
94.2

24.0
2.7
21.3
.0
11.3
4.7
6.6
2.4

33.0
2.4
30.5
.0
10.7
4.2
6.5
4.0

29.2
2.6
24.7
1.9
13.0
6.6
6.4
6.8

30.5
2.4
26.2
1.9
12.5
5.8
6.6
8.3

32.0
2.2
27.8
1.9
13.2
6.5
6.6
8.3

32.1
2.9
27.2
2.0
13.3
6.7
6.6
8.0

28.4
2.8
23.5
2.0
13.8
7.1
6.7
7.9

30.4
2.7
25.7
2.0
13.5
6.9
6.6
7.8

31.0
2.6
26.4
2.0
14.6
7.7
6.9
7.7

NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown




before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.

A34
1.53

DomesticNonfinancialStatistics • January 2000
MORTGAGE MARKETS

Mortgages on New Homes

Millions of dollars except as noted
1999
Item

1996

1998

1997

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

180.1
140.3
80.4
28.2
1.02

195.2
151.1
80.0
28.4
.89

209.4
162.4
79.5
28.9
.77

207.5
161.6
79.8
28.7
.69

211.0
162.0
79.0
28.6
.72

207.6
158.2
78.6
28.5
.83

213.8
163.1
78.3
28.5
.68

210.3
161.8
78.8
29.1
.64

214.4
165.1
79.0
29.1
.71

7.56
7.77
8.03

7.57
7.73
7.76

6.95
7.08
7.00

6.74
6.85
6.93

6.78
6.89
7.17

6.92
7.03
7.59

7.16
7.29
7.75

6.99
7.09
7.87

6.99
7.09
7.76

7.06
7.17
7.77

8.19
7.48

Yield (percent per year)
6 Contract rate 1
7 Effective rate 1,3
8 Contract rate (HUD series) 4

182.4
139.2
78.2
27.2
1.21

7.89
7.26

7.04
6.43

7.08
6.50

7.58
6.79

8.13
7.21

8.00
7.28

8.10
7.53

8.05
7.42

8.02
7.52

SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203) 5
10 GNMA securities 6

Activity in secondary markets

FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of
11 Total
FHA/VA insured
12
13
Conventional

period)
287,052
30,592
256,460

316,678
31,925
284,753

414,515
33,770
380,745

446,025
36,158
409,867

464,530
38,938
425,592

473,315
41,143
432,172

480,651
44,132
436,519

495,302
47,846
447,456

504,938
49,456
455,482

509,990
50,639
459,351

14 Mortgage transactions purchased (during period)

68,618

70,465

188,448

14,225

25,640

15,934

14,004

21,094

15,200

10,057

Mortgage
15 Issued7
16 To sell 8

65,859
130

69,965
1,298

193,795
1,880

20,192
75

12,517
178

19,507
351

12,966
260

18,153
478

7,998
609

10,480
1,710

Mortgage holdings (end of period f
17 Total
FHA/VA insured
18
19
Conventional

137,755
220
137,535

164,421
177
164,244

255,010
785
254,225

284,006
1,613
282,393

285,881
1,610
284,271

299,184
1,726
297,458

300,093
1,735
298,358

306,214
1,708
304,506

315,968
l,689 r
314,279 r

318,682
1,689
316,993

Mortgage transactions
20 Purchases
21 Sales

125,103
119,702

117,401
114,258

267,402
250,565

26,473
25,464

22,503
21,972

21,950
20,349

17,602
16,835

18,674
17,468

15,238
14,153

13,323
12,671

128,995

120,089

281,899

24,050

20,052

21,610

14,988

18,951

14,608

10,810

commitments

(during

period)

FEDERAL HOME LOAN MORTGAGE CORPORATION

(during

period)

22 Mortgage commitments contracted (during period) 9

1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured
by the Federal Housing Administration (FHA) for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month.




6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities swap programs, whereas the corresponding data for F N M A
exclude swap activity.

Real Estate
1.54

A3 5

MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1998
Type of holder and property

1996

1995

1999

1997

Q2
1 All holders
2
3
4
5

By type of property
One- to four-family residences
Multifamily residences
Nonfarm, nonresidential
Farm

By type of holder
6 Major financial institutions
7
Commercial banks 2
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
12
Savings institutions'1
13
One- to four-family
14
Multifamily
15
Nonfarm, nonresidential
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration 4
27
One- to four-family
28
Multifamily
29
Nonfarm, nonresidential
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
Multifamily
33
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Nonfarm, nonresidential
38
Farm
39
Federal Deposit Insurance Corporation
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
Farm
43
44
Federal National Mortgage Association
45
One- to four-family
46
Multifamily
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts5
54
Government National Mortgage Association
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Multifamily
63
Farmers Home Administration 4
64
One- to four-family
Multifamily
65
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family 6
70
Multifamily
Nonfarm, nonresidential
71
72
Farm
73 Individuals and others 7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential
77
Farm

Q4

Ql

Q2 P

4,603,384

4,898,661

5,212,073

5,434,008

5,568,417

5,722,421

5,861,070

6,013,592

3,509,721
277,002
732,100
84,561

3,719,010
294,783
797,734
87,134

3,954,854
310,456
856,464
90,299

4,117,231
323,324
900,453
93,001

4,217,417
330,595
926,039
94,367

4,322,453
340,782
962,680
96,506

4,414,500
351,652
997,514
97,403

4,527,176
359,796
1,026,903
99,717

1,900,089
1,090,189
646,545
42,521
377,293
23,830
596,763
482,353
61,987
52,135
288
213,137
8,890
28,714
165,876
9,657

1,981,885
1,145,389
677,603
45,451
397,452
24,883
628,335
513,712
61,570
52,723
331
208,161
6,977
30,750
160,314
10,120

2,083,978
1,245,315
745,510
49,670
423,148
26,986
631,822
520,672
59,543
51,252
354
206,841
7,187
30,402
158,780
10,472

2,121,961
1,281,870
770,116
51,227
432,208
28,319
632,359
522,088
58,908
50,978
386
207,732
6,814
30,618
159,456
10,844

2,137,438
1,295,828
770,340
52,205
444,596
28,688
634,251
525,844
56,696
51,312
399
207,359
6,594
30,565
159,189
11,011

2,195,376
1,337,772
797,533
52,871
458,333
29,035
643,964
533,792
56,825
52,930
417
213,640
6,590
31,522
164,004
11,524

2,202,494
1,337,218
782,441
56,170
469,095
29,512
646,213
534,494
56,763
54,521
435
219,063
6,956
31,528
168,862
11,717

2,243,008
1,361,947
790,465
58,572
482,367
30,544
656,383
544,659
55,002
56,279
444
224,677
7,285
32,321
173,106
11,965

308,757
2
0
41,791
17,705
11,617
6,248
6,221
9,809
5,180
4,629
1,864
691
647
525
0
4,303
492
428
3,383
0
178,807
163,648
15,159
28,428
1,673
26,755
43,753
39,901
3,852

295,192
2
2
0
41,596
17,303
11,685
6,841
5,768
6,244
3,524
2,719
0
0
0
0
0
2,431
365
413
1,653
0
168,813
155,008
13.805
29,602
1,742
27.860
46,504
41,758
4,746

286,167
8
8
0
41,195
17,253
11,720
7,370
4,852
3,821
1,767
2,054
0
0
0
0
0
724
109
123
492
0
161,308
149,831
11,477
30,657
1,804
28,853
48,454
42,629
5,825

287,161
8
8
0
40,921
17,059
11,722
7,497
4,644
3,631
1,610
2,021
0
0
0
0
0
564
85
96
384
0
159,816
149,383
10,433
31,352
1,845
29,507
50,869
44,597
6,272

287,125
7
7
0
40,907
17,025
11,736
7,566
4,579
3,405
1,550
1.855
0
0
0
0
0
482
72
82
328
0
159,104
149,069
10,035
32,009
1,883
30,126
51,211
44,254
6,957

292,636
7
7
0
40,851
16,895
11,739
7,705
4,513
3,674
1,849
1,825
0
0
0
0
0
361
54
61
245
0
157,675
147,594
10,081
32,983
1,941
31,042
57,085
49,106
7,979

288,313
6
6
0
40,691
16,777
11,731
7,769
4,413
3,675
1,850
1,825
0
0
0
0
0
315
47
54
214
0
157,185
147,063
10,122
33,128
1,949
31,179
53,313
44,140
9,173

288,235
8
8
0
40,691
16,777
11,731
7,769
4,413
3,684
1,818
1,867
0
0
0
0
0
189
28
32
129
0
155,637
145,033
10,604
33,744
1,985
31,758
54,282
43,574
10,708

1,863,210
472,283
461,438
10,845
515,051
512,238
2,813
582,959
569,724
13,235
11
2
0
5
4
292,906
227,800
15,584
49,522
0

2,064,882
506,340
494,158
12,182
554,260
551,513
2,747
650,780
633,210
17,570
3
0
0
0
3
353,499
261,900
21,967
69,633
0

2,273,022
536,879
523,225
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
447,173
318,000
29,218
99,955
0

2,442,715
537,743
523,400
14,343
609,791
607,469
2,322
761,359
737,631
23,728
2
0
0
0
2
533,820
364,316
38,098
131,406
0

2,548,301
541,540
527,043
14,497
635,726
633,124
2,602
798,460
770,979
27,481
2
0
0
0
2
572,573
391,736
40,895
139,942
0

2,632,839
537,446
522,498
14,948
646,459
643,465
2,994
834,518
804,205
30,313
1
0
0
0
1
614,416
410,900
44,654
158,862
0

2,762,770
543,306
527,912
15,395
687,179
684,240
2,939
881,815
849,513
32,302
1
0
0
0
1
650,469
430,653
48,403
171,413
0

2,861,430
553,316
537,407
15,909
718,085
714,844
3,241
911,435
877,863
33,572
1
0
0
0
1
678,594
447,938
50,713
179,942
0

531,329
371,440
64,970
77,112
17,806

556,702
360,235
69,179
109,119
18,169

568,907
362,033
72,629
115,467
18,779

582,171
370,811
73,536
118,525
19,299

595,552
377,896
74,987
123,107
19,562

601,570
386,025
74,971
120,600
19,974

607,493
386,458
75,249
125,640
20,147

620,919
397,491
75,524
127,312
20,592

2

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.




Q3

6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.

A36
1.55

DomesticNonfinancialStatistics • January 2000
CONSUMER CREDIT1
Millions of dollars, amounts outstanding, end of period
1999
Holder and type of credit

1996

1997

1998
Apr.

June

May

July

Aug. r

Sept.

Seasonally adjusted
1,182,439

1,234,122

1,300,491

1,332,662

1,343,427

1,347,831

1,356,696

1,363,800

1,369,732

499,532
682,907

1 Total
2 Revolving
3 Nonrevolving 2

531,295
702,828

560,653
739,838

569,860
762,801

571,957
771,470

578,530
769,301

584,362
772,334

586,684
777,115

587,849
781,883

Not seasonally adjusted
1,211,590

1,264,103

1,331,742

1,322,021

1,331,267

1,340,414

1,349,886

1,364,995

1,373,216

By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets 3

526,769
152,391
144,148
44,711
77,745
265,826

512,563
160,022
152,362
47,172
78,927
313,057

508,932
168,491
155,406
51,611
74,877
372,425

494,663
170,145
156,797
54,803
67,112
378,501

492,852
168,490
158,102
55,982
68,051
387,790

477,774
173,617
158,177
57,161
68,042
405,643

477,977
173,374
159,920
58,340
68,228
412,047

476,649
177,331
162,412
59,519
68,944
420,140

474,546
173,252
164,078
60,699
67,717
432,924

By major type of credit4
11 Revolving
12
Commercial banks
Finance companies
13
14
Credit unions
15
Savings institutions
16
Nonfinancial business
17
Pools of securitized assets 3

522,860
228,615
32,493
17,826
10,313
44,901
188,712

555,858
219,826
38,608
19,552
11,441
44,966
221,465

586,528
210,346
32,309
19,930
12,450
39,166
272,327

563,907
191,295
31,327
18,823
12,507
33,726
276,229

566,019
190,216
31,296
18,732
12,641
34,446
278,688

572,463
178,031
32,408
18,856
12,775
34,618
295,775

576,538
177,098
32,846
19,054
12,909
34,794
299,837

582,838
172,612
33,014
19,335
13,043
35,418
309,416

584,680
172,393
30,884
19,489
13,177
34,289
314,448

18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets 3

688,730
298,154
119,898
126,322
34,398
32,844
77,114

708,245
292,737
121,414
132,810
35,731
33,961
91,592

745,214
298,586
136,182
135,476
39,161
35,711
100,098

758,114
303,368
138,818
137,974
42,296
33,386
102,272

765,248
302,636
137,194
139,370
43,341
33,605
109,102

767,951
299,743
141,209
139,321
44,386
33,424
109,868

773,348
300,879
140,528
140,866
45,431
33,434
112,210

782,157
304,037
144,317
143,077
46,476
33,526
110,724

788,536
302,153
142,368
144,589
47,522
33,428
118,476

4 Total
5
6
7
8
9
10

1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.

1.56

3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.

TERMS OF CONSUMER CREDIT1
Percent per year except as noted
1999
Item

1996

1997

1998
Mar.

Apr.

May

June

July

Aug.

Sept.

INTEREST R A T E S

Commercial banks2
1 48-month new car
2 24-month personal

9.05
13.54

9.02
13.90

8.72
13.74

n.a.
n.a.

n.a.
n.a.

8.30
13.26

n.a.
n.a.

n.a.
n.a.

8.44
13.38

n.a.
n.a.

Credit card plan
3 All accounts
4 Accounts assessed interest

15.63
15.50

15.77
15.57

15.71
15.59

n.a.
n.a.

n.a.
n.a.

15.21
14.94

n.a.
n.a.

n.a.
n.a.

15.08
14.79

n.a.
n.a.

Auto finance
5 New car
6 Used car

9.84
13.53

7.12
13.27

6.30
12.64

6.31
12.09

6.52
12.17

6.57
12.16

6.60
12.31

6.70
12.69

6.28
12.96

n.a.
n.a.

51.6
51.4

54.1
51.0

52.1
53.5

53.0
56.0

52.8
56.0

52.4
56.1

52.3
56.0

52.0
56.1

51.7
55.8

52.1
55.9

91
100

92
99

92
99

91
99

92
99

92
99

92
99

92
99 r

92
100

92
100

16,987
12,182

18,077
12,281

19,083
12,691

19,339
13,653

19,435
13,647

19,539
13,700

19,722
13,816

19,873r
13,609r

20,012
13,374

20,154
13,449

companies

OTHER TERMS3

Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car

ratio

Amount financed (dollars)
11 New car
12 Used car

1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.




2. Data are available for only the second month of each quarter,
3. At auto finance companies,

Flow of Funds
1.57

A3 9

FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1999

1998

1997
Transaction category or sector
Q4

Ql

Q2

Q3

Q4

Ql

Q2

Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . .

584.4

575.8

720.4

743.0

785.3

912.0

1,075.5

1,042.4

899.2

1,072.8

1,248.1

865.6

By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages

256.1
248.3
7.8

155.8
155.7
.2

144.4
142.9
1.5

145.0
146.6
-1.6

23.1
23.2
-.1

-5.5
-7.3
1.7

-14.5
-12.1
-2.4

-28.4
-26.9
-1.4

-113.5
-113.1
-.4

-54.1
-66.3
12.2

-75.2
-73.7
-1.5

-112.2
-112.8
.6

5 Nonfederal

328.3

420.0

576.0

598.0

762.2

917.5

1,090.0

1,070.8

1,012.6

1,127.0

1,323.3

977.8

9
in
ii
17.
13
14
15
16

By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit

10.0
74.8
75.2
6.4
-18.9
122.4
160.1
-5.1
-33.6
1.0
58.4

21.4
-35.9
23.3
75.2
34.0
177.0
183.4
-2.1
-6.5
2.2
124.9

18.1
-48.2
91.1
103.7
67.2
205.1
179.8
7.6
16.2
1.6
138.9

-.9
2.6
116.3
70.5
33.5
287.4
243.0
11.5
30.4
2.6
88.8

13.7
71.4
150.5
106.5
69.1
298.4
235.8
10.8
48.7
3.2
52.5

12.8
99.9
163.6
178.1
141.4
278.6
188.8
18.3
68.6
2.9
43.1

51.1
113.5
278.8
35.0
76.3
476.4
376.5
21.6
74.1
4.1
58.9

3.8
101.3
294.8
169.2
40.8
398.9
287.3
21.1
83.8
6.7
62.1

85.6
82.9
108.0
107.8
77.7
471.1
373.7
16.1
75.9
5.5
79.6

-43.0
89.6
193.2
120.9
102.5
593.8
427.8
30.6
126.8
8.6
69.9

64.4
100.7
274.0
70.0
114.1
573.4
414.6
35.9
119.3
3.6
126.6

3.4
48.0
260.8
21.8
-5.3
595.7
424.2
36.8
125.4
9.3
53.2

17
IS
19
20
21
22

By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government

209.4
52.7
46.9
3.2
2.6
66.2

316.3
150.0
142.3
3.3
4.4
-46.2

350.3
277.2
243.7
30.6
2.9
-51.5

351.7
253.2
164.6
83.8
4.8
-6.8

325.5
380.6
297.0
77.4
6.2
56.1

311.1
520.3
425.0
86.6
8.6
86.2

463.3
532.5
426.9
97.1
8.4
94.2

418.5
570.3
467.4
95.4
7.5
82.0

471.9
470.7
365.8
97.6
7.3
70.0

527.3
524.6
413.7
103.3
7.5
75.1

553.3
682.6
574.4
101.6
6.6
87.4

511.0
431.1
320.6
111.2
-.7
35.7

23 Foreign net borrowing in United States
24
Commercial paper
75
Bonds
Bank loans n.e.c
26
Other loans and advances
27

69.8
-9.6
82.9
.7
-4.2

-13.9
-26.1
12.2
1.4
-1.4

71.1
13.5
49.7
8.5
-.5

77.2
11.3
55.8
9.1
1.0

57.6
3.7
47.2
8.5
-1.8

44.8
.7
34.2
15.7
-5.8

95.0
55.3
42.5
5.2
-8.0

97.9
-25.5
119.2
8.4
-4.2

-19.6
6.2
-27.2
3.6
-2.2

-38.9
-4.7
-34.2
9.8
-9.7

17.3
18.3
.9
.9
-2.8

-43.3
-27.1
-19.1
5.7
-2.7

28 Total domestic plus foreign

654.2

561.9

791.5

820.3

842.9

956.8

1,170.4

1,140.3

879.5

1,034.0

1,265.4

822.4

6
7

Financial sectors
29 Total net borrowing by financial sectors
3n
31
.32
33

By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government

34 Private
35
Open market paper
36
Corporate bonds
Bank loans n.e.c
37
38
Other loans and advances
Mortgages
39
40
41
47
4.3
44
45
46
47
48
49
5n
51

By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations




294.4

468.4

453.9

548.9

652.2

961.5

931.3

988.9

1,056.3

1,298.7

1,216.0

1,014.1

165.3
80.6
84.7
.0

287.5
176.9
115.4
-4.8

204.1
105.9
98.2
.0

231.5
90.4
141.1
.0

212.8
98.4
114.5
.0

290.9
157.9
133.0
.0

249.2
142.5
106.7
.0

405.4
166.4
239.0
.0

555.8
294.0
261.7
.0

673.3
510.5
162.8
.0

592.3
193.0
399.3
.0

579.3
304.7
274.6
.0

129.1
-5.5
123.1
-14.4
22.4
3.6

180.9
40.5
121.8
-13.7
22.6
9.8

249.8
42.7
195.9
2.5
3.4
5.3

317.5
92.2
176.9
12.6
27.9
7.9

439.4
166.7
209.0
13.2
35.6
14.9

670.7
244.7
348.8
-4.7
61.7
20.1

682.1
236.7
346.3
57.3
32.7
9.1

583.5
135.6
361.8
-9.7
76.0
19.9

500.5
141.0
177.4
60.2
82.3
39.6

625.4
130.7
281.9
12.4
169.9
30.6

623.7
78.3
492.5
-8.8
41.6
20.1

434.8
57.8
260.8
10.5
117.9
-12.3

13.4
11.3
.2
.2
80.6
84.7
85.4
-1.4
.0
1.7
12.0
6.3

20.1
12.8
1
.3
172.1
115.4
76.5
48.7
-11.5
10.2
.5
23.1

22.5
2.6
-.1
-.1
105.9
98.2
142.4
50.2
-2.2
4.5
-5.0
34.9

13.0
25.5
.1
1.1
90.4
141.1
153.9
45.9
4.1
11.9
-2.0
64.1

46.1
19.7
.1
.2
98.4
114.5
200.7
48.7
-4.6
39.6
8.1
80.7

61.4
41.7
.3
-.3
157.9
133.0
374.8
70.7
-46.8
66.0
7.0
95.9

82.8
10.6
.5
.0
142.5
106.7
283.0
74.6
29.4
63.1
-1.0
139.2

80.8
31.2
.2
-.6
166.4
239.0
352.4
91.9
-28.2
64.4
20.0
-28.6

61.7
63.7
1.0
1.6
294.0
261.7
294.2
-12.0
2.3
79.3
-2.6
11.2

66.3
103.2
.4
1.8
510.5
162.8
335.7
17.8
3.0
44.0
12.4
40.9

31.1
58.0
1.5
3.3
193.0
399.3
302.2
71.2
-4.6
25.6
-31.1
166.5

61.6
58.6
1.4
3.0
304.7
274.6
318.3
88.4
5.1
-19.7
-18.3
-63.4

A38
1.57

DomesticNonfinancialStatistics • January 2000
FUNDS RAISED IN U.S. CREDIT MARKETS 1 —Continued
1997
Transaction category or sector

1993

1994

1995

1996

1998

1999

1997
Q4

Ql

Q2

Q3

Q4

Ql

Q2

All sectors
52 Total net borrowing, all sectors

948.6

1,030.3

1,245.4

1,369.2

1,495.1

1,918.3

2,101.7

2,129.3

1,935.8

2,332.7

2,481.3

1,836.4

Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit

-5.1
421.4
74.8
281.2
-7.2
-.8
126.0
58.4

35.7
448.1
-35.9
157.3
62.9
50.4
186.8
124.9

74.3
348.5
-48.2
336.7
114.7
70.1
210.5
138.9

102.6
376.5
2.6
348.9
92.1
62.5
295.3
88.8

184.1
235.9
71.4
406.7
128.2
102.8
313.3
52.5

258.2
285.3
99.9
546.5
189.2
197.4
298.7
43.1

343.0
234.7
113.5
667.6
97.6
101.0
485.5
58.9

113.8
377.1
101.3
775.8
167.9
112.5
418.7
62.1

232.7
442.3
82.9
258.2
171.6
157.8
510.7
79.6

83.0
619.1
89.6
440.9
143.0
262.7
624.4
69.9

161.1
517.1
100.7
767.4
62.1
152.9
593.5
126.6

34.1
467.1
48.0
502.5
38.0
110.0
583.5
53.2

53
54
55
56
57
58
59
60

Funds raised through mutual funds and corporate equities
61 Total net issues

429.7

125.2

144.3

228.9

188.4

160.9

213.5

268.5

-147.2

18.3

140.6

6.4

62 Corporate equities
Nonfinancial corporations
63
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares

137.7
21.3
63.4
53.0
292.0

24.6
-44.9
48.1
21.4
100.6

-3.1
-58.3
50.4
4.8
147.4

-8.6
-69.5
60.0
.8
237.6

-76.7
-114.4
42.0
-4.3
265.1

-100.0
-143.3
1.7
41.6
260.9

-108.8
-139.2
14.0
16.4
322.3

-109.3
-129.1
12.3
7.5
377.8

-320.6
-308.4
-32.8
20.5
173.4

-206.5
-491.3
317.4
-32.7
224.8

-114.7
-65.7
-33.4
-15.6
255.3

-241.5
-354.0
124.7
-12.2
247.9

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.




Flow of Funds
1.58

A3 9

SUMMARY OF FINANCIAL TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates

1993

1994

1995

1996

1999

1998

1997
Transaction category or sector

1997
Q4

Ql

Q2

Q3

Q4

Ql

Q2

NET LENDING IN CREDIT MARKETS2
948.6

1,030.3

1,245.4

1369.2

1,495.1

1,918.3

2,101.7

2,129.3

1,935.8

2,332.7

2,481.3

1,836.4

30.0
-10.6
9.1
-1.1
32.6
-18.4
129.3
807.8
36.2
142.2
149.6
-9.8
.0
2.4
-23.3
21.7
9.5
100.4
27.7
50.2
24.7
20.4
159.5
20.0
87.8
84.7
82.8
-20.9
.0
.4
14.8
-31.0

231.2
268.0
17.7
.6
-55.0
-27.4
132.3
694.1
31.5
163.4
148.1
11.2
.9
3.3
6.7
28.1
7.1
72.0
24.9
46.1
30.9
30.0
-7.1
-3.7
117.8
115.4
69.4
48.3
-24.0
-.7
-44.2
-17.8

-90.0
5.5
-8.8
4.7
-91.4
-.2
273.9
1,061.7
12.7
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
-8.3
100.0
21.5
56.0
33.6
86.5
52.5
10.5
86.7
98.2
120.6
49.9
-3.4
1.4
90.1
-21.2

22.5
61.4
-.8
-4.3
-33.7
-7.4
414.4
939.7
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
69.6
22.5
52.3
37.3
88.8
48.9
4.7
84.2
141.1
123.6
18.4
8.2
4.4
-15.7
14.0

-88.9
-86.2
-2.3
-.6
.1
5.1
310.7
1,268.1
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
7.6
94.3
25.2
65.5
63.8
87.5
80.9
-2.9
94.3
114.5
162.3
21.9
-9.1
20.2
14.9
52.7

48.1
7.5
-13.0
-.6
54.2
9.2
203.9
1,657.1
54.3
447.4
357.6
69.3
19.4
1.1
8.9
6.5
8.8
34.1
34.7
79.5
42.7
141.8
64.8
-2.9
158.1
133.0
321.9
-19.7
-93.6
38.9
71.7
126.2

-49.7
-64.2
8.4
.0
6.1
15.7
223.8
1,912.0
27.6
306.7
268.4
17.5
15.3
5.5
11.8
16.1
2.4
92.1
23.4
74.5
67.4
159.3
156.4
4.5
198.3
106.7
223.9
28.7
58.8
25.6
245.8
82.0

512.7
385.2
-46.9
.0
174.3
12.9
321.8
1,281.9
11.5
132.7
130.0
15.2
-17.6
5.1
2.1
22.7
3.1
63.4
-1.5
130.1
78.4
208.1
146.4
4.5
150.6
239.0
321.4
24.0
-56.4
6.1
-183.1
-21.4

94.9
-44.8
14.0
.0
125.7
13.8
60.8
1,766.3
41.6
250.1
309.2
-68.1
6.0
2.9
17.9
21.0
2.0
65.6
-7.7
95.6
65.6
255.5
92.9
4.5
264.7
261.7
248.7
79.5
4.5
-11.3
77.0
-63.3

-318.3
-424.1
14.1
.0
91.7
11.7
390.7
2,248.6
3.5
531.5
540.2
-12.1
-7.4
10.7
113.3
16.0
3.9
86.0
67.5
174.4
48.5
353.1
103.5
4.5
429.5
162.8
312.7
75.3
6.0
-40.8
-209.1
6.4

307.5
244.9
10.4
.0
52.2
17.5
213.3
1,943.0
71.8
68.9
134.1
-54.9
-6.0
-4.4
102.7
37.7
3.1
72.6
-19.7
60.5
74.3
227.6
101.5
4.4
157.2
399.3
284.6
92.2
-9.1
1.7
184.5
27.1

347.9
255.1
39.5
.0
53.3
6.5
51.6
1,430.5
62.4
135.0
231.5
-105.8
.1
9.2
88.8
34.7
2.2
89.0
5.0
150.0
37.4
-92.6
98.8
4.4
259.5
274.6
301.5
79.6
10.2
-2.2
-204.5
96.8

34 Net flows t h r o u g h credit m a r k e t s

948.6

1,030.3

1,245.4

1,369.2

1,495.1

1,918.3

2,101.7

2,129.3

1,935.8

2,332.7

2,481.3

1,836.4

Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous

.8
.0
.4
-18.5
50.5
117.3
-70.3
-23.5
20.2
71.3
137.7
292.0
52.2
61.4
37.1
268.0
11.4
.9
24.1
356.0

-5.8
.0
.7
52.9
89.8
-9.7
-39.9
19.6
43.3
78.2
24.6
100.6
94.0
-.1
35.5
254.7
2.6
17.8
53.6
245.6

8.8
2.2
.6
35.3
10.0
-12.7
96.6
65.6
142.3
110.5
-3.1
147.4
101.6
26.7
45.8
235.1
6.2
4.0
60.3
444.6

-6.3
-.5
.1
85.9
-51.6
15.8
97.2
114.0
145.8
41.4
-8.6
237.6
86.1
52.4
44.5
246.9
16.0
-8.6
-.6
498.3

.7
-.5
.0
106.8
-19.7
41.5
97.1
122.5
157.6
120.9
-76.7
265.1
96.2
111.0
54.3
304.0
16.8
75.0
6.1
513.3

17.5
.0
-1.9
100.6
54.3
72.1
136.7
59.2
149.9
103.3
-100.0
260.9
122.6
128.0
37.4
304.1
3.9
78.4
-43.5
222.2

1.0
.0
.3
-46.5
-95.2
52.6
99.0
187.8
213.6
250.3
-108.8
322.3
108.3
159.3
49.3
294.7
12.2
50.3
-11.0
980.1

8.1
.0
.2
92.9
39.8
90.1
84.9
-5.6
247.2
-100.8
-109.3
377.8
-57.4
134.3
53.3
272.9
.9
57.5
-5.4
376.5

8.9
.0
1.7
84.9
44.2
-24.9
144.7
81.8
367.9
231.1
-320.6
173.4
34.6
167.0
51.7
279.5
27.3
47.8
-61.2
712.6

8.6
.0
-2.3
-131.9
-122.9
72.8
281.2
104.4
313.1
-170.3
-206.5
224.8
-86.8
-27.2
59.0
313.8
11.7
67.1
3.2
702.0

-14.0
-4.0
.0
127.7
49.1
61.7
-63.8
-5.9
204.9
408.2
-114.7
255.3
155.5
-86.9
40.8
284.3
-10.3
64.1
-2.5
238.7

-5.4
.0
.7
114.5
68.2
10.3
104.0
42.6
100.5
-65.6
-241.5
247.9
98.4
89.3
65.9
316.4
27.2
53.0
12.3
1,092.8

2,337.6

2,088.3

2,773.2

2,975.1

3,487.1

3,624.1

4,621.2

3,687.3

3,988.1

3,746.3

4,069.6

3,968.0

-.2
-5.7
4.2
50.5
15.8
-158.5

-.2
43.0
-2.7
67.7
16.6
-160.1

-.5
25.1
-3.1
20.2
21.1
-221.4

-.9
59.6
-3.3
4.5
20.4
-66.9

-.6
106.8
-19.9
62.3
18.8
-254.9

-2.4
145.5
-38.1
185.1
14.4
-640.7

-.2
-95.7
35.1
120.8
9.4
61.0

-.3
119.9
8.9
-170.0
2.8
-225.9

1.1
69.9
22.3
110.2
24.2
-106.7

-3.4
-156.5
-52.8
.2
17.4
-43.9

-1.5
62.0
58.7
362.2
-22.4
-568.0

-.4
73.5
-1.7
-14.8
-15.0
-390.0

-1.5
-1.3
-4.0

-4.8
-2.8
1.5

-6.0
-3.8
-11.7

.5
-4.0
-49.9

-2.7
-3.9
3.6

-10.0
-5.0
15.7

8.3
-4.0
41.9

-44.4
-2.9
-150.7

32.4
-3.6
-94.5

14.0
-1.8
-31.1

-1.8
-1.9
55.7

-41.4
-1.0
-6.9

2,438.2

2,130.1

2,953.4

3,015.2

3,577.6

3,959.6

4,444.8

4,150.0

3,932.8

4,004.0

4,126.5

4,365.7

1 Total net lending in credit m a r k e t s
? Domestic nonfederal nonfinancial sectors
Household
Nonfinancial corporate business
4
5
Nonfarm noncorporate business
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
10
Monetary authority
Commercial banking
11
U.S.-chartered banks
1?
Foreign banking offices in United States
13
14
Bank holding companies
IS
Banks in U.S.-affiliated areas
16
Savings institutions
17
Credit unions
18
Bank personal trusts and estates
19
Life insurance companies
20
Other insurance companies
21
Private pension funds
State and local government retirement funds
22
23
Money market mutual funds
74
Mutual funds
75
Closed-end funds
26
Government-sponsored enterprises
27
Federally related mortgage pools
28
Asset-backed securities issuers (ABSs)
29
Finance companies
Mortgage companies
30
31
Real estate investment trusts (REITs)
3?
Brokers and dealers
33
Funding corporations
RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
SO
SI
52
53
54

55 Total financial sources
56
57
58
59
60
61

Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous

Floats not included in assets (—)
62 Federal government checkable deposits
63 Other checkable deposits
64 Trade credit
65 Total identified to sectors as assets

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
E l and F.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A40
1.59

DomesticNonfinancialStatistics • January 2000
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
1997
1994

1995

1996

1998

1999

1997
Q4

Q2

Qi

Q3

Q4

Ql

Q2

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors

13,013.9

13,734.3

14,477.4

15,261.1

15,261.1

15,522.2

15,742.1

15,956.2

16,283.6

16,588.0

16,758.7

By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages

3,492.3
3,465.6
26.7

3,636.7
3,608.5
28.2

3,781.8
3,755.1
26.6

3,804.9
3,778.3
26.5

3,804.9
3,778.3
26.5

3,830.8
3,804.8
25.9

3,749.0
3,723.4
25.6

3,720.2
3,694.7
25.5

3,752.2
3,723.7
28.5

3,759.7
3,731.6
28.1

3,651.7
3,623.4
28.3

5 Nonfederal

9,521.6

10,097.6

10,695.6

11,456.3

11,456.3

11,691.4

11,993.2

12,236.0

12,531.4

12,828.3

13,107.0

6
7
8
y
10
n
12
13
14
lb
16

By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit

139.2
1,341.7
1,253.0
759.9
669.6
4,374.2
3,330.0
261.5
699.8
83.0
983.9

157.4
1,293.5
1,344.1
863.6
736.9
4,579.4
3,509.8
269.1
716.0
84.6
1,122.8

156.4
1,296.0
1,460.4
934.1
770.4
4,866.8
3,719.0
284.3
776.4
87.1
1,211.6

168.6
1,367.5
1,610.9
1,040.5
839.5
5,165.2
3,954.8
295.0
825.1
90.3
1,264.1

168.6
1,367.5
1,610.9
1,040.5
839.5
5,165.2
3,954.8
295.0
825.1
90.3
1,264.1

193.1
1,397.1
1,680.6
1,047.9
863.5
5,273.3
4,037.9
300.4
843.6
91.3
1,236.0

202.5
1,429.3
1,754.3
1,097.6
873.1
5,379.7
4,116.4
305.7
864.6
93.0
1,256.8

216.9
1,439.9
1,781.3
1,120.6
886.8
5,504.0
4,216.4
309.7
883.6
94.4
1,286.6

193.0
1,464.3
1,829.6
1,148.8
913.8
5,650.3
4,321.1
317.4
915.3
96.5
1,331.7

223.9
1,491.0
1,898.1
1,165.2
947.5
5,784.1
4,413.8
326.6
946.3
97.4
1,318.6

232.4
1,510.0
1,963.3
1,178.4
945.8
5,939.2
4,526.0
335.8
977.7
99.7
1,338.0

17
18
19
20
21
22

By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government

4,427.0
3,972.9
2,708.9
1,121.8
142.2
1,121.7

4,782.2
4,245.2
2,947.7
1,152.4
145.1
1,070.2

5,105.1
4,527.1
3,141.0
1,236.1
149.9
1,063.4

5,433.3
4,903.5
3,433.8
1,313.6
156.1
1,119.5

5,433.3
4,903.5
3,433.8
1,313.6
156.1
1,119.5

5,494.5
5,052.6
3,559.4
1,337.9
155.3
1,144.3

5,613.2
5,209.2
3,686.4
1,361.8
161.0
1,170.8

5,746.1
5,311.1
3,762.5
1,385.5
163.1
1,178.8

5,903.6
5,428.0
3,852.2
1,411.9
163.8
1,199.8

5,985.9
5,619.2
4,019.2
1,437.6
162.4
1,223.2

6,128.1
5,740.7
4,107.9
1,466.7
166.2
1,238.2

23 Foreign credit market debt held in
United States

370.3

441.4

518.7

570.1

570.1

591.6

617.1

612.8

603.7

607.8

596.5

24
2b
26
27

42.7
242.3
26.1
59.3

56.2
291.9
34.6
58.8

67.5
347.7
43.7
59.8

65.1
394.9
52.1
58.0

65.1
394.9
52.1
58.0

76.7
405.6
53.4
55.9

71.4
435.4
55.5
54.8

74.0
428.6
56.4
53.8

72.9
420.0
58.9
52.0

77.2
420.2
59.1
51.3

70.1
415.4
60.5
50.4

13,384.2

14,175.8

14,996.0

15,831.2

15,831.2

16,113.8

16,359.2

16,568.9

16,887.3

17,195.8

17,355.2

Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances

28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign

Financial sectors
29 Total credit market debt owed by
financial sectors

3,822.2

4,278.8

4,827.7

5,446.8

5,446.8

5,670.1

5,926.8

6,195.5

6,515.6

6,809.7

7,073.6

30
31
32
33
34
35
36
37
38
39

By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages

2,172.7
700.6
1,472.1
.0
1,649.5
441.6
1,008.8
48.9
131.6
18.7

2,376.8
806.5
1,570.3
.0
1,901.9
486.9
1,204.7
51.4
135.0
24.1

2,608.3
896.9
1,711.4
.0
2,219.4
579.1
1,381.5
64.0
162.9
31.9

2,821.1
995.3
1,825.8
.0
2,625.7
745.7
1,557.5
77.2
198.5
46.8

2,821.1
995.3
1,825.8
.0
2,625.7
745.7
1,557.5
77.2
198.5
46.8

2,878.0
1,030.9
1,847.1
.0
2,792.1
804.9
1,640.8
90.6
206.6
49.1

2,981.4
1,072.5
1,908.9
.0
2,945.4
838.9
1,738.7
88.2
225.6
54.1

3,121.7
1,146.0
1,975.7
.0
3,073.8
874.2
1,786.2
103.2
246.2
64.0

3,292.0
1,273.6
2,018.4
.0
3,223.6
906.7
1,849.4
107.2
288.7
71.6

3,434.1
1,321.8
2,112.3
.0
3,375.6
926.4
1,969.3
104.1
299.1
76.6

3,580.8
1,398.0
2,182.8
.0
3,492.7
940.9
2,042.9
106.8
328.6
73.6

40
41
42
43
44
4b
46
47
48
49
50
bl
b'2

By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations

94.5
133.6
112.4
.5
.6
700.6
1,472.1
570.1
34.3
433.7
18.7
40.0
211.0

102.6
148.0
115.0
.4
.5
806.5
1,570.3
712.5
29.3
483.9
16.5
44.6
248.6

113.6
150.0
140.5
.4
1.6
896.9
1,711.4
866.4
27.3
529.8
20.6
56.5
312.7

140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,078.2
35.3
554.5
16.0
96.1
373.7

140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,078.2
35.3
554.5
16.0
96.1
373.7

148.7
181.2
162.9
.7
1.8
1,030.9
1,847.1
1,142.9
35.1
571.9
23.4
111.9
411.6

159.6
190.5
170.7
.8
1.6
1,072.5
1,908.9
1,230.4
40.1
596.9
16.3
128.0
410.5

169.6
196.1
186.6
1.0
2.0
1,146.0
1,975.7
1,307.0
39.4
589.4
16.9
147.8
417.9

188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,394.6
42.5
597.5
17.7
158.8
414.4

187.5
202.6
226.9
1.5
3.3
1,321.8
2,112.3
1,463.8
34.8
614.4
16.5
165.2
459.1

202.7
202.7
241.6
1.8
4.0
1,398.0
2,182.8
1,542.9
30.2
639.2
17.8
160.3
449.6

All sectors

53 Total credit market debt, domestic and foreign . . .
54
bb
56
b/
b8
b9
60
61

Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit

17,206.4

18,454.5

19,823.7

21,278.1

21,278.1

21,783.9

22,286.0

22,764.5

23,402.9

24,005.5

24,428.7

623.5
5,665.0
1,341.7
2,504.0
834.9
860.5
4,393.0
983.9

700.4
6,013.6
1,293.5
2,840.7
949.6
930.6
4,603.4
1,122.8

803.0
6,390.0
1,296.0
3,189.6
1,041.7
993.1
4,898.7
1,211.6

979.4
6,626.0
1,367.5
3,563.3
1,169.8
1,095.9
5,212.0
1,264.1

979.4
6,626.0
1,367.5
3,563.3
1,169.8
1,095.9
5,212.0
1,264.1

1,074.8
6,708.7
1,397.1
3,727.0
1,191.9
1,126.1
5,322.4
1,236.0

1,112.7
6,730.3
1,429.3
3,928.3
1,241.3
1,153.6
5,433.7
1,256.8

1,165.1
6,841.9
1,439.9
3,996.0
1,280.3
1,186.8
5,568.0
1,286.6

1,172.6
7,044.3
1,464.3
4,098.9
1,314.9
1,254.4
5,721.9
1,331.7

1,227.6
7,193.8
1,491.0
4,287.6
1,328.3
1,297.8
5,860.7
1,318.6

1,243.3
7,232.5
1,510.0
4,421.6
1,345.6
1,324.8
6,012.7
1,338.0

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.




Flow of Funds A3 9
1.60

SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1997
Transaction category or sector

1994

1995

1996

1999

1998

1997
Q4

Ql

Q2

Q3

Q4

Ql

Q2

CREDIT MARKET DEBT OUTSTANDING 2
17,206.4

18,454.5

19,823.7

21,278.1

21,278.1

21,783.9

22,286.0

22,764.5

23,402.9

24,005.5

24,428.7

2,988.8
1,932.1
289.2
37.6
729.9
202.9
1,216.0
12,798.8
368.2
3,254.3
2,869.6
337.1
18.4
29.2
920.8
246.8
248.0
1,487.5
446.4
660.9
497.4
459.0
718.8
86.0
663.3
1,472.1
532.8
476.2
36.5
24.6
93.3
106.0

2,856.8
1,895.5
280.4
42.3
638.6
202.7
1,531.1
13,863.9
380.8
3,520.1
3,056.1
412.6
18.0
33.4
913.3
263.0
239.7
1,587.5
468.7
716.9
531.0
545.5
771.3
96.4
750.0
1,570.3
653.4
526.2
33.0
26.0
183.4
87.4

2,924.6
2,011.6
270.2
38.0
604.8
195.3
1,926.6
14,777.2
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
232.0
1,657.0
491.2
769.2
568.2
634.3
820.2
101.1
807.9
1,711.4
777.0
544.5
41.2
30.4
167.7
101.4

2,781.4
1,871.1
268.0
37.4
605.0
200.4
2,256.8
16,039.5
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
239.5
1,751.3
515.3
834.7
632.0
721.9
901.1
98.3
902.2
1,825.8
939.3
566.4
32.1
50.6
182.6
149.4

2,781.4
1,871.1
268.0
37.4
605.0
200.4
2,256.8
16,039.5
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
239.5
1,751.3
515.3
834.7
632.0
721.9
901.1
98.3
902.2
1,825.8
939.3
566.4
32.1
50.6
182.6
149.4

2,761.2
1,868.2
249.6
37.4
606.0
204.3
2,317.1
16,501.3
433.8
4,093.4
3,505.1
517.9
31.2
39.2
931.3
306.7
240.1
1,777.3
521.1
853.4
648.9
775.0
940.0
99.4
951.4
1,847.1
989.2
572.0
46.8
57.0
244.0
173.5

2,847.0
1,919.2
238.7
37.4
651.6
207.5
2,396.0
16,835.5
440.3
4,136.4
3,543.6
525.6
26.8
40.4
930.8
315.1
240.9
1,793.2
520.8
885.9
668.5
815.9
979.1
100.5
989.4
1,908.9
1,068.9
579.0
32.7
58.5
198.3
172.6

2,876.6
1,913.4
244.7
37.4
681.1
210.9
2,412.2
17,264.8
446.5
4,195.7
3,616.2
510.1
28.3
41.1
939.3
320.5
241.4
1,810.6
518.9
909.8
684.9
869.9
1,005.9
101.7
1,055.4
1,975.7
1,134.2
592.7
33.8
55.7
217.5
155.1

2,813.0
1,805.8
265.4
37.4
704.4
213.9
2,534.3
17,841.7
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.8
324.2
242.4
1,828.0
535.7
953.4
697.0
965.9
1,025.9
102.8
1,163.0
2,018.4
1,216.0
618.4
35.3
45.5
165.2
151.7

2,875.4
1,874.9
246.1
37.4
717.1
218.3
2,591.8
18,320.0
466.0
4,338.4
3,782.9
487.8
25.0
42.7
990.8
331.0
243.1
1,853.7
530.8
968.5
715.6
1,036.2
1,050.5
103.9
1,201.9
2,112.3
1,280.8
639.9
33.0
45.9
211.4
166.4

2,915.9
1,889.2
257.0
37.4
732.3
219.9
2,603.3
18,689.7
485.1
4,383.3
3,847.6
465.7
25.0
45.0
1,011.4
342.5
243.7
1,876.0
532.1
1,006.0
724.9
1,001.8
1,078.1
105.0
1,267.1
2,182.8
1,355.7
660.9
35.6
45.3
160.2
192.2

17,206.4

18,454.5

19,823.7

21,278.1

21,278.1

21,783.9

22,286.0

22,764.5

23,402.9

24,005.5

24,428.7

53.2
8.0
17.6
373.9
280.1
1,242.0
2,183.2
411.2
602.9
549.5
1,477.3
279.0
520.3
4,948.1
1,140.6
101.4
699.4
5,287.2

63.7
10.2
18.2
418.8
290.7
1,229.3
2,279.7
476.9
745.3
660.0
1,852.8
305.7
566.2
5,767.8
1,242.3
107.6
803.0
5,634.7

53.7
9.7
18.3
516.1
240.8
1,245.1
2,377.0
590.9
891.1
701.5
2,342.4
358.1
610.6
6,642.5
1,328.4
123.6
871.7
6,098.8

48.9
9.2
18.3
618.8
219.4
1,286.6
2,474.1
713.4
1,048.7
822.4
2,989.4
469.1
665.0
7,894.4
1,424.6
140.4
1,082.8
6,663.5

48.9
9.2
18.3
618.8
219.4
1,286.6
2,474.1
713.4
1,048.7
822.4
2,989.4
469.1
665.0
7,894.4
1,424.6
140.4
1,082.8
6,663.5

48.2
9.2
18.4
607.2
179.6
1,259.2
2,525.4
760.9
1,130.7
889.3
3,339.3
505.3
677.3
8,583.1
1,419.2
151.7
1,179.5
6,737.3

50.1
9.2
18.4
630.4
189.1
1,320.7
2,531.0
754.0
1,153.7
861.5
3,438.4
540.6
690.6
8,730.8
1,405.0
144.4
1,204.9
6,807.2

54.5
9.2
18.8
651.7
198.7
1,282.3
2,553.8
776.5
1,249.7
918.9
3,137.3
579.0
703.5
8,194.6
1,418.3
154.7
1,118.9
7,024.1

60.1
9.2
18.3
639.9
187.7
1,334.2
2,626.5
805.5
1,334.2
875.0
3,610.5
577.4
718.3
9,160.7
1,424.3
153.4
1,274.2
7,094.4

53.6
8.2
18.3
671.8
180.5
1,311.5
2,638.6
804.3
1,416.0
980.3
3,760.8
552.7
730.9
9,335.8
1,430.4
159.6
1,317.0
7,087.4

50.9
8.2
18.5
700.4
196.4
1,354.3
2,646.6
809.0
1,398.1
961.4
4,029.9
576.7
747.4
9,770.1
1,454.6
158.4
1,402.7
7,184.8

37381.6

1 T o t a l c r e d i t m a r k e t assets
7 Domestic nonfederal nonfinancial sectors
Household
4
Nonfinancial corporate business
N o n f a r m noncorporate business
6
State and local g o v e r n m e n t s
7 Federal g o v e r n m e n t
8 Rest of the world
9 Financial sectors
10
M o n e t a r y authority
C o m m e r c i a l banking
11
P
U.S.-chartered banks
Foreign banking offices in United States
N
Bank holding c o m p a n i e s
14
B a n k s in U.S.-affiliated areas
15
Savings institutions
16
Credit unions
17
18
Bank personal trusts and estates
19
Life insurance c o m p a n i e s
Other insurance c o m p a n i e s
?N
71
Private pension f u n d s
??
State and local government retirement funds
M o n e y market mutual f u n d s
73
Mutual f u n d s
?4
Closed-end f u n d s
75
26
G o v e r n m e n t - s p o n s o r e d enterprises
77
Federally related m o r t g a g e p o o l s
78
Asset-backed securities issuers ( A B S s )
?9
Finance c o m p a n i e s
30
Mortgage companies
31
Real estate investment trusts (REITs)
3?
Brokers and dealers
Funding corporations
33

40,927.2

44,843.8

49,867.0

49,867.0

51,804.7

52,765.9

52,809.1

55,306.8

56,463.3

57,897.0

21.1
6,237.9
3,410.5

22.1
8,331.3
3,658.3

21.4
10,062.4
3,864.5

21.1
12,776.0
4,213.4

21.1
12,776.0
4,213.4

21.2
14,397.6
4,039.4

21.0
14,556.1
4,255.1

21.2
12,758.4
4,265.5

21.6
15,437.7
4,288.4

20.7
15,970.3
4,293.4

20.8
17,137.5
4,257.7

-5.4
325.4
-6.5
66.2
48.8
-948.1

-5.8
360.2
-9.0
86.4
62.4
-1,350.8

-6.7
431.4
-10.6
90.9
76.7
-1,714.9

-7.3
534.0
-32.2
153.1
93.5
-2,087.0

-7.3
534.0
-32.2
153.1
93.5
-2,087.0

-7.4
510.1
-21.2
187.4
89.6
-2,259.2

-7.4
540.1
-17.1
140.9
95.6
-2,311.2

-7.2
557.6
-15.4
175.2
101.9
-2,449.9

-8.0
539.7
-27.0
168.4
103.9
-2,719.9

-8.4
555.1
-11.3
263.0
90.6
-2,953.5

-8.5
573.5
-10.5
255.6
108.2
-2,998.9

3.4
38.0
-245.9

3.1
34.2
-257.5

-1.6
30.1
-307.7

-8.1
26.2
-314.5

-8.1
26.2
-314.5

-10.4
21.4
-358.1

-16.1
24.2
-412.2

-12.0
15.7
-440.1

-3.9
23.1
-373.7

-7.2
18.9
-415.3

-12.4
22.1
-432.3

47,775.0

54,015.9

60,204.6

68,519.7

68,519.7

72,110.7

73,561.4

71,928.4

77,351.9

79,215.7

81,816.2

RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 T o t a l c r e d i t m a r k e t d e b t

35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
51
52

Other
liabilities
Official foreign e x c h a n g e
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank liabilities
C h e c k a b l e deposits and currency
Small time and savings deposits
L a r g e time deposits
M o n e y market f u n d shares
Security repurchase agreements
Mutual f u n d shares
Security credit
L i f e insurance reserves
Pension f u n d reserves
Trade payables
Taxes payable
Investment in bank personal trusts
Miscellaneous

53 T o t a l liabilities
Financial assets not included in liabilities
(+)
54 Gold and special drawing rights
55 Corporate equities
56 H o u s e h o l d equity in noncorporate business

57
58
59
60
61
62

Liabilities not identified as assets
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements

(—)

Miscellaneous

Floats not included in assets (—)
63 Federal g o v e r n m e n t checkable deposits
64 Other checkable deposits
65 Trade credit
66 T o t a l i d e n t i f i e d t o s e c t o r s a s a s s e t s

1. Data in this table also appear in the B o a r d ' s Z . l (780) quarterly statistical release, tables
L . l and L.5. F o r ordering address, see inside front cover.




2. Excludes corporate equities and mutual f u n d

A42
2.10

Domestic Nonfinancial Statistics • January 2000
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, and indexes 1992=100, except as noted
1999
Measure

1996r

1997r

1998r
Feb. r

Mar.r

Apr/

May r

June r

July r

Aug. r

Sept.r

Oct.

1 Industrial production 1

119.4 r

127.1 r

132.4 r

134.5

135.1

135.5

136.2

136.6

137.4

137.6

137.6

138.5

Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

114.2r
115.3r
112.4r
120.4r
110.8r
127.8

119.6
121.1
115.r
i32.r
115.3r
139.0r

123.7r
125.4
116.2r
142.7r
118.8r
146.5r

125.8
127.3
117.2
144.9
121.3
148.7

126.0
127.3
116.7
145.9
121.6
150.3

126.2
127.6
116.5
147.0
121.7
150.8

126.8
128.2
116.8
148.4
122.3
151.7

126.8
128.3
117.0
148.3
121.7
153.1

126.9
128.6
116.8
149.3
121.5
155.0

127.3
129.1
117.4
149.8
121.6
154.8

126.9
128.5
116.5
149.6
122.1
155.7

127.9
129.6
118.2
149.7
122.6
156.2

121.3r

130.1r

136.4r

139.3

139.7

140.2

141.0

141.4

142.0

142.4

142.6

143.4

81.5r

82.4 r

80.9r

79.7

79.6

79.5

79.7

79.6

79.7

79.7

79.5

79.7

10 Construction contracts 3

131.0r

143.3r

157.5r

168.0

166.0

171.0

172.0

177.0

171.0

162.0

165.0

165.0

11 Nonagricultural employment, total 4
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
Service-producing
15
16 Personal income, total
17
Wages and salary disbursements
Manufacturing
18
19
Disposable personal income 5
20 Retail sales5

117.3
2.4
97.4
98.6
123.1
165.2r
159.7r
135.6r
164.1r
162.5

120.3
2.4
98.2
99.6
126.5
175.4r
171.3r
144.6r
172.9r
170.1

123.4
2.3
98.5
99.6
130.1
185.7r
184.4r
152.4r
181.7r
178.5

125.3
102.7
97.6
98.3
132.5
192.7
192.8
154.4
188.1
190.0

125.4
102.5
97.4
98.2
132.7
193.2
193.2
154.4
188.8
189.8

125.7
102.5
97.2
98.0
133.1
194.1
194.3
155.1
189.7
190.9

125.7
102.1
97.0
97.8
133.2
194.9
195.2
155.9
190.3
192.8

126.0
102.1
96.8
97.5
133.6
196.4
196.3
156.8
191.8
192.6

126.3
102.3
97.1
98.0
134.0
197.0
197.8
158.2
192.1
194.5

126.5
101.9
96.7
97.4
134.3
197.8
198.6
158.0
193.3
197.1

126.5
102.0
96.7
97.4
134.3
197.9
199.4
159.1
192.8
196.9

126.8
102.1
96.6
97.4
134.7
200.4
200.7
159.5
195.6
196.9

Prices6
21 Consumer (1982-84=100)
22 Producer finished goods (1982=100)

156.9
131.3

160.5
131.8

163.0
130.7

164.5
130.8

165.0
131.1

166.2
131.9

166.2
132.4

166.2
132.7

166.7
132.9

167.1
133.7

167.9
134.8

168.2
135.0

2
3
4
5
6
7

Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing (percent) 2 ..

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83
(February 1997), pp. 67-92, and the references cited therein. For details about the construction of individual industrial production series, see "Industrial Production: 1989 Developments
and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources.

2.11

3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey of Current Business.

LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted
1999
Category

1996

1997

1998
Mar.

Apr.

May

June

July

Aug. r

Sept. r

Oct.

H O U S E H O L D SURVEY D A T A 1

1 Civilian labor force 2
Employment
2
Nonagricultural industries 3
3
Agriculture
Unemployment
4
Number
5
Rate (percent of civilian labor force)

133,943

136,297

137,673

138,816

139,091

139,019

139,408

139,254

139,264

139,386

139,662

123,264
3,443

126,159
3,399

128,085
3,378

129,752
3,281

129,685
3,384

129,929
3,295

130,078
3,354

130,015
3,292

130,192
3,219

130,413
3,137

130,693
3,203

7,236
5.4

6,739
4.9

6,210
4.5

5,783
4.2

6,022
4.3

5,795
4.2

5,975
4.3

5,947
4.3

5,853
4.2

5,836
4.2

5,766
4.1

119,608

122,690

125,833

127,813

128,134

128,162

128,443

128,816

128,945

128,986

129,296

18,495
580
5,418
6,253
28,079
6,911
34,454
19,419

18,657
592
5,686
6,395
28,659
7,091
36,040
19,570

18,716
575
5,965
6,551
29,299
7,341
37,525
19,862

18,503
550
6,232
6,732
29,558
7,595
38,556
20,087

18,473
538
6,277
6,750
29,689
7,611
38,697
20,099

18,429
531
6,239
6,758
29,725
7,621
38,782
20,077

18,396
526
6,258
6,781
29,789
7,636
38,952
20,105

18,449
528
6,270
6,799
29,915
7,647
39,055
20,153

18,378
524
6,246
6,813
29,919
7,650
39,205
20,210

18,364
525
6,274
6,837
29,891
7,643
39,245
20,207

18,349
529
6,302
6,854
29,881
7,661
39,460
20,260

ESTABLISHMENT SURVEY D A T A

6 Nonagricultural payroll employment 4
7
8
9
10
11
12
13
14

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. Persons sixteen years of age and older, including Resident Armed Forces. Monthly
figures are based on sample data collected during the calendar week that contains the twelfth
day; annual data are averages of monthly figures. By definition, seasonality does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.




4. Includes all full- and part-time employees who worked during, or received pay for, the
pay period that includes the twelfth day of the month; excludes proprietors, self-employed
persons, household and unpaid family workers, and members of the armed forces. Data are
adjusted to the March 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.

Selected Measures
2.12

A43

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION 1
Seasonally adjusted

1999'

1998

1999r

1998

1999r

1998

Series
Q4 r

Ql

Q2

Q3

Q4 r

Ql

Q3

Q2

Capacity (percent of 1992 output)

Output (1992=100)

Q4 r

Ql

Q2

Q3

Capacity utilization rate (percent) 2

133.9

136.1

137.5

165.3

167.3

169.2

170.7

81.0

80.4

80.5

80.6

139.2

140.9

142.3

172.5

174.8

176.9

178.7

80.2

79.6

79.6

79.6

121.1
147.4

122.2
148.1

122.5
150.5

123.5
152.2

146.4
185.6

147.4
188.6

148.2
191.4

149.0
193.7

82.8
79.4

82.9
78.5

82.7
78.6

82.9
78.5

165.8
120.7
121.8
114.9
130.4
215.6
341.6
148.7
13

134.6

138.3

167.1
122.2
122.3
116.9
129.1
221.3
349.4
147.5

170.8
122.5
125.1
121.4
129.6
227.9
374.6
150.6

174.3
120.5
128.8
126.6
131.6
230.7
402.1
153.2

206.0
144.2
146.5
146.9
146.0
256.5
438.8
184.6

210.3
145.3
147.6
148.5
146.5
265.7
461.8
184.8

214.2
146.3
148.5
150.0
146.8
275.5
482.0
184.8

217.6
147.4
149.3
151.3
147.0
285.3
498.5
184.9

80.5
83.7
83.2
78.3
89.3
84.1
77.9
80.6

79.5
84.1
82.9
78.7
88.1
83.3
75.7
79.8

79.8
83.7
84.2
80.9
88.3
82.7
77.7
81.5

80.1
81.8
86.3
83.7
89.5
80.9
80.7
82.9

Aerospace and miscellaneous
102.4

98.9

95.9

94.0

126.6

126.8

126.6

126.2

80.9

78.0

75.7

74.4

111.3
106.7
114.5
115.1
123.5
114.0

111.8
109.6
115.8
115.9
122.9
116.3

111.6
111.1
115.1
116.3
123.5
114.1

111.2
111.1
116.0
116.3
123.4
114.9

138.5
131.4
133.0
149.5
134.6
121.1

139.1
131.4
133.8
150.0
135.9
121.8

139.5
131.5
134.5
150.4
137.2
122.2

139.9
131.6
135.3
150.7
138.4
122.7

80.3
81.2
86.1
77.0
91.7
94.1

80.4
83.4
86.6
77.3
90.4
95.6

80.0
84.5
85.6
77.3
90.0
93.3

79.5
84.4
85.7
77.2
89.2
93.7

100.4
113.0
116.5

97.6
114.6
116.6

97.1
116.6
118.9

98.1
118.0
120.3

120.4
126.5
124.3

120.4
126.9
124.7

120.3
127.3
125.2

120.2
127.8
125.6

83.3
89.3
93.7

81.1
90.3
93.5

80.7
91.6
95.0

81.6
92.4
95.8

1973

1975

Previous cycle 5

High

Low

High

Low

Latest cycle 6
High

Low

1998
Oct.

1999
May

June

July r

Aug.1"

Sept. r

Oct. p

Capacity utilization rate (percent) 2
1 Total industry

89.2

72.6

87.3

71.1

85.4

78.1

81.5

80.5 r

80.5 r

80.7

80.6

80.4

80.7

2 Manufacturing

88.5

70.5

86.9

69.0

85.7

76.6

80.5

19.1'

79.7

79.7

79.5

79.7

91.2
87.2

68.2
71.8

88.1
86.7

66.2
70.4

88.9
84.2

77.7
76.1

82.7
79.9

82.7 r
78.7 r

19.6'
9,2.7

78.6 r

82.9
78.6

82.9
78.6

82.9
78.4

83.1
78.6

89.2
88.7
100.2
105.8
90.8

68.9
61.2
65.9
66.6
59.8

87.7
87.9
94.2
95.8
91.1

63.9
60.8
45.1
37.0
60.1

84.6
93.6
92.7
95.2
89.3

73.1
75.5
73.7
71.8
74.2

81.1
83.3
83.9
79.4
89.4

19.1'

19.9'
83.3 r
85.6 r
82.8 r
r
89. l

80.3
82.7
85.9
83.7
88.6

80.1
81.6
87.1
84.5
90.3

79.9
81.1
85.8
82.9
89.6

79.8
80.8
87.2
85.1
89.7

96.0
89.2
93.4

74.3
64.7
51.3

93.2
89.4
95.0

64.0
71.6
45.5

85.4
84.0
89.1

72.3
75.0
55.9

84.8
78.5
81.9

11 A'

82.9 r

81.8 r
78.7 r
82.7 r

81.5
80.9
82.3

80.5
81.0
82.3

80.6
80.1
84.0

80.2
80.5
83.4

78.4

67.6

81.9

66.6

87.3

79.2

81.9

75.8 r

74.9

75.0

73.4

71.9

87.8
91.4
97.1
87.6
102.0
96.7

71,7
60.0
69.2
69.7
50.6
81.1

87.5
91.2
96.1
84.6
90.9
90.0

76.4
72.3
80.6
69.9
63.4
66.8

87.3
90.4
93.5
86.2
97.0
88.5

80.7
77.7
85.0
79.3
74.8
85.1

80.4
81.2
87.3
76.7
89.5
93.0

80.2 r
84.4 r
85.2 r
77.8 r
90.5 r
93.4 r

89.5
92.6 r

79.4
85.3
85.2
76.9
90.9
93.9

79.6
84.6
85.6
77.6
87.8
93.4

79.5
83.4
86.5
77.1
88.9
93.8

80.1
83.9
86.3
78.3
90.6
94.3

94.3
96.2
99.0

88.2
82.9
82.7

96.0
89.1
88.2

80.3
75.9
78.9

88.0
92.6
95.0

87.0
83.4
87.1

84.3
91.5
95.9

81.0 r
91.l r
94.6 r

80.7 r
92.1 r
95.5 r

81.3
93.9
97.7

81.8
92.2
95.5

81.6
91.1
94.2

81.7
92.7
96.2

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

Primary processing 3
Advanced processing 4
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
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

20 Mining
21 Utilities
22
Electric

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83
(February 1997), pp. 67-92, and the references cited therein. For details about the construction of individual industrial production series, see "Industrial Production: 1989 Developments
and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.




84.7 r
83.5 r
80. l r
87.6 r

81.5

r

15.2'
19.1'
84.2 r

85.9'

11.3'

3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing
and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather
and products; machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.

A44
2.13

Domestic Nonfinancial Statistics • January 2000
INDUSTRIAL PRODUCTION

Indexes and Gross Value1

Monthly data seasonally adjusted

Group

1992
proportion

1998r

1999

1998
avg.
Oct.

Nov.

Dec.

Jan. r

Feb/

Mar/

Apr/

May r

June r

July r

Aug/

Sept/

Oct.?

Index (1992 = 100)
MAJOR MARKETS

1 Total index

100.0

132.4

134.1

133.8

133.8

134.1

134.5

135.1

135.5

136.2

136.6

137.4

137.6

137.6

138.5

2 Products
Final products
4
Consumer goods, total
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods . . . .
11
Other
12
Appliances, televisions, and air
conditioners
13
Carpeting and furniture
14
Miscellaneous home goods
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities

60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5

123.7
125.4
116.2
142.7
134.7
138.4
109.2
166.2
128.6
149.0

125.8
127.5
116.0
146.2
143.4
151.4
119.9
181.0
131.5
147.6

125.1
126.8
115.6
145.4
142.0
150.2
113.7
183.2
129.9
147.3

124.9
126.0
115.1
146.0
141.7
148.2
115.5
179.1
131.8
148.8

125.4
126.6
116.3
149.1
143.7
149.4
111.7
185.2
134.8
152.8

125.8
127.3
117.2
150.9
142.0
148.7
109.0
187.2
131.8
158.0

126.0
127.3
116.7
149.9
140.0
147.0
110.8
182.5
129.3
157.8

126.2
127.6
116.5
152.0
142.0
149.0
112.8
185.7
131.4
160.0

126.8
128.2
116.8
152.8
145.4
153.2
108.8
197.2
133.6
158.3

126.8
128.3
117.0
154.0
147.4
157.5
112.4
202.0
132.5
158.8

126.9
128.6
116.8
153.4
143.7
148.9
107.2
184.0
135.3
161.1

127.3
129.1
117.4
155.7
150.6
162.9
115.9
213.6
132.8
159.2

126.9
128.5
116.5
152.7
145.5
152.8

127.9
129.6
118.2
155.3
146.5
154.4

134.1
158.2

134.4
162.2

1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1

262.8
117.9
115.2
109.9
108.6
95.2
120.9
105.6
112.6
110.5
113.1

268.2
120.2
110.5
108.9
108.0
92.5
119.1
104.4
113.8
108.1
116.0

273.3
117.7
110.1
108.6
108.4
91.3
122.0
103.4
106.3
109.6
104.7

283.5
115.9
111.0
107.9
107.2
91.3
120.2
102.8
108.6
110.1
107.6

299.7
121.1
111.0
108.7
108.4
91.7
119.7
101.5
113.1
112.2
113.3

320.0
122.8
113.6
109.3
109.4
92.0
122.8
100.4
109.9
113.4
108.2

317.6
119.6
115.7
108.9
108.4
91.3
121.6
98.8
115.4
110.7
117.2

325.8
120.2
116.9
108.3
107.8
91.8
118.7
99.9
115.1
111.5
116.4

311.1
121.0
117.2
108.4
107.7
90.2
120.5
100.3
114.7
110.9
116.1

319.0
121.0
116.2
108.4
107.3
90.2
120.2
101.5
115.3
109.9
117.4

329.9
124.1
115.9
108.3
106.7
89.2
119.4
102.0
118.6
111.1
121.7

320.4
123.0
115.4
108.7
106.5
89.4
121.6
103.2
116.6
110.0
119.3

316.8
122.8
114.7
108.1
106.2
88.5
119.5
104.6
116.1
111.2
117.9

341.1
123.6
115.6
109.6
107.0
88.9
122.8
105.9
118.5
113.5
120.4

23
24
25
26
27
28
29
30
31
32
33

Equipment
Business equipment
Information processing and related
Computer and office equipment
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes

17.2
13.2
5.4
1.1
4.0
2.5
1.2
1.3
3.3
.6
.2

142.7
161.2
205.7
526.9
139.0
130.0
123.3
139.8
75.4
134.6
166.3

147.5
168.4
220.1
628.6
139.7
138.7
134.9
141.4
76.3
119.2
168.5

146.3
167.0
219.4
642.8
138.1
137.2
133.8
139.7
75.8
116.0
171.2

145.2
166.3
220.9
657.8
138.6
134.8
131.0
133.0
75.2
105.2
172.5

144.6
165.9
223.0
677.5
137.0
132.8
130.9
132.6
75.0
99.8
173.3

144.9
166.3
224.5
703.1
135.8
131.2
128.9
139.9
75.4
97.4
169.2

145.9
167.5
229.2
736.1
135.2
129.5
129.0
143.0
75.6
100.8
168.8

147.0
169.4
236.9
773.0
136.0
129.4
130.7
135.7
75.1
97.2
164.7

148.4
171.2
244.3
805.8
135.3
128.9
131.2
134.0
75.2
99.8
161.3

148.3
171.2
248.2
830.2
133.7
128.2
132.2
130.2
74.6
100.1
158.9

149.3
172.6
253.8
851.9
135.4
127.5
131.2
123.8
74.5
102.0
151.5

149.8
172.9
257.0
871.7
133.5
128.0
135.3
123.0
74.7
107.1
151.3

149.6
172.8
257.7
887.1
134.0
124.3
131.2
126.4
73.7
111.3
132.5

149.7
172.7
260.5
905.5
134.5
121.0
130.1
123.7
73.9
115.1
130.0

34
35
36

Intermediate products, total
Construction supplies
Business supplies

14.2
5.3
8.9

118.8
128.0
113.4

120.4
129.8
114.9

120.0
130.3
113.9

121.1
132.2
114.5

121.4
133.3
114.3

121.3
132.5
114.7

121.6
131.7
115.6

121.7
131.3
116.1

122.3
132.9
116.1

121.7
132.6
115.3

121.5
133.2
114.6

121.6
133.0
114.8

122.1
133.8
115.1

122.6
134.3
115.6

37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
Converted fuel materials
50

39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
2.1
9.7
6.3
3.3

146.5
182.1
146.2
295.6
130.2
122.8
112.7
106.9
115.7
112.9
112.4
103.1
101.0
107.8

147.6
187.0
147.4
316.4
129.5
119.5
111.3
100.6
115.3
111.2
113.0
103.2
101.5
106.2

147.9
187.7
145.5
319.6
130.3
118.6
111.8
102.7
112.8
112.7
113.7
102.1
100.4
105.3

148.5
189.2
147.2
322.1
131.2
119.3
111.7
101.8
114.4
111.3
114.6
101.6
98.8
107.0

148.2
188.8
145.4
323.1
130.8
119.1
111.3
96.5
116.1
111.6
113.4
101.8
99.1
106.8

148.7
189.2
148.4
324.4
129.8
116.8
112.4
100.2
115.6
112.8
114.4
101.7
99.1
106.7

150.3
191.9
149.9
331.5
130.9
119.8
112.7
101.2
116.3
113.6
113.3
102.4
99.1
108.9

150.8
193.1
147.7
340.5
130.4
120.1
112.8
101.8
116.5
114.2
111.9
102.2
97.3
111.7

151.7
194.3
148.4
345.0
130.4
119.9
113.8
101.8
115.3
116.0
114.2
102.2
98.3
109.9

153.1
197.2
150.5
355.2
130.6
122.6
114.2
101.2
117.7
116.9
112.0
101.6
98.9
106.8

155.0
200.3
153.9
364.6
131.1
122.8
114.5
101.2
116.3
117.7
113.0
102.9
100.2
108.0

154.8
200.2
147.4
370.8
131.5
123.7
114.4
101.0
116.2
117.5
113.2
102.4
100.4
106.1

155.7
202.7
156.3
371.6
131.5
122.4
114.5
100.1
118.8
117.4
111.9
101.5
98.9
106.3

156.2
203.2
154.9
374.7
131.8
124.4
115.0
100.2
119.0
117.7
113.3
102.1
99.2
107.9

97.1
95.1

132.4
131.9

133.9
133.3

133.6
133.1

133.7
133.2

133.9
133.5

134.4
133.9

135.1
134.6

135.4
134.9

136.1
135.6

136.4
135.9

137.3
136.7

137.3
136.9

137.5
136.8

138.4
137.8

98.2
27.4
26.2

128.1
115.0
116.7

129.2
114.2
116.3

128.8
113.8
116.7

128.7
113.4
115.9

128.8
114.6
116.7

129.1
115.5
118.0

129.5
115.1
116.9

129.7
114.8
116.7

130.2
114.8
117.0

130.6
114.8
117.2

131.2
115.0
116.6

131.3
115.1
117.6

131.3
114.6
116.6

132.0
116.3
118.2

12.0

165.6

172.2

170.8

170.3

169.9

170.6

171.9

173.8

175.7

175.7

177.4

177.2

177.5

177.5

12.1
29.8

142.6
160.2

146.5
161.7

144.8
162.4

143.7
163.3

142.7
162.9

142.4
163.6

142.6
165.5

143.4
166.3

144.2
167.4

143.6
169.5

144.4
171.6

144.1
171.5

143.6
173.1

143.1
173.6

SPECIAL AGGREGATES

51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Total excluding computer and office
equipment
54 Consumer goods excluding autos and trucks .
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy




Selected Measures
2.13

INDUSTRIAL PRODUCTION

Group

Indexes and Gross Value1—Continued
1992
proportion

SIC

code

A45

1998r

1999

1998
avg.
Oct.

Nov.

Dec.

Jan. r

Feb. r

Mar. r

Apr/

May r

June r

July r

Aug/

Sept/

Oct. p

Index (1992 = 100)

M A J O R INDUSTRIES

100.0

132.4

134.1

133.8

133.8

134.1

134.5

135.1

135.5

136.2

136.6

137.4

137.6

137.6

138.5

85.4
26.5
58.9

136.4
121.2
144.0

138.3
120.7
147.5

138.3
120.8
147.5

138.4
121.9
147.2

138.6
122.2
147.2

139.3
122.1
148.4

139.7
122.4
148.8

140.2
122.2
149.6

141.0
122.5
150.7

141.4
122.7
151.2

142.0
123.3
151.8

142.4
123.5
152.3

142.6
123.8
152.4

143.4
124.3
153.4

24
25

45.0
2.0
1.4

160.7
118.5
122.0

165.8
119.8
124.2

165.4
119.9
123.7

166.2
122.5
123.3

166.3
122.6
122.7

166.8
122.3
124.6

168.1
121.7
125.8

169.4
121.5
123.8

170.8
123.9
124.4

172.2
122.2
124.4

173.8
121.5
125.7

174.3
120.2
126.7

174.8
119.8
127.8

175.5
119.6
127.1

32
33
331,2
331PT
333-6,9
34

2.1
3.1
1.7
.1
1.4
5.0

126.8
125.6
122.6
115.3
129.4
128.8

128.4
122.5
116.2
110.0
130.4
128.1

130.1
120.5
112.1
101.6
130.9
128.6

131.8
122.5
116.5
102.7
130.0
129.8

133.1
122.9
118.1
106.8
128.9
129.0

132.2
120.1
114.6
106.8
127.0
128.4

130.8
124.0
118.1
108.3
131.4
128.5

128.8
123.9
119.4
109.3
129.4
128.0

128.5
123.9
120.1
111.4
128.6
127.2

127.8
127.4
124.5
110.7
130.8
128.3

129.3
128.0
126.2
111.1
130.2
128.6

130.1
130.0
127.9
115.9
132.7
128.8

130.2
128.4
125.7
112.4
131.7
129.0

130.4
130.6
129.5
118.4
132.0
129.7

59 Total index
60 Manufacturing
61
Primary processing
62 Advanced processing
63
64
65
66

35

8.0

206.4

215.0

215.3

216.6

217.5

221.7

224.6

227.0

228.4

228.2

230.0

229.7

232.5

234.2

357
36
37
371
371PT

1.8
7.3
9.5
4.9
2.6

675.1
315.1
121.6
141.7
127.8

786.8
338.2
127.1
151.1
139.9

805.3
341.7
124.9
148.0
138.1

832.2
344.8
123.9
147.1
136.4

868.1
346.7
122.7
146.5
136.5

907.1
347.5
123.2
147.8
135.0

947.6
354.0
122.6
148.1
134.0

987.5
366.4
122.1
148.4
135.7

1,021.6
373.3
122.8
150.6
138.3

1,048.2
384.2
123.5
152.9
142.0

1,075.1
399.2
122.9
152.2
135.8

1,101.6
403.9
122.9
152.2
146.9

1,123.5
403.2
123.2
155.4
139.5

1,149.3
409.5
121.7
154.3
140.2

79
80

Durable goods
Lumber and products
Furniture and fixtures
Stone, clay, and glass
products
Primary metals
Iron and steel
Raw steel
Nonferrous
Fabricated metal products . .
Industrial machinery and
equipment
Computer and office
equipment
Electrical machinery
Transportation equipment. . .
Motor vehicles and parts .
Autos and light trucks .
Aerospace and
miscellaneous
transportation
equipment
Instruments
Miscellaneous

372-6,9
38
39

4.6
5.4
1.3

101.7
112.6
122.0

103.6
114.4
120.5

102.3
U 3.0
119.5

101.2
112.8
120.8

99.4
113.3
120.6

99.3
112.9
121.8

97.9
113.7
122.9

96.5
115.1
124.2

96.0
116.7
125.5

95.2
117.0
124.5

94.7
117.2
125.2

94.7
116.9
125.2

92.5
117.0
125.2

90.5
117.4
126.4

81
82
83
84
85
86
87
88
89
90
91

Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing . . . .
Chemicals and products . . . .
Petroleum products
Rubber and plastic products .
Leather and products

"20
21
22
23
26
27
28
29
30
31

40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1.4
3.5
.3

111.6
109.3
106.2
110.9
96.6
114.9
105.1
115.1
113.3
133.2
77.1

111.2
109.5
100.7
106.6
94.8
115.8
105.1
114.4
112.5
133.6
75.0

111.6
110.9
96.0
107.0
93.3
112.8
105.1
116.2
114.8
134.9
75.1

111.1
110.3
91.1
106.4
93.2
114.9
105.3
114.7
114.8
135.6
73.2

111.3
111.0
94.8
108.0
92.3
115.7
104.3
114.5
117.2
135.4
71.9

112.3
111.4
99.2
110.5
92.2
115.9
104.3
116.6
117.0
135.6
71.5

111.8
110.9
95.4
110.1
91.8
115.9
103.7
116.8
114.9
135.8
71.3

111.5
110.6
94.1
111.4
92.4
115.0
104.2
115.6
114.6
136.2
70.6

111.9
110.6
95.4
110.9
91.2
114.6
104.1
117.0
114.2
137.4
70.9

111.3
110.0
94.5
110.8
90.7
115.7
103.5
116.3
113.4
136.4
71.3

111.0
108.9
96.0
112.3
89.8
115.0
102.8
115.8
115.1
138.0
69.1

111.3
108.9
94.8
111.3
88.7
115.8
103.6
117.0
114.5
137.6
70.2

111.3
109.4
91.0
109.8
87.8
117.3
104.1
116.2
115.1
139.3
70.1

112.2
109.8
92.8
110.6
88.4
117.3
104.9
118.2
115.9
138.7
69.0

10
12
13
14

6.9
.5
1.0
4.8
.6

103.8
109.1
109.7
99.5
123.4

101.6
106.5
110.9
96.4
122.6

101.5
109.4
112.4
94.7
128.9

98.1
106.6
109.2
91.5
124.1

98.0
102.9
107.7
91.2
129.4

97.4
101.3
108.9
90.7
127.1

97.5
98.5
103.9
92.1
126.6

96.7
100.5
107.3
90.8
121.8

97.4
100.2
106.1
91.8
123.9

97.1
98.9
107.0
91.4
123.3

97.8
96.2
110.0
92.3
120.5

98.4
93.3
110.7
93.3
120.2

98.1
93.6
109.5
93.1
120.7

98.2
95.0
108.9
93.4
118.9

491.493PT
492.493PT

7.7
6.2
1.6

114.4
116.9
103.2

115.6
119.0
100.1

110.8
114.7
93.3

112.5
115.9
97.5

114.5
115.8
108.8

112.6
114.9
102.5

116.8
119.1
106.4

116.3
118.6
105.7

116.1
118.4
105.8

117.4
119.6
107.5

119.8
122.6
107.4

117.8
120.0
108.2

116.5
118.4
108.0

118.7
121.1
108.0

80.5

136.1

137.6

137.8

138.0

138.2

138.9

139.3

139.8

140.5

140.8

141.4

141.9

141.9

142.8

83.6

131.4

132.5

132.5

132.5

132.4

133.0

133.1

133.4

134.1

134.3

134.8

135.0

135.1

135.8

5.9

563.8

633.9

645.5

656.4

665.0

676.0

700.3

731.6

81.1

120.4

121.0

120.7

120.7

120.6

121.1

121.0

120.9

121.3

121.2

121.3

121.5

121.5

122.1

79.5

118.5

119.0

118.8

118.7

118.6

119.1

118.9

118.7

119.1

118.9

118.9

118.9

119.0

119.5

67
68
69
70
71
72
73
74
75
76
77
78

92 Mining
93 Metal
94
Coal
95 Oil and gas extraction
96
Stone and earth minerals
97 Utilities
98
Electric
99
Gas
SPECIAL AGGREGATES

100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding
computer and office
equipment
102 Computers, communications
equipment, and
semiconductors
103 Manufacturing excluding
computers and
semiconductors
104 Manufacturing excluding
computers, communications
equipment, and
semiconductors

753.3

780.5

812.1

830.0

836.3

849.8

Gross value (billions of 1992 dollars, annual rates)

Major Markets
105 Products, total

2,001.9

2,642.2

2,690.7

2,677.2

2,674.9

2,693.7

2,699.9

2,701.8

2,710.2

2,721.9

2,723.6

2,726.1

2,736.6

2,727.1

2,746.7

106 Final

1,552.1

2,036.5

2,074.6

2,064.3

2,056.0

2,072.5

2,079.5

2,080.1

2,087.2

2,095.3

2,100.3

2,102.8

2,113.6

2,101.0

2,118.7

107 Consumer goods
108 Equipment
109 Intermediate

1,049.6
502.5
449.9

1,271.0
767.9
606.1

1,274.9
801.1
614.8

1,270.5
795.1
611.7

1,267.6
789.6
617.5

1,286.4
787.0
619.9

1,292.3
788.1
619.1

1,287.9
793.3
620.4

1,288.4
800.1
621.7

1,290.1
806.7
625.2

1,295.1
806.7
622.1

1,292.4
812.3
622.0

1,300.3
815.1
621.8

1,289.8
813.2
624.8

1,307.3
812.8
626.7

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in November 1999. The recent annual revision will be described in an article in
the February 2000 issue of the Bulletin. For a description of the methods of estimating
industrial production and capacity utilization, see "Industrial Production and Capacity Utiliza-




tion: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83
(February 1997), pp. 67-92, and the references cited therein. For details about the construction of individual industrial production series, see "Industrial Production: 1989 Developments
and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Standard industrial classification.

A46
2.14

Domestic Nonfinancial Statistics • January 2000
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1998
item

1996

1997

1999

1998
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July r

Aug. r

Sept.

Private residential real estate activity (thousands of units except as noted)

N E W UNITS

1
2
3
4
5
6
7
8
9
10
11
12
13

Permits authorized
One-family
Two-family or more
Started
One-family
Two-family or more
Under construction at end of period1
One-family
Two-family or more
Completed
One-family
Two-family or more
Mobile homes shipped

Price of units sold
of dollars)2
16 Median
17 Average

1,441
1,062
379
1,474
1,134
340
834
570
264
1,406
1,120
285
354

1,604
1,184
421
1.617
1,271
346
935
638
297
1,473
1,158
315
372

1,708
1,296
412
1,750
1,383
367
999
688
311
1,440
1,150
290
382

1,778
1,275
503
1,820
1,393
427
1,011
697
314
1,648
1,292
356
390

1,738
1,306
432
1,752
1,380
372
1,032
712
320
1,528
1,246
282
381

1,654
1,242
412
1,746
1,394
352
1,036
714
322
1,700
1,357
343
383

1,572
1,214
358
1,577
1,260
317
1,031
708
323
1,633
1,324
309
368

1,591
1,243
348
1,668
1,389
279
1,029
708
321
1,650
l,334 r
316 r
365

1,641
1,241
400
1,607
1,305
302
1,017
702
315
1,674
1,346
328
355

1,641
1,247
394
1,680
1,332
348
1,021
704
317
1,609
1,263
346
336

1,619
1,210
409
1,655
1,289
366
1,028
706
322
1,580
1,255
325
340

1,506
1,171
335
1,626
1,289
337
1,024
703
321
1,671
1,311
360
320

757
326

804
287

886
300

958
295

908
295

909
297

885
300

952
300

914
304

932
306

929
305

923
307

848
310

140.0
166.4

146.0
176.2

152.5
181.9

152.5
183.3

152.5
182.8

159.9
191.4

155.0
189.4

160.0
191.4

154.8
188.2

158.3
193.4

157.9
188.8

155.0
193.5

159.9
193.9

4,196

Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period1

1,426
1,070
356
1,477
1,161
316
819
584
235
1,406
1,123
283
361

4,381

4,970

5,340

5,060

5,140

5,420

5,250

5,000

5,630

5,400

5,240

5,130

115.8
141.8

121.8
150.5

128.4
159.1

128.5
159.6

130.3
162.8

128.1
159.6

129.6
162.3

130.7
163.8

132.8
167.4

136.9
174.2

136.0
171.9

137.4
174.3

134.4
170.2

(thousands

EXISTING UNITS (one-family)
18 Number sold
Price of units sold
of dollars)2
19 Median
20 Average

(thousands

Value of new construction (millions of dollars) 3

CONSTRUCTION

21 Total p u t in place

581,920

617,877

664,451

690,462

697,858

710,657

715,396

704,582

698,461

698,852

702,517

698,381

697,450

22 Private
23
Residential
24
Nonresidential
2b
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other

447,593
255,577
192,017
32,644
75,829
30,648
52,896

474,842
265,908
208,933
31,355
86,190
37,198
54,190

518,987
293,569
225,418
32,308
95,252
39,438
58,421

541,591
310,261
231,330
30,327
101,605
42,354
57,044

543,471
315,828
227,643
29,895
100,164
38,833
58,751

548,682
318,483
230,199
28,967
102,802
40,449
57,981

555,362
323,133
232,229
29,052
103,983
39,840
59,354

547,885
322,213
225,672
26,217
102,180
39,737
57,538

546,880
321,803
225,077
24,975
104,134
38,876
57,092

546,931
320,913
226,018
25,465
104,457
38,592
57,504

546,375
320,352
226,023
26,246
103,441
38,365
57,971

541,690
318,816
222,874
25,679
102,498
37,735
56,962

539,767
318,838
220,929
23,772
103,920
37,323
55,914

29 Public
30
Military
31
Highway
32
Conservation and development
33
Other

134,326
2,604
39,883
5,827
86,012

143,035
2,559
44,295
5,576
90,605

145,464
2,588
45,067
5,487
92,322

148,871
2,306
44,583
5,406
96,576

154,387
1,881
50,538
6,018
95,950

161,975
2,636
54,880
6,271
98,188

160,033
2,223
53,099
6,194
98,517

156,697
2,268
50,897
6,016
97,516

151,581
2,128
48,542
5,101
95,810

151,921
2,137
45,518
5,845
98,421

156,142
2,305
47,747
5,810
100,280

156,691
1,679
48,148
6,581
100,283

157,682
1,941
49,087
6,277
100,377

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 - 3 0 - 7 6 - 5 ) , issued by the
Census Bureau in July 1976.




SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are
private, domestic shipments as reported by the Manufactured Housing Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are
published by the National Association of Realtors. All back and current figures are available
from the originating agency. Permit authorizations are those reported to the Census Bureau
from 19,000 jurisdictions beginning in 1994.

Selected Measures
2.15

A47

CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 3 months earlier
(annual rate)

Change from 12
months earlier
Item

1999 r

1998
1998
Oct.

1999
Oct.

Dec. r

Change from 1 month earlier

Mar.

Index
level,
Oct.
1999

1999

June

Sept.

June

July

Aug.

Sept.

Oct.

CONSUMER PRICES2
(1982-84=100)
1.5

1 All items
2 Food
Energy items
4 All items less food and energy
Commodities
5
Services
6

2.6

2.0

1.5

2.9

4.2

.0

.3

.3

.4

.2

168.2

2.4
-9.1
2.3
.8
3.0

1.9
10.2
2.1
1.0
2.5

2.8
-5.1
2.5
2.5
2.5

1.7
5.8
.9
-3.0
2.7

1.7
14.2
2.3
2.0
2.5

2.5
29.4
2.5
2.5
2.3

.0
-1.2
.1
.0
.1

.2
2.1
.2
.1
.3

.2
2.7
.1
-.1
.2

.2
1.7
.3
.7
.2

.2
-.1
.2
.1
.3

165.1
111.6
178.3
145.3
197.2

-.7
.3
-10.3
2.1
-.3

2.7
.1
12.1
3.0
.3

2.2
.3
-8.9
8.3
.3

.6
2.1
5.7
-1.3
-.6

2.8
.0
23.2
.8
-.3

7.1
2.4
42.4
3.8
.6

.3r
— .4r
,lr
-,2r

.2
-.8r
3.1 r
,0r
-.1

.5
.4
3.7
-.1
.0

1.1
1.0
2.2
1.1
.2

-.1
-.7
-1.0
.3
.3

135.0
135.6
83.6
153.5
138.5

-2.3
-1.1

2.6
1.1

-4.5
-2.7

.3
-.9

6.1
3.1

6.6
2.7

,3 r
.3

.6
.4

.7
.2

.3
.1

.3
.4

125.9
134.2

-5.8
-29.3
-14.1

-4.0
36.6
7.0

-7.0
13.5
-24.3

4.1
-21.1
.9

-.8
163.8
8.6

1.2
121.9
26.6

,3 r
,0r
.8r

—4.6r

3.8
7.2
1.8

1.3
10.4
2.2

-.1
-4.8
2.4

99.6
89.6
142.5

PRODUCER PRICES
(1982=100)
7 Finished goods

8
9
10
11

Consumer foods
Consumer energy
Other consumer goods
Capital equipment

Intermediate
materials
12 Excluding foods and feeds
13 Excluding energy
Crude
14 Foods

materials

IS Energy

16 Other

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.




.(F

3.1 R

2.0 r

SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.

A48
2.16

Domestic Nonfinancial Statistics • January 2000
GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1998
Account

1996

1997

1999

1998
Q3

Q4

Ql

Q2

Q3

GROSS DOMESTIC PRODUCT

1 Total

7,813.2

8,300.8

8,759.9

8,797.9

8,947.6

9,072.7

9,146.2

9,295.3

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

5,237.5
616.5
1,574.1
3,047.0

5,524.4
642.9
1,641.7
3,239.8

5,848.6
698.2
1,708.9
3,441.5

5,889.6
696.9
1,716.6
3,476.1

5,973.7
722.8
1,742.9
3,508.0

6,090.8
739.0
1,787.8
3,564.0

6,200.8
751.6
1,824.8
3,624.3

6,299.6
761.8
1,853.5
3,684.3

6 Gross private domestic investment
V
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures

1,242.7
1,212.7
899.4
225.0
674.4
313.3

1,383.7
1,315.4
986.1
254.1
732.1
329.2

1,531.2
1,460.0
1,091.3
272.8
818.5
368.7

1,535.3
1,461.7
1,087.2
271.7
815.4
374.5

1,580.3
1,508.9
1,121.4
278.0
843.4
387.5

1,594.3
1,543.3
1,139.9
274.7
865.2
403.4

1,585.4
1,567.8
1,155.4
272.5
882.9
412.4

1,636.0
1,599.1
1,187.9
273.7
914.3
411.2

30.0
22.2

68.3
65.6

71.2
70.9

73.7
74.7

71.4
56.2

51.0
40.9

17.6
12.8

36.9
36.1

-89.0
874.2
963.1

-88.3
968.0
1,056.3

-149.6
966.3
1,115.9

-165.7
949.1
1,114.8

-161.2
981.8
1,143.1

-201.6
966.9
1,168.5

-245.8
978.2
1,224.0

-276.7
1,008.7
1,285.4

17 Government consumption expenditures and gross investment
18
Federal
19
State and local

1,421.9
531.6
890.4

1,481.0
537.8
943.2

1,529.7
538.7
991.0

1,538.7
539.7
999.0

1,554.8
546.7
1,008.1

1,589.1
557.4
1,031.8

1,605.9
561.6
1,044.3

1,636.4
569.5
1,067.0

By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures

7,783.2
2,921.3
1,331.9
1,589.4
4,191.0
670.9

8,232.4
3,074.1
1,424.8
1,649.3
4,434.7
723.7

8,688.7
3,239.1
1,528.9
1,710.3
4,664.6
785.1

8,724.2
3,231.9
1,519.9
1,712.1
4,700.4
791.9

8,876.2
3,318.4
1,571.4
1,747.0
4,747.9
809.9

9,021.6
3,365.6
1,584.3
1,781.3
4,820.7
835.3

9,128.6
3,406.6
1,601.7
1,804.9
4,885.5
836.5

9,258.4
3,455.6
1,634.3
1,821.3
4,962.8
839.9

30.0
19.1
10.9

68.3
35.6
32.8

71.2
39.0
32.3

73.7
39.8
33.9

71.4
38.6
32.8

51.0
24.1
27.0

17.6
6.3
11.4

36.9
21.4
15.4

7,813.2

8,165.1

8,516.3

8,536.0

8,659.2

8,737.9

8,778.6

8,897.7

2
3
4
5

12
13

Change in business inventories
Nonfarm

14 Net exports of goods and services
15
Exports
16
Imports

26 Change in business inventories
21
Durable goods
28
Nondurable goods
MEMO

29 Total G D P in chained 1992 dollars
NATIONAL INCOME

30 Total

6,210.2

6,634.9

7,036.4

7,087.1

7,193.8

7,334.5

7,423.1

7,522.4

31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income

4,395.6
3,630.1
641.0
2,989.1
765.4
275.4
490.0

4,675.7
3,884.7
664.4
3,220.3
791.0
290.1
500.9

5,011.2
4,189.5
692.8
3,496.7
821.7
306.0
515.7

5,053.6
4,227.9
696.7
3,531.2
825.7
308.1
517.7

5,134.7
4,300.8
702.8
3,598.0
833.9
311.8
522.1

5,217.7
4,371.5
715.8
3,655.7
846.2
318.3
528.0

5,287.1
4,432.6
721.3
3,711.3
854.5
321.5
533.0

5,373.1
4,508.9
730.6
3,778.3
864.2
325.6
538.6

544.7
510.5
34.3

578.6
549.1
29.5

606.1
581.0
25.1

606.4
583.6
22.9

637.1
596.0
41.1

639.9
607.5
32.5

655.3
621.2
34.1

653.6
632.2
21.4

38 Proprietors' income 1
39
Business and professional 1
40
Farm 1
41 Rental income of persons 2

129.7

130.2

137.4

139.3

147.0

148.6

148.8

140.9

42 Corporate profits 1
43
Profits before tax 3
44
Inventory valuation adjustment
45
Capital consumption adjustment

753.9
726.3
3.1
24.4

837.9
795.9
7.4
34.6

846.1
781.9
20.9
43.3

843.8
780.1
19.8
43.9

834.3
766.7
20.8
46.9

882.0
818.1
13.3
50.6

875.5
835.8
-13.6
53.2

883.7
857.8
-26.5
52.4

46 Net interest

386.3

412.5

435.7

444.0

440.8

446.3

456.4

471.1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

Selected Measures
2.17

A49

PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1999

1998
Account

1996

1997

1998
Q3

Q4

Q2

Ql

Q3

PERSONAL I N C O M E AND SAVING

1 Total personal income

6,547.4

6,951.1

7,358.9

7,413.6

7,530.8

7,630.2

7,732.6

7,827.5

?.

3,626.5
908.2
673.7
822.4
1,254.9
641.0

3,888.9
975.5
718.8
879.1
1,369.8
664.4

4,186.0
1,038.7
757.5
944.6
1,509.9
692.8

4,224.4
1,045.6
762.3
953.5
1,528.6
696.7

4,297.3
1,056.6
765.6
969.9
1,568.0
702.8

4,371.5
1,062.9
767.0
986.3
1,606.6
715.8

4,432.6
1,075.1
774.8
997.6
1,638.5
721.3

4,508.9
1,091.0
787.2
1,012.6
1,674.7
730.6

490.0
544.7
510.5
34.3
129.7
297.4
810.6
928.8
537.6

500.9
578.6
549.1
29.5
130.2
333.4
854.9
962.4
565.8

515.7
606.1
581.0
25.1
137.4
348.3
897.8
983.6
578.1

517.7
606.4
583.6
22.9
139.3
348.0
909.3
986.5
579.6

522.1
637.1
596.0
41.1
147.0
351.9
906.4
991.0
581.1

528.0
639.9
607.5
32.5
148.6
356.1
907.4
1,007.8
588.9

533.0
655.3
621.2
34.1
148.8
361.2
920.5
1,013.6
593.0

538.6
653.6
632.2
21.4
140.9
367.0
933.4
1,021.8
599.0

Wage and salary disbursements
Commodity-producing industries
4
Manufacturing
Distributive industries
6
Service industries
Government and government enterprises
7
8
9
in
n
17
n
14
15
16
17

Other labor income
Proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits

280.4

298.1

315.9

318.0

322.0

328.9

332.3

336.7

6,547.4

LESS: Personal contributions for social insurance

18 EQUALS: Personal income

6,951.1

7,358.9

7,413.6

7,530.8

7,630.2

7,732.6

7,827.5

869.7

968.3

1,072.6

1,088.3

1,113.0

1,124.8

1,139.4

1,160.2

20 EQUALS: Disposable personal income

5,677.7

5,982.8

6,286.2

6,325.3

6,417.8

6,505.4

6,593.2

6,667.3

21

LESS: Personal outlays

5,405.6

5,711.7

6,056.6

6,100.5

6,190.3

6,310.3

6,425.2

6,527.9

22 EQUALS: Personal saving

272.1

271.1

229.7

224.8

227.5

195.1

168.0

139.4

29,428.2
19,726.9
21,385.0

30,466.8
20,275.0
21,954.0

31,471.9
21,059.1
22,636.0

31,509.8
21,154.3
22,715.0

31,882.2
21,339.5
22,924.0

32,112.8
21,640.6
23,110.0

32,179.6
21,854.1
23,239.0

32,532.7
22,043.1
23,328.0

4.8

4.5

3.7

3.6

3.5

3.0

2.5

2.1

27 Gross saving

1,349.3

1,521.3

1,646.0

1,664.1

1,685.4

1,727.8

1,709.5

1,739.3

28 Gross private saving

1,290.4

1,362.0

1,371.2

1,367.7

1,382.3

1,389.4

1,359.3

1,359.1

79 Personal saving
30 Undistributed corporate profits 1
31 Corporate inventory valuation adjustment

272.1
232.5
3.1

271.1
265.9
7.4

229.7
257.2
20.9

224.8
251.1
19.8

227.5
246.5
20.8

195.1
277.6
13.3

168.0
259.5
-13.6

139.4
257.2
-26.5

Capital consumption
3? Corporate
33 Noncorporate

543.6
238.5

579.4
249.8

619.2
261.5

625.0
263.3

637.1
267.7

645.8
271.0

657.2
274.6

675.4
287.0

34 Gross government saving
35
Federal
36
Consumption of fixed capital
37
Current surplus or deficit ( - ) , national accounts
38
State and local
Consumption of fixed capital
39
40
Current surplus or deficit (—), national accounts

58.9
-51.5
85.3
-136.8
110.4
88.9
21.4

159.3
37.7
86.6
-48.8
121.5
94.0
27.5

274.8
134.3
87.4
46.9
140.5
98.8
41.7

296.4
147.1
87.5
59.6
149.3
99.4
49.9

303.0
147.8
88.1
59.7
155.2
101.1
54.2

338.3
187.2
89.6
97.6
151.1
102.4
48.7

350.2
208.3
90.2
118.1
141.9
104.3
37.6

380.1
225.9
91.2
134.7
154.2
106.0
48.3

41 Gross investment

1,382.1

1,518.1

1,598.4

1,576.2

1,623.0

1,628.4

1,574.0

1,594.4

4? Gross private domestic investment
43 Gross government investment
44 Net foreign investment

1,242.7
250.2
-110.7

1,383.7
258.1
-123.7

1,531.2
268.7
-201.5

1,535.3
273.5
-232.6

1,580.3
272.6
-229.9

1,594.3
289.8
-255.7

1,585.4
292.2
-303.7

1,636.0
294.8
-336.4

32.8

-3.2

-47.6

-87.9

-62.4

-99.4

-135.5

-144.8

19

LESS: Personal tax and nontax payments

MEMO

Per capita (chained 1992 dollars)
Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
G R O S S SAVING

allowances

45 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. U.S. Department of Commerce, Survey of Current Business.

A50
3.10

International Statistics • January 2000
U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted1
1999

1998
Item credits or debits

1997

1996

1998
Q2

1 Balance
7
3
4
5
6
7
8
9
10

on current account
Balance on goods and services
Exports
Imports
Income, net
Investment, net
Direct
Portfolio
Compensation of employees
Unilateral current transfers, net

11 Change in U.S. government assets other than official
reserve assets, net (increase, —)

-129,295
-104,318
849,806
-954,124
17,210
21,754
67,746
-45,992
-4,544
-42,187

-143,465
-104,730
938,543
-1,043,273
3,231
8,185
69,220
-61,035
-4,954
-41,966

-220,562
-164,282
933,907
-1,098,189
-12,205
-6,956
59,405
-66,361
-5,249
-44,075

Q3

Q4

Q1

Q2 P

-52,400
-41,961
231,889
-273,850
-553
735
16,177
-15,442
-1,288
-9,886

-63,476
-45,724
229,284
-275,008
-6,965
-5,637
11,834
-17,471
-1,328
-10,787

-61,669
-43,262
236,904
-280,166
-4,933
-3,571
14,558
-18,129
-1,362
-13,474

-68,654
-53,974
231,904
-285,878
-4,340
-2,946
14,834
-17,780
-1,394
-10,340

-80,673
-65,016
234,526
-299,542
-4,382
-3,011
14,103
-17,114
-1,371
-11,275

-989

68

-429

-483

185

-50

119

-380

12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
16
Foreign currencies

6,668
0
370
-1,280
7,578

-1,010
0
-350
-3,575
2,915

-6,784
0
-149
-5,118
-1,517

-1,945
0
72
-1,031
-986

-2,026
0
188
-2,078
-136

-2,369
0
-227
-1,924
-218

4,068
0
563
3
3,502

1,159
0
-190
1,413
-64

17 Change in U.S. private assets abroad (increase, —)
18
Bank-reported claims 3
19
Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net

-386,441
-91,555
-86,333
-115,859
-92,694

-464,354
-144,822
-120,403
-89,174
-109,955

-285,605
-24,918
-25,041
-102,817
-132,829

-118,089
-27,704
-14,327
-32,886
-43,172

-60,256
-33,344
-20,320
14,994
-21,586

-48,188
37,192
16,202
-70,809
-30,773

-19,335
27,771
-13,853
8,132
-41,385

-124,940
-37,082
-26,429
-26,387
-35,042

22 Change in foreign official assets in United States (increase, + )
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities 3
26
Other U.S. liabilities reported by U.S. banks 3
Other foreign official assets 4
27

127,390
115,671
5,008
-316
5,704
1,323

18,119
-6,690
4,529
-1,798
22,286
-208

-21,684
-9,957
6,332
-3,113
-11,469
-3,477

-10,551
-20,318
254
-807
9,488
832

-46,489
-32,811
1,906
-224
-12,866
-2,494

24,352
31,836
1,562
-1,054
-7,133
-859

4,708
800
5,993
-1,594
-589
98

-986
-6,708
5,792
-770
1,202
-502

28 Change in foreign private assets in United States (increase, + )
29
U.S. bank-reported liabilities 2
30
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
31
32
U.S. currency flows
.33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in United States, net

447,457
16,478
39,404
154,996
17,362
130,240
88,977

733,542
149,026
107,779
146,433
24,782
196,258
109,264

524,321
40,731
9,412
46,155
16,622
218,026
193,375

173,017
34,138
18,040
25,759
2,349
71,785
20,946

140,036
77,313
11,875
-1,438
7,277
20,103
24,906

125,453
-21,811
-53,210
24,391
6,250
49,328
120,505

84,152
-14,184
20,188
-8,781
2,440
61,540
22,949

242,033
49,374
-710
-5,517
3,057
77,272
118,557

35 Capital account transactions, net 5
36 Discrepancy
37
Due to seasonal adjustment
38
Before seasonal adjustment

672
-65,462

292
-143,192

617
10,126

-65,462

-143,192

10,126

160
10,291
528
9,763

148
31,878
-10,582
42,460

166
-37,695
4,144
-41,839

166
-5,224
5,264
-10,488

180
-36,393
582
-36,975

MEMO

Changes in official assets
39 U.S. official reserve assets (increase, —)
40 Foreign official assets in United States, excluding line 25
(increase, + )
41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)

6,668

-1,010

-6,784

-1,945

-2,026

-2,369

4,068

1,159

127,706

19,917

-18,571

-9,744

-46,265

25,406

6,302

-216

14,911

12,124 r

-11,499

2,058

1,774

1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-41.
2. Reporting banks included all types of depository institutions as well as some brokers
and dealers.
3. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
4. Consists of investments in U.S. corporate stocks and in debt securities of private




—657r

— ll,642r

2,057 r

corporations and state and local governments.
5. Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.

Summary Statistics
3.11

A51

U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1999
Item

1996

1997

1998
Mar.

Apr.

May

June

July

Aug/

Sept. p

1 Goods and services, balance
2
Merchandise
Services
3

-104,318
-191,270
86,952

-104,731
-196,652
91,921

-164,282
-246,932
82,650

-19,311
-25,680
6,369

-18,787
-25,334
6,547

-21,390
-27,899
6,509

-24,604
-31,179
6,575

-24,886
-31,422
6,536

-23,549
-30,132
6,583

-24,408
-30,591
6,183

4 Goods and services, exports
Merchandise
5
Services
6

849,806
612,057
237,749

938,543
679,715
258,828

933,907
670,246
263,661

77,047
54,326
22,721

78,113
55,269
22,844

77,978
55,121
22,857

78,623
55,472
23,151

79,122
55,890
23,232

82,443
59,139
23,304

81,705
58,549
23,156

7 Goods and services, imports
8
Merchandise
Services
9

-954,124
-803,327
-150,797

-1,043,273
-876,366
-166,907

-1,098,189
-917,178
-181,011

-96,358
-80,006
-16,352

-96,900
-80,603
-16,297

-99,368
-83,020
-16,348

-103,227
-86,651
-16,576

-104,008
-87,312
-16,696

-105,992
-89,271
-16,721

-106,113
-89,140
-16,973

1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.

3.12

SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.

U.S. RESERVE ASSETS
Millions of dollars, end of period
1999
Asset

1996

1997

1998
Apr.

May

June

July

Aug.

Sept.

Oct.

Nov. p

75,090

1 Total
2 Gold stock, including Exchange
Stabilization Fund 1
3 Special drawing rights 2 ' 3
4 Reserve position in International Monetary
Fund 2
5 Foreign currencies 4

69,954

81,755

73,694

72,121

71,689

73,305

72,649 r

73,414

73,230

72,318

11,049
10,312

11,050
10,027

11,041
10,603

11,049
9,634

11,049
9,784

11,046
9,719

11,048
9,925

11,046r
10,152

11,047
10,284

11,049
10,232

11,049
10,326

15,435
38,294

18,071
30,809

24,111
36,001

23,054
29,957

21,689
29,599

21,462
29,462

21,462
30,870

19,885
31,566

19,978
32,105

19,571
32,378

18,707
32,236

1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.

3.13

SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1999
Asset

1996

1997

1998
Apr.

1 Deposits
Held in custody
2 U.S. Treasury securities 2
3 Earmarked gold 3

June

July

Aug.

Sept.

Oct.

Nov. p

167

457

167

260

157

409

257

166

243

189

500

638,049
11,197

620,885
10,763

607,574
10,343

606,662
10,340

606,579
10,340

611,372
10,329

619,004
10,329

626,669
10,271

634,086
10,155

621,351
10,114

629,430
10,015

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.

A52
3.15

International Statistics • January 2000
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1999
Item

1997

1998
Mar.

4
5
6
1
8
9
10
11
12

June

July

Aug.

Sept. p

By area
Europe 1
Canada
Latin America and Caribbean
Africa
Other countries

759,933 r

765,689

766,509 r

760,410

765,708

773,494

782,508 r

778,976

135,384
148,301

125,878r
134,177

124,743
141,941

135,731r
135,765

124,270
136,199

126,180
138,518

125,873
147,492

126,220r
153,499

124,348
152,457

428,004
5,994
58,822

432,127
6,074
61,677

425,046
6,191
67,768

418,350
6,231
70,432

421,573
6,143
72,225

421,970
5,982
73,058

420,197
6,022
73,910

422,590
6,060
74,139

420,794
6,098
75,279

252,289
36,177
96,942
400,144
9,981
7,058

By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5

256,026
36,715
79,498 r
400,64 r
10,059
3,080

253,970
39,611
72,828
412,353
9,906
3,107

245,500
38,563
81,379
413,991 r
9,656
3,506

242,386
38,181
81,075
411,739
9,326
3,789

241,989
39,001
76,828
421,282
8,378
4,316

240,546
39,147
77,832
430,050
8,376
3,629

243,334
39,342
75,339 r
438,300
8,122
4,157

241,233
39,337
74,475
437,957
8,314
3,746

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;

3.16

May

776,505

1 Total 1
2
3

Apr.

LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies

Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1994 benchmark survey of foreign portfolio investment in the United
States.

Reported by Banks in the United States1

Millions of dollars, end of period
1999

1998
Item

1995

1996

1997
Sept.

1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2

109,713
74,016
22,696
51,320
6,145

1. Data on claims exclude foreign currencies held by U.S. monetary authorities.




103,383
66,018
22,467
43,551
10,978

117,524
83,038
28,661
54,377
8,191

Dec.

Mar.

June

92,934
67,901
27,293
40,608
8,453

101,125
78,152
45,985
32,167
20,718

101,359
80,642
42,147
38,495
11,039

97,751
67,864
41,895
25,969
23,474

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.

Nonbank-Reported
3.17

LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Data

A53

Reported by Banks in the United States1

Millions of dollars, end of period
1999
Item

1996

1997

1998
Mar.

Apr.

May

July

June

Aug. r

Sept.?

B Y H O L D E R AND T Y P E OF LIABILITY

19

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other
9

20 Official institutions
21
Banks' own liabilities
22
Demand deposits
23
Time deposits 2
24
Other 3
25
26
27
28

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

29 Banks 10
30
Banks' own liabilities
Unaffiliated foreign banks
31
Demand deposits
32
33
Time deposits 2
34
Other 3
35
Own foreign offices 4
36
37
38
39

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits 2
44
Other 3
45
46
47
48

Banks' custodial liabilities 5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

l,337,872 r

l,334,719 r

1,352,678 r

l,382,649 r

l,339,888 r

1,385,668

1,387,565

882,980
31,344
198,546
168,011
485,079

r

884,873
29,556
152,226r
140,245
562,846

r

872,957
30,913
152,158r
157,083
532,803 r

r

880,209
31,180
157,680r
160,670r
530,679 r

r

900,891
32,184
156,515r
160,800r
551,392

r

920,125
36,322
156,677
152,683r
574,443

889,66 l r
43,183
156,891
151,819r
537,768 r

908,116
44,940
155,199
152,163
555,814

927,332
44,596
156,435
161,587
564,714

403,150
236,874

400,047
193,239

462,898 r
183,494

464,915 r
192,838r

454,510 r
178,514r

451,787
177,768

462,524
179,351

450,227
187,872

477,552
192,096

460,233
189,030

72,011
94,265

7 Banks' custodial liabilities 5
8
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments 7
Other
10

16
17
18

l,347,771 r

93,641
113,167

141,699r
137,705

133,311
138,766

129,051
146,945

124,100
149,919

123,246
159,927

121,567
140,788

132,405
153,051

128,914
142,289

13,972
13,355
29
5,784
7,542

11,690
11,486
16
5,466
6,004

1 l,883
10,850
172
5,793
4,885

r

15,337
14,621
194
6,856
7,571

15,921
15,184r
13
6,324
8,847 r

14,067
13,320r
25
5,840
7,455 r

17,987
16,002
49
7,231
8,722

18,463
16,964
66
7,380
9,518

18,468
17,056
31
6,419
10,606

18,646
17,726
21
7,370
10,335

617
352

204
69

l,033 r
636

716
548

737
555

747
616

1,985
956

1,499
953

1,412
896

920
661

265
0

133
2

397 r
0

168
0

182
0

131
0

1,029
0

533
13

516
0

259
0

312,019
79,406
1,511
33,336
44,559

283,685
102,028
2,314
41,396
58,318

260,055
80,251
3,003
29,602
47,646

r

266,684
76,996
3,393
23,840
49,763

271,496
86,00 l r
3,599
29,049 r
53,353

260,469
79,452
2,789
27,372
49,291

264,698
78,445
2,952
26,643
48,850

273,365
80,400
2,652
26,845
50,903

279,719
77,801
2,537
24,856
50,408

276,805
76,980
2,932
25,301
48,747

232,613
198,921

181,657
148,301

179,804r
134,177

189,688
141,941

185,495
135,765

181,017
136,199

186,253
138,518

192,965
147,492

201,918
153,499

199,825
152,457

33,266
426

33,151
205

44,953 r
674

47,174
573

49,443
287

44,586
232

47,582
153

45,094
379

48,297
122

46,633
735

694,835
562,898
161,354
13,692
89,765
57,897
401,544

815,247
641,447
156,368
16,767
83,433
56,168
485,079

885,047
675,998
113,152
14,071
46,219
52,862
562,846

851,791 r
648,795 r
115,992
13,985
49,101
52,906
532,803 r

848,313 r
646,602 r
115,923r
13,344
50,206
52,373 r
530,679 r

881,368
676,341
124,949
15,957
49,217 r
59,775 r
551,392

910,025 r
695,25 l r
120,808r
15,812
47,998
56,998 r
574,443

853,184
656,403
118,635r
14,086
49,540
55,009 r
537,768 r

888,328
676,931
121,117
15,436
49,872
55,809
555,814

881,993
692,334
127,620
14,087
49,667
63,866
564,714

131,937
23,106

173,800
31,915

209,049
35,359

202,996
36,737

201,711
29,636

205,027
28,323

214,774
27,757

196,781
28,284

211,397
26,314

189,659
24,749

17,027
91,804

35,393
106,492

45,102
128,588

37,304
128,955

34,959
137,116

35,580
141,124

36,983
150,034

37,459
131,038

41,541
143,542

40,370
124,540

141,322
103,339
11,802
58,025
33,512

172,405
128,019
12,247
68,251
47,521

190,786r
117,774r
12,310
70,612 r
34,852

204,060 r
132,545r
13,341
72,36 l r
46,843

198,989r
132,422r
14,224
72,101 r
46,097 r

196,774
131,778
13,413
74,086
44,279

189,939r
130,427r
17,509
74,805
3 8,113r

194,876r
135,894r
26,379
73,126
36,389 r

199,153
136,328
26,936
74,052
35,340

210,121
140,292
27,556
74,097
38,639

37,983
14,495

44,386
12,954

73,012
13,322

71,515 r
13,612r

66,567 r
12,558r

64,996
12,630

59,512
12,120

58,982
11,143

62,825
11,387

69,829
11,163

21,453
2,035

24,964
6,468

51,247
8,443

48,665
9,238

44,467
9,542

43,803
8,563

37,652
9,740

38,481
9,358

42,051
9,387

41,652
17,014

14,573

16,083

27,026

23,035

21,718

24,141

22,569

21,811

22,565

24,367

1,162,148

2 Banks' own liabilities
3
Demand deposits
4
Time deposits 2
5
Other 1
6
Own foreign offices 4

11 Nonmonetary international and regional organizations
12
Banks' own liabilities
13
Demand deposits
14
Time deposits 2
15
Other'

1,283,027

758,998
27,034
186,910
143,510
401,544

1 Total, all foreigners

8

..

r

r

r

MEMO

49 Negotiable time certificates of deposit in custody for
foreigners

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.




6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."

A54
3.17

International Statistics • January 2000
LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1999
Item

1996

1997

1998
Mar.

Apr.

Sept. p

May

June

l,382,649 r

l,339,888 r

l,385,668 r

1,387,565

r

r

r

1,368,919

450,827'
3,210
34,834
1,811
1,335
42,424
23,719
3,121
5,840
11,292
1,333
1,912
2,665
8,194
3,779
76,176'
7,883
192,431
270
28,598

454,733
3,459
33,434
1,903
1,222
45,808
24,477
3,358
6,231
11,638
1,225
1,976
2,816
9,479
4,571
70,353
8,368
196,459
266
27,690

July

Aug.

AREA

50 Total, all foreigners

1,162,148

1,283,027

l,347,771 r

1,337,872 r

l,334,719 r

l,352,678 r

51 Foreign countries

1,148,176

1,271,337

l,335,888 r

1,322,535 r

l,318,798 r

1,338,611

l,364,662

376,590
5,128
24,084
2,565
1,958
35,078
24,660
1,835
10,946
11,110
1,288
3,562
7,623
17,707
1,623
44,538
6,738
153,420
206
22,521

419,672
2,717
41,007
1,514
2,246
46,607
23,737
1,552
11,378
7,385
317
2,262
7,968
18,989
1,628
39,023
4,054
181,904
239
25,145

427,367
3,178
42,818
1,437
1,862
44,616
21,357
2,066
7,103
10,793
710
3,235
2,439
15,775
3,027
50,654
4,286
181,554
233
30,224

418,437'
3,274
41,468
1,992
1,800
47,937
23,747
2,447
5,744
12,273
1,022
2,237
2,500
9,336
2,193
47,874
5,639
175,303'
274
31,377

409,543'
2,428
37,991
1,300
1,655
49,097
18,575
2,237
5,910
11,037
1,181
2,277
2,693
11,075
1,974
54,551'
5,783'
169,826'
221
29,732

434,124
2,224
39,227
1,267
1,645
48,328
24,689
2,691
5,943
11,752
1,210
2,461
2,794
8,083
3,429
66,214
5,810
178,015
242
28,100

430,580
2,678
31,298
961
1,384
45,235
21,999
2,737
6,192
12,152
1,049
2,439
2,871
8,678
2,966
65,967
5,914
187,310
254
28,496

52 Europe
53
Austria
54
Belgium and Luxembourg
55
Denmark
56
Finland
57
France
Germany
58
59
Greece
60
Italy
61
Netherlands
62
Norway
63
Portugal
64
Russia
65
Spain
Sweden
66
67
Switzerland
68
Turkey
69
United Kingdom
70
Yugoslavia11
71
Other Europe and other former U.S.S.R. 12
72 Canada

l,321,425
438,232
2,770
31,242
1,143
1,358
42,622
23,950
3,168
6,426
12,206
1,184
2,237
2,756
7,700
3,851
60,758
7,786
200,038
289
26,748

l,367,200

38,920

28,341

30,212

31,788

28,360

28,543

30,416'

29,862'

30,409'

29,698

73 Latin America and Caribbean
74
Argentina
Bahamas
75
Bermuda
76
Brazil
77
British West Indies
78
79
Chile
80
Colombia
81
Cuba
82
Ecuador
Guatemala
83
84
Jamaica
Mexico
85
86
Netherlands Antilles
87
Panama
Peru
88
89
Uruguay
90
Venezuela
Other
91

467,529
13,877
88,895
5,527
27,701
251,465
2,915
3,256
21
1,767
1,282
628
31,240
6,099
4,099
834
1,890
17,363
8,670

536,393
20,199
112,217
6,911
31,037
276,418
4,072
3,652
66
2,078
1,494
450
33,972
5,085
4,241
893
2,382
21,601
9,625

554,808 r
19,013
118,085
6,846 r
15,800
302,472
5,010
4,616
62
1,572
1,333
577'
37,148
5,010
3,864
840
2,486
19,894
10,180r

551,709'
16,891
119,206'
7,514
13,841
300,109
5,057
4,636
63
1,606
1,392
551
36,621'
7,256
4,196
810
2,378
19,149
10,433

578,156'
18,349
118,648'
6,957
17,128
322,011
6,805
4,710
64
1,688
1,386
534
36,004
5,633
3,974
819
2,345
20,512
10,589'

591,047
16,428
118,122
7,951
17,295
334,386
7,236
4,861
64
1,800
1,449
547
37,588
3,853
3,984
854
2,331
21,204
11,094

610,201'
17,804
123,549'
9,168
14,696
347,368
5,918
4,615
70
1,930
1,468
527
37,920
5,662
4,130
816
2,552
20,393
11,615

554,346
17,202
122,465
9,410
15,389
294,208
6,744
4,634
70
1,975
1,425
471
39,024
3,012
3,844
836
2,319
20,437
10,881

581,338'
17,061
132,442
9,319
15,399'
315,799
5,805
4,452'
72
1,724
1,521
533
36,301'
3,408
3,816
994'
2,147'
19,796
10,749'

581,398
15,544
139,101
8,747
16,208
310,904
6,601
4,708
76
1,792
1,471
550
35,028
2,927
4,029
1,041
2,175
19,446
11,050

92

249,083

269,379

307,960 r

305,525'

287,723'

269,026

276,917

283,218

288,974'

287,197

30,438
15,995
18,789
3,930
2,298
6,051
117,316
5,949
3,378
10,912
16,285
17,742

18,252
11,840
17,722
4,567
3,554
6,281
143,401
13,060
3,250
6,501
14,959
25,992

13,441'
12,708
20,900
5,250
8,282
7,749
168,563
12,524'
3,324
7,359
15,609
32,251

13,996
13,183
27,631'
6,189
6,675
8,246
161,887
11,141
2,362
6,588
15,433
32,194

16,350
12,641
26,338'
5,979
7,434
7,037
142,326
10,003'
2,440
6,296
14,497
36,382

14,753
10,795
25,728
5,520
6,211
7,004
132,605
11,387
2,492
5,739
15,453
31,339

13,366
11,408
24,575
5,421
6,530
6,144
143,635
12,901
2,273
5,296
15,168
30,200

10,872
12,482
24,200
5,864
7,309
5,076
145,652
12,792
2,177
6,054
15,581
35,159

12,359
12,678
24,149'
5,408
6,633
5,059
145,403'
12,723'
2,189
5,809
15,942'
40,622'

11,914
12,544
23,368
5,625
6,468
5,688
149,518
11,903
2,414
5,281
14,367
38,107

105 Africa
106
Egypt
107
Morocco
South Africa
108
Zaire
109
110
Oil-exporting countries 14
Other
ill

8,116
2,012
112
458
10
2,626
2,898

10,347
1,663
138
2,158
10
3,060
3,318

8,905
1,339
97
1,522
5
3,088
2,854

8,463
1,758
85
1,258
9
2,772
2,581

7,874
1,599
90
1,165
4
2,534
2,482

7,713
1,339
72
1,132
12
2,508
2,650

7,485
1,576
101
1,091
16
2,247
2,454

7,508
1,566
116
1,049
13
2,281
2,483

7,660
1,851
108
885'
13
2,510'
2,293'

8,065
1,852
118
753
13
2,808
2,521

112 Other
Australia
113
Other
114

7,938
6,479
1,459

7,205
6,304
901

6,636
5,495
1,141

6,613
5,582
1,031

7,142
5,987
1,155

8,158
6,820
1,338

9,063
7,624
1,439

8,259
7,252
1,007

7,992'
6,963
1,029'

7,828
6,789
1,039

13,972
12,099
1,339
534

11,690
10,517
424
749

11,883'
10,221
594
1,068'

15,337
12,845
1,394
1,098

15,921'
13,494'
1,304
1,123

14,067'
11,759'
653
1,655

17,987
14,987
898
2,102

18,463
15,822
819
1,822

18,468'
16,312'
725'
1,431

18,646
16,570
662
1,414

93
94
95
96
97
98
99
100
101
102
103
104

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 13
Other

115 Nonmonetary international and regional organizations . .
International 15
116
117
Latin American regional 16
Other regional 17
118

11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.




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."

Nonbank-Reported
3.18

Data

A55

BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1999
Area or country

1996

1997

1998
Mar.

1 Total, all foreigners
2 Foreign countries
3 Europe
4
Austria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
in
Greece
Italy
11
Netherlands
1?
13
Norway
14
Portugal
Russia
15
Spain
16
17
Sweden
18
Switzerland
19
Turkey
?n
United Kingdom
Yugoslavia 2
21
Other Europe and other former U.S.S.R.3
22

Apr.r

May r

June r

July r

Aug. r

Sept. p

708,225

735,058 r

710,938 r

735,992

750,581

750,859

720,597

730,753

757,702

597,321

705,762

731,441

r

706,318 r

730,739

746,094

746,786

716,190

727,597

754,112

165,769
1,662
6,727
492
971
15,246
8,472
568
6,457
7,117
808
418
1,669
3,211
1,739
19,798
1,109
85,234
115
3,956

199,880
1,354
6,641
980
1,233
16,239
12,676
402
6,230
6,141
555
1,248
2,942
1,854
-28,846
1,558
103,143
52
7,009

233,320 r
1,043
7,187
2,383
1,070
15,251
15,923r
575
7,283
5,697'
827
669
789
5,735
4,223
46,874 r
1,982
106,349
53
9,407

226,489 r
2,759
5,451
1,619
1,351
15,227r
16,873r
554
6,045 r
6,690
596
1,205
971
3,041
4,439
51,670 r
2,078
97,286 r
54
8,580

236,299
2,389
7,533
2,297
1,349
15,942
17,188
651
6,727
7,251
970
1,060
787
2,949
4,141
48,468
1,943
105,248
55
9,351

265,789
2,902
9,811
2,141
1,480
15,800
18,367
585
6,434
8,588
753
1,134
1,016
4,516
2,950
65,488
1,918
112,946
54
8,906

299,977
2,514
10,028
1,901
1,730
18,253
20,793
551
6,783
8,724
717
1,122
768
6,178
3,005
75,544
2,288
130,859
54
8,165

292,697
3,855
9,214
1,763
2,197
19,944
23,965
628
7,451
9,334
821
1,056
831
4,606
3,199
66,927
2,219
125,262
50
9,375

305,072
3,080
7,463
1,442
1,915
18,969
23,558
659
7,747
10,132
583
1,222
782
3,700
4,082
71,866
2,268
137,636
49
7,919

316,073
2,335
7,229
1,756
1,855
19,128
22,996
662
7,957
9,425
1,252
1,342
814
5,107
4,184
90,187
2,383
129,293
50
8,118

26,436

27,189

47,036 r

41,245 r

r

599,925

111

40,726

41,116

37,454

31,957

32,109

36,460

?4 Latin America and Caribbean
75
Argentina
76
Bahamas
27
Bermuda
78
Brazil
79
British West Indies
3n
Chile
31
Colombia
37
Cuba
33
Ecuador
34
Guatemala
35
Jamaica
36
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
40
Uruguay
Venezuela
41
Other
42

274,153
7,400
71,871
4,129
17,259
105,510
5,136
6,247
0
1,031
620
345
18,425
25,209
2,786
2,720
589
1,702
3,174

343,730
8,924
89,379
8,782
21,696
145,471
7,913
6,945
0
1,311
886
424
19,428
17,838
4,364
3,491
629
2,129
4,120

342,720
9,553
96,455
5,01 l r
16,213r
153,749r
8,255 r
6,523
0
1,400
1,127
239
21,227 r
6,779
3,584
3,275 r
1,126
3,089
5,115 r

341,482 r
10,399
88,657 r
4,096
15,165r
162,891r
8,082
6,223 r
0
1,219
1,052
318
20,568 r
6,661
3,320
3,232
838
3,506
5,255 r

365,185
10,075
84,023
4,426
14,803
193,351
7,810
6,106
0
1,135
1,062
326
19,470
5,711
4,329
3,111
772
3,138
5,537

352,496
10,318
78,480
6,276
14,893
184,978
7,545
5,877
0
1,104
1,157
327
19,316
5,867
3,298
3,053
724
3,245
6,038

326,063
10,776
71,996
6,111
14,870
166,508
7,531
5,570
0
1,069
1,033
303
18,638
5,484
3,353
2,975
1,050
3,479
5,317

311,721
10,482
77,049
7,813
14,629
146,859
7,153
5,590
0
993
1,075
311
18,978
5,101
3,064
2,710
1,105
3,501
5,308

310,159
10,257
77,674
9,747
13,844
137,212
6,900
5,046
0
889
1,053
322
17,819
14,032
2,898
2,516
1,049
3,460
5,441

320,973
10,274
85,403
8,481
14,010
142,502
6,808
4,818
0
844
1,064
330
18,248
13,298
2,940
2,531
946
3,330
5,146

43

122,478

125.092

98,606 r

88,119 r

79,297

77,699

74,693

72,240

72,942

72,326

1,401
1,894
12,802
1,946
1,762
633
59,967
18,901
1,697
2,679
10,424
8,372

1,579
922
13,991
2,200
2,651
768
59,549
18,162
1,689
2,259
10,790
10,532

r

l,261
1,041
9,080
1,440
l,942 r
1,166
46,712
8,289 r
1,465
l,807 r
16,130
8,273

3,348 r
1,331
8,024 r
1,701
1,897
1,082
40,03 r
9,170 r
1,540
1,720
12,151
6,124

3,421
866
6,309
1,703
1,911
803
32,703
11,160
1,546
1,732
11,669
5,474

3,006
763
4,977
1,458
2,061
1,236
30,664
12,326
1,808
1,623
10,569
7,208

3,745
870
7,102
1,569
1,760
1,955
27,093
11,317
1,669
1,850
10,127
5,636

3,144
904
5,333
1,708
1,791
1,433
25,900
12,753
1,380
1,683
9,396
6,815

2,758
937
4,969
1,728
1,711
1,669
26,226
12,194
1,279
1,549
10,906
7,016

2,032
790
5,224
1,736
1,689
951
27,978
11,064
1,491
1,467
11,250
6,654

2,776
247
524
584
0
420
1,001

3,530
247
511
805
0
1,212
755

3,122
257
372
643
0
936
914

2,938
260
422
798
0
325
1,133

2,688
228
463
567
0
257
1,173

2,448
221
444
640
0
288
855

2,629
241
454
724
0
340
870

2,499
252
431
598
0
297
921

2,178
209
444
449
0
280
796

2,293
225
437
506
0
323
802

5,709

6,637 r
6,173 r
464

6,045
5,638
407

6,544
6,060
484

6,546
6,093
453

5,970
5,636
334

5,076
4,811
265

5,137
4,907
230

5,987
5,770
217

3,617

4,620

5,253

4,487

4,073

4,407

3,156

3,590

23 Canada

44
45
46
47
48
49
5n
51
52
53
54
55

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 4
Other

16 Africa

51

58
59
60
61
62

Morocco
South Africa
Zaire
Oil-exporting countries 5
Other

63 Other
64
Australia
Other
65

A,511
1,132

6,341
5,300
1,041

66 Nonmonetary international and regional organizations 6 . . .

2,604

2,463

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included all
parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.




4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other Europe."

A56
3.19

International Statistics • January 2000
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1999
Type of claim

1996

1998R

1997

Mar. r

Apr/

May r

735,992
35,787
485,425
93,733
23,938
69,795
121,047

750,581
36,616
492,192
99,864
25,234
74,630
121,909

June r

July'

1 Total

743,919

852,852

875,920

862,902

2 Banks' claims
Foreign public borrowers
3
4
Own foreign offices 2
Unaffiliated foreign banks
5
6
Deposits
7
Other
All other foreigners
8

599,925
22,216
341,574
113,682
33,826
79,856
122,453

708,225
20,581
431,685
109,230
30,995
78,235
146,729

735,058
23,540
484,525
106,281
27,196
79,085
120,712

710,938
34,752
468,018
94,029
25,040
68,989
114,139

143,994
77,657

144,627
73,110

140,862
78,491

151,964
91,380

53,967

48,752

47,990

17,550

13,619

12,594

10,388

9,624

4,519

4,485

39,661

33,816

39,978

33,038

757,702
34,997
487,456
102,017
24,556
77,461
133,232

32,857

32,336

27,750

4,437

14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States 5

730,753
35,689
457,574
108,931
23,915
85,016
128,559

10,356

MEMO
13 Customer liability on acceptances

720,597
38,465
460,268
99,715
24,859
74,856
122,149

43,616

15,130

Sept. p

147,569
93,597

51,207

Aug/

9 Claims of banks' domestic customers 3
10
Deposits
11
Negotiable and readily transferable
instruments 4
12
Outstanding collections and other
claims

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists

3.20

898,428

33,474

31,210

750,859
37,344
488,803
104,102
24,164
79,938
120,610

29,165

principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.

BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1998
Maturity, by borrower and area 2

1995

1996

Sept.
1 Total
2
3
4
5
6
7

8
9
10
11
17
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 other 3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
Allother3

Dec.

Mar.

June p

224,932

258,106

276,550

281342

250,547

242,463

259,219

178,857
14,995
163,862
46,075
7,522
38,553

211,859
15,411
196,448
46,247
6,790
39,457

205,781
12,081
193,700
70,769
8,499
62,270

208,710
14,842
193,868
72.632
10,926
61,706

186,653
13,699
172,954
63,894
9,840
54,054

175,490
20,921
154,569
66,973
13,290
53,683

186,868
24,558
162,310
72,351
11,657
60,694

55,622
6,751
72,504
40,296
1,295
2,389

55,690
8,339
103,254
38,078
1,316
5,182

58,294
9,917
97,207
33,964
2,211
4,188

68,980
8,795
100,161
22,320
1,762
6,692

68,684
10,947
81,911
18,005
1,835
5,271

66,887
7,816
71,214
21,347
1,571
6,655

84,731
6,690
65,853
21,957
1,543
6,094

4,995
2,751
27,681
7,941
1,421
1,286

6,965
2,645
24,943
9,392
1,361
941

13,240
2,525
42,049
10,235
1,236
1,484

15,264
2,982
39,165
12,147
1,170
1,904

14,923
3,140
33,443
10,018
1,233
1,137

16,949
2,781
33,539
10,972
1,160
1,572

18,754
3,276
36,902
10,471
1,105
1,843

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.




1999

1997

2. Maturity is time remaining until maturity,
3. Includes nonmonetary international and regional organizations.

Nonbank-Reported
3.21

CLAIMS ON FOREIGN COUNTRIES

Data

A57

Held by U.S. and Foreign Offices of U.S. Banks1

Billions of dollars, end of period
1997
Area or country

1995

1998

1999

1996
June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June p

551.9

645.3

678.8

711.0

719.3

739.1

749.7

738.9

714.1

678.3

667.3

206.0
13.6
19.4
27.3
11.5
3.7
2.7
6.7
82.4
10.3
28.5

228.3
11.7
16.6
29.8
16.0
4.0
2.6
5.3
104.7
14.0
23.7

250.0
9.4
17.9
34.1
20.2
6.4
3.6
5.4
110.6
15.7
26.8

247.8
11.4
20.2
34.7
19.3
7.2
4.1
4.8
108.3
15.1
22.6

242.8
11.0
15.4
28.6
15.5
6.2
3.3
7.2
113.4
13.7
28.6

249.0
11.2
15.5
25.5
19.7
7.3
4.8
5.6
120.1
13.5
25.8

278.3
16.2
20.5
28.8
19.5
8.3
3.1
6.9
134.9
16.5
23.7

268.3
15.1
19.9
28.9
18.0
8.1
2.2
7.5
130.4
15.6
22.8

255.8
13.4
18.4
31.1
11.5
7.9
2.3
8.3
121.5
16.7
24.7

246.4
14.1
19.5
32.0
13.2
8.9
3.6
7.3
110.6
15.7
21.3

255.7
14.8
18.4
29.2
11.6
10.9
2.3
7.8
122.7
16.5
21.6

13 Other industrialized countries
14
Austria
Denmark
15
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
71
Turkey
22
Other Western Europe
7.3
South Africa
24
Australia

50.2
.9
2.6
.8
5.7
3.2
1.3
11.6
1.9
4.7
1.2
16.4

65.7
1.1
1.5
.8
6.7
8.0
.9
13.2
2.7
4.7
2.0
24.0

71.7
1.5
2.8
1.4
6.1
4.7
1.1
15.4
3.4
5.5
1.9
27.8

73.8
1.7
3.7
1.9
6.2
4.6
1.4
13.9
4.4
6.1
1.9
28.0

64.5
1.5
2.4
1.3
5.1
3.6
.9
11.7
4.5
8.2
2.2
23.1

74.3
1.7
2.0
1.5
6.1
4.0
.7
16.5
4.9
9.9
3.7
23.2

72.1
1.9
2.1
1.4
5.8
3.4
1.3
15.2
6.5
9.6
5.0
20.0

71.6
2.1
2.8
1.6
5.8
3.3
1.1
17.5
5.2
10.3
3.7
18.2

68.5
1.4
2.2
1.5
6.0
3.2
1.3
13.6
4.8
10.6
3.5
20.3

75.8
2.5
3.2
1.4
6.2
2.9
1.3
14.3
5.0
10.1
3.4
25.3

76.5
2.7
2.8
.8
5.7
2.9
1.2
15.8
4.7
10.1
3.4
26.5

25 OPEC 2
7.6
Ecuador
27
Venezuela
7.8
Indonesia
29
Middle East countries
30
African countries

22.1
.7
2.7
4.8
13.3
.6

19.7
1.1
2.4
5.2
10.7
.4

22.3
.9
2.1
5.6
12.5
1.2

22.9
1.2
2.2
6.5
11.8
1.1

26.0
1.3
2.5
6.7
14.4
1.2

25.7
1.3
3.3
5.5
14.3
1.4

25.3
1.2
3.2
5.1
15.5
.3

25.9
1.2
3.1
4.7
16.1
.8

27.1
1.2
3.2
4.8
17.0
1.0

26.0
1.1
3.4
4.5
16.6
.4

25.9
1.0
3.1
4.9
16.4
.4

112.6

130.3

140.6

137.0

138.7

147.4

141.7

140.6

147.9

143.7

145.3

Other

12.9
13.7
6.8
2.9
17.3
.8
2.8

14.3
20.7
7.0
4.1
16.2
1.6
3.3

16.4
27.3
7.6
3.3
16.6
1.4
3.4

17.1
26.1
8.0
3.4
16.4
1.8
3.6

18.4
28.6
8.7
3.4
17.4
2.0
4.1

19.3
32.4
9.0
3.3
17.7
2.1
4.0

20.2
27.2
9.1
3.6
17.9
2.2
4.4

22.3
24.9
9.3
3.4
18.4
2.2
4.6

22.3
24.2
8.3
3.2
25.3
2.2
5.4

23.5
23.6
8.5
3.2
18.9
2.2
5.4

22.0
24.7
8.2
3.1
18.0
2.1
5.5

39
40
41
47
43
44
45
46
47

Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia

1.8
9.4
4.4
.5
19.1
4.4
4.1
4.9
4.5

2.5
10.3
4.3
.5
21.5
6.0
5.8
5.7
4.1

3.6
10.6
5.3
.8
16.3
6.4
7.0
7.3
4.7

4.3
9.7
4.9
1.0
16.2
5.6
5.7
6.2
4.5

3.2
9.0
4.9
.7
15.6
5.1
5.7
5.4
4.3

4.2
11.7
5.0
.7
16.2
4.5
5.0
5.5
4.2

3.9
11.3
4.9
.9
14.5
4.7
5.4
4.9
3.7

2.8
12.2
5.3
.9
12.9
5.1
4.7
5.3
3.1

3.0
12.8
5.3
1.1
13.7
5.7
5.1
4.6
2.9

5.1
11.7
5.5
1.1
13.3
5.9
5.3
4.5
3.0

5.3
11.9
6.5
2.0
14.9
5.9
5.6
4.1
2.8

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa 3

.4
.7
.0
.9

.7
.7
.1
.9

1.1
.7
.0
.9

.9
.7
.0
.9

.9
.6
.0
.8

1.0
.6
.0
1.1

1.5
.6
.0
.8

1.7
.5
.0
1.1

1.3
.5
.0
1.0

1.4
.5
.0
1.2

1.4
.5
.0
.9

4.2
1.0
3.2

6.9
3.7
3.2

7.1
4.2
2.9

9.8
5.1
4.7

9.1
5.1
4.0

12.0
7.5
4.6

10.9
6.8
4.1

6.0
2.8
3.2

5.2
2.2
3.1

6.1
2.2
3.9

5.1
1.9
3.2

99.2
11.0
6.3
32.4
10.3
1.4
.1
25.0
13.1
.1
57.6

134.7
20.3
4.5
37.2
26.1
2.0
.1
27.9
16.7
.1
59.6

129.6
16.1
7.9
35.1
15.8
2.6
.1
35.2
16.7
.3
57.6

138.9
19.8
9.8
45.7
21.7
2.1
.1
27.2
12.7
.1
80.8

139.0
23.3
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1

129.3
29.2
9.0
24.9
14.0
3.2
.1
33.8
15.0
.1
101.3

125.8
24.7
9.3
34.2
10.5
3.3
.1
30.0
13.5
.2
95.7

121.9
29.0
10.4
30.6
6.0
4.0
.2
30.6
11.1
.2
104.5

94.1
33.0
4.6
15.4
2.6
3.9
.1
23.4
11.2
.2
115.5

83.0
30.2
3.8
6.3
2.7
3.9
.1
22.8
13.1
.2
97.3

70.6
16.1
5.6
7.0
1.2
3.9
.1
21.9
14.6
.1
88.1

1 Total
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
United Kingdom
10
11
Canada
12
Japan

31 Non-OPEC developing countries
32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico

52 Eastern Europe
53
Russia 4
54
Other
55 Oifshore banking centers
Bahamas
56
57
Bermuda
58
Cayman Islands and other British West Indies
59
Netherlands Antilles
60
Panama 5
61
Lebanon
67
Hong Kong, China
Singapore
63
64
Other"
65 Miscellaneous and unallocated 7

1. The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.




2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.

A58
3.22

International Statistics • January 2000
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
Millions of dollars, end of period
1998
Type of liability, and area or country

1995

1996

1999

1997
Mar.

June

Sept.

Dec.

Mar.

June p

1 Total

46,448

61,782

57,382

55,681

51,433

49,279

46,570

46,663

49,337

2 Payable in dollars
3 Payable in foreign currencies

33,903
12,545

39,542
22,240

41,543
15,839

41,601
14,080

40,026
11,407

38,410
10,869

36,668
9,902

34,030
12,633

36,032
13,305

By type
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies

24,241
12,903
11,338

33,049
11,913
21,136

26,877
12,630
14,247

25,691
12,911
12,780

22,322
11,988
10,334

19,331
9,812
9,519

19,255
10,371
8,884

22,458
11,225
11,233

25,058
13,205
11,853

7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities

22,207
11,013
11,194

28,733
12,720
16,013

30,505
10,904
19,601

29,990
10,107
19,883

29,111
9,537
19,574

29,948
10,276
19,672

27,315
10,978
16,337

24,205
9,999
14,206

24,279
10,935
13,344

10
11

Payable in dollars
Payable in foreign currencies

21,000
1,207

27,629
1,104

28,913
1,592

28,690
1,300

28,038
1,073

28,598
1,350

26,297
1,018

22,805
1,400

22,827
1,452

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

15,622
369
999
1,974
466
895
10,138

23,179
632
1,091
1,834
556
699
17,161

18,027
186
1,425
1,958
494
561
11,667

18,793
127
1,545
2,518
472
130
12,185

15,468
75
1,699
2,441
484
189
8,765

12,905
150
1,457
2,167
417
179
6,610

12,589
79
1,097
2,063
1,406
155
5,980

16,098
50
1,178
1,906
1,337
141
9,729

19,578
70
1,287
1,959
2,104
143
13,097

19

Canada

632

1,401

2,374

1,027

539

389

693

781

320

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,783
59
147
57
866
12
2

1,668
236
50
78
1,030
17
1

1,386
141
229
143
604
26
1

965
17
86
91
517
21
1

1,320
6
49
76
845
51
1

1,351
1
73
154
834
23
1

1,495
7
101
152
957
59
2

1,528
1
78
137
1,064
22
2

1,369
1
52
131
944
19
1

27
28
29

Asia
Japan
Middle Eastern oil-exporting countries 1

5,988
5,436
27

6,423
5,869
25

4,387
4,102
27

4,197
3,964
18

4,315
3,869
0

4,005
3,754
0

3,785
3,612
0

3,475
3,337
1

3,217
3,035
2

30
31

Africa
Oil-exporting countries 2

150
122

38
0

60
0

33
0

29
0

31
0

28
0

31
2

29
0

66

340

643

676

651

650

665

545

545

7,700
331
481
767
500
413
3,568

9,767
479
680
1,002
766
624
4,303

10,228
666
764
1,274
439
375
4,086

9,951
565
840
1,068
443
407
4,041

9,987
557
612
1,219
485
349
3,743

11,010
623
740
1,408
440
507
4,286

10,030
278
920
1,392
429
499
3,697

8,580
229
654
1,088
361
535
3,008

8,718
189
656
1,143
432
497
2,959

32
33
34
35
36
37
38
39

All other

3

Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

40

Canada

1,040

1,090

1,175

1,347

1,206

1,504

1,390

1,597

1,670

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,740
1
205
98
56
416
221

2,574
63
297
196
14
665
328

2,176
16
203
220
12
565
261

2,051
27
174
249
5
520
219

2,285
14
209
246
27
557
196

1,840
48
168
256
5
511
230

1,618
14
198
152
10
347
202

1,612
11
225
107
7
437
155

1,674
19
180
112
5
490
149

48
49
50

Asia
Japan
Middle Eastern oil-exporting countries 1

10,421
3,315
1,912

13,422
4,614
2,168

14,966
4,500
3,111

14,672
4,372
3,138

13,611
3,995
3,194

13,539
3,779
3,582

12,342
3,827
2,852

10,428
2,715
2,479

10,039
2,753
2,209

51
52

Africa
Oil-exporting countries 2

619
254

1,040
532

874
408

833
376

921
354

810
372

794
393

727
377

832
392

687

840

1,086

1,136

1,101

1,245

1,141

1,261

1,346

53

Other

3

1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




J. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.23

CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
Millions of dollars, end of period

Reported by Nonbanking Business Enterprises in

1999

1998
Type of claim, and area or country

A59

1995

1996

1997
Mar.

June

Sept.

Dec.

Mar.

June p

1 Total

52,509

65,897

68,128

71,004

63,188

67,976

77,462

68,973

63,767

2 Payable in dollars
3 Payable in foreign currencies

48,711
3,798

59,156
6,741

62,173
5,955

65,359
5,645

57,587
5,601

62,034
5,942

72,171
5,291

63,988
4,985

56,931
6,836

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

27,398
15,133
14,654
479
12,265
10,976
1,289

37,523
21,624
20,852
772
15,899
12,374
3,525

36,959
22,909
21,060
1,849
14,050
11,806
2,244

40,301
20,863
19,155
1,708
19,438
16,981
2,457

32,341
14,762
13,084
1,678
17,579
14,904
2,675

37,262
15,406
13,374
2,032
21,856
19,867
1,989

46,260
30,199
28,549
1,650
16,061
14,049
2,012

38,136
18,686
17,101
1,585
19,450
17,419
2,031

31,877
13,350
11,636
1,714
18,527
14,762
3,765

11 Commercial claims
12
Trade receivables
13
Advance payments and other claims . . . .

25,111
22,998
2,113

28,374
25,751
2,623

31,169
27,536
3,633

30,703
26,888
3,815

30,847
26,764
4,083

30,714
26,330
4,384

31,202
27,202
4,000

30,837
26,724
4,113

31,890
27,754
4,136

14
15

Payable in dollars
Payable in foreign currencies

23,081
2,030

25,930
2,444

29,307
1,862

29,223
1,480

29,599
1,248

28,793
1,921

29,573
1,629

29,468
1,369

30,533
1,357

16
17
18
19
20
21
22

By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

7,609
193
803
436
517
498
4,303

11,085
185
694
276
493
474
7,922

14,999
406
1,015
427
677
434
10,337

14,187
378
902
393
911
401
9,289

14,091
518
796
290
975
403
9,639

14,473
496
1,140
359
867
409
9,849

12,294
661
864
304
875
414
7,766

12,800
469
913
302
955
530
8,357

13,898
457
1,368
367
959
504
8,589

23

Canada

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

31
32
33

Asia
Japan
Middle Eastern oil-exporting countries'

34

Africa

35
36

37
38
39
40
41
42
43
44

Oil-exporting countries 2
All other 3
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

2,851

3,442

3,313

4,688

3,020

4,090

2,503

3,111

2,828

14,500
1,965
81
830
10,393
554
32

20,032
1,553
140
1,468
15,536
457
31

15,543
2,308
108
1,313
10,462
537
36

18,207
1,316
66
1,408
13,551
967
47

11,967
1,306
48
1,394
7,349
1,089
57

15,758
2,105
63
710
10,960
1,122
50

27,714
403
39
835
24,388
1,245
55

18,825
666
41
1,112
14,621
1,583
72

11,486
467
39
1,102
7,393
1,702
71

1,579
871
3

2,221
1,035
22

2,133
823
11

2,174
791
9

2,376
886
12

2,121
928
13

3,027
1,194
9

2,648
942
8

2,801
949
5

276
5

174
14

319
15

325
16

155
15

157
16

159
16

174
26

228
5

583

569

652

720

732

663

563

578

636

9,824
231
1,830
1,070
452
520
2,656

10,443
226
1,644
1,337
562
642
2,946

12,120
328
1,796
1,614
597
554
3,660

12,854
232
1,939
1,670
534
476
4,828

12,882
216
1,955
1,757
492
418
4,664

13,029
219
2,098
1,502
463
546
4,681

13,246
238
2,171
1,822
467
483
4,769

12,782
281
2,173
1,599
415
367
4,529

12,958
286
2,092
1,660
389
385
4,615

1,951

2,165

2,660

2,882

2,779

2,291

2,617

2,983

2,844

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

4,364
30
272
898
79
993
285

5,276
35
275
1,303
190
1,128
357

5,750
27
244
1,162
109
1,392
576

5,481
13
238
1,128
88
1,302
441

6,082
12
359
1,183
110
1,462
585

5,773
39
173
1,062
91
1,356
566

6,296
24
536
1,024
104
1,545
401

5,930
10
500
936
117
1,431
361

6,267
21
583
885
127
1,474
383

52
53
54

Asia
Japan
Middle Eastern oil-exporting countries'

7,312
1,870
974

8,376
2,003
971

8,713
1,976
1,107

7,638
1,713
987

7,367
1,757
1,127

7,190
1,789
967

7,192
1,681
1,135

7,080
1,486
1,286

7,678
1,509
1,465

55
56

Africa
Oil-exporting countries 2

654
87

746
166

680
119

613
122

657
116

740
128

711
165

685
116

738
202

57

Other 3

1,006

1,368

1,246

1,235

1,080

1,691

1,140

1,377

1,405

1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

A60
3.24

International Statistics • January 2000
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1999
Transaction, and area or country

1997

1999

1998
Jan.Sept.

Mar.

Apr.

May'

June'

July'

Aug.'

Sept.P

178,428
166,212

175,555
172,173

U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales

1,097,958
1,028,361

1,574,185
1,524,189

1,626,045
1,553,504

179,801'
176,840'

222,900'
205,307'

185,646
177,108

179,785
167,878

188,099
179,783

3 Net purchases, o r sales (—)

69,597

49,996

72,541

2,961 r

17,593 r

8,538

11,907

8,316

12,216

3,382

4 Foreign countries

69,754

50,376

72,547

2,961 r

17,577 r

8,549

11,893

8,361

12,225

3,367

62,688
6,641
9,059
3,831
7,848
22,478
-1,406
5,203
383
2,072
4,787
472
342

68,124
5,672
9,195
8,249
5,001
23,952
-4,689
760
-1,449
-12,347
-1,171
639
-662

66,412
3,168
7,627
4,914
5,180
32,036
988
5,356
-319
-985
3,187
412
683

6,563
1,199
480
1,103
1,551
575
723
-1,341'
298
-3,257
-1,925
87
-112

11,493
534
1,814
417
1,934
3,758
-129
5,596'
-355
905
1,458
37
30

5,260
-206
971
738
481
1,822
-159
2,049
419
574
464
138
268

7,663
919
1,376
1,181
1,452
1,300
401
2,474
64
1,271
681
81
-61

6,171
-55
-354
404
-2,822
8,498
153
2,935
-273
-671
-452
14
32

9,568
269
1,322
566
827
4,578
-50
846
174
1,666
1,269
-39
60

7,243
146
111
-537
1,185
4,779
-927
-4,687
-26
1,463
2,652
61
240

-157

-380

-6

0

16

-11

14

-45

-9

15

19 Foreign purchases
20 Foreign sales

610,116
475,958

905,782
727,044

641,321
454,837

77,101
52,331

70,044
47,516

66,558
49,145

67,569
52,197

75,778
47,984

64,113
46,667

76,270
48,902

21 Net purchases, o r sales (—)

134,158

178,738

186,484

24,770

22,528

17,413

15,372

27,794

17,446

27,368

22 Foreign countries

133,595

179,081

185,932

24,974

22,468

17,326

15,383

27,520

17,473

27,037

71,631
3,300
2,742
3,576
187
54,134
6,264
34,733
2,155
16,996
9,357
1,005
811

130,057
3,386
4,369
3,443
4,826
99,637
6,121
23,938
4,997
12,662
8,384
190
1,116

105,118
1,496
5,313
2,027
3,302
78,568
3,302
43,730
1,998
30,174
11,062
665
945

12,832
22
190
418
272
9,268
640
5,203
859
5,132
589
261
47

10,527
-36
-43
106
467
8,617
319
5,967
364
4,904
1,215
331
56

10,911
352
797
168
128
8,310
413
3,382
-717
3,224
0
82
31

9,553
258
321
187
-26
7,651
184
4,603
-114
1,458
310
-307
6

18,196
447
1,707
336
705
13,582
-23
5,088
-182
4,031
3,020
122
288

10,208
160
-77
144
322
7,960
286
5,558
-219
1,179
827
59
402

13,724
24
752
279
496
9,766
908
5,490
257
6,698
4,375
-189
149

563

-343

552

-204

60

87

-11

274

-27

331

2,455
86,345
83,890
-499
72,372
72,871

6,220
97,622
91,402
8,969
79,013
70,044

-2,236
106,264
108,500
-4,777
63,975
68,752

594
91,851
91,257
-6,421
70,061
76,482

1,058
97,463
96,405
1,132
66,661
65,529

5
6
7
8
9
10
11
12
13
14
lb
16
17

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

18 Nonmonetary international a n d
regional organizations
BONDS2

23
24
25
26
2/
28
29
30
31
32
33
34
35

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

36 Nonmonetary international a n d
regional organizations

Foreign securities
37 Stocks, net purchases, or sales (—)
38
Foreign purchases
39
Foreign sales
40 Bonds, net purchases, or sales (—)
41
Foreign purchases
42
Foreign sales

-40,942
756,015
796,957
-48,171
1,451,704
1,499,875

6,227
929,923
923,696
-17,350
1,328,281
1,345,631

21,728
825,442
803,714
-7,592
623,857
631,449

1,783'
95,302'
93,519'
1,710
76,129
74,419

5,503'
98,607'
93,104'
-5,147
73,376
78,523

-89,113

-11,123

14,136

3,493 r

356 r

1,956

15,189

-7,013

-5,827

2,190

44 Foreign countries

-88,921

-10,778

13,823

3,533 r

474 r

2,056

15,219

-7,104

-6,010

2,260

45
46
47
48
49
50
51

-29,874
-3,085
-25,258
-25,123
-10,001
-3,293
-2,288

12,632
-1,901
-13,798
-3,992
-1,742
-1,225
-2,494

49,796
-1,003
-9,678
-24,146
-25,582
-45
-1,101

14,026'
-131
-3,660'
-7,155
-7,250
-16
469

9,710
-449
-4,433'
-3,946
-3,445
20
-428

5,845
-537
-2,351
-494
-704
112
-519

16,749
1,202
-2,785
194
-1,241
-25
-116

-3,759
-1,055
445
-3,330
-4,323
-21
616

-1,829
525
-299
-4,303
-4,805
4
-108

2,217
303
601
-210
-565
-116
-535

-192

-345

313

-100

-30

91

183

-70

43 Net purchases, o r sales (—), of stocks a n d bonds

Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries

52 N o n m o n e t a r y international a n d
regional organizations

....

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).




-40

-118

2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.

Securities Holdings and Transactions
3.25

MARKETABLE U.S. TREASURY BONDS AND NOTES

A61

Foreign Transactions1

Millions of dollars; net purchases, or sales (—) during period
1999

1999
Area or country

1997

1998
Jan.Sept.

1 Total estimated

184,171

Mar.

49,039

-1,256

1,532
1,762

Apr.

Sept. p

July

Aug.

-609

-6,242

19,118

87

-815

-6,226

18,847

-4

May

June

-3,271

5,638

-3,257

5,316

183,688

46,570

-1,387

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

144,921
3,427
22,471
1,746
-465
6,028
98,253
13,461
-811

23,797
3,805
144
-5,533
1,486
5,240
14,384
4,271
615

-40,937
1,425
1,090
1,364
1,019
-3,677
-20,734
-21,424
8,336

1,342
-54
428
197
386
-1,457
1,129
713
213

-15,394
476
-653
-256
-462
-302
-6.672
-7,525
1,205

-3,997
121
-290
797
-21
-121
-4,528
45
2,580

-5,796
753
538
-77
579
971
-7,215
-1,345
460

-5,740
37
643
-1,224
-229
-216
1,385
-6,136
1,382

1,771
105
1,438
453
876
-714
1,934
-2,321
1,339

-9,268
12
-963
-423
-45
234
-3,534
-4,549
1,459

12
13
14
15
16
17
18
19

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles

-2,554
655
-549
-2,660
39,567
20,360
1,524
1,041

-3,662
59
9,523
-13,244
27,433
13,048
751
-2,364

6,994
216
1,495
5,283
25,329
15,873
-1,598
489

1,100
-445
-2,570
4,115
-1,714
-1,311
-52
873

5,200
2
3,654
1,544
5,973
6,475
-11
-230

1,364
88
-123
1,399
5,631
1,284
-198
-64

-1,403
-31
-52
-1,320
6,489
4,905
-246
-319

693
131
-43
605
-2,319
-394
-178
-64

8,695
15
1,650
7,030
6,832
2,913
-622
832

3,003
10
2,982
11
5,344
5,259
-302
-240

483
621
170

2,469
1,502
199

131
-194
670

-230
-206
-5

-14
15
0

322
223
122

206
-8
192

-16
-101
191

271
233
175

91
98
-9

183,688
43,959
139,729

46,570
4,123
42,447

-1,387
-11,333
9,946

1,762
-4,845
6,607

-3,257
-6,696
3,439

5,316
3,223
2,093

-815
397
-1,212

-6,226
-1,773
-4,453

18,847
2,393
16,454

-4
-1,796
1,792

7,636
-12

-16,554
2

7,612
1

1,478
0

65
0

2,887
0

238
0

-38
0

130
1

401
0

2 Foreign countries

Japan
Africa
Other

20 Nonmonetary international and regional organizations
21
International
22
Latin American regional
MEMO
23 Foreign countries
24
Official institutions
25
Other foreign
Oil-exporting countries
26 Middle E a s t 2
27

1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.




2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.

A62
3.28

International Statistics • January 2000
FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U S . DOLLAR 1
Currency units per dollar except as noted
1999
Item
June

July

Aug.

Sept.

Oct.

Nov.

Exchange Rates
COUNTRY/CURRENCY UNIT
1
2
3
4
5
6
7
8
9
10
11
12

Australia/dollar 2
Austria/schilling
Belgium/franc
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro'
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

13
14
15
16
17
18
19
20
21
22
23

Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar 2
Norway/krone
Portugal/escudo

24
25
26
27
28
29
30
31
32
33
34

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2
Venezuela/bolivar

78.28
10.589
30.97
1.0051
1.3638
8.3389
5.8003
n.a.
4.5948
5.1158
1.5049
240.82

74.37
12.206
35.81
1.0779
1.3849
8.3193
6.6092
n.a.
5.1956
5.8393
1.7348
273.28

62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
n.a.
5.3473
5.8995
1.7597
295.70

65.63
n.a.
n.a.
1.7669
1.4695
8.2780
7.1643
1.0377
n.a.
n.a.
n.a.
312.49

65.62
n.a.
n.a.
1.8023
1.4890
8.2776
7.1792
1.0370
n.a.
n.a.
n.a.
313.52

64.46
n.a.
n.a.
1.8859
1.4932
8.2772
7.0144
1.0605
n.a.
n.a.
n.a.
307.84

64.95
n.a.
n.a.
1.8987
1.4771
8.2774
7.0828
1.0497
n.a.
n.a.
n.a.
311.68

65.09
n.a.
n.a.
1.9688
1.4776
8.2775
6.9450
1.0706
n.a.
n.a.
n.a.
307.71

63.88
n.a.
n.a.
1.9314
1.4674
8.2782
7.2019
1.0328
n.a.
n.a.
n.a.
318.24

7.7345
35.51
159.95
1,542.76
108.78
2.5154
7.600
1.6863
68.77
6.4594
154.28

7.7431
36.36
151.63
1,703.81
121.06
2.8173
7.918
1.9525
66.25
7.0857
175.44

7.7467
41.36
142.48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25

7.7575
43.21
n.a.
n.a.
120.72
3.8000
9.515
n.a.
53.25
7.8749
n.a.

7.7603
43.36
n.a.
n.a.
119.33
3.8000
9.370
n.a.
52.61
7.9029
n.a.

7.7638
43.50
n.a.
n.a.
113.23
3.8000
9.398
n.a.
52.59
7.8036
n.a.

7.7665
43.60
n.a.
n.a.
106.88
3.8000
9.341
n.a.
52.30
7.8361
n.a.

7.7696
43.55
n.a.
n.a.
105.97
3.8000
9.575
n.a.
51.42
7.7402
n.a.

7.7718
43.46
n.a.
n.a.
104.65
3.8000
9.416
n.a.
51.22
7.9367
n.a.

1.4100
4.3011
805.00
126.68
55.289
6.7082
1.2361
27.468
25.359
156.07
417.19

1.4857
4.6072
947.65
146.53
59.026
7.6446
1.4514
28.775
31.072
163.76
488.39

1.6722
5.5417
1,400.40
149.41
65.006
7.9522
1.4506
33.547
41.262
165.73
548.39

1.7107
6.0880
1,168.91
n.a.
71.211
8.5065
1.5374
32.525
36.926
159.50
603.29

1.6958
6.1182
1,189.10
n.a.
71.912
8.4431
1.5474
32.338
37.143
157.51
611.17

1.6787
6.1302
1,198.31
n.a.
71.868
8.2589
1.5093
32.076
38.060
160.58
615.95

1.6965
6.0563
1,201.00
n.a.
71.942
8.2264
1.5262
31.848
40.060
162.47
625.41

1.6757
6.1029
1,205.29
n.a.
71.747
8.1492
1.4896
31.828
39.416
165.72
630.75

1.6699
6.1424
1,176.98
n.a.
72.040
8.3586
1.5543
31.794
38.749
162.05
634.80

Indexes 4
NOMINAL
35 Broad (January 1997 = 100) 5
36 Major currencies (March 1973 = 100) 6
H Other important trading partners (January
1997= 100) 7

97.40
84.60

104.44
91.24

116.48
95.79

117.93
96.07

117.97
96.31

117.00
94.31

116.38
92.92

115.88
91.94

116.08
92.87

98.26

104.67

126.03

129.03

128.73

129.73

130.60

131.06

129.93

91.33 r
92.25 r

99.35 r
97.25 r

99.61
98.61

99.91
99.19

99.04
97.13 r

98.49 r
95.91

97.91'
94.93 r

97.76
95.89

r

r

106.46

REAL
38 Broad (March 1973 = 100) 5
39 Major currencies (March 1973= 100) 6
40 Other important trading partners (March
1973 = 100) 7

86.72
84.95 r
94.69

95.87

108.50

1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering address,
see inside front cover.
2. Value in U.S. cents.
3. As of January 1999, the euro is reported in place of the individual euro area currencies.
These currency rates can be derived from the euro rate by using the fixed conversion rates (in
currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564

Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds




1936.27
40.3399
2.20371
200.482
166.386

Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas

107.25

107.18

107.90

108.25

108.20

4. The December 1999 Bulletin contains revised index values resulting from the annual
revision to the trade weights. For more information on the indexes of the foreign exchange
value of the dollar, see Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.

A63

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published

Semiannually,

with Latest Bulletin Reference

Anticipated schedule of release dates for periodic releases

Issue
December 1999

Page
A72

Issue

Page

SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
September 30, 1998
December 31, 1998
March 31, 1999
June 30, 1999

February
May
August
November

1999
1999
1999
1999

A64
A64
A64
A64

Terms of lending at commercial banks
November 1998
February 1999
May 1999
August 1999

February
May
August
November

1999
1999
1999
1999

A66
A66
A66
A66

Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1998
December 31, 1998
March 31, 1999
June 30, 1999

February
May
August
November

1999
1999
1999
1999

A72
All
A72
A72

July 1999
October 1999
January 2000

A64
A64
A64

Residential lending reported under the Home Mortgage Disclosure Act
1997
1998

September 1998
September 1999

A64
A64

Disposition of applications for private mortgage insurance
1997
1998

September 1998
September 1999

A72
A73

Small loans to businesses and farms
1997
1998

September 1998
September 1999

A76
A76

Community development lending reported under the Community Reinvestment Act
1997
1998

September 1998
September 1999

A79
A79

Pro forma balance sheet and income statements for priced service operations
March 31, 1999
June 30, 1999
September 30, 1999




A64
4.31

Special Tables • January 2000
PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES
A.

Pro forma balance sheet

Millions of dollars

Item
Short-term assets (Note 1)
Imputed reserve requirement on clearing balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Items in process of collection

Sept. 30, 1999

680.5
6.124.5
70.7
4.3
21.0
3.532.6

Total short-term assets
Long-term assets (Note 2)
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs

Sept. 30, 1998

655.7
5,901.3
68.6
4.5
17.1
4,169.0
10,433.7

418.8
145.7
40.9
516.4

396.4
126.0
22.9
415.5

Total long-term assets

1,121.8

11,777.3

7.076.8
3.260.9
96.0

Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
Postretirement/postemployment benefits obligation

960.9

11,555.5

Total assets
Short-term liabilities
Clearing balances and balances arising from early credit
of uncollected items
Deferred-availability items
Short-term debt

6,146.8
4,579.2
90.4
10,433.7

0.0
225.2
215.9
441.1

405.5

10,874.7

11,221.9

680.7

555.5

11,555.5

11,777.3

Equity
Total liabilities a n d equity (Note 3)
NOTE. Components may not sum to totals because of rounding. The priced services
financial statements consist of these tables and the accompanying notes.
(L) SHORT-TERM ASSETS

The imputed reserve requirement on clearing balances held at Reserve Banks by depository
institutions reflects a treatment comparable to that of compensating balances held at correspondent banks by respondent institutions. The reserve requirement imposed on respondent
balances must be held as vault cash or as nonearning balances maintained at a Reserve Bank;
thus, a portion of priced services clearing balances held with the Federal Reserve is shown as
required reserves on the asset side of the balance sheet. The remainder of clearing balances is
assumed to be invested in three-month Treasury bills, shown as investment in marketable
securities.
Receivables are (1) amounts due the Reserve Banks for priced services and (2) the share of
suspense-account and difference-account balances related to priced services.
Materials and supplies are the inventory value of short-term assets.
Prepaid expenses include salary advances and travel advances for priced-service personnel.
Items in process of collection is gross Federal Reserve cash items in process of collection
(CIPC) stated on a basis comparable to that of a commercial bank. It reflects adjustments for
intra-System items that would otherwise be double-counted on a consolidated Federal
Reserve balance sheet; adjustments for items associated with non-priced items, such as those
collected for government agencies; and adjustments for items associated with providing fixed
availability or credit before items are received and processed. Among the costs to be
recovered under the Monetary Control Act is the cost of float, or net CIPC during the period
(the difference between gross CIPC and deferred-availability items which is the portion of
gross CIPC that involves a financing cost), valued at the federal funds rate.




10,816.4

0.0
190.9
214.6

Total long-term liabilities
Total liabilities

10,816.4

(2) LONG-TERM ASSETS
Consists of long-term assets used solely in priced services, the priced-services portion of
long-term assets shared with nonpriced services, and an estimate of the assets of the Board of
Governors used in the development of priced services. Effective Jan. 1, 1987, the Reserve
Banks implemented the Financial Accounting Standards Board's Statement of Financial
Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS 87). Accordingly,
the Federal Reserve Banks recognized credits to expenses of $24.9 million in the third quarter
of 1999, $32.3 million in the second quarter of 1999, $21.9 million in the first quarter of 1999,
$20.4 million in the third quarter of 1998, $28.7 million in the second quarter of 1998, and
$16.2 million in the first quarter of 1998, and corresponding increases in this asset account.
( 3 ) LIABILITIES AND EQUITY

Under the matched-book capital structure for assets that are not "self-financing," short-term
assets are financed with short-term debt. Long-term assets are financed with long-term debt
and equity in a proportion equal to the ratio of long-term debt to equity for the fifty largest
bank holding companies, which are used in the model for the private-sector adjustment factor
(PSAF). The PSAF consists of the taxes that would have been paid and the return on capital
that would have been provided had priced services been furnished by a private-sector firm.
Other short-term liabilities include clearing balances maintained at Reserve Banks and
deposit balances arising from float. Other long-term liabilities consist of obligations on capital
leases.

Nonbank-Reported

4.31

Data

PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES
B.

Pro forma income statement

Millions of dollars

Item

Quarter ending Sept. 30, 1999

Quarter ending Sept. 30, 1998

Revenue from services provided to depository institutions (Note 4)

210.9

205.5

Operating expenses (Note 5)

173.6

167.0

37.3

38.4

Income from operations
Inputed costs (Note 6)
Interest on float
Interest on debt
Sales taxes
FDIC insurance

1.0
4.6
2.3
0.9

Income from operations after imputed costs

8.8

1.8
4.3
2.4
0.7

28.5

Other income and expenses (Note 7)
Investment income on clearing balances
Earnings credits

84.6
(79.2)

5.4

9.1
29.3

89.8
(85.6)

4.2

Income before income taxes
Inputed income taxes (Note 8)

33.9
10.9

33.5
10.7

Net income

23.1

22.7

14.3

17.1

MEMO

Targeted return on equity (Note 9)

Nine months ending Sept. 30, 1999

Revenue from services provided to depository institutions (Note 4)

Nine months ending Sept. 30, 1998

619.3
508.5

Operating expenses (Note 5)
Income from operations

602.5
483.9

110.8

Imputed costs (Note 6)
Interest on float
Interest on debt
Sales taxes
FDIC insurance

6.9
13.8
6.9
2.5

Income from operations after imputed costs

30.2

118.6
11.1
12.8
6.1
0.7

80.7

Other income and expenses (Note 7)
Investment income on clearing balances
Earnings credits

243.8
(220.2)

Income before income taxes

23.6
104.3

30.7
88.0

271.3
(251.2)

20.2
108.1

Imputed income taxes (Note 8)

33.4

34.7

Net income

70.9

73.4

45.8

49.9

MEMO

Targeted return on equity (Note 9)
NOTE. Components may not sum to totals because of rounding. The priced services
financial statements consist of these tables and the accompanying notes.
(4) REVENUE
Revenue represents charges to depository institutions for priced services and is realized from
each institution through one of two methods: direct charges to an institution's account or
charges against its accumulated earnings credits.
(5) OPERATING EXPENSES
Operating expenses consist of the direct, indirect, and other general administrative expenses
of the Reserve Banks for priced services plus the expenses for staff members of the Board of
Governors working directly on the development of priced services. The expenses for Board
staff members were $.85 million in the first three quarters of 1999 and $0.7 million in the first
three quarters of 1998. The credit to expenses under SFAS 87 (see note 2) is reflected in
operating expenses.
( 6 ) IMPUTED COSTS

Imputed costs consist of interest on float, interest on debt, sales taxes, and the FDIC
assessment. Interest on float is derived from the value of float to be recovered, either
explicitly or through per-item fees, during the period. Float costs include costs for checks,
book-entry securities, noncash collection, ACH, and funds transfers.
Interest is imputed on the debt assumed necessary to finance priced-service assets. The
sales taxes and FDIC assessment that the Federal Reserve would have paid had it been a
private-sector firm are among the components of the PSAF (see note 3).
Float costs are based on the actual float incurred for each priced service, multiplied by the
appropriate federal funds rate. Other imputed costs are allocated among priced services
according to the ratio of operating expenses less shipping expenses for each service to the
total expenses for all services less the total shipping expenses for all services.
The following list shows the daily average recovery of float (before converting to float
costs) by the Reserve Banks for the third quarter of 1999 and 1998 in millions of dollars:
1999
Total float
Unrecovered float
Float subject to recovery
Sources of float recovery
Income on clearing balances
As-of adjustments
Direct charges
Per-item fees




1998

437.1
(148.5)
585.6

386.2
19.7
366.5

44.3
352.0
100.2
89.0

36.6
240.2
113.7
(23.9)

Unrecovered float includes float generated by services to government agencies and by other
central bank services. Float recovered through income on clearing balances is the result of the
increase in investable clearing balances; the increase is produced by a deduction for float for
cash items in process of collection, which reduces imputed reserve requirements. The income
on clearing balances reduces the float to be recovered through other means. As-of adjustments
are memorandum adjustments to an institution's reserve or clearing position to recover float
incurred by the institution. Direct charges are billed to the institution for float incurred when
an institution chooses to close on a normal business day and for float incurred on interterritory
check transportation. Float recovered through direct charges is valued at cost using the federal
funds rate and charged directly to an institution's account. Float recovered through per-item
fees is valued at the federal funds rate and has been added to the cost base subject to recovery
in the second quarters of 1999 and 1998.
( 7 ) OTHER INCOME AND EXPENSES

Consists of imputed investment income on clearing balances and the actual cost of earnings
credits. Investment income on clearing balances represents the average coupon-equivalent
yield on three-month Treasury bills applied to the total clearing balance maintained, adjusted
for the effect of reserve requirements on clearing balances. Expenses for earnings credits
granted to depository institutions on their clearing balances are derived by applying the
average federal funds rate to the required portion of the clearing balances, adjusted for the net
effect of reserve requirements on clearing balances.
( 8 ) INCOME TAXES

Imputed income taxes are calculated at the effective tax rate derived from the PSAF model
(see note 3).
(9) RETURN ON EQUITY
Represents the after-tax rate of return on equity that the Federal Reserve would have earned
had it been a private business firm, as derived from the PSAF model (see note 3). This amount
is adjusted to reflect the recovery of automation consolidation costs of $.3 million for the third
quarter of 1999, $.2 million for the second quarter of 1999, $.4 million for first quarter of
1999, $4.0 million for the third quarter of 1998, $4.1 million in the second quarter of 1998,
and $2.6 million for the first quarter of 1998. The Reserve Banks plan to recover these
amounts, along with a finance charge, by the end of 1999.

A65

A66

Federal Reserve Bulletin • January 2000

Index to Statistical Tables
References are to pages A3-A65

although the prefix "A" is omitted in this index

ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44,45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21
Federal Reserve Banks, 10
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21
Commercial and industrial loans, 15-21
Consumer loans held, by type and terms, 36
Real estate mortgages held, by holder and property, 35
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31,61
Cost of living {See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24

DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4, 5, 6, 12

Deposits (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 5, 10
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 32
EMPLOYMENT, 42
Euro, 62
FARM mortgage loans, 35




Federal agency obligations, 5, 9, 10, 11, 28, 29
Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federal Reserve System
Balance sheet for priced services, 64, 65
Condition statement for priced services, 64, 65
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37-41
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55, 56, 57, 59
Liabilities to, 51, 52, 53, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME and expenses, Federal Reserve System, 64, 65
Income, personal and national, 42,48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Consumer credit, 36
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32

A67

Investments (See also specific types)
Commercial banks, 4, 15-21
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)

Loans (See also specific types)
Commercial banks, 15-21
Federal Reserve Banks, 5, 6,1, 10, 11
Federal Reserve System, 64, 65
Financial institutions, 35
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21, 35
Terms, yields, and activity, 34
Type of holder and property mortgaged, 35
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4, 5, 6, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42




SAVING
Flow of funds, 37^11
National income accounts, 48
Savings institutions, 35, 36, 3 7 ^ 1
Savings deposits (See Time and savings deposits)

Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 15-21, 27
Dealer transactions, positions, and financing, 29
Federal Reserve Bank holdings, 5, 10, 11, 27
Foreign and international holdings and
transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
US. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)

A66

Federal Reserve Bulletin • January 2000

Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN, Chairman
ROGER W . FERGUSON, JR., Vice

Chairman

OFFICE OF BOARD MEMBERS
Assistant to the Board
DONALD J. W I N N , Assistant to the Board
WINTHROP P. HAMBLEY, Deputy Congressional Liaison
BOB STAHLY MOORE, Special Assistant to the Board
D I A N E E . WERNEKE, Special Assistant to the Board
LYNN S . FOX,

LEGAL 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
KATHERINE H . WHEATLEY, Assistant General Counsel

J. VIRGIL MATTINGLY, JR.,
SCOTT G . ALVAREZ,

OFFICE OF THE SECRETARY
Secretary
ROBERT DEV. FRIERSON, Associate Secretary
BARBARA R . LOWREY, Associate Secretary and Ombudsman
JENNIFER J. JOHNSON,

DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C . SCHEMERING, Deputy Director
HERBERT A . BIERN, Associate Director
ROGER T. COLE, Associate Director
WILLIAM A . RYBACK, Associate Director
GERALD A . EDWARDS, JR., Deputy Associate Director
STEPHEN M . HOFFMAN, JR., Deputy Associate Director
JAMES V. HOUPT, Deputy Associate Director
JACK P. JENNINGS, Deputy Associate Director
MICHAEL G . MARTINSON, Deputy Associate Director
SIDNEY M . SUSSAN, Deputy Associate Director
MOLLY S . WASSOM, Deputy Associate Director
HOWARD A . AMER, Assistant Director
NORAH M . BARGER, Assistant Director
BETSY CROSS, Assistant Director
RICHARD A . SMALL, Assistant Director
WILLIAM C . SCHNEIDER, JR., Project Director,
National Information Center




EDWARD W . KELLEY, JR.
LAURENCE H . MEYER

DIVISION OF INTERNATIONAL FINANCE
KAREN H . JOHNSON, Director
DAVID H . HOWARD, Deputy Director
VINCENT R . REINHART, Deputy Director
THOMAS A . CONNORS, Deputy Director
DALE W . HENDERSON, Associate Director
DONALD B . ADAMS, Senior Adviser
RICHARD T. FREEMAN, Assistant Director
WILLIAM L . HELKIE, Assistant Director
STEVEN B . KAMIN, Assistant Director
RALPH W . TRYON, Assistant Director
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
WILLIAM R . JONES, Associate Director
MYRON L . KWAST, Associate Director
PATRICK M . PARKINSON, Associate Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
MARTHA S . SCANLON, Deputy Associate Director
STEPHEN D . OLINER, Assistant Director
STEPHEN A . RHOADES, Assistant Director
JANICE SHACK-MARQUEZ, Assistant Director
CHARLES S. STRUCKMEYER, Assistant Director
ALICE PATRICIA WHITE, Assistant Director
JOYCE K . ZICKLER, Assistant Director
G L E N N B . CANNER, Senior Adviser
DAVID S . JONES, Senior Adviser
DIVISION OF MONETARY AFFAIRS
DONALD L . KOHN, Director
DAVID E . LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D . PORTER, Deputy Associate Director
WILLIAM C . WHITESELL, Assistant Director
NORMAND R . V . BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
DOLORES S . SMITH, Director
G L E N N E . LONEY, Deputy Director
SANDRA F. BRAUNSTEIN, Assistant Director
MAUREEN P. ENGLISH, Assistant Director
ADRIENNE D . HURT, Assistant Director
IRENE SHAWN M C N U L T Y , Assistant Director

A69

EDWARD M . GRAMLICH

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
STEPHEN R . MALPHRUS, Staff Director
MANAGEMENT DIVISION
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R . PAULEY, Associate Director, Human Resources
Function
SHEILA CLARK, EEO Programs Director
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
DIVISION OF INFORMATION TECHNOLOGY
RICHARD C . STEVENS, Director
MARIANNE M . EMERSON, Deputy Director
TILLENA G . CLARK, Assistant Director
MAUREEN H A N N A N , Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W . RADEBAUGH, JR., Assistant Director




DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
LOUISE L . ROSEMAN, Director
PAUL W . BETTGE, Assistant Director
KENNETH D . BUCKLEY, Assistant Director
JACK DENNIS, JR., Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
JEFFREY C . MARQUARDT, Assistant Director
MARSHA REIDHILL, Assistant Director
JEFF STEHM, Assistant Director
OFFICE OF THE INSPECTOR GENERAL
B A R R Y

R

- SNYDER,

Inspector General
Deputy Inspector General

DONALD L . ROBINSON,

A66

Federal Reserve Bulletin • January 2000

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET

COMMITTEE
MEMBERS

ALAN GREENSPAN,

Chairman

WILLIAM J. MCDONOUGH,

Vice Chairman

J. ALFRED BROADDUS, JR.

JACK G U Y N N

LAURENCE H . MEYER

ROGER W. FERGUSON, JR.

JERRY L. JORDAN

ROBERT T. PARRY

EDWARD M . GRAMLICH

EDWARD W. KELLEY, JR.

ALTERNATE
THOMAS M . HOENIG

MICHAEL H . MOSKOW

CATHY E. MINEHAN

MEMBERS

WILLIAM POOLE

JAMIE B . STEWART, JR.

STAFF
Associate Economist
Associate Economist
RICHARD W. LANG, Associate Economist
DAVID E. LINDSEY, Associate Economist
ARTHUR J. ROLNICK, Associate Economist
HARVEY ROSENBLUM, Associate Economist
LAWRENCE SLIFMAN, Associate Economist
DAVID J. STOCKTON, Associate Economist

Secretary and Economist
Deputy Secretary
LYNN S. FOX, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
KAREN H . JOHNSON, Economist
MICHAEL J. PRELL, Economist
CHRISTINE M . CUMMING, Associate Economist

DAVID H . HOWARD,

DONALD L . KOHN,

WILLIAM C . HUNTER,

NORMAND R.V. BERNARD,

PETER R . FISHER,

FEDERAL ADVISORY

Manager, System Open Market Account

COUNCIL

President
D. LEWIS,Vice President

ROBERT W . GILLESPIE,
KENNETH

Seventh District
Eighth District
RICHARD A . ZONA, Ninth District
C . Q. CHANDLER, Tenth District
RICHARD W. EVANS, JR., Eleventh District
WALTER A . DODS, JR., Twelfth District

First District
III, Second District
RONALD L. HANKEY, Third District
ROBERT W . GILLESPIE, Fourth District
KENNETH D. LEWIS, Fifth District
STEPHEN A. HANSEL, Sixth District

NORMAN R . BOBINS,

LAWRENCE K. FISH,
DOUGLAS

A.

KATIE

WARNER




JAMES ANNABLE,

S.

WINCHESTER,

Co-Secretary
Co-Secretary

WILLIAM J. KORSVIK,

A71

CONSUMER ADVISORY

COUNCIL

YVONNE

S. SPARKS STRAUTHER, St. Louis, Missouri, Chairman
Boston, Massachusetts, Vice Chairman

DWIGHT GOLANN,

LAUREN ANDERSON, N e w O r l e a n s , L o u i s i a n a

JOHN C . LAMB, S a c r a m e n t o , C a l i f o r n i a

WALTER J. BOYER, G a r l a n d , T e x a s
WAYNE-KENT A . BRADSHAW, L o s A n g e l e s , C a l i f o r n i a

ANNE S. LI, Trenton, New Jersey
MARTHA W. MILLER, Greensboro, North Carolina

MALCOLM M . BUSH, C h i c a g o , I l l i n o i s

DANIEL W . MORTON, C o l u m b u s , O h i o

MARY ELLEN DOMEIER, N e w U l m , M i n n e s o t a

CAROL J. PARRY, N e w Y o r k , N e w Y o r k

JEREMY D . EISLER, B i l o x i , M i s s i s s i p p i

PHILIP PRICE, JR., P h i l a d e l p h i a , P e n n s y l v a n i a

ROBERT F. ELLIOT, Prospect Heights, Illinois

MARTA RAMOS, San Juan, Puerto Rico

JOHN C . GAMBOA, S a n F r a n c i s c o , C a l i f o r n i a

DAVID L . RAMP, St. P a u l , M i n n e s o t a

ROSE M . GARCIA, L a s C r u c e s , N e w M e x i c o

MARILYN Ross, Omaha, Nebraska

VINCENT J. GIBLIN, West Caldwell, New Jersey

ROBERT G . SCHWEMM, L e x i n g t o n , K e n t u c k y

KARLA S . IRVINE, C i n c i n n a t i , O h i o

DAVID J. SHIRK, E u g e n e , O r e g o n

WILLIE M . JONES, B o s t o n , M a s s a c h u s e t t s

GAIL M. SMALL, Lame Deer, Montana

JANET C. KOEHLER, Ponte Vedra, Florida

GARY S . WASHINGTON, C h i c a g o , I l l i n o i s

G W E N N S . KYZER, A l l e n , T e x a s

ROBERT L . WYNN, II, M a d i s o n , W i s c o n s i n

THRIFT INSTITUTIONS ADVISORY

COUNCIL

WILLIAM A . FITZGERALD, Omaha, Nebraska, President
F. WELLER MEYER, Falls Church, Virginia, Vice President

GAROLD R . BASE, P i a n o , T e x a s

BABETTE E. HEIMBUCH, Santa Monica, California

JAMES C. BLAINE, Raleigh, North Carolina

THOMAS S. JOHNSON, N e w Y o r k , N e w Y o r k

DAVID A . BOCHNOWSKI, M u n s t e r , I n d i a n a

WILLIAM A . LONGBRAKE, S e a t t l e , W a s h i n g t o n

LAWRENCE L . BOUDREAUX III, N e w O r l e a n s , L o u i s i a n a

KATHLEEN E . MARINANGEL, M c H e n r y , I l l i n o i s

RICHARD P. COUGHLIN, S t o n e h a m , M a s s a c h u s e t t s

ANTHONY J. POPP, M a r i e t t a , O h i o




A66

Federal Reserve Bulletin • January 2000

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
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A73

STAFF STUDIES: Only Summaries

Printed

in the

BULLETIN

Studies and papers on economic and financial subjects that are of
general interest. Requests to obtain single copies of the full text or
to be added to the mailing list for the series may be sent to
Publications Services.
Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of
print.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g a n d

Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y

Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.




1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n A .

Rhoades. February 1992. 11 pp.
1 6 4 . THE

1989-92

CREDIT

CRUNCH

FOR REAL ESTATE,

by

James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE "OPERATING
PERFORMANCE" AND "EVENT S T U D Y " METHODOLOGIES,

by Stephen A. Rhoades. July 1994. 37 pp.
1 7 0 . THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGULATIONS: A N ANALYSIS OF EXPERIENCE WITH THE TRUTH

IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey, December 1997. 17 pp.
1 7 1 . THE COST OF BANK REGULATION: A REVIEW OF THE EVI-

DENCE, by Gregory Elliehausen, April 1998. 35 pp.

A66

Federal Reserve Bulletin • January 2000

Maps of the Federal Reserve System

LEGEND

Both pages
• Federal Reserve Bank city
S3 Board of Governors of the Federal
Reserve System, Washington, D.C.

Facing page
• Federal Reserve Branch city
— Branch boundary

NOTE

The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth



of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.

A75

1-A

2-B

4-D

3-C

5-E
Pittsburgh

Baltimore M
D

NY

• 1[

V
Buffalo

CF

-

RI

BOSTON

/

/
Nt
Y

cinnati

T

N E W YORK

PHILADELPHIA

6-F

CLEVELAND

RICHMOND
8-H

7-G

KY

MI
I t ) IN

\VI

-

Detroit®

IA

ASs
II.

New Orleans

M.
Lounville

r i r
— ,N
• Memphis

Little
Rock (

CHICAGO

ATLANTA
9-1

IN

MS

ST. LOUIS

Ml
'
jjl|BjjHBB

• Helena

Ml

M
M

••••H• WY
H
•
MHHBIHff.
SBH^
BBP
*
W

ssfcs.

'

MINNEAPOLIS
12-L

10-J
WY

•M

Omaha*

CO

•

•8s

•

Denver
NM

/

Oklahoma Cit\
•
OK

KANSAS CITY
11-K

IX
NM

' .V ,

• H •
p p i 1 1
•
HI Paso
jPgj A




r-1

Y Houston

• S#

S.in Antonio

AZ

DALLAS

/

S A N FRANCISCO

A66

Federal Reserve Bulletin • January 2000

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

William C. Brainard
William O. Taylor

Cathy E. Minehan
Paul M. Connolly

NEW YORK*

10045

Peter G. Peterson
Charles A. Heimbold, Jr.
Bal Dixit

William J. McDonough
Jamie B. Stewart, Jr.

Buffalo

14240

PHILADELPHIA

19105

Joan Carter
Charisse R. Lillie

44101

Jerry L. Jordan
Sandra Pianalto

Cincinnati
Pittsburgh

45201
15230

David H. Hoag
To be announced
George C. Juilfs
JohnT. Ryan, III

RICHMOND*

23219

J. Alfred Broaddus, Jr.
Walter A. Varvel

Baltimore
Charlotte

21203
28230

Jeremiah J. Sheehan
Wesley S. Williams, Jr.
To be announced
To be announced
John F. Wieland
Paula Lovell
To be announced
To be announced
To be announced
To be announced
To be announced

Jack Guynn
Patrick K. Barron

Arthur C. Martinez
Robert J. Darnall
Timothy D. Leuliette

Michael H. Moskow
William C. Conrad

Susan S. Elliott
Charles W. Mueller
To be announced
To be announced
To be announced

William Poole
W. LeGrande Rives

James J. Howard
Ronald N. Zwieg
William P. Underriner

Gary H. Stern
Colleen K. Strand

Jo Marie Dancik
Terrence P. Dunn
Kathryn A. Paul
Larry W. Brummett
Gladys Styles Johnston

Thomas M. Hoenig
Richard K. Rasdall

Roger R. Hemminghaus
H. B. Zachry, Jr.
To be announced
To be announced
To be announced

Robert D. McTeer, Jr.
Helen E. Holcomb

Gary G. Michael
Nelson C. Rising
Lonnie Kane
Nancy Wilgenbusch
Barbara L. Wilson
Richard R. Sonstelie

Carl W. Turnipseed1

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

Vice President
in charge of branch

Robert T. Parry
John F. Moore

ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35283
32231
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40232
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75201
79999
77252
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Barbara B.Henshaw
Robert B. Schaub

William J. Tignanelli1
Dan M. Bechter 1
James M. McKee
Andre T. Anderson
Robert J. Slack
James T. Curry III
Melvyn K. Purcell1
Robert J. Musso 1

David R. Allardice1

Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard

Samuel H. Gane

Carl M. Gambs 1
Kelly J. Dubbert
Steven D. Evans

Sammie C. Clay
Robert Smith, III1
James L. Stull 1

Mark L. Mullinix 1
Raymond H. Laurence1
Andrea P. Wolcott
Gordon R. G. Werkema2

* Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President