Full text of Federal Reserve Bulletin : July 1995
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VOLUME 8 1 •
NUMBER 7 •
JULY 1 9 9 5
FEDERAL RESERVE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction
of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
corresponding benefits to the safety and
soundness of our nation's financial institutions, the protection of bank customers, or the
availability of credit, before the Subcommittee on Financial Institutions and Regulatory
Relief of the Senate Committee on Banking,
Housing, and Urban Affairs, May 2, 1995.
629 FINANCIAL SERVICES USED BY
SMALL BUSINESSES: EVIDENCE FROM
THE 1993 NATIONAL SURVEY
OF SMALL BUSINESS FINANCES
Using data newly available from the 1993
National Survey of Small Business Finances,
this article offers preliminary findings regarding the characteristics of the U.S. population
of small businesses—firms with fewer than
500 employees—and their use of credit and
other financial services. The main purposes of
the survey were to provide information on the
use of credit by small and minority-owned
firms and to create a general-purpose database
on the finances of such firms. Although the
1993 data are still in the editing stage, and
hence subject to revision, the broad findings
presented in this article are likely to be robust.
668 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION FOR MAY
1995
Industrial production declined 0.2 percent in
May after a revised decline of 0.5 percent in
April. At 120.9 percent of its 1987 average,
industrial production in May was 3.1 percent
higher than it was in May 1994. Capacity
utilization declined 0.5 percentage point in
May to 83.7 percent, 1.8 percentage points
below the most recent high, attained this past
December and January.
671 STATEMENTS TO THE CONGRESS
Susan M. Phillips, Member, Board of Governors of the Federal Reserve System, discusses
the Economic Growth and Regulatory Paperwork Reduction Act of 1995 and says that the
Board supports the purpose of this proposed
legislation of relieving costs imposed on our
nation's banking system by governmental
regulation when those costs are not offset by
676 Edward W. Kelley, Jr., Member, Board of
Governors, presents information on the benefits and costs of substituting a $1 coin for the
$1 bank note now in circulation and says that
although there would be important budget
gains, the foremost consideration in any decision to replace $1 notes with coins should be
the convenience and needs of the public and
that preparing for issuance of such coins will
be complex and time consuming, before the
Subcommittee on Domestic and International
Monetary Policy of the House Committee on
Banking and Financial Services, May 3, 1995.
679 Governor Phillips testifies on the Economic
Growth and Regulatory Paperwork Reduction
Act of 1995 and says that although the Board
supports the majority of the provisions of the
proposed legislation, it believes that there are
two provisions of the bill that cause concern:
relaxing the standards for foreign banks operating in the United States to the extent proposed and transferring authority for administering the Real Estate Settlement Procedures
Act to the Board, before the Subcommittee on
Financial Institutions and Consumer Credit of
the House Committee on Banking and Financial Services, May 18, 1995.
684
ANNOUNCEMENTS
Requests for nominations for appointments to
the Consumer Advisory Council and meeting
of the council.
Issuance of joint framework for supervisory
information about derivatives activities of
banks and securities firms.
Final revisions to the official staff commentary
for Regulation B.
Availability of a brochure on the terms of
credit card plans.
Erratum regarding a table in a Bulletin article.
686 MINUTES OF THE FEDERAL OPEN
MARKET COMMITTEE MEETING HELD
ON MARCH 28, 1995
At its meeting on March 28, 1995, the Committee adopted a directive that called for maintaining the existing degree of pressure on
reserve positions but that included a bias
toward the possible firming of reserve conditions during the intermeeting period.
697 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
AI FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
May 29, 1995.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A45 Domestic Nonfinancial Statistics
A53 International Statistics
A67 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A68 INDEX TO STATISTICAL TABLES
A70 BOARD OF GOVERNORS AND STAFF
A72 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A74 FEDERAL RESERVE BOARD
PUBUCATIONS
A76 MAPS OF THE FEDERAL RESERVE
SYSTEM
A78 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
Financial Services Used by Small Businesses:
Evidence from the 1993 National Survey
of Small Business Finances
Rebel A. Cole and John D. Wolken, of the Board's
Division of Research and Statistics, prepared this
article. Michael Abramowicz, Peter Sorock, and
Ronnie McWilliams provided research assistance.
Using data newly available from the 1993 National
Survey of Small Business Finances, this article
offers preliminary findings regarding the characteristics of the U.S. population of small businesses—
firms with fewer than 500 employees—and their
use of credit and other financial services. Small
businesses account for the vast majority of enterprises in the United States and for a substantial
share of total business output, but information
about the small business sector is sparse.
The 1993 survey collected data through interviews conducted in 1994 and early 1995 with about
5,300 firms that were selected to provide a representative sample of all small businesses in the
United States. The main purposes of the survey
were to provide information on the use of credit by
small and minority-owned firms and to create a
general-purpose database on the finances of such
firms. Although the 1993 data are still in the editing
stage, and hence subject to revision, the broad
findings presented in this article are likely to be
robust. After completion of the data editing and
other processing steps, the Federal Reserve Bulletin will announce the availability of a data tape and
user's manual through the National Technical
Information Service. 1
1. The 1993 survey was cosponsored by the Federal Reserve
Board and the U.S. Small Business Administration. A similar
survey, conducted for 1987, focused on the definition of banking
markets (see Gregory E. Elliehausen and John D. Wolken, "Banking Markets and the Use of Financial Services by Small and
Medium-Sized Businesses," Federal
Reserve
Bulletin,
BACKGROUND
Historically, commercial banks have been the
major providers of credit and other financial services to small businesses. During the past two
decades, however, the market shares of banks for
many financial services, including credit to businesses, have eroded. Several explanations could
account for this development. First, many larger
firms have gone directly to credit markets.
vol. 76,
October 1990, pp. 801-17). For comparability of 1987 and 1993
results, see the appendix, note 17. Other sources of information
about small businesses include data from the Internal Revenue
In broad overview, the 1993 data show that more
than two-thirds of small businesses in the United
States are indeed very small (fewer than five
employees) and that more than one-half operate in
the retail trade, business services, or professional
services industries. Overall, 12 percent of small
businesses in the United States are Hispanic-owned
or nonwhite-owned and 22 percent are femaleowned. Firm size is a dominant factor in determining the types and sources of financial services that
small businesses use. Nonetheless, almost all small
businesses reported using a checking account
through a commercial bank; and more than onehalf of small businesses reported having some
credit outstanding, most commonly in the form of a
line of credit at a commercial bank.
This article is limited to detailing these descriptive findings. The complete range of data gathered
by the survey (see the appendix) is useful for
studying various issues in finance, including the
determinants of the capital structure of small businesses, the importance of financial relationships,
and the differences between small businesses and
larger firms.
Service's tax files and from surveys conducted by the Bureau of the
Census (see U.S. Small Business Administration, Handbook of
Small Business Data, 1994 ed., Government Printing Office).
630
Federal Reserve Bulletin • July 1995
Second, the Depository Institutions Deregulation
and Monetary Control Act of 1980, the GarnSt Germain Depository Institutions Act of 1982,
and other regulatory changes in the 1980s
expanded the number and types of financial institutions providing business credit.
Third, many manufacturers have used their
finance and leasing company subsidiaries to provide credit and other services associated with some
of the assets they produce. Even so, the Federal
Reserve's 1987 National Survey of Small Business
Finances found that commercial banks were one of
the most frequently used sources for almost all
financial services to small businesses, particularly
for checking accounts and most types of credit.
Since the 1989 release of information from that
survey, there has been little new information useful
for assessing the financial marketplace in which
small businesses operate. Nevertheless, that marketplace has continued to change substantially.
For example, the value of commercial real estate
plummeted during the early 1990s, damaging an
important source of equity and collateral for many
small businesses. At the same time, record numbers
of both commercial banks and savings and loan
associations failed as a result of asset-quality problems. In response to those failures, regulatory
changes mandated by the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989
and the Federal Deposit Insurance Corporation
Improvement Act of 1991 have been implemented,
and supervisory and examination policies have
undergone important changes designed to return
federally insured depository institutions to safe and
sound conditions.
Other regulatory changes implemented since
1987 include revisions to the regulations that
implement the Community Reinvestment Act of
1977.2 The revisions require larger depository insti-
tutions to disclose information about their small
business lending and thereby sharpen the focus on
such lending in the assessment of the performance
of lenders covered by the act. Taken together, the
regulatory changes since 1987 may have had divergent effects on the availability of financial services
to small businesses.
During these changes in the lending industry and
in the regulatory environment, macroeconomic
conditions fluctuated. In 1987, the economy was
well into the 1982-90 expansion, whereas in 1993
the economy was in the early stages of expansion
following the 1990-91 recession. That recession
was associated with a sharp contraction in business
loans at commercial banks. Anecdotal evidence
suggests that small businesses often encountered
exceptional difficulty in obtaining credit during this
period. Some small businesses sought alternative,
nontraditional sources of credit. Many other firms,
faced with declining sales and heavy debt burdens,
sought to reduce outstanding debt.
By 1993 the growth of depository credit had
begun to strengthen, especially at larger banks. The
prime interest rate—a key indicator of the cost of
funds to businesses—declined from a high of
11.5 percent in February 1989 to 6.0 percent at
year-end 1993. The banks and savings associations
that survived the shake-out of depository institutions recovered their financial health as record
profits during 1993 and 1994 enabled them to write
off nonperforming assets. With healthy balance
sheets, these institutions began to ease their lending
standards and make credit available on more favorable terms than had been available during 1989-92.
Together with lower interest rates, these eased standards likely expanded the availability of financial
services to small businesses.
CHARACTERISTICS
2. The act was intended to encourage depository institutions to
meet the credit needs of households and small businesses in the
local communities where the institutions are chartered. Revised
regulations, adopted in April 1995, require independent banks and
savings institutions to report the number and dollar amount of their
small business loans by census tract if the institutions have more
than $250 million in assets or are affiliated with holding companies
with more than $1 billion in assets. For a description of the act and
its evolution during the 1980s and 1990s, see Griffith L. Garwood
and Dolores S. Smith, "The Community Reinvestment Act:
Evolution and Current Issues," Federal Reserve Bulletin, vol. 79
OF SMALL
BUSINESSES
The 1993 National Survey of Small Business
Finances (NSSBF) collected information on the
availability and use of credit by small and minority-
(April 1993), pp. 251-67; and Glenn B. Canner and Wayne
Passmore, "Home Purchase Lending in Low-Income Neighborhoods and to Low-Income Borrowers," Federal Reserve Bulletin,
vol. 81 (February 1995), pp. 71-103.
Financial Services Used by Small Businesses
owned businesses. It provides detailed information
on the types and sources of financial services used
by small businesses, with emphasis on the use of
credit. The survey also provides information on
each firm's employment, assets, liabilities, equity,
income and expenses; on firm characteristics,
including location, organizational form, and age;
and on demographic characteristics of each firm's
primary owner, including age, education, experience, ethnicity, sex, and race.3
General characteristics of the small business
population as covered by the survey are measured
by firm size and age, organizational form, standard
industrial classification, location and number of
offices, management, export sales, and the race,
ethnicity, and sex of the firm's majority owners
(table 1).
Business size is measured in three ways: the
average number of full-time-equivalent employees
for 1993, sales for 1993, and year-end 1993 assets.4
The employment size of most firms in the population of small businesses is near the bottom of the
0-499 range. Nearly 70 percent of firms had fewer
than five full-time-equivalent employees, about
40 percent had fewer than two, and only 3 percent
had more than fifty.
Size in terms of sales and assets reveals a similar
skewness; in sales, for example, more than half of
the firms had less than $250,000, whereas fewer
than one in twenty had at least $5 million.
A business can be organized as a corporation
(C-type or S-type), a proprietorship, or a partnership.5 Small businesses were most commonly
3. The statistics in this article are weighted to adjust for disproportionate rates of sampling and response. These statistics represent
estimates of population characteristics rather than sample values.
Sample data have been analyzed to identify and correct for errors
and outliers and, except for asset and sales data, to impute missing
values. See the appendix for details on the methods used in the
survey.
4. Full-time-equivalent employment was calculated as the sum
of the number of full-time employees and one-half the number of
part-time employees. Sales were reported for calendar or fiscal
1993; a sales figure for less than a full year was converted to an
annual figure. Assets were as of year-end calendar or fiscal 1993.
The preliminary data on sales and assets reported here are based
upon the approximately 85 percent of sample firms that reported
such data.
5. From a legal and financial viewpoint, a sole proprietor and his
or her company are one. The income of the company flows directly
to the proprietor, and the proprietor is responsible for all liabilities
of the company.
631
organized as sole proprietorships, which accounted
for more than 40 percent of firms; about 30 percent
were organized as C corporations, 20 percent as
S corporations, and the remainder as partnerships.
Firms were classified by industry with the U.S.
government's standard industrial classification
(SIC) system. The majority of firms (60 percent)
were distributed among the business services, retail
trade, and professional services industries. Only
about one in ten firms were in the primary manufacturing, other manufacturing, or transportation
industries.
Firms less than five years old (that is, whose
current ownership had been in place less than five
years) accounted for about 15 percent of the population, as did firms twenty-five years old or older.
More than 25 percent of firms were between five
and ten years old, and the average age (not shown
in tables) was 14.5 years.
About eight in ten small businesses were located
in urban areas, with similar proportions having a
single office and an owner-manager. Fewer than
one in ten small businesses reported export sales.
Race, Ethnicity, and Sex of Majority
Owners
A firm was classified as being owned by individuals of a specific race, ethnic group, or sex if more
than 50 percent of the ownership shares at the end
A partnership is a legal relationship between two or more persons for the purpose of conducting business as joint principals.
Income goes directly to the partners and is taxed only at the
personal level. Like a sole proprietor, partners are responsible for
the firm's liabilities.
In contrast to a proprietorship and a partnership, a corporation is
a legal entity separate from its owners, and as such, the liability of
an owner is limited to his or her equity investment.
Two primary types of corporation exist: C and S. The income of
a C corporation is subject to the corporate tax, whereas income
from an S corporation is not. However, ownership of an S corporation carries several restrictions—such as those on the number of
shareholders and on the number of different classes of stock—that
do not apply to C corporations. Hence, the S form of corporation is
designed primarily for small businesses.
In recent years, the limited liability company (LLC), a new
organizational form, has gained legal status in many states. LLCs
are similar to partnerships except that the liability of partners is
limited to their equity investment. At the time this survey was
conducted, however, published reports indicated that fewer than
10,000 LLCs were in existence. Any such firms participating in the
survey were classified as partnerships.
632
Federal Reserve Bulletin • July 1995
of 1993 belonged to such individuals.6 Less than
12 percent of small businesses were minority6. Fewer than ten firms reported ownership that was exactly
equally split between Hispanic and non-Hispanic individuals or
between white and nonwhite individuals. In those cases, following
government convention, the firms were classified as non-Hispanicowned or as white-owned respectively.
1.
N u m b e r and population proportion o f small businesses
in s u r v e y s a m p l e , d i s t r i b u t e d b y s e l e c t e d c a t e g o r y o f
firm,
1993
Category
Unweighted
number
in sample
Weighted
percentage
of population
5,276
Number of full-timeequivalent employees
0-1
2-4,
5-9
10-10
20-49
50-99
100-499
1,496
1,137
718
436
531
482
476
38.78
29.15
16.10
7.86
5.07
1.75
1.30
Sales (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
. . . . . . . . . « * sit* *
5,000-9,999
10,000 or more
432
293
431
800
541
479
541
369
319
464
12.82
8.44
11.88
24.10
15.01
11.49
8.91
3.63
1.85
1.87
Assets {thousands of dott&fs}
Less than 25
25-49
50-99
100-249
250-499
, .
. . ....
500-999
1,000-2,499
2,500-4,999
5,000 or more
997
366
449
604
407
320
394
233
346
32.11
12.48
14.39
17.29
10.51
5.87
4.13
1.43
1.81
1,747
389
1,222
1,918
43.99
8.29
19.60
28.12
617
304
350
210
487
1 142
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Insurance agents and real estate
(60-69)
Business services (70-79)
Professional services (80-89)
Years under current ownership
0-4
5-9
15-19
20-24
25 or more
1.—Continued
100
All firms
Organizational form
Proprietorship
Partnership
S corporation
Ccorporation . , . . , . . . . i ; . — . . . .
owned, a category that consists of Hispanic-owned
and nonwhite-owned firms. About 4 percent were
Hispanic-owned and 8 percent nonwhite-owned.
By race, about 3 percent were black-owned,
3Vi percent were Asian-owned, and about 1 percent were owned by American Indians or native
Alaskans. By sex, 22 percent of small businesses
were majority-owned by females, 72 percent by
males, and the remaining 6 percent by males and
females equally.
Female-owned and minority-owned firms have
some characteristics in common that distinguish
Unweighted
number
in sample
Weighted
percentage
of population
New England
Middle Atlantic
1,020
309
711
22.58
6.99
15.59
Midwest
East North Central
West North Central
1,291
871
420
24.14
16.04
8.11
South Atlantic
East South Central
West South Central
1,749
864
293
592
29.30
14.68
4.39
10.22
1,216
293
923
23.98
5.89
18.09
4,233 m
1,043
78.95
21.05
3,928
649
699
84.75
10.21
5.03
626
4,650
7.41
92.59
Owners' participation
Owner management
Hired management
4,251
1,025
85.25
14.75
13.76
3.81
4.09
2.78
8.07
22 06
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic
Non-Hispanic white
1,231
4,045
11.90
88.10
366
1,038
762
7.19
21.82
16.41
Asian or Pacific Islander
American Indian or Native Alaskan . . .
4,371
523
336
45
777
1,353
995
729
522
900
15.30
27.28
1901
14.49
8.99
14.95
Hispanic
Non-Hispanic
369
4,907
4.38
95.62
Ownership equally divided by sex . . . .
1,009
3.995
272
22.07
72.29
5.63
j
Category
Census region of main office
West
Mountain
Pacific
Urbanization at main office
Number of offices
One
Three or more
Export sales
Some
White
NOTE. See the appendix for weighting procedure.
'
92.03
3.23
3.52
1.22
Financial Services Used by Small Businesses
these two groups from the general population of
small businesses (table A.l). Both female-owned
and minority-owned firms were somewhat smaller
and younger than other firms and were more concentrated in the business services industry. Femaleowned businesses were also more concentrated
in the retail trade industry. Female-owned and
minority-owned businesses were less likely to be in
the construction and mining, primary manufacturing, other manufacturing, and insurance and real
estate industries.
Female-owned firms had minority owners more
often than did male-owned firms, and minorityowned businesses had female owners more often
than did nonminority-owned firms.
One notable difference between female-owned
and minority-owned firms is that female-owned
firms (as well as the general small business population) are more likely to be organized as S corporations than are minority-owned firms. Another
difference is the higher concentration of minorityowned businesses in urban areas.
Throughout this article, reported differences
among businesses must be viewed with caution
because standard errors have not been calculated;
without them, the statistical significance of differences cannot be determined. 7
TYPES OF FINANCIAL SERVICES
USED BY SMALL BUSINESSES
Use of a financial service is measured by the percentage of small businesses using a specific type or
source of service. Other measures of use can be
constructed from dollar amounts or the number of
accounts. Dollar measures will be available and
analyzed at a later date, but significant differences
between results based on dollar amounts and
results based on the percentage of firms are not
expected; the 1987 NSSBF data yielded similar
conclusions when based upon either measure.
The types of financial services used by small
businesses can be grouped into the following broad
7. The complexity involved in calculating standard errors for a
stratified random sample prevented such calculations at this preliminary stage of data processing. Consequently, comparisons of
group means are not subjected to standard tests for statistical
significance.
633
categories: (1) liquid asset services, which are
checking accounts and savings-type accounts,
(2) credit lines, loans, and capital leases, which are
lines of credit, mortgages, motor vehicle loans,
equipment loans, capital leases, and miscellaneous
loans, and (3) financial management
services,
which are transaction services, cash management
services, credit-related services, brokerage services,
and trust and pension services.8 A fourth service
category included in the survey is nontraditional
credit, which covers shareholder and partner loans,
credit card loans, and trade credit provided by
suppliers. The data on the use of nontraditional
credit in 1993 are excluded from the tallies on
the 1993 use of "any service," and no information
was collected on the individual sources of such
credit.
Overall, 96 percent of firms reported using
at least one financial service during 1993
(table A.2.A). In general, the use of financial services increased with firm size. Almost all firms
with ten or more employees or with $100,000 or
more in annual sales or assets used at least one
financial service; at the other end of the spectrum,
8 percent of firms with fewer than two employees,
10 percent of firms with less than $25,000 in assets,
and 18 percent of firms with less than $25,000 in
sales used no financial services in 1993.
Proprietorships were more likely to have reported using no financial services than were partnerships, S corporations, and C corporations. This
seeming disparity may be attributable to the fact
that many proprietors commingle their business
and personal finances. For example, they may use
personal checking and savings accounts for business purposes. Interestingly, the oldest firms—
those in business under current ownership for
twenty-five or more years—were more likely to
have reported using no financial services than were
firms five to nine years old.
8. Transaction services cover the provision of paper money and
coins, the processing of credit card receipts, the collection of night
deposits, and wire transfers. Cash management services encompass
the provision of sweep accounts, zero-balance accounts, lockbox
services, and other services designed to automatically invest liquid
funds in liquid, interest-bearing assets. Credit-related services are
the provision of bankers acceptances, letters of credit, and factoring. Trust and pension services consist of the provision of 401(k)
plans, pension funds, business trusts, and securities safekeeping.
634
Federal Reserve Bulletin • July 1995
Liquid Asset
Services
Small businesses almost universally reported the
use of checking accounts (a liquid asset service),
which are vehicles for paying suppliers and depositing sales receipts. Predictably, therefore, the
reported use of liquid asset services (95 percent)
nearly matches the reported use of all financial
services (table A.2.A).
The use of savings accounts, however, reveals
some interesting differences across firm characteristics. Respondents were asked to include use of
any business savings account, money market
account (if checking was limited), credit union
share account, and certificate of deposit or other
time deposit when considering their use of savings
accounts. By any of the three size measures,
roughly 15 percent of the smallest firms used savings accounts, whereas around half of the largest
firms reported such use. Proprietorships reported
using savings accounts at about half the frequency
of all other firms. By industry, professional services firms and insurance and real estate firms
reported the highest incidence of savings account
use, and retail trade firms and business services
firms reported the lowest incidence. By race, whiteowned firms were more likely to have reported
using savings accounts than were black-owned and
Asian-owned firms.
Traditional Credit:
Credit Lines, Loans, and Capital
Leases
More than half of all firms reported outstanding
credit in the form of a credit line, a loan, or a
capital lease (table A.2.A). Lines of credit and
motor vehicle loans were the most frequently used,
with each reported by one in four firms.9
Surprisingly, only about one in twenty small
businesses reported using funds from a mortgage
for business purposes. Anecdotal evidence as well
as data from the 1987 NSSBF suggest that borrowing against hard assets such as real estate is an
important method of funding small businesses.
9. For purposes of this article, use of a credit line refers to the
availability of a credit line and not necessarily to the takedown of
credit. Survey information on outstanding credit-line balances will
be available at a later date.
Two explanations may account for the contrary
evidence reported here.
First, the toppling of commercial real estate values during the late 1980s and early 1990s in many
cases erased any equity against which firms could
borrow; future comparisons of results from the
1987 and 1993 NSSBFs may shed light on the
importance of this explanation.
Second, firms may have pledged real estate as
collateral against other types of loans. The survey
collected information on the collateral associated
with lines of credit and miscellaneous loans, and
further analysis of that information may clarify the
importance of this explanation.
As with liquid asset services, the use of credit
lines, loans, and capital leases increased with
firm size. Around 90 percent of the largest firms
reported using one of these types of credit, but less
than half of the smallest firms reported such use.
Both S and C corporations were more likely than
partnerships or proprietorships to report credit
lines, loans, or capital leases. By industry, transportation firms and manufacturing firms were
most likely to report credit lines, loans, or capital
leases—a consequence of the asset-intensive nature
of these industries. Business services firms were
least likely to report credit lines, loans, or capital
leases, probably because such firms require less
inventory and equipment than do those in other
industries.
The youngest firms (those under current ownership fewer than five years) reported nearly the
same incidence of borrowing as did more mature
firms (about 60 percent), even though depository
institutions typically require several years of financial history for a borrower to qualify for credit. For
firms older than nine, however, the use of credit
lines, loans, and capital leases declines with the
rise in age. Firms under current ownership for
twenty-five or more years reported the lowest incidence of borrowing.
The use of credit lines, loans, and capital leases
differed somewhat by the sex, race, and ethnicity
of firm owners. About 55 percent of male-owned
firms reported using such credit services, compared
with about 50 percent of female-owned firms; and
less than 40 percent of black-owned firms reported
such use, compared with about 45-55 percent of
firms owned by other minority groups and 55 percent of white-owned firms.
Financial Services Used by Small Businesses
Some of the differences by race, ethnicity, and
sex may be attributable to differences in other firm
characteristics, such as size. For example, the incidence of credit lines, loans, or capital leases at the
smallest firms is similar to that reported by blackowned firms. Only 42 percent of firms with fewer
than two employees used a credit line, a loan, or a
capital lease, including 16 percent that used a line
of credit. Attribution of these univariate differences
to size, race, age, or a combination of these and
other factors is a topic for future research.
Financial Management
Services
Use of at least one financial management service
(see note 8) was reported by one-third of small
businesses (table A.2.B). Use of transaction services was reported by almost one-fourth of all
firms, whereas brokerage services were used by
fewer than one in twenty. Cash management and
credit-related services were used by slightly more
firms than were brokerage services; trust and pension services were used by one in ten.
The use of financial management services
increased with firm size, rising from 24 percent of
firms with fewer than two employees to 76 percent
of firms with 100 to 499 employees. Cash management services are about as important as trust and
pension services for the largest firms but less so for
smaller firms.
Proprietorships used financial management services much less than did firms with other organizational forms. Proprietorships have less of a need for
business-only financial services for two reasons:
They are smaller than other types of firms, and they
are more likely to commingle personal and business accounts because there is no legal distinction
between the owner and the firm.
As firms age, their use of transaction services
appears to decline, while their use of brokerage and
trust and pension services appears to rise. Interestingly, firms with fewer than five years under current ownership and those with more than twentyfive years reported the identical incidence of use
for financial management services.
By industry, retail trade and professional services firms reported the most prevalent use of
financial management services. For retail trade, the
high incidence was concentrated in transaction ser-
635
vices; for the professional services firms, in trust
and pension services. The lowest use of financial
management services was among construction
firms.
Small businesses differ in their use of financial
management services by the minority status, but
not by the sex, of the majority owners. Hispanicowned and nonwhite-owned firms made less use
of such services than did white-owned or nonHispanic-owned firms; and these services were
used more often by black-owned firms than by
Hispanic-owned firms. The disparities largely
reflect differences in the use of trust and pension
services and transaction services.
Nontraditional Credit: Trade Credit, Credit
Card Loans, and Loans from Owners
Besides their use of traditional types of credit such
as credit lines, loans, and capital leases, small
businesses often obtain nontraditional forms of
credit from suppliers of goods and services (trade
credit); from use of the firm's or the owners' credit
cards; or, in the cases of partnerships, S corporations, or C corporations, by borrowing from the
firm's owners.
Each of these nontraditional forms of credit has
characteristics that make it somewhat different
from traditional credit lines, loans, and leases.
Trade credit and credit cards, for example, are
generally used in conjunction with the purchase of
goods, and many users view them simply as convenient methods for paying bills and, in the case of
credit cards, for tracking expenses. Loans from
partners or shareholders are not arm's-length transactions, as some portion of the borrowing firm is
owned by the lender.
Trade Credit
Trade credit was used by 61 percent of small
businesses in 1993—a rate that exceeded the use
of all other financial services except checking
(table A.2.B). As with most financial services, the
reported use of trade credit increased with the size
of the firm. Also, minority firms were less likely to
use trade credit than were nonminority firms, but
among minority firms there was little difference in
use by race or ethnicity. Female-owned firms were
636
Federal Reserve Bulletin • July 1995
only slightly less likely to use trade credit than
male-owned firms.
Trade credit was most important for firms in
manufacturing, wholesale trade, and retail trade—
industries in which nonlabor costs, such as those
for equipment and inventory, are large relative to
labor costs. Trade credit was less important in
insurance and real estate, business services, and
professional services, where labor accounts for the
largest component of costs.
The age of the firm does not appear to be a key
factor in the use of credit cards, except among very
young and very old companies. For example, firms
under current ownership for at least twenty-five
years were less likely to use personal credit cards
than were younger firms, and firms under current
ownership fewer than five years were less likely to
use business credit cards than were older firms.
Loans from Owners
Credit Cards
Anecdotal evidence suggests that many small businesses use credit card balances as a form of financing. In particular, firms with little experience or
credit history—typically firms just starting out and
smaller firms—are thought to use credit card loans
as substitutes for traditional bank loans. Indeed,
some banks have actively promoted the use of
business credit cards as a cost-effective method of
delivering credit lines to small businesses. Other
banks encourage the owners of small businesses to
use their personal credit cards as a source of business credit. 10
The 1993 survey, part of which focused on the
use of credit cards, reveals that four in ten small
businesses used personal credit cards for business
purposes, and three in ten used business credit
cards (table A.2.B). As expected, smaller firms
were more likely to use personal credit cards for
business purposes, but larger firms were more
likely to use business credit cards.11
Proprietorships and S corporations were more
likely than partnerships and C corporations to use
personal credit cards, whereas both C and S corporations were more likely than partnerships and
proprietorships to use business credit cards. These
findings are likely related both to size and to the
limited liability of corporations.
10. Banks record personal credit card loans as consumer, rather
than commercial, loans. Typically, consumer loans are less expensive to underwrite than are commercial loans. Moreover, credit card
balances usually carry much higher interest rates than do commercial loans of comparable size.
11. Many issuers of business charge cards do not provide revolving credit; they require full payment of outstanding balances each
month. Firms may use such cards for tracking miscellaneous
expenses or for the credit that lasts for the duration of the billing
cycle.
Loans from owners (shareholders or partners)
were reported by 17 percent of small businesses
(table A.2.B). 12 By definition, the 44 percent of
small businesses organized as proprietorships cannot have owner loans because, in their cases, business and owner are one. Among the remaining
firms (partnerships, S corporations, and C corporations) 30 percent reported shareholder or partner
loans (not shown in the table).
Because they generally have fewer credit
options, smaller firms would seem more likely to
borrow from owners than would larger firms; but in
fact, the incidence of owner loans increased with
firm size. About 10 percent or less of the smallest
firms reported owner loans, whereas more than
25 percent of the larger firms did so. Anecdotal
evidence from depository lenders suggests, however, that smaller and younger firms are more likely
than other firms to lack sufficient equity to qualify
for bank loans; consequently, the owners of such
firms would be more likely to provide equity than
loans. A complementary explanation is that larger
firms typically are less likely to fail, so that the
riskiness of an owner loan decreases with firm size.
The information gathered by the survey regarding
size, capitalization, equity injections, and owner
loans will enable researchers to analyze this topic
in the future.
SUPPLIERS OF FINANCIAL SERVICES
USED BY SMALL BUSINESSES
The survey obtained information on both financial
and nonfinancial sources of financial services used
12. Loans from shareholders or partners exclude firm credit
obtained with the owners' personal credit cards.
Financial Services Used by Small Businesses
by small businesses. Financial sources consist of
depository institutions (commercial banks, savings
associations and savings banks, and credit unions)
and nondepository sources (finance, leasing, mortgage, insurance, and other nondepository financial companies). Among nonfinancial sources are
families and individuals, other businesses, and
government.13
Depository
Financial
Institutions
About 95 percent of small businesses used depository sources (table A.3.A)—the same percentage
that used liquid asset accounts (table AAA). 1 4
Among depository institutions, commercial banks
were used far more frequently than savings institutions or credit unions. In general, as firm size
increased, the use of commercial banks increased
and the use of savings institutions and credit unions
decreased. Proprietorships, generally the smallest
type of firm, were less likely than other firms to
use commercial banks but were twice as likely as
others to use credit unions.
Small businesses in the Northeast were twice as
likely to use savings institutions as were firms in
the other Census regions, a finding most likely
attributable to the relatively large number of savings banks in New England.
The use of depository institutions shows few
differences when measured by the race, ethnicity,
or sex of the firms' majority owners, with a few
notable exceptions. Firms owned by blacks and by
American Indians or native Alaskans were much
more likely than other firms to use credit unions;
and firms owned by American Indians or native
Alaskans were much less likely than other firms to
use savings institutions.
Nondepository
Financial
Sources
Nondepository financial sources were used by
29 percent of firms (table A.3.B). Among these
13. The survey did not collect information on the individual
sources of nontraditional credit.
14. Because the near ubiquity of checking accounts obscures the
use of other financial services at depository institutions, additional
appendix tables present data similar to those in table A.3, but for
firms using liquid asset (checking and savings) services (table A.4);
credit lines, loans, and capital leases (table A.5); and financial
management services (table A.6).
637
sources, small businesses used finance companies
most frequently, followed by brokerage firms and
leasing companies.
The use of nondepository financial sources bears
a strong direct relation to firm size. In addition,
proprietorships and partnerships used nondepository financial services with much less frequency
than did S and C corporations.
Use of nondepository financial sources varies
considerably by industrial classification. Transportation firms were the most frequent users, and their
use of one such source—finance companies—was
double the population average. It seems likely that
these firms were financing motor vehicle loans
using the captive finance companies of manufacturers. The high frequency with which transportation
firms reported motor vehicle loans (table A.2.A) is
consistent with this hypothesis. Business services
firms were the least frequent users of nondepository financial sources, and these firms also were
generally the least frequent users of any financial
service.
The use of nondepository financial sources differed by race, ethnicity, and sex. The greatest disparities were in the use of brokerage firms, which,
as we will see in table 2, small businesses used
primarily to obtain brokerage services, trust and
pension services, and liquid asset services. Ten
percent of white-owned firms used brokerage firms;
3 percent of both black-owned and Hispanic-owned
firms and 7 percent of female-owned firms did so.
These differences by race of majority owners in the
use of brokerage firms are, however, similar to the
differences by firm size.
Nonfinancial
Sources
Nonfinancial sources were used by 15 percent of
small businesses, with family and individuals and
other business firms being the primary providers
(table A.3.C). Only 1 percent of small businesses
reported using government sources.15
The use of nonfinancial sources—and among
them, family and individuals—declined as the age
15. This figure understates the true role of government entities
in providing credit to small businesses. Many, such as the Small
Business Administration, provide credit guarantees, which assure
repayment of small business loans made by traditional lenders such
as commercial banks and thrift institutions.
638
Federal Reserve Bulletin • July 1995
of the firm rose. Newer firms generally have difficulty obtaining funds from financial sources, in
part because these sources often require several
years of financial statements. Nonfinancial sources,
especially family and individuals familiar with
prospective borrowers, are better positioned to
evaluate creditworthiness and monitor the financial
condition of newer firms.
USE OF FINANCIAL SERVICES
BY SERVICE
SUPPLIERS,
The data reviewed so far separately cover the financial services used by small businesses and the
suppliers of such services, but the extent to which
particular suppliers are used for particular services
is also of interest.
Sources of Asset
of small businesses (table 2); no other source provided checking to even 10 percent of firms. Commercial banks also were the dominant source for
savings services, far outpacing brokerage firms and
savings institutions.
Sources of Traditional
Credit
Commercial banks were the primary source of traditional credit. 16 Other important sources of such
credit were finance companies, family and individuals, leasing companies, and other businesses.
Commercial banks were the most frequent source
for credit lines, mortgages, motor vehicle loans,
and equipment loans. Family and individuals,
however, were the leading source of miscellaneous
loans; and leasing companies, not surprisingly,
were the leading source of capital leases.
Services
Commercial banks dominated the provision of liquid asset services, providing checking to 86 percent
16. The survey did not collect information on the individual
sources of credit cards and trade credit.
Percentage of small businesses that use selected suppliers of financial services, by selected service, 1993
A. Any supplier and financial institutions
Savings
Credit lines, loans
and capital
leases
Line of credit . . . .
Equipment ..
Capital lease
Financial
management
Transaction . . .
Cash
Credit-related .
Brokerage —
Trust and
For notes, see end of table.
Financial Services Used by Small Businesses
Many of the demographic differences in the
use of credit lines, loans, and capital leases discussed above also are evident in the use of the
suppliers of these credit services. For example, the
use of commercial banks for credit lines, loans,
or capital leases is highly correlated with firm
size (table A.5.A). Roughly one-fourth of the
smallest firms, but three-fourths of the largest
firms, used commercial banks for these credit
services.
The use of commercial bank credit differs a great
deal by race and less so by ethnicity and sex
(table A.5.A): About 38 percent of male-owned
and of white-owned firms reported using such
credit, compared with about 33 percent of
Hispanic-owned and of female-owned firms,
24 percent of Asian-owned firms, and 18 percent of
black-owned firms. Black-, Hispanic-, and femaleowned firms were more likely than other firms to
report loans or leases from credit unions.
Sources of Financial
Management
Services
Commercial banks were the dominant source of
financial management services, serving an esti2.
Percentage of small businesses that use selected suppliers of financial services, by selected service, 1993—
Continued
B. Nonfinancial suppliers
NOTE. * Number of respondents was less than fifteen, too small to calculate a reliable statistic.
639
mated 26 percent of small businesses (table 2).
Brokerage firms, the second most frequently used
source of financial management, were used by
7 percent of small businesses. Brokerage firms
were the leading providers of both brokerage and
trust and pension services, while commercial banks
were the leading providers of transaction, cash
management, and credit-related services.
SUMMARY
The 1993 NSSBF provides detailed information on
the characteristics of small businesses and on the
types and sources of credit and other financial
services used by these firms. The preliminary statistics summarized in this article suggest interesting
behavior patterns and differences in the use of
credit by small businesses.
Explaining these differences and, more fundamentally, understanding the factors that affect small
business financing, require a rigorous analytical
framework that takes account of the financial characteristics of borrowers and the markets in which
they operate. Such analysis is beyond the scope of
this article, but the complete NSSBF data will
support formal study of the search for credit by
small businesses as well as of the terms granted to
those receiving credit. In combination with information from the 1987 NSSBF, these data can provide evidence on how the changing financial landscape has affected the types and sources of credit
used by small businesses.
640
Federal Reserve Bulletin • July 1995
APPENDIX:
SURVEY
METHODS
The 1993 National Survey of Small Business
Finances covers a nationally representative sample
of small businesses in the United States. Conducted
during 1994-95 for the Board of Governors of the
Federal Reserve System and the U.S. Small Business Administration, the survey drew its sample
from the population of all for-profit, nonfinancial,
nonfarm business enterprises that were listed in
Dun's Market Identifier file and that were in
operation as of year-end 1992 with fewer than
500 employees. 17 More than 14,000 firms were
contacted, of which about 10,200 met the definition
of small business as used in this study. The number
of respondents used in this analysis is 5,276, for a
response rate of about 52 percent.
The sample was a stratified random design with
oversampling to ensure the ability to estimate separately the reporting domains of five employmentsize groups, nine Census regions, urban or rural
location, and three minority categories regarding
ownership. Because the larger and minority-owned
firms are only small percentages of the population
of small businesses but are of special interest to
researchers, the survey oversampled larger firms
(50 to 499 employees), as well as black-owned,
Asian-owned, and Hispanic-owned firms to ensure
sufficient numbers for individual analyses of these
groups. The results in this article were weighted to
adjust for disproportionate rates of sampling and
response and to permit inferences about the population of small firms.
Businesses were contacted in advance of the
survey to determine eligibility, verify addresses,
and identify a contact person. Each business meet-
17. Dun's Marketing Service, Dun and Bradstreet, Inc. The
DMI list, containing nearly 10 million businesses, is broadly representative of all businesses but does not include many of the newest
start-up firms or the self-employed individuals filing business tax
returns. In contrast, the Internal Revenue Service reports that for
1991 about 20 million individuals filed business tax returns, including about 13 million sole proprietorships, of which about 3 million
reported less than $2,500 in annual receipts.
Both the 1987 and 1993 surveys obtained lists of businesses
from Dun and Bradstreet, Inc., which expanded its coverage of
small, retail, and business services firms in the years between the
two surveys; hence, the 1993 survey is more broadly representative
of such firms, and valid comparisons between the 1987 and 1993
surveys can be made only after accounting for these differences in
coverage.
ing eligibility criteria then received an advance
worksheet to encourage the use of written records
in responding to the subsequent computer-assisted
telephone interviews, which were conducted by
Price Waterhouse. The average duration of the
telephone interviews was fifty minutes.
The survey collected the following types of
information from each business:
• An inventory of the firm's deposit and savings
accounts, financial leases, credit lines, mortgages,
motor vehicle loans, equipment loans, other loans,
and selected other financial products for each financial service supplier used by that business
• The business reasons for choosing each of its
financial institutions, the locations of the offices of
the financial institutions it uses for financial services, the most frequent method of conducting
business with each institution (in person, by telephone, or by mail), and the number of years the
firm has done business with each institution
• Experience in the past three years in applying
for credit
• Data from each firm's income statement and
balance sheet, demographic information on the
owners, and other characteristics of the firm such
as the industry to which it belongs and its age
• Information on the recent credit history of the
firm and its owners.
Financial Services Used by Small Businesses
Appendix tables begin on following page.
641
642
A.l.
Federal Reserve Bulletin • July 1995
Characteristics of small businesses, distributed by selected category of firm, 1993
Majority owners
SSI
All
firms
100
Non-
Non-
white
or Hispanic
Hispanic
white
Number of employees
100
100
Male
100
Female
100
0-1
100
2-4
100
5-19
100
20-49
50-499
100
100
38.78
29.15
16.10
7.86
5.07
1.75
1.30
40.24
30.90
17.42
5.59
3.69
1.10
1.07
38.58
28.91
15.92
8.17
5.25
1.84
1.33
37.22
29.33
16.15
8.12
5.84
1.99
1.36
44.27
28.51
15.94
6.95
2.33
.91
1.08
12.82
8.44
11.88
24.10
15.01
11.49
8.91
3.63
1.85
1.87
14.70
13.14
13.77
25.31
12.99
8.08
7.84
2.12
1.10
.93
12.58
7.81
11.63
23.93
15.27
11.94
9.06
3.83
1.95
2.00
10.89
7.70
11.85
23.75
15.36
12.22
9.97
4.00
2.08
2.18
20.21
11.24
11.98
25.42
13.66
8.72
4.89
2.20
.97
.70
26.84
17.12
18.25
20.73
8.01
4.57
2.68
.88
.35*
.55
6.78
5.45
13.42
41.45
19.52
7.70
3.89
.81*
.73*
.27*
1.71
.97*
3.53
15.38
24.41
27.45
17.79
5.58
2.16
1.01
1.35*
.00*
1.31*
4.30*
5.96
12.89
37.08
21.06
8.55
7.51
.00*
.08*
.08*
3.17*
2.10*
8.73
15.11
18.76
18.73
33.25
32.11
12.48
14.39
17.29
10.51
5.87
4.13
1.43
1.81
37.71
14.63
15.22
15.46
6.29
5.46
2.76
.98
1.49
31.39
12.20
14.28
17.52
11.05
5.92
4.30
1.48
1.85
29.73
12.06
14.20
17.57
11.20
6.92
4.48
1.72
2.13
41.33
14.10
15.13
16.19
7.83
1.80
2.78
.27
.57
54.11
12.12
11.80
10.21
6.29
2.66
1.33
.51
.96
27.36
17.30
21.59
20.46
8.49
2.20
1.81
.22*
.58*
10.96
10.04
13.88
27.01
18.17
12.49
5.22
.96*
1.27*
5.17
5.47*
3.78
14.53
20.29
17.18
21.83
7.47
4.27
3.32*
2.23*
1.65*
5.25
7.18
10.20
23.54
19.22
27.41
43.99
8.29
19.60
28.12
56.40
7.49
12.23
23.88
42.31
8.40
20.60
28.69
42.38
8.39
1983
29.40
49.65
7,94
18.81
23.60
66.31
7.26
12.38
14.06
45,35
9.96
20.88
23.81
19.23
7.87
26.49
46.40
6.22
7.89
28.97
57.01
4.71
10.23
29.35
55.71
13.76
10.85
14.16
15.69
6.97
13.99
13.82
14,12
12.64
8.01
3.81
2.40
4.00
3.89
3.55
2.87
3.41
4.68
7.39
7.07
4.09
2.78
8.07
22.06
3.53
2.57
7.70
23.25
4.16
2.81
8.13
21.90
4.47
2.72
8.37
20.67
2.74
2.98
7.02
26.95
2.66
1.37
6.73
18.85
3.03
3.00
8.17
25.39
5.99
4.00
9.95
22.90
7.69
6.15
8.12
21.22
12.05
3.40
9.89
26.18
7.19
4.23
7.59
7.83
4.93
9.16
7.44
4.76
4.85
3.06
21.82
29.34
20.81
19.97
28.34
29.26
1834
16.60
12.91
1630
16.41
16.12
16.45
16.39
16.51
15.11
17.42
17.00
19.03
14.05
15.30
27.28
19.01
14.49
8.99
14.95
23.48
29.16
17.88
12.95
6.33
10.19
14.19
27.02
19.16
14.69
9.35
15.59
14.24
26.02
18.81
15.02
9.54
16.36
19.02
31.71
19.69
12.59
7.02
9.96
16.32
29.53
17.95
13.81
8.78
13.60
17.06
28.24
20.89
13.26
8.82
11.73
13.10
25.26
18.41
16.40
8.94
17.89
9.22
19.87
20.51
17.09
10.34
22.96
13.15
18.12
17.16
14.37
11.77
25.42
100
S|!!g|jj|pf|j
...
100
.•.
.
"
'
67.19
32.81
..•
...
m§
100
54.36
45.64
n
(thousands of dollars)
Less than 25
25-49
50-99
II
sflj
5,000 or more
Organisational form
Proprietorship
Partnership
industrial
<10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
K
Insurance agents and
real estate (60-69) ..
Business services
(70-79)
Professional services
(80-89)
10-14
15-19
20-24
25 or more
jjj
«gs
For notes, see end of table.
Financial Services Used by Small Businesses
643
A. 1.—Continued
4.77
95.23
Owners' participation
Owner management . . . .
Hired management
85.25
14.75
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic . . .
Non-Hispanic white . . . J
11.90
88.10
White
Black
Asian or Pacific Islander
American Indian or
Native Alaskan
Non-Hispanic
Male
Ownership equally
divided by sex
92.03
3.23
3.52
84.39
15.61
8537
14.63
100
100
33.01
27.14
29.56
100
93.98
10.41
89.59
13.29
86.71
22.23
77.77
85.87
14.13
83.09
16.91
92 48
7.52
86.26
13.74
77.44
22.56
75.81
24.19
59.74
40.26
11.05
88.95
14.91
85.09
12.35
87.65
12.61
87.39
11.42
88.58
8.66
91.34
8.21
91.79
92.87
2.85
3.41
89.05
4.57
3.89
91.28
3.88
3.39
91.61
3.42
3.72
92.61
2.72
3.77
95.00
.95
3.32
95.75
.94
1.64*
1.25*
.86*
.73*
1.68*
1.22
10.22
.86
2.48
1.45
4.38
95.62
36.79
63.21
4.26
95.74
4.79
95.21
4.35
95.65
4.62
95.38
4.22
95.78
3.87
96.13
3.95*
96.05
22.07
72.29
27.66
68.49
21.32
72.81
25.20
71.51
21.59
71.68
21.09
70.96
10.15
82.45
13.94
82.01
5.63
3.85
5.88
3.29
6.73
7.95
7.41
4.05
100
100
92.11
7.23
.00*
644
Federal Reserve Bulletin • July 1995
A.l.
Characteristics of small businesses, distributed by selected category of firm, 1993—Continued
Years under current ownership
Urbanizaton at main office
Organizational form
Category
0-9
100
All firms
offull-time-equivalent
10 or more
100
Urban
Rural
100
100
Proprietorship
100
Other
IM
employees
0-1.
2-4 .
5-9.
50-99 .
100-499
41.76
31.02
14.36
7.23
3.46
1.08
1.09
36.57
27.76
17.39
833
6.26
2.24
1.45
38.40
28.58
16.18
8.06
5.48
1.91
1.40
40.19
31.29
15.82
7.11
3.52
1.16
.91
58.45
3005
8.48
2.00
.72
18
.12*
2333
28.44
22.09
12.47
8.48
2.98
2.22
14.74
10.22
12.26
26.00
14.49
10.39
6.89
2.41
1.25
U5
11.40
7.10
11.59
22.68
15.39
12.31
10.42
4.54
2.30
2.26
12.56
8.27
11.51
23.69
15.50
11.08
¥ 9.24
4,09
1.96
2.09
13.78
9.05
13.24
25.57
13.18
12.99
7.71
1.95
1.45
1.07
20.67
13.94
17.24
28.45
10.97
5.30
2.76
.35
.01*
.31*
6.69
4.13
7.68
20.69
18.17
1633
13.73
6.20
3.29
3.10
36.85
13.67
15.60
16.31
8.18
4.56
2.45
.77
1.60
28.50
11.56
13.47
18.03
12.28
6.87
5.41
1.92
1.96
33.03
12.33
14.65
16.28
9.65
5.98
4.46
1.56
2.07
28.77
13.00
13.45
20.95
13.65
5.45
2.92
.95
.86
46.84
14.78
13.88
13.47
7.35
2 54
iS
.62
.24*
.28*
20.79
10.71
14.78
20.22
12.93
8.43
6.83
233
2.98
42.32
8.91
26.43
22.35
45.23
7.83
14.54
32.40
41.76
8.13
20.27
29.83
52.33
8.89
17.10
21.68
12.25
3.35
3,96
3.15
8.76
24.71
5.74
24.04
14.04
14.89
4.15
4.18
2.50
7.57
20.09
8.27
20.18
18.17
13.66
3 70
4.25
2.56
8.45
19.97
7.42
22.07
17.83
14.17
3.88
3.46
3.58
6.67
29.89
6.36
20.88
11.11
14.32
2.86
2.23
137
5.08
21.52
5.55
28.13
18.93
13.33
4.55
535
3.88
10.42
22.47
8.48
16.87
14.43
33.09
25.22
15.65
26.03
15.79
28.02
19.36
14.19
8.38
14.26
13.43
24.50
17.68
15.60
H.25
17.54
14.11
26.85
19.03
14.51
10.38
15.12
16.23
27.61
18.99
14.47
7.89
14.81
r (thousands of dollars)
Less than 25
100-249
500-999 ..
1,000-2,499.
2*500-4,999
5,000-9,999
10,000 or mon
Assets (thousands of dollars)
Less than 25
25-49
50-99
250-499
500-999
1,000-2,499
2,500-4,999
tion .
C corporation
f§
100
14.80
35.00
50.20
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20—29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79)
Professional services (80-89)
Years under current
0-4
5-9
10-14
15-19
20-24
25 or more
35.93
64.07
..,
. ..
Financial Services Used by Small Businesses
A.l.—Continued
Years under current ownership
Urbanizaton at main office
Organizational form
Category
0-9
10 or more
Middle Atlantic
7.14
15.33
6.88
15.78
696
17.80
Midwest
East North Central
West North Central
16.16
7.00
15.94
8.93
16.10
6.04
South
South Atlantic . . . .
East South Central
West South Central
15.54
4.17
11.79
14.05
4.56
9.05
14.54
3.20
10.33
5.49
17.38
6.19
18.62
4.58
20.45
Urbanization at main office
Urban
Sard
81.24
18.76
77.25
22.75
Number of offices
One
Two
Three or i
84.76
10.84
4.39
84.74
9.75
5.51
84.23
10.47
5.31
Some
None
8.27
91.73
6.78
93.22
8.50
91.50
3.32
96.68
3.34
96.66
Owners'
Owner!
Hired
87.82
12.18
83.35
16.65
84.55
15.45
87.88
12.12
93.42
6.58
14.72
9.81
90.19
13.40
86.60
6.27
93.73
15.26
84.74
3J4
4.88
1.88
93.92
2.85
2.51
.73
91.06
3.65
4.22
1.07
95.68
1.67
•ss
Non-Hispanic
4.90
95.10
3.99
96.01
4.96
95.04
2.21
97.79
5.73
94.27
Female
Male
Ownership equally divided by sex
26.31
68.60
5.09
18.94
75.03
6.04
22.18
72.51
5.31
21.67
71.49
6.85
24.92
75.08
ft-'
Urban
Proprietorship
Other
5.90
14.23
1666
15.78
15.87
15.10
9.22
16.77
7.23
15.23
8.86
9.80
11.80
4.18
11.38
16.95
4.56
9.31
Rural
Census region of main office
Northeast
New England
West
Mountain
Pacific . . .
6.66
21.53
100
74.95
25.05
91.63
6.20
2.16
Export sales
Race, ethnicity, and sej
hite or Hispanic
lispanic white .
White
Black
Asisn or Pacific Islsndcr
American Indian or Native Alaskan ..
Hispanic
8
NOTE. * Number of respondents was less than fifteen, too small to calculate a reliable statistic.
. . . Not applicable.
KS.
4.07
1.48
.00*
645
646
A.2.
Federal Reserve Bulletin • July 1995
Percentage of small businesses using selected financial services, by selected category of firm, 1993
A. Any service; liquid asset accounts; credit lines, loans, and capital leases
Credit lines, loans, and capitalleases
Liquid asset accounts
Category
Any
service
Any
Checking
Savings
Any
Credit
line
Mortgage
Vehicle
Equipment
Capital
lease
Other
All firms
96.00
95.14
94.70
23.94
55.48
25.54
6.18
24,09
14.00
920
11.68
Number of full-timeequivalent employees
0-1
2-4
5-9
10-19
20-49
92.01
97.77
98.88
99.78
99.24
90.40
97.42
98.45
99.02
99.24
41.87
54.51
67.04
75.89
77.83
86.16
88.46
15.75
23.37
31.59
39.55
52.64
56.38
59.53
5.72
6.08
6.14
7.45
5.44
5.55
18.99
16.85
24.49
32.12
35.35
30.43
33.10
26.44
8.10
12.31
17.62
24.74
31.40
30.07
28.84
9.37
11.81
12.74
17.69
13.22
99.04
99.74
16.98
21.48
28.47
34.79
46.67
40.47
54.11
4.42
6.92
11.99
20.18
20.28
99.12
100.00
89,60
97.19
98.05
99.02
99.20
99.04
99.74
30.39
30.25
14.10
19.17
50-99
100-499
Salts
(thousands of dollars)
Less Hub 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2300-4,999
5,000-9,999
10,000 or more
Assets
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499 .. ..
500-999
1,000-2,499
2,500-4,999
5,000 or more
Organizational form
Proprietorship
Partnership
S corporation
C corporation
Standard industrial
classification
Construction and mining
(10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation (40-49)
Wholesale trade (50-51) .
Retail trade (52-59)
Insurance agents and
real estate (60-69) ..
Business services
(70-79)
•111
99.70
99.90
12.94
13.26
15.04
21.78
27.23
30.92
39.63
41.64
45.01
46.92
26.33
41.52
47.60
58.03
62.86
98.01
99.70
99.72
76.54
91.80
94.56
98.90
98.60
99.09
98.89
97.%
99.70
99.72
90.11
97.65
98.57
99.42
99.89
99.41
99.63
98.98
100.00
88.97
96.74
98.15
98.64
99.89
99.41
99.36
98.84
96.58
87.93
96.73
98.15
98.19
99.19
99.41
98.21
98.84
96.58
13.80
20.49
23.34
29.44
36.09
38.23
48.61
44.28
43.33
92.49
96.93
99.70
98.64
91.16
96.24
9935
15.81
28.02
28.43
98,10
90.60
94.63
99.18
98.00
95.44
94.78
97.06
98.02
96.16
81.67
94.22
95.53
99.02
99.47
99.92
99.28
98.08
78.96
92.73
38.02
55.78
59.23
66.93
73.66
73.55
84.90
84.56
90.24
46.01
56.53
2.92*
5.16
9.93
4 12
10.99
21.10
22.51
25.75
28.50
6.42
8.08
9.75
15.25
17.22
23.83
21.30
21.68
13.25
23.44
21.12
33.23
37.99
42.72
58.42
52.75
59.07
3.30
6.41
6.42
6.20
9.18
12.52
11.59
7.52
22.58
15.91
25.63
28.63
30.25
33 32
28.44
29.74
23.41
17.48
7.65
12.51
14.07
22.17
20.74
24.35
23.22
27.11
17.21
5.34
8.60
10.28
10.72
12.32
16.05
23.96
20.96
25.78
21.78
23.61
25.21
32.31
17.80
25.12
31.37
33.72
6.67
9.54
7.09
3.80
19.47
20.94
64.73
63.54
29.14
28.72
10.72
12.31
16.92
17.60
5.03
8.06
11.86
14.20
12,95
13.19
94.45
22.35
60.86
27.29
5.31
36.91
14.23
3.92
8.77
97.05
97.05
27.99
63.16
33.16
5.83
26.66
28.46
15.79
13.74
97.83
29.25
25.14
26.66
18.54
63.11
68.01
59.16
57.02
33.71
24.66
27.86
39.50
27.02
6.95
5.21
4.98
7.00
36.61
25.79
22.85
19.60
22.08
11.69
10.08
19.34
19.73
8.81
12.05
15,08
15.47
30.51
52.14
20.15
11.24
14.83
9.47
6.89
98.90
98.60
99.09
99.25
97.14
96.28
96.68
97.78
93.88
95.93
96.68
97.69
95.92
94.66
96.61
73,13
80.22
83,83
90.11
9.05
10.77
16.47
24.81
25.39
36.45
42.19
63 12
69.43
61.43
9.85
18.78
18.76
25.66
31.77
33.72
28.86
33.78
29.01
26.92
94.56
95.11
7139
7.41
7.09
7.55
7.06
7 16
5.76
2.69
11.80
13.62
1733
19.55
1.97*
3.13*
13.33 »
7 43
6.98
8.61
12.10
11.04
13.26
16.36
16.12
12.92
17.14
25.44
7.31
12.74
13.88
14.52
20.46
9.76
13.76
16.35
93.18
91,79
91.03
20.34
47.35
16.86
5.37
21.56
15.10
6.85
8.94
96.88
95.81
95.34
30.62
53.57
24.93
5.32
18.73
14.63
12.27
9.13
95.54
97.52
96.48
96.25
95.06
93.39
94.60
96.47
95.68
95.41
94.66
92.60
93.84
20.66
23.25
23.98
26.09
26.84
24.67
57.54
58.75
58.63
54.09
52.67
46.45
26.22
25.73
28.55
25.47
23.58
21.93
7.91
6.45
6.41
6.48
7.58
2.52
21.31
26.09
25.06
27.10
23.61
19.42
14.56
15.94
13.24
14.01
13.58
11.11
12.90
8.77
10.03
8.16
8.48
6.58
15.78
12.05
12.57
9.44
10.15
8.78
Professional services
(80-89)
Years under current
ownership
0-4
5-9
10-14
15-19
20-24
25 or more
For notes, see end of table.
96.18
95.08
95.15
94.33
92.14
Financial Services Used by Small Businesses
647
A.2.—Continued
A.—Continued
Credit lines, loans, and capital leases
Liquid asset accounts
Category
Any
service
Any
Checking
Savings
Any
Credit
line
Mortgage
Vehicle
Equipment
Capital
lease
Other
Census region
of main office
Northeast
New England ..
Middle Atlantic
96 26
97.09
96.26
95.41
95.78
95.11
25.42
23.43
51.76
54.78
21.70
21.06
6.18
4.25
22.13
25.29
9.88
11.15
8.04
10.78
12.41
11.30
Midwest
East North Central
West North Central
95.79
96.57
95.36
94.95
94.27
94.95
25.55
25.32
51.78
64.14
23.37
33.12
8.84
8.24
23.74
24.57
12.82
22.71
6.97
6.49
9.39
12.41
South
South Atlantic . . . .
East South Central
West South Central
96.28
98.14
93.73
95.34
96.50
92.75
94.38
96.50
92.40
21.75
17.13
19.71
57.67
65.11
53.33
29.37
32.82
23.83
5.87
9.22
2.11
26.59
27.46
28.50
15.09
16.21
14.93
8.82
8.78
7.22
9.33
12.97
11.11
West
Mountain
Pacific . . .
97.71
94.86
96.20
94.86
96.20
94.81
27.84
26.30
61.84
51.95
28.28
24.62
7.77
5.87
24.63
18.40
17.43
12.14
10.24
12.66
20.52
12.48
Urbanization at
main office
Urban
Rural
96.04
95.85
95.25
94.72
94.79
94.34
24.44
22.06
54.41
59.49
24.49
29.50
5.65
8.20
23.65
25.74
13.03
17.65
9.77
7.05
10.85
14.81
Number of offices
One
Two
Three or more . . .
95.54
98.35
99.03
94.70
96.85
98.99
94.22
96.85
98.40
22.54
26.63
42.07
52.95
63.75
81.33
23.37
32.68
47.54
5.63
8.34
11.17
23.24
27.03
32.36
12.73
27.39
8.02
13.14
21.08
11.18
12.59
18.29
Some
None
98.41
95.81
97.17
94.98
96.79
94.53
30.66
23.40
63.01
54.88
36.17
24.69
6.91
6.13
24.30
24.07
14.23
13.98
18.51
8.45
16,51
11.30
Owners' participation
Owner management .
Hired management...
95.62
98.20
94.72
97.57
94.27
97.15
22.82
30.42
54.53
60.96
24.37
32.29
6.17
6.26
24.06
24.26
13.46
17.16
8.47
13.41
11.89
10.48
Nonwhite or Hispanic . . . .
Non-Hispanic white
95.32
96.09
93.76
95.32
92.27
95.02
21.18
24.31
47.10
56.61
19.02
26.42
4.59
6.40
21.62
24.42
12.82
14.16
6.58
9.55
11.31
11.73
White
Black
96.08
93.91
95.26
91.24
94.92
89.93
24.24
19.25
56.65
38.55
26.51
14.97
6.23
5.78
24.56
18.59
14.14
14.10
9.46
5.27
11.72
7.82
Asian or Pacific Islander .
American Indian or
Native Alaskan
96.92
96.47
94.90
19.82
44.12
14.79
5.20
16.28
9.41
8.79
14.18
92.81
92.81
89.85
25.89*
45.14
11.25*
6.41*
25.49*
16.38*
0.76*
11.82*
Hispanic
Non-Hispanic
94.27
96.08
92.37
95.27
91.37
94.85
22.17
24.02
54.64
55.52
26.95
25.48
2.47
6.35
27.06
23.95
13.34
14.03
6.73
9.31
11.09
11.71
Female
Male
Ownership equally
divided by sex
95.52
95.92
93.83
95.37
93.47
94.87
22.42
24.02
51.12
56.27
19.62
26.94
6.83
5.75
21.89
24.19
11.90
14.58
7.45
9.55
12.28
11.45
98.94
97.30
97.30
28.86
62.46
30.81
9.18
31.41
14.90
11.49
12.36
Export sales
18.00
Race, ethnicity, and sex
648
A.2.
Federal Reserve Bulletin • July 1995
Percentage of small businesses using selected financial services, by selected category of firm, 1993—Continued
B. Financial management
Financial management
Category
Credit card
Trust
and
pension
Loan
from
owner
Personal
Business
4.30
9.71
16.67
39.22
27.63
60.77
2.24
4.04
4.98
8.88
7.37
17.09
26.24
2.72
3.51
4.89
8.41
8.80
12.50
8.05
5.72
8.16
9.73
14.58
24.64
36.20
39.90
9.44
14.59
25.33
29.63
27.61
29.11
34.14
40.55
39.97
41.90
36.11
30.43
22.85
24.80
20.64
24.74
39.42
34.53
40.84
46.07
37.13
49.93
62.82
69.64
73.40
74.14
72.25
84.31
2.76*
2.58*
1.33*
2.67
5.02
3.96
9.54
11.66
19.66
47.27
1.02*
1.68*
2.85*
3.24
4.33
5.13
6.94
12.68
12.08
31.83
2.43*
2.03*
2.%*
2.73
4.44
5.82
5.70
13.68
10.19
19.06
2.62*
4.93*
6.97
7.14
9.26
10.23
15.32
26.05
38.37
52.36
7.96
7.55
10.25
14.54
18.87
26.19
25.88
32.03
41.04
25.70
36.47
48.83
43.75
41.49
39.71
37.91
35.09
31.52
25.74
22.25
10.28
21.26
23.59
26.43
34.15
35.23
42.31
44.26
41.90
37.52
35.67
51.79
55.69
64.32
70.95
74.04
71.46
75.81
76.35
74.28
15.22
24.53
27.42
29.23
29.66
30.09
29.87
42.65
42.36
2.13
2.84*
3.73
5.25
5.05
8.49
14.05
32.72
34.45
1.24*
3.83
3.09
5.28
5.15
6.27
15.72
19.54
20.70
2.61
2.91*
2.86*
6.60
5.19
7.85
8.65
12.85
20.47
6.05
8.61
7.05
11.39
11.49
14.43
24.02
44.59
36.56
10.41
13.66
16.34
22.93
23.43
26.63
29.11
29.95
30.66
41.61
47.83
40.80
46.70
35.18
32.84
31.30
21.76
22.13
19.63
31.38
28.78
34.81
32.97
43.42
37.49
36.74
30.88
49.20
59.53
68.34
69.77
71.27
69.12
74.10
77.41
67.21
17.72
25.08
26.70
28.16
3.26
5.84
6.71
6.95
2.03
6.33
6.22
6.82
2.27
6.44
5.25
6.17
6.33
6.87
10.30
15.41
16.17
36.30
29.22
40.72
34.55
43.82
• 35.05
21.85
23.94
33.53
33.64
52.62
68.42
68.08
66.16
Creditrelated
Brokerage
5.19
4.56
14.78
25.05
27.90
32.23
34.34
29.88
54.48
3.09
3.22
6.13
6.28
12.60
21.20
43.36
15.91
21.05
26.02
33.60
43.84
44.50
48.49
55.89
71.38
86.44
9.96
12.21
15.58
25.71
31.41
29.58
31.15
22.71
41.49
57.38
23.43
34.87
36.22
44.87
42.22
47.81
56.91
81.13
68.54
26.25
36.04
40.42
44.99
Transaction
Cash
35.11
23.03
2-4 . . .
5-9 . . .
10-19 .
20-49 .
50-99 .
100-499
23.83
34.85
42.16
49.05
57.40
67.32
75.55
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more . . . . . .
Assets
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
Any
All firn
MEMO: Nontraditional credit
,
Trade
credit
Number of full-time0-1
Organizational form
Proprietorship
C corporation
Standard industrial
classification
Construction and mining
(10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation (40-49).
Wholesale trade (50-51)
Retail trade ( 5 2 - 5 9 ) . . . .
Insurance agents and
real estate (60-69)
Business services
(70-79)
Professional services
(80-89)
Years under current
ownership
0-4
5-9
10-14
15-19
20-24
25 or more
19.38
9.30
2.25
3.44
2.26
6.75
13.46
37.07
31.94
71.60
26.43
18.20
5.83
3.91
3.21
7.72
21.74
35.86
25.87
77.94
34.97
38.57
37.82
45.73
18.57
26.37
22.70
37.71
8.09
11.44
6.78
6.13
10.03
8.68
7.72
5,26
4.08
5.26*
4.70
2.82
13.18
8.91
12.80
5.03
34.00
26.90
26.43
19.45
41.54
43.47
36.71
34.84
36.21
26.01
33.70
22.37
78.07
52.60
72.46
65.71
33.09
13.61
7.53
4.29
9.29
10.60
15.98
38.81
22.77
39.98
27.19
20.99
2.40
2.67
2.24
4.99
11.04
38.90
21.55
53.01
45.57
23.47
6.36
3.71
8.49
22.56
11.41
48.26
36.87
51.80
34.03
35.12
37.84
33.71
35.22
34.03
25.00
24.60
24.09
23.96
20.18
17.61
4.55
3.75
5.79
4.39
7.16
7.30
6.94
3.77
4.78
3.23
4.69
4.50
2.78
2.80
4.92
3.93
5.89
7.19
6.27
8.66
10.79
9.23
11.19
13.33
20.64
18.39
17.07
14.46
10.54
14.82
39.05
41.03
41.13
39.57
40.19
32.76
23.01
28.08
30.92
27.13
27.17
28.11
58.94
62.59
61.09
63.81
62.81
54.72
Financial Services Used by Small Businesses
649
A.2.—Continued
B.—Continued
MEMO: Nontraditional credit
Financial management
Category
Any
Transaction
Cash
Creditrelated
|
Credit card
Trust
and
pension
Loan
from
owner
Personal
Business
10.49
10.75
Brokerage
16.59
18.81
38.17
38.69
2638
2826
59.55
64.34
11.20
9.52
16.34
10.40
37.59
43.16
25.09
24.39
59.64
57.19
Trade
credit
Census region
of main office
Northeast
New England
Middle Atlantic
33.36
36.54
23.86
24.18
4.12
4.65
4.28
3.86
2.65
4.37
Midwest
East North Cental . . .
West North Central
37.77
34.95
24.11
22.66
6.13
6.32
3.49
4.87
6.04
4.77
South
South Atlantic
East South Central . . .
West South Central
37.73
32.16
30.05
22.78
18.92
20.98
7.09
3.92
4.36
5.99
6.78
4.91
4.58
2.55*
2.24
11.22
7.79
6.42
22.97
18.79
14.99
40.47
30.72
35.75
29.28
28.03
25.94
60.99
63.95
55.56
37.75
32.86
27.36
21.86
4.21
4.28
5.37
3.91
5.09
4.21
9.53
8.42
15.32
13.73
38.18
43.14
36.76
27.83
58.50
63.49
35.00
35.51
22.93
23.39
4.82
6.59
4.34
5.38
4.70
2.79
10.37
7.20
17.25
14.50
40.30
35.20
28.67
23.74
60.39
62.18
Three or more . . .
32.43
45.72
58.76
21.36
29.07
38.79
4.26
6.57
17.99
3.82
5.94
14.14
3.90
5.53
8.53
8.34
13.90
24.23
15.25
22.10
29.68
38.77
43.60
38.00
25.92
36.01
39.49
58.84
71.02
72.44
Export sales
None
Some
33.78
51.78
22.17
33.70
4.82
9.78
3.70
15.32
4.02
7.79
9.27
15.13
15.25
34.47
38.31
50.69
26.44
42.58
60.08
69.33
Owners' participation
Owner management .
Hired management —
32.98
47.44
21.51
31.78
4.65
8.33
3.99
7.84
4.14
5.20
8.44
17.04
16.21
19.35
4023
33.40
27.00
31.26
59.81
66.29
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic ..
Non-Hispanic white . . .
25.64
36.39
18.05
23.70
4.05
5.34
4.14
4.61
1.76
4.64
3.88
10.49
13.75
17.07
35.84
39.68
26.29
27.81
51.42
62.03
White
Black
35.74
26.66
23.38
19.98
5.16
5.69
4.54
234
4.49
1.88*
10.16
2.24
16.99
9.40
39.60
34.30
28.02
27.91
61.65
4939
Asian or Pacific Islander .
American Indian or
Native Alaskan
31.72
18.55
5.12
5.63
2.79*
8.11
15.76
37.83
15.92
51.58
20.09*
17.37*
6.22*
8.26*
0.20*
0.20*
14.01*
28.44
30.79
50.05
Hispanic
Non-Hispanic
20.13
35.80
15.77
23.36
0.98*
5.38
2 55*
4.65
1.11*
4.44
2.33*
10.04
13.72
16.81
35.26
39.41
30.32
27.51
51.16
61.21
Female
Male
33.03
35.49
24.88
22.14
3.91
5.56
3.77
4.93
3.31
4.51
6.03
11.23
15.38
15.95
42.35
37.72
27.61
27.71
58.89
60.46
Ownership equally
divided by sex
38.34
27.16
5.43
2.84
5.46
4.59
31.01
46.27
26.65
72.07
We*
Mountain
Pacific ..
|
I
Urbanization at
main office
Urban
Rural
Number ofoffices
One
Two
NOTE. Memo items are excluded from the data in the first column of table A.2.A, "any service."
* Number of respondents was less than fifteen, too small to calculate a reliable statistic.
. . . Not applicable.
650
A.3.
Federal Reserve Bulletin • July 1995
Percentage of small businesses that use selected suppliers of financial services, by selected category of firm, 1993
A. Any supplier, any financial institution, and depository institutions
Financial institution
Depository
Category
Any
supplier
Thrift
Any
Any
All firms
Commercial
bank
Any
Savings
institution
Credit
union
96.00
95.25
94.81
87.76
15.44
11.67
4.25
92.01
97.77
98.88
99.78
99.24
99.12
100.00
90.67
97.35
98.70
99.13
99.19
97.95
99.86
90.17
96.88
98.26
98.67
99.08
97.95
99.86
80.51
89.86
92.86
95.50
97.20
96.11
98.56
16.67
16.03
15.27
13.02
10.02
8.14
13.40
12.73
10.20
12.86
11.63
9.85
6.81
12.47
4.44
6.42
2.96
1.51*
0.39*
1.47*
1.25*
Sales (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5.000-9,999
10,000 or more
81.67
94.22
95.53
99.02
99.47
99.92
99.28
98.08
99.70
99.90
81.00
92.59
95.18
98.96
98.78
99.33
98.98
97.77
99.35
99.63
80.02
91.94
94.50
98.59
98-73
98.93
98.57
96.89
99.35
99.63
68.80
79.47
83.62
91.31
93.51
96.60
97.14
93.46
98.89
96.68
15.38
19.04
19.35
16.54
16.62
11.91
9.49
11.16
11.55
11.14
11.35
13.37
12 89
12.16
12.55
10.10
8.48
10.41
10.90
8.81
4.32
6.35
6 81
5.22
4.74
1.92*
1.00*
0.83*
1.33*
2.48*
Assets (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
90.11
97.65
98.57
99.42
99.89
99.41
99.63
98.98
100.00
89.25
97.65
98.56
99.17
99.82
99.41
99.63
98.98
100.00
88.97
97.33
97.65
98.43
99.82
99.41
99.63
98.98
96.68
77.92
87.98
94.46
94.22
96.51
95.10
95.37
97.51
96.35
16.74
16.77
13.29
13.97
13.26
18.44
14.14
7.03
13.48
12.29
13.32
10.15
9.44
9.39
16.81
13.49
5.84
13.34
4.75
3.89
3.49
5.19
3.93
1.64*
0.94*
1.19*
0.30*
Organizational form
Proprietorship
Partnership
S corporation
C corporation
92.49
96.93
99.70
98.64
91.32
96.68
99.18
98.26
90.80
96.29
98.73
97.91
80.53
88.99
94.31
94.13
18.43
17.30
13.82
11.36
13.07
14.45
10.71
9.34
6.00
3.22*
3.74
2.17
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69) . . .
Business services (70-79)
Professional services (80-89)
95.44
97.06
98.02
96.16
96.61
97.14
97.69
93.18
96.88
95.21
96.23
97.06
96.14
96.27
96.51
96.75
92.01
95.94
94.72
96.07
97.06
94.98
96.27
96.36
95.91
9L60
94.98
85.14
84.55
90.37
89.96
92.62
89.65
88.53
84.17
89.16
17.85
18.51
16.64
11.99
7.87
16.26
19.22
14.90
14.68
12.39
15.06
13.63
7.90*
5.97
12.82
13.73
12.08
10.27
6.42
4.37*
3.02*
4.09*
1.90*
4.09
6.19
3.36
4.43
95.54
97.52
96.48
96.25
95.06
93.39
94 41
96.87
95.62
95.51
95.00
92.63
94,37
95.91
95.03
95.27
94.99
92.42
87.30
87.16
86.13
90.28
87.70
88.97
15.93
17.44
18.80
12.14
14.01
11.09
11.01
13.59
12.97
10.02
11.93
8.66
5.22
4.62
6.06
2.63
3.16*
2.49
Number of full-time-equivalent employees
0-1
2-4
5-9
10-19
20-49
50-99
100-499
Tears under current ownership
0-4
5-9
10-14
15-19
20-24
For notes, see end of table.
-
;
Financial Services Used by Small Businesses
651
A.3.—Continued
A.—Continued
Category
Any
supplier
Thrift
Any
Any
Commercial
bank
Any
Savings
institution
12.69
17.®
Credit
4.34+
12.46
region of main office
96.26
97.09
95.77
96.21
95.77
95.37
Midwest
East North Central
West North Central
95.79
96.57
95.35
95.78
95.13
95.32
South
South Atlantic . . . .
East South Central
West South Central
96.28
98.14
93.73
95.75
96.67
92.25
95.31
96.67
91.57
97.71
94.86
97.20
94.23
• •
97.20
93.64
Urbanization at main office
Urban
Rural
96.04
95.85
95.24
95.31
94.76
95.00
87.49
88.74
Number of offices
One
Two
Three or more
95.54
98.35
99.03
94.70
98.19
98.69
94.33
97.02
98.45
86.85
90.66
97.09
15.39
17.36
12.38
11.45
14.50
9.66
Export sales
Some
None
98.41
95.81
98.30
95.01
97.68
94.58
92.10
87.41
14.90
15.48
13.11
11.56
1.83*
4.44
Owners participation
Owner management ..
Hired i
95.62
98.20
94.96
96.94
as
86.83
93.09
12.54
6.69
4.56
Race, ethnicity, and sex of majority owners
Nonwhite or Hispanic
Non-Hispanic white .
95.32
96.09
94.31
95.38
93.55
94.98
84.40
88.21
11.38
11.71
White
Black
96.08
93.91
95.39
91.44
94.95
90.26
88.12
77.85
11.67
13.68
Asian or Pacific Islander
American Indian or Native Alaskan
96.92
92.81
96.15
92.81
95.97
92.81
87.63
86.94
12.87
3.60*
Hispanic
Non-Hispanic
94.27
96.08
93.80
95.32
92.75
94.90
83.57
87.95
10.46
11.73
Male
Ownership equally divided by sex
95.52
95.92
98.94
94.25
95.29
98.79
93.38
94.93
98.79
84.37
88.25
94.71
West
Mountain
:
12.18
9.79
15.09
15.71
11.89
11.62
11.58
652
Federal Reserve Bulletin • July 1995
A.3.
Percentage of small businesses that use selected suppliers of financial services, by selected category of firm,
1993—Continued
B. Nondepository financial institutions
Any
nondepository
financial
All firms
Number of full-time-equivalent
company
28.66
Category
12.93
9.50
7.56
3.50
7.80
6.36
7.91
11.87
15.46
18.34
19.62
25.46
3.52
6.61
10.20
16.13
14.70
19.72
20.83
2.89
2.57
3.25
5.36
6.70
8.88
14.40
27.34
3.91
5.14
6.74
6.75
11.02
13.31
15.08
23.92
23.36
29.32
1.82*
2.94*
3.91
7.24
9.30
12.42
12.89
15.65
10.67
16.21
5.05
8.00
17.08
20.24
Finance
Brokerage
Leasing
company
employees
<M
2-4
5-9
10-19
20-49
50-99
100-499
Sales (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
Assets (thousands of dollars)
Less than 25
25-49...
18.69
25.60
:v: 36.13
52.36
44.52
56.18
60.19
12.71
17.00
19.73
25.10
35.41
40.92
42.21
54.04
49.37
59.01
6.22
6.76
9.40
11.73
16.47
19.65
16.98
25.11
21.79
0.89*
2.69*
1.27*
2.80
4.19
4.62
4.48
7.14
7.91
16.65
1.04
8.82
6.81
6.57
11.68
16.33
13.11
6.80
13.91
12.89
20.15
20.68
30.26
23.24
23.35
29.07
34.42
3.18
6.57
11.81
9.38
10.09
12.42
11.97
18.30
12.98
19.65
26.00
35.58
38.72
8.41
7.82
18.16
17.85
5.74
10.40
10.70
14.28
4.52
6.78
10.13
10.75
2.87
3.37
4.71
3.67
25.06
35.44
32.68
43.90
32.25
25.38
29.65
21.53
38.20
17.10
18.76
4.68
7.57
9.12
13.05
13.81
4.84
12.64
5.92
21.01
4.32
11.35
10.25
9.67
8.23
5.64
5.63
7.75
11.24
2.09
4.19
4.40
4.23
3.43
4.52
8.57
5.63
8.69
10.88
10.91
10.49
8.06
8.88
8.54
6.25
6.10
5.56
Organizational form
Proprietorship
Partnership
S corporation
C corporation
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transporation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79) . . . —
Professional services (80-89)
500-999
1,000-2,499
2,500-4,999
11.85
16.38
26.03
19.33
27.29
23.57
16.56
18.70
28.36
28.76
36.54
34.38
39.61
51.18
65.09
64.50
50-99....
100-249
250-499
-III
Other
13.24
25.90
14.37
14.41
6.87
9.24
10.64
10.15
2.36*
3.89
3,02
5.43
1.99
2.60
Years under current ownership
0-4.
S-9
10-14
15-19
20-24
25 or more
27.38
29.49
30.64
29.01
27.19
26.47
14.47
14.18
13.25
13.42
12.48
8.45
1123
3.09
3.07
3.46
3.17
3.44
5.09
Financial Services Used by Small Businesses
A.3.—Continued
B.—Continued
Census region of main office
Northeast
New England
Middle Atlantic
R O T H M
Midwest
East North Central
West North Central
South
South Atlantic
East South Centra]
West South Central
2670
10.64
5.15
6.90
West
Mountain
Pacific
25.53
30.34
9.04
9.53
9.10
10.56
3.28*
3.75
Urbanization at main office
Urban
Rural
30.71
20 46
10.59
5.41
8.45
4.23
3.62
3.03
Three or more
26.77
35.41
46.80
6.66
9.95
17.87
3.12
4.36
8.13
Export sales
Some
None
39.79
27.77
10.87
7.30
5.46
3.34
Number of offices
One
31.08
Owners' participation
Owner management ..
Hired management
Race, ethnicity, and sex of majority <
Nonwhite or Hispanic
14.59
9.01
7.24
9.00
6.31
3.71
1.91*
2.80
12.63
14.66
21.23
29.66
8.91
12.92
7.08
10.35
3.19
5.25
11.57
13.11
3.96
10.25
6.44
7.71
2.75
3.60
White
29.55
17.05
9.94
3.23
7.74
3.48
3.54
3.05
Asian or Pacific Islander
American Indian or Native Alaskan
19.94
5.84
3.59*
6.66
7.86*
3.87*
0.56*
2.69*
9.81
7.62
7.56
2.56*
3.54
6.92
7.50
10.84
3.10
3.63
3.43*
Hispanic
Non-Hispanic
Female
Male
Ownership equally divided by sex
7.44
10.18
8.88
653
654
Federal Reserve Bulletin • July 1995
A.3.
Percentage
of
small businesses
that u s e
selected
suppliers of
financial
services,
by
selected category
of
1993—Continued
C. Nonfinancial suppliers
Any
nonfinancial
Family and
individuals
4.95
8.53
9.52
10.39
14.26
18.01
15.96
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
Assets (thousands of dollars)
Less than 25
25-49
50-99 .
1,000-2,499
2,500-4,999
5,000 or more
Organizational fortn
Proprietorship
8.87
13.88
17.05
16.44
14.65
21.12
17.31
20.34
17.49
30.04
12.26
15.71
19.85
19.36
20.77
16.67
18.70
23.05
26.96
13.20
15.80
17.96
16.98
7.29
6.71
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79)
Professional services (80-89)
13.15
21.14
14.66
18.07
18.75
17.44
12.51
14.52
13.81
8.88
9.48
6.90
8.71*
10.18
9.44
8.49
7.45
5.71
Years under current ownership
0-4
5-9
10-14
15-19
20-24
25 or more
22.49
17.20
15.16
13.89
11.51
9.05
9.59
2.62
firm,
Financial Services Used by Small Businesses
A.3.—Continued
C.—Continued
My
Family and
individuals
Other
businesses
Census region of main office
Northeast
New England
Middle Atlantic
18.14
10.17
6.75
8.90
7.12
.90*
.33*
1.69*
Midwest
East North Central
West North Central
12.26
19.93
6.16
10.55
6.96
10.76
.12*
1.27*
2.22
2.20*
South
South Atlantic . . . .
East South Central
West South Central
14.92
14.93
11.91
6.67
8.36
5.24
8.74
7.26
7.24
.92*
.14*
.60*
2.44
1.57*
3.24
West
Mountain
Pacific . . .
22.49
17.43
14.70
10.12
7.78
8.17
1.24*
.12*
2.66*
2.38
Urbanization at main office
Urban
Rural
15.39
15.50
7.96
9.04
8.32
6.81
.50
.68*
2.48
1.99
Number of offices
One
Two
Three or more . . .
14.76
16.62
23.94
7.93
8.83
11.12
7.51
8.79
14.55
.58
2.09
3.41
5.16
Export sales
Some
None
20.15
15.03
10.16
8.03
10.76
7.78
1.46
.46
3.35
2.30
Owners' participation
Owner management
Hired management
15.17
16.81
8.49
6.42
7.55
10.58
1.06
.44
2.02
4.44
Race, ethnicity, and sex of majority
Nonwhite or Hispanic
Non-Hispanic white
15.10
15.45
8.05
8.20
7.48
8.07
.75
.51
3.23
2.26
White
Black
15.43
13.80
8.19
6.60
8.06
6.76
.50
1.89*
2.25
5.22*
Asian or Pacific Islander
American Indian or Native Alaskan
18.72
8.87*
9.23
8.87*
10.34
.00*
.26*
.00*
2.09*
5.26*
Hispanic
Non-Hispanic
14.77
15.44
7.78
8.20
7.83
8.01
.58*
.53
2.13*
2.39
Female
Male
Ownership equally divided by sex
16.28
14.97
17.61
10.03
7.41
10.89
7.21
8.34
6.70
.88*
.45
.23*
2.18
2.51
1.37*
Category
NOTE. * Number of respondents was less
nonfinancial
W"
i fifteen, too small to calculate a reliable statistic.
Government
.10*
68*
Unknown
655
656
Federal Reserve Bulletin • July 1995
A.4.
Percentage of small businesses that have liquid asset accounts at selected suppliers of financial services, by selected
category of firm, 1993
A. Any supplier, any financial insitution, and depository institutions
Financial institution
Depository
Category
Any
supplier
Thrift
Any
Any
All firms
Number offull-time-equivalent employees
0-1
2-4
5-9
10-19
20-49
50-99
100-499
95.14
94.48
94.07
Commercial
bank
85.86
Any
Savings
institution
12.00
9.68
HHHHHH|
99.24
89.11
96.55
97.61
97.86
98.23
95.51
99.04
99.74
97.74
98.74
97.74
95.90
98.74
93.50
6.03
10.22
Sales (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
78.96
92.73
94.56
98.90
98.60
99.09
99.25
98.01
99.70
78.96
91.59
94.23
98.62
97.65
99.09
98.81
96.60
99.35
99.46
78.67
91.58
94.23
98.04
97.40
98.33
98.40
96.60
99.35
97.24
67.30
77.18
81.31
89.74
90.71
94.90
96.%
92.10
98.67
94.07
13.95
15.70
15.62
12.16
12.48
7.40
7.15
8.72
7.45
9.09
Assets (thousands of dollars)
Less than 25
25-49
50-99
88.97
96.74
88.56
96.74
97.84
98.13
99.82
99.41
99.36
98.84
96.58
88.37
96.42
97.41
97.13
99.82
99.41
99.36
98.84
93.97
75.64
14.40
85.91
92.98
91.66
95.98
93.76
95.03
97.02
93.52
13.57
8.31
10.25
10.51
15.14
9.35
4.12*
9.29
90.04
78.63
94.59
98.27
84.57
92.62
14.82
14.69
9.%
11.42
12.38
98.62
100-249
99.72
98.15
235
Wmmmmfi
89.49
96.82
98.05
98.66
99.06
90.40
97.42
98.45
99.02
Credit
union
78.35
88.41
90.72
93.77
13.39
12.39
11.05
10.08
7.62
10.70
9.12
9.60
9.11
7.62
5.55
9.89
10.50
3.45
11.86
11.00
10.04
9.15
7.33
6.70
8.53
7.16
6.85
3.85*
4.98
2.40
3.64
.16*
.45*
.19*
.86*
2.38*
11.00
!
2.95
3.50
1.71*
1.09*
.18*
.60*
.52*
3.53
10.73
7.06
7.03
7.62
14.41
9.30
3.70*
9.16
2.84*
1.25*
3.29
2.89*
.74*
.34*
.43*
.30*
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
98.64
99.89
99.41
99.36
98.84
96.58
Organizational form
Proprietorship
Partnership
S corporation
C corporation
91.16
96.24
99.35
98.10
90.29
95.96
97.69
97.30
92.84
8.23
6.%
2.30*
1.62
1.40
94.78
94.33
95.50
96.60
94.86
95.66
96.03
95.09
91.44
94.87
94.06
95.35
95.81
91.21
95.21
96.03
94.63
91.44
93.91
82.81
81.98
89.11
86.44
90.63
87.66
86.90
83.21
86.71
14.41
14.54
11.04
7.54*
6.03
12.70
15.12
11.81
11.26
10.60
12.97
8.24
7.21*
4.39
10.69
11.88
10.12
8.64
4.12
2.50*
2.81*
.33*
1.65*
2.13
3.94*
2.05
2.63*
93.62
85.58
84.57
95.41
93.96
95.98
94.85
94.68
94.66
92.60
94.21
91.74
94.20
91.74
84.41
88.66
86.10
10.97
14.34
14.35
9.64
1131
87.48
8.39
8.74
11.55
10.40
8.33
10.68
7.04
2.22*
3.10
4.18
1.30*
1.91*
1.42*
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79)
Professional services (80-89)
97.05
97.83
95.11
96.28
96.68
95.92
91.79
95.81
Years wuJer current ownership
0-4
5-9
10-14
15-19
20-24
25 or more
For notes, see end of table.
94.60
96.47
95.68
95.11
94.25
94.68
8.54
3.75
Financial Services Used by Small Businesses
657
A.4.—Continued
A.—Continued
Financial nstitution
Depository
Category
Any
supplier
Thrift
Any
Any
Census region of main office
Northeast
New England
Middle Atlantic
Commercial
bank
Any
Savings
institution
Credit
union
96.26
95.41
95.77
95.25
95.77
94.47
68.17
87.65
35.77
11.30
32.79
10.83
3.12*
.75*
95.36
94.95
95.15
93.71
94.49
93.71
84.72
88.13
12.73
8.89
9.17
5.18
3.98
3.71*
South
South Atlantic
East South Central
West South Central
95.34
96.5Q
92.75
94.77
95.76
90.99
94.76
95.76
90.32
90.14
89.98
85.47
7.54
4.42*
3.96
.96*
1.64*
1.97*
West
Mountain
Pacific
96.20
94.86
95.78
94.04
95.78
93.46
90.91
85.25
7.31
13.45
3.73*
10.41
3.58*
3.62
95.25
94.72
94.67
93.73
94.17
93.73
85.72
86.38
12.14
11.48
10.08
8.21
2.35
3.32
94.70
96.85
98.99
94.01
96.37
98.53
93.63
95.65
98.41
85.07
87.37
96.05
12.05
12.90
9.38
9.68
10.52
7.94
2.64
2.37*
1.49*
96.91
94.28
96.47
93.88
90.00
85.53
9.89
12.17
8.72
9.76
1.20*
2.66
94.72
97.57
94.13
96.45
93.70
96.24
84.77
92.16
12.85
7.09
10.31
6.03
2.81
1.09*
iiiiiiiiillillltiP
93.76
95.32
92.73
94.71
92.72
94.26
83.71
86.15
12.07
11.99
9.35
9.73
3.15
2.47
White
Black
Asian or Pacific Islander
American Indian or Native Alaskan
95.26
91.24
96.47
92.81
94.64
88.83
95.79
92.81
94.21
88.79
95.79
92.81
86.09
77.77
86.84
86.94
11.98
12.60
13.05
9.27*
9,72
8.96
11.37
3.60*
2.46
4.94*
1.68*
5.87*
Hispanic
Non-Hispanic
92.37
95.27
91.73
94.60
91.73
94.18
82.37
86.02
12.44
11.98
962
9.69
2.99*
2.53
Female
Male
Ownership equally divided by sex
93.83
95.37
97.30
92.91
94.78
96.66
92.44
94.37
96.66
82.64
86.61
88.80
13.72
11.53
11.25
10.31
9.56
8.80
3.84
2.16
2.48*
Midwest
East North Central
West North Central
utZizaHmatmain0^ce.
Number of offices
One
Two
Three or more
Export sales
Some
None
^^^^^^
y_
^' 97.17
94.98
8.49
6.06*
5.85
Owners' participation
Hired management
Race, ethnicity, and sex of majority owners
Nonwhite or Hispanic
658
A.4.
Federal Reserve Bulletin • July 1995
Percentage of small businesses that have liquid asset accounts at selected suppliers of financial services, by selected
category of firm, 1993—Continued
B. Nondepository financial institutions and nonfinancial suppliers
Nondepository financial institution
Other
Any
.00*
.19*
.21
.00*
M
.00*
.87
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.26*
.00*
.24*
.06*
.91*
.00*
.00*
.29*
.03*
.18*
.08*
.30*
1.65*
.61*
.00*
.00*
.00*
.00*
.00*
.13*
.00*
.29*
.03*
.18*
.08*
.30*
1.50*
.61*
.00*
.00*
.00*
.00*
.00*
.14*
.00*
1.10
.74*
.82*
.40*
.51*
1.26*
1.45*
1.22*
1.97*
2.39*
2.35
4.25
5.47
6.66
9.94
3.37
6.32
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.01*
.00*
.00*
.57*
.10*
.06*
.00*
.00*
2.22*
.37*
.00*
.33*
.01*
.05*
.00*
.16*
.68*
.42*
.80*
.00*
.00*
.00*
.00*
.00*
.00*
.03*
.00*
.00*
.00*
.37*
.00*
.33*
.01*
.05*
.00*
.16*
.68*
.42*
.65*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.16*
.01*
1.14*
.00*
.64*
1.52*
.00*
.79*
1.68*
1.36*
2.56*
.13*
.45*
.58*
.43*
.00*
.00*
.40*
1.42*
1.53*
2.10
2.50*
2.37*
6.39
5.95
3.94
8.18
7.57
9.31
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.16*
.01*
.00*
.26*
.12*
.11*
.00*
.00*
2.61*
.31*
.00*
.06*
.38*
.13*
.05*
.21*
1.24*
.66*
.00*
.00*
.00*
.00*
.00*
.00*
.07*
.00*
.00*
.31*
.00*
.06*
.38*
.13*
.05*
.21*
1.01*
.66*
.00*
.00*
.00*
.00*
00*
.00*
.00*
.23*
.00*
1.95
4.83
5.67
6.05
.18*
.06*
.83*
.23*
1.53
4.34
4.84
5.77
.00*
.00*
.00*
.00*
.23*
.44*
.00*
.19*
31*
.13*
.13*
.13*
.00*
.03*
.00*
.00*
.31*
.13*
.12*
.13*
.00*
.00*
.01*
.00*
.89
.78*
.73*
.98
2.88
.33*
2.29
.00*
.26*
.38*
.00*
.38*
.00*
.72*
.24*
.06*
Any
Finance
company
Brokerage
Leasing
company
4.07
31
3.61
0-1
2-4
5-9
10-19
20-49
50-99
100-499
2.84
3.13
5.46
6.07
7.75
5.98
15.89
.27*
.34*
.00*
.64*
.67*
.81*
1.09*
2.31
2.79
5.46
5.37
6.17
5.17
14.80
Sales
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
1.22*
1.97*
2.66*
2.60
5.03
5.79
7.12
10.27
4.64
10.34
.00*
.00*
.26*
.24*
.51*
.22*
.40*
.33*
1.26*
1.80*
Assets
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
2.22
2.96*
2.94
7.08
6.07
4.05
8.58
8.99
13.45
All firms
Nonfinancial supplier
Family
and
individuals
Other
businesses
Government
Unknown
Number offull-time-
Organizational form
Proprietorship
Partnership
S corporation
C corporation
Standard industrial
classification
Construction and mining
(10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation ( 4 0 - 4 9 ) . . .
Wholesale trade (50-51) .
Retail trade (52-59)
Insurance agents and
real estate (60-69) ..
Business services
(70-79)
Professional services
(80-89)
Years under current
ownersrup
0-4
5-9
10-14
15-19
20-24
25 or more
MN
S!
.26*
.00*
.32*
.73*
.07*
.21*
.04*
.35*
.34*
3.43
.28*
3.15*
.00*
.00*
.18*
.07*
1.55*
4.00
8.31*
6.26
1.85
.76*
1.01*
.38*
.35
3.24
5.99*
5.76
130
.00*
.00*
.00*
.00*
.00*
1.32*
.13*
.00*
.23*
.08*
.07*
.35*
.00*
.00*
.01*
.00*
.23*
.08*
.07*
.35*
.00*
.00*
.00*
.00*
1.60*
.30*
.76*
.59*
4.94
.77*
3.67
.00*
.50*
.00*
.00*
.00*
.00*
1.34*
2.77
.00*
2.77
.00*
.00*
.08*
.00*
.08*
.00*
.34*
7.78
.21*
7.36
.00*
.45*
.21*
.00*
.21*
.00*
1.69*
2.02
3.70
4.04
5.08
5.05
5.33
.22*
.20*
.03*
.67*
.84*
.31*
1.80*
3.23
3.63
4.34
4.21
5.02
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.27*
.37*
.07*
.00*
.26*
.30*
.12*
.30*
.28*
.14*
.11*
.00*
.01*
.00*
.00*
.00*
.00*
.30*
.12*
.30*
.28*
.11*
.11*
.00*
.00*
.00*
.00*
.03*
.00*
.70*
.88*
.79*
.82*
.87*
1.20*
Financial Services Used by Small Businesses
659
A.4.—Continued
B.—Continued
Nonfinancial supplier
Nondepository financial institution
Category
Any
Finance
company
Brokerage
Leasing
company
Census region
qf main office
Northeast
Other
Any
Family
and
individuals
Other
businesses
Government
Unknown
2,39*
4.21
.00*
.18*
2.39*
3.80
.00*
.00*
.00*
.23*
.72*
.03*
.03*
.00*
.72*
.02*
.00*
.02*
1.04*
.44*
Midwest
East North Central . . . .
West North Central . . . .
5.33
4.38
.48*
.54*
4.43
3.84
.00*
.00*
: .42*
.00*
.06*
.11*
.00*
.00*
.06*
.11*
.00*
.00*
.71*
1.19*
South
South Atlantic
East South Central . . . .
West South Central . . . .
3.15
3.33*
4.54
.08*
.04*
1.07*
3.07
3.07*
3.12
.00*
.00*
.00*
.00*
1.11*
.35*
.04*
.00*
.59*
.00*
.00*
.00*
.04*
.00*
.59*
.00*
.00*
.00*
.62*
.73*
1.50*
3.68
4.15
.04*
.22*
3.55*
3.94
.00*
.00*
.08*
.00*
.07*
.35*
.00*
.00*
.07*
.35*
.00*
.00*
1.16*
.97*
Rural
4.51
2.42
.35
.19*
3.97
2.23
.00*
.00*
.24*
.00*
.19
.28*
.00*
.00*
.18
.28*
.00*
.00*
.84
.99*
Number of offices
One
Two
Three or more
3.71
5.28
7.78
.35
.09*
.18*
3.19
5.19
7.39
.00*
.00*
.00*
.22*
.00* i
.20*
.22
.00*
.35*
.00*
.00*
.00*
.22
.00*
35*
.00*
.00*
.00*
.89
.88*
.54*
5.72
3.94
.09*
.33
5.64
3.44
.00*
.00*
.00*
.21*
.21*
.21
.00*
.00*
.21*
.20
.00*
.00*
.61*
.89
3.91
5.03
.33
.22*
3.40
4.81
.00*
.00*
.18*
.26*
.23
.09*
.00*
.00*
.22
.09*
.00*
.00*
.73
1.67
1.51
4.42
.11*
.34
1.40
3.90
.00*
.00*
.01*
.22*
.21*
.21
.00*
.00*
.21*
.20
.00*
.00*
1.57*
.78
4.31
.32*
1.61*
.33
.07*
.22*
3.81
.24*
1.39*
.00*
.00*
,00*
.21*
.03*
.00*
.21
.02*
.43*
.00*
.02*
.00*
.21
.02*
.43*
.00*
.00*
.00*
.77
4.88*
.25*
3.59*
.00*
3.59*
.00*
.00*
.00*
.00*
.00*
.00*
.00*
.23*
.20
.00*
.00*
.65*
.88
Middle Atlantic
West
Urbanization
at main office
Export sales
Owners' participation
Owner management
Hired management
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic . . . .
White
Black
Asian or Pacific Islander .
American Indian
or Native Alaskan . . .
Hispanic
Non-Hispanic
Male
Ownership equally
divided by sex
1.58*
4.19
.06*
.33
3.70
.00*
.00*
.20*
.23*
.21
.00*
.00*
2.61
4.47
.10*
.36
2.35
3.94
.00*
.00*
.16*
.22*
.23*
.20
.00*
.00*
23*
.20
.00*
.00*
.97
.87
4.73
.54*
4.19*
.00*
.00*
.16*
.01*
.16*
.00*
.48*
1.52*
.00*
NOTE. * Number of respondents was less than fifteen, too small to calculate a reliable statistic.
660
Federal Reserve Bulletin • July 1995
A.5.
Percentage of small businesses that obtain credit lines, loans, and leases from selected suppliers, by selected category
of firm, 1993
A. Any supplier, any financial insitution, and depository institutions
Financial institution
Depository
Any
supplier
Category
Thrift
Any
Any
Commercial
bank
Any
Savings
institution
Credit
union
All firms
55.48
49.86
41.09
36.97
6.21
3.88
2.34
Number of full-time-equivalent employees
0-1
2-4
5-9
10-19
20-49
50-99
100-499
41.87
54.51
67.04
75.89
77.83
86.16
88.46
35.45
48.60
61.47
71.53
75.71
84.18
86.19
28.98
39.48
50.67
57.04
68.33
69.49
79.29
25.10
34.93
45.29
54.07
65.59
67.65
77.20
5.27
7.26
4.36
3.13
3.43
5.71
4.80
5.23
3.00
3.74
2.16
3.83
1.96
.42*
.21*
.96*
.80*
26.33
41.52
47.60
58.03
62.86
71.39
73.13
80.22
83.83
90.11
21.50
34.00
41.99
51.54
57.43
65.75
68.69
77.32
81.79
87.04
16.85
25.69
33.83
41.79
46.55
55.86
58.12
70.16
78.12
74.53
13.84
22.09
27.73
36.79
41.45
52.37
55.59
65.68
77.62
71.31
3.62
5.45
7.67
7.84
6.98
6.66
4.33
7.26
4.66
4.02*
2.17*
2.55*
3.87*
4.00
5.05
4.90
3.78
6.65
4.19*
4.02*
250-499
500-999
1,000-2,499
2 500-4 999
5,000 or more
38.02
55.78
59.23
66.93
73.66
73.55
84.90
84.56
90.24
31.20
51.74
51.26
61.74
67.24
70.28
81.86
82.88
85.99
23.89
39.60
40.21
53.66
58.27
60.61
75.13
4.58
7.07
7.08
7.30
4.66
70.41
71.91
20.18
34.55
35.50
49.44
55.56
55.66
69.02
67.99
66.25
2.40
4.61
4.79
4.82
2.66*
6.80
8.56
2.71*
7.16*
Organizational form
Proprietorship
Partnership
S corporation
C corporation
46.01
56.53
64.73
63.54
39.76
51.78
59.38
58.45
32.23
45.64
49.63
47.66
27.09
41.90
46.22
44.51
7.11
6.33
5.97
4.92
3.77
5.00*
3.65
3.88
3.37
1.32*
2.32
1.05
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79)
Professional services (80-89)
60.86
63.16
63.11
68.01
59.16
57.02
52.14
47.35
53.57
56.90
56.09
58.06
64.49
54.11
51.14
47.02
39.83
48.73
46.76
47.12
49.92
52.59
47.68
42.14
41.09
31.22
39.26
39.54
41.48
44.05
48.78
45.12
38.26
34.99
27.86
37.22
9.27
9.05
9.46
6.83*
3.48
6.18
8.13
5.18
3.95
5.91
6.34
8.36
2.82*
2.65*
3.77
5.31
3.32
1.54*
3.3?
57.54
58.75
58.63
54.09
52.67
46.45
49.89
52.08
53.68
50.00
48.16
41.79
40.50
41.62
44.49
40.98
41.25
36.43
36.63
37.01
38.99
37.83
36.82
33.92
Sales (thousands of dollars)
i<essthan25
| | | 25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
Assets (thousands of dollars)
Less than 25
25-49
50-99
100-249 ..
,..,..,....
..
7.67
5,22
5.39
3.96
7.70
9.21
3.33*
7.16*
1.45*
3.00*
3.80
3.84
1.93*
1,76*
.55*
.69*
.47*
.00*
2.18
2.47*
2.29*
2.48*
2.03*
.90*
.65*
.63*
.00*
2.78*
1.12*
4-01*
,84*
2.41
2.81*
1.90
2.43
:18t®88il8S8SIgBMi
Years under current ownership
0-4
5-9
10-14
15-19
20-24
25 or more
For notes, see end of table.
6.64
. 6.79
8.29
5.05
5.70
3.46
3.21
4.55
4.98
3.23
4.17
2.38
3.44
2.28
3.32
1.84
1.53*
1.08*
Financial Services Used by Small Businesses
661
A.5.—Continued
A.—Continued
Financial institution
•
•
•
Category
•
Depository
Any
supplier
Thrift
Any
Any
Commerical
bank
Any
Savings
institution
Credit
union
-
Census region of main office
Middle Atlantic
sagsisaspsliaits
51.76
54.78
45.41
48.74
35.21
36.76
26.38
32.26
10.19
7.10
9.17
4.48
1.06*
2.62
Midwest
East North Central
West North Central
51.78
64.14
46.94
56.97
41.06
52.14
llll11111
37.56
48.14
5.54
6.88
3.54
4.16*
2.01*
Z72*
South
South Atlantic
East South Central
West South Central
57.67
65.11
53.33
52.03
62.49
49.17
43.35
56.64
40.08
41,11
52.37
37.90
4.15
6.17
3.74
3.45
3.50*
1.16*
.76*
2.68*
2.57
West
Mountain
Pacific
61.84
51.95
53.72
46.24
46.56
35.36
43.37
29.87
7.15
6.94
1.77*
4.14
5.39
2.81
54.41
59.49
48.51
54.91
38.84
49.54
34.58
45.91
6.37
5.58
4.07
3.17
2.32
2.41
52.95
63.75
81.33
47.06
59.97
76.43
38.66
49.20
65.62
34.52
44.20
63.41
6.16
7.39
4.61
3.71
5.84
2.67
2.46
1.55*
1.99*
63.01
54.88
55.55
49.40
46.79
40.64
43.51
36.44
5.86
6.23
5.12
3.78
.77*
2.47
54.53
60.%
49.06
54.47
40.43
44.92
36.06
42.21
6.63
3.76
4.16
2.22
2.47
1J»
47.10
56.61
40.48
51.12
30.72
42.49
26.70
38.35
5.17
6.35
2.34
4.08
2.92
2.26
51.16
33.04
35.94
36.92
423?
24.69
26.96
28.86*
38.22
24.17
28.66*
6.29
6.78
3.48*
5.94*
4.05
3.27*
1.33*
.20*
2.26
3.54
2.15*
5.94*
Northeast
Urbanization at main office
ffffffgiii
Rural
Number of offices
One
Two
Export sales
Owners' participation
Owner management
Race, ethnicity, and sex of majority O ners
H
Non-Hispanic white
White
Black
American Indian or Native Alaskan ..
56,65
38.55
44.12
45.14
Hispanic
Non-Hispanic
54.64
55.52
49.40
49.88
38.32
41.22
32.98
37,15
6.23
6.21
2.85*
3.92
3.56
2.29
Female
Male...
Ownership equally divided by sex ...
51.12
44.73
50.70
59.09
34.93
42.34
49.24
31.59
37.78
47.56
4,74
6.62
6.63
2.08
4.34
4.94*
2.71
2.28
1.69*
56.27
62.46
.
18.31
662
A.5.
Federal Reserve Bulletin • July 1995
Percentage of small businesses that obtain credit lines, loans, and leases from selected suppliers, by selected category
of firm, 1993—Continued
B. Nondepository financial institutions and nonfinancial suppliers
Nondepository financial institution
Category
Nonfinancial supplier
Family
Other
and
businesses
individuals
Any
Finance
company
Brokerage
Leasing
company
Other
Any
All firms
19.02
11.75
.25
7.50
.94
13.77
7.99
6.19
.53
Number of full-timeequivalent employees
0-1
2-4
5-9
10-19
20-49
50-99
100-499
11.58
17.04
2434
36.69
31.29
39.48
36.94
7.19
10.68
15.02
22.71
18.25
25.06
22.15
.20*
.12*
20*
.98*
.23*
.49*
.44*
332
6.52
10.20
15.71
14.70
19.72
20.67
1.36
.65*
.39*
1.10*
.61*
.77*
1.96
10.66
14.97
15.83
19.30
15.01
13.74
16.12
7.21
8.40
8.72
11.55
5.26
3.70
7.46
4.02
6.98
7.25
7.78
10.00
9.39
11.26
.20*
.75*
.54*
.48*
1.08*
1.68*
1.75
8.40
11.34
12.25
17.88
24.20
27.11
27.59
34.44
30.51
36.10
5.73
6.76
8.35
10.48
14.71
17.74
15.23
23.62
21.00
25.93
.07*
.01*
.00*
.17*
.58*
.00*
.84*
.00*
.53*
1.35*
1.82*
2.94*
3.91
7.24
9.30
12.42
12.47
15.65
10.54
16.21
.79*
2.02*
.92*
.70*
1.37*
.32*
.56*
.47*
1.32*
1.81
8.31
13.88
15.00
15.17
13.28
19.68
14.78
16.68
11.70
2131
4.80
9.52
9.45
8.74
8.67
11.73
8.64
5.51
4.18
10.04
3.40
5.30
5.43
7.28
5.13
8.73
5.93
11.25
7.01
15.90
.55*
.48*
.74*
.48*
.87*
.14*
.31*
.25*
1.80*
1.33*
t
(
11.32
21.16
21.23
21.98
23.37
30.54
30.36
41.01
40.27
3.18
6.57
11.81
9.13
10.09
12.42
11.97
18.11
12.98
13.28
13.42
24.62
25.75
7.90
6.79
16.29
16.08
.11*
.01*
.43*
.40*
4.52
6.44
9.97
10.75
16.49
.31*
17.61
.18*
23.05
32.17
18.61
17.16
13.09
24.59
12.94
12.07
.35*
1.23*
.17*
.06*
10.25
939
7.48
5.64
16.41
6.18
.97*
5.63
16.10
8.58
.20*
7.75
.36*
20.08
(
.00*
.01*
.01*
.27*
.46*
1.09*
.00*
4.64*
3.33*
29.00
1
8.04
14.95
10.85
13.62
12.44
19.63
19.89
28.56
22.52
20.34
1
1
Standard industrial
classification
Construction and mining
(10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation ( 4 0 - 4 9 ) . . .
Wholesale trade (50-51) .
Retail trade (52-59)
Insurance agents and
real estate (60-69) ..
Business services
(70-79)
Professional services
(80-89)
Unknown
137
,95
1.12*
1.65*
1.81*
2.95*
2.29
533
mmmmzmsmm-
.02*
.00*
1.12*
.84*
1.40*
2.07*
2.96*
4.07*
3.45*
1.30*
f l p f g p
Assets
(thousands of dollars)
Less than 25
25-49
..
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
Years under current
ownership
0-4
5-9
10-14
15-19
20-24
25 or more
ment
u$«mSUBS
Sales
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
Organizational form
Proprietorship
Partnership
S corporation
C corporation
Govern-
9.57
.05*
11.24
20.74
21.61
20.32
17.25
17.02
13.80
13.27
12.62
12.16
11.73
11.83
8.07
.02*
.57*
.21*
.13*
.16*
.10*
7.87
8.75
8.54
6.25
6.10
5.56
31*
1.14*
1.12*
.63*
1.48*
.21*
1.59*
2.97*
7.83
11.51
14.47
17.03
17.75
19.20
14.69
15.73
12,27
20.69
* 727
8.44
10.23
11.00
11.35
8.75
6.10
5.40*
10.10
4.88
6.53
7.28
734
8.49
5.65
10.29
6.44
12.75
36*
.63*
.24*
.69*
.93*
.67*
1.17*
1.16*
1.92*
.44*
.81*
.33*
1.60*
2.95*
1.78*
.55*
1.16*
1.16*
1.47
1.07*
.70
.23
12.16
14.27
15.75
14.76
7.13
6.71
8.29
9.49
5.65
7.18
7.63
5.72
.30*
1.18*
.73
.55
.85
2.12*
1.54
1.83
4.32
.53*
12.32
8.88
3.77
.45*
1.43*
11.35
1.15*
19.83
9.48
12.09
1.35*
.12*
.74*
.07*
.19*
.58*
13.72
15.78
17.90
14.32
6.83
8.71*
10.17
8.94
5.24
7.07
8.59
6.09
2.17
.02*
.87*
30*
2.53*
3.78*
10.64
8.11
3.38
.72*
13.69
7.23
6.42
.33*
1.10*
11.97
5.64
6.81
.14*
.83*
.80*
1.08
1.08*
.55*
.82*
1.08
20.00
16.11
13.18
11.91
9.75
8.12
13.08
9.37
7.98
5.75
5.18
4.11
8.48
6.97
5.43
6.62
4.06
4.25
1.06*
35
.14*
.25*
.91*
.49
1.73*
1.84
1.09
.96*
.58*
-
5.35
2.77*
.95
2.37*
NPMK
.98
133
Financial Services Used by Small Businesses
663
A.5.—Continued
B.—Continued
Nonfinancial supplier
Nondepository financial institution
Category
Leasing
company
Any
Family
and
individuals
Other
businesses
Government
Any
Finance
company
19.45
22.38
15.95
12.88
.01*
.33*
3.46
10.19
.60*
.39*
14.82
11.54
10.15
6.38
4.39
5.70
.87*
.31*
1.05*
1.98
Midwest
East North Central . . . .
West North Central . . . .
16.27
13.53
10.96
9.19
.03*
.00*
5.28
4.14
.66*
1.09*
10.96
18.83
6.15
10.40
5.21
9.60
.11*
1.27*
1.10*
.34*
South
South Atlantic
East South Central . . . .
West South Central . . . .
20.05
17.25
18.23
13.56
8.51
11.69
.12*
.04*
.48*
7.24
8.96
6.31
.82*
.00*
.40*
12.71
13.58
10.41
6.66
8.36
5.24
6.27
5.90
5.66
.92*
.14*
.60*
1.75
.93*
1.78*
18.74
20.99
9.59
11.08
.75*
.44*
8.62
10.38
2.19*
1.93
21.07
15.94
14.06
9.63
6.82
6.73
1.24*
.12*
.70*
1.43
20.49
13.48
12.35
9.52
.27
.17*
8.41
4.10
1.07
.44*
13.59
14.46
7.73
8.93
6.31
5.72
.49
.68*
1.52
.77
17.59
23.82
33.27
10.94
15.79
17.28
.21
.49*
.39*
6.63
9.95
17.22
.85
.92*
2.47
13.34
14.75
19.07
7.86
8.33
9.42
5.83
7.04
10.47
.58
.10*
.61*
1.19
2.07
2.91
23.38
18.67
13.70
11.60
.12*
.26
10.84
7.23
.16*
1.00
18.61
13.38
10.00
7.82
8.87
5.97
1.43
.46
2.30
1.29
18.50
22.02
11.54
13.02
.28
.06*
7.04
10.13
.94
.89
13.79
13.67
8.29
6.20
6.01
7.22
.44
1,05
1.14
2.66
17.24
19.26
11.42
11.80
.49*
.21
6.44
7.64
.72*
.97
14.20
13.71
8.04
7.98
6.08
6.20
.75
.50
2.01
1.28
19.45
13.61
14.45
11.96
10.62
8.71
.22
1.10*
.00*
7.67
3.48
6.66
.93
1.63*
.66*
13.75
13.63
16.09
7.98
6.57
9.23
6.22
6.57
7.23
.50
1.89*
.26*
1.28
1.72*
1.84*
.71*
7.86*
.00*
.00*
5.26*
.83*
.94
Brokerage
Census region
of main office
Northeast
West
Mountain
Urbanization
at main office
Rural
Number of offices
One
Two
Export sales
Some
Owners' participation
Owner management
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic —
Non-Hispanic white
White
Black
Asian or Pacific Islander .
American Indian
or Native Alaskan . . .
14.44*
8.35*
22.47
18.86
Male
Ownership equally
divided by sex
14.93
11.61
.32*
.24
7.62
7.49
17.91
19.03
10.59
11.92
.22*
.23
6.92
7.46
23.26
14.16
.58*
10.26
Other
1.23
.88
.53*
NOTE. * Number of respondents was less than fifteen, too small to calculate a reliable statistic.
8.87*
8.87*
.00*
Unknown
14.55
13.74
7.78
7.99
6.66
6.17
.58*
.53
1.42*
1.36
14.65
13.28
9.77
7.21
5.26
6.52
.88*
.45
1.02*
1.51
16.60
10.88
5.52
.23*
.89*
664
A.6.
Federal Reserve Bulletin • July 1995
Percentage of small businesses that obtain financial management services from selected suppliers, by selected
category of firm, 1993
A. Any supplier, any financial insitution, and depository institutions
Financial institution
Depository
Any
supplier
Category
Thrift
Any
Any
Afi firms
Commercial
bank
Any
Savings
institution
Credit
union
35.11
33.80
27.85
25.94
2.65
2.20
.46
23.83
34.85
42.16
49.05
57.40
67.32
75-55
22.94
33.86
40.34
46.47
55.76
63.01
73.82
17.76
28.91
33.15
38.16
47.49
52.50
67.24
15.94
26.84
31.07
35.53
47.07
50.95
66.71
2.20
2.95
3.09
3.78*
1.60*
2.23
1.59*
1.81
1.96
3.04
3.78*
1.60*
2.13*
132*
.39*
.98*
.05*
.00*
.00*
.10*
.58*
Sales (thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
15.91
21.05
26.02
33.60
43.84
44.50
48.49
55.89
71.38
86.44
14.65
20.83
23.97
33.08
42.16
43.39
46.89
51.76
68.45
83.40
12.28
16.12
18.35
28.27
35.90
32.99
38.76
37.35 .
60.19
77.56
11.52
14.66
15.62
25.44
33.58
31.70
36.62
35.44
59.94
76.64
.79*
1.47*
3.04*
3.89
4.39
1.42*
2.38*
2.40*
1.46*
2.51*
.71*
1.05*
1,93*
3.22
3.84
1.42*
2.37*
2.34*
1.46*
2.30*
.07*
.42*
1.11*
.67*
,55*
.00*
.01*
.05*
.11*
.21*
Assets (thousands of dollars)
Less than 25
25-49
50-99
100-249
250499
500-999
1,000-2,499
2,500-4,999
5,000 or more
23.43
34.87
36.22
44.87
42.22
47.81
56.91
81.13
68.54
22.82
34.06
34.27
42.80
41.53
45.89
54.97
77.83
67,87
17.93
28.58
28,20
34.84
34.41
38.38
45.09
62.73
59.44
16.19
25.09
26.58
32.71
31.98
36.21
43.57
59.99
59.33
2.16
4.48*
2.90*
2.81
2.56*
3.15*
3.36*
4.33*
1.46*
1.73
4.16*
2.28*
2.05
1.98*
3.15*
3.31*
4.19*
1.32*
.43*
.32*
J&1*
.76*
.60*
.00*
.05*
.14*
.14*
Organizational form
Proprietorship
Partnership
S corporation
C corporation
26.25
36.04
40.42
44.99
25.70
34.41
38.88
42.73
21.21
28.41
31.99
35.17
18.78
27.48
30.43
33.56
3.11
2.47*
2.32
2.22
2.52
2.47*
1.74
1.93
.60*
.00*
.57*
.29*
Standard industrial classification
Construction and mining (10-19)
Primary manufacturing (20-29)
Other manufacturing (30-39)
Transportation (40-49)
Wholesale trade (50-51)
Retail trade (52-59)
Insurance agents and real estate (60-69)
Business services (70-79)
Professional services (80-89)
19.38
26.43
34.97
38.57
37.82
45.73
33.09
27.19
45.57
18.51
25.24
34.37
36.36
37.48
43.77
30.72
26.64
43.67
14.70
21.68
28.74
29.64
30.11
39.40
22.63
22.89
32.01
13.37
19.81
26.38
29.56
29.21
37.05
20.15
20.75
30.09
1.43*
1.91*
3.10*
.08*
1.74*
4.23
2.59*
2.49
2.71
1.19*
1.87*
3.10*
.08*
1.26*
3.31
2.59*
2.29
1.91
.24*
.10*
.00*
.00*
.48*
.93*
.00*
.20*
.80*
Years under current ownership
0-4
5-9
10-14
15-19
20-24
25 or more
34.03
35.12
37.84
33.71
35.22
34.03
33.02
33.94
36.46
31.76
33.88
32.86
29.30
27.47
30.04
26.15
26.70
26.59
27.71
25.22
27.29
24.89
24.60
25.56
2.17
3.23
3.96
1.58*
2.72
1.40
1.76
3.03
3.01
1.33*
1.79*
1.17*
.41*
.20*
.96*
.25*
.93*
.24*
Number offull-time-equivalent
0-1
2-4
5-9
10-19
20-49
50-99
100-499
For notes, see end of table.
employees
•
S§
1
Financial Services Used by Small Businesses
665
A.6.—Continued
A.—Continued
Financial nstitution
Depository
Category
Any
supplier
Thrift
Any
Any
Commercial
bank
Any
Savings
Credit
union
New England . . .
Middle Atlantic
33.36
36.54
31.44
35.54
26.72
28.02
18.61
27.21
10.38
1.46*
9.35
1.45*
1.03*
.01*
Midwest
East North Central
West North Central
37.77
34.95
36.28
34.11
30.72
28.05
29.06
25.96
2.92
2.26*
2.53
1.85*
.39*
.41*
South
South Atlantic . . . .
East South Central
West South Central
37.73
32.16
30.05
35.04
32.16
29.44
27.61
27,75
24.35
26.00
25.60
24.31
1.97
2.15*
.76*
1.71
2.15*
.42*
.26*
.00+
.34*
West
Mo
Pacific
37.75
32.86
36 28
3190
33.34
25.89
31.50
24.07
1.89*
2.59
.65*
1.84
1.27*
.76*
Urbanization at main office
Urban
Rural
35.00
35.51
33-51
34.86
27.27
30.02
25.41
27.95
2.41
3.52
2.04
2.77
.38
.75*
Two
Three or more . . .
32.43
45.72
58.76
31.27
43.54
56.51
25.56
35.71
50.43
23.79
31.98
49.92
235
5.61
1.67
1.83
5,53
1.57
.52
.07*
.18*
Export sales
Some
None
51.78
33.78
50.70
32.44
43.30
26.61
39.96
24.82
4.90
2.47
4.78*
1.99
.15*
.48
Owners' participation
Owner management ..
Hired management....
32.98
47.44
31.95
44.47
26.09
38.01
24 05
36.85
ita
2.81
1.68
242
.91
.40
.80*
Race, etknm
Nonwhite or Hispanic
Non-Hispanic white
25.64
36.39
24.46
35.06
22.32
28.59
20.01
26.74
2.63
2.65
2.42
2.17
.23*
.49
White
Black
Asian or Pacific Islander
American Indian or Native Alaskan . . .
35.74
26.66
31.72
20.09*
34.44
24.07
30.61
20.09*
28.14
23.88
26.83
19.53*
26.33
19.95
23.54
19 33*
2.57
4.85*
3.50*
.20*
2.09
4.82*
3.25*
.20*
.48
.03*
.25*
.20*
Hispanic
Non-Hispanic ..
20.13
35.80
19.72
34.44
17.24
28.33
15.61
26.41
1.64*
2.69
1.29*
2.24
.34*
.46
Male
Ownership equally divided by sex
33.03
35.49
38.34
31.35
34..""3
37.76
27.13
27.68
32.75
24.93
25.88
30.67
3.29
2.49
2.16*
2.70
2.09
1.57*
.60*
.40
.59*
Number of offices
One
666
Federal Reserve Bulletin • July 1995
A.6.
Percentage of small businesses that obtain financial management services from selected suppliers, by selected
category of firm, 1993—Continued
B. Nondepository financial institutions and nonfinancial suppliers
Nondepository financial institution
Category
Any
Finance
company
I
Brokerage
Leasing
company
Other
Nonfinancial supplier
Any
Family
and
individuals
Other
businesses
Government
Unknown
All firms
10.87
1.49
7.40
.13*
2.48
2.29
.35
2.00
.01*
.54
Number offull-timeequivalent employees
0-1
2-4
5-9
10-19
20-49
50-99
100-499
6.85
9.32
12.18
18.93
22.97
28.97
29.37
.68*
1.18
1.70*
3.65*
2.51
6.11
7.05
4.86
6.38
8.99
11.99
15.74
16.37
14.31
.01*
.25*
.00*
.41*
.20*
.60*
.27*
1.46
1.92
2.86
4.19
5.18
8.23
12.65
.97
2.06
3.04
3.69
5.44
10.22
6.09
.06*
.39*
.47*
1.13*
.39*
.84*
.91*
.94
1.83
2.57
236*
5.05
9.25
5.74
.00*
.00*
.00*
.00*
.13*
.14*
.27*
.60*
.09*
.53*
1.11*
.33*
1.51*
5.02*
Sales
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000-9,999
10,000 or more
3.90
4.73
6.33
8.68
12.37
14.56
17.49
28.21
30.92
43.48
.49*
.00*
1.05*
1.43*
1.76*
2.50*
1.71*
3.05
3.27
10.52
3.31*
4.07*
4.93
5.48
8.51
9.04
12.11
19.86
21.25
26.36
.00*
.00*
.00*
.21*
.00*
.03*
.56*
.00*
.13*
.09*
.11*
.66*
.36*
2.10*
2.81*
4.20
3.85
6.67
6.59
12.93
1.24*
.11*
2.45*
1.98*
2.07*
2.64
3.19
4.81
7.67
9.97
.30*
.00*
.61*
.41*
.00*
.18*
.00*
.69*
1.70*
2.61*
.94*
.11*
1.84*
1.80*
2.07*
2.55
3.16
4.12
6.65
7.24
.00*
.00*
.00*
.00*
.00*
.07*
.02*
.00*
.15*
.11*
.64*
.12*
.00*
.30*
.90*
.19*
.50*
1.85*
.42*
5.74*
Assets
(thousands of dollars)
Less than 25
25-49
50-99
100-249
250-499
500-999
1,000-2,499
2,500-4,999
5,000 or more
6.71
9.32
8.84
14.40
13.37
13.11
25.59
41.38
40.49
.78*
2.35*
.64*
2.50*
1.17*
1.68*
1.27*
8.18*
7.12
5.56
5.77
5.42
10.28
9.33
7.87
18.57
20.48
29.65
.00*
.00*
.17*
.25*
.00*
.06*
.00*
.19*
.11*
.53*
1.21*
2.77*
2.39*
3.82
4.72
6.41
14.11
10.05
.78*
1.98*
4.13
2.88
2.17
3.38*
4.00
10.59
8.01
.11*
.01*
.78*
.30*
.03*
.46*
.43*
3.98*
.85*
.67*
1.98*
3.35*
2.65
2.14
2.92*
3.65
6.39*
7.79
.00*
.00*
.06*
.00*
.00*
.00*
.00*
.22*
.13*
.15*
.38*
.26*
.50*
.33*
.05*
.73*
.60*
3.97*
Organizational form
Proprietorship
Partnership
S corporation
C corporation
6.78
11.84
12.53
15.84
.62*
1.20*
2.12
2.51
4.83
8.76
7.52
10.94
.10*
.37*
.17*
.09*
1.33
1.87*
4.02
3.40
1.30
2.41*
3.02
3.30
.26*
.00*
.67*
.37*
1.14
2.41*
2.40
2.96
.00*
.00*
.01*
.04*
.16*
.02*
.27*
1.47
Standard industrial
classification
Construction and mining
(10-19)
Primary manufacturing
(20-29)
Other manufacturing
(30-39)
Transportation ( 4 0 - 4 9 ) . . .
Wholesale trade (50-51) .
Retail trade (52-59)
Insurance agents and
real estate (60-69) ..
Business services
(70-79)
Professional services
(80-89)
Years under current
ownership
0-4
5-9
10-14
15-19
20-24
25 or more
5.16
.61*
3.04
.07*
1.56
1.02*
.00*
1.02*
.00*
.01*
9.72
1.91*
5.53
.25*
3.04
1.70*
.21*
1.49*
.00*
.34*
12.19
12.10
15.07
10.26
.43*
1.33*
1.81*
3.49
8.58
921
9.91
3.81
.00*
.07*
.75*
.05*
3.75
2.84*
3.11
3.94
1.30
4.87
1.08
4.47
.29*
.09*
.17*
.65*
1.16*
4.78*
.91
4.03
.06*
.00*
.00*
.01*
.21*
1.75*
.18*
.92*
12.99
.29*
10.58
.00*
2.72*
2.24*
.47*
1.78*
.09*
1.26*
5.83
.87*
3.85
.16*
1.63
1.00
.21*
.83
.01*
.02*
19.94
.94*
17.82
.02*
1.51
2.71
.56*
2.17
.00*
.96*
8.51
9.96
12.04
10.95
11.79
12.85
1.75
1.97
1.29
1.18*
1.17*
1.12
4.84
6.49
9.04
7.66
8.60
8.65
.30*
.27*
.05*
.00*
.00*
.01*
2.30
1.73
2.39
2.55
2.62
4.02
3.40
1.86
2.54
2.39
2.59
1.35
1.16*
.20*
.11*
.02*
.90*
.10*
2.61
1.70
2.43
2.37
1.68
1.23
.00*
.00*
.03*
.00*
.05*
.01*
.56*
.17*
.66*
1.02*
.13*
.82*
Financial Services Used by Small Businesses
667
A.6.—Continued
B.—Continued
Nonfinancial supplier
Nondepository financial institution
Category
Government
.03*
.39*
4.46
1.55
.03*
.00*
.10*
.73*
1.82
1.78
.02*
.56*
1.80
1.22*
.01*
.00*
.87*
1.04*
2.89
1.69*
2.40
3.77
1.36*
1.24*
.56*
.00*
.08*
3.21
1.36*
1.24*
.04*
.00*
.00*
.67*
.06*
.03*
.48*
.30*
1.03*
1.83
1.80*
2.43
.86*
.54*
1.12*
1.87
.00*
.01*
.80*
.24*
8.29
4.07
.13*
.13*
2.45
25 9
2.51
1.49
.41
.12*
2.16
1.42
.02*
.00*
.56
.45*
1.24
3.05
2.65
6.89
9.28
12.26
.10*
.00*
.94*
2.19
3.44
5.53
1.95
3.23
6.14
.19*
.80*
2.15*
1.82
2.43
4.19
.00*
.00*
.20*
.40
.95*
2.00
19.43
10.19
1.93
1.46
13.55
6.91
.08*
.14*
5.34
2.25
2.00
2.32
.16*
.37
1.79
2.02
.06*
.01*
1.21*
.49
10.08
15.47
1.41
2.01
6.90
10.30
.10*
.29*
2.16
4.38
2.01
3.93
.31
.60*
1.76
3.44
.01*
.03*
.41
1.32*
4.95
11.67
.36*
1.65
2.49
8.07
.37*
.10*
2.02
2.55
1.78
2.36
.13*
.38
1.65
2.05
.05*
.01*
.45*
.55
11.37
3.62
8.05
1.58
.19*
1.04*
7.79
2.04
4.80
.14*
.00*
.00*
2.52
1.39*
3.20*
2.33
1.32
2.94*
.38
.02*
.00*
2.02
1.31*
2.94*
.01*
.00*
.00*
.54
1.39*
.00*
.00*
.56*
.00*
.00*
.00*
.00*
.00*
.15*
.01*
.20*
.56
Finance
company
Brokerage
Census region
of main office
Northeast
New England
Middle Atlantic
9.86
13.54
2.58*
.85*
5.85
10.49
Midwest
East North Central . . . .
West North Central....
10.32
10.43
.86
.77*
South
South Atlantic
East South Central —
West South Central . . . .
12.74
6.42
8.49
Leasing
company
Other
Any
.00*
.00*
2.68*
3.38
4.51
1.63
7.08
7.40
.01*
.00*
2.76
2.34
1.49
1.75*
2.80
8.66
4.27
4.38
.32*
.05*
.00*
8.57
11.32
.70*
1.99
6.43
7.40
11.73
7.67
1.58
1.16
9.96
14.00
19.92
West
Urbanization
at main office
Rural
,.»..,.
Number of offices
One
Two
Export sales
None
Owners' participation
Owner management
Race, ethnicity, and sex
of majority owners
Nonwhite or Hispanic . . . .
Non-Hispanic white
White
Black
Asian or Pacific Islander .
American Indian
or Native Alaskan . . .
Family
and
individuals
Other
businesses
Any
.56*
.00*
.00*
Unknown
4.14
11.18
Female
Miale.......
Ownership equally
divided by sex
____________
.00*
1.56
1.41*
7.68
1.00*
.09*
1.73*
2.52
1.49*
2.33
.33*
.35
1.16*
2.04
7.90
11.79
1.07*
1.61
5.51
8.10
.08*
.11*
1.70
2.69
2.59
2.28
.80*
.24
2.05
2.05
.00*
.02*
32*
59
10.79
1.66*
5.85
.60*
2.90*
1.23*
.00*
123*
.00*
.00*
NOTE. * Number of respondents was less than fifteen, too small to calculate a reliable statistic.
668
Industrial Production and Capacity Utilization
for May 1995
Released for publication
June 15
Industrial production declined 0.2 percent in May
after a revised decline of 0.5 percent in April. The
May decrease reflects a drop of 3.9 percent in the
production of motor vehicles and parts; excluding
motor vehicles and parts, industrial production was
unchanged from its level in April. Manufacturing
output fell 0.3 percent and mine production declined 1.0 percent, but output at utilities advanced
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
10
10
5
5
+
Materials
Products
1989
1990
1991
1992
1993
Nondurable
manufacturing
1994
1995
1989
1990
1991
1992
1993
1994
0
1995
Capacity and industrial production
Ratio scale, 1987 production = 100
-Total^dustry^
Capacity
_
—
Ratio scale, 1987 production = 100
140
1
100
80
1
120
100
^^^^—.—«—Production
140
120
80
1
1 1 1 1
Percent of capacity
1
1
1
1
1
1
1
1
1
1
1
I
1
Percent of capacity
Manufacturing
Total industry
90
Utilization
90
Utilization
—
80
—
-
80
70
i
1981
i
i
1983
i
i
1985
i
i
1987
i
1989
1991
1993
1995
70
i
1981
i
i
1983
i
i
1985
All series are seasonally adjusted. Latest series, May. Capacity is an index of potential industrial production.
i
i
1987
i
i
1989
i
i
1991
i
i
1993
i
1995
669
Industrial production and capacity utilization, May 1995
Industrial production, index, 1987=100
Percentage change
Category
1995
19951
Feb.
r
r
Mar.
Apr/
May?
r
120.9
Total
122.1
121.9
MayP
May 1994
to
May 1995
-.2
3.1
-.6
-.8
-.2
-1.3
-.4
-.2
-.2
.1
-.6
-.3
2.2
.7
7.5
2.1
4.4
-.6
-.6
-.7
-.2
.5
-.3
-.4
-.1
-1.0
.6
3.3
5.1
1.3
-1.9
4.0
r
Previous estimate
122.0
121.6
121.1
119.1
115.7
154.5
111.0
126.7
118.8
114.8
155.5
110.4
126.7
118.0
113.9
155.2
109.0
126.2
117.8
113.6
155.4
108.3
125.8
.0
.0
.5
-1.0
.1
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
124.2
131.5
116.1
100.6
119.2
124.1
131.5
115.7
100.0
119.1
123.3
130.7
115.0
99.8
119.7
123.0
130.3
114.8
98.8
120.4
Apr.
-.2
Major market groups
Products, total2
Consumer goods
Business equipment
Construction supplies
Materials
Mar.
-.5
-.3
121.2
Feb.
r
-.4
-.3
-.2
-.1
-.4
.7
2.3
-.8
.7
-.5
.0
Capacity utilization, percent
1994
Average,
1967-94
Low,
1982
High,
1988-89
1995
May
Total
Feb.r
Mar.'
Apr.1
MayF
85.3
84.9
84.2
83.7
3.2
85.2
84.7
84.1
84.7
82.8
89.4
90.3
87.5
84.3
82.4
89.1
89.7
87.3
83.5
81.5
88.4
89.6
87.6
83.0
81.0
87.9
88.7
88.0
3.6
4.1
2.4
-.1
1.3
82.0
71.8
84.9
83.8
81.3
80.7
82.5
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.2
83.5
89.0
86.5
92.6
83.2
81.3
88.0
90.3
85.8
Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.
0.6 percent. At 120.9 percent of its 1987 average,
industrial production in May was 3.1 percent higher
than it was in May 1994. Capacity utilization
declined 0.5 percentage point in May after having
declined 0.7 percentage point in April. At 83.7 percent, the rate of capacity utilization in May was
1.8 percentage points below the most recent high,
attained this past December and January.
When analyzed by market group, the data show
that the overall output of consumer goods
decreased 0.2 percent in May, continuing the
retreat that began in March. The output of the
durable goods component dropped 2.1 percent,
largely because of further sizable cutbacks in the
production of consumer autos and trucks. Among
other consumer durables, the production of appliances and television sets increased, and the output
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
of furniture and carpeting fell. The output of the
nondurable component of consumer goods
increased 0.3 percent; growth in residential sales
by electric utilities and increases in the production
of drugs and medicines and consumer paper products more than offset further decreases in the output of gasoline and distillate fuel oil.
The production of business equipment edged up
0.1 percent in May after having decreased 0.2 percent in April. As in April, the output of transit
equipment declined 2.5 percent in May, led by
another large reduction in the production of business autos; the output of light trucks and commercial aircraft was also down significantly. The
production of industrial equipment turned up
0.3 percent after two consecutive monthly declines,
and the output of information processing equip-
670
Federal Reserve Bulletin • July 1995
ment, led by a 2.0 percent increase in computers
and office equipment, advanced 0.9 percent.
The output of defense and space equipment fell
1.1 percent.
The overall output of intermediate products
decreased 0.3 percent, as the production of construction supplies fell 0.6 percent and the output of
business supplies slipped 0.1 percent.
The production index for materials decreased
0.3 percent, with declines in the output of durable
and nondurable goods materials and energy materials. Reductions in the production of original equipment parts for motor vehicles and in the output of
miscellaneous plastics and basic metals materials
account for much of the decrease in durable goods
materials. Textiles, containers, and chemicals all
contributed to the fall in nondurable goods materials, while the decline in energy materials was
attributable to a decrease in coal production.
When analyzed by industry group, the data show
that factory output decreased 0.3 percent in May
after a revised decline of 0.6 percent in April. In
May, the output of durables manufacturers dropped
0.4 percent, while that of nondurables manufacturers slipped 0.1 percent. Among durables manufacturers, output fell significantly in four major industry groups: stone, clay, and glass products; primary
metals; transportation equipment; and miscellaneous manufactures. Among other manufacturers
of durables, the production of lumber and products
and of furniture and fixtures rebounded somewhat
in May, while that of instruments and industrial
machinery and computer equipment continued to
advance. Within nondurables manufacturing,
increases in the production of tobacco and paper
and products partly offset declines in textiles, petroleum products, rubber and plastics, and leather.
Reflecting the continuing decline in output, the
factory operating rate declined further in May, to
83.0 percent of capacity, a level that is 2.2 percentage points below the most recent peak, reached in
December 1994 and January 1995. The utilization
rate in the primary-processing industries retreated
0.5 percentage point, to 87.9 percent; the most
recent peak, in December 1994, was 90.8 percent.
The utilization rate for advanced-processing industries also fell back 0.5 percentage point; at 81.0 percent, the May rate was 2.2 percentage points below
its January 1995 peak.
The operating rate at utilities rose 0.4 percentage
point, to 88.0 percent. The operating rate at mines
decreased 0.9 percentage point, to 88.7 percent,
largely because of a 7.0 percent decline in production at coal mines.
•
671
Statements to the Congress
Statement by Susan M. Phillips, Member, Board of
Governors of the Federal Reserve System, before
the Subcommittee on Financial Institutions and
Regulatory Relief of the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate, May 2,
1995
I am pleased to be here today to discuss S.650, the
Economic Growth and Regulatory Paperwork Reduction Act of 1995. The Board welcomes its
introduction and supports its purpose of relieving
costs imposed on our nation's banking system by
governmental regulation when those costs are not
offset by corresponding benefits to the safety and
soundness of our nation's financial institutions, the
protection of bank customers, or the availability of
credit.
In my testimony today, I will discuss the Board's
efforts to reduce the cost of regulation and why we
believe that legislation is necessary to continue
those efforts. I will then address those portions of
the bill that make major changes to laws administered by the Board, particularly in the area of bank
and branching applications, where I believe the bill
would significantly reduce burden, and in the consumer area. Finally, I will highlight provisions
about which the Board does have concerns. Still, I
do not wish these objections in any way to detract
from the central message of my testimony: that the
nation's banking system needs legislation of the
type presented by S.650.
Appended to my testimony is a brief summary of
the Board's comments on certain provisions that
are not discussed directly in my testimony.1
THE ROLE OF REGULATION
Banking regulation has clearly defined purposes.
They include protecting the federal safety net and
1. The attachments to this statement are available from Publications Services, Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
thereby the taxpayer, preserving a strong banking
system, minimizing the destabilizing effects on the
economy caused by any difficulties in the banking
system, providing consumer protection, and ensuring that communities are served by our banking
system.
Such regulation, however, cannot succeed if it is
designed to eliminate at any cost the possibility of
any bank failure—either a financial failure or a
failure to serve customers. Rather, banking regulation must aim to produce at a reasonable cost the
banking system that can best serve our economy
and the American people. Each requirement, restriction, application, and report imposed may individually be justified at the time of adoption, but
collectively the amount of regulation created over
time may become a significant obstacle for the
community banker and, equally important, someone hoping to start a community bank.
The aggregate burden on our nation's banks has
become substantial, raising the cost of banking
services and thereby encouraging customers to seek
less costly loans and services or higher yielding
investments from other financial intermediaries that
are not subject to the same regulatory requirements.
Furthermore, our banks must operate in increasingly competitive financial markets, both domestic
and global. The United States can ill afford to
handicap its banking institutions with unnecessary
and dysfunctional regulation.
The Board believes the time has come to reexamine each of our banking statutes and regulations
and decide whether its benefits are commensurate
with its costs. The Board believes that there are
restrictions in current banking law that cannot pass
this test. To address this problem, the Board advocates not only burden relief of the type provided by
S.650 but also reform of anachronistic statutes such
as the Glass-Steagall Act, which needlessly and
significantly hinders the ability of U.S. banking
organizations to compete in their home market. We
encourage the full committee to take up the matter
of Glass-Steagall reform promptly.
672
Federal Reserve Bulletin • July 1995
OUR EFFORTS AT THE BOARD
The recognition that regulatory burden must be
reduced is not new at the Board. Since 1978 the
Board has maintained a formal program of regulatory review and simplification, and in 1986 the
Board established a Regulatory Planning and Review office, charged with ensuring that regulatory
proposals minimize the burdens imposed on those
that must comply. The Board has long believed that
significant reductions can be made in regulatory
burden by eliminating requirements that are redundant or have outlived their usefulness.
The Board has redoubled these efforts in recent
years. For example, we have streamlined the applications process by shortening processing times,
substituting a notice requirement for an application
whenever possible, waiving applications for transactions reviewed by other regulators, and reducing
the paperwork that must accompany applications
and notices. These changes have reduced both the
volume of paper that must be filed by notificants
and the time required for the Board to review
nonbanking proposals. Of the more than 3,500
applications and notices acted on during 1994, 94
percent were completed within the Board's selfimposed sixty-day target, with the average period
of review lasting thirty-four days. In other areas,
the Board has worked within the limits of its
governing statutes to expand the list of permissible
nonbanking activities for banking organizations, to
remove unnecessary, outdated restrictions on the
conduct of these activities, and to eliminate restrictions that prevented banking organizations from
providing discounts to their customers on packages
of products.
I have attached to my testimony a more complete
list of our initiatives to reduce unnecessary regulatory burden over the past three years.
THE NEED FOR LEGISLATIVE CHANGE
There is a limit, however, to how far we or the other
banking agencies can go in rationalizing the regulation imposed on our nation's banks. Although we
speak of "regulatory" burden, that term is something of a misnomer. The Board must operate
within statutory constraints, and all of our regula-
tions are either required by statute or are necessary
to explain or implement a statute. Put simply, we
have no choice but to regulate, and in some cases to
overregulate.
S.650 provides the type of statutory changes that
would allow a reduction in regulatory burden in
many areas without adversely affecting safety and
soundness or other important supervisory and policy concerns.
Applications
One of S.650's important reforms, from the
Board's perspective, comes in the applications
area, where S.650 would eliminate federal regulatory review for routine bank acquisitions and
branch openings by well-capitalized and wellmanaged banking organizations that are helping to
meet the credit needs of their communities. The
Board's experience in administering these statutory
requirements over the past thirty-nine years leads
us to endorse these initiatives very strongly.
Currently, the Bank Holding Company Act requires that all bank holding companies obtain
Board approval before acquiring control of another
depository institution or merging with another bank
holding company. The bill would eliminate this
application requirement for proposals that raise no
serious competitive issue and are made by bank
holding companies that met specified standards for
capital, management, and community reinvestment
at their previous examination. The vast majority of
proposals processed by the Board meet these requirements and are routinely approved. Thus, we
believe that the cost of continuing the applications
process in such cases is unnecessary from any
public policy perspective. The bill not only would
make the applications process simpler, less burdensome, and more transparent for qualifying banking
organizations but also would provide a powerful
incentive for banking organizations to achieve and
maintain strong capital positions, solid management, and a commitment to the community.
In a similar vein, S.650 would eliminate branch
applications for banks that meet the specified capital, management, and community reinvestment
standards. The cost of these applications, which are
routinely approved by all the agencies, is not
justified when the applicant is well-capitalized,
Statements to the Congress
well-managed, and serving its community. Furthermore, S.650 would eliminate branch applications
for automatic teller machines (ATMs) in all cases.
The law defining a branch to include an ATM for
this purpose is simply an anachronism. Together,
these two changes would eliminate the need for a
substantial number of branch applications filed
with the banking agencies.
Finally, S.650 would eliminate or modify other
applications requirements whose benefits no longer
justify their costs, including applications for investment in bank premises and determinations that a
bank holding company does not control shares of
stock that it divests to certain companies.
The Board supports these changes and, indeed,
believes that the bill should go further still. We
believe that the provisions in the bill eliminating
the application process for acquisitions by wellmanaged and well-capitalized banking organizations need to be extended to routine proposals
involving nonbanking activities (such as mortgage
banking or securities brokerage) that the Board has
already determined to be permissible. The application requirement places bank holding companies
increasingly at a competitive disadvantage with
other companies that face no similar federal review
requirement. We estimate that adoption of this
proposal could reduce the filing of notices to
engage in nonbanking activities by 60 percent or
more. The reduction in burden associated with all
the changes made by S.650 and recommended by
the Board would be substantial.
Lastly, we believe that the bill should be
amended to eliminate a hearing provision for nonbanking applications, given the ample opportunity
afforded all parties to make written submissions.
CONSUMER REFORMS
S.650 contains numerous amendments to the consumer protection statutes administered by the
Board. Although time does not permit me to
discuss each of these provisions, I will mention
those of particular importance to the Board.
First, section 236 of the bill would reduce the
number of institutions required to report the Home
Mortgage Disclosure Act data by raising the asset
level at which reporting is mandatory from $10
673
million to $50 million. The Board believes that this
step would provide important relief to our nation's
community banks without undercutting the goal of
the act.
Second, the bill makes a variety of changes to the
Community Reinvestment Act (CRA) that, collectively, would affect the way the banking agencies
administer that act. Some of these changes are
directed at concerns the agencies addressed in their
recently revised CRA regulations, such as the
exemption for small banks. That multiyear effort
recognized that the burden imposed on small institutions needed to be reduced and focused on
making the CRA evaluation process more objective, performance-based, and predictable. Before
changing the rules in this area once again, we
believe that the Congress should pause to consider
whether the agencies' efforts will achieve the objectives of S.650 in this area. Furthermore, the
prohibition on additional reporting would leave the
agencies unable to carry out the mandates of the act
through their recently adopted regulations. We
believe that if an agency is assigned a responsibility, it should also be granted the tools necessary to
fulfill its mandate.
S.650 also contains CRA reforms not addressed
by the agencies' recent efforts, particularly incentives for CRA performance. Section 133 provides
that any institution that receives a "satisfactory" or
"outstanding" rating is deemed, for purposes of the
applications process, to have met the purposes of
the CRA in regard to community credit needs. The
Board endorses the concept of providing incentives
to institutions for good CRA performance. As the
Board has previously testified, however, it is important to differentiate in the offering of incentives
between institutions whose performance may be
barely satisfactory and institutions whose performance is close to outstanding. Accordingly, the
Board believes that the Congress should add a new
rating category of "high satisfactory" to the current
4-point rating system and then focus benefits, such
as the application relief mentioned earlier, on institutions at that and the higher "outstanding" level.
Third, the entire Board believes that the Truth in
Savings Act could be amended to make compliance
less onerous but is divided on the merits of the
approach taken in section 141 of the bill. I and a
majority of the Board support the approach of the
bill, which would repeal portions of Truth in
674
Federal Reserve Bulletin • July 1995
Savings. Section 141 would leave intact the requirement that a depository institution pay interest
on the full principal in a consumer's account,
thereby barring the use of the investable and
low-balance methods in determining interest payments. This requirement, which is already in place
for financial institutions generally, benefits consumers without imposing excessive burdens. In
addition, the Congress should prohibit misleading
or inaccurate advertising in the promotion of deposit accounts—similar to the approach taken in
H.R.1362, which leaves in place the current bar on
misleading advertisements. Such a limitation would
be valuable in ensuring that consumers are not
misled by advertising that, for example, publicizes
high "teaser" rates without informing consumers
of the limited periods for which they are in effect or
of other conditions that will determine the rates
actually paid.
Before leaving the consumer area, I would like to
make one general observation. Our consumer regulations are quite detailed, more so than one might
expect. One reason for this detail, and, ironically,
the reason why the industry often demands rather
than rejects such detail, is the possibility of civil
liability. Because banks can be liable for any
misstep, they ask the Board to clarify every rule
and validate every practice. It may be time for a
serious reexamination of whether all the civil liability provisions in the consumer statutes are truly
needed to protect consumers.
OTHER PROVISIONS
Although the Board supports the great majority of
the provisions of S.650, there are three that cause us
considerable concern: relaxing the standards for
foreign banks operating in the United States to the
extent proposed, loosening the terms for intraday
credit for the Federal Home Loan Banks, and
transferring authority for administering the Real
Estate Settlement Procedures Act (RESPA) to the
Board.
Foreign
Banks
As currently drafted, S.650 would amend the Foreign Bank Supervision Enhancement Act of 1991
(FBSEA) to lower the standards under which foreign banks may enter and operate in the United
States and to reduce significantly the authority of
the Federal Reserve to examine their U.S. operations on a comprehensive basis. The Board strongly
opposes these provisions of the bill, as they remove
many of the important protections that were considered necessary in the wake of the Banca Nazionale del Lavoro and Bank of Credit and Commerce
International (BCCI) affairs and were included in
FBSEA. The Board believes that it is too soon to
conclude that those protections are no longer necessary and sees no evidence that they are not.
More specifically, the bill would permit the
Board to deny entry to foreign banks only on the
very narrow ground that establishment of an office
by a foreign bank would place at risk the safe and
sound operation of the U.S. financial system—a
standard that even BCCI probably would not have
failed. The bill would also deprive the Board of
important examination authority. Because the activities of the various U.S. banking offices of a
foreign bank are often highly intertwined, examinations need to be coordinated not only to avoid
duplication of effort but also to ensure a complete
and comprehensive picture of the organization,
reducing the potential for financial manipulation.
To this end, in 1994 the Federal Reserve and other
state and federal bank regulatory authorities that
supervise more than 90 percent of the assets of U.S.
branches and agencies of foreign banks announced
a joint program to enhance the supervision of
foreign banks.
Although the Board believes that these provisions go too far, the Board believes that some
provisions of FBSEA should be reevaluated—most
notably the inflexible requirement that the Board
may not approve an application unless a foreign
bank is subject to comprehensive consolidated
supervision by home country authorities. This standard has proved a significant barrier to entry for
banks from jurisdictions, especially developing
countries, that have not yet implemented a policy of
consolidated supervision. The Board would recommend adding a provision to S.650 that would allow
a foreign bank that meets all other requirements to
open a limited office in the United States, subject to
appropriate safeguards, if the bank's home country
is making progress toward consolidated supervision. This amendment would give well-run foreign
Statements to the Congress
banks from developing countries an opportunity to
establish a limited presence in the United States,
while still providing an incentive for home country
authorities to continue to implement reforms for
consolidated supervision. Although the Board supports the setting of a deadline for action on applications for foreign bank entry, the deadline in the
bill is too restrictive, given the difficult issues
raised in many foreign bank cases.
Daylight
Overdrafts
Also of concern to the Board is section 305 of the
bill, which would essentially require that the Federal Reserve make intraday credit, in the form of
daylight overdrafts, available to the Federal Home
Loan Banks. This would create a nonmarket source
of short-term funding for the Federal Home Loan
Bank system without the costs incurred by depository institutions in maintaining required reserves.
Section 305 would thereby serve as a precedent for
government-sponsored enterprises to escape the
market discipline inherent in their statutory funding
schemes. The Board opposes extending this taxpayer subsidy to the Federal Home Loan Banks.
RESPA
S.650 attempts in a very limited way to improve the
administration of the Real Estate Settlement Procedures Act, or RESPA, by transferring regulatory
authority from the Department of Housing and
Urban Development to the Board. Although such a
transfer may have some intuitive appeal because of
the Board's Truth in Lending responsibilities, there
are important reasons why the Board is concerned
about this provision. First, unlike Truth in Lending,
certain portions of RESPA are in essence a priceregulation scheme—one that the Board lacks expertise to administer and that is foreign to the
Board's central bank responsibilities. Second, even
if the Board were better suited to the task, simply
transferring responsibility from one agency to an-
675
other does not achieve substantial reform or, necessarily, burden reduction.
Instead, we offer a different solution for RESPA.
The Board believes that an in-depth reassessment
by the Congress of RESPA's fundamental requirements is more to the point. We believe that the
Congress should set aside the very complex issues
raised by RESPA for separate hearings that could
focus on the substance of RESPA rather than on
administrative jurisdiction. There are serious questions to be considered, including, for example, the
suggestion by some parties to real estate transactions that RESPA may be stifling innovation and
technological advancement from which the public
might benefit.
We urge the Congress to undertake such an
assessment rather than simply transfer regulatory
authority. We believe that the Board is not the
appropriate locus for this responsibility.
CLOSING
THOUGHTS
In closing, I would like to expand on one thought I
mentioned earlier: that when the Congress or the
agencies impose a regulatory burden, there are
generally good reasons for doing so at the time. As
time passes, however, the reasons for imposing the
requirement may subside, but the requirement takes
on a life of its own. A good example of this
phenomenon is the sixty-year-old Glass-Steagall
Act, a law that was a response to a time and a
financial system that bear little relation to our own.
S.650 addresses half of this problem by requiring
that the agencies reexamine each regulation on a
regular basis, a provision the Board endorses.
However, as S.650 elsewhere recognizes, there are
some things that only the Congress can do. For that
reason, the Board hopes that the Congress would
commit itself to a similar reexamination of the
banking statutes themselves—either through the
use of sunset provisions when appropriate or, less
formally, through periodic oversight hearings on
existing statutes and regulatory burden.
•
676
Federal Reserve Bulletin • July 1995
Statement by Edward W. Kelley, Jr., Member, Board
of Governors of the Federal Reserve System, to the
Subcommittee on Domestic and International Monetary Policy of the Committee on Banking and
Financial Services, U.S. House of Representatives,
May 3, 1995
The Board of Governors is pleased that the Congress is again considering legislation that would
provide for substituting a $1 coin for the $1 bank
note now in circulation, and we appreciate the
opportunity to present information on several benefits and costs of making such a replacement.
In summary, a $1 coin would produce a substantial budgetary gain for the federal government,
provided that the $1 note is withdrawn from circulation. The Board believes, however, that the convenience and needs of the American public, rather
than cost savings, should be the main consideration
in making this decision. Experience in Canada,
where a similar change was made some years ago,
suggests that the public will, over time, find a $1
coin more convenient than the $1 note. Finally, we
would note that the significance of the U.S. dollar
goes beyond the purchasing power it represents or
the utility it provides; for Americans, the dollar is a
symbol of economic and political stability and a
source of national pride; consequently, any change
should be made only for the most compelling
reasons. If, after taking account of all these considerations, the Congress is inclined toward replacing
the $1 note, it should enact legislation with a
reasonably delayed effective date so that all those
affected can plan adequately for the transition.
The impact on the federal budget of issuing coins
and currency notes is not widely understood by the
public, so it may be useful to devote a part of this
statement to reviewing those fundamentals. The
accounting processes and budget presentations are
quite different in substance:
• Both issuing coins and issuing currency notes
lower the government's effective cost of borrowing
from the public, by approximately the value of the
coin or currency notes in circulation times the
interest rate that the government pays on its debt.
• There is an offsetting cost to the government
associated with servicing the outstanding circulating coins or notes, which involves replacing "un
fit" coins and notes as they wear out and operating
the Federal Reserve currency and coin-processing
facilities that provide the public with good-quality,
genuine coins and notes.
Let us start with the following assumptions to
illustrate the budget and accounting processes: (1)
the Treasury's borrowing rate is 5.5 percent; (2) 7
billion $1 notes will already be in circulation at the
time of the changeover; (3) $1 notes have a useful
life of 1.5 years and cost 3.8 cents each to produce;
(4) $1 coins would have a useful life of thirty years
and cost 8 cents each to produce; and (5) $1 notes
and $1 coins would cost 75 cents and 30 cents per
thousand pieces respectively to be processed at the
Federal Reserve Banks.
In the issuance of currency notes, the reduction
in net governmental borrowing from the public
occurs indirectly. The federal government's total
borrowing and total interest outlays are not affected, but the Federal Reserve System holds a
portfolio of government securities equal to the
value of Federal Reserve notes outstanding, and, at
the margin, the Federal Reserve returns to the
Treasury its full earnings on those securities. These
earnings are, from the Treasury's viewpoint, a
return of its own interest outlays.1
• In our simplified model, the $7 billion of
outstanding $1 notes provides a gross benefit to the
Treasury of $385 million per year.2
• The cost of servicing the $1 note issue is the
cost of replacing each note every 1.5 years, or $177
million per year,3 and of processing it 1.3 times per
year at Reserve Banks, or $7 million per year.4
Thus the net benefit to the Treasury associated with
7 billion of outstanding $1 notes is $201 million per
year.5
In the issuance of coins, the reduction in net
governmental borrowing from the public occurs
directly. When the Treasury deposits newly minted
1. The federal government budget accounts treat Federal Reserve
earnings paid to the Treasury as a miscellaneous receipt.
2. $7 billion x 5.5 percent.
3. 7 billion notes ^ 1.5 x $.038.
4. 7 billion notes x 1.3 x $.00075.
5. $385 million - $177 million - $7 million.
Statements to the Congress
coins at Federal Reserve Banks, it receives credit to
its checking account, and thus the government is
able to make budgeted expenditures without additional borrowing in the amount of the face value of
the newly deposited coins less their production cost
(which amount we call "seigniorage"). 6
• Seven billion new $1 coins would reduce the
federal government's total borrowing by $6.44
billion7 and total interest outlays by $354 million
per year,8 a gross benefit not much different from
the gross benefit from 7 billion notes.
• But the cost of replacing each coin every thirty
years would be only $19 million per year 9 and of
processing dollar coins at Reserve Banks 0.3 times
only $1 million per year.10
Thus the net benefit to the Treasury associated with
7 billion of outstanding $1 coins would be $334
million per year,11 considerably higher than that for
an equal number of currency notes.
At this point in the analysis, replacing $1 notes
with $1 coins would have a favorable impact on the
governmental budget of $133 million per year.12
However, such a replacement would have a further—and even more significant—benefit. Based
on the experience in virtually every country that
has made a comparable substitution, the government can expect to issue at least twice as many $1
coins as it would have issued $1 notes.13 (This may
result partly from the habit of many people to save
6. The budgetary accounting process for coin production sometimes gives rise to the belief that the booking of seigniorage per se
reduces the Treasury's borrowing requirement. This is not so. It is
being able to spend the newly minted coins that reduces the
Treasury's need to borrow. Such spending seldom occurs directly,
of course; the Treasury ordinarily deposits newly minted coins at
Federal Reserve Banks for credit to its checking account. Reserve
Banks accept only as many new coins as they expect to need to
meet the requirements of depository financial institutions in their
Districts.
7. $7 billion face value—$560 million production cost.
8. $6.44 billion x 5.5 percent.
9. 7 billion coins ^ 30 x $.08.
10. 7 billion coins x 0.2 x $.00030. Note that $1 notes are
typically deposited at Federal Reserve Banks an average of 1.3
times per year. We expect that $1 coins would be deposited only 0.2
times.
11. $354 million - $20 million.
12. $334 million - $201 million.
13. In six countries that replaced a note valued at about $1 with
a coin, the General Accounting Office found coin-for-note replacement rates ranging from 1.6 to 1 to 4 to 1. General Accounting
Office, National
Coinage
Proposals,
Limited
Public
Demand
for
677
their pocket change at the end of the day and partly
from a tendency for banking and retail establishments to hold larger quantities of coins than of
notes of equal value.) In our simplified model,
doubling the number of $1 coins in circulation
would add another $334 million per year to the
Treasury's benefit, for a total benefit of $467
million.14
The simplified model, of course, does not fully
reflect the real world. There are factors that would
both increase and decrease the $467 million annual
benefit shown above. In particular, growth in the
volume of $1 currency pieces outstanding—historically, more than 4 percent per year—would, over
time, considerably increase the benefit of substituting coins for notes. So would any numismatic, or
sentimental, collecting of $1 notes that might result
from the announcement that they soon would no
longer be issued (although $1 notes would continue
to be legal tender). On the other hand, some
increase in the use of $2 notes by the public seems
very likely if the $1 note were no longer issued, and
any such increase would reduce the budgetary gain.
In addition, the production cost for higher denomination notes would rise because fixed costs at the
Bureau of Engraving and Printing would be spread
over a smaller production volume. ($1 notes account for nearly 50 percent of the total annual
currency note production.)
Taking account of these additional factors, the
Board's staff estimates that, in the first five years of
the implementation, the federal government budget
position would be improved by a total of $2.28
billion (in nominal terms). The average yearly gain
in real present-value terms, over the assumed
thirty-year life of a $1 coin is estimated to be $460
million.15
These gains are unlikely to be achieved, however, if the $1 note is not withdrawn from circulation. This is because the private sector (notably
New Dollar
Coin or Elimination
of Pennies
(GAO, May 1990),
p. 39.
14. An attachment to this statement summarizes these effects
and is available from Publications Services, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
15. The thirty-year estimate uses an inflation rate of zero, a
Treasury borrowing rate of 3 percent, and a rate for discounting
future values to the present of 3 percent. The advantage of
expressing the longer-run financial impacts in real present-value
terms is that it adjusts for inflation and the time value of the
magnitudes involved.
678
Federal Reserve Bulletin • July 1995
banking and retail establishments), not knowing
how extensively the public will use the $1 coin,
will be reluctant to make the infrastructure outlays
necessary for the coin to succeed (training employees on new cash-register-drawer procedures, ordering of $1 coin inventories, new arrangements with
financial institutions, and the like). Likewise, the
public will refrain from using the new coin if the
retail sector is not prepared.16 In the meantime, the
public sector (particularly the Bureau of Engraving
and Printing, the Bureau of the Mint, and the
Federal Reserve System; perhaps also the Postal
Service and mass transit systems), not knowing
what the respective demands will be for $1 notes
and coins, and wanting to be able to meet any likely
demand, will inevitably overinvest in production
and processing capacity.
As important as the budgetary gains would be,
the Board believes that the foremost consideration
in this decision should be the convenience and
needs of the public. In this regard, opinion surveys
indicate that the American public generally is
satisfied with the present currency system and may
not initially welcome replacing the $1 note. There
is evidence in the Canadian experience, however,
that over time a $1 coin would come to be recognized as more convenient, cleaner, and more efficient than the $1 note.
If designed properly, a $1 coin may well be able
to evoke confidence in the currency system and be
a source of national pride to the same extent that
the $1 note does now. Market testing, such as with
focus groups, can help to achieve this result.
We believe that some legislative proposals, such
as H.R.534, would not provide enough preparation
16. For an excellent treatment of "network externalities" in
currency systems, see John P. Caskey and Simon St. Laurent, "The
Susan B. Anthony Dollar and the Theory of Coin/Note Substitutions," Journal of Money, Credit, and Banking, vol. 26 (August
1994, Part 1), pp. 495-510.
time for those most involved—the Nation's banking and retail establishments, the Treasury Bureaus
of the mint and of Engraving and Printing, and the
Federal Reserve Banks. Preparing for the issuance
of new $1 coins will be complex and time-consuming, and the prescribed preparation period—eighteen months—would not be sufficient. The mint will
need time to be certain that the design is effective,
both mechanically and in terms of public acceptance. There will be substantial changes in resource
requirements at the Bureau of Engraving and Printing, the Bureau of the Mint, and the Federal
Reserve Banks and branches. And, above all, the
Nation's banks and retail establishments will have
to plan carefully for the changeover.
Moreover, beginning in 1996, the Treasury and
Federal Reserve will begin a multiyear introduction
of new designs for Federal Reserve notes that will
be completed (with the introduction of a newly
designed $5 note) in about 1999. It would be
preferable that these important changes not occur
contemporaneously with the introduction of a $1
coin.
A reasonable approach may be for the Congress
to explore thoroughly the implications—for the
federal budget, for the convenience and needs of
the public, and for the public's feelings toward the
currency—of replacing the $1 note with a coin. If
the Congress judges that the balance of considerations weighs in favor of replacing the note, it
should adopt legislation as promptly as possible
that would establish dates in the future for introducing the new $1 coin, say in about four years to
coincide with issuance of the newly designed $5
note, and for no longer issuing $1 notes. In that
way, both the public and private sectors would have
a sound basis for beginning immediately to plan for
the change.
•
Statements to the Congress
Statement by Susan M. Phillips, Member, Board of
Governors of the Federal Reserve System, before
the Subcommittee on Financial Institutions and
Consumer Credit of the Committee on Banking and
Financial Services, U.S. House of Representatives,
May 18, 1995
I am pleased to be here today to discuss H.R.I362,
the Financial Institutions Regulatory Relief Act of
1995. The Board welcomes its introduction and
supports its purpose of relieving costs imposed on
our nation's banking system by governmental regulation, particularly when those costs are not offset
by corresponding benefits to the safety and soundness of our nation's financial institutions, the protection of bank customers, or the availability of
credit.
In my testimony today, I will discuss the Board's
efforts to reduce the cost of regulation and why we
believe that legislation is necessary to continue
those efforts. I will then address those portions of
the bill that make major changes to laws administered by the Board, particularly in the area of bank
and branching applications, where I believe the bill
would significantly reduce burden, and in the consumer area. Finally, I will highlight provisions
about which the Board does have concerns. Still, I
do not wish these objections in any way to detract
from the central message of my testimony: that the
nation's banking system needs legislation of the
type presented by H.R.I362.
Appended to my testimony are the Board's
comments on certain provisions that are not discussed directly in my testimony.1
THE ROLE OF REGULATION
Banking regulation serves clearly defined purposes.
They include protecting the federal safety net and
thereby the taxpayer, preserving a strong banking
system, minimizing the destabilizing effects on the
economy caused by any difficulties in the banking
system, providing consumer protection, and ensuring that communities are served by our banking
system.
1. The attachments to this statement are available from Publications Services, Mail Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
679
Such regulation, however, cannot succeed if it is
designed to eliminate at any cost the possibility of
any bank failure—either a financial failure or a
failure to serve customers. Rather, banking regulation must aim to produce at a reasonable cost the
banking system that can best serve our economy
and the American people. Each requirement, restriction, application, and report imposed may individually be justified at the time of adoption, but
collectively the amount of regulation created over
time can become a significant obstacle for the
community banker and, equally important, someone hoping to start a community bank.
As H.R.I362 recognizes, the aggregate regulatory burden on our nation's banks has become
substantial, raising the cost of banking services and
thereby encouraging customers to seek less costly
loans and services or higher yielding investments
from other financial intermediaries that are not
subject to the same regulatory requirements. Furthermore, our banks must operate in increasingly
competitive financial markets, both domestic and
global. The United States can ill afford to handicap
its banking institutions with unnecessary and dysfunctional regulation.
The Board believes the time has come to reexamine each of our banking statutes and regulations
and decide whether its benefits are commensurate
with its costs. The Board believes that there are
restrictions in current banking law that cannot pass
this test. To address this problem, the Board advocates not only burden relief of the type provided by
H.R.I362 but also reform of anachronistic statutes
such as the Glass-Steagall Act, which needlessly
and significantly hinders the ability of U.S. banking
organizations to compete. We applaud this committee' s recent approval of Glass-Steagall reform and
urge the House to pass H.R.1062.
OUR EFFORTS AT THE BOARD
The recognition that regulatory burden must be
reduced is not new at the Board. Since 1978, the
Board has maintained a formal program of regulatory review and simplification, and in 1986 the
Board established a Regulatory Planning and Review office, charged with ensuring that regulatory
proposals minimize the burdens imposed on those
680
Federal Reserve Bulletin • July 1995
that must comply. The Board has long believed that
significant reductions can be made in regulatory
burden by eliminating requirements that are redundant or have outlived their usefulness.
The Board has redoubled these efforts in recent
years. For example, we have streamlined the applications process by shortening processing times,
substituting a notice requirement for an application
whenever possible, waiving applications for transactions reviewed by other regulators, and reducing
the paperwork that must accompany applications
and notices. These changes have reduced both the
volume of paper that must be filed by notificants
and the time required for the Board to review
nonbanking proposals. Of the more than 3,500
applications and notices acted on during 1994, 94
percent were completed within the Board's selfimposed sixty-day target, with the average period
of review lasting thirty-four days. In other areas,
the Board has worked within the limits of its
governing statutes to expand the list of permissible nonbanking activities for banking organizations, to remove outdated restrictions on the conduct of these activities, and to eliminate restrictions
that prevented banking organizations from providing discounts to their customers on packages of
products.
I have attached to my testimony a more complete
list of our initiatives to reduce unnecessary regulatory burden over the past three years.
THE NEED FOR LEGISLATIVE CHANGE
There is a limit, however, to how far we or the other
banking agencies can go in rationalizing the regulation imposed on our nation's banks. Although we
speak of "regulatory" burden, that term is something of a misnomer. The Board must operate
within statutory constraints, and all of our regulations are either required by statute or are necessary
to explain or implement a statute. Put simply, we
have no choice but to regulate and in some cases to
overregulate.
H.R.1362 provides the type of statutory changes
that would allow a reduction in regulatory burden
in many areas without adversely affecting safety
and soundness or other important supervisory and
policy concerns.
Applications
One of H.R.I362's most important reforms comes
in the applications area, where it would eliminate
federal regulatory review for routine bank acquisitions and branch openings by well-capitalized and
well-managed banking organizations that are helping to meet the credit needs of their communities.
H.R.1362 would also allow well-capitalized and
well-managed organizations to commence previously approved nonbanking activities without filing
an application. The Board's experience in administering these statutory requirements over the past
thirty-nine years leads us to endorse these initiatives very strongly.
Currently, the Bank Holding Company Act requires that all bank holding companies obtain
Board approval before acquiring control of another
depository institution or merging with another bank
holding company. The bill would eliminate this
application requirement for proposals that raise no
serious competitive issue and are made by bank
holding companies that met specified standards for
capital, management, and community reinvestment
at their previous examination. The vast majority of
such proposals processed by the Board meet these
requirements and are routinely approved. Thus, we
believe that the cost of continuing the applications
process in such cases is unnecessary from a public
policy perspective. The bill not only would make
the applications process simpler, less burdensome,
and more transparent for qualifying banking organizations but also would provide a powerful incentive for banking organizations to achieve and maintain strong capital positions, solid management,
and a commitment to the community.
The bill would also eliminate the application
process for well-managed and well-capitalized
banking organizations that wish to engage in nonbanking activities (such as mortgage banking or
securities brokerage) that the Board has already
determined to be permissible. The application requirement places bank holding companies increasingly at a competitive disadvantage with
other companies that face no similar federal review requirement. The bill also eliminates a hearing provision for nonbanking applications, which
is an unnecessary burden given the ample opportunity afforded all parties to make written submissions.
Statements to the Congress
In a similar vein, H.R.I362 would eliminate
branch applications for banks that meet the specified capital, management, and community reinvestment standards. The cost of these applications,
which are routinely approved by all the agencies, is
not justified when the applicant is well-capitalized,
well-managed, and serving its community. Furthermore, H.R.I362 would eliminate branch applications for automated teller machines (ATMs) in all
cases. The law defining a branch to include an ATM
for this purpose is simply an anachronism. Together, these two changes would eliminate the need
for a substantial number of branch applications
filed with the banking agencies.
Finally, H.R.I362 would eliminate or modify
other applications requirements whose benefits no
longer justify their costs, including applications for
investment in bank premises and determinations
that a bank holding company does not control
shares of stock that it divests to certain companies.
I wish to stress the practical, bottom-line importance of these reforms. We estimate that adoption
of this proposal would reduce the number of
applications filed with the Federal Reserve by at
least 50 percent—eliminating more than 1,700
applications currently filed with the Board each
year and saving the industry untold hours of time
and substantial legal expenses.
CONSUMER REFORMS
H.R.I362 also contains numerous amendments to
the consumer protection statutes administered by
the Board. Although time does not permit me to
discuss each of these provisions, I will mention
those of particular importance to the Board.
First, section 116 of the bill would reduce the
number of institutions required to report Home
Mortgage Disclosure Act data by raising the asset
level at which reporting is mandatory from $10
million to $50 million. The Board believes that this
step would provide important relief to our nation's
community banks without undercutting the goal of
the act. Second, the bill makes a variety of changes
to the Community Reinvestment Act (CRA) that,
collectively, would affect the way the banking
agencies administer that act. Some of these
changes, such as the small bank exemption and
681
self-certification, are directed at concerns the agencies addressed in their recently revised CRA regulations. That multiyear effort recognized that the
burden imposed on small institutions needed to be
reduced and focused on making the CRA evaluation process more objective, performance-based,
and predictable. Before changing the rules in this
area once again, we believe that the Congress
should pause to consider whether the agencies'
efforts will achieve the objectives of H.R.I362 in
this area. Furthermore, the prohibition on additional reporting would leave the agencies unable to
carry out the mandates of the act through their
recently adopted regulations. We believe that if an
agency is assigned a responsibility, it should also be
granted the tools necessary to fulfill its mandate.
H.R.I362 also contains CRA reforms not addressed by the agencies' recent efforts, particularly
incentives for CRA performance. Section 124 provides that any institution that receives a "satisfactory" or "outstanding" rating is deemed to have
met the purposes of the CRA in regard to community credit needs for purposes of the applications
process. The Board endorses the concept of providing incentives to institutions for good CRA performance. As the Board has previously testified, however, it is important to differentiate in the offering of
incentives between institutions whose performance
may be barely satisfactory and institutions whose
performance is close to outstanding. Accordingly,
the Board believes that the Congress should add a
new rating category of "high satisfactory" to the
current 4-point rating system and then focus benefits, such as the application relief in title II of the
bill, on institutions at that and the higher "outstanding" level.
Third, the entire Board believes that the Truth in
Savings Act could be amended to make compliance
less onerous but is divided on the merits of portions
of section 131 of the bill. I and a majority of the
Board support the general direction of the bill,
which would eliminate some provisions of the
Truth in Savings Act and revise others. Section 131
would leave intact the requirement that a depository institution pay interest on the full principal in
a consumer's account, thereby barring the use of
the investable and low-balance methods in determining interest payments. This requirement, which
is already in place for financial institutions generally, benefits consumers without imposing exces-
682
Federal Reserve Bulletin • July 1995
sive burdens. Section 131 would also continue to
prohibit misleading or inaccurate advertising in the
promotion of deposit accounts. Such a limitation is
valuable in ensuring that consumers are not misled
by advertising that, for example, publicizes high
"teaser" rates without informing consumers of the
limited periods for which they are in effect or of
other conditions that will determine the rates actually paid.
Before leaving the consumer area, I would like to
make one general observation. Our consumer regulations are quite detailed, more so than one might
expect. One reason for this detail, and, ironically,
the reason why the industry often demands rather
than rejects such detail, is the possibility of civil
liability. Because banks can be liable for any
misstep, they ask the Board to clarify every rule
and validate every practice. The amendments to the
Truth in Lending Act in title I of the bill, which the
Board supports, take an important step toward
addressing this problem, but it may also be time for
a broader reexamination of whether all the civil
liability provisions in the consumer statutes are
truly needed to protect consumers.
OTHER PROVISIONS
Although the Board supports the great majority of
the provisions of H.R.I 362, there are two that cause
us considerable concern: relaxing the standards for
foreign banks operating in the United States to the
extent proposed and transferring authority for administering the Real Estate Settlement Procedures
Act (RESPA) to the Board.
Foreign
Banks
As currently drafted, H.R.I362 would amend the
Foreign Bank Supervision Enhancement Act of
1991 (FBSEA) to lower the standards under which
foreign banks may enter and operate in the United
States and to reduce significantly the authority of
the Federal Reserve to examine their U.S. operations on a comprehensive basis. The Board opposes
these provisions of the bill as drafted.
More specifically, the bill would permit the
Board to deny entry to foreign banks only on the
very narrow ground that establishment of an office
by a foreign bank would place at risk the safe and
sound operation of the U.S. financial system—a
standard that even the Bank of Credit and Commerce International probably would not have
failed. As drafted, the bill would also deprive the
Board of important examination authority. Because
the activities of the various U.S. banking offices of
a foreign bank are often highly intertwined, examinations need to be coordinated not only to avoid
duplication of effort but also to ensure a complete
and comprehensive picture of the organization,
reducing the potential for financial manipulation.
To this end, in 1994 the Federal Reserve and other
state and federal bank regulatory authorities that
supervise more than 90 percent of the assets of U.S.
branches and agencies of foreign banks announced
a joint program to enhance the supervision of
foreign banks.
Although the Board believes that these provisions go too far, the Board believes that some
provisions of FBSEA should be reevaluated—most
notably the inflexible requirement that the Board
not approve an application unless a foreign bank is
subject to comprehensive consolidated supervision
by home country authorities. This standard has
proved a significant barrier to entry for banks from
jurisdictions, especially developing countries, that
have not yet fully implemented a policy of consolidated supervision. The Board would recommend
adding a provision to H.R.I362 that would allow a
foreign bank to open an office in the United States,
subject to appropriate safeguards, if the bank's
home country is making progress toward consolidated supervision. This amendment would give
well-run foreign banks from developing countries
an opportunity to establish a presence in the United
States under appropriate conditions, while still
providing an incentive for home country authorities
to continue to implement reforms for consolidated
supervision. H.R.I362 also establishes a deadline
for the Board to act on foreign bank applications, a
concept the Board endorses.
We would be pleased to work with the committee
on appropriate changes to the foreign bank provisions.
RESPA
H.R.I362 attempts in a very limited way to improve the administration of the Real Estate Settle-
Statements to the Congress
ment Procedures Act by transferring regulatory
authority from the Department of Housing and
Urban Development to the Board. Although such a
transfer may have some intuitive appeal because of
the Board's Truth in Lending responsibilities, there
are important reasons why the Board is concerned
about this provision. First, unlike Truth in Lending,
certain portions of RESPA are in essence a priceregulation scheme—one which the Board lacks
expertise to administer and which is foreign to the
Board's central bank responsibilities. Second, even
if the Board were better suited to the task, simply
transferring responsibility from one agency to another does not achieve substantial reform or, necessarily, burden reduction.
Instead, we offer a different solution for RESPA.
The Board believes that an in-depth reassessment
by the Congress of RESPA's fundamental requirements is more to the point. We believe that the
Congress should set aside the very complex issues
raised by RESPA for separate hearings that could
focus on the substance of RESPA rather than on
administrative jurisdiction. There are serious questions to be considered, including, for example, the
suggestion by some parties to real estate transactions that RESPA may be stifling innovation and
technological advancement from which the public
might benefit.
683
We urge the Congress to undertake such an
assessment rather than simply transfer regulatory
authority. We believe that the Board is not the
appropriate locus for this responsibility.
CLOSING
THOUGHTS
In closing, I would like to expand on one thought I
mentioned earlier: that when the Congress or the
agencies impose a regulatory burden, there are
generally good reasons for doing so at the time. As
time passes, however, the reasons for imposing the
requirement may subside, but the requirement takes
on a life of its own. A good example of this
phenomenon is the sixty-year-old Glass-Steagall
Act, a law that was a response to a time and a
financial system that bear little relation to our own.
H.R.1362 addresses half of this problem by
requiring the agencies to reexamine each regulation
on a regular basis, a provision the Board endorses.
However, as H.R.1362 elsewhere recognizes, there
are some things that only the Congress can do. For
that reason, the Board hopes that the Congress
would commit itself to a similar reexamination of
the banking statutes themselves—either through
the use of sunset provisions when appropriate or,
less formally, through periodic oversight hearings
on existing statutes and regulatory burden.
•
684
Announcements
REQUESTS FOR NOMINATIONS FOR
APPOINTMENTS TO THE CONSUMER
ADVISORY COUNCIL AND MEETING
OF THE COUNCIL
ISSUANCE OF JOINT FRAMEWORK
FOR SUPERVISORY INFORMATION
ABOUT DERIVATIVES ACTIVITIES
OF BANKS AND SECURITIES FIRMS
The Federal Reserve Board announced on June 1,
1995, that it was seeking nominations of qualified
individuals for nine appointments to its Consumer
Advisory Council.
The Consumer Advisory Council is composed of
thirty representatives of consumer and community
interests and of the financial services industry. The
council was established by the Congress in 1976 to
advise the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and
on other matters on which the Board seeks its
advice. The council by law represents the interests
both of consumers and of the financial community.
The group meets in Washington, D.C., three times
a year.
Nine new members will be selected from the
nominations to serve three-year terms that will
begin in January 1996. The Board expects to
announce the selection of new members by yearend 1995.
Nominations should be submitted in writing and
should include the address and telephone number
of the nominee. In addition, information about past
and present positions held and special knowledge,
interests, or experience related to consumer credit
or other consumer financial services should be
included.
The written nominations must be received by
August 31, 1995, and should be addressed to
Dolores S. Smith, Associate Director, Division
of Consumer and Community Affairs, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551. Information about nominees
will be available for inspection upon request.
The Federal Reserve Board announced on
May 31, 1995, that a meeting of its Consumer
Advisory Council was scheduled for June 29.
The Basle Committee on Banking Supervision and
the Technical Committee of the International
Organisation of Securities Commissions (IOSCO)
issued on May 16, 1995, a joint framework for
supervisory information about the derivatives
activities of banks and securities firms.
This joint framework, which is being issued to
supervisors of banks and securities firms, is part of
a continuing effort to improve supervisors' access
to, and evaluation of, timely and comprehensive
information about institutions' activities involving
over-the-counter and exchange-traded derivatives.
The joint supervisory information framework has
two main parts. The first part summarizes the risks
associated with derivatives (for example, credit
risk, liquidity risk, and market risk) and discusses
qualitative and quantitative information that supervisors could obtain to assess these risks. The paper
also discusses earnings information that may be
useful for supervisory analysis purposes.
The second part of the paper sets forth a common minimum framework of supervisory information that focuses on a baseline of information that
is useful for supervisors to begin assessing the
effect of derivatives on an institution's risk
profile—primarily information about the extent of
an institution's derivatives activities and their credit
risk.
The two committees plan to periodically update
the joint supervisory information framework and to
incorporate information about market risk into its
common minimum framework at a later stage.
REGULATION B: FINAL REVISIONS TO
OFFICIAL STAFF COMMENTARY
The Federal Reserve Board published on June 1,
1995, final revisions to its official staff commentary
685
to Regulation B (Equal Credit Opportunity). The
revisions became effective on June 5.
The revisions to the commentary provide guidance on several issues including disparate treatment, special purpose credit programs, creditscoring systems, and discrimination based on
marital status.
AVAILABILITY OF A BROCHURE ON THE
TERMS OF CREDIT CARD PLANS
The Federal Reserve Board has published its semiannual report on the terms of credit card plans
offered by credit card issuers throughout the United
States. The survey information on credit card terms
is contained in the brochure Shop... The Card You
Pick Can Save You Money. It is designed to help
consumers comparison shop when looking for a
credit card. Because the terms can affect the
amount an individual pays for using a credit card,
the brochure lists the annual percentage rate (APR),
annual fee, grace period, type of pricing (fixed or
variable rate), and a telephone number for each
card issuer surveyed.
In addition, definitions and explanations of the
various methods to calculate the finance charge are
supplied. Consumers are encouraged to examine
the various plans and to determine the effect the
different variables might have on their budgets.
Copies of the brochure may be obtained free of
charge and are available from the twelve Federal
Reserve Banks or from Publications Services, Mail
Stop 127, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
ERRATUM: Federal Reserve
Bulletin
In "Monetary Policy and Open Market Operations
during 1994" in the June 1995 issue of the Federal
Reserve Bulletin, table 1 on page 571 contains an
error: The federal funds rate for the July 5-6,1994,
meeting was listed as 4 3 A percent; in fact the rate
was 4V4 percent. No change was made to the federal funds rate at this meeting.
•
686
Minutes of the
Federal Open Market Committee Meeting
Held on March 28,1995
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, March 28, 1995, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Blinder
Mr. Hoenig
Mr. Kelley
Mr. Lindsey
Mr. Melzer
Ms. Minehan
Mr. Moskow
Ms. Phillips
Ms. Yellen
Messrs. Boehne, Jordan, McTeer, and Stern,
Alternate Members of the Federal Open
Market Committee
Messrs. Broaddus, Forrestal, and Parry, Presidents
of the Federal Reserve Banks of Richmond,
Atlanta, and San Francisco respectively
Mr. Kohn, Secretary and Economist
Mr. Bernard, Deputy Secretary
Mr. Coyne, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Baxter, Deputy General Counsel
Mr. Prell, Economist
Mr. Truman, Economist
Ms. Browne, Messrs. Davis, Hunter, Lindsey,
Mishkin, Promisel, Siegman, Slifman, and
Stockton, Associate Economists
Mr. Fisher, Manager, System Open Market Account
Mr. Ettin, Deputy Director, Division of Research
and Statistics, Board of Governors
Mr. Madigan, Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Simpson, Associate Director, Division of
Research and Statistics, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Messrs. Goodfriend, Lang, Rolnick, Rosenblum,
and Sniderman, Senior Vice Presidents,
Federal Reserve Banks of Richmond,
Philadelphia, Minneapolis, Dallas, and
Cleveland respectively
Messrs. Kos and Judd, and Ms. Rosenbaum,
Vice Presidents, Federal Reserve Banks of
New York, San Francisco, and Atlanta
respectively
Mr. Thornton, Assistant Vice President, Federal
Reserve Bank of St. Louis
By unanimous vote, the minutes of the meeting
of the Federal Open Market Committee held on
January 31-February 1, 1995, were approved.
By unanimous vote, responsibility for making
decisions on appeals of denials by the Secretary of
the Committee for access to Committee records
was delegated under the provisions of 271.4(d) of
the Committee's Rules Regarding Availability of
Information to Ms. Phillips and, in her absence, to
Ms. Yellen.
By unanimous vote, the Committee elected
Thomas C. Baxter, Jr. as Deputy General Counsel
from the Federal Reserve Bank of New York and
William C. Hunter as Associate Economist from
the Federal Reserve Bank of Chicago to serve until
the next election at the first meeting of the Committee after December 31, 1995, with the understanding that in the event of the discontinuance of their
official connection with the Federal Reserve Banks
of New York and Chicago respectively, they would
687
cease to have any official connection with the Federal Open Market Committee.
On January 12, 1995, the continuing rules, regulations, and other instruments of the Committee
had been distributed with the advice that, in accordance with procedures approved by the Committee,
they were being called to the Committee's attention
to give members an opportunity to raise any questions they might have concerning them.
Members were asked to indicate if they wished
to have any of the instruments in question placed
on the agenda, and no requests for substantive
consideration were received. Apart from the updating of the Manager's title, all of the instruments
identified below remained in effect in their existing
forms:
1. Federal Open Market Committee Rules
a) Rules of Organization
b) Rules of Procedure
c) Rules
Regarding
Availability
of
Information
d) Open Market Operations of Federal
Reserve Banks
e) Procedures for Allocation of Securities in
the System Open Market Account
f) Resolution to Provide for the Continued
Operation of the Committee During an Emergency
g) Resolution Authorizing Certain Actions by
Federal Reserve Banks During an Emergency
h) Guidelines for the Conduct of System
Open Market Operations in Federal Agency Issues
2. Authority for the Chairman to appoint a Federal Reserve Bank as agent to operate the System
Account in case the New York Bank is unable to
function
3. Resolution relating to examinations of the
System Open Market Account
4. Regulation relating to Open Market Operations of Federal Reserve Banks
By unanimous vote, the Authorization for
Domestic Open Market Operations shown below
was reaffirmed.
AUTHORIZATION FOR DOMESTIC
OPEN MARKET OPERATIONS
Reaffirmed March 28, 1995
1. The Federal Open Market Committee authorizes
and directs the Federal Reserve Bank of New York, to
the extent necessary to carry out the most recent
domestic policy directive adopted at a meeting of the
Committee:
(a) To buy or sell U.S. Government securities,
including securities of the Federal Financing Bank, and
securities that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the
United States in the open market, from or to securities
dealers and foreign and international accounts maintained at the Federal Reserve Bank of New York, on a
cash, regular, or deferred delivery basis, for the System
Open Market Account at market prices, and, for such
Account, to exchange maturing U.S. Government and
Federal agency securities with the Treasury or the individual agencies or to allow them to mature without
replacement; provided that the aggregate amount of U.S.
Government and Federal agency securities held in such
Account (including forward commitments) at the close
of business on the day of a meeting of the Committee at
which action is taken with respect to a domestic policy
directive shall not be increased or decreased by more
than $8.0 billion during the period commencing with the
opening of business on the day following such meeting
and ending with the close of business on the day of the
next such meeting;
(b) When appropriate, to buy or sell in the open
market, from or to acceptance dealers and foreign
accounts maintained at the Federal Reserve Bank of
New York, on a cash, regular, or deferred delivery basis,
for the account of the Federal Reserve Bank of
New York at market discount rates, prime bankers acceptances with maturities of up to nine months at the time of
acceptance that (1) arise out of the current shipment of
goods between countries or within the United States, or
(2) arise out of the storage within the United States of
goods under contract of sale or expected to move into
the channels of trade within a reasonable time and that
are secured throughout their life by a warehouse receipt
or similar document conveying title to the underlying
goods; provided that the aggregate amount of bankers
acceptances held at any one time shall not exceed
$100 million;
(c) To buy U.S. Government securities, obligations
that are direct obligations of, or fully guaranteed as to
principal and interest by, any agency of the United
States, and prime bankers acceptances of the types
authorized for purchase under 1(b) above, from dealers
for the account of the Federal Reserve Bank of
New York under agreements for repurchase of such
securities, obligations, or acceptances in 15 calendar
days or less, at rates that, unless otherwise expressly
authorized by the Committee, shall be determined by
competitive bidding, after applying reasonable limitations on the volume of agreements with individual dealers; provided that in the event U.S. Government securities or agency issues covered by any such agreement are
not repurchased by the dealer pursuant to the agreement
or a renewal thereof, they shall be sold in the market or
transferred to the System Open Market Account; and
provided further that in the event bankers acceptances
covered by any such agreement are not repurchased by
688
Federal Reserve Bulletin • July 1995
the seller, they shall continue to be held by the Federal
Reserve Bank or shall be sold in the open market.
2. In order to ensure the effective conduct of open
market operations, the Federal Open Market Committee
authorizes and directs the Federal Reserve Banks to lend
U.S. Government securities held in the System Open
Market Account to Government securities dealers and to
banks participating in Government securities clearing
arrangements conducted through a Federal Reserve
Bank, under such instructions as the Committee may
specify from time to time.
3. In order to ensure the effective conduct of open
market operations, while assisting in the provision of
short-term investments for foreign and international
accounts maintained at the Federal Reserve Bank of
New York, the Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York
(a) for System Open Market Account, to sell U.S. Government securities to such foreign and international
accounts on the bases set forth in paragraph 1(a) under
agreements providing for the resale by such accounts of
those securities within 15 calendar days on terms comparable to those available on such transactions in the
market; and (b) for New York Bank account, when
appropriate, to undertake with dealers, subject to the
conditions imposed on purchases and sales of securities
in paragraph 1(c), repurchase agreements in U.S. Government and agency securities, and to arrange corresponding sale and repurchase agreements between its own
account and foreign and international accounts maintained at the Bank. Transactions undertaken with such
accounts under the provisions of this paragraph may
provide for a service fee when appropriate.
B y unanimous vote, the Authorization for Foreign Currency Operations was amended to reflect
the new title of Manager, System Open Market
Account.
AUTHORIZATION
FOR
tional Settlements, and with other international financial
institutions:
Austrian schillings
Belgian francs
Canadian dollars
Danish kroner
Pounds sterling
French francs
German marks
Italian lire
Japanese yen
Mexican pesos
Netherlands guilders
Norwegian kroner
Swedish kronor
Swiss francs
B. To hold balances of, and to have outstanding
forward contracts to receive or to deliver, the foreign
currencies listed in paragraph A above.
C. To draw foreign currencies and to permit foreign banks to draw dollars under the reciprocal currency
arrangements listed in paragraph 2 below, provided that
drawings by either party to any such arrangement shall
be fully liquidated within 12 months after any amount
outstanding at that time was first drawn, unless the
Committee, because of exceptional circumstances, specifically authorizes a delay.
D. To maintain an overall open position in all
foreign currencies not exceeding $25.0 billion. For this
purpose, the overall open position in all foreign currencies is defined as the sum (disregarding signs) of net
positions in individual currencies. The net position in a
single foreign currency is defined as holdings of balances in that currency, plus outstanding contracts for
future receipt, minus outstanding contracts for future
delivery of that currency, i.e., as the sum of these elements with due regard to sign.
2. The Federal Open Market Committee directs the
Federal Reserve Bank of New York to maintain reciprocal currency arrangements ("swap" arrangements) for
the System Open Market Account for periods up to a
maximum of 12 months with the following foreign
banks, which are among those designated by the Board
of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign
Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity.
FOREIGN
Foreign bank
CURRENCY
OPERATIONS
Amended March 28, 1995
1. The Federal Open Market Committee authorizes
and directs the Federal Reserve Bank of New York, for
System Open Market Account, to the extent necessary to
carry out the Committee's foreign currency directive and
express authorizations by the Committee pursuant
thereto, and in conformity with such procedural instructions as the Committee may issue from time to time:
A. To purchase and sell the following foreign currencies in the form of cable transfers through spot or
forward transactions on the open market at home and
abroad, including transactions with the U.S. Treasury,
with the U.S. Exchange Stabilization Fund established
by Section 10 of the Gold Reserve Act of 1934, with
foreign monetary authorities, with the Bank for Interna
Austrian National Bank
National Bank of Belgium
Bank of Canada
National Bank of Denmark
Bank of England
Bank of France
German Federal Bank
Bank of Italy
Bank of Japan
Bank of Mexico
Regular
Special
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank
Bank for International Settlements:
Dollars against Swiss francs
Dollars against authorized European
currencies other than Swiss francs
Minutes of the Federal Open Market Committee
Any changes in the terms of existing swap arrangements, and the proposed terms of any new arrangements
that may be authorized, shall be referred for review and
approval to the Committee.
3. All transactions in foreign currencies undertaken
under paragraph l.A. above shall, unless otherwise
expressly authorized by the Committee, be at prevailing
market rates. For the purpose of providing an investment
return on System holdings of foreign currencies, or for
the purpose of adjusting interest rates paid or received in
connection with swap drawings, transactions with foreign central banks may be undertaken at non-market
exchange rates.
4. It shall be the normal practice to arrange with
foreign central banks for the coordination of foreign
currency transactions. In making operating arrangements
with foreign central banks on System holdings of foreign
currencies, the Federal Reserve Bank of New York shall
not commit itself to maintain any specific balance,
unless authorized by the Federal Open Market Committee. Any agreements or understandings concerning the
administration of the accounts maintained by the Federal
Reserve Bank of New York with the foreign banks
designated by the Board of Governors under Section
214.5 of Regulation N shall be referred for review and
approval to the Committee.
5. Foreign currency holdings shall be invested insofar
as practicable, considering needs for minimum working
balances. Such investments shall be in liquid form, and
generally have no more than 12 months remaining to
maturity. When appropriate in connection with arrangements to provide investment facilities for foreign currency holdings, U.S. Government securities may be purchased from foreign central banks under agreements for
repurchase of such securities within 30 calendar days.
6. All operations undertaken pursuant to the preceding paragraphs shall be reported promptly to the Foreign
Currency Subcommittee and the Committee. The Foreign Currency Subcommittee consists of the Chairman
and Vice Chairman of the Committee, the Vice Chairman of the Board of Governors, and such other member
of the Board as the Chairman may designate (or in the
absence of members of the Board serving on the Subcommittee, other Board members designated by the
Chairman as alternates, and in the absence of the Vice
Chairman of the Committee, his alternate). Meetings of
the Subcommittee shall be called at the request of any
member, or at the request of the Manager, System Open
Market Account ("Manager"), for the purposes of
reviewing recent or contemplated operations and of consulting with the Manager on other matters relating to his
responsibilities. At the request of any member of the
Subcommittee, questions arising from such reviews and
consultations shall be referred for determination to the
Federal Open Market Committee.
7. The Chairman is authorized:
A. With the approval of the Committee, to enter
into any needed agreement or understanding with the
Secretary of the Treasury about the division of responsibility for foreign currency operations between the System and the Treasury;
689
B. To keep the Secretary of the Treasury fully
advised concerning System foreign currency operations,
and to consult with the Secretary on policy matters
relating to foreign currency operations;
C. From time to time, to transmit appropriate reports and information to the National Advisory Council
on International Monetary and Financial Policies.
8. Staff officers of the Committee are authorized to
transmit pertinent information on System foreign currency operations to appropriate officials of the Treasury
Department.
9. All Federal Reserve Banks shall participate in the
foreign currency operations for System Account in accordance with paragraph 3 G(l) of the Board of Governors' Statement of Procedure with Respect to Foreign
Relationships of Federal Reserve Banks dated January 1,
1944.
By unanimous vote, the Foreign Currency Directive shown below was reaffirmed.
FOREIGN
CURRENCY
DIRECTIVE
Reaffirmed March 28, 1995
1. System operations in foreign currencies shall generally be directed at countering disorderly market conditions, provided that market exchange rates for the U.S.
dollar reflect actions and behavior consistent with the
IMF Article IV, Section 1.
2. To achieve this end the System shall:
A. Undertake spot and forward purchases and sales
of foreign exchange.
B. Maintain reciprocal currency ("swap") arrangements with selected foreign central banks and with the
Bank for International Settlements.
C. Cooperate in other respects with central banks
of other countries and with international monetary
institutions.
3. Transactions may also be undertaken:
A. To adjust System balances in light of probable
future needs for currencies.
B. To provide means for meeting System and Treasury commitments in particular currencies, and to facilitate operations of the Exchange Stabilization Fund.
C. For such other purposes as may be expressly
authorized by the Committee.
4. System foreign currency operations shall be
conducted:
A. In close and continuous consultation and cooperation with the United States Treasury;
B. In cooperation, as appropriate, with foreign
monetary authorities; and
C. In a manner consistent with the obligations of
the United States in the International Monetary Fund
regarding exchange arrangements under the IMF Article IV.
690
Federal Reserve Bulletin • July 1995
By unanimous vote, the Procedural Instructions
with Respect to Foreign Currency Operations
shown below were amended to reflect the new title
of Manager, System Open Market Account.
PROCEDURAL INSTRUCTIONS WITH RESPECT
FOREIGN CURRENCY
OPERATIONS
TO
Amended March 28, 1995
In conducting operations pursuant to the authorization
and direction of the Federal Open Market Committee as
set forth in the Authorization for Foreign Currency
Operations and the Foreign Currency Directive, the Federal Reserve Bank of New York, through the Manager,
System Open Market Account ("Manager"), shall be
guided by the following procedural understandings with
respect to consultations and clearances with the Committee, the Foreign Currency Subcommittee, and the Chairman of the Committee. All operations undertaken pursuant to such clearances shall be reported promptly to the
Committee.
1. The Manager shall clear with the Subcommittee
(or with the Chairman, if the Chairman believes that
consultation with the Subcommittee is not feasible in the
time available):
A. Any operation that would result in a change in
the System's overall open position in foreign currencies
exceeding $300 million on any day or $600 million since
the most recent regular meeting of the Committee.
B. Any operation that would result in a change on
any day in the System's net position in a single foreign
currency exceeding $150 million, or $300 million when
the operation is associated with repayment of swap
drawings.
C. Any operation that might generate a substantial
volume of trading in a particular currency by the System,
even though the change in the System's net position in
that currency might be less than the limits specified in
l.B.
D. Any swap drawing proposed by a foreign
bank not exceeding the larger of (i) $200 million or
(ii) 15 percent of the size of the swap arrangement.
2. The Manager shall clear with the Committee (or
with the Subcommittee, if the Subcommittee believes
that consultation with the full Committee is not feasible
in the time available, or with the Chairman, if the Chairman believes that consultation with the Subcommittee is
not feasible in the time available):
A. Any operation that would result in a change in
the System's overall open position in foreign currencies
exceeding $1.5 billion since the most recent regular
meeting of the Committee.
B. Any swap drawing proposed by a foreign bank
exceeding the larger of (i) $200 million or (ii) 15 percent
of the size of the swap arrangement.
3. The Manager shall also consult with the Subcommittee or the Chairman about proposed swap drawings
by the System and about any operations that are not of a
routine character.
The Manager of the System Open Market
Account reported on developments in foreign
exchange markets and on System open market
transactions in foreign currencies during the period
February 1, 1995, through March 27, 1995. By
unanimous vote, the Committee ratified these
transactions.
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 February 1, 1995, through March 27, 1995. By
unanimous vote, the Committee ratified these
transactions.
The Committee then turned to a discussion of the
economic and financial outlook and the implementation of monetary policy over the intermeeting
period ahead. A summary of the economic and
financial information available at the time of the
meeting and of the Committee's discussion is provided below, followed by the domestic policy directive that was approved by the Committee and
issued to the Federal Reserve Bank of New York.
The information reviewed at this meeting suggested that the expansion of economic activity had
moderated considerably in early 1995. Slower
growth in consumer spending, associated in part
with a sharp decline in expenditures for motor
vehicles, and weakness in housing purchases were
factors in the moderation. Despite signs of some
weakening in final demand, however, further sizable gains had been recorded in industrial production and payroll employment, and overall rates of
resource utilization remained high. Broad indexes
of consumer and producer prices had risen more
rapidly on average over January and February, but
wages had shown no sign of an acceleration.
Nonfarm payroll employment increased considerably over January and February, although the
average monthly advance was somewhat smaller
than that of 1994. Further brisk job gains were
recorded in the January-February period in manufacturing; hiring in retail and wholesale trade and
in the service-producing sector slowed a bit; and
construction payrolls changed little on balance. The
average workweek of production or nonsupervisory workers remained at a high level over the
two months. The civilian unemployment rate rose
Minutes of the Federal Open Market Committee
in January but fell back in February to its December level of 5.4 percent.
The expansion in industrial production also moderated in January and February from the rapid pace
of last year. Manufacturing production grew less
rapidly, with output gains down sharply in February for consumer durable goods and construction
supplies. Mining production continued to be sluggish. By contrast, the output of utilities surged
during the January-February period as winter temperatures, which had been unusually warm, moved
back toward normal. Capacity utilization rates,
which were little changed over the first two months
of the year, remained high.
Retail sales fell in February, reversing most of a
sizable rise in January. The February declines in
sales were widespread, with slippage evident at
most types of retail outlets. Most indicators of
housing activity had weakened in recent months in
lagged response to the earlier rise in mortgage
interest rates. Housing starts fell sharply in January
and edged still lower in February; these declines
more than erased the gains that had been posted on
balance over the closing months of 1994. A substantial drop in sales of existing homes in January
(latest data) extended the trend that had been evident for some months.
Shipments of nondefense capital goods recorded
another strong advance in February. Shipments of
office and computing equipment rebounded in
February from declines in December and January,
and demand for most other types of equipment
remained brisk. Business outlays for heavy trucks
fell back slightly in February after a surge in
January. While there were tentative signs in the
recent orders data of some deceleration in business
equipment spending, the still-growing backlog of
unfilled orders suggested further solid expansion in
business spending on equipment. Nonresidential
construction activity had been trending appreciably
higher over the past two years; however, a slowdown in spending by public utilities in December
and January, in an environment of uncertainty
related to pending deregulation, and a third straight
monthly decline in permit issuance for nonresidential structures in February pointed to some softening in the uptrend.
Business inventory investment surged in January
after a slowdown in December; excluding a large
increase in stocks of motor vehicles at the wholesale and retail levels, inventories rose in January at
691
about the average rate of the final three quarters of
1994. In manufacturing, inventory accumulation
outpaced sales in January; the stocks-to-sales ratio
edged higher but was still near historical lows. At
wholesale establishments, inventory accumulation
picked up in January as a large rise in automotive
inventories more than offset a reduced increase in
stocks of other goods. The inventory-to-sales ratio
for the sector moved higher in January but
remained well within its range of the last several
years. At the retail level, inventories jumped in
January after a slight decline in December; almost
all the rise reflected increased stocks of motor
vehicles. The inventory-to-sales ratio for the retail
sector as a whole was unchanged in January and
remained near the middle of its range of recent
years; at automotive dealerships, the inventory-tosales ratio rose sharply while elsewhere the ratio
edged lower.
The nominal deficit on U.S. trade in goods and
services widened sharply in January from its
December level and its average rate in the fourth
quarter; some of the increase in the deficit was due
to trade with Mexico, but somewhat distorted
seasonal adjustment factors also may have been
involved. The value of exports of goods and services declined substantially in January after having
increased strongly in November and December.
The value of imports rose considerably in January,
continuing the pattern of the fourth quarter. The
export losses and import gains in January were
distributed widely across major trade categories.
The pace of economic recovery in the major foreign industrial countries appeared to have moderated in recent months. In the fourth quarter, economic activity declined in Japan and grew more
slowly in most of the other major industrial countries; growth had picked up in Canada. Available
data suggested that in the first quarter economic
expansion had slowed in all of the major foreign
industrial countries except Japan, where growth
appeared to be positive despite the Kobe
earthquake.
Consumer price increases in January and February were a little larger than the average monthly
rise in 1994. Food prices were unchanged on balance over the two-month period, while energy
prices were up only slightly. Producer prices of
finished goods increased in January and February
at the same rate as consumer prices; producer price
inflation for the two months also was higher than in
692
Federal Reserve Bulletin • July 1995
1994, with a steep rise in gasoline prices in January
contributing to the pickup. Producer prices of intermediate materials surged in the first two months of
this year after having accelerated sharply in the
second half of 1994. Average hourly earnings of
private production or nonsupervisory workers were
unchanged in February after a substantial rise in
January. For the two months combined, hourly
earnings increased at about the same average
monthly pace as in 1994.
At its meeting on January 31-February 1, 1995,
the Committee adopted a directive that called for
increasing somewhat the existing degree of pressure on reserve positions, taking account of a possible rise of Vi percentage point in the discount
rate. The directive approved by the Committee did
not include a presumption about the likely direction
of any further adjustments to policy during the
intermeeting period. Accordingly, the directive
stated that in the context of the Committee's longrun objectives for price stability and sustainable
economic growth, and giving careful consideration
to economic, financial, and monetary developments, somewhat greater or somewhat lesser
reserve restraint would be acceptable during the
intermeeting period. The reserve conditions associated with this directive were expected to be consistent with moderate growth of M2 and M3 over
coming months.
On the second day of the meeting, the Board of
Governors approved an increase of xh percentage
point in the discount rate, to 5'A percent. The rise
was made effective immediately and was passed
through fully to interest rates in reserve markets.
Open market operations during the intermeeting
period were conducted with a view to maintaining
the tighter policy stance adopted at the meeting and
implemented immediately thereafter. The federal
funds rate averaged a little less than 6 percent over
the intermeeting interval, and adjustment plus seasonal borrowing was a little below anticipated
levels.
Financial market participants generally had
expected a firming in reserve market conditions,
and consequently market interest rates showed little
immediate reaction. Subsequently, most market
interest rates declined considerably in response to
both incoming data that were seen as indicating an
appreciable slowing in the pace of economic
expansion and statements by Federal Reserve officials that were viewed as suggesting that the period
of monetary policy tightening might be coming to a
close. The largest declines in yields were concentrated in intermediate- and long-term obligations.
Stronger-than-expected earnings reports coupled
with heightened prospects for sustained, moderate
economic expansion and continued low inflation
boosted major indexes of equity prices to record
levels.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies fell substantially further. The dollar's
decline was particularly sharp against the Japanese
yen and the German mark, and post-World War II
record lows against these two currencies were
recorded. Declines in U.S. interest rates and concerns about the persistence of large U.S. trade and
fiscal deficits appeared to have contributed to the
dollar's drop. Continuing economic and financial
problems in Mexico, which resulted in further
depreciation on balance of the Mexican peso
against the dollar, also seemed to add to negative
sentiment toward the dollar because the process of
adjustment in the Mexican economy to the lower
value of the peso was viewed as implying reduced
imports from and increased exports to the United
States.
M2 declined, and growth of M3 slowed in February after sizable January gains; data for the first
part of March pointed to some recovery in both
aggregates. M2's weakness in February partly
reflected an unwinding of temporary increases in
January of its volatile components, including
demand deposits, overnight repurchase agreements,
and overnight Eurodollars; the weakness also
appeared to be associated with depositor efforts to
obtain higher returns by shifting funds into market
instruments. The slowdown in growth of M3 in
February was entirely attributable to the decline in
M2; its non-M2 component increased substantially
further as banks continued to rely heavily on managed liabilities to fund loan growth. Expansion of
total domestic nonfinancial debt had picked up a
little in recent months.
The staff forecast prepared for this meeting suggested that growth of economic activity was slowing and for some period ahead would average a
little less than the rate of increase in the economy's
potential output. The pace of the expansion seemed
to have slackened somewhat more than had been
anticipated at the last meeting; however, the recent
declines in long-term interest rates and the rally in
Minutes of the Federal Open Market Committee
stock prices were expected to provide additional
support for aggregate demand later in the year.
Moreover, the substantial depreciation of the dollar
against the yen and several European currencies
was acting to offset some of the effects on demand
of the previous tightening of reserve conditions.
The forecast continued to anticipate that in the
period ahead consumer spending would be
restrained by smaller gains in real incomes, the
substantial degree to which pent-up demands had
been satisfied, and the lagged effects of earlier
increases in interest rates on the demand for
durable goods. Business outlays for new equipment
would decelerate substantially in response to
slower growth of sales and profits. Homebuilding
was projected to decline somewhat further in the
near term and to remain at somewhat subdued
levels for a time in reflection of the damping effects
on housing demand of slower growth in jobs and
incomes and of the earlier rise in mortgage rates.
Developments in Mexico were likely to interrupt
only briefly a strong uptrend in U.S. exports, based
on sustained growth in the economies of other U.S.
trading partners. Considerable uncertainty continued to surround the federal fiscal outlook but, as in
the previous forecast, a moderate pace of deficit
reduction was assumed over the forecast horizon.
In the staff's judgment, the economy was operating beyond its long-run, noninflationary capacity,
and there remained a risk that higher inflation
could emerge if the expansion did not moderate
sufficiently.
In the Committee's discussion of current and
prospective economic developments, the members
agreed that the pace of the economic expansion
was moderating, though the extent of the slowdown was not yet clear. The effects of the policy
tightening implemented since early 1994 seemed to
be showing through in interest-sensitive sectors,
and those effects were expected to be reinforced by
some cutback in inventory accumulation from the
unsustainable rates of previous quarters. Quarters
of fairly slow growth were not unusual in a period
of expansion. On the whole, however, the economy
appeared to retain considerable forward momentum, with current imbalances seemingly of a relatively minor nature and in the process of being
corrected. Moreover, the recent declines in longterm interest rates, if these persisted, could provide
fresh support for interest-sensitive spending later in
1995 and in 1996. While opinions differed some
693
what with respect to both the likely extent of the
slowdown and the prognosis for inflation, the members generally agreed that the economy appeared to
be on a trajectory toward a more sustainable path
for economic activity. However, a number of members expressed concern that the slowdown might
not be sufficient to relieve the persisting pressures
on labor and capital resources, thereby portending
higher inflation.
In the course of the Committee's discussion,
members reported on widespread signs that business activity, while still quite strong in many areas,
was growing less rapidly on balance. Still, a number of factors pointed to continued solid expansion.
Business sentiment was generally described as
quite positive, though somewhat less ebullient than
in earlier months. Likewise, recent surveys suggested that consumer confidence remained very
favorable, though down slightly from recent peaks
by most measures. In addition to the favorable
recent developments in financial markets, bank
lending policies remained quite accommodative,
although business loan growth had slowed recently
after a period of unusual strength.
In their review of developments in key sectors of
the economy, members took note of the sluggishness in consumer spending that had emerged in
recent months in much of the country. To a considerable extent the recent weakness reflected a sharp
reduction in spending for motor vehicles, but there
also were signs in the most recent data of broader
declines in spending, especially for durable goods
other than automobiles. Some reduction in spending for durable goods could be expected in lagged
response to the policy tightening over the past year,
but a few members noted that unusual weather
might have led to the temporary postponement of
some discretionary purchases. In assessing the
recent spending patterns, it was difficult to determine whether they represented a temporary pause
or a more prolonged pullback by consumers. On
balance, however, growth in consumer spending
probably would slow somewhat further to a rate
more in line with the expansion in jobs and
incomes. Consumer spending would tend to be
sustained, however, by the ready availability of
consumer financing and the rise in bond and stock
prices, which had strengthened household balance
sheets and perhaps was helping to bolster consumer
confidence.
The housing market had weakened noticeably
694
Federal Reserve Bulletin • July 1995
according to incoming data and anecdotal reports
from around the country. The decline in home sales
that began in the latter part of 1994 had persisted,
and housing starts had fallen sharply in the early
part of the year as a consequence of the weaker
sales and a larger inventory of unsold homes. Partly
because of the higher mortgage rates that had prevailed for some time, members anticipated still soft
housing demand, particularly for single-family
houses. There had been some reports that recent
declines in mortgage interest rates were having a
mitigating effect. In some parts of the country, the
weakness in housing construction was being countered by further improvement in nonresidential construction activity. In other areas where commercial
real estate conditions remained soft, declines in
vacancy rates seemed to be preparing the way for a
pickup in commercial building activity.
Committee members anticipated that growth of
business investment in plant and equipment would
moderate from the extraordinary rate of the last
two years but that such investment would continue
to support growth in aggregate final demand during
the forecast period. The demand for durable equipment was expected to increase more gradually as
the growth of economic activity slowed and business profits tended to flatten out, and the available
data on equipment expenditures thus far in 1995
appeared to be in line with that expectation. However, some anecdotal reports suggested that investment in plant and equipment might be stronger
than expected in an environment of tight labor
supply and elevated levels of capacity utilization,
intense desires to control costs and improve competitiveness, and a still relatively low user cost of
capital. The desire for additional production capacity was reflected in spending for the construction
of commercial and industrial structures, which
remained on an uptrend.
The rapid rise in business inventories in recent
quarters had been sustainable in the context of
briskly increasing final sales, but with some further
accumulation early in the first quarter and economic growth projected to moderate, the rate of
inventory investment would have to adjust downward as well. While the timing and extent could
not be anticipated with any precision, a short-term
inventory correction process might already be
under way, with firms initiating cutbacks to production schedules to reflect smaller-than-expected
gains in sales over recent months. Members noted
that inventory-to-sales ratios already were at generally low levels, and they anticipated that any
desired adjustments to production would be made
quickly. In the circumstances, the size of the inventory correction and its effect on economic activity
would be limited. Moreover, reports of inventory
shortages in some industries suggested that many
firms might raise their desired inventory levels to
protect against shortfalls in materials needed in the
production process.
The defeat of the balanced budget amendment in
Congress had clouded the outlook for deficit reduction. Nonetheless, a moderately restrictive fiscal
policy that would provide for some progress
toward a balanced budget during the forecast
period was seen as a reasonable assumption. One
member observed that there was a risk of a more
restrictive fiscal policy arising out of the dynamics
of the current political debate. In any event, any
progress toward a balanced budget might be
expected to have a favorable effect on domestic
financial markets and perhaps also on the dollar in
foreign exchange markets.
Members commented that considerable uncertainty surrounded the outlook for the external sector, but for now it seemed reasonable to forecast
that this sector would make a small positive contribution, on balance, to the growth of economic
activity over the forecast period. In the near term,
economic developments in Mexico were leading to
lower U.S. exports and higher imports; anecdotal
reports suggested that the effects on trade flows and
local business activity tended to be felt most
strongly in states that border Mexico. However,
there were signs that conditions were stabilizing in
Mexico, and more generally the relatively robust
growth projected for the major trading partners of
the United States and the lower value of the dollar
now prevailing were expected to foster improvement in the nation's trade balance.
Members noted that while the pace of the expansion evidently had slowed, economic activity and
utilization of labor and other producer resources
were still at very high levels. Prices of many materials inputs to the production process had risen
sharply, but thus far there had been only a small
pickup in consumer prices. Likewise, the persisting
tightness in many labor markets had not to this
point fostered appreciable increases in wages. The
absence of a significant rise in prices of finished
goods or in wages might reflect in some measure
Minutes of the Federal Open Market Committee
the lags in the inflation transmission process, the
fruits of heavy business investments in new capacity and more productive equipment in recent years,
and perhaps structural changes in business organization that were raising the economy's capacity for
sustained, noninflationary activity. Members were
concerned, however, that despite continuing competitive pressures and some recent abatement in
materials prices, business firms were reporting
greater success in passing cost increases through to
prices. The depreciation of the dollar also would
add to inflationary pressures in the economy. In
these circumstances, the members generally concluded that some increase in inflation was likely in
coming months.
In the Committee's discussion of monetary policy for the intermeeting period ahead, all the members endorsed a proposal to maintain an unchanged
degree of pressure in reserve markets. The policy
tightening that had been implemented since early
1994 appeared to be exerting a desired restraining
effect on the growth of economic activity and associated demands for goods and services. But the
extent of the slowing in growth and its effects on
inflationary pressures were not yet clear. On balance, though, the available evidence tended to suggest that the economy might be moving toward a
growth path for economic activity that would be
consistent with limiting the uptick in inflation that
was currently being experienced. In discussing
their policy choices, several members noted the
relatively steep decline in the value of the dollar.
However, they believed that policy should not be
directed toward the achievement of a specific level
for the dollar but rather toward the implementation
of an effective anti-inflationary monetary policy,
taking account of all the factors bearing on the
economic outlook. In current circumstances, and
given the substantial uncertainties that were
involved, the members believed that it would be
prudent to pause and assess developments before
taking any further policy action.
With regard to possible adjustments to policy
during the intermeeting period, most members
expressed a preference for an asymmetric directive
tilted toward restraint. These members indicated
that near-term developments were not likely to call
for an adjustment to policy in either direction.
Nonetheless, with the economy expected to be
operating in the neighborhood of its potential, the
recent rise in inflation and the risk of an unex
695
pected impulse that could ratchet inflation even
higher suggested that an asymmetric directive
would be more consistent with the Committee's
objective of moving over time toward price stability. The economy retained considerable forward
momentum and, as had often happened in the past,
the recent slowdown in growth could prove to be
temporary, with additional monetary tightening
needed at some point to contain inflation. In this
connection a few members indicated that further
tightening might well be needed sooner rather than
later. An asymmetric directive also would provide
a clear signal of the Committee's intention to resist
higher inflation.
A few members preferred a symmetric directive.
These members agreed that additional policy
tightening might be needed if inflation began
to pick up. However, they saw an undesirably
weaker economic performance as being about
equally likely, and in their view this balance in the
risks to the outlook called for the adoption of a
symmetric directive. The Committee's determination to keep inflation under control would be appropriately conveyed, in their view, through future
actions rather than through the adoption of a tilt
toward restraint. However, these members indicated that they could accept an asymmetric intermeeting instruction.
At the conclusion of the Committee's discussion,
all the members indicated that they preferred or
could support a directive that called for maintaining the existing degree of pressure on reserve positions and that included a bias toward the possible
firming of reserve conditions during the intermeeting period. Accordingly, in the context of the Committee's long-run objectives for price stability and
sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, the Committee decided that somewhat greater reserve restraint would be acceptable
and slightly lesser reserve restraint might be acceptable during the intermeeting period. The reserve
conditions contemplated at this meeting were
expected to be consistent with moderate growth of
M2 and M3 over coming months.
At the conclusion of the meeting, the Federal
Reserve Bank of New York was authorized and
directed, until instructed otherwise by the Committee, to execute transactions in the System Account
in accordance with the following domestic policy
directive:
696
Federal Reserve Bulletin • July 1995
The information reviewed at this meeting suggests
that the expansion of economic activity has moderated
considerably in early 1995. Nonfarm payroll employment rose appreciably further in January and February,
but at a pace below the average monthly gain in 1994;
the civilian unemployment rate, after rising in January,
fell back in February to its December level of 5.4 percent. Advances in industrial production also moderated
in January and February, and capacity utilization rates
generally changed little from already high levels. Total
retail sales were about unchanged over the two months.
Housing starts have declined somewhat after posting
sizable gains on balance during the closing months of
1994. Orders for nondefense capital goods point to a still
strong expansion of spending on business equipment,
but with tentative signs of some deceleration; nonresidential construction has been trending appreciably
higher. The nominal deficit on U.S. trade in goods and
services widened sharply in January from its average
rate in the fourth quarter. Broad indexes of consumer and
producer prices increased faster on average over January
and February.
On February 1, 1995, the Board of Governors
approved an increase from 4 3 A to 5lA percent in the
discount rate, and in keeping with the Committee's
decision at the January 31-February 1 meeting, the
increase was allowed to show through fully to interest
rates in reserve markets. Nonetheless, most market interest rates have declined somewhat since the Committee
meeting; the largest declines have been concentrated
in intermediate- and long-term obligations. In foreign
exchange markets, the trade-weighted value of the dollar
in terms of the other G-10 currencies was down substantially further over the intermeeting period. The Mexican
peso has continued to depreciate against the dollar.
M2 and M3 weakened in February, though data for the
first part of March pointed to some rebound. Growth of
total domestic nonfinancial debt has picked up a little in
recent months.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at its meeting on
January 31-February 1 established ranges for growth
of M2 and M3 of 1 to 5 percent and 0 to 4 percent
respectively, measured from the fourth quarter of 1994
to the fourth quarter of 1995. The Committee anticipated
that money growth within these ranges would be consistent with its broad policy objectives. The monitoring
range for growth of total domestic nonfinancial debt was
lowered to 3 to 7 percent for the year. The behavior of
the monetary aggregates will continue to be evaluated in
the light of progress toward price level stability, movements in their velocities, and developments in the economy and financial markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. In the context of
the Committee's long-run objectives for price stability
and sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, somewhat greater reserve restraint would
or slightly lesser reserve restraint might be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with moderate
growth in M2 and M3 over coming months.
Votes for this action: Messrs. Greenspan, McDonough, Blinder, Hoenig, Kelley, Lindsey, Melzer, Ms.
Minehan, Mr. Moskow, Mses. Phillips and Yellen.
Votes against this action: None.
It was agreed that the next meeting of the Committee would be held on Tuesday, May 23, 1995.
The meeting adjourned at 1:15 p.m.
Donald L. Kohn
Secretary
697
Legal Developments
FINAL RULE—AMENDMENT
TO REGULATION
Section
BB
The Board of Governors is amending 12 C.F.R. Part 228,
its Regulation BB (Community Reinvestment Act). The
purpose of the Community Reinvestment Act regulation
is to establish the framework and criteria by which the
Federal financial supervisory agencies assess an institution's record of helping to meet the credit needs of its
community, including low- and moderate-income neighborhoods, consistent with safe and sound operations, and
to provide that the agencies' assessment shall be taken
into account in reviewing certain applications.
The final rule seeks to emphasize performance rather
than process, to promot consistency in evaluations, and
to eliminate unnecessary burden. As compared to the
1993 and 1994 proposals, the final rule reduces recordkeeping and reporting requirements and makes other
modifications and clarifications.
Effective July 1, 1995, 12 C.F.R. Part 228 is revised to
read as follows:
Part 228—Community Reinvestment (Regulation
Section
Section
Section
Section
228.25—Community development test for
wholesale or limited purpose banks.
228.26—Small bank performance standards.
228.27—Strategic plan.
228.28—Assigned ratings.
228.29—Effect of CRA performance on applications.
Subpart C—Records, Reporting, and Disclosure
Requirements
Section 228.41—Assessment area delineation.
Section 228.42—Data collection, reporting, and disclosure.
Section 228.43—Content and availability of public file.
Section 228.44—Public notice by banks.
Section 228.45—Publication of planned examination
schedule.
Subpart D—Transition Rules
Section 228.51—Transition rules.
BB)
1. The authority citation for Part 228 is revised to read as
follows:
APPENDIX A TO PART
Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843,
1844, and 2901 et seq.
APPENDIX B TO PART 228—CRA
2. Part 228 is amended by adding Subparts A through D
and Appendices A and B to read as follows:
228—RATINGS
NOTICE
Subpart A—General
Section 228.11—Authority, purposes, and scope.
Subpart A—General Section
Section 228.11—Authority, purposes, and scope.
Section 228.12—Definitions.
Subpart B—Standards for Assessing Performance
Section 228.21—Performance tests, standards,
ratings, in general.
Section 228.22—Lending test.
Section 228.23—Investment test.
Section 228.24—Service test.
and
(a) Authority. The Board of Governors of the Federal
Reserve System (the Board) issues this part to implement the Community Reinvestment Act (12 U.S.C. 2901
et seq.) (CRA). The regulations comprising this part are
issued under the authority of the CRA and under the
provisions of the United States Code authorizing the
Board:
(1) To conduct examinations of State-chartered banks
that are members of the Federal Reserve System
(12 U.S.C. 325);
(2) To conduct examinations of bank holding companies and their subsidiaries (12 U.S.C. 1844); and
698
Federal Reserve Bulletin • July 1995
(3) To consider applications for:
(i) Domestic branches by State member banks
(12 U.S.C. 321);
(ii) Mergers in which the resulting bank would be a
State member bank (12 U.S.C. 1828(c));
(iii) Formations of, acquisitions of banks by, and
mergers of, bank holding companies (12 U.S.C.
1842); and
(iv) The acquisition of savings associations by bank
holding companies (12 U.S.C. 1843).
(b) Purposes. In enacting the CRA, the Congress required each appropriate Federal financial supervisory
agency to assess an institution's record of helping to
meet the credit needs of the local communities in which
the institution is chartered, consistent with the safe and
sound operation of the institution, and to take this
record into account in the agency's evaluation of an application for a deposit facility by the institution. This
part is intended to carry out the purposes of the CRA
by:
(1) Establishing the framework and criteria by which
the Board assesses a bank's record of helping to meet
the credit needs of its entire community, including
low- and moderate-income neighborhoods, consistent
with the safe and sound operation of the bank; and
(2) Providing that the Board takes that record into
account in considering certain applications.
(c) Scope. (1) General. This part applies to all banks
except as provided in paragraph (c)(3) of this section.
(2) Foreign bank acquisitions. This part also applies
to an uninsured State branch (other than a limited
branch) of a foreign bank that results from an acquisition described in section 5(a)(8) of the International
Banking Act of 1978 (12 U.S.C. 3103(a)(8)). The
terms "State branch" and "foreign bank" have the
same meanings as in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101 et seq.y, the
term "uninsured State branch" means a State branch
the deposits of which are not insured by the Federal
Deposit Insurance Corporation; the term "limited
branch" means a State branch that accepts only deposits that are permissible for a corporation organized
under section 25A of the Federal Reserve Act
(12 U.S.C. 611 etseq.).
(3) Certain special purpose banks. This part does not
apply to special purpose banks that do not perform
commercial or retail banking services by granting
credit to the public in the ordinary course of business,
other than as incident to their specialized operations.
These banks include banker's banks, as defined in
12 U.S.C. 24 (Seventh), and banks that engage only in
one or more of the following activities: providing cash
management controlled disbursement services or serving as correspondent banks, trust companies, or clearing agents.
Section 228.12—Definitions.
For purposes of this part, the following definitions apply:
(a) Affiliate means any company that controls, is controlled by, or is under common control with another
company. The term "control" has the meaning given to
that term in 12 U.S.C. 1841(a)(2), and a company is
under common control with another company if both
companies are directly or indirectly controlled by the
same company.
(b) Area median income means:
(1) The median family income for the MSA, if a
person or geography is located in an MSA; or
(2) The statewide nonmetropolitan median family income, if a person or geography is located outside an
MSA.
(c) Assessment area means a geographic area delineated
in accordance with section 228.41.
(d) Automated teller machine (ATM) means an automated, unstaffed banking facility owned or operated by,
or operated exclusively for, the bank at which deposits
are received, cash dispersed, or money lent.
(e) Bank means a State member bank as that term is
defined in section 3(d)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(d)(2)), except as provided in
section 228.11(c)(3), and includes an uninsured State
branch (other than a limited branch) of a foreign bank
described in section 228.11(c)(2).
(f) Branch means a staffed banking facility approved as a
branch, whether shared or unshared, including, for example, a mini-branch in a grocery store or a branch operated in conjunction with any other local business or
nonprofit organization.
(g) CMSA means a consolidated metropolitan statistical
area as defined by the Director of the Office of Management and Budget.
(h) Community development means:
(1) Affordable housing (including multifamily rental
housing) for low- or moderate-income individuals;
(2) Community services targeted to low- or moderateincome individuals;
(3) Activities that promote economic development by
financing businesses or farms that meet the size eligibility standards of 13 C.F.R. 121.802(a)(2) or have
gross annual revenues of $1 million or less; or
(4) Activities that revitalize or stabilize low- or
moderate- income geographies.
(i) Community development loan means a loan that:
(1) Has as its primary purpose community development; and
(2) Except in the case of a wholesale or limited
purpose bank:
(i) Has not been reported or collected by the bank
or an affiliate for consideration in the bank's assessment as a home mortgage, small business, small
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farm, or consumer loan, unless it is a multifamily
dwelling loan (as described in Appendix A to Part
203 of this chapter); and
(ii) Benefits the bank's assessment area(s) or a
broader statewide or regional area that includes the
bank's assessment area(s).
(j) Community development service means a service that:
(1) Has as its primary purpose community development;
(2) Is related to the provision of financial services; and
(3) Has not been considered in the evaluation of the
bank's retail banking services under section 228.24(d).
(k) Consumer loan means a loan to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage, small business, or small farm loan. Consumer
loans include the following categories of loans:
(1) Motor vehicle loan, which is a consumer loan
extended for the purchase of and secured by a motor
vehicle;
(2) Credit card loan, which is a line of credit for
household, family, or other personal expenditures that
is accessed by a borrower's use of a "credit card," as
this term is defined in section 226.2 of this chapter;
(3) Home equity loan, which is a consumer loan
secured by a residence of the borrower;
(4) Other secured consumer loan, which is a secured
consumer loan that is not included in one of the other
categories of consumer loans; and
(5) Other unsecured consumer loan, which is an unsecured consumer loan that is not included in one of the
other categories of consumer loans.
(1) Geography means a census tract or a block numbering area delineated by the United States Bureau of the
Census in the most recent decennial census,
(m) Home mortgage loan means a "home improvement
loan" or a "home purchase loan" as defined in section 203.2 of this chapter,
(n) Income level includes:
(1) Low-income, which means an individual income
that is less than 50 percent of the area median income,
or a median family income that is less than 50 percent,
in the case of a geography.
(2) Moderate-income, which means an individual income that is at least 50 percent and less than
80 percent of the area median income, or a median
family income that is at least 50 and less than
80 percent, in the case of a geography.
(3) Middle-income, which means an individual income that is at least 80 percent and less than
120 percent of the area median income, or a median
family income that is at least 80 and less than
120 percent, in the case of a geography.
(4) Upper-income, which means an individual income
that is 120 percent or more of the area median income,
699
or a median family income that is 120 percent or
more, in the case of a geography,
(o) Limited purpose bank means a bank that offers only a
narrow product line (such as credit card or motor vehicle
loans) to a regional or broader market and for which a
designation as a limited purpose bank is in effect, in
accordance with section 228.25(b).
(p) Loan location. A loan is located as follows:
(1) A consumer loan is located in the geography
where the borrower resides;
(2) A home mortgage loan is located in the geography
where the property to which the loan relates is located; and
(3) A small business or small farm loan is located in
the geography where the main business facility or
farm is located or where the loan proceeds otherwise
will be applied, as indicated by the borrower.
(q) Loan production office means a staffed facility, other
than a branch, that is open to the public and that provides
lending-related services, such as loan information and
applications.
(r) MSA means a metropolitan statistical area or a primary metropolitan statistical area as defined by the
Director of the Office of Management and Budget,
(s) Qualified investment means a lawful investment, deposit, membership share, or grant that has as its primary
purpose community development,
(t) Small bank means a bank that, as of December 31 of
either of the prior two calendar years, had total assets of
less than $250 million and was independent or an affiliate of a holding company that, as of December 31 of
either of the prior two calendar years, had total banking
and thrift assets of less than $1 billion,
(u) Small business loan means a loan included in "loans
to small businesses" as defined in the instructions for
preparation of the Consolidated Report of Condition and
Income.
(v) Small farm loan means a loan included in "loans to
small farms" as defined in the instructions for preparation of the Consolidated Report of Condition and Income.
(w) Wholesale bank means a bank that is not in the
business of extending home mortgage, small business,
small farm, or consumer loans to retail customers, and
for which a designation as a wholesale bank is in effect,
in accordance with section 228.25(b).
Subpart B—Standards for Assessing Performance
Section 228.21—Performance tests, standards,
and ratings, in general.
(a) Performance tests and standards. The Board assesses
the CRA performance of a bank in an examination as
follows:
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Federal Reserve Bulletin • July 1995
(1) Lending, investment, and service tests. The Board
applies the lending, investment, and service tests, as
provided in sections 228.22 through 228.24, in evaluating the performance of a bank, except as provided in
paragraphs (a)(2), (a)(3), and (a)(4) of this section.
(2) Community development test for wholesale or
limited purpose banks. The Board applies the community development test for a wholesale or limited purpose bank, as provided in section 228.25, except as
provided in paragraph (a)(4) of this section.
(3) Small bank performance standards. The Board
applies the small bank performance standards as provided in section 228.26 in evaluating the performance
of a small bank or a bank that was a small bank during
the prior calendar year, unless the bank elects to be
assessed as provided in paragraphs (a)(1), (a)(2), or
(а)(4) of this section. The bank may elect to be assessed as provided in paragraph (a)(1) of this section
only if it collects and reports the data required for
other banks under section 228.42.
(4) Strategic plan. The Board evaluates the performance of a bank under a strategic plan if the bank
submits, and the Board approves, a strategic plan as
provided in section 228.27.
(b) Performance context. The Board applies the tests and
standards in paragraph (a) of this section and also considers whether to approve a proposed strategic plan in
the context of:
(1) Demographic data on median income levels, distribution of household income, nature of housing stock,
housing costs, and other relevant data pertaining to a
bank's assessment area(s);
(2) Any information about lending, investment, and
service opportunities in the bank's assessment area(s)
maintained by the bank or obtained from community
organizations, state, local, and tribal governments,
economic development agencies, or other sources;
(3) The bank's product offerings and business strategy
as determined from data provided by the bank;
(4) Institutional capacity and constraints, including
the size and financial condition of the bank, the economic climate (national, regional, and local), safety
and soundness limitations, and any other factors that
significantly affect the bank's ability to provide lending, investments, or services in its assessment area(s);
(5) The bank's past performance and the performance
of similarly situated lenders;
(б) The bank's public file, as described in section 228.43, and any written comments about the
bank's CRA performance submitted to the bank or the
Board; and
(7) Any other information deemed relevant by the
Board.
(c) Assigned ratings. The Board assigns to a bank one of
the following four ratings pursuant to section 228.28 and
Appendix A of this part: "outstanding"; "satisfactory";
"needs to improve"; or "substantial noncompliance" as
provided in 12 U.S.C. 2906(b)(2). The rating assigned by
the Board reflects the bank's record of helping to meet
the credit needs of its entire community, including lowand moderate-income neighborhoods, consistent with
the safe and sound operation of the bank,
(d) Safe and sound operations. This part and the CRA do
not require a bank to make loans or investments or to
provide services that are inconsistent with safe and sound
operations. To the contrary, the Board anticipates banks
can meet the standards of this part with safe and sound
loans, investments, and services on which the banks
expect to make a profit. Banks are permitted and encouraged to develop and apply flexible underwriting standards for loans that benefit low- or moderate-income
geographies or individuals, only if consistent with safe
and sound operations.
Section 228.22—Lending test.
(a) Scope of test. (1) The lending test evaluates a bank's
record of helping to meet the credit needs of its
assessment area(s) through its lending activities by
considering a bank's home mortgage, small business,
small farm, and community development lending. If
consumer lending constitutes a substantial majority of
a bank's business, the Board will evaluate the bank's
consumer lending in one or more of the following
categories: motor vehicle, credit card, home equity,
other secured, and other unsecured loans. In addition,
at a bank's option, the Board will evaluate one or
more categories of consumer lending, if the bank has
collected and maintained, as required in section
228.42(c)(1), the data for each category that the bank
elects to have the Board evaluate.
(2) The Board considers originations and purchases of
loans. The Board will also consider any other loan
data the bank may choose to provide, including data
on loans outstanding, commitments and letters of
credit.
(3) A bank may ask the Board to consider loans
originated or purchased by consortia in which the
bank participates or by third parties in which the bank
has invested only if the loans meet the definition of
community development loans and only in accordance
with paragraph (d) of this section. The Board will not
consider these loans under any criterion of the lending
test except the community development lending criterion.
(b) Performance criteria. The Board evaluates a bank's
lending performance pursuant to the following criteria:
(1) Lending activity. The number and amount of the
bank's home mortgage, small business, small farm,
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and consumer loans, if applicable, in the bank's assessment area(s);
(2) Geographic distribution. The geographic distribution of the bank's home mortgage, small business,
small farm, and consumer loans, if applicable, based
on the loan location, including:
(i) The proportion of the bank's lending in the
bank's assessment area(s);
(ii) The dispersion of lending in the bank's assessment area(s); and
(iii) The number and amount of loans in low-,
moderate-, middle-, and upper-income geographies
in the bank's assessment area(s);
(3) Borrower characteristics. The distribution, particularly in the bank's assessment area(s), of the bank's
home mortgage, small business, small farm, and consumer loans, if applicable, based on borrower characteristics, including the number and amount of:
(i) Home mortgage loans to low-, moderate-,
middle-, and upper-income individuals;
(ii) Small business and small farm loans to businesses and farms with gross annual revenues of
$1 million or less;
(iii) Small business and small farm loans by loan
amount at origination; and
(iv) Consumer loans, if applicable, to low-,
moderate-, middle-, and upper-income individuals;
(4) Community development lending. The bank's community development lending, including the number
and amount of community development loans, and
their complexity and innovativeness; and
(5) Innovative or flexible lending practices. The
bank's use of innovative or flexible lending practices
in a safe and sound manner to address the credit needs of
low- or moderate-income individuals or geographies.
(c) Affiliate lending. (1) At a bank's option, the Board
will consider loans by an affiliate of the bank, if the
bank provides data on the affiliate's loans pursuant to
section 228.42.
(2) The Board considers affiliate lending subject to the
following constraints:
(i) No affiliate may claim a loan origination or loan
purchase if another institution claims the same loan
origination or purchase; and
(ii) If a bank elects to have the Board consider loans
within a particular lending category made by one or
more of the bank's affiliates in a particular assessment area, the bank shall elect to have the Board
consider, in accordance with paragraph (c)(1) of
this section, all the loans within that lending category in that particular assessment area made by all
of the bank's affiliates.
(3) The Board does not consider affiliate lending in
assessing a bank's performance under paragraph
(b)(2)(i) of this section.
701
(d) Lending by a consortium or a third party. Community development loans originated or purchased by a
consortium in which the bank participates or by a third
party in which the bank has invested:
(1) Will be considered, at the bank's option, if the
bank reports the data pertaining to these loans under
section 228.42(b)(2); and
(2) May be allocated among participants or investors,
as they choose, for purposes of the lending test, except
that no participant or investor:
(i) May claim a loan origination or loan purchase if
another participant or investor claims the same loan
origination or purchase; or
(ii) May claim loans accounting for more than its
percentage share (based on the level of its participation or investment) of the total loans originated by
the consortium or third party.
(e) Lending performance rating. The Board rates a
bank's lending performance as provided in Appendix A
of this part.
Section 228.23—Investment test.
(a) Scope of test. The investment test evaluates a bank's
record of helping to meet the credit needs of its assessment area(s) through qualified investments that benefit
its assessment area(s) or a broader statewide or regional
area that includes the bank's assessment area(s).
(b) Exclusion. Activities considered under the lending or
service tests may not be considered under the investment
test.
(c) Affiliate investment. At a bank's option, the Board
will consider, in its assessment of a bank's investment
performance, a qualified investment made by an affiliate
of the bank, if the qualified investment is not claimed by
any other institution.
(d) Disposition of branch premises. Donating, selling on
favorable terms, or making available on a rent-free basis
a branch of the bank that is located in a predominantly
minority neighborhood to a minority depository institution or women's depository institution (as these terms
are defined in 12 U.S.C. 2907(b)) will be considered as a
qualified investment.
(e) Performance criteria. The Board evaluates the investment performance of a bank pursuant to the following criteria:
(1) The dollar amount of qualified investments;
(2) The innovativeness or complexity of qualified
investments;
(3) The responsiveness of qualified investments to
credit and community development needs; and
(4) The degree to which the qualified investments are
not routinely provided by private investors.
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Federal Reserve Bulletin • July 1995
(f) Investment performance rating. The Board rates a
bank's investment performance as provided in Appendix
A of this part.
Section 228.24—Service test.
(a) Scope of test. The service test evaluates a bank's
record of helping to meet the credit needs of its assessment area(s) by analyzing both the availability and effectiveness of a bank's systems for delivering retail banking
services and the extent and innovativeness of its community development services.
(b) Area(s) benefitted. Community development services
must benefit a bank's assessment area(s) or a broader
statewide or regional area that includes the bank's assessment area(s).
(c) Affiliate service. At a bank's option, the Board will
consider, in its assessment of a bank's service performance, a community development service provided by
an affiliate of the bank, if the community development
service is not claimed by any other institution.
(d) Performance criteria—retail banking services. The
Board evaluates the availability and effectiveness of a
bank's systems for delivering retail banking services,
pursuant to the following criteria:
(1) The current distribution of the bank's branches
among low-, moderate-, middle-, and upper-income
geographies;
(2) In the context of its current distribution of the
bank's branches, the bank's record of opening and
closing branches, particularly branches located in lowor moderate-income geographies or primarily serving
low- or moderate-income individuals;
(3) The availability and effectiveness of alternative
systems for delivering retail banking services (e.g.,
ATMs, ATMs not owned or operated by or exclusively
for the bank, banking by telephone or computer, loan
production offices, and bank-at-work or bank-by- mail
programs) in low- and moderate-income geographies
and to low- and moderate-income individuals; and
(4) The range of services provided in low-, moderate-,
middle-, and upper-income geographies and the degree to which the services are tailored to meet the
needs of those geographies.
(e) Performance criteria—community development services. The Board evaluates community development services pursuant to the following criteria:
(1) The extent to which the bank provides community
development services; and
(2) The innovativeness and responsiveness of community development services.
(f) Service performance rating. The Board rates a bank's
service performance as provided in Appendix A of this
part.
Section 228.25—Community development test
for wholesale or limited purpose banks.
(a) Scope of test. The Board assesses a wholesale or
limited purpose bank's record of helping to meet the
credit needs of its assessment area(s) under the community development test through its community development lending, qualified investments, or community development services.
(b) Designation as a wholesale or limited purpose bank.
In order to receive a designation as a wholesale or
limited purpose bank, a bank shall file a request, in
writing, with the Board, at least three months prior to the
proposed effective date of the designation. If the Board
approves the designation, it remains in effect until the
bank requests revocation of the designation or until one
year after the Board notifies the bank that the Board has
revoked the designation on its own initiative.
(c) Performance criteria. The Board evaluates the community development performance of a wholesale or limited purpose bank pursuant to the following criteria:
(1) The number and amount of community development loans (including originations and purchases of
loans and other community development loan data
provided by the bank, such as data on loans outstanding, commitments, and letters of credit), qualified
investments, or community development services;
(2) The use of innovative or complex qualified investments, community development loans, or community
development services and the extent to which the
investments are not routinely provided by private investors; and
(3) The bank's responsiveness to credit and community development needs.
(d) Indirect activities. At a bank's option, the Board will
consider in its community development performance
assessment:
(1) Qualified investments or community development
services provided by an affiliate of the bank, if the
investments or services are not claimed by any other
institution; and
(2) Community development lending by affiliates,
consortia and third parties, subject to the requirements
and limitations in section 228.22(c) and (d).
(e) Benefit to assessment area(s). (1) Benefit inside
assessment area(s). The Board considers all qualified
investments, community development loans, and community development services that benefit areas within
the bank's assessment area(s) or a broader statewide
or regional area that includes the bank's assessment
area(s).
(2) Benefit outside assessment area(s). The Board
considers the qualified investments, community development loans, and community development services
that benefit areas outside the bank's assessment
Legal Developments
area(s), if the bank has adequately addressed the needs
of its assessment area(s).
(f) Community development performance rating. The
Board rates a bank's community development performance as provided in Appendix A of this part.
Section 228.26—Small bank performance
standards.
(a) Performance criteria. The Board evaluates the record
of a small bank, or a bank that was a small bank during
the prior calendar year, of helping to meet the credit
needs of its assessment area(s) pursuant to the following
criteria:
(1) The bank's loan-to-deposit ratio, adjusted for seasonal variation and, as appropriate, other lendingrelated activities, such as loan originations for sale to
the secondary markets, community development
loans, or qualified investments;
(2) The percentage of loans and, as appropriate, other
lending-related activities located in the bank's assessment area(s);
(3) The bank's record of lending to and, as appropriate, engaging in other lending-related activities for
borrowers of different income levels and businesses
and farms of different sizes;
(4) The geographic distribution of the bank's loans;
and
(5) The bank's record of taking action, if warranted, in
response to written complaints about its performance
in helping to meet credit needs in its assessment
area(s).
(b) Small bank performance rating. The Board rates the
performance of a bank evaluated under this section as
provided in Appendix A of this part.
Section 228.27—Strategic plan.
(a) Alternative election. The Board will assess a bank's
record of helping to meet the credit needs of its assessment area(s) under a strategic plan if:
(1) The bank has submitted the plan to the Board as
provided for in this section;
(2) The Board has approved the plan;
(3) The plan is in effect; and
(4) The bank has been operating under an approved
plan for at least one year.
(b) Data reporting. The Board's approval of a plan does
not affect the bank's obligation, if any, to report data as
required by section 228.42.
(c) Plans in general. (1) Term. A plan may have a term
of no more than five years, and any multi-year plan
must include annual interim measurable goals under
which the Board will evaluate the bank's performance.
703
(2) Multiple assessment areas. A bank with more than
one assessment area may prepare a single plan for all
of its assessment areas or one or more plans for one or
more of its assessment areas.
(3) Treatment of affiliates. Affiliated institutions may
prepare a joint plan if the plan provides measurable
goals for each institution. Activities may be allocated
among institutions at the institutions' option, provided
that the same activities are not considered for more
than one institution.
(d) Public participation in plan development. Before
submitting a plan to the Board for approval, a bank shall:
(1) Informally seek suggestions from members of the
public in its assessment area(s) covered by the plan
while developing the plan;
(2) Once the bank has developed a plan, formally
solicit public comment on the plan for at least 30 days
by publishing notice in at least one newspaper of
general circulation in each assessment area covered by
the plan; and
(3) During the period of formal public comment,
make copies of the plan available for review by the
public at no cost at all offices of the bank in any
assessment area covered by the plan and provide
copies of the plan upon request for a reasonable fee to
cover copying and mailing, if applicable.
(e) Submission of plan. The bank shall submit its plan to
the Board at least three months prior to the proposed
effective date of the plan. The bank shall also submit
with its plan a description of its informal efforts to seek
suggestions from members of the public, any written
public comment received, and, if the plan was revised in
light of the comment received, the initial plan as released
for public comment.
(f) Plan content. (1) Measurable goals, (i) A bank shall
specify in its plan measurable goals for helping to
meet the credit needs of each assessment area covered by the plan, particularly the needs of low- and
moderate-income geographies and low- and
moderate-income individuals, through lending, investment, and services, as appropriate,
(ii) A bank shall address in its plan all three performance categories and, unless the bank has been
designated as a wholesale or limited purpose bank,
shall emphasize lending and lending-related activities. Nevertheless, a different emphasis, including a
focus on one or more performance categories, may
be appropriate if responsive to the characteristics
and credit needs of its assessment area(s), considering public comment and the bank's capacity and
constraints, product offerings, and business strategy(2) Confidential information. A bank may submit additional information to the Board on a confidential
basis, but the goals stated in the plan must be suffi-
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Federal Reserve Bulletin • July 1995
ciently specific to enable the public and the Board to
judge the merits of the plan.
(3) Satisfactory and outstanding goals. A bank shall
specify in its plan measurable goals that constitute
"satisfactory" performance. A plan may specify measurable goals that constitute "outstanding" performance. If a bank submits, and the Board approves,
both "satisfactory" and "outstanding" performance
goals, the Board will consider the bank eligible for an
"outstanding" performance rating.
(4) Election if satisfactory goals not substantially met.
A bank may elect in its plan that, if the bank fails to
meet substantially its plan goals for a satisfactory
rating, the Board will evaluate the bank's performance
under the lending, investment, and service tests, the
community development test, or the small bank performance standards, as appropriate.
(g) Plan approval. (1) Timing. The Board will act upon a
plan within 60 calendar days after the Board receives
the complete plan and other material required under
paragraph (d) of this section. If the Board fails to act
within this time period, the plan shall be deemed
approved unless the Board extends the review period
for good cause.
(2) Public participation. In evaluating the plan's
goals, the Board considers the public's involvement in
formulating the plan, written public comment on the
plan, and any response by the bank to public comment
on the plan.
(3) Criteria for evaluating plan. The Board evaluates
a plan's measurable goals using the following criteria,
as appropriate:
(i) The extent and breadth of lending or lendingrelated activities, including, as appropriate, the distribution of loans among different geographies,
businesses and farms of different sizes, and individuals of different income levels, the extent of community development lending, and the use of innovative or flexible lending practices to address credit
needs;
(ii) The amount and innovativeness, complexity,
and responsiveness of the bank's qualified investments; and
(iii) The availability and effectiveness of the bank's
systems for delivering retail banking services and
the extent and innovativeness of the bank's community development services.
(h) Plan amendment. During the term of a plan, a bank
may request the Board to approve an amendment to the
plan on grounds that there has been a material change in
circumstances. The bank shall develop an amendment to
a previously approved plan in accordance with the public participation requirements of paragraph (c) of this
section.
(i) Plan assessment. The Board approves the goals and
assesses performance under a plan as provided for in
Appendix A of this part.
Section 228.28—Assigned ratings.
(a) Ratings in general. Subject to paragraphs (b) and (c)
of this section, the Board assigns to a bank a rating of
"outstanding," "satisfactory," "needs to improve," or
"substantial noncompliance" based on the bank's performance under the lending, investment and service tests,
the community development test, the small bank performance standards, or an approved strategic plan, as applicable.
(b) Lending, investment, and service tests. The Board
assigns a rating for a bank assessed under the lending,
investment, and service tests in accordance with the
following principles:
(1) A bank that receives an "outstanding" rating on
the lending test receives an assigned rating of at least
"satisfactory";
(2) A bank that receives an "outstanding" rating on
both the service test and the investment test and a
rating of at least "high satisfactory" on the lending
test receives an assigned rating of "outstanding"; and
(3) No bank may receive an assigned rating of "satisfactory" or higher unless it receives a rating of at least
"low satisfactory" on the lending test.
(c) Effect of evidence of discriminatory or other illegal
credit practices. Evidence of discriminatory or other
illegal credit practices adversely affects the Board's evaluation of a bank's performance. In determining the effect
on the bank's assigned rating, the Board considers the
nature and extent of the evidence, the policies and procedures that the bank has in place to prevent discriminatory or other illegal credit practices, any corrective action that the bank has taken or has committed to take,
particularly voluntary corrective action resulting from
self-assessment, and other relevant information.
Section 228.29—Effect of CRA performance on
applications.
(a) CRA performance. Among other factors, the Board
takes into account the record of performance under the
CRA of:
(1) Each applicant bank for the:
(i) Establishment of a domestic branch by a State
member bank; and
(ii) Merger, consolidation, acquisition of assets, or
assumption of liabilities requiring approval under
the Bank Merger Act (12 U.S.C. 1828(c)) if the
acquiring, assuming, or resulting bank is to be a
State member bank; and
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(2) Each insured depository institution (as defined in
12 U.S.C. 1813) controlled by an applicant and subsidiary bank or savings association proposed to be
controlled by an applicant:
(i) To become a bank holding company in a transaction that requires approval under section 3 of the
Bank Holding Company Act (12 U.S.C. 1842);
(ii) To acquire ownership or control of shares or all
or substantially all of the assets of a bank, to cause
a bank to become a subsidiary of a bank holding
company, or to merge or consolidate a bank holding
company with any other bank holding company in a
transaction that requires approval under section 3 of
the Bank Holding Company Act (12 U.S.C. 1842);
and
(iii) To own, control or operate a savings association in a transaction that requires approval under
section 4 of the Bank Holding Company Act
(12 U.S.C. 1843).
(b) Interested parties. In considering CRA performance
in an application described in paragraph (a) of this
section, the Board takes into account any views expressed by interested parties that are submitted in accordance with the Board's Rules of Procedure set forth in
part 262 of this chapter.
(c) Denial or conditional approval of application. A
bank's record of performance may be the basis for
denying or conditioning approval of an application listed
in paragraph (a) of this section.
(d) Definitions. For purposes of paragraph (a)(2) of this
section, "bank," "bank holding company," "subsidiary," and "savings association" have the meanings
given to those terms in section 2 of the Bank Holding
Company Act (12 U.S.C. 1841).
Subpart C—Records, Reporting, and Disclosure
Requirements
Section 228.41—Assessment area delineation.
(a) In general. A bank shall delineate one or more
assessment areas within which the Board evaluates the
bank's record of helping to meet the credit needs of its
community. The Board does not evaluate the bank's
delineation of its assessment area(s) as a separate performance criterion, but the Board reviews the delineation
for compliance with the requirements of this section.
(b) Geographic area(s) for wholesale or limited purpose
banks. The assessment area(s) for a wholesale or limited
purpose bank must consist generally of one or more
MSAs (using the MSA boundaries that were in effect as
of January 1 of the calendar year in which the delineation is made) or one or more contiguous political subdivisions, such as counties, cities, or towns, in which the
705
bank has its main office, branches, and deposit-taking
ATMs.
(c) Geographic area(s) for other banks. The assessment
area(s) for a bank other than a wholesale or limited
purpose bank must:
(1) Consist generally of one or more MSAs (using the
MSA boundaries that were in effect as of January 1 of
the calendar year in which the delineation is made) or
one or more contiguous political subdivisions, such as
counties, cities, or towns; and
(2) Include the geographies in which the bank has its
main office, its branches, and its deposit-taking ATMs,
as well as the surrounding geographies in which the
bank has originated or purchased a substantial portion of its loans (including home mortgage loans,
small business and small farm loans, and any other
loans the bank chooses, such as those consumer loans
on which the bank elects to have its performance
assessed).
(d) Adjustments to geographic area(s). A bank may
adjust the boundaries of its assessment area(s) to include only the portion of a political subdivision that it
reasonably can be expected to serve. An adjustment is
particularly appropriate in the case of an assessment
area that otherwise would be extremely large, of unusual configuration, or divided by significant geographic barriers.
(e) Limitations on the delineation of an assessment area.
Each bank's assessment area(s):
(1) Must consist only of whole geographies;
(2) May not reflect illegal discrimination;
(3) May not arbitrarily exclude low- or moderateincome geographies, taking into account the bank's
size and financial condition; and
(4) May not extend substantially beyond a CMSA
boundary or beyond a state boundary unless the assessment area is located in a multistate MSA. If a
bank serves a geographic area that extends substantially beyond a state boundary, the bank shall delineate separate assessment areas for the areas in each
state. If a bank serves a geographic area that extends
substantially beyond a CMSA boundary, the bank
shall delineate separate assessment areas for the areas
inside and outside the CMSA.
(f) Banks serving military personnel. Notwithstanding
the requirements of this section, a bank whose business
predominantly consists of serving the needs of military
personnel or their dependents who are not located within
a defined geographic area may delineate its entire deposit customer base as its assessment area.
(g) Use of assessment area(s). The Board uses the assessment area(s) delineated by a bank in its evaluation of
the bank's CRA performance unless the Board determines that the assessment area(s) do not comply with the
requirements of this section.
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Federal Reserve Bulletin • July 1995
Section 228.42—Data collection, reporting, and
disclosure.
(a) Loan information required to be collected and maintained. A bank, except a small bank, shall collect, and
maintain in machine readable form (as prescribed by the
Board) until the completion of its next C R A examination, the following data for each small business or small
farm loan originated or purchased by the bank:
(1) A unique number or alpha-numeric symbol that
can be used to identify the relevant loan file;
(2) The loan amount at origination;
(3) The loan location; and
(4) An indicator whether the loan was to a business or
farm with gross annual revenues of $1 million or less.
(b) Loan information required to be reported. A bank,
except a small bank or a bank that was a small bank
during the prior calendar year, shall report annually by
March 1 to the Board in machine readable form (as
prescribed by the Board) the following data for the prior
calendar year:
(1) Small business and small farm loan data. For each
geography in which the bank originated or purchased
a small business or small farm loan, the aggregate
number and amount of loans:
(i) With an amount at origination of $100,000 or
less;
(ii) With amount at origination of more than
$100,000 but less than or equal to $250,000;
(iii) With an amount at origination of more than
$250,000; and
(iv) To businesses and farms with gross annual
revenues of $1 million or less (using the revenues
that the bank considered in making its credit decision);
(2) Community development loan data. The aggregate
number and aggregate amount of community development loans originated or purchased; and
(3) Home mortgage loans. If the bank is subject to
reporting under part 203 of this chapter, the location
of each home mortgage loan application, origination,
or purchase outside the MSAs in which the bank has a
home or branch office (or outside any MSA) in accordance with the requirements of part 203 of this chapter.
(c) Optional data collection and maintenance.
(1) Consumer loans. A bank may collect and maintain
in machine readable form (as prescribed by the Board)
data for consumer loans originated or purchased by
the bank for consideration under the lending test. A
bank may maintain data for one or more of the following categories of consumer loans: motor vehicle,
credit card, home equity, other secured, and other
unsecured. If the bank maintains data for loans in a
certain category, it shall maintain data for all loans
originated or purchased within that category. The bank
shall maintain data separately for each category, including for each loan:
(i) A unique number or alpha-numeric symbol that
can be used to identify the relevant loan file;
(ii) The loan amount at origination or purchase;
(iii) The loan location; and
(iv) The gross annual income of the borrower that
the bank considered in making its credit decision.
(2) Other loan data. At its option, a bank may provide
other information concerning its lending performance,
including additional loan distribution data.
(d) Data on affiliate lending. A bank that elects to have
the Board consider loans by an affiliate, for purposes of
the lending or community development test or an approved strategic plan, shall collect, maintain, and report
for those loans the data that the bank would have collected, maintained, and reported pursuant to paragraphs
(a), (b), and (c) of this section had the loans been
originated or purchased by the bank. For home mortgage
loans, the bank shall also be prepared to identify the
home mortgage loans repotted under part 203 of this
chapter by the affiliate.
(e) Data on lending by a consortium or a third party. A
bank that elects to have the Board consider community
development loans by a consortium or third party, for
purposes of the lending or community development tests
or an approved strategic plan, shall report for those loans
the data that the bank would have reported under paragraph (b)(2) of this section had the loans been originated
or purchased by the bank.
(f) Small banks electing evaluation under the lending,
investment, and service tests. A bank that qualifies for
evaluation under the small bank performance standards
but elects evaluation under the lending, investment, and
service tests shall collect, maintain, and report the data
required for other banks pursuant to paragraphs (a) and
(b) of this section.
(g) Assessment area data. A bank, except a small bank
or a bank that was a small bank during the prior calendar
year, shall collect and report to the Board by March 1 of
each year a list for each assessment area showing the
geographies within the area.
(h) CRA Disclosure Statement. The Board prepares annually for each bank that reports data pursuant to this
section a CRA Disclosure Statement that contains, on a
state-by-state basis:
(1) For each county (and for each assessment area
smaller than a county) with a population of 500,000
persons or fewer in which the bank reported a small
business or small farm loan:
(i) The number and amount of small business and
small farm loans reported as originated or purchased located in low-, moderate-, middle-, and
upper-income geographies;
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(ii) A list grouping each geography according to
whether the geography is low-, moderate-, middle-,
or upper-income;
(iii) A list showing each geography in which the
bank reported a small business or small farm loan;
and
(iv) The number and amount of small business and
small farm loans to businesses and farms with gross
annual revenues of $1 million or less;
(2) For each county (and for each assessment area
smaller than a county) with a population in excess of
500,000 persons in which the bank reported a small
business or small farm loan:
(i) The number and amount of small business and
small farm loans reported as originated or purchased located in geographies with median income
relative to the area median income of less than
10 percent, 10 or more but less than 20 percent, 20
or more but less than 30 percent, 30 or more but
less than 40 percent, 40 or more but less than
50 percent, 50 or more but less than 60 percent,
60 or more but less than 70 percent, 70 or more
but less than 80 percent, 80 or more but less than
90 percent, 90 or more but less than 100 percent,
100 or more but less than 110 percent, 110 or more
but less than 120 percent, and 120 percent or more;
(ii) A list grouping each geography in the county or
assessment area according to whether the median
income in the geography relative to the area median
income is less than 10 percent, 10 or more but less
than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or
more but less than 50 percent, 50 or more but less
than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or
more but less than 90 percent, 90 or more but less
than 100 percent, 100 or more but less than
110 percent, 110 or more but less than 120 percent,
and 120 percent or more;
(iii) A list showing each geography in which the
bank reported a small business or small farm loan;
and
(iv) The number and amount of small business and
small farm loans to businesses and farms with gross
annual revenues of $1 million or less;
(3) The number and amount of small business and
small farm loans located inside each assessment area
reported by the bank and the number and amount of
small business and small farm loans located outside
the assessment area(s) reported by the bank; and
(4) The number and amount of community development loans reported as originated or purchased.
(i) Aggregate disclosure statements. The Board, in conjunction with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and
707
the Office of Thrift Supervision, prepares annually, for
each MSA (including an MSA that crosses a state boundary) and the non-MSA portion of each state, an aggregate disclosure statement of small business and small
farm lending by all institutions subject to reporting under this part or parts 25, 345, or 563e of this title. These
disclosure statements indicate, for each geography, the
number and amount of all small business and small farm
loans originated or purchased by reporting institutions,
except that the Board may adjust the form of the disclosure if necessary, because of special circumstances, to
protect the privacy of a borrower or the competitive
position of an institution.
(j) Central data depositories. The Board makes the
aggregate disclosure statements, described in paragraph
(i) of this section, and the individual bank CRA Disclosure Statements, described in paragraph (h) of this section, available to the public at central data depositories.
The Board publishes a list of the depositories at which
the statements are available.
Section 228.43—Content and availability of
public file.
(a) Information available to the public. A bank shall
maintain a public file that includes the following information:
(1) All written comments received from the public for
the current year and each of the prior two calendar
years that specifically relate to the bank's performance
in helping to meet community credit needs, and any
response to the comments by the bank, if neither the
comments nor the responses contain statements that
reflect adversely on the good name or reputation of
any persons other than the bank or publication of
which would violate specific provisions of law;
(2) A copy of the public section of the bank's most
recent CRA Performance Evaluation prepared by the
Board. The bank shall place this copy in the public file
within 30 business days after its receipt from the
Board;
(3) A list of the bank's branches, their street addresses, and geographies;
(4) A list of branches opened or closed by the bank
during the current year and each of the prior two
calendar years, their street addresses, and geographies;
(5) A list of services (including hours of operation,
available loan and deposit products, and transaction
fees) generally offered at the bank's branches and
descriptions of material differences in the availability
or cost of services at particular branches, if any. At its
option, a bank may include information regarding the
availability of alternative systems for delivering retail
banking services (e.g., ATMs, ATMs not owned or
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Federal Reserve Bulletin • July 1995
operated by or exclusively for the bank, banking by
telephone or computer, loan production offices, and
bank-at-work or bank-by-mail programs);
(6) A map of each assessment area showing the
boundaries of the area and identifying the geographies
contained within the area, either on the map or in a
separate list; and
(7) Any other information the bank chooses,
(b) Additional information available to the public.
(1) Banks other than small banks. A bank, except a
small bank or a bank that was a small bank during the
prior calendar year, shall include in its public file the
following information pertaining to the bank and its
affiliates, if applicable, for each of the prior two calendar years:
(i) If the bank has elected to have one or more
categories of its consumer loans considered under
the lending test, for each of these categories, the
number and amount of loans:
(A) To low-, moderate-, middle-, and upperincome individuals;
(B) Located in low-, moderate-, middle-, and
upper-income census tracts; and
(C) Located inside the bank's assessment area(s)
and outside the bank's assessment area(s); and
(ii) The bank's CRA Disclosure Statement. The
bank shall place the statement in the public file
within three business days of its receipt from the
Board.
(2) Banks required to report Home Mortgage Disclosure Act (HMDA) data. A bank required to report
home mortgage loan data pursuant part 203 of this
chapter shall include in its public file a copy of the
HMDA Disclosure Statement provided by the Federal
Financial Institutions Examination Council pertaining
to the bank for each of the prior two calendar years. In
addition, a bank that elected to have the Board consider the mortgage lending of an affiliate for any of
these years shall include in its public file the affiliate's
HMDA Disclosure Statement for those years. The
bank shall place the statement(s) in the public file
within three business days after its receipt.
(3) Small banks. A small bank or a bank that was a
small bank during the prior calendar year shall include
in its public file:
(i) The bank's loan-to-deposit ratio for each quarter
of the prior calendar year and, at its option, additional data on its loan-to-deposit ratio; and
(ii) The information required for other banks by
paragraph (b)(1) of this section, if the bank has
elected to be evaluated under the lending, investment, and service tests.
(4) Banks with strategic plans. A bank that has been
approved to be assessed under a strategic plan shall
include in its public file a copy of that plan. A bank
need not include information submitted to the Board
on a confidential basis in conjunction with the plan.
(5) Banks with less than satisfactory ratings. A bank
that received a less than satisfactory rating during its
most recent examination shall include in its public file
a description of its current efforts to improve its performance in helping to meet the credit needs of its entire
community. The bank shall update the description
quarterly.
(c) Location of public information. A bank shall make
available to the public for inspection upon request and at
no cost the information required in this section as follows:
(1) At the main office and, if an interstate bank, at one
branch office in each state, all information in the
public file; and
(2) At each branch:
(i) A copy of the public section of the bank's most
recent CRA Performance Evaluation and a list of
services provided by the branch; and
(ii) Within five calendar days of the request, all the
information in the public file relating to the assessment area in which the branch is located.
(d) Copies. Upon request, a bank shall provide copies,
either on paper or in another form acceptable to the
person making the request, of the information in its
public file. The bank may charge a reasonable fee not to
exceed the cost of copying and mailing (if applicable).
(e) Updating. Except as otherwise provided in this section, a bank shall ensure that the information required by
this section is current as of April 1 of each year.
Section 228.44—Public notice by banks.
A bank shall provide in the public lobby of its main
office and each of its branches the appropriate public
notice set forth in Appendix B of this part. Only a branch
of a bank having more than one assessment area shall
include the bracketed material in the notice for branch
offices. Only a bank that is an affiliate of a holding
company shall include the next to the last sentence of the
notices. A bank shall include the last sentence of the
notices only if it is an affiliate of a holding company that
is not prevented by statute from acquiring additional
banks.
Section 228.45—Publication of planned
examination schedule.
The Board publishes at least 30 days in advance of the
beginning of each calendar quarter a list of banks scheduled for CRA examinations in that quarter.
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Subpart D—Transition Rules
Section 228.51—Transition rules.
(a) Effective date. Sections of this part become applicable over a period of time in accordance with the schedule
set forth in paragraph (c) of this section.
(b) Data collection and reporting; strategic plan; performance tests and standards.
(1) Data collection and reporting, (i) On January 1,
1996, the data collection requirements set forth in
section 228.42 (except section 228.42(b) and (g)) become applicable.
(ii) On January 1, 1997, the data reporting requirements set forth in section 228.42(b) and (g) become
applicable.
(2) Small banks. Beginning January 1, 1996, the Board
evaluates banks that qualify for the small bank performance standards described in section 228.26 under
that section.
(3) Strategic plan. Beginning January 1, 1996, a bank
that elects to be evaluated under an approved strategic
plan pursuant to section 228.27 may submit its strategic plan to the Board for approval.
(4) Other performance tests, (i) Beginning January 1,
1996, a bank may elect to be evaluated under the
pertinent revised performance tests described in sections 228.22, 228.23, 228.24, and 228.25, if the bank
provides the necessary data to permit evaluation.
(ii) Beginning July 1, 1997, the Board evaluates all
banks under the pertinent revised performance tests.
(c) Schedule. (1) On July 1, 1995, sections 228.11,
228.12, 228.29, and 228.51 become applicable, and sections 228.1, 228.2, 228.8, and 228.100 expire.
(2) On January 1, 1996, section 228.41 and the pertinent provisions of Subpart B of this part will apply to
banks that elect to be evaluated under sections 228.22
through 228.25, banks that submit for approval strategic plans under section 228.27, and banks that qualify
for the small bank performance standards described in
section 228.26.
(3) On January 1, 1996, sections 228.42 (except section 228.42(b) and (g)) and 228.45 become applicable.
(4) On January 1, 1997, sections 228.41 and 228.42(b)
and (g) become applicable.
(5) On July 1, 1997, sections 228.21 through 228.28,
228.43, and 228.44 become applicable, and sections
228.3 through 228.7 and 228.51 expire.
APPENDIX A TO PART
228—RATINGS
(a) Ratings in general. (1) In assigning a rating, the
Board evaluates a bank's performance under the applicable performance criteria in this part, in accordance
709
with section 228.21, and section 228.28, which provides for adjustments on the basis of evidence of
discriminatory or other illegal credit practices.
(2) A bank's performance need not fit each aspect of a
particular rating profile in order to receive that rating,
and exceptionally strong performance with respect to
some aspects may compensate for weak performance
in others. The bank's overall performance, however,
must be consistent with safe and sound banking practices and generally with the appropriate rating profile
as follows.
(b) Banks evaluated under the lending, investment, and
service tests.
(1) Lending performance rating. The Board assigns
each bank's lending performance one of the five following ratings.
(i) Outstanding. The Board rates a bank's lending
performance "outstanding" if, in general, it demonstrates:
(A) Excellent responsiveness to credit needs in
its assessment area(s), taking into account the
number and amount of home mortgage, small
business, small farm, and consumer loans, if applicable, in its assessment area(s);
(B) A substantial majority of its loans are made
in its assessment area(s);
(C) An excellent geographic distribution of loans
in its assessment area(s);
(D) An excellent distribution, particularly in its
assessment area(s), of loans among individuals
of different income levels and businesses (including farms) of different sizes, given the product
lines offered by the bank;
(E) An excellent record of serving the credit
needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, or businesses (including farms) with gross
annual revenues of $1 million or less, consistent
with safe and sound operations;
(F) Extensive use of innovative or flexible lending practices in a safe and sound manner to
address the credit needs of low- or moderateincome individuals or geographies; and
(G) It is a leader in making community development loans.
(ii) High satisfactory. The Board rates a bank's
lending performance "high satisfactory" if, in general, it demonstrates:
(A) Good responsiveness to credit needs in its
assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s);
(B) A high percentage of its loans are made in its
assessment area(s);
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Federal Reserve Bulletin • July 1995
(C) A good geographic distribution of loans in its
assessment area(s);
(D) A good distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including
farms) of different sizes, given the product lines
offered by the bank;
(E) A good record of serving the credit needs of
highly economically disadvantaged areas in its
assessment area(s), low-income individuals, or
businesses (including farms) with gross annual
revenues of $1 million or less, consistent with
safe and sound operations;
(F) Use of innovative or flexible lending practices in a safe and sound manner to address the
credit needs of low- or moderate-income individuals or geographies; and
(G) It has made a relatively high level of community development loans.
(iii) Low satisfactory. The Board rates a bank's
lending performance "low satisfactory" if, in general, it demonstrates:
(A) Adequate responsiveness to credit needs in
its assessment area(s), taking into account the
number and amount of home mortgage, small
business, small farm, and consumer loans, if applicable, in its assessment area(s);
(B) An adequate percentage of its loans are made
in its assessment area(s);
(C) An adequate geographic distribution of loans
in its assessment area(s);
(D) An adequate distribution, particularly in its
assessment area(s), of loans among individuals
of different income levels and businesses (including farms) of different sizes, given the product
lines offered by the bank;
(E) An adequate record of serving the credit
needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, or businesses (including farms) with
gross annual revenues of $1 million or less, consistent with safe and sound operations;
(F) Limited use of innovative or flexible lending
practices in a safe and sound manner to address
the credit needs of low- or moderate-income
individuals or geographies; and
(G) It has made an adequate level of community
development loans.
(iv) Needs to improve. The Board rates a bank's
lending performance "needs to improve" if, in
general, it demonstrates:
(A) Poor responsiveness to credit needs in its
assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if appli
cable, in its assessment area(s);
(B) A small percentage of its loans are made in
its assessment area(s);
(C) A poor geographic distribution of loans, particularly to low- or moderate-income geographies, in its assessment area(s);
(D) A poor distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including
farms) of different sizes, given the product lines
offered by the bank;
(E) A poor record of serving the credit needs of
highly economically disadvantaged areas in its
assessment area(s), low-income individuals, or
businesses (including farms) with gross annual
revenues of $1 million or less, consistent with
safe and sound operations;
(F) Little use of innovative or flexible lending
practices in a safe and sound manner to address
the credit needs of low- or moderate-income
individuals or geographies; and
(G) It has made a low level of community development loans.
noncompliance.
The Board
(v) Substantial
rates a bank's lending performance as being in
"substantial noncompliance" if, in general, it
demonstrates:
(A) A very poor responsiveness to credit needs in
its assessment area(s), taking into account the
number and amount of home mortgage, small
business, small farm, and consumer loans, if applicable, in its assessment area(s);
(B) A very small percentage of its loans are made
in its assessment area(s);
(C) A very poor geographic distribution of loans,
particularly to low- or moderate-income geographies, in its assessment area(s);
(D) A very poor distribution, particularly in its
assessment area(s), of loans among individuals
of different income levels and businesses (including farms) of different sizes, given the product
lines offered by the bank;
(E) A very poor record of serving the credit
needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, or businesses (including farms) with gross
annual revenues of $1 million or less, consistent
with safe and sound operations;
(F) No use of innovative or flexible lending practices in a safe and sound manner to address the
credit needs of low- or moderate-income individuals or geographies; and
(G) It has made few, if any, community development loans.
(2) Investment performance rating. The Board assigns
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each bank's investment performance one of the five
following ratings.
(i) Outstanding. The Board rates a bank's investment performance "outstanding" if, in general, it
demonstrates:
(A) An excellent level of qualified investments,
particularly those that are not routinely provided
by private investors, often in a leadership position;
(B) Extensive use of innovative or complex qualified investments; and
(C) Excellent responsiveness to credit and community development needs.
(ii) High satisfactory. The Board rates a bank's
investment performance "high satisfactory" if, in
general, it demonstrates:
(A) A significant level of qualified investments,
particularly those that are not routinely provided
by private investors, occasionally in a leadership
position;
(B) Significant use of innovative or complex
qualified investments; and
(C) Good responsiveness to credit and community development needs.
(iii) Low satisfactory. The Board rates a bank's
investment performance "low satisfactory" if, in
general, it demonstrates:
(A) An adequate level of qualified investments,
particularly those that are not routinely provided
by private investors, although rarely in a leadership position;
(B) Occasional use of innovative or complex
qualified investments; and
(C) Adequate responsiveness to credit and community development needs.
(iv) Needs to improve. The Board rates a bank's
investment performance "needs to improve" if, in
general, it demonstrates:
(A) A poor level of qualified investments, particularly those that are not routinely provided by
private investors;
(B) Rare use of innovative or complex qualified
investments; and
(C) Poor responsiveness to credit and community
development needs.
(v) Substantial noncompliance. The Board rates a
bank's investment performance as being in "substantial noncompliance" if, in general, it demonstrates:
(A) Few, if any, qualified investments, particularly those that are not routinely provided by
private investors;
(B) No use of innovative or complex qualified
investments; and
(C) Very poor responsiveness to credit and
711
community development needs.
(3) Service performance rating. The Board assigns
each bank's service performance one of the five following ratings.
(i) Outstanding. The Board rates a bank's service
performance "outstanding" if, in general, the bank
demonstrates:
(A) Its service delivery systems are readily accessible to geographies and individuals of different
income levels in its assessment area(s);
(B) To the extent changes have been made, its
record of opening and closing branches has improved the accessibility of its delivery systems,
particularly in low- or moderate-income geographies or to low- or moderate-income individuals;
(C) Its services (including, where appropriate,
business hours) are tailored to the convenience
and needs of its assessment area(s), particularly
low- or moderate-income geographies or low- or
moderate-income individuals; and
(D) It is a leader in providing community development services.
(ii) High satisfactory. The Board rates a bank's
service performance "high satisfactory" if, in general, the bank demonstrates:
(A) Its service delivery systems are accessible to
geographies and individuals of different income
levels in its assessment area(s);
(B) To the extent changes have been made, its
record of opening and closing branches has not
adversely affected the accessibility of its delivery
systems, particularly in low- and moderateincome geographies and to low- and moderateincome individuals;
(C) Its services (including, where appropriate,
business hours) do not vary in a way that inconveniences its assessment area(s), particularly
low- and moderate-income geographies and lowand moderate-income individuals; and
(D) It provides a relatively high level of community development services.
(iii) Low satisfactory. The Board rates a bank's
service performance "low satisfactory" if, in general, the bank demonstrates:
(A) Its service delivery systems are reasonably
accessible to geographies and individuals of different income levels in its assessment area(s);
(B) To the extent changes have been made, its
record of opening and closing branches has generally not adversely affected the accessibility of
its delivery systems, particularly in low- and
moderate-income geographies and to low- and
moderate-income individuals;
(C) Its services (including, where appropriate,
business hours) do not vary in a way that incon-
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Federal Reserve Bulletin • July 1995
veniences its assessment area(s), particularly
low- and moderate-income geographies and lowand moderate-income individuals; and
(D) It provides an adequate level of community
development services.
(iv) Needs to improve. The Board rates a bank's
service performance "needs to improve" if, in general, the bank demonstrates:
(A) Its service delivery systems are unreasonably
inaccessible to portions of its assessment area(s),
particularly to low- or moderate-income geographies or to low- or moderate-income individuals;
(B) To the extent changes have been made, its
record of opening and closing branches has adversely affected the accessibility its delivery systems, particularly in low- or moderate-income
geographies or to low- or moderate-income individuals;
(C) Its services (including, where appropriate,
business hours) vary in a way that inconveniences its assessment area(s), particularly lowor moderate-income geographies or low- or
moderate-income individuals; and
(D) It provides a limited level of community
development services.
(v) Substantial noncompliance. The Board rates a
bank's service performance as being in "substantial
noncompliance" if, in general, the bank demonstrates:
(A) Its service delivery systems are unreasonably
inaccessible to significant portions of its assessment area(s), particularly to low- or moderateincome geographies or to low- or moderateincome individuals;
(B) To the extent changes have been made, its
record of opening and closing branches has significantly adversely affected the accessibility of
its delivery systems, particularly in low- or
moderate-income geographies or to low- or
moderate-income individuals;
(C) Its services (including, where appropriate,
business hours) vary in a way that significantly
inconveniences its assessment area(s), particularly low- or moderate-income geographies or
low- or moderate-income individuals; and
(D) It provides few, if any, community development services.
(c) Wholesale or limited purpose banks. The Board
assigns each wholesale or limited purpose bank's community development performance one of the four following ratings.
(1) Outstanding. The Board rates a wholesale or limited purpose bank's community development performance "outstanding" if, in general, it demonstrates:
(i) A high level of community development loans,
community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
(ii) Extensive use of innovative or complex qualified investments, community development loans, or
community development services; and
(iii) Excellent responsiveness to credit and community development needs in its assessment area(s).
(2) Satisfactory. The Board rates a wholesale or limited purpose bank's community development performance "satisfactory" if, in general, it demonstrates:
(i) An adequate level of community development
loans, community development services, or qualified investments, particularly investments that are
not routinely provided by private investors;
(ii) Occasional use of innovative or complex qualified investments, community development loans, or
community development services; and
(iii) Adequate responsiveness to credit and community development needs in its assessment area(s).
(3) Needs to improve. The Board rates a wholesale or
limited purpose bank's community development performance as "needs to improve" if, in general, it
demonstrates:
(i) A poor level of community development loans,
community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
(ii) Rare use of innovative or complex qualified
investments, community development loans, or
community development services; and
(iii) Poor responsiveness to credit and community
development needs in its assessment area(s).
(4) Substantial noncompliance. The Board rates a
wholesale or limited purpose bank's community development performance in "substantial noncompliance" if, in general, it demonstrates:
(i) Few, if any, community development loans,
community development services, or qualified investments, particularly investments that are not routinely provided by private investors;
(ii) No use of innovative or complex qualified investments, community development loans, or community development services; and
(iii) Very poor responsiveness to credit and community development needs in its assessment area(s).
(d) Banks evaluated under the small bank performance
standards. The Board rates the performance of each
bank evaluated under the small bank performance standards as follows.
(1) Eligibility for a satisfactory rating. The Board
rates a bank's performance "satisfactory" if, in general, the bank demonstrates:
(i) A reasonable loan-to-deposit ratio (considering
seasonal variations) given the bank's size, financial
Legal Developments
condition, the credit needs of its assessment area(s),
and taking into account, as appropriate, lendingrelated activities such as loan originations for sale
to the secondary markets and community development loans and qualified investments;
(ii) A majority of its loans and, as appropriate, other
lending-related activities are in its assessment
area(s);
(iii) A distribution of loans to and, as appropriate,
other lending-related activities for individuals of
different income levels (including low- and
moderate-income individuals) and businesses and
farms of different sizes that is reasonable given the
demographics of the bank's assessment area(s);
(iv) A record of taking appropriate action, as warranted, in response to written complaints, if any,
about the bank's performance in helping to meet
the credit needs of its assessment area(s); and
(v) A reasonable geographic distribution of loans
given the bank's assessment area(s).
(2) Eligibility for an outstanding rating. A bank that
meets each of the standards for a "satisfactory" rating
under this paragraph and exceeds some or all of those
standards may warrant consideration for an overall
rating of "outstanding." In assessing whether a bank's
performance is "outstanding," the Board considers
the extent to which the bank exceeds each of the
performance standards for a "satisfactory" rating and
its performance in making qualified investments and
its performance in providing branches and other services and delivery systems that enhance credit availability in its assessment area(s).
(3) Needs to improve or substantial noncompliance
ratings. A bank also may receive a rating of "needs to
improve" or "substantial noncompliance" depending
on the degree to which its performance has failed to
meet the standards for a "satisfactory" rating.
(e) Strategic plan assessment and rating.
(1) Satisfactory goals. The Board approves as "satisfactory" measurable goals that adequately help to
meet the credit needs of the bank's assessment area(s).
(2) Outstanding goals. If the plan identifies a separate
group of measurable goals that substantially exceed
the levels approved as "satisfactory," the Board will
approve those goals as "outstanding."
(3) Rating. The Board assesses the performance of a
bank operating under an approved plan to determine if
the bank has met its plan goals:
(i) If the bank substantially achieves its plan goals
for a satisfactory rating, the Board will rate the
bank's performance under the plan as "satisfactor y . "
(ii) If the bank exceeds its plan goals for a satisfactory rating and substantially achieves its plan goals
for an outstanding rating, the Board will rate the
713
bank's performance under the plan as "outstanding."
(iii) If the bank fails to meet substantially its plan
goals for a satisfactory rating, the Board will rate
the bank as either "needs to improve" or "substantial noncompliance," depending on the extent to
which it falls short of its plan goals, unless the bank
elected in its plan to be rated otherwise, as provided
in section 228.27(f)(4).
APPENDIX B TO PART 228—CRA
NOTICE
(a) Notice for main offices and, if an interstate bank, one
branch office in each state.
Community Reinvestment Act Notice
Under the Federal Community Reinvestment Act (CRA),
the Federal Reserve Board (Board) evaluates our record
of helping to meet the credit needs of this community
consistent with safe and sound operations. The Board
also takes this record into account when deciding on
certain applications submitted by us.
Your involvement is encouraged.
You are entitled to certain information about our operations and our performance under the CRA, including,
for example, information about our branches, such as
their location and services provided at them; the public
section of our most recent CRA Performance Evaluation, prepared by the Federal Reserve Bank of xxxx
(Reserve Bank); and comments received from the public
relating to our performance in helping to meet community credit needs, as well as our responses to those
comments. You may review this information today.
At least 30 days before the beginning of each quarter,
the Federal Reserve System publishes a list of the banks
that are scheduled for CRA examination by the Reserve
Bank in that quarter. This list is available from (title of
responsible official), Federal Reserve Bank of xxxx (address). You may send written comments about our performance in helping to meet community credit needs to
(name and address of official at bank) and (title of
responsible official), Federal Reserve Bank of xxxx (address). Your letter, together with any response by us, will
be considered by the Federal Reserve System in evaluating our CRA performance and may be made public.
You may ask to look at any comments received by the
Reserve Bank. You may also request from the Reserve
Bank an announcement of our applications covered by
the CRA filed with the Reserve Bank. We are an affiliate
of (name of holding company), a bank holding company.
You may request from (title of responsible official),
Federal Reserve Bank of xxxx (address) an announce-
714
Federal Reserve Bulletin • July 1995
ment of applications covered by the CRA filed by bank
holding companies.
(b) Notice for branch offices.
Community Reinvestment Act Notice
Under the Federal Community Reinvestment Act (CRA),
the Federal Reserve Board (Board) evaluates our record
of helping to meet the credit needs of this community
consistent with safe and sound operations. The Board
also takes this record into account when deciding on
certain applications submitted by us.
Your involvement is encouraged.
You are entitled to certain information about our operations and our performance under the CRA. You may
review today the public section of our most recent CRA
evaluation, prepared by the Federal Reserve Bank of
xxxx (address), and a list of services provided at this
branch. You may also have access to the following
additional information, which we will make available to
you at this branch within five calendar days after you
make a request to us:
(1) A map showing the assessment area containing
this branch, which is the area in which the Board
evaluates our CRA performance in this community;
(2) Information about our branches in this assessment
area;
(3) A list of services we provide at those locations;
(4) Data on our lending performance in this assessment area; and
(5) Copies of all written comments received by us that
specifically relate to our CRA performance in this
assessment area, and any responses we have made to
those comments.
If we are operating under an approved strategic plan, you
may also have access to a copy of the plan.
[If you would like to review information about our
CRA performance in other communities served by us,
the public file for our entire bank is available at (name of
office located in state), located at (address)].
At least 30 days before the beginning of each quarter,
the Federal Reserve System publishes a list of the banks
that are scheduled for CRA examination by the Reserve
Bank in that quarter. This list is available from (title of
responsible official), Federal Reserve Bank of xxxx (address). You may send written comments about our performance in helping to meet community credit needs to
(name and address of official at bank) and (title of responsible official), Federal Reserve Bank of xxxx (address). Your letter, together with any response by us,
will be considered by the Federal Reserve System in
evaluating our CRA performance and may be made
public.
You may ask to look at any comments received by the
Reserve Bank. You may also request from the Reserve
Bank an announcement of our applications covered by
the CRA filed with the Reserve Bank. We are an affiliate
of (name of holding company), a bank holding company.
You may request from (title of responsible official),
Federal Reserve Bank of xxxx (address) an announcement of applications covered by the CRA filed by bank
holding companies.
Sections 228.1, 228.2, 228.8 and 228.100 [Removed]
3. Sections 228.1, 228.2, 228.8 and 228.100 are removed effective July 1, 1995.
Sections 228.3, 228.4, 228.5, 228.6, and 228.7, and
subpart D [Removed]
4. Sections 228.3, 228.4, 228.5, 228.6, and 228.7, and
subpart D, consisting of section 228.51, are removed
effective July 1, 1997.
FINAL RULE — AMENDMENT TO REGULATION C
The Board of Governors is amending 12 C.F.R. Part 203,
its Regulation C (Home Mortgage Disclosure), and the
instructions that financial institutions must use to comply
with the annual reporting requirements under the regulation. The amendments conform Regulation C to reflect
revisions adopted by the Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and the Office of Thrift Supervision to their
regulations implementing the Community Reinvestment
Act (CRA). Under the joint CRA rule, banks or savings
associations that report data about their home mortgage
lending pursuant to the Home Mortgage Disclosure Act
(HMDA)—and that have assets of $250 million or more,
or that are subsidiaries of a holding company with total
banking and thrift assets of $1 billion or more—will
collect and report geographic information on loans and
loan applications relating to property located outside the
Metropolitan Statistical Areas (MSAs) in which the institution has a home or branch office, or outside any MSA.
Currently, geographic identification is required only
within MSAs where these lenders have a home or branch
office. Data will be collected and reported in accordance
with the instructions in Regulation C. The agencies
believe that these data will provide geographic detail on
home mortgage lending that will facilitate more complete CRA assessments for institutions that do not qualify as small banks or thrifts.
Effective May 1, 1995, 12 C.F.R. Part 203 is amended
as follows and compliance is mandatory for loan and»
application data collected beginning January 1, 1996.
Legal Developments
Part 203—Home Mortgage Disclosure
(Regulation C)
1. The authority citation for Part 203 continues to read as
follows:
Authority: 12 U.S.C. 2801-2810.
2. Section 203.4 is amended by adding a new paragraph
(e) to read as follows:
Section 203.4—Compilation of loan data.
(e) Data Reporting Under CRA for Banks and Savings
Associations with Total Assets of $250 Million or More
and Banks and Savings Associations that are Subsidiaries of a Holding Company Whose Total Banking and
Thrift Assets are $1 Billion or More. As required by
agency regulations that implement the Community Reinvestment Act, banks and savings associations that had
total assets of $250 million or more (or are subsidiaries
of a holding company with total banking and thrift assets
of $1 billion or more) as of December 31 for each of the
immediately preceding two years, shall also collect the
location of property located outside the MSAs in which
the institution has a home or branch office, or outside
any MSAs.
3. Appendix A to Part 203 is amended by revising the
introductory text of paragraph V.C. and by adding a new
paragraph V.C.7. to read as follows:
715
7. Data reporting under CRA for banks and savings
associations with total assets of $250 million or more
and banks and savings associations that are subsidiaries
of a holding company whose total banking and thrift
assets are $1 billion or more. If you are a bank or
savings association with total assets of $250 million or
more as of December 31 for each of the immediately
preceding two years, you must also enter the location of
property located outside the MSAs in which you have a
home or branch office, or outside any MSA. You must
also enter this information if you are a bank or savings
association that is a subsidiary of a holding company
with total banking and thrift assets of $ 1 billion or more
as of December 31 for each of the immediately preceding two years.
FINAL RULE—AMENDMENT TO RULES REGARDING
DELEGATION OF AUTHORITY
The Board of Governors is amending 12 C.F.R. Part 265,
its Rules Regarding Delegation of Authority, to allow
Federal Reserve Banks to approve certain public welfare
investments by state member banks under the Board's
Regulation H. This amendment should provide for more
expeditious processing of these requests.
Effective June 5, 1995, 12 C.F.R. Part 265 is amended
as follows:
Part 265—Rules Regarding Delegation of
Authority
1. The authority citation for Part 265 continues to read as
follows:
APPENDIX A TO PART 203—FORM AND
INSTRUCTIONS FOR COMPLETION OF
LOAN/APPUCATION REGISTER
y
* * *
C. Property Location
In these columns enter the applicable codes for the
MSA, state, county, and census tract for the property to
which a loan relates. For home purchase loans secured
by one dwelling, but made for the purpose of purchasing
another dwelling, report the property location for the
property in which the security interest is to be taken. If
the home purchase loan is secured by more than one
property, report the location data for the property being
purchased. (See paragraphs 5., 6., and 7. of paragraph V.C. of this appendix for treatment of loans on
property outside the MSAs in which you have offices.)
Authority: 12 U.S.C. 248(i) and (k).
HMDA
2. Section 265.11(e) is amended by adding a new paragraph (12) to read as follows:
Section 265.11 Functions delegated to Federal
Reserve Banks.
(c) ^
^
(12) Public welfare investments. To permit a state
member bank to make a public welfare investment
that meets the conditions set forth in section
208.21(b)(l)-(8) of Regulation H (12 C.F.R. 208), except that:
(i) The state member bank received an overall rating of "3" as of its most recent consumer compliance examination;
(ii) The investment exceeds 2 percent, but does not
exceed 5 percent, of the state member bank's capi-
716
Federal Reserve Bulletin • July 1995
tal stock and surplus as defined under 12 C.F.R.
250.162; or
(iii) The aggregate of all such investments of the
state member bank exceeds 5 percent, but does not
exceed 10 percent, of its capital stock and surplus
as defined under 12 C.F.R. 250.162.
The Board also concludes, based on all the facts of
record, that the financial and managerial resources and
future prospects of First Place and Western Bank, and all
other supervisory factors that the Board must consider
under section 3 of the BHC Act, are consistent with
approval of this proposal. 2
Convenience and Needs
ORDERS ISSUED UNDER BANK HOLDING
ACT
Orders Issued Under Section 3 of the Bank
Holding Company Act
First Place Financial Corporation
Farmington, New Mexico
Order Approving the Acquisition of a Bank
First Place Financial Corporation, Farmington, New
Mexico ("First Place"), has applied under section 3 of
the Bank Holding Company Act (12 U.S.C. § 1842
et seq.) ("BHC Act") to acquire all the voting shares of
Western Bank, Gallup, New Mexico ("Western Bank").
Notice of the application, affording interested persons
an opportunity to submit comments, has been published
(60 Federal Register 9841 (1995)). The time for filing
comments has expired, and the Board has considered the
application and all comments received in light of the
factors set forth in section 3(c) of the BHC Act.
First Place, with total consolidated assets of
$616.9 million, is the fifth largest commercial banking
organization in New Mexico, controlling deposits of
approximately $360.1 million, representing 3.2 percent
of total deposits in commercial banking organizations in
the state.1 Western Bank is the 50th largest commercial
banking organization in New Mexico, controlling deposits of approximately $26 million, representing less than
1 percent of total deposits in commercial banking organizations in the state. Upon consummation of this proposal, First Place would remain the fifth largest commercial banking organization in New Mexico, controlling
deposits of approximately $386.1 million, representing
3.5 percent of total deposits in commercial banking
organizations in the state.
First Place and Western Bank do not compete directly
in any banking market. Therefore, consummation of this
proposal would not result in any significantly adverse
effects on competition or the concentration of banking
resources in any relevant banking market. Accordingly,
the Board concludes that competitive considerations are
consistent with approval of this application.
1. Asset and state deposit data are as of December 31, 1994.
Considerations
COMPANY
In considering an application to acquire a commercial
banking organization under the BHC Act, the Board
must consider the convenience and needs of the communities to be served, and take into account the records of
the relevant commercial banking organizations under the
Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate, consistent with their safe and
sound operation. To accomplish this end, the CRA requires the appropriate federal supervisory authority to
"assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with safe
and sound operation of such institutions," and to take
that record into account in its evaluation of these applications. 3
In evaluating the convenience and needs factors in this
case, the Board has carefully reviewed the CRA performance records of the subsidiary banks of First Place and
2. The Board has carefully reviewed comments from two individuals ("Protestants"), alleging that Western Bank's Chairman of the
Board would be unjustly enriched under a separate agreement with
First Place and that First Place has exercised a controlling influence
over the management of Western Bank. First Place denies that there
is any agreement with Western Bank's Chairman of the Board, or
that First Place has exercised a controlling influence over Western
Bank. While a former officer of First Place is employed at Western.
Bank, he completely terminated his employment, including all
employee benefits, with First Place before commencing his duties
at Western Bank and has no right to return if Western Bank is not
acquired by First Place.
Protestants also allege that the interests of Western Bank shareholders were not adequately represented in negotiating the proposal
and that the share price under the proposal was below fair market
value. The Board notes that this proposal has been approved by
Western Bank's board of directors and the owners of the majority
of its shares. The courts have determined that the Board is precluded from considering stock pricing, exchange ratios, and similar
matters that do not relate to a factor specifically enumerated in the
BHC Act. See Western Bancshares, Inc. v. Board of Governors, 480
F.2d 749 (10th Cir. 1973). Finally, one of the Protestants alleges
that he was wrongfully terminated by Western Bank. This matter is
also outside the statutory factors in the BHC Act and is subject to
review under other laws. Based on the foregoing and the other facts
of record, the Board concludes that these allegations do not present
adverse considerations under the statutory factors in the BHC Act.
3. 12 U.S.C. § 2903.
Legal Developments
Western Bank and all other relevant facts of record, in
light of the CRA, 4 the Board's regulations, and the
Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act ("Agency
CRA Statement"). 5
The Agency CRA Statement provides that a CRA
examination is an important and often controlling factor
in the consideration of an institution's CRA record and
that reports of these examinations will be given great
weight in the applications process. 6 The Board notes that
First Place's lead bank, the First National Bank of Farmington, Farmington, New Mexico ("First Bank"), with
assets of approximately $524.8 million, received an
"outstanding" CRA performance rating from its primary
regulator, the Office of the Comptroller of the Currency
("OCC"), in its most recent examination on December 22, 1994. First Place's other subsidiary bank, the
Burns National Bank, Durango, Colorado, received a
"satisfactory" rating from the OCC in its most recent
CRA performance examination on October 31, 1994.
Western Bank, with assets of approximately
$30.7 million, received a "needs to improve" rating in
its most recent CRA performance examination by its
primary regulator, the Federal Deposit Insurance Corporation ("FDIC"), on April 29, 1994. However, Western
Bank has initiated a number of steps to improve its
performance in the areas noted by FDIC examiners. The
FDIC recently completed a CRA performance examination of the bank and has preliminarily upgraded its CRA
performance rating to "satisfactory." Moreover, First
Place has committed to implement the CRA policies and
programs of First Bank at Western Bank after consummation of the proposal. These policies and programs,
which presently support First Bank's CRA-related activities in an area with similar credit needs to that served by
Western Bank, have been found by OCC examiners to
be effective in helping to meet the credit needs of the
bank's local communities, including low- and moderateincome areas. The Board also believes that the additional
resources that would be available to Western Bank as a
subsidiary of First Place would increase the bank's capacity to assist in meeting the credit needs of the Gallup
community. In light of these and other facts of record,
the Board concludes that the convenience and needs
considerations of the communities to be served are consistent with approval of this application.
Based on the foregoing and all the facts of record, the
Board has determined that this application should be,
and hereby is, approved. The Board's approval is specif-
4. The Board also considered comments from the Protestants
alleging generally that the proposal would not be in the best
interests of the community.
5. 54 Federal Register 13,742 (1989).
6. Id. at 13,742.
92
ically conditioned on compliance with all the commitments made by First Place in connection with this application. For purposes of this action, the commitments and
conditions relied on in reaching this decision are deemed
to be conditions imposed in writing by the Board 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
Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective May 8,
1995.
Voting for this action: Chairman Greenspan, and Governors
Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Lone Star National Bancshares-Texas, Inc.
Pharr, Texas
Lone Star National Bancshares-Texas, Inc., ("Lone
Star") has applied under section 3(a)(1) of the Bank
Holding Company Act ("BHC Act") (12 U.S.C.
§ 1842(a)(1)) to become a bank holding company by
acquiring all the voting shares of Lone Star National
Bank ("Bank"), both of Pharr, Texas. Bank would be
acquired through Lone Star's wholly owned subsidiary,
Lone Star National Bancshares-Nevada, Inc., Reno, Nevada, which also has applied to become a bank holding
company.
Notice of the applications, affording interested persons
an opportunity to submit comments, has been published
(60 Federal Register 9689 (1995)). The time for filing
comments has expired, and the Board has considered the
applications and all comments received in light of the
factors set forth in section 3(c) of the BHC Act.
Lone Star and its Nevada subsidiary are non-operating
corporations formed for the purpose of acquiring Bank.
Bank is the 237th largest commercial banking organization in Texas, with deposits of $82.5 million, representing less than 1 percent of total deposits in commercial
banking organizations in the state.1 Based on all the facts
of record, consummation of this proposal would not
have a significantly adverse effect on competition or the
concentration of banking resources in any relevant banking market.
1. All banking data are as of December 31, 1994.
718
Federal Reserve Bulletin • July 1995
The financial and managerial resources and future
prospects of Lone Star and Bank are consistent with
approval of these applications, as are the other supervisory factors that the Board is required to consider under
section 3 of the BHC Act.
Convenience and Needs
Consideration
In acting on applications to acquire a depository institution, the Board must consider the convenience and needs
of the communities to be served, and take into account
the records of the relevant depository institutions under
the Community Reinvestment Act (12 U.S.C. § 2901
et seq.) ("CRA"), which requires the federal financial
supervisory agencies to encourage financial institutions
to help meet the credit needs of the local communities in
which they operate, consistent with their safe and sound
operation. To accomplish this end, the CRA requires the
appropriate federal supervisory authority to "assess the
institution's record of meeting the credit needs of its
entire community, including low- and moderate-income
neighborhoods, consistent with the safe and sound operation of such institutions," and to take that record into
account in its evaluation of these applications.2
The Board has received comments from an individual
("Protestant") alleging that certain aspects of Bank's
record of CRA performance are inadequate. In particular, Protestant contends that data reported under the
Home Mortgage Disclosure Act ("HMDA") show that
approval rates are lower for Hispanic borrowers than the
rates for white borrowers. Protestant also maintains that
Bank's locations are not convenient for most people in
Bank's delineated service area and that Bank's advertisements are distasteful. 3 The Board has carefully reviewed
the entire CRA performance record of Bank, all comments received on these applications, Bank's response to
these comments, and all other relevant facts of record, in
light of the CRA, the Board's regulations and the Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act ("Agency
CRA Statement"). 4
Record of CRA Performance
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record, and that
2. 12 U.S.C. § 2903.
3. Protestant has particularly criticized advertisements by Bank
that feature animals instead of humans. Bank notes that customers
and competitors have commented favorably on these advertisements, and that Bank's assets have steadily increased during this
promotional program.
4. 54 Federal Register 13,742 (1989).
these reports will be given great weight in the applications process. 5 The Board notes that Bank received a
rating of "satisfactory" from its primary federal supervisor, the Office of the Comptroller of the Currency
("OCC"), in its most recent CRA performance examination as of August 3, 1993 (the "1993 Examination"). 6
Examiners concluded that the bank's geographic distribution of credit extensions, applications and denials
demonstrated a reasonable penetration of all segments of
its delineated community, including low- and moderateincome areas. No disproportionate lending patterns were
found in the 1993 Examination. In addition, 1993
HMDA data show that bank's penetration of low- and
moderate-income areas was comparable to the aggregate
of all lenders in the market.
In response to Protestant's comments on its lending
record to Hispanics, Bank notes that its shareholders and
management are predominately Hispanic and that Hispanics comprise approximately 85 percent of its customer base. HMDA data show that in 1993, 76 percent
of loan applications from Hispanic borrowers were approved. 7 Moreover, the 1993 Examination found no evidence of illegal discrimination or of any practices intended to discourage credit applications from any
segment of the community. 8
Bank is a participant in numerous governmentsponsored lending programs; is the only lender in Pharr
certified by the Small Business Administration ("SBA"),
Veterans Administration, and Federal Housing Administration, and is one of two such lenders in McAllen,
Texas. As of December 1994, Bank reported $3.1 million in SBA loans. In addition, Bank has made direct
loans to the City of Alamo Housing Authority, Affordable Homes, Inc., and the Hidalgo County Housing
Authority to provide funding for community development programs.
The 1993 Examination concluded that Bank's offices
were easily accessible by all segments of the community
and that its hours of operation were reasonable. Examin-
5. Id. at 13,745.
6. Bank has been rated "satisfactory" for CRA performance by
the OCC since its chartering in 1983.
7. In 1993, over 80 percent of Bank's HMDA-related loans were
to Hispanic borrowers (72 out of 86 loans originated). Preliminary
data through November 1994, as reported by Bank, indicate that its
lending continues this trend; Bank originated 114 HMDA-related
loans to Hispanic borrowers. These loans comprise approximately
86 percent of Bank's total HMDA-related reported loans.
8. Examiners found no prohibited discriminatory or other illegal
credit practices at Bank. Although certain technical violations of
the record maintenance or notice requirements of the antidiscrimination laws were noted, Bank has taken corrective or
follow-up action on these violations. In this light, the Board concludes that the record does not support Protestant's allegations that
discriminatory lending practices have made Bank a target for
investigation.
Legal Developments
ers also noted that Bank made a concerted effort to
ensure that its marketing activities inform all segments
of the community about its products and services. The
bank advertises in newspapers, trade publications and
business journals that reach all parts of its delineated
community, including low- and moderate-income areas.
The Board has carefully considered all the facts of
record, including the comments received, in reviewing
the CRA records of performance for Bank. Based on a
review of the entire record, including the information
from Protestant's comments and Bank's response to
those comments, and relevant reports of examination,
the Board concludes that convenience and needs considerations, including the CRA record of performance of
Bank, are consistent with approval of this application.
Based on the foregoing, and after a review of all the
facts of record, the Board has determined that these
applications should be, and hereby are, approved. The
Board's approval of this proposal is expressly conditioned on Lone Star's compliance with all the commitments made in connection with these applications. For
purposes of this action, these commitments and conditions are deemed to be conditions imposed in writing by
the Board in connection with its findings and decision,
and, as such, may be enforced in proceedings under
applicable law.
This transaction shall not be consummated 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
Dallas, acting pursuant to delegated authority.
By order of the Board of Governors, effective May 15,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Ogden Bancshares, Inc.
Ogden, Iowa
Order Approving the Formation of a Bank Holding
Company and the Payment of a Dividend
Ogden Bancshares, Inc., Ogden, Iowa ("Ogden"), has
applied under section 3 of the Bank Holding Company
Act ("BHC Act") (12 U.S.C. § 1842) to become a bank
holding company through the acquisition of at least
54 percent of the voting stock of City State Bank,
Ogden, Iowa ("Bank"), a state member bank. Bank also
has requested approval, under section 9 of the Federal
719
Reserve Act (12 U.S.C. § 324), to pay a dividend as
part of the financing for this transaction.
Notice of the application, affording interested persons
an opportunity to submit comments on the proposal, has
been published (59 Federal Register 52,305 (1994)).
The time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3 of the
BHC Act.
Ogden is a nonoperating company formed for the
purpose of acquiring Bank. 1 Bank is the 179th largest
commercial banking organization in Iowa, controlling
deposits of approximately $38 million, representing less
than 1 percent of the total deposits in commercial banking organizations in the state.2 Ogden and Bank do not
compete in any banking market. Based on all the facts of
record, the Board has concluded that consummation of
this proposal would not result in any significantly adverse effect on competition or the concentration of banking resources in any relevant banking market.
Convenience and Needs
Considerations
In acting on an application under the BHC Act to acquire
a depository institution, the Board must consider the
convenience and needs of the communities to be served,
and take into account the records of the relevant depository institutions under the Community Reinvestment Act
("CRA") (12 U.S.C. § 2901 et seq.). The CRA requires
the federal financial supervisory agencies to encourage
financial institutions to help meet the credit needs of the
local communities in which they operate, consistent with
their safe and sound operation. To accomplish this end,
the CRA requires the appropriate federal supervisory
authority to "assess the institution's record of meeting
the credit needs of its entire community, including lowand moderate-income neighborhoods, consistent with
the safe and sound operation of such institution," and to
take that record into account in its evaluation of certain
banking applications. 3
The Board has received comments both supporting
and opposing this application on the basis of Bank's
efforts in helping to meet the credit needs of its community. Some comments commended Bank's lending activities, including its activities related to governmentsponsored loan programs. Other comments, including
1. Ogden would acquire 54 percent of Bank's voting shares from
a charitable trust ("Trust") and additional voting shares from
minority shareholders of Bank. Based on all the facts of record, the
Board has concluded that this proposal would constitute an effective divestiture by the Trust of the Bank shares controlled by Trust
for purposes of the BHC Act.
2. Deposit data are as of September 30, 1994.
3. 12 U.S.C. § 2903.
720
Federal Reserve Bulletin • July 1995
those from the Iowa Citizens for Community Improvement ("ICCI") and individual commenters (collectively,
"Protestants"), generally questioned Bank's record of
performance under the CRA and asserted that this proposal would not improve Bank's CRA performance.
Protestants believe that Bank's lending activities, including the amount of its overall lending, its level of lending
to homeowners and small farms and businesses, and its
participation in guaranteed farm loan programs and similar government-sponsored loan programs, are inadequate. Protestants also contend that some aspects of
Bank's lending policies, such as its underwriting standards, interest rate charges, and amount of lending outside the town of Ogden, contribute to a deficient record
of CRA performance. Other aspects of Bank's CRA
performance, including ascertainment and marketing efforts, also are cited by Protestants as areas of weakness
in performance. 4
In considering the convenience and needs factor under
the BHC Act, the Board has carefully reviewed the
entire record of CRA performance of Bank, all comments received on this application, Ogden's and Bank's
responses to those comments, and all other facts of
record in light of the CRA, the Board's regulations, and
the Statement of the Federal Financial Supervisory
Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement"). 5
Record of CRA
Performance
A. CRA Performance Examination
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record and that
these reports will be given great weight in the applications process. 6 In this case, the Board has noted that
Bank received a rating of "satisfactory" during its most
recent examination for CRA performance which was
4. Some Protestants contend that some of Bank's public CRA
files are unavailable and others are incomplete. Examination reports reveal, however, that procedures have been implemented to
ensure that files are maintained for the purposes of receiving public
comments and for reviewing and responding to those comments. In
light of all the facts of record, including reports and responses to
these comments provided by Ogden and Bank in connection with
this application, the Board has concluded that Protestants' comments concerning Bank's public CRA file do not warrant an
adverse finding on the factors the Board must consider under the
BHC Act. Protestants also have criticized the CRA performance
record of an organization that is providing debt financing to Ogden
in connection with this proposal. The Board does not believe that
this bank stock lender's CRA performance record is relevant in this
case.
5. 54 Federal Register 13,742 (1989).
6. Id. at 13,745.
conducted by the Federal Reserve Bank of Chicago
("Reserve Bank") as of December 5, 1994 ("1994 Examination"). 7
In connection with the 1994 Examination, and as part
of the processing of this application, Reserve Bank examiners met with a number of local residents, including
individuals suggested by Protestants. 8 Based on all the
facts considered in the examination process, the Reserve
Bank found no evidence of discriminatory or other illegal credit practices. The 1994 Examination also found
Bank to be in compliance with the substantive provisions of the fair housing and fair lending laws, including
the Fair Housing and Equal Credit Opportunity Acts. In
addition, the 1994 Examination detected no practices
that would discourage applications for the types of credit
offered by Bank. 9
B. Lending and Community Development
Activities
The Board has carefully reviewed comments by ICCI
and other Protestants regarding Bank's lending activities, in light of the resources available to Bank in helping
to meet the credit needs of its entire community. Bank is
a single-office institution, controlling deposits of approximately $38 million, with a service area that encompasses Ogden, which has a population of approximately
2,000, and several small surrounding communities with
populations of less than 250, all in Iowa. As of the 1994
Examination, approximately 81 percent of the Bank's
loans were made within its delineated community. 10 The
1994 Examination also found that credit extended by
Bank was satisfactorily distributed throughout its service
7. Some Protestants, particularly the ICCI, generally disagree
with the inferences and conclusions in the 1994 Examination, as
well as the procedures followed by the examiners. The 1994
Examination followed established procedures, and included contacts with members of the Ogden, Iowa, community.
8. The ICCI contends that more local residents should have
participated in the 1994 Examination.
9. Individuals contacted as part of the 1994 Examination and
some Protestants contend that Bank's policies and customer service
are not consistent with helping to meet the credit needs of the
community. For example, some individuals believe that borrowers
are discouraged by the bank's conservative lending policies and its
failure to process applications promptly. Many of these criticisms
were based on experiences that predated the 1991 change in Bank's
management. As a result of this change, new policies, including a
loan application tracking system that documents each step in the
loan process, have been implemented at Bank. Other commenters
criticized the performance of Bank's current management in certain
business transactions with these individuals. These comments,
when considered in light of all the facts of record, including the
results of the 1994 Examination and other supervisory evaluations
of management, do not support adverse action on this proposal.
10. Bank reviews its community delineation annually. The 1994
Examination reviewed a sample of loans and found that this sample
supported the reasonableness of Bank's delineation.
Legal Developments
community, and that Bank extends credit in a manner
consistent with its CRA statement of available credit and
stated loan policies.
The 1994 Examination also found that Bank's overall
lending was increasing, and that improvement had been
demonstrated in several types of loans. 11 Examiners
concluded that Bank's total loan portfolio had increased
by over 50 percent to $13.9 million since December 31,
1990, and by more than 18 percent over the one-year
period preceding the 1994 Examination.
The 1994 Examination also noted that Bank participates in government-sponsored loan programs, such as
the Small Business Administration ("SBA"), Guaranteed Student Loan ("GSL"), and Farmers Home Administration ("FmHA") loan programs. Examiners found
that Bank had originated 50 loans under SBA, GSL, or
FmHA programs in the one-and-a-half year period preceding the 1994 Examination. 12
Since new management was installed in 1991, Bank
has developed a variety of policies and programs focusing on the specific credit needs of its community, including low- and moderate-income residents. For example,
Bank has taken steps to be more flexible in its underwriting criteria. In June 1992, Bank increased the maximum
loan-to-value ratio on residential real estate loans from
75 percent to 80 percent. Since this change was implemented, Bank has originated over 30 loans with loan-tovalue ratios that exceed the earlier requirement. Bank
also has arranged for a third-party insurance company to
provide private mortgage insurance for residential real
estate loans when the loan-to-value ratio exceeds
80 percent. Examiners also noted that Bank's president
conducts a second review of all denied loan applications.
Denied applications also are reviewed at the loan committee meetings, and are discussed at the monthly meetings of Bank's board of directors.
In April 1992, Bank introduced its Reduced Rate
Property Improvement Loan Program to assist in meeting community credit needs for home improvement
loans. Initially, this program offered loans for exterior
improvements on residential properties in the Ogden
area. After extensive flooding in Bank's service area in
11. The 1994 Examination noted significant increases in residential real estate loans, commercial and industrial loans, agricultural
real estate loans, and agricultural operating loans. Examiners found
that approximately 46 percent of Bank's loans were for agricultural
purposes. These loans were made to more than 100 separate customers.
12. The SBA recently approved Bank to participate in the "Low
Doc" loan program whereby a bank may originate small business
and small farm loans under $100,000, with a reduction in the
paperwork required by the SBA. Bank also has applied to the State
of Iowa to participate in the Linked Investments for Tomorrow
program. This program can be used in conjunction with SBA loans
to provide below-market financing for small business borrowers.
721
1993, this program was expanded to include financing
for the purchase of replacement appliances and heating
and air conditioning systems that were damaged in the
floods. Examiners noted that Bank had received 65 applications under this program, and had originated 64 loans.
In November 1993, Bank expanded its loan product line
by offering home equity loans. By the time of the 1994
Examination, Bank had originated eight home equity
loans totalling over $95,000. To assist in meeting consumer credit needs, Bank also originates installment and
single-payment loans in amounts as little as $100, and
has introduced a zero-percent financing program under
which consumers may purchase products from participating merchants with no interest charges. 13
Bank's community development activities include participation in the Ogden Rural Main Street Program
("ORMS"), which seeks to improve the downtown business area of Ogden by providing low-interest loans for
the replacement of signs and facades. Bank has committed $50,000 to the ORMS loan program, and has originated a number of loans under this program. In addition,
Bank donates funds to ORMS for operational expenses,
and Bank's president is a member of the ORMS board of
directors. Bank also is involved in the Ogden Community Development Corporation, which seeks to attract
new business to the Ogden area. Bank's management
involvement includes a bank officer who serves as treasurer and two bank directors who are members of this
organization. Bank also has funded a $194,000 loan for
the construction of the Boone Work Activity Center,
which provides housing and living quarters for disabled
individuals in Boone County, Iowa. The 1994 Examination also noted that Bank had made a number of community development-related loans to small businesses. Bank
also has made substantial investments in state and local
government bonds, and has made project loans to local
governments in its service area.
C. Other Aspects of C R A P e r f o r m a n c e
The 1994 Examination found that Bank has taken steps
to initiate effective methods for ascertaining the credit
needs of its community through contacts with various
organizations in the community by its staff, management, and directors, participation by officers and staff in
civic and religious organizations, and meetings with
various community representatives that included discussions of credit and service needs within Bank's delineated community.
The 1994 Examination noted that Bank used radio and
newspaper advertising of its loan and investment prod13. Under this program, the merchant pays a fee to Bank to
compensate it for the absence of interest charges assessed to the
customer.
722
Federal R e s e r v e B u l l e t i n • July 1 9 9 5
ucts. B a n k also w a s f o u n d to rely o n w o r d - o f - m o u t h
a d v e r t i s i n g b y its e m p l o y e e s , m a n a g e m e n t , a n d directors
t h r o u g h v a r i o u s c o m m u n i t y g r o u p s a n d activities, as
w e l l as m e s s a g e s in b a n k statements, to m a r k e t its p r o d ucts a n d services.
T h e 1994 E x a m i n a t i o n a l s o n o t e d that B a n k ' s b o a r d
of directors r e v i e w s B a n k ' s C R A p l a n quarterly a n d
f o r m a l l y a d o p t s the p l a n annually, a n d r e v i e w s a n d app r o v e s t h e C R A S t a t e m e n t at least annually. A senior
officer of the b a n k h a s s e r v e d as C o m m u n i t y A f f a i r s
Officer s i n c e 1991, a n d h e is assisted in h i s C R A r e s p o n sibilities b y a n o t h e r B a n k officer. T h e 1994 E x a m i n a t i o n
f o u n d that the b o a r d of directors h a s d e l e g a t e d sufficient
authority to the C o m m u n i t y A f f a i r s Officer to e n a b l e h i m
to i m p l e m e n t B a n k ' s C R A p l a n .
T h e 1994 E x a m i n a t i o n a l s o c o n c l u d e d that the availability of B a n k ' s services w a s r e a s o n a b l e , in light of the
size a n d n a t u r e of B a n k ' s c o m m u n i t y a n d the size of its
staff. 1 4
Conclusion
Regarding
Convenience
and Needs
Factor
In r e v i e w i n g the overall C R A p e r f o r m a n c e r e c o r d of
B a n k , the B o a r d h a s c a r e f u l l y c o n s i d e r e d t h e e n t i r e
r e c o r d in this case, i n c l u d i n g the c o m m e n t s r e c e i v e d o n
this p r o p o s a l . B a s e d o n a r e v i e w of t h e e n t i r e r e c o r d of
p e r f o r m a n c e , i n c l u d i n g all c o m m e n t s r e c e i v e d , res p o n s e s t o t h o s e c o m m e n t s , a n d r e l e v a n t r e p o r t s of exa m i n a t i o n , the B o a r d h a s c o n c l u d e d that c o n v e n i e n c e
a n d n e e d s c o n s i d e r a t i o n s , including t h e C R A p e r f o r m a n c e r e c o r d of B a n k , are consistent w i t h a p p r o v a l of
this application.
Other
Factors
T h e B o a r d h a s c o n s i d e r e d the financial a s p e c t s of this
p r o p o s a l in light of P r o t e s t a n t s ' c o n t e n t i o n s that a d v e r s e
effects, s u c h as an e x c e s s i v e level of d e b t a n d an u n s a f e
d e b t - t o - e q u i t y ratio, w o u l d result f r o m this p r o p o s a l . 1 5
14. Several Protestants maintained that Bank should provide
specific types of banking services, such as accounts established in
connection with certain bonding requirements. The Board notes
that the CRA does not require an institution to provide any particular type of banking product.
15. Some Protestants also have speculated that the sale price for
this transaction indicates that there are undisclosed financial problems at Bank, and that recent decreases in Bank's deposit levels
indicate a lack of confidence in Bank. In addition, a general
objection has been registered by one Protestant to the dividend
proposed as part of the financing for this transaction. The Board has
carefully considered these comments and has reviewed the pro
forma financial condition of Bank after payment of the dividend
and all other relevant information. On the basis of all the facts of
record, including all commitments and representations made in
connection with this application, the Board has approved the request for Bank to pay the dividend described in the application.
T h e B o a r d n o t e s that B a n k currently is in s a t i s f a c t o r y
financial c o n d i t i o n , a n d that O g d e n ' s d e b t s e r v i c e p r o j e c tions a n d pro forma d e b t - t o - e q u i t y ratio are r e a s o n a b l e
a n d c o n s i s t e n t w i t h the B o a r d ' s g u i d e l i n e s . 1 6 In light of
t h e s e c o n s i d e r a t i o n s a n d all t h e o t h e r f a c t s of r e c o r d ,
i n c l u d i n g r e l e v a n t r e p o r t s of e x a m i n a t i o n , the B o a r d h a s
c o n c l u d e d that financial c o n s i d e r a t i o n s are c o n s i s t e n t
with approval.
T h e B o a r d also h a s c o n s i d e r e d t h e m a n a g e r i a l res o u r c e s a n d f u t u r e p r o s p e c t s of O g d e n a n d B a n k , 1 7 a n d
all o t h e r s u p e r v i s o r y f a c t o r s t h e B o a r d m u s t c o n s i d e r
u n d e r section 3 of the B H C A c t , 1 8 in light of the c o m m e n t s r e c e i v e d . B a s e d o n all t h e f a c t s of r e c o r d , the
B o a r d h a s c o n c l u d e d that t h e s e c o n s i d e r a t i o n s are consistent w i t h a p p r o v a l of this p r o p o s a l . T h e B o a r d also
b e l i e v e s that c o n s i d e r a t i o n s r e l a t e d t o B a n k ' s p r o p o s e d
16. See 12 C.F.R. Part 225, Appendix C (Policy Statement for
Formation of Small One-Bank Holding Companies).
17. The Board has reviewed all the allegations raised by Protestants and other commenters regarding the management of Ogden
and Bank, including those relating to specific transactions (such as
improper loans to insiders and other borrowers), Bank's general
compliance policies and procedures (such as check cashing) and
contentions that the proposed investors lack banking experience.
Recent examination reports for Bank by the Reserve Bank support
management's competence and compliance with applicable regulations and the sufficiency of Bank's financial resources. The Board
also notes that some of the proposed investors in Ogden are
currently members of Bank's board of directors or senior management, and that no major changes in management have been proposed as a result of this proposal. Other comments about investors,
such as a trust that would acquire 5 percent of Ogden's shares, do
not present any adverse regulatory factors. On the basis of all the
facts of record, including relevant examination reports, the Board
has concluded that these comments do not warrant an adverse
finding on the factors the Board must consider under the BHC Act.
18. Some Protestants believe that the financing arrangement
between Ogden and a bank that is controlled by an out-of-state
bank holding company that competes with Bank would result in
decreased competition, restraint of trade, conflicts of interests, and
improper exercise of control over Bank by the lender. Some commenters also contend that foreclosure on Bank stock pledged as
collateral for this loan could violate the Iowa interstate banking
statute, which prohibits an out-of-state bank holding company from
acquiring control of more than 10 percent of the total deposits in
the state. See Iowa Code Ann. § 524.1802 (West 1994). The loan
agreement in this case contains covenants customarily provided by
a borrower in a bona fide loan transaction, and, as such, does not
raise competitive or control issues under the BHC Act. In addition,
the Iowa Superintendent of Banking has informally confirmed that
the Iowa interstate banking statute would not preclude a foreclosure
on the stock pledged as collateral under the circumstances presented in this case. Moreover, the issues raised by Protestants could
be considered in a future application by the out-of-state bank
holding company to control Ogden or Bank. After reviewing all of
Protestants' allegations regarding this loan transaction and other
comments relating to the lender in this transaction, in light of the
facts in the record, the Board has concluded that these comments
do not warrant an adverse finding on the factors the Board must
consider under the BHC Act.
Legal Developments
dividend are consistent with approval of this aspect of
the transaction. 19
Based on the foregoing and all other facts of record,
the Board has determined that the application should be,
and hereby is, approved. 20 This approval is specifically
conditioned upon compliance by Ogden with all of the
commitments made in connection with this application
and with the conditions referred to in this order. For
purposes of this action, these commitments and conditions 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.
This transaction shall not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date
19. The Board has reviewed several comments relating to the
Trust, the administration of the Trust, and the propriety of this
transaction, including allegations that the trustees have violated
their fiduciary duties by selling the Trust's shares in Bank at a price
below fair market value, thereby adversely affecting the resources
of the charitable trust available to benefit the residents of the Ogden
community. These comments also allege that other aspects of the
trustees' proposed sale and administration of the Trust assets generally, including the manner of soliciting bids for Bank's stock and
the use of the Trust's assets in a manner inconsistent with the terms
of the Trust, were improper. The courts have held that issues
relating to stock pricing, exchange ratios, and similar matters
related to conducting stock offerings are generally outside the scope
of the factors enumerated in the BHC Act that the Board is required
to consider. See Western Bancshares, Inc. v. Board of Governors,
480 F.2d 749 (10th Cir. 1973). In addition, an Iowa state district
court with jurisdiction over the Trust has reviewed and approved
this proposal. See In the Matter of the Leonard A. Good Trust, Iowa
District Court for Boone County, in Probate, No. 18954 (November
4, 1994). The Iowa Attorney General, who is charged by statute
with the responsibility for reviewing the activities and transactions
of charitable foundations, was also informed of this transaction and
raised no objection. See Iowa Code Ann. § 633.303 (West 1992).
Based on all the facts of record, the Board has concluded that these
comments do not warrant an adverse finding on the factors the
Board must consider under the BHC Act.
20. One Protestant has requested that the Board hold a public
hearing on this application and permit Protestant to present oral
argument to the Board. Section 3 of the BHC Act does not require
the Board to hold a public hearing on an application unless the
primary supervisor for the bank to be acquired makes a timely
written recommendation of denial, which has not occurred in this
case. Under its rules, the Board may, in its discretion, hold a public
hearing on an application to clarify factual issues related to the
application and to provide an opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has carefully
considered Protestant's request. In the Board's view, Protestant has
had ample opportunity to present written submissions, and has, in
fact, submitted substantial written comments that have been considered by the Board. In light of the foregoing and all other facts of
record, the Board has determined that neither a hearing nor an oral
argument is necessary to clarify the factual record in this application, or otherwise warranted in this case. Accordingly, the request
for a public hearing or oral argument on this application is hereby
denied.
723
of this order, unless such period is extended for good
cause by the Board or by the Reserve Bank, acting
pursuant to delegated authority.
By order of the Board of Governors, effective May 18,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, and Phillips. Absent and
not voting: Governor Yellen.
WILLIAM W. WILES
Secretary of the Board
Concurring Statement of Governor Lindsey
I concur because the facts in this case, including the
"satisfactory" rating in the 1994 Examination, provide a
CRA performance record that is consistent with approval. I note that under the Board's revised CRA regulations, which would become effective for Bank January 1, 1996, we would evaluate this bank under the
performance standards for small banks. These simplified
criteria focus on a bank's lending activities through a
variety of measures, including an institution's loan-todeposit ratio. In this case, Bank's modest loan-to-deposit
ratio would require careful review by examiners under
these new standards. It is important for Bank to be aware
of these changes in the CRA regulations in conducting
its CRA-related activities.
May 18, 1995
Orders Issued Under Section 4 of the Bank
Holding Company Act
Bay Banks, Inc.
Boston, Massachusetts
Order Approving Acquisition of Shares of a Savings
Association
BayBanks, Inc., Boston, Massachusetts ("BayBanks"),
a bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has given notice
under section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23 of the Board's Regulation Y (12 C.F.R. 225.23) of its intention to acquire NFS
Financial Corp., Nashua ("NFS"), 1 and thereby indirectly acquire its thrift subsidiaries, NFS Savings Bank,
Nashua ("Nashua Bank"), and Plaistow Cooperative
1. In connection with this proposal, BayBanks has also requested
approval to acquire an option to purchase up to 9.9 percent of the
outstanding voting shares of NFS. This option would terminate
upon consummation of this proposal.
724
Federal Reserve Bulletin • July 1995
Bank, Plaistow ("Plaistow Bank"), all in New Hampshire. 2
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published (60
Federal Register 18,103 (1995)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act.
BayBanks, with total consolidated assets of
$10.8 billion, operates three banks in Massachusetts and
Connecticut. 3 BayBanks is the second largest commercial or thrift organization in Massachusetts, controlling
deposits of $8.7 billion, representing approximately
8.7 percent of total deposits in depository institutions in
Massachusetts. 4 NFS is the sixth largest commercial or
thrift organization in New Hampshire, controlling deposits of $515.5 million, representing approximately
4.1 percent of total deposits in depository institutions in
New Hampshire.
The Board has determined that the operation of a
savings association is closely related to banking and
permissible for bank holding companies. 12 C.F.R.
225.25(b)(9). In making this determination, the Board
requires that savings associations acquired by bank holding companies conform their direct and indirect activities to those permissible for bank holding companies
under section 4 of the BHC Act. BayBanks has committed to conform all activities of Nashua Bank and
Plaistow Bank to the requirements of section 4 of the
BHC Act and Regulation Y.
Convenience and Needs
Considerations
In considering an application to acquire a savings association under section 4 of the BHC Act, the Board reviews
the records of performance of the relevant institutions
under the Community Reinvestment Act (12 U.S.C.
§ 2901 et seq.) ("CRA"). 5 The CRA requires the federal
2. Upon consummation of this proposal, BayBanks would own
BayBank, FSB, an organization resulting from the merger of
Nashua Bank and Plaistow Bank, through its wholly owned subsidiary, BayBanks New Hampshire, Inc.
3. Asset and state deposit data are as of December 31, 1994.
4. In this context, depository institutions include commercial
banks, savings banks, and savings associations.
5. The Board previously has determined that the CRA by its
terms generally does not apply to applications by bank holding
companies to acquire nonbanking companies under section 4(c)(8)
of the BHC Act. The Mitsui Bank, Ltd., 76 Federal Reserve
Bulletin 381 (1990). The Board also has stated that, unlike other
companies that may be acquired by bank holding companies under
section 4(c)(8) of the BHC Act, savings associations are depository
institutions, as that term is defined in the CRA, and thus acquisitions of savings associations are subject to review under the express
terms of the CRA. Norwest Corporation, 76 Federal Reserve
Bulletin 873 (1990).
financial supervisory agencies to encourage financial
institutions to help meet the credit needs of the local
communities in which they operate, consistent with the
safe and sound operation of such institutions. To accomplish this end, the CRA requires the appropriate federal
supervisory authority to "assess the institution's record
of meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods, consistent with the safe and sound operations of such institution," and to take that record into account in its evaluation of bank holding company applications. 6
The Board has received comments from the New
Hampshire Community Reinvestment Association and
several individuals, including the Mayor of the City of
Nashua, commending the CRA record of NFS and questioning whether BayBanks would continue to assist in
meeting the credit needs, particularly the housing-related
credit needs of low-income individuals, of local communities in the Nashua area. The Board has carefully reviewed these comments in light of the CRA, the Board's
regulations, and the jointly issued Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement"). 7
The Agency CRA Statement provides that a CRA
examination is an important and often controlling factor
in the consideration of an institution's CRA record, and
that reports of these examinations will be given great
weight in the applications process. 8 BayBanks's lead
bank subsidiary, BayBank, Burlington, Massachusetts,
representing approximately 90 percent of its consolidated assets, received a "satisfactory" rating from its
primary supervisor, the Federal Deposit Insurance Corporation, at its most recent examination for CRA performance as of April 1993. BayBanks's Boston bank subsidiary, BayBank Boston, N.A., Boston, Massachusetts
("Boston Bank"), also received a "satisfactory" rating
from its primary supervisor, the Office of the Comptroller of the Currency ("OCC"), at its most recent examination for CRA performance as of March 1993.9 In addi-
6. See 12 U.S.C. § 2903.
7. 54 Federal Register 13,742 (1989).
8. See Agency CRA Statement, at 13,745.
9. The Board notes that BayBanks's other subsidiary bank,
BayBank Connecticut, N.A., Hartford, Connecticut ("Connecticut
Bank"), received three consecutive less-than-satisfactory CRA performance ratings from the OCC. Connecticut Bank represents less
than 1 percent of BayBanks's consolidated assets and was acquired
by BayBanks in connection with the sale of a financially troubled
institution. Because of the poor financial condition of Connecticut
Bank at the "time of its acquisition, Connecticut Bank has focused
its financial and managerial resources on improving the bank's
financial condition. The OCC has informed the Board that management has shown an improved awareness of CRA requirements and
a commitment to raise the level of the bank's performance in
Connecticut, and Connecticut Bank has already implemented
changes to its CRA program that have resulted in a greater volume
Legal Developments
tion, NFS's bank subsidiaries Nashua Bank and Plaistow
Bank received "outstanding" and "satisfactory" ratings,
respectively, from their primary supervisor, the Office of
Thrift Supervision, at their most recent CRA performance examinations. 10
The Board has carefully considered the comments
received from interested parties regarding the CRA performance record of the institutions involved in this proposal in light of the relevant exam reports, the responses
provided by BayBanks, and all other facts of record.
BayBanks has indicated that it intends to continue NFS's
emphasis on housing-related lending, including affordable rental housing, to retain management responsible
for NFS's CRA programs, and to continue NFS's commitment to participate in activities with organizations
within the local community. In addition, BayBanks has
committed to initiate a number of its CRA policies and
programs designed to assist in meeting the credit needs
of local communities, including low- and moderateincome communities, at the NFS institutions acquired in
this proposal. For example, BayBanks will implement its
BayBank Neighborhood Banking Program, a program
used by BayBank Boston for the past six years to meet a
variety of CRA-related credit needs in the Boston area.
Under this program, BayBank Boston has invested in
affordable housing projects and over 650 affordable
rental units in Massachusetts; financed affordable rental
units through loan pools and direct financing; and offered first-time and affordable mortgage programs with
flexible underwriting guidelines and no closing costs for
low- and moderate-income home buyers. In addition,
BayBanks will offer a basic checking account with no
minimum balance requirement and a low monthly service fee.
Based on a review of the entire record of performance,
including information provided by the OCC and relevant
reports of examination, the Board believes that the efforts of BayBanks and its subsidiaries and its plans for
NFS to help meet the credit needs of all segments of its
communities, including low- and moderate-income
neighborhoods, are consistent with approval of this application.
of loans in its delineated community. The Board expects BayBanks
to improve the services and programs available to the areas served
by Connecticut Bank and fully implement programs that address
the concerns raised by the OCC. The Board will consider BayBanks's progress in this regard in future applications to acquire a
depository facility. On this basis, and on the basis of all the facts of
record, the Board believes that BayBanks's proposal is consistent
with approval.
10. Nashua Bank's CRA performance was rated "outstanding"
as of July 1994, and Plaistow Bank's CRA performance was rated
"satisfactory" as of May 1993.
725
Other Considerations
Under section 4 of the BHC Act, the Board also is
required to consider whether the proposal is likely to
result in any significantly adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. 11 BayBanks and NFS compete directly in the Boston
banking market 12 and the market would remain unconcentrated as measured by the Herfindahl-Hirschman Index ("HHI"). 1 3 After considering the competition offered by other depository institutions in the market, the
number of competitors that would remain in the market,
the relatively small increase in concentration as measured by the HHI, and all other facts of record, the Board
concludes that consummation of the proposal would not
result in a significantly adverse effect on competition or
the concentration of banking resources in any relevant
banking market.
Consummation of this proposal would result in an
enhanced selection of services to retail and business
customers, including new automated banking facilities.
11. Two individuals have commented that BayBanks's acquisition of Nashua Bank would result in anticompetitive effects in
Nashua, New Hampshire, which is part of the Boston banking
market. For the reasons discussed below, the Board concludes that
these comments do not present adverse competitive considerations
under the BHC Act for the relevant banking market.
12. The Boston banking market is approximated by the Boston
Metro Ranally Area and the townships of Greenville, Lyndeboro,
and New Ipswich in New Hampshire. Based on deposit and market
data as of June 30, 1994, BayBanks would remain, after consummation, the second largest depository institution in the market, controlling deposits of $8 billion, representing approximately 12.6 percent
of total deposits in depository institutions in the market. Market
share data before consummation are based on calculations in which
the deposits of thrift institutions are included at 50 percent. The
Board previously has indicated that thrift institutions have become,
or have the potential to become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788
(1990); National City Corporation, 70 Federal Reserve Bulletin
743 (1984). Because the deposits of NFS would be transferred to a
commercial banking organization under this proposal, those deposits are included at 100 percent in the calculation of the pro forma
market share. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve Bulletin 669,
670 n.9 (1990).
13. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is less than 1000 is considered unconcentrated.
The Justice Department has informed the Board that a bank merger
or acquisition generally will not be challenged (in the absence of
other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by
more than 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognize the competitive effect
of limited-purpose lenders and other non-depository financial institutions. Upon consummation of this proposal, the HHI in the
Boston banking market would increase 19 points to 855.
726
Federal Reserve Bulletin • July 1995
The Board also finds that consummation of this proposal
is not likely to result in any significantly adverse effects,
such as undue concentration of resources, decreased or
unfair competition, conflicts of interests, or unsound
banking practices that are not likely to be outweighed by
the public benefits. Accordingly, the Board has determined that the balance of public interest factors it must
consider under section 4(c)(8) of the BHC Act is favorable and consistent with approval of the application.
Based on the foregoing and all the facts of record, the
Board has determined that the application should be, and
hereby is, approved. 14 The Board's approval is specifically conditioned on compliance by BayBanks with all
the commitments made in connection with this application. The Board's determination also is subject to all the
conditions set forth in Regulation Y, including those
in sections 225.7 and 225.23(b)(3) of Regulation Y
(12 C.F.R. 225.7 and 225.23(b)), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure compliance with, and to prevent evasion of, the provisions
and purposes of the BHC Act and the Board's regulations and orders issued thereunder. For the purpose of
this action, the commitments and conditions relied on by
the Board in reaching this decision are deemed to be
conditions imposed in writing by the Board in connection with its findings and decision, and, as such, may be
enforced in proceedings under applicable law.
This transaction shall not be consummated later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Boston, acting pursuant
to delegated authority.
By order of the Board of Governors, effective May 30,
1995.
14. Two commenters requested that the Board hold a public
meeting or hearing on this application regarding the ability of
BayBanks to meet the needs of the New Hampshire communities
currently served by NFS. The Board's rules provide that a hearing
is required under section 4 of the BHC Act if there are disputed
issues of material fact that cannot be resolved in some other
manner. 12 C.F.R. 225.23(g). In addition, the Board may, in its
discretion, hold a public meeting or hearing on an application to
clarify factual issues related to the application and to provide an
opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and
262.25(d). The Board has carefully considered the commenters'
requests. In the Board's view, the commenters have had a sufficient
opportunity to present written submissions, and have submitted
written comments that have been considered by the Board. The
Board also concludes that commenters' requests do not identify
disputed issues of fact that are material to the Board's decision. On
the basis of all facts of record, the Board has determined that a
public meeting or hearing is not necessary to clarify the factual
record in this application, or otherwise warranted in this case.
Accordingly, the requests for a public meeting or hearing on this
application are hereby denied.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
First Union Corporation
Charlotte, North Carolina
Order Approving a Notice to Engage in Underwriting
and Dealing in All Types of Debt and Equity Securities
on a Limited Basis, and Certain Swap-Related
Advisory Activities
First Union Corporation, Charlotte, North Carolina
("First Union"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has provided notice under section 4(c)(8) of the
BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23
of the Board's Regulation Y (12 C.F.R. 225.23) of its
proposal to expand the activities of its section 20 subsidiary, First Union Capital Markets Corporation, Charlotte,
North Carolina ("Company"), to include underwriting
and dealing in, to a limited extent, all types of debt and
equity securities (other than ownership interests in openend investment companies), and providing advice with
respect to swaps and swap derivative products 1 based on
commodities, stock, bond, or commodity indices, or a
hybrid of interest rates and such commodities or indices.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(60 Federal Register 10,210 (1995)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act.
First Union, with total consolidated assets of
$77.9 billion, operates subsidiary banks in seven states.2
Company currently is engaged in limited bank-ineligible
securities3 underwriting and dealing activities that are
permissible under section 20 of the Glass-Steagall Act
(12 U.S.C. § 377).4 Company is, and will continue to be,
a broker-dealer registered with the Securities and Exchange Commission ("SEC") under the Securities Ex1. "Swap derivative products" means caps, floors, collars, and
options on swaps, caps, floors, and collars.
2. Asset data are as of March 31, 1995.
3. As used in this order, "bank-ineligible securities" refers to all
types of debt and equity securities that a bank may not underwrite
or deal in directly under section 16 of the Glass-Steagall Act
(12 U.S.C. §24(7)).
4. Company has authority to underwrite and deal in, to a limited
extent, certain municipal revenue bonds, 1-4 family mortgagerelated securities, commercial paper, and consumer-receivablerelated securities. See First Union Corporation, 75 Federal Reserve Bulletin 645 (1989). Company also is authorized to engage in
a variety of other nonbanking activities.
Legal Developments
change Act of 1934 (15 U.S.C. § 78a et seq.) and is a
member of the National Association of Securities Dealers, Inc. ("NASD"). Accordingly, Company is subject to
the record-keeping and reporting obligations, fiduciary
standards, and other requirements of the Securities Exchange Act of 1934, the SEC, and the NASD.
The Board previously has determined that the proposed swap-related advisory activities are closely related
to banking. 5 First Union has committed that Company
will conduct the proposed activities in accordance with
the limitations and conditions relied on by the Board in
Swiss Bank.6
The Board also previously has determined that, subject to the prudential framework of limitations established in previous decisions to address the potential for
conflicts of interests, unsound banking practices, or other
adverse effects ("section 20 firewalls"), the proposed
activities of underwriting and dealing in bank-ineligible
securities are so closely related to banking as to be
proper incidents thereto within the meaning of section
4(c)(8) of the BHC Act. 7 First Union has committed that
Company will conduct the proposed underwriting and
dealing activities using the same methods and procedures, and subject to the same prudential limitations that
were established by the Board in the Section 20 Orders
and other cases.
The Board also has determined that the conduct of
these securities underwriting and dealing activities is
consistent with section 20 of the Glass-Steagall Act
(12 U.S.C. § 377), provided that the company engaged in
the underwriting and dealing activities derives no more
than 10 percent of its total gross revenue from underwriting and dealing in bank-ineligible securities over any
two-year period. 8 First Union has committed that Com-
5. See Swiss Bank Corporation, 81 Federal Reserve Bulletin 185
(1995) ("Swiss Bank").
6. First Union has indicated that it expects that an affiliate of
Company would act as counterparty principal for transactions on
which Company would provide advice. In these situations, Company would be acting as the agent of its affiliate. In order to address
potential conflicts of interest that may arise, First Union has committed that Company will disclose to each customer that an affiliate
of Company will be the counterparty to the customer with respect
to the transaction which is the subject of the advice. See The Long
Term Credit Bank of Japan, Limited, 79 Federal Reserve Bulletin
345, 346 (1993).
7. See Canadian Imperial Bank of Commerce, 76 Federal Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al.,
75 Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities
Industries Ass'n v. Board of Governors of the Federal Reserve
System, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al., 73 Federal
Reserve Bulletin 473 (1987), aff'd sub nom. Securities Industry
Ass'n v. Board of Governors of the Federal Reserve System, 839
F.2d 47 (2d Cir.), cert, denied, 486 U.S. 1059 (1988) (collectively,
"Section 20 Orders").
8. See Section 20 Orders. Compliance with the 10 percent revenue limitation shall be calculated in accordance with the method
727
pany will conduct its underwriting and dealing activities
in bank-ineligible securities subject to the 10-percent
revenue test.9
Under section 4(c)(8) of the BHC Act, the Board
considers the financial and managerial resources of the
notificant and its subsidiaries and the effect of the transaction upon such resources. 10 The Board has reviewed
the capitalization of First Union and Company in accordance with the standards set forth in the Section 20
Orders, and finds the capitalization of each to be consistent with approval. With respect to Company, this determination is based on all the facts of record, including
First Union's projections of the volume of Company's
underwriting and dealing activities in bank-ineligible
securities. On the basis of all the facts of record, including the foregoing, and, with respect to First Union's
proposal to underwrite and deal in bank-ineligible securities, subject to the completion of a satisfactory infrastructure review, the Board has concluded that financial
and managerial considerations are consistent with approval of this notice.
In order to approve this notice, the Board also must
determine that the performance of the proposed activities
by First Union can reasonably be expected to produce
public benefits that would outweigh possible adverse
effects under the proper incident to banking standard of
section 4(c)(8) of the BHC Act. Under the framework
established in this and prior decisions, consummation of
this proposal is not likely to result in any significantly
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
stated in the Section 20 Orders, as modified by the Order Approving Modifications to the Section 20 Orders, 75 Federal Reserve
Bulletin 751 (1989), the Order Approving Modifications to the
Section 20 Orders, 79 Federal Reserve Bulletin 226 (1993), and the
Supplement to Order Approving Modifications to Section 20 Orders, 79 Federal Reserve Bulletin 360 (1993) (collectively, "Modification Orders"). The Board notes that First Union has not adopted
the Board's alternative indexed-revenue test to measure compliance with the 10-percent limitation on bank-ineligible securities
activities, and, absent such election, First Union will continue to
employ the Board's original 10-percent revenue test.
9. As an incident to the proposed underwriting and dealing
activities, First Union proposes that Company engage in risk management activities, such as hedging, in accordance with the Board's
policy statement on derivative transactions, 12 C.F.R. 225.142.
First Union also proposes that Company underwrite bank-ineligible
securities on a best efforts basis. The Board notes that Company
may engage in activities that are necessary incidents to the proposed underwriting and dealing activities, provided that any such
activities are treated as part of the bank-ineligible securities activities unless Company has received specific approval under section
4(c)(8) of the BHC Act to conduct the activities independently.
Until such approval is obtained, any revenues from the incidental
activities must be counted as ineligible revenues subject to the
10-percent revenue limitation set forth in the Section 20 Orders, as
modified by the Modification Orders.
10. See 12 C.F.R. 225.24.
728
Federal Reserve Bulletin • July 1995
interests, or unsound banking practices. The Board expects that consummation of the proposal would provide
added convenience to First Union's customers and would
increase the level of competition among existing providers of these services. Accordingly, the Board has determined that the performance of the proposed activities by
First Union can reasonably be expected to produce public benefits that outweigh possible adverse effects under
the proper incident to banking standard of section 4(c)(8)
of the BHC Act.
Accordingly, and for the reasons set forth in this order
and in the Section 20 Orders, the Board has concluded
that First Union's proposal to engage through Company
in the proposed activities is consistent with the GlassSteagall Act, and that the proposed activities are so
closely related to banking as to be proper incidents
thereto within the meaning of section 4(c)(8) of the BHC
Act, provided that First Union limits Company's activities as specified in this order and the Section 20 Orders,
as modified by the Modification Orders.
On the basis of the record, the Board has determined
to, and hereby does, approve this notice subject to all the
terms and conditions discussed in this order and in the
Section 20 Orders as modified by the Modification Orders. The Board's approval of this proposal extends only
to activities conducted within the limitations of those
orders and this order, including the Board's reservation
of authority to establish additional limitations to ensure
that Company's activities are consistent with safety and
soundness, conflicts of interests, and other relevant considerations under the BHC Act. Underwriting and dealing in any manner other than as approved in this order
and the Section 20 Orders (as modified by the Modification Orders) is not authorized for Company.
The Board's approval of First Union's proposal to
underwrite and deal in all types of debt and equity
securities is conditioned on a future determination by the
Board that First Union and Company have established
policies and procedures to ensure compliance with the
section 20 firewalls and the other requirements of this
order and the Section 20 Orders, including computer,
audit, and accounting systems, internal risk management
controls, and the necessary operational and managerial
infrastructure. Upon notification by the Board that this
condition has been satisfied, Company may immediately
commence the proposed underwriting and dealing activities with respect to bank-ineligible securities, subject to
the other conditions of this order and the Section 20
Orders.
The Board's determination is also subject to all the
terms and conditions set forth in Regulation Y, including
those in sections 225.7 and 225.23(b), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure com
pliance with, and to prevent evasion of, the provisions of
the BHC Act and the Board's regulations and orders
issued thereunder. The Board's decision is specifically
conditioned on compliance with all the commitments
made in connection with this notice, including the commitments discussed in this order and the conditions set
forth in the above-noted Board regulations and orders.
These commitments and conditions shall be deemed to
be conditions imposed in writing by the Board in connection with its findings and decisions, and may be
enforced in proceedings under applicable law.
This transaction shall not be consummated later than
three months after the effective date of this order unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective May 30,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
HSBC Holdings pic
London, England
HSBC Holdings BV
Amsterdam, The Netherlands
Order Approving Notices to Engage in Private
Placement, Riskless Principal, and Other Securities
Related Activities
HSBC Holdings pic, London, England ("HSBC"), and
HSBC Holdings BV, Amsterdam, The Netherlands
("HHBV") (together, "Notificants"), both bank holding
companies within the meaning of the Bank Holding
Company Act ("BHC Act"), have given notice pursuant
to section 4(c)(8) of the BHC Act (12 U.S.C.
§ 1843(c)(8)) and section 225.23(a) of the Board's Regulation Y (12 C.F.R. 225.23(a)) of their intention to
engage through their wholly owned subsidiary, James
Capel Incorporated, New York, New York ("Company"), in the following securities related activities:
(1) Providing investment and financial advice, pursuant to section 225.25(b)(4) of Regulation Y;
(2) Providing securities brokerage services on a
discount and full-service basis, pursuant to section 225.25(b)(15) of Regulation Y;
(3) Acting as agent in the private placement of all
types of securities, and providing related advisory
services; and
Legal Developments
(4) Buying and selling all types of securities on the
order of investors as a "riskless principal."
Notificants propose to conduct the foregoing activities
throughout the United States.
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 13,726 (1995)). 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.
Notificants, with consolidated assets equivalent to approximately $315 billion, are the thirteenth largest commercial banking organization in the world and provide a
wide range of banking, financial, and related services
worldwide through their various subsidiaries and affiliated companies. 1 Notificants own Marine Midland Bank,
Buffalo, New York, the fifth largest commercial bank
in the state, with total deposits of approximately
$12.8 billion. In addition, Notificants' Hong Kong banking subsidiaries, The Hongkong and Shanghai Banking
Corporation Limited and Hang Seng Bank Limited,
maintain branches in Los Angeles and San Francisco,
California; Chicago, Illinois; New York, New York;
Portland, Oregon; and Seattle, Washington; an agency in
Houston, Texas; and representative offices in Newport
Beach and Alhambra, California. Midland Bank pic,
London, England, a banking subsidiary of HSBC, maintains a branch in New York, New York, and Equator
Bank Limited, Nassau, Bahamas, another banking subsidiary of HSBC, maintains representative offices in
Glastonbury, Connecticut, and Washington, D.C.
Company is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the National Association of Securities Dealers
("NASD"). 2 Accordingly, Company is subject to the
recordkeeping, reporting, fiduciary standards, and other
requirements of the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.), the SEC, and the NASD.
The Board previously has determined by regulation
that engaging in financial and investment advisory activities and securities brokerage activities are closely related to banking and permissible for bank holding companies under section 4(c)(8) of the BHC Act. 3
Notificants have committed that Company will conduct
1. Asset and deposit data are as of December 31, 1994.
2. Company currently engages in all the securities related activities described above on a limited basis in connection with the
purchase and sale by U.S. institutional customers of securities of
non-U.S. companies, and acts as financial advisor to its affiliates
and their non-U.S. clients in connection with corporate transactions
in U.S. markets. Notificants received temporary authority to acquire
a controlling interest in Company and to engage in the activities
described in this footnote under section 4(c)(9) of the BHC Act.
3. See 12 C.F.R. 225.25(b)(4) and (15).
729
these activities in accordance with the limitations
imposed by sections 225.25(b)(4) and (15) of Regulation Y.4
Private placement involves the placement of new issues of securities with a limited number of sophisticated
purchasers in a nonpublic offering. A financial intermediary in a private placement transaction acts solely as an
agent of the issuer in soliciting purchasers, and does not
purchase the securities and attempt to resell them. Securities that are privately placed are not subject to the
registration requirements of the Securities Act of 1933
(15 U.S.C. 77a et seq.), and are offered only to financially sophisticated institutions and individuals and not
to the public. Notificants have committed that Company
will not privately place registered securities, and will
only place securities with "institutional customers" as
that term is defined in section 225.2(g) of Regulation Y
(12 C.F.R. 225.2(g)).
"Riskless principal" is the term used in the securities
business to refer to a transaction in which a brokerdealer, after receiving an order from a customer to buy
(or sell) a security, purchases (or sells) the security for its
own account to offset a contemporaneous sale to (or
purchase from) the customer. 5 "Riskless principal"
transactions are understood in the industry to include
only transactions in the secondary market. Thus, under
the proposal, Company would not act as a "riskless
principal" in selling securities at the order of a customer
that is the issuer of the securities to be sold, or in any
transaction where Company has a contractual agreement
to place the securities as agent of the issuer. Company
also would not act as a "riskless principal" in any
transaction involving a security for which it makes a
market.
The Board has previously determined by order that,
subject to prudential limitations that address the potential for conflicts of interests, unsound banking practices,
and other adverse effects, the proposed private placement and riskless principal activities are so closely related to banking as to be a proper incident thereto within
the meaning of section 4(c)(8) of the BHC Act. 6 The
Board also has previously determined that acting as
agent in the private placement of securities, and purchasing and selling securities on the order of investors as a
"riskless principal," do not constitute underwriting and
dealing in securities for purposes of section 20 of the
4. Notificants have advised the Board that Company will not
provide financial and investment advice pursuant to sections
225.25(b)(4)(v) and 225.25(b)(4)(vi)(A)(2) of Regulation Y.
5. See Securities and Exchange Commission Rule 10b-10 (17
C.F.R. 240.1Ob-10(a)(8)(i)).
6. See J.P. Morgan & Company Incorporated, 76 Federal Reserve Bulletin 26 (1990); Bankers Trust New York Corporation, 75
Federal Reserve Bulletin 829 (1989).
730
Federal Reserve Bulletin • July 1995
Glass-Steagall Act (12 U.S.C. § 377), and that revenue
derived from such activities is not subject to the
10 percent revenue limitation on underwriting and dealing in ineligible securities.7 Notificants have committed
that Company will conduct its private placement and
"riskless principal" activities in a manner consistent
with the limitations, methods, and procedures established by the Board in prior orders, as modified to reflect
the status of Notificants as foreign banking organizations. 8
In order to approve these notices, the Board also is
required to determine that the performance of the proposed activities by Notificants can reasonably be expected to produce public benefits which would outweigh
possible adverse effects under the proper incident to
banking standard of section 4(c)(8) of the BHC Act. 9
Under the framework established in this and prior decisions, consummation of this proposal is not likely to
result in any significantly adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.
Moreover, the Board has determined that performance of
the proposes activities by Notificants can reasonably be
expected to produce public benefits, such as added convenience to their customers, that would outweigh any
adverse effects under the proper incident to banking
standard of section 4(c)(8) of the BHC Act.
7 .Id.
8. See The Sumitomo Bank, Limited, 77 Federal Reserve Bulletin
339 (1991); Creditanstalt-Bankverein, 11 Federal Reserve Bulletin
183 (1991); The Royal Bank of Scotland Group PLC, 76 Federal
Reserve Bulletin 866 (1990); Canadian Imperial Bank of Commerce, et al., 76 Federal Reserve Bulletin 158 (1990). As detailed
more fully in these orders, in addition to the commitments imposed
by the Board in connection with underwriting and dealing in
securities, Notificants have committed that Company will maintain
specific records that will clearly identify all "riskless principal"
transactions, and that Company will not engage in any "riskless
principal" transactions for any securities carried on its inventory.
When acting as a "riskless principal," Company will only engage
in transactions in the secondary market, and not at the order of a
customer that is the issuer of the securities to be sold; will not act as
a "riskless principal" in any transaction involving a security for
which it makes a market; and will not hold itself out as making a
market in the securities that it buys and sells as a "riskless principal." Moreover, Company will not engage in "riskless principal"
transactions on behalf of its foreign affiliates that engage in securities dealing activities outside the United States and will not act as
"riskless principal" for registered investment company securities.
In addition, Company will not act as a "riskless principal" with
respect to any securities of investment companies that are advised
by Notificants or any of their affiliates. With regard to private
placement activities, Notificants have committed that Company
will not privately place registered investment company securities or
securities of investment companies that are advised by Notificants
or any of their affiliates.
9. 12 U.S.C. § 1843(c)(8).
In every case involving a nonbanking acquisition by a
bank holding company under section 4 of the BHC Act,
the Board considers the financial condition and resources
of the applicant and its subsidiaries and the effect of the
proposal on these resources. 10 In this case, the Board
notes that Notificants meet the relevant risk-based capital standards consistent with the Basle Accord, and have
capital equivalent to that which would be required of a
United States banking organization. In view of these and
other facts of record, the Board has determined that the
financial factors are consistent with approval of these
notices. The managerial resources of Notificants also are
consistent with approval. 11
Based on the foregoing and other facts of record, and
subject to the commitments made by Notificants, the
Board has determined that the balance of public interest
factors it is required to consider under section 4(c)(8) is
favorable. Accordingly, the Board has determined that
these notices should be, and hereby are, approved, subject to all the terms and conditions set forth in this order,
and in the Board regulations and orders noted above.
The Board's determination also is subject to all the terms
and conditions set forth in its Regulation Y, including
those in sections 225.7 and 225.23(b), and to the Board's
authority to require modification or termination of the
activities of a bank holding company or any of its
subsidiaries as the Board finds necessary to assure compliance with, and to prevent evasion of, the provisions of
the BHC Act, and the Board's regulations and orders
issued thereunder. The Board's decision is specifically
conditioned on compliance with all the commitments
made in these notices, including the commitments discussed in this order and the conditions set forth in the
Board orders noted above. These commitments and conditions shall both be deemed to be conditions imposed in
writing by the Board in connection with its findings and
10. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal
Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987).
11. In reaching this conclusion, the Board has carefully reviewed
a settlement recently entered into by Company with the SEC
concluding an enforcement action concerning Company's involvement in the private placement of shares of a foreign company in
1991 and the Company's retention of and failure to disclose excess
local charges on certain customer trades in foreign markets from
1989 through 1992. Company has neither admitted nor denied any
violations of Federal securities laws, but in settlement of this action
has agreed to pay a civil money penalty and disgorge the net
amount of the excess local charges on foreign trades, with interest.
Based on all the facts of record, including the terms of Company's
settlement with the SEC and the actions undertaken by Company to
improve its operational controls and management in the areas cited
by the SEC and other areas, the Board does not believe that
Company's alleged activities warrant adverse consideration of this
proposal under the BHC Act.
Legal Developments
decisions, and, as such, may be enforced in proceedings
under applicable law.
This transaction shall not be consummated later that
three months after the effective date of this order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of New York, acting pursuant to delegated authority.
By order of the Board of Governors, effective May 25,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, and Phillips. Absent and
not voting: Governor Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
The Industrial Bank of Japan, Limited
Tokyo, Japan
Order Approving a Notice to Engage in Certain
Nonbanking Activities
The Industrial Bank of Japan, Limited, Tokyo, Japan
("IBJ"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
provided notice under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23), of its intention to acquire Aubrey G. Lanston & Co., Inc., New
York, New York ("Lanston"), from IBJ's subsidiary
bank, IBJ Schroder Bank & Trust Company, New York,
New York ("Bank"), and thereby engage in the following activities:
(1) Underwriting and dealing in bank-eligible instruments pursuant to 12 C.F.R. 225.25(b)(16);
(2) Providing investment advisory services pursuant
to 12 C.F.R. 225.25(b)(4); 1
(3) Trading foreign exchange in the spot market for
nonhedging purposes; and
(4) Executing and clearing, clearing without executing, executing without clearing, purchasing and selling through the use of omnibus accounts, and provid-
1. Lanston's investment advisory activities would include providing swaps-related advisory services to unaffiliated parties. See
12 C.F.R. 225.25(b)(4)(vi)(A). IBJ states that Lanston also would
provide swaps-related transactional services to affiliates. In order to
address potential conflicts of interest, IBJ has committed that
Lanston will disclose to unaffiliated customers that receive swapsrelated advisory services that Lanston may have an interest as
broker in the course of action ultimately chosen by the customer,
and, if Lanston arranges a swap transaction between an unaffiliated
customer that receives advisory services and an affiliate, the unaffiliated customer will be informed that Lanston is acting on behalf of
an affiliate. See The Long Term Credit Bank of Japan, Limited, 79
Federal Reserve Bulletin 345, 346 (1993).
731
ing investment advice with respect to certain futures
and options on futures on financial commodities. 2
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(59 Federal Register 63,048 (1994)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act.
IBJ, with total consolidated assets equivalent to approximately $398 billion, is the seventh largest commercial banking organization in Japan. 3 IBJ's United States
subsidiaries include Bank; branches in New York, New
York, and Chicago, Illinois; agencies in Los Angeles,
California, Atlanta, Georgia, and San Francisco, California; and representative offices in Houston, Texas, and
Washington, D.C.
Lanston is registered as a futures commission merchant with the Commodity Futures Trading Commission
("CFTC"), and is a member of the National Futures
Association ("NFA"). Therefore, Lanston is subject to
the recordkeeping, reporting, fiduciary standards, and
other requirements of the Commodity Exchange Act
(7 U.S.C. § 1 et seq.), the CFTC, and the NFA. In addition, Lanston is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer under
the Securities Exchange Act of 1934 (15 U.S.C. § 78a
et seq.) and is a member of the National Association of
Securities Dealers, Inc. ("NASD"). Therefore, Lanston
is subject to the recordkeeping, reporting, fiduciary standards, and other requirements of the Securities Exchange
Act of 1934, the SEC, and the NASD.
The Board previously has determined by order or
regulation that the proposed activities, when conducted
within limitations established by the Board in its regulations, orders and related interpretations, are closely related to banking. 4 IBJ has committed that it will conduct
these activities in accordance with the limitations established by the Board.
2. Lanston would provide these services only to institutional
customers, as defined in Regulation Y. 12 C.F.R. 225.2(g). Lanston
would conduct the proposed clearing-only, execution-only and
omnibus account activities in accordance with the limitations,
conditions and commitments previously relied on by the Board. See
Northern Trust Corporation, 79 Federal Reserve Bulletin 723
(1993) ("Northern Trust").
3. Asset data are as of September 30, 1994, and use exchange
rates then in effect. Ranking data are as of March 31, 1994.
4. See 12 C.F.R. 225.25(b)(4); 12 C.F.R. 225.25(b)(16);
12 C.F.R. 225.25(b)(19); 12 C.F.R. 225.25(b)(18) and Northern
Trust (executing and clearing, executing, clearing, and purchasing
and selling through omnibus accounts, futures and options on
futures on financial commodities); and The Nippon Credit Bank,
Ltd., 75 Federal Reserve Bulletin 308 (1989) (trading foreign
exchange for nonhedging purposes).
732
Federal Reserve Bulletin • July 1995
In order to approve this notice, the Board also must
determine that the performance of the proposed activities
by IBJ "can reasonably be expected to produce benefits
to the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices." 5 The Board expects that the proposal would produce gains in efficiency for IBJ. Accordingly, based on all the facts of
record, including the commitments provided by IBJ regarding its conduct of the proposed activities, the Board
has concluded that approval of the notice can reasonably be expected to produce public benefits that would
outweigh possible adverse effects under the proper incident to banking standard of section 4(c)(8) of the BHC
Act.
In every case under section 4 of the BHC Act, the
Board also must consider the financial condition and
resources of the notificant and its subsidiaries and the
effect of the proposal on these resources. 6 In this case,
the Board notes that IBJ'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. In view of these and other facts of record, the Board
has determined that the financial factors are consistent
with approval of this notice. The managerial resources of
IBJ also are consistent with approval.
Based on the foregoing and all the facts of record,
including all the representations and commitments made
by IBJ in this case, the Board has determined to, and
hereby does, approve the notice subject to all the terms
and conditions set forth in this order, and in the abovenoted Board regulations and orders that relate to these
activities. The Board's determination also is subject to
all the terms and conditions set forth in the Board's
Regulation Y, including those in sections 225.7 and
225.23(b), and to the Board's authority to require modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act, and the
Board's regulations and orders issued thereunder. The
Board's decision is specifically conditioned on compliance with all the commitments made by IBJ in this
notice, including the commitments discussed in this order and the conditions set forth in this order and in the
above-noted Board regulations and orders. For purposes
of this action, these commitments and conditions shall
5. 12 U.S.C. § 1843(c)(8).
6. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve Bulletin 155 (1987).
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.
This transaction shall not be consummated later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or
by the Federal Reserve Bank of New York, pursuant to
delegated authority.
By order of the Board of Governors, effective May 18,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Norwest Corporation
Minneapolis, Minnesota
Order Approving a Notice to Engage De Novo in
Providing Employment Information
Norwest Corporation, Minneapolis, Minnesota ("Norwest"), a bank holding company within the meaning of
the Bank Holding Company Act ("BHC Act"), has
given notice under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23) of its intention
to engage de novo through its subsidiary, Norwest Mortgage Corporation, Des Moines, Iowa ("Norwest Mortgage"), in providing employment histories to third parties for a fee.
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published (60
Federal Register 13,987 (1995)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors
set forth in section 4(c)(8) of the BHC Act.
Norwest, with total consolidated assets of approximately $59.3 billion, controls bank subsidiaries in
15 states.1 Norwest also engages directly and through
subsidiaries in a broad range of permissible nonbanking
activities.
Proposed Activities
The employment histories to be provided by Norwest
Mortgage would include the names of past and current
employers of an individual, and the salary and length of
employment for each position, if the individual has
consented to the release of such information. Norwest
1. Asset data are as of December 31, 1994.
Legal Developments
Mortgage would compile an individual's employment
history from information available from state departments of employment services and other similar sources.
This information would be provided for a fee to any
third-party credit grantor for the purpose of assessing the
creditworthiness of a prospective borrower. 2
Norwest also proposes to provide employment histories to third-party depository institutions, including credit
unions, and their affiliates for use in the regular course of
their business. However, regardless of whether the customer is a third-party depository institution or other
credit grantor, the proposed activity would only involve
providing employment information, and Norwest does
not propose to provide any additional service, such as
analyzing an individual's creditworthiness.
In order to approve a proposal under section 4(c)(8) of
the BHC Act, the Board is required to determine that the
proposed activity is "so closely related to banking as to
be a proper incident thereto." 3 The Board has not previously determined that providing employment information to third parties for a fee is closely related to banking
under section 4 of the BHC Act and permissible for bank
holding companies.
733
extend credit. Norwest Mortgage would provide such
information to third-party credit grantors only with the
express consent of the individual involved. In addition,
Norwest has committed that Norwest Mortgage will
comply with the Fair Credit Reporting Act (15 U.S.C.
§ 1681 et seq.) ("FCRA"), and all applicable state and
federal laws and regulations in performing the proposed
activity. In the normal course of their lending activities,
banks collect and analyze employment and salary information, including names of past and current employers
and salary histories. The Board previously has determined that providing past credit information, which includes employment history information, to a credit
grantor who is considering a borrower's application for
credit is an activity that is closely related to banking and
permissible for bank holding companies. 5
Accordingly, the Board concludes that providing employment histories to third-party credit grantors for use
in making decisions to extend credit is an activity that is
closely related to banking under the National Courier
standard.
2. Activities by Depository Institutions Not
Related to Credit
A. Closely Related to Banking Analysis
Under the National Courier test, the Board may find that
an activity is closely related to banking for purposes of
section 4(c)(8) if the Board concludes that banks generally:
(1) Provide the proposed services;
(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. 4
1. Credit-Related Activities of Third Parties
Norwest Mortgage would provide employment histories
to third-party credit grantors, including depository and
non-depository grantors, for use in making decisions to
2. Credit grantors could include lessors, if the leasing transaction
were the functional equivalent of an extension of credit.
3. 12 U.S.C. § 1843(c)(8).
4. See National Courier Association v. Board of Governors, 516
F.2d 1229, 1237 (D.C. Cir. 1975) ("National Courier"). In addition, the Board may consider any other basis that may demonstrate
that the proposed activity has a reasonable or close connection or
relationship to banking or managing and controlling banks. See
Board Statement Regarding Regulation Y, 49 Federal Register 794,
806 (1984); Securities Association v. Board of Governors, 468 U.S.
207, 210-211 n. 5 (1984).
Norwest also proposes to provide employment histories
to depository institutions and their affiliates for use in the
regular course of their business, including, for example,
hiring employees for such institutions. Norwest Mortgage would provide such information to these entities
only with the express consent of the individual involved.
In addition, Norwest has committed that Norwest Mortgage will comply with the FCRA and all applicable state
and federal laws and regulations in performing the proposed activity. The Board previously has permitted bank
holding companies to provide employment information,
including employment histories, to depository institutions and their affiliates in connection with the provision
of career counseling services. 6 To the extent that these
organizations use the information to be provided by
Norwest Mortgage for other purposes, it will only be
used in connection with the operation of their banking
business.
Accordingly, the Board concludes that providing employment histories for the use by depository institutions
and their affiliates in their regular course of business is
an activity that is closely related to banking under the
National Courier standard.
5. See 12 C.F.R. 225.25(b)(24). Norwest has committed not to
promote Norwest Mortgage as a provider of employment information to non-depository institutions for general business purposes
unrelated to credit decisions.
6. See Comerica Incorporated, 80 Federal Reserve Bulletin
51 (1994).
734
Federal Reserve Bulletin • July 1995
B. Proper Incident to Banking Analysis
In determining whether an activity is a proper incident to
banking, the Board must consider whether the activity
"can reasonably be expected to produce benefits to the
public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests, or
unsound banking practices." 7 Norwest has committed
that Norwest Mortgage will engage in the proposed
activities only upon the express consent of the individual
involved, and will comply with the FCRA and all applicable state and federal laws and regulations in performing the proposed activities. There is no evidence in the
record to indicate that the proposed activities would lead
to any undue concentration of resources, unsound banking practices, or other adverse effects. In addition, the
record indicates that Norwest's de novo entry of Norwest Mortgage into this market could result in new
products and services, increased convenience for customers, and greater efficiencies.
For these reasons, the Board believes that Norwest's
provision of employment information, as described
above, is not likely to result in significantly adverse
effects that would outweigh the public benefits of Norwest's proposal. The financial and managerial resources
of Norwest and Norwest Mortgage also are consistent
with approval.
Based on the foregoing and all the facts of record, the
Board has determined that the notice should be, and
hereby is, approved. Approval of this proposal is specifically conditioned on compliance by Norwest and Norwest Mortgage with the commitments made in connection with this notice. The Board's determination also is
subject to all the terms and conditions set forth in Regulation Y, including those in sections 225.7 and 225.23(b)
of Regulation Y, and to the Board's authority to require
such modification or termination of the activities of a
bank holding company or any of its subsidiaries as the
Board finds necessary to ensure compliance with, and to
prevent evasion of, the provisions of the BHC Act and
the Board's regulations and orders issued thereunder.
For purposes of this transaction, these commitments and
conditions 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.
These activities shall not be commenced later than
three months after the effective date of this order, unless
such period is extended for good cause by the Board or
7. 12 U.S.C. § 1843(c)(8).
by the Federal Reserve Bank of Minneapolis, pursuant to
delegated authority.
By order of the Board of Governors, effective
May 8, 1995.
Voting for this action: Chairman Greenspan and Governors
Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
North Fork Bancorporation, Inc.
Mattituck, N e w York
Order Approving Acquisition of Shares of a Bank
Holding Company
North Fork Bancorporation, Inc., Mattituck, New York
("North Fork"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire up to 19.9 percent of the
voting shares of Suffolk Bancorp ("Suffolk") and
thereby indirectly acquire an interest in Suffolk's wholly
owned subsidiary bank, The Suffolk County National
Bank, both of Riverhead, New York. North Fork also has
given notice under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23) of its intention
to acquire an indirect interest in Suffolk's wholly owned
subsidiary, Island Computer Corporation of New York,
Inc., Bohemia, New York ("Island Computer"), and
thereby engage in data processing activities under section 225.25(b)(7) of Regulation Y.
Notice of this proposal, affording interested persons an
opportunity to submit comments, has been published (60
Federal Register 7970 (1995)). 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 sections 3 and 4 of the BHC Act.
North Fork, with consolidated assets of approximately
$2.7 billion, is the 15th largest commercial banking
organization in New York, controlling total deposits of
approximately $2.3 billion, representing 1 percent of
total deposits in commercial banking organizations in
the state.1 Suffolk, with consolidated assets of approximately $812 million, is the 28th largest commercial
banking organization in New York, controlling approximately $725 million in deposits, representing less than
1. Asset and deposit data are as of December 31, 1994.
Legal Developments
1 percent of total deposits in commercial banking organizations in the state. If North Fork were deemed to
control Suffolk after consummation of this proposal,
North Fork would become the 14th largest commercial
banking organization in New York, controlling approximately $3 billion in deposits, representing 1.3 percent of
total deposits in commercial banking organizations in
the state.
Competitive
Considerations
The Board has previously indicated that the acquisition
of less than a controlling interest in a bank is not a
normal acquisition for a bank holding company. 2 However, the requirement in section 3(a)(3) of the BHC Act
that the Board's approval be obtained before a bank
holding company acquires more than 5 percent of the
voting shares of a bank suggests that Congress contemplated the acquisition by bank holding companies of
between 5 and 25 percent of the voting shares of banks.
Moreover, nothing in section 3(c) of the BHC Act requires denial of an application solely because a bank
holding company proposes to acquire less than a controlling interest in a bank or a bank holding company. On
this basis, the Board has previously approved the acquisition by a bank holding company of less than a controlling interest in a bank. 3
The question of whether a minority interest in a competing bank would result in a substantial lessening of
competition must be answered in light of the specific
facts of record in each case. 4 The Board views these
acquisitions with concern and continues to believe that
controlling interests in directly competing banks or bank
holding companies may raise serious questions under the
BHC Act. The Board has noted previously that one
company need not acquire control of another in order
substantially to lessen competition between them. It is
possible, for example, that the acquisition of a substantial ownership interest in a competitor or a potential
competitor of the acquiring firm may alter the market
behavior of both firms in such a way as to weaken or
eliminate independence of action between the organizations and increase the likelihood of cooperative operations. 5
2. See, e.g., State Street Boston Corporation, 67 Federal Reserve
Bulletin 862, 863 (1981).
3. See, e.g., Mansura Bancshares, Inc., 79 Federal Reserve
Bulletin 37 (1993) ("Mansura") (acquisition of 9.7 percent of the
voting shares of a bank holding company); SunTrust Banks, Inc., 76
Federal Reserve Bulletin 542 (1990) ("SunTrust") (acquisition of
up to 24.99 percent of the voting shares of a bank); First State
Corporation, 76 Federal Reserve Bulletin 376 (1990) ("First
State") (acquisition of 24.9 percent of the voting shares of a bank).
4. See, e.g., Mansura; SunTrust; First State.
5. See Mansura at 38.
735
Based on all the facts of record, it is the Board's
judgment in this case that no significant reduction in
competition is likely to result from this proposal. North
Fork has agreed to abide by certain commitments previously relied on by the Board in cases involving minority
investments. 6 For example, North Fork has committed
not to exercise a controlling influence over the management or policies of Suffolk or its subsidiary banks; not to
have any director, officer, or employee interlocks with
Suffolk; and not to solicit or participate in soliciting
proxies with respect to any matter presented to the
shareholders of Suffolk. In addition, North Fork has
committed not to exercise any enhanced shareholder
rights that it would acquire at any time as a result of its
ownership of more than 5 percent of Suffolk voting
shares to obtain nonpublic information concerning the
performance, condition, or business plans of Suffolk; not
to participate in Suffolk's decisionmaking or to communicate with other Suffolk shareholders; and not to refer to
Suffolk or its interest in Suffolk in any future advertising
or solicitation of customers. North Fork also is prohibited by its commitments and the BHC Act from acting
either alone or in concert with any other entity to control
Suffolk without prior Board approval. Moreover, the
record in this case indicates that the proposed increased
investment by North Fork in Suffolk is not likely to
weaken or eliminate the independence of Suffolk. In
particular, the management of Suffolk has indicated its
intention to remain completely independent of North
Fork, and North Fork has committed not to attempt to
exercise control over the management or policies of
Suffolk. In this light, the Board believes that North Fork
would not be able to weaken or eliminate the independence of action between the two organizations under the
circumstances presented in this proposal.
Definition of the Relevant Banking Market
The Board also has considered this proposal on the basis
that North Fork would have the ability to alter the
market behavior of both organizations in an anticompetitive manner. The BHC Act provides that the Board may
not approve a proposal under section 3 of the BHC Act
that would result in a monopoly or if the effect of the
proposal may be substantially to lessen competition in
any relevant market. The Board has carefully considered
the comments of Suffolk management ("Protestant")
that the relevant geographic market for analyzing the
competitive effects of this proposal should be limited to
the five easternmost townships of Suffolk County, New
York, which are on the eastern end of Long Island
6. See, e.g., Mansura at 39. These commitments are set forth as
numbers 1 through 11 in the Appendix.
736
Federal R e s e r v e B u l l e t i n • July 1 9 9 5
( " e a s t e r n S u f f o l k C o u n t y " ) , 7 a n d that c o n s u m m a t i o n of
this p r o p o s a l w o u l d substantially lessen c o m p e t i t i o n f o r
b a n k i n g services in this area. In P r o t e s t a n t ' s v i e w , local
c u s t o m e r s h a v e n o r e a s o n a b l e alternatives f o r b a n k i n g
services e x c e p t d e p o s i t o r y institutions l o c a t e d in e a s t e r n
S u f f o l k C o u n t y , a n d N o r t h F o r k w o u l d b e able t o raise
p r i c e s or r e d u c e service in e a s t e r n S u f f o l k C o u n t y witho u t c o n c e r n a b o u t c o m p e t i t i o n f r o m o u t s i d e this area. 8
T h e B o a r d a n d the c o u r t s h a v e f o u n d that the r e l e v a n t
b a n k i n g m a r k e t f o r a n a l y z i n g t h e c o m p e t i t i v e effects of a
p r o p o s a l m u s t reflect c o m m e r c i a l and b a n k i n g realities
a n d m u s t c o n s i s t of the local area w h e r e the b a n k s
i n v o l v e d o f f e r their services a n d w h e r e local c u s t o m e r s
c a n p r a c t i c a b l y t u r n f o r alternatives. 9 T h e B o a r d h a s
c o n s i d e r e d all the f a c t s in this case, i n c l u d i n g the c o m m e n t s a n d i n f o r m a t i o n p r o v i d e d b y Protestant a n d o t h e r
c o m m e n t e r s 1 0 a n d a study c o n d u c t e d b y the F e d e r a l
R e s e r v e B a n k of N e w Y o r k ( " R e s e r v e B a n k " ) , a n d
c o n c l u d e s that the r e l e v a n t g e o g r a p h i c m a r k e t to e v a l u ate the c o m p e t i t i v e effects of this p r o p o s a l is the M e t r o politan N e w Y o r k - N e w J e r s e y B a n k i n g M a r k e t ( " N e w
Y o r k M a r k e t " ) , w h i c h i n c l u d e s eastern S u f f o l k County. 1 1
D a t a g a t h e r e d b y the C e n s u s B u r e a u in 1990 i n d i c a t e
e x t e n s i v e c o m m u t i n g b e t w e e n eastern S u f f o l k C o u n t y
7. This area comprises the townships of East Hampton, Riverhead, Shelter Island, Southampton, and Southold. According to
Protestant, this area is characterized by seasonal economic activity,
including agriculture, fishing, and tourism, a relatively low population density, and predominantly small businesses. Protestant asserts
that these characteristics distinguish the financial needs of this area
from those of the adjoining metropolitan area.
8. Protestant also asserts that any definition of the relevant
banking market larger than eastern Suffolk County would not
adequately take into consideration the competitive consequences of
this proposal for small business borrowers in this area. For reasons
explained in previous orders, the Board continues to believe that
the competitive analysis of banking expansionary proposals should
be based on the availability of the cluster of banking services to a
range of customers in the local banking market. See, e.g., First
Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991); see also
United States v. Philadelphia National Bank, 374 U.S. 321 (1963).
9. See St. Joseph Valley Bank, 68 Federal Reserve Bulletin 673,
674 (1982).
10. The Board received comments from 47 individuals and small
businesses in Suffolk County who assert that the proposal would
result in monopolistic market power by North Fork that would
reduce the availability and increase the cost of banking products
and services, reduce the quality and convenience of available
banking products and services, and discourage other competitors
from entering the market. These commenters also assert that the
proposal would reduce employment in eastern Suffolk County.
11. The Metropolitan New York-New Jersey 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.
a n d t h e rest of t h e N e w Y o r k M a r k e t . 1 2 F o r e x a m p l e ,
2 2 p e r c e n t of the l a b o r f o r c e r e s i d i n g in e a s t e r n S u f f o l k
C o u n t y c o m m u t e to w o r k e l s e w h e r e in the N e w Y o r k
M a r k e t , i n c l u d i n g 4 p e r c e n t w h o c o m m u t e to N e w Y o r k
City. M o r e o v e r , a p p r o x i m a t e l y 2 6 p e r c e n t of all p e r s o n s
e m p l o y e d in e a s t e r n S u f f o l k C o u n t y c o m m u t e f r o m o t h e r
parts of the N e w Y o r k M a r k e t . 1 3 T h e h i g h level of
c o m m u t i n g b e t w e e n e a s t e r n S u f f o l k C o u n t y a n d t h e rest
of the N e w Y o r k M a r k e t i n d i c a t e s substantial e c o n o m i c
i n t e g r a t i o n b e t w e e n the t w o areas, i n c l u d i n g a c c e s s to
a l t e r n a t i v e p r o v i d e r s of financial services. 1 4
In p r e v i o u s cases, the B o a r d also h a s u s e d t h e R a n a l l y
M e t r o p o l i t a n A r e a ( " R M A " ) as a g u i d e i n d e f i n i n g t h e
r e l e v a n t g e o g r a p h i c b a n k i n g m a r k e t . 1 5 In this i n s t a n c e ,
t h e N e w Y o r k R M A e x t e n d s into e a s t e r n S u f f o l k C o u n t y
a n d to w i t h i n five m i l e s of the t o w n of R i v e r h e a d , the
p r i n c i p a l b u s i n e s s c e n t e r in e a s t e r n S u f f o l k C o u n t y outside t h e N e w Y o r k R M A . 1 6 M o r e o v e r , the t o w n of
R i v e r h e a d is c o n n e c t e d to t h e N e w Y o r k R M A b y an
interstate h i g h w a y , a n d the R i v e r h e a d b u s i n e s s c e n t e r is
less t h a n 2 0 m i l e s a l o n g m a j o r h i g h w a y s f r o m f u l l
12. The Board has previously recognized that commuting patterns are a significant factor in the determination of a relevant
geographic banking market. See Crestar Bank, 81 Federal Reserve
Bulletin 200, 201 fn. 5 (1995); St. Joseph Valley Bank, supra, at
674; U.S. Bancorp, 67 Federal Reserve Bulletin 60, 61 fn. 2 (1981).
13. The Board notes that eastern Suffolk County provides more
jobs to the rest of the New York Market than the rest of the New
York Market provides to eastern Suffolk County. The net surplus of
jobs in eastern Suffolk County is especially noteworthy in view of
the disparity in population between eastern Suffolk County and
even its closest neighbors in the New York Market. For example,
based on 1990 census data, Brookhaven township alone, which
adjoins eastern Suffolk County to the west, has nearly four times as
large a population. The Board considers the role of eastern Suffolk
County as a source of employment for the rest of the New York
Market to be a significant indicator of economic integration between eastern Suffolk County and the rest of the New York Market.
14. The Board notes that Suffolk, in its 1993 annual report to
shareholders, frequently described its "primary lending market" as
all of Suffolk County, and, in its 1993 Form 10-K report to the
Securities and Exchange Commission, included the town of
Brookhaven, in Brookhaven township, in its "main service area."
Nearly all commercial banks and thrift institutions operating in
eastern Suffolk County also maintain branches in Brookhaven
township.
15. An RMA generally consists of a defined geographical area
with a relatively high population density that is demographically
and commercially integrated by commuting, retail, and wholesale
trade patterns. It typically includes a central city or cities and all
adjacent continuously built up areas and certain other areas. See St.
Joseph Valley Bank, supra at 674.
16. The Board notes that the current definition of the New York
RMA is based on 1980 census data, and that certain data subsequently collected suggest that the updated RMA could extend even
further into eastern Suffolk County. For example, wholesale trade
in Suffolk County increased 36.2 percent between 1982 and 1987,
compared to 8.6 percent for the entire state, and the population in
Suffolk County increased 4 percent between 1990 and 1994, compared to 1.4 percent for the entire state.
Legal Developments
service-branches of several large banking organizations
serving all of Suffolk County. The record indicates that
several banks have assigned loan officers located outside
of eastern Suffolk County to make business calls in
eastern Suffolk County or accept walk-in loan applications from customers from eastern Suffolk County. Overall, 14 commercial banks, including several large regional, national, and international banking organizations,
and nine thrift institutions compete in eastern Suffolk
County and Brookhaven township. Substantial lending
capacity exists within the immediate geographical area
to respond to the banking needs of eastern Suffolk
County.
After review of these data and other facts of record,
including Protestant's comments and comments from
Suffolk's customers, the Board concludes that the record
indicates that customers in eastern Suffolk County can
practicably turn to providers of banking services in the
New York Market. On this basis, the Board disagrees
with Protestant's contention that the geographic market
in this case should be limited to eastern Suffolk County.
Instead, based on all the facts of record, including Protestant's comments and those of Suffolk's customers and
studies conducted by the Reserve Bank, the Board finds
that the relevant geographic market in this case is the
New York Market, including eastern Suffolk County.
North Fork and Suffolk compete directly in the New
York Market. North Fork is the 22d largest commercial
bank or thrift institution ("depository institution") in the
market, controlling deposits of approximately $2.3 billion, representing less than 1 percent of total deposits in
depository institutions in the market ("market deposits"). 17 Suffolk is the 54th largest depository institution
in the market, controlling deposits of approximately
$723 million, representing less than 1 percent of market
deposits. If considered as a combined organization,
North Fork would become the 19th largest depository
institution in the New York Market, controlling total
deposits of approximately $3 billion, representing less
than 1 percent of market deposits. The HerfindahlHirschman Index ("HHI") would increase less than
1 point to 531. 18
17. Market share data are as of June 30, 1994. Market share data
are based on calculations in which the deposits of thrift institutions
are included at 50 percent. The Board has previously indicated that
thrift institutions have become, or have the potential to become,
major competitors of commercial banks. See WM Bancorp, 76
Federal Reserve Bulletin 788 (1990); National City Corporation,
70 Federal Reserve Bulletin 743 (1984).
18. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (1984), a market in which the postmerger HHI is less than 1000 is considered to be unconcentrated.
The Department of Justice has informed the Board, that, as a
general matter, a bank merger or acquisition will not be challenged,
in the absence of other factors indicating anticompetitive effects,
737
As in other cases, the Board also has sought comments
from the United States Attorney General's office, the
Office of the Comptroller of the Currency ("OCC"), and
the Federal Deposit Insurance Corporation ("FDIC") on
the competitive effects of this proposal. The Attorney
General, OCC, and FDIC did not object to consummation of the proposal or indicate that the proposal would
have any significantly adverse competitive effects in the
New York Market.
In light of the unconcentrated nature of the New York
Market as measured by the HHI, the number of competitors that would remain in the market, and other facts of
record, the Board concludes that, even if North Fork
could alter the market behavior of both organizations in
an anti-competitive manner, this proposal is not likely to
result in any significantly adverse effect on competition
in the New York Market.
Other Considerations
The Board also has reviewed information about the
financial and managerial resources 19 and future prospects 20 of North Fork, Suffolk, and their respective subsidiaries, and other supervisory factors the Board must
unless the post-merger HHI is at least 1800 and the merger or
acquisition increases the HHI by 200 points. The Department of
Justice has stated that the higher-than-average HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limited-purpose lenders and other
non-depository financial entities.
19. Protestant alleges that certain officers and directors of North
Fork acted in concert with North Fork to acquire less than 1 percent
of Suffolk voting stock which, when combined with the 4.9 percent
of Suffolk's voting stock directly owned by North Fork, would
result in North Fork's controlling in excess of 5 percent of the
outstanding voting stock of Suffolk without prior Board approval as
required by section 3 of the BHC Act. Based on all the facts of
record, the Board believes that the ownership of shares of Suffolk's
voting stock by North Fork and its officers and directors is consistent with the requirements of the BHC Act. For example, all the
shares were acquired by gift or purchase in small amounts at
various times over several years, without financing or advice from
North Fork or arrangements with North Fork for their disposition.
Moreover, at the time the shares were acquired, North Fork owned
less than 5 percent of Suffolk voting stock and, therefore, these
acquisitions were not subject to the regulatory presumption of
control by North Fork. See 12 C.F.R. 225.31(d)(2)(H).
20. Several commenters raised questions about the financial
stability of North Fork and objected to the acquisition of an
independent, locally owned bank. The Board has reviewed the most
recent reports of examination of North Fork by the Reserve Bank
and of North Fork's wholly owned subsidiary, North Fork Bank,
Mattituck, New York ("Bank"), by Bank's primary federal banking supervisor, the FDIC, and by the New York Superintendent of
Banking. The Board notes that these examination reports assess the
financial and managerial resources of North Fork and Bank and do
not support the commenters' allegations. Based on all the facts of
record, the Board does not believe that these allegations warrant
denial of this proposal.
738
Federal Reserve Bulletin • July 1995
consider under section 3 of the BHC Act, and concludes
that these factors are consistent with approval of this
proposal. 21
North Fork also has given notice of its intention under
section 4(c)(8) of the BHC Act indirectly to acquire an
interest in Suffolk's data processing subsidiary, Island
Computer, as a result of North Fork's purchase of shares
of Suffolk. The Board has previously determined by
regulation that the data processing activities of Island
Computer are closely related to banking for purposes of
section 4(c)(8) of the BHC Act. 22 Protestant alleges that
consummation of this proposal would result in adverse
effects by impairing the ability of Island Computer to
compete effectively in the market for the sale of its data
processing services to other financial institutions. Protestant believes that prospective clients would hesitate to
enter into long-term arrangements with Island Computer
while it appeared to be subject to a change of control in
the near future.
North Fork states that its proposal would have the
public benefit of stabilizing and possibly increasing the
market value of Suffolk's voting stock and thereby providing Suffolk with greater and less costly access to
capital markets. North Fork would only indirectly ac21. Protestant requested that the Board hold a public hearing to
determine the circumstances under which certain officers and directors of North Fork acquired Suffolk's voting stock. Section 3(b) of
the BHC Act does not require the Board to hold a public hearing or
meeting on an application unless the appropriate supervisory authority of the bank to be acquired makes a timely written recommendation of denial of the application. In this case, the Board has
not received such a recommendation. Generally, under the Board's
Rules of Procedure, the Board may, in its discretion, hold a public
hearing or meeting on an application to clarify factual issues related
to the application and to provide an opportunity for testimony, if
appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The Board has
carefully considered Protestant's request in light of all the facts of
record. In the Board's view, Protestant has had ample opportunity
to submit its views, and has in fact submitted substantial written
materials that have been considered by the Board in acting on this
proposal. In the case of Suffolk's voting shares owned by North
Fork's officers and directors, Protestant's request fails to demonstrate why its written submissions do not adequately present its
allegations, what substantial evidence it would produce at an oral
hearing, or why a public hearing is otherwise warranted in this
case. Moreover, after a careful review of all the facts of record,
including detailed information from North Fork concerning the
acquisition of Suffolk's voting stock by North Fork's officers and
directors by gift or cash purchase in small amounts at various times
over several years, without financing or advice from North Fork or
arrangements with North Fork for their disposition, the Board
concludes that Protestant's request disputes the weight that should
be accorded to, and the conclusions that may be drawn from, the
existing facts of record, and does not identify any genuine dispute
about the facts that are material to the Board's decision. Based on
all the facts of record, the Board has determined that a public
hearing is not necessary to clarify the factual record, and is not
otherwise warranted in this case. Accordingly, Protestant's request
for a public hearing on this matter is denied.
22. See 12 C.F.R. 225.25(b)(7).
quire ownership of Island Computer as a result of its
interest in Suffolk. Moreover, as discussed previously in
this order, the Board has determined, on the basis of the
commitments North Fork has made to the Board, that
consummation of this proposal would not permit North
Fork to control Suffolk, and, therefore, North Fork would
be unable to influence the activities of Island Computer.
In addition, North Fork is prohibited under the BHC Act
from acquiring any shares of Suffolk's voting stock other
than the shares approved in this proposal without the
prior approval of the Board, and North Fork has not
requested any such approval. The Board believes that
these restrictions substantially mitigate any potential adverse effects and address concerns that Island Computer
may not be able to compete independently in the market
for data processing services. If North Fork were to seek
Board approval for such an acquisition in the future, the
Board would consider the effects of such a proposal on
the public interest at that time. The record in this case
also indicates that there are numerous providers of the
nonbanking services provided by Island Computer and
that consummation of this proposal is not likely to result
in any significantly adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices that
would outweigh the public benefits of this proposal.
Accordingly, the Board has determined that the balance
of public interest factors it must consider under section 4(c)(8) of the BHC Act is favorable and consistent
with approval.
Conclusion
Based on the foregoing, and in light of all the facts of
record, including the commitments made by North Fork
in connection with these applications, the Board has
determined that these applications should be, and hereby
are, approved. The Board's approval is specifically conditioned on compliance by North Fork with all commitments made in connection with these applications as
well as the conditions discussed in this order.
The Board's determination as to the nonbanking activities to be conducted by North Fork are subject to all the
conditions in Regulation Y, including those in sections
225.7 and 225.23(b) (12 C.F.R. 225.7 and 225.23(b)),
and to the Board's authority to require such modification
or termination of the activities of a holding company or
any of its subsidiaries as it finds necessary to assure
compliance with, or to prevent evasions of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder. The commitments and conditions relied on by the Board in reaching
this decision are deemed to be conditions imposed in
writing by the Board in connection with its findings and
Legal Developments
decision, and as such may be enforced in proceedings
under applicable law.
The acquisition of shares of Suffolk's voting stock
shall not be consummated before the fifteenth day following the effective date of this order, and not later than
three months following the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
May 8, 1995.
Voting for this action: Chairman Greenspan and Governors
Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Appendix
As part of this proposal, North Fork has committed that
it will not, without the Board's prior approval:
(1) Exercise or attempt to exercise a controlling influence over the management or policies of Suffolk or any
of its subsidiaries;
(2) Have or seek to have any employees or representative serve as an officer, agent, or employee of Suffolk or
any of its subsidiaries;
(3) Take any action causing Suffolk or any of its subsidiaries to become a subsidiary of North Fork or any of its
subsidiaries;
(4) Acquire or retain shares that would cause the combined interests of North Fork or any of its subsidiaries
and its officers, directors, and affiliates to equal or exceed 25 percent of the outstanding voting shares of
Suffolk or any of its subsidiaries;
(5) Propose a director or slate of directors in opposition
to a nominee or slate of nominees proposed by the
management or board of directors of Suffolk or any of its
subsidiaries;
(6) Attempt to influence the dividend policies or practices of Suffolk or any of its subsidiaries;
(7) Solicit or participate in soliciting proxies with respect to any matter presented to the shareholders of
Suffolk or any of its subsidiaries;
(8) Attempt to influence the loan and credit decisions or
policies of Suffolk and its banking subsidiary, the pricing
of services, any personnel decision, the location of any
offices, branching, the hours of operation, or similar
activities of Suffolk or any of its subsidiaries;
(9) Dispose or threaten to dispose of shares of Suffolk or
any of its subsidiaries in any manner as a condition of
739
specific action or nonaction by Suffolk or any of its
subsidiaries;
(10) Enter into any banking or nonbanking transactions
with Suffolk or any of its subsidiaries, except that North
Fork may establish and maintain deposit accounts with
any banking subsidiaries of Suffolk; provided that the
aggregate balance of all such 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 Suffolk or any
of its subsidiaries;
(11) Seek or accept representation on the board of directors of Suffolk or any of its subsidiaries;
(12) Exercise any enhanced shareholder rights that it
would acquire at any time as a result of its ownership of
more than 5 percent of Suffolk voting shares to obtain
nonpublic information concerning the performance, condition, or business plans of Suffolk, to participate in
Suffolk decisionmaking, or to communicate with other
Suffolk shareholders; or
(13) Make reference to Suffolk or its interest in Suffolk
in any future advertising or solicitation of customers by
North Fork and its subsidiaries.
ORDERS ISSUED UNDER FEDERAL RESERVE ACT
Marine Midland Bank
Buffalo, New York
Order Approving Establishment of a Branch
Marine Midland Bank, Buffalo, New York ("Bank"), a
state member bank, has given notice of its intention to
establish a branch office under section 9 of the Federal
Reserve Act ("Act") (12 U.S.C. § 321 et seq.) at
4191 North Buffalo Street, Orchard Park, New York.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published in
accordance with the Board's Rules of Procedure
(12CFR 262.3(b)). The time for filing comments has
expired, and the Board has considered the applications
and all comments received in light of the factors contained in the Act.
Bank is the fifth largest commercial banking organization in New York, controlling deposits of $12.8 billion,
which represent 5.2 percent of the total deposits in
commercial banks in the state.1 Bank is wholly owned
by HSBC Holdings pic, London, England, which also
wholly owns Hongkong and Shanghai Banking Corporation Limited, Hong Kong.
1. Deposit data are as of December 31, 1994.
740
Federal Reserve Bulletin • July 1995
Community Reinvestment Act Performance Record
In acting on branch applications, the Board is required to
take into account the bank's record under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA"). The CRA requires the federal financial supervisory agencies to encourage financial institutions to
help meet the credit needs of the local communities in
which they operate, consistent with the safe and sound
operation of such institutions. To this end, the CRA
requires the appropriate federal supervisory authority to
"assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of such institution," and to take
that record into account in its evaluation of branch
applications. 2
The Board has received comments from the Broome
County CRA Coalition, Binghamton, New York ("Protestant"), criticizing Bank's CRA performance record.
In particular, Protestant alleges that no banks in Broome
County, including Bank, are in compliance with the
CRA. Protestant maintains that the banks have historically neglected certain census tracts in Binghamton and
elsewhere in Broome County, and that the products and
services offered inherently exclude residents of low- to
moderate-income neighborhoods. 3
The Board has carefully reviewed the entire record of
Bank's CRA performance, the comments received,
Bank's response to those comments, and all other relevant facts of record, in light of the CRA, the Board's
regulations, and the Agency CRA Statement. 4
The Board recently reviewed Bank's CRA performance record in connection with its applications to establish a branch office in Syracuse, New York, and an
off-site electronic facility in Rochester, New York. This
review included consideration of Bank's special mortgage programs, small business lending, community development activities, ascertainment and marketing efforts, and other CRA programs and policies in light of
2. 12 U.S.C. § 2903.
3. In addition, Protestant objects to Bank's failure to reach an
agreement with it to support CRA-related initiatives and programs.
The Board has indicated in previous orders and in the Statement of
the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement") that communication with community groups provides a valuable method of
assessing and determining how best to address the credit needs of a
community. However, neither the CRA nor the Agency CRA
Statement requires depository institutions to enter into agreements
with particular organizations. Accordingly, the Board's review has
focused on the programs and policies Bank has in place in Broome
County and other areas to serve the credit needs of its entire
community. See Fifth Third Bancorp, 80 Federal Reserve Bulletin
838 (1994).
4. 54 Federal Register 13,742 (1989).
comments received. For reasons set forth in the order
approving those applications, and specifically incorporated by reference herein, the Board concluded that
Bank's overall performance record was generally consistent with approval of the applications. 5
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA examination is an important and often controlling factor in the
consideration of an institution's CRA record, and that
reports on these examinations will be given great weight
in the applications process. 6 The Board notes that Bank
received a "satisfactory" rating from the Office of the
Comptroller of the Currency for CRA performance as of
March 31, 1992, and a "satisfactory" rating from the
Federal Reserve Bank of New York 7 ("Reserve Bank")
for CRA performance as of January 31, 1994 (the "1994
Examination").
B. HMDA Data and Lending Practices
In light of Protestant's allegations, 8 the Board has reviewed Bank's 1993 and preliminary 1994 data 9 filed
under the Home Mortgage Disclosure Act ("HMDA") 1 0
for Broome County. These data show that, in low- and
moderate-income tracts, loan origination rates increased
and denial rates decreased from 1993 to 1994. These
data also reflect some variations in the rate of loan
originations, denials, and applications by income level.
The 1994 Examination found that Bank's loan policies and underwriting criteria were reasonable and did
not discriminate on any prohibited basis. Specifically,
examiners noted that the loan terms, qualifying ratios
and underwriting guidelines for residential mortgage
loans were reasonable and comparable with industry
standards. The examination also noted that Bank used a
second review program for all declined residential mortgage applications, in which underwriting supervisors
reviewed the original underwriter's decision and had to
concur in the proposed denial of an application.
The 1994 Examination did not find any practices that
were intended to discourage credit applications. Examiners noted that Bank solicited credit applications from all
segments of its communities, including low- and
5. See Marine Midland Bank, 81 Federal Reserve Bulletin 310
(1995).
6. 54 Federal Register at 13,745.
7. Bank has been a state member bank of the Federal Reserve
System since December 31, 1993.
8. Protestant has also generally questioned Bank's record of
lending to minorities in Broome County.
9. The Board's review included HMDA data for both Bank and
Marine Midland Mortgage Corporation.
10. 12 U.S.C. § 2801 etseq.
Legal Developments
moderate-income areas. Moreover, the examination
found that Bank's credit practices complied with antidiscrimination laws and regulations. Examiners also found
that Bank generally had a reasonable geographic distribution of residential mortgage and home improvement
loans and applications from low- and moderate-income
census tracts throughout its delineated service areas.
Bank offers several special mortgage programs, including nine affordable housing programs, to assist in
meeting the housing credit needs of its communities. For
example, Bank has participated since 1990 in the Federal
National Mortgage Association's Community Homebuyers and FannieNeighbors programs, both of which provide flexible down payment methods for borrowers who
do not exceed the Department of Housing and Urban
Development's median income guidelines. In addition,
Bank recently initiated its own Affordable Housing Loan
Program for low- and moderate-income borrowers who
do not qualify for other residential lending programs and
has committed $10 million to this program to finance
residential mortgage loans and an additional $300,000 to
assist in financing down payments. In Broome County,
Bank is developing a home ownership counseling program in conjunction with four other banks, and the banks
have agreed to work with Consumer Credit Counseling
Services to provide the counseling services and with
three local groups to provide community outreach. Bank
has also dedicated a mobile mortgage originator to serving the Binghamton area. In 1994, Bank introduced a
low minimum amount personal installment loan program
and a secured credit card program.
Bank also participates in several governmentally insured loan programs. Bank offers Veterans' Administration ("VA"), Federal Housing Agency ("FHA") 203B, 11
and State of New York Mortgage Association
("SONYMA") loans to borrowers who meet the programs' income requirements. Bank has been named one
of the top two Small Business Administration ("SBA")
lenders for New York State during 1992 and 1993, and
continues to hold the SBA's preferred lender status for
its commitment to small business lending. In Binghamton, Bank has scheduled another Downtown Loan program for the summer of 1995, repeating the program it
held in 1993 in conjunction with the city's Department
of Housing and Planning. This program focusses on
small businesses that are located in or willing to relocate
to downtown Binghamton, and offers loans at interest
rates below the prime rate.
The 1994 Examination found that Bank participates in
various community development programs in New York
State and provides loans and lines of credit to a wide
11. A fixed-rate, HUD-insured loan product only available in
New York.
741
variety of local organizations that support housing, economic development, rehabilitation or small business development. From July 1992 to July 1994, the bank's
community development financing totalled $27.2 million. Examiners also found that many of Bank's officers
and employees provided technical assistance to organizations located throughout the state that promote community development programs.
C. Ascertainment and Marketing
Bank ascertains community credit needs in various ways.
For example, Bank has a directed call program, and its
officers and employees participate in a number of community organizations. 12 Moreover, in June 1993, Bank
conducted a CRA survey in five New York State markets
using a random sample of customers residing in lowand moderate-income zip codes to determine the level of
awareness of Bank and its products and services. In
Binghamton, Bank representatives have recently met
with the mayor, the director of the Urban League, and
other community development leaders, and have scheduled meetings with various community groups. Bank has
also committed to sponsor this spring the City Living
Sundays program in Binghamton, which is an educational outreach effort focus sed on credit and affordable
housing.
Bank markets its products and services primarily
through advertisements in daily newspapers, local
weekly news and trade publications, and some journals
and special audience publications that focus on specific
minority groups and low- and moderate-income areas.
Bank also conducts free seminars throughout its delineated community. During the 18 months covered by the
1994 Examination, Bank conducted 16 first-time home
buyer seminars, one SONYMA seminar, and three seminars entitled "Women and Investing." Bank has also
participated in housing fairs sponsored by the Long
Island Board of Realtors, the Federal National Mortgage
Association and the New York State Housing Coalition.
In Binghamton, Bank's representatives recently conducted a seminar for new business owners focusing on
the commercial loan process, financing options, depository services and trade finance and conducted several
seminars at area high schools focusing on credit and
banking. In addition, Bank regularly conducts homebuyer seminars in Binghamton. During the period covered by the 1994 Examination, Bank also advertised in
publications and annual reports by not-for-profit agencies.
12. In addition, the 1994 Examination noted that the directed call
program reached 66 organizations involved with affordable housing
development, community development, and rehabilitation.
742
Federal Reserve Bulletin • July 1995
D. Branch Locations
ORDERS ISSUED UNDER INTERNATIONAL BANKING
ACT
As of February 1995, Bank had 313 branch offices.
Branch hours vary by location and are based on customer convenience and local competition. In Broome
County, 20 percent of Bank's branches are in low- to
moderate-income census tracts. The 1994 Examination
concluded that Bank has an adequate branch closing
policy that requires Bank to take actions to minimize the
impact of a branch closing on the local community.
E. Conclusion
The Board has carefully considered the entire record,
including Protestant's comments, Bank's responses, and
Bank's CRA record of performance. In light of all the
facts of record, the Board concludes that Bank's record
of performance under the CRA in helping to meet the
credit needs of all segments of its communities, including low- and moderate-income neighborhoods, is consistent with approval.
Other Considerations
The Board has also concluded that the factors it is
required to consider under section 9 of the Federal
Reserve Act, including Bank's financial condition, the
general character of its management, and the proposed
exercise of corporate powers, are consistent with approval of this notice.
Based on the foregoing and all other facts of record,
including commitments made by Bank, the Board has
determined that the notice should be, and hereby is,
approved. The Board's approval is specifically conditioned on all commitments made in connection with this
notice. The commitments and conditions relied on by the
Board are deemed conditions imposed in writing by the
Board in connection with its findings and decision, and,
as such, may be enforced in proceedings under applicable law. This approval is subject to completion of the
facilities and their being in operation within one year of
the date of this order, and to approval by the appropriate
state authorities.
By order of the Board of Governors, effective
May 25, 1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, and Phillips. Absent and
not voting: Governor Yellen.
Banco Bandeirantes, S.A.
Sao Paulo, Brazil
Order Approving Establishment of Representative
Office
Banco Bandeirantes, S.A. ("Bank"), Sao Paulo, Brazil,
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 Miami, Florida. 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 Miami, Florida
(Miami Herald, May 1, 1992). The time for filing comments has expired and the Board has considered the
application and all comments received.
Bank, with total consolidated assets of approximately
$2.5 billion, is a commercial bank chartered in Brazil. 1
Bank operates approximately 300 branches and agencies
in Brazil; a branch in New York, New York; and a
branch and subsidiary in Grand Cayman. Bank also
owns subsidiaries in Brazil engaged, among other things,
in investment banking, insurance, and leasing activities.
Administradora Clemente de Faria ("ACF"), Ltda., a
Brazilian corporation, owns 7.5 percent of Bank directly,
and an additional 70 percent indirectly through its subsidiary Bandeirantes Participacoes e Administraceos
("BPA"), S.A.
Bank, ACF, and BPA are subject to the requirements
of the Bank Holding Company Act by virtue of Bank's
New York branch, and each is a qualifying foreign
banking organization under Regulation K (12 C.F.R.
211.23(b)).
The proposed representative office would engage in
representational functions, including acting as liaison
between Bank's head office and customers in the United
States, and providing information to potential customers
about services offered by Bank.
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 of
the United States, has furnished to the Board the information it needs to assess adequately the application, and
JENNIFER J. JOHNSON
Deputy Secretary of the Board
1. Data are as of December 31, 1994, unless otherwise noted.
Legal Developments
is subject to comprehensive supervision or regulation on
a consolidated basis by its home country supervisors
(12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24). 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)).
The Board has previously stated that the standards that
apply to the establishment of a branch or agency need
not in every case apply to the establishment of a representative office, because a representative office does not
engage in a banking business and cannot take deposits or
make loans. 2 In evaluating an application to establish a
representative office under the IBA and Regulation K,
the Board will take into account the standards that apply
to establishment of branches and agencies, subject to the
following considerations. With respect to supervision by
home country authorities, a foreign bank that proposes to
establish a representative office must be subject to a
significant degree of supervision by its home country
supervisor.3 A foreign bank's financial and managerial
resources are reviewed to determine whether its financial
condition and performance demonstrate that it is capable
of complying with applicable laws and has an operating
record that would be consistent with the establishment of
a representative office in the United States. All foreign
banks, whether operating through branches, agencies, or
representative offices, will be required to provide adequate assurances of access to information on their operations and those of their affiliates necessary to determine
compliance with U.S. laws.
In this case, with respect to the issue of supervision by
home country authorities, the Board has considered the
following information. The Central Bank of Brazil
("Central Bank") is the bank supervisory authority in
Brazil, and, as such, is the home country supervisor of
Bank. The Central Bank has authorized Bank to establish the proposed representative office.
The Central Bank supervises Bank through review of
periodic reports, on-site inspections, and review of external auditors' reports. The Central Bank requires Bank to
file periodic reports that address, among other things,
Bank's liquidity, reserve ratios, adequacy of compulsory
reserves, information on major borrowers and creditors,
financial ratios, past due loans, foreign currency operations, and the financial condition of Bank's foreign
branches and its Cayman subsidiary. Regular on-site
inspections are conducted by auditors of the Central
Bank's inspection division according to a predetermined
schedule. Unannounced spot inspections address particular operations thought to be problematic.
2. See 58 Federal Register 6348, 6351 (1993).
3. See Citizens National Bank, 79 Federal Reserve Bulletin 805
(1993).
743
Bank's independent external auditors are required regularly to audit Bank's financial statements. These auditors are required to submit to the Central Bank copies of
their audit opinions as well as copies of reports on
Bank's internal controls and compliance with financial
and accounting requirements. If necessary, the Central
Bank may also inspect the external auditor's work
papers.
The Central Bank's supervisory procedures are generally directed to banking activities conducted within
Brazil. The Central Bank also receives quarterly reports
on earnings, reserves, and degree of leverage of
Bank's foreign operations, and semiannual balance
sheets, income statements, and statements of changes
in equity.
Bank monitors its worldwide operations through internal audits of the head office, foreign branches, and
subsidiaries. Bank's internal controls are reviewed by its
external auditors.
Based on all the facts of record, which include the
information described above, the Board concludes that
factors relating to the supervision of Bank by its home
country supervisor are consistent with approval of the
proposed representative office.
The Board has also found that Bank engages directly
in the business of banking outside of the United States
through its commercial banking operations in Brazil.
Bank has provided the Board with the information necessary to assess the application through submissions that
address the relevant issues.
The Board has also 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)). As noted above, the Central Bank has
authorized Bank to establish the proposed representative
office. In addition, the Central Bank may share information on Bank's operations with other supervisors, including the Board.
With respect to the financial and managerial resources
of Bank, given 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 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.
Bank and its ultimate parent have each committed to
make available to the Board such information on the
operations of Bank and 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
744
Federal Reserve Bulletin • July 1995
that disclosure of such information may be prohibited by
law, Bank and its ultimate parent have committed to
cooperate with the Board in obtaining any necessary
consents or waivers that might be required for the Board
to gain access to information that the Board may request.
The Board has reviewed the restrictions on disclosure of
information by banks in jurisdictions in which Bank has
material operations. In light of the commitments made
by Bank and its ultimate parent, 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 the Board may
request.
On the basis of all the facts of record, and subject to
the commitments made by Bank and its ultimate parent,
as well as the terms and conditions set forth in this order,
the Board has determined that Bank's application to
establish a representative office should be, and hereby is,
approved. If any restrictions on access to information on
the operations or activities of Bank and any of its affiliates subsequently interfere with the Board's ability to
determine the 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. Approval of this application is also specifically conditioned on compliance by Bank and its ultimate parent with the commitments made in connection
with this application, and with the conditions contained
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 May 15,
1995.
Voting for this action: Chairman Greenspan, Vice Chairman
Blinder, and Governors Kelley, Lindsey, Phillips, and Yellen.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
4. The Board's authority to approve the establishment of the
proposed office parallels the continuing authority of the State of
Florida to license offices of a foreign bank. The Board's approval of
this application does not supplant the authority of the State of
Florida and its agent, the Department of Banking and Finance, to
license the proposed office of Bank in accordance with any terms or
conditions that the State of Florida may impose.
Donghwa Bank
Seoul, Korea
Order Approving Establishment of a Branch
Donghwa Bank ("Bank"), Seoul, Korea, 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 convert its New York representative office to a state-licensed branch. The Foreign Bank
Supervision Enhancement Act of 1991 ("FBSEA"),
which amended the IBA, provides that a foreign bank
must obtain the approval of the Board to establish a
branch 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 New York, New
York (New York Times, June 27, 1994). The time for
filing comments has expired and all comments have
been considered.
Bank, with assets of $12.1 billion, is the 12th largest
bank in Korea. 1 No individual shareholder owns more
than 10 percent of the shares of Bank. Bank operates 59
branches and 16 other deposit-taking offices throughout
Korea and has one affiliate, Donghwa Leasing Company,
Ltd. ("Donghwa Leasing"), Incheon, Korea. In addition
to its office in New York, Bank operates representative
offices in London, Tokyo, and Hong Kong.
The activities of the proposed branch would include
providing financing and other banking-related services
to individuals and U.S.-based companies engaged in
business with Korea. Bank does not engage directly or
indirectly in any nonbanking activities in the United
States, and would be a qualifying foreign banking organization within the meaning of Regulation K after establishing the proposed branch (12 C.F.R. 211.23(b)).
Bank has received approvals to establish the proposed
branch from the Korean Ministry of Finance ("Ministry") and the Office of Bank Supervision ("OBS") of
the Bank of Korea, conditioned upon approval of the
proposed branch by the relevant regulatory authorities in
the United States. The New York State Banking Department has approved the establishment of the proposed
branch, conditioned on the Board's approval of the proposal.
In order to approve an application by a foreign bank to
establish a branch 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 adequately assess the application. The Board must also
1. All data are as of December 31, 1994, unless otherwise noted.
Legal Developments
determine that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by
its home country supervisor (12 U.S.C. § 3105(d)(2);
12 C.F.R. 211.24(c)(1)). 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)).
Bank engages directly in the business of banking
outside of the United States through its banking operations in Korea. Bank also has provided the Board with
the information necessary to assess the application
through submissions that address the relevant issues.
Regulation K provides that a foreign bank will be
considered to be subject to comprehensive supervision
or regulation on a consolidated basis if the Board determines that the bank is supervised and regulated in such a
manner that its home country supervisor receives sufficient information on the foreign bank's worldwide operations, including the relationship of the foreign bank to
any affiliate, to assess the overall financial condition of
the foreign bank and its compliance with law and regulation (12 C.F.R. 211.24(c)(1)). 2 In making its determination under this standard, the Board has considered the
following information.
Bank's primary supervisor is the OBS, which monitors Bank's compliance with all banking laws and regulations and conducts examinations of Bank. In addition,
the Ministry has legal authority over Bank's international operations, including approval of the establishment, regulation, and examination of foreign banking
offices. The Ministry has delegated its examination authority for the international activities of Bank to the
OBS.
The Board has previously determined, in connection
with an application involving another Korean bank, that
the bank was subject to home country supervision on a
consolidated basis.3 In this case, the Board has deter-
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 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.
3. See KorAm Bank, 80 Federal Reserve Bulletin 184 (1994).
745
mined that Bank is supervised by the OBS on the same
terms and conditions as set forth in the earlier order.
Based on all the facts of record, the Board has determined that Bank is subject to comprehensive supervision
and regulation on a consolidated basis by its home
country supervisors.
The Board has also 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)). As noted above, Bank has received the
consent of the Ministry and the OBS to establish the
proposed state-licensed branch.
Bank must comply with risk-based capital standards
adopted by Korea. 4 Bank's capital is in excess of the
minimum levels that would be required by the Basle
Capital Accord and is considered equivalent to capital
that would be required of a U.S. banking organization.
Managerial and other financial resources of Bank are
also considered consistent with approval, and Bank appears to have the experience and capacity to support the
proposed branch. Bank has established controls and procedures for the proposed branch in order to ensure
compliance with U.S. law, as well as controls and procedures for its worldwide operations generally.
Bank has committed to make available to the Board
such information on the operations of Bank and any
affiliate of Bank 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 is prohibited or impeded
by law, Bank has committed to cooperate with the Board
to obtain any necessary consents or waivers that might
be required from third parties in connection with the
disclosure of certain information. In addition, subject to
certain conditions, the Ministry and the OBS 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 the Board may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank, as well as the terms
and conditions set forth in this order, the Board has
determined that Bank's application to establish a state-
4. The Bank of Korea has required Korean banks to meet
transitional risk-based capital standards until January 1, 1996,
when Korean banks must be in conformance with the Basle minimum capital standards. For the period of January 1, 1994, to
December 31, 1995, Korean banks must maintain, at a minimum, a
total risk-based capital ratio of at least 7.25 percent. Bank is
currently in full compliance with the 1996 standards.
746
Federal Reserve Bulletin • July 1995
licensed branch should be, and hereby is, approved. 5 If
any restrictions on access to information on the operations or activities of Bank and its affiliates subsequently
interfere with the Board's ability to determine the safety
and soundness of Bank's U.S. operations or 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. Approval of this application is also specifically conditioned
on compliance by Bank with the commitments made in
connection with this application, and with the conditions
in this order. 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 May 8,
1995.
Voting for this action: Chairman Greenspan, and Governors
Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Taiwan Business B a n k
Taipei, Taiwan
Order Approving Establishment of a Branch
Taiwan Business Bank ("Bank"), Taipei, Taiwan, 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 convert its representative
office in Los Angeles, California to a state-licensed
branch. The Foreign Bank Supervision Enhancement
Act of 1991 ("FBSEA"), which amended the IBA, provides that a foreign bank must obtain the approval of the
Board to establish a branch 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 Los Angeles,
California (Los Angeles Times, September 18, 1994).
The time for filing comments has expired and all comments have been considered.
5. The Board's authority to approve the establishment of the
proposed branch parallels the continuing authority of the State of
New York to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the
State of New York, and its agent, the New York State Banking
Department, to license the proposed branch of Bank in accordance
with any terms or conditions that the State of New York may
impose.
Bank, with assets of $25 billion, is the seventh largest
commercial bank in Taiwan. 1 Bank is owned by the
Provincial Government of Taiwan ("Provincial Government"), an arm of the Taiwanese central government,
which holds its interest in Bank both directly and
through its ownership of several other Taiwanese banks
that own voting shares of Bank. Bank of Taiwan, which
is owned by the Provincial Government, owns approximately 42 percent of the voting shares of Bank. 2
Bank operates 108 branches throughout Taiwan and
one subsidiary, Union Real Estate Management Corporation ("Union"), Taipei, Taiwan. 3 Bank's existing representative office in Los Angeles, California, was established in June 1993.4 In addition, Bank operates
representative offices in the Netherlands and Hong Kong
and an offshore banking unit in Taiwan.
Bank's primary purpose for converting the existing
representative office to a branch is to better serve its
existing clients through the provision of banking services tailored to trade with Taiwan. In addition to making loans and accepting wholesale deposits, the proposed
branch would offer other services for Taiwanese companies. Bank does not engage directly or indirectly in any
nonbanking activities in the United States, and would be
a qualifying foreign banking organization within the
meaning of Regulation K after establishing the proposed
branch (12 C.F.R. 211.23(b)).
Bank has received approval to establish the proposed
branch from the Ministry of Finance of Taiwan ("Ministry"). Bank also has applied to the California State
Banking Department for approval to establish the proposed branch.
In order to approve an application by a foreign bank to
establish a branch 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 adequately assess the application. The Board must also
determine that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by
its home country supervisor (12 U.S.C. § 3105(d)(2)).
The Board may also take into account additional stan-
1. All data are as of December 31, 1994, unless otherwise noted.
2. The Board previously approved the establishment of a branch
by Bank of Taiwan. See Bank of Taiwan, 79 Federal Reserve
Bulletin 541 (1993).
3. Union, with assets of $16 million, engages in construction plan
consultation and financial auditing, real estate property appraisal
and investigation, real estate brokerage, and escrow services.
4. Bank, formerly known as the Medium Business Bank of
Taiwan, received Board approval to establish its Los Angeles
representative office on June 25, 1993. See Medium Business Bank
of Taiwan, 79 Federal Reserve Bulletin 807 (1993).
Legal Developments
dards as set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4))
and Regulation K (12 C.F.R. 211.24(c)).
Bank engages directly in the business of banking
outside of the United States through its commercial
banking operations in Taiwan. Bank also has provided
the Board with the information necessary to assess the
application through submissions that address the relevant issues.
Regulation K provides that a foreign bank will be
considered to be subject to comprehensive supervision
or regulation on a consolidated basis if the Board determines that the bank is supervised and regulated in such a
manner that its home country supervisor receives sufficient information on the foreign bank's worldwide operations, including the relationship of the foreign bank to
any affiliate, to assess the overall financial condition of
the foreign bank and its compliance with law and regulation (12 C.F.R. 211.24(c)(1)). 5 In making its determination under this standard, the Board has considered the
following information.
Bank is supervised and regulated by the Ministry and
the Taiwanese Central Bank ("Central Bank"), which
share responsibility for the supervision of Taiwanese
banks. The Banking Law of Taiwan grants the Ministry
overall authority for the regulation and supervision of
Taiwanese banks, including commercial banks, such as
Bank. 6 The Ministry has delegated the authority to the
Central Bank to act as the primary examiner of banks in
Taiwan, in which capacity the Central Bank conducts
mandatory annual examinations. 7
5. 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.
6. This authority permits the Ministry, among other things, to
issue licenses, limit activities and expansion, conduct examinations, set minimum capital and liquidity ratios, limit credit extensions, restrict director interlocks, define qualifications for management, and take enforcement actions.
7. Bank receives additional oversight by its owner, the Provincial
Government, and by the Ministry of Audit, an auditor of government agencies and government-owned enterprises. This oversight
is secondary to supervision by the Ministry and the Central Bank.
747
The Board has previously determined, in connection
with applications involving other Taiwanese banks, including Bank's parent, Bank of Taiwan, that these banks
were subject to home country supervision on a consolidated basis. 8 In this case, Bank is supervised by the
Ministry and the Central Bank on the same terms and
conditions as Bank of Taiwan. Based on all the facts of
record, the Board has determined that Bank is subject to
comprehensive supervision and regulation on a consolidated basis by its home country supervisors.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA (see 12 U.S.C.
§ 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). As noted
above, Bank has received the consent of its home country authorities to establish the proposed state-licensed
branch. In addition, the Ministry may share information
on Bank's operations with other supervisors, including
the Board.
Bank must comply with the minimum capital standards of the Basle Accord, as implemented by Taiwan.
Bank's capital exceeds these minimum standards and
can be considered equivalent to capital that would be
required of a U.S. banking organization. Managerial and
other financial resources of Bank are also considered
consistent with approval, and Bank appears to have the
experience and capacity to support the proposed branch.
Bank has established controls and procedures for the
proposed branch in order to ensure compliance with U.S.
law, as well as controls and procedures for its worldwide
operations generally.
Bank has committed that it will make available to the
Board such information on the operations of Bank and
any affiliate of Bank 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 is prohibited or impeded by
law, Bank has committed to cooperate with the Board to
obtain any consents or waivers that might be required
from third parties in connection with disclosure of certain information. In addition, subject to certain conditions, the Ministry and the Central Bank 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 the Board may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank, as well as the terms
8. See Taipei Bank, 79 Federal Reserve Bulletin 143 (1993);
United World Chinese Commercial Bank, 79 Federal Reserve Bulletin 146 (1993); Chiao Tung Bank, 79 Federal Reserve Bulletin
543 (1993); Bank of Taiwan, supra.
748
Federal Reserve Bulletin • July 1995
and conditions set forth in this order, the Board has
determined that Bank's application to establish a statelicensed branch should be, and hereby is, approved. If
any restrictions on access to information on the operations or activities of Bank and its affiliates subsequently
interfere with the Board's ability to determine the safety
and soundness of Bank's U.S. operations or the compliance by Bank or its affiliates with applicable federal
statutes, the Board may require termination of any of the
9. The Board's authority to approve the establishment of the
proposed branch parallels the continuing authority of the State of
California to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the
State of California, and its agent, the California State Banking
Department, to license the proposed branch of Bank in accordance
with any terms or conditions that the California State Banking
Department may impose.
Bank's direct or indirect activities in the United States.
Approval of this application is also specifically conditioned on compliance by Bank with the commitments
made in connection with this application, and with the
conditions in this order.9 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 May 8,
1995.
Voting for this action: Chairman Greenspan and Governors
Lindsey, Phillips, and Yellen. Absent and not voting: Vice Chairman Blinder and Governor Kelley.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM (JANUARY 1, 1995-MARCH 31,1995)
Applicant
Merged or Acquired Bank or Activity
Date of Approval
Bulletin
Volume
and Page
Banc One Corporation,
Columbus, Ohio
CoreStates Financial Corp,
Philadelphia, Pennsylvania
PNC Bank Corp.,
Pittsburgh, Pennsylvania
KeyCorp,
Cleveland, Ohio
Banco Santander, S.A.,
Madrid, Spain
Bank of Ireland,
Dublin, Ireland
Bank of Ireland First Holdings, Inc.,
Manchester, New Hampshire
First NH Bank,
Manchester, New Hampshire
The Bank of Tokyo, Ltd.,
Tokyo, Japan
Banque Nationale de Paris,
Paris, France
Banque Nationale de Paris,
Paris, France
National City Corporation,
Cleveland, Ohio
Electronic Payment Services, Inc.,
Wilmington, Delaware
March 1, 1995
81, 491
Santander Investment Securities Inc.,
New York, New York
Great Bay Bancshares, Inc.,
Dover, New Hampshire
Constitution Trust Company,
Dover, New Hampshire
March 27, 1995
81, 501
March 6, 1995
81, 511
The Chicago-Tokyo Bank,
Chicago, Illinois
BNP/Cooper Neff, Inc.,
Radnor, Pennsylvania
To establish state-licensed branches in
Los Angeles and San Francisco,
California
Battle Creek State Bank,
Battle Creek, Nebraska
January 30, 1995
81, 279
February 9, 1995
81, 386
March 27, 1995
81, 515
January 30, 1995
81, 281
Battle Creek State Company,
Battle Creek, Nebraska
Legal Developments
749
Index of Orders—Continued
Applicant
Merged or Acquired Bank or Activity
Date of Approval
Bulletin
Volume
and Page
BNCCorp, Inc.,
Bismarck, North Dakota
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Carbon County Holding Company,
Englewood, Colorado
Chase Manhattan Corporation,
New York, New York
Cheyenne Banking Corporation,
Cheyenne, Oklahoma
Cho Hung Bank,
Seoul, Korea
Coal City Corporation,
Coal City, Illinois
Manufacturers National Corporation,
Chicago, Illinois
Comerica Incorporated,
Detroit, Michigan
Comerica California Incorporated,
San Jose, California
Commerce Bancshares, Inc.,
Kansas City, Missouri
CBI-Illinois, Inc.,
Kansas City, Missouri
Commercial Bancorp,
Salem, Oregon
Credit Commercial de France S.A.,
Paris, France
Berliner Handels-und Frankfurther
Bank,
Frankfurt am Main, Germany
First Bancshares of Valley City, Inc.,
Valley City, North Dakota
First Commerce Corporation,
New Orleans, Louisiana
JMS Systems, Inc.,
Bismarck, North Dakota
Worthen Banking Corporation,
Little Rock, Arkansas
Hanifen, Imhoff Management Co., Inc.,
Denver, Colorado
Chase Savings Bank,
New York, New York
Security State Bank,
Cheyenne, Oklahoma
Seoul Bank of California,
Los Angeles, California
Peterson Bank,
Chicago, Illinois
January 9, 1995
81, 295
January 18, 1995
81, 299
March 6, 1995
81, 504
March 13, 1995
81, 467
February 15, 1995
81, 375
March 1, 1995
81, 475
January 17, 1995
81, 283
University Bank & Trust Company,
Palo Alto, California
March 1, 1995
81, 476
Peoples Mid-Illinois Corporation,
Bloomington, Illinois
February 21, 1995
81, 376
West Coast Bancorp,
Newport, Oregon
Charterhouse North America Inc.,
New York, New York
February 13, 1995
81, 378
February 21, 1995
81, 390
Insurance by Strehlow, Inc.,
Casselton, North Dakota
City Bancorp, Inc.,
New Iberia, Louisiana
First Bancshares, Inc.,
Slidell, Louisiana
First Trust Bank,
Ontario, California
Alpha Financial Corporation,
Chicago, Illinois
Alpha Bancorp,
Chicago, Illinois
BKLA Bancorp,
West Hollywood, California
January 11, 1995
81, 286
February 2, 1995
81, 379
March 3, 1995
81, 515
March 13, 1995
81, 480
March 6, 1995
81, 483
First Interstate Bank of California,
Los Angeles, California
Illinois Financial Services, Inc.,
Chicago, Illinois
Investors Banking Corporation,
Salem, Oregon
750
Federal Reserve Bulletin • July 1995
Index of Orders—Continued
Bulletin
Volume
Applicant
Merged or Acquired Bank or Activity
Irving National Bancshares, Inc.,
Dallas, Texas
Irving National Bank,
Irving, Texas
First Continental Bank of Grand Prairie,
N.A.,
Grand Prairie, Texas
Seaboard Savings Bank, F.S.B.,
Stuart, Florida
Casco Northern Bank, N.A.,
Portland, Maine
To establish seven branch offices in
Tops Markets stores in the Rochester,
New York, area
P&C Store #130,
Syracuse, New York
Beach One Financial Services, Inc.,
Vero Beach, Florida
Date of Approval
Johnson International, Inc.,
Racine, Wisconsin
KeyCorp,
Cleveland, Ohio
Manufacturers and Traders Trust
Company,
Buffalo, New York
Marine Midland Bank,
Buffalo, New York
Northern Trust Corporation,
Chicago, Illinois
Northern Trust of Florida Corporation,
Miami, Florida
North Fork Bancorporation, Inc.,
Mattituck, New York
Peak Banks of Colorado, Inc.,
Nederland, Colorado
Southern National Corporation,
Lumberton, North Carolina
South Texas Capital Group, Inc.,
San Antonio, Texas
Standard Bank of South Africa,
Johannesburg, South Africa
State Street Boston Corporation,
Boston, Massachusetts
Turkiye Vakiflar Bankasi, T.A.O.,
Ankara, Turkey
The Union Bank of Switzerland,
Zurich, Switzerland
West Merchant Bank Limited,
London, England
Whitney Holding Corporation,
New Orleans, Louisiana
Woodforest Bancshares, Inc.,
Houston, Texas
Sunrise Bancorp, Inc.,
Farmingdale, New York
Peak National Bank,
Nederland, Colorado
BB&T Financial Corporation,
Wilson, North Carolina
Plaza Bank, N.A.,
San Antonio, Texas
To establish a representative office in
New York, New York
IFTC Holdings, Inc.,
Kansas City, Missouri
To establish a state-licensed branch in
New York, New York
UBS Community Development
Corporation,
New York, New York
To establish a state-licensed agency in
New York, New York
Whitney Bank of Alabama,
Mobile, Alabama
Peoples Bank,
Elba, Alabama
Sun Belt Bancshares Corporation,
Conroe, Texas
and Page
March 13, 1995
81, 484
March 27, 1995
81, 507
January 17, 1995
81, 286
February 27, 1995
81, 394
January 25, 1995
81, 310
March 1, 1995
81, 486
March 29, 1995
81, 509
January 30, 1995
81, 289
January 17, 1995
81, 307
February 8, 1995
81, 384
March 22, 1995
81, 517
January 30, 1995
81, 297
January 4, 1995
81, 313
February 13, 1995
81, 392
March 29, 1995
81, 519
January 24, 1995
81, 290
February 15, 1995
81, 385
Legal Developments
751
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary
of the
Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 3
Applicant(s)
Bank(s)
Effective Date
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust of Florida, Inc.,
Jacksonville, Florida
FBC Holding Company, Inc.,
Crestview, Florida
May 12, 1995
Applicant(s)
Bank(s)
Effective Date
Dacotah Banks, Inc.,
Aberdeen, South Dakota
First National of Nebraska, Inc.
Omaha, Nebraska
Huron Title Company,
Huron, South Dakota
To engage de novo in providing data
processing and courier services in
connection with the provision of
lockbox services.
Sheffield Management Company,
May 31, 1995
Section 4
Signet Banking Corporation,
Richmond, Virginia
May 12, 1995
May 5, 1995
Richmond, Virginia
Sheffield Investments, Inc.,
Richmond, Virginia
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
1st Jackson Bancshares, Inc..
Stevenson, Alabama
Ace Gas, Inc.,
Deshler, Nebraska
Gibbon Exchange Company,
Gibbon, Nebraska
Ameribank Corporation,
Shawnee, Oklahoma
American River Holdings,
Sacramento, California
The North Jackson Bank, Inc.,
Stevenson, Alabama
Nebraska National Bank,
Kearney, Nebraska
Atlanta
May 12, 1995
Kansas City
May 15, 1995
United Oklahoma Bankshares, Inc.
Del City, Oklahoma
American River Bank,
Sacramento, California
Kansas City
April 27, 1995
San Francisco
April 28, 1995
752
Federal Reserve Bulletin • July 1995
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
BancFirst Ohio Corp.,
Zanesville, Ohio
Bank of Colorado Holding
Company,
Vail, Colorado
BB&T Bancshares Corp.,
Bloomingdale, Illinois
Blumberg BancUnits,
Limited Partnership,
Seguin, Texas
Blumberg Family Partnership,
Limited Partnership,
Seguin, Texas
Centura Banks, Inc.,
Rocky Mount, North Carolina
Commerce Bancshares, Inc.,
Kansas City, Missouri
Bellbrook Bancorp, Inc.,
Bellbrook, Ohio
Snow Bankcorp, Inc.,
Dillon, Colorado
Cleveland
April 19, 1995
Kansas City
April 28, 1995
Bloomingdale Bank and Trust,
Bloomingdale, Illinois
Seguin State Bank & Trust Company,
Seguin, Texas
Chicago
May 12, 1995
Dallas
May 19, 1995
Southern Bancorp, Inc.,
Asheboro, North Carolina
CBI Security Corporation,
Kansas City, Missouri
Kansas-CBI, Inc.,
Kansas City, Missouri
CBI-Kansas, Inc.,
Kansas City, Missouri
Community National Bank,
Topeka, Kansas
Snow Bankcorp, Inc.,
Dillon, Colorado
The First National Bank of Grove,
Grove, Oklahoma
First National Bank of North County,
Carlsbad, California
Firstar Credit Card Bank, N.A.,
Waukegan, Illinois
Richmond
April 21, 1995
Kansas City
May 23, 1995
Kansas City
May 1, 1995
Minneapolis
April 28, 1995
Kansas City
May 25, 1995
Minneapolis
May 15, 1995
Chicago
May 11, 1995
Peoples Bank and Trust Company,
Sunman, Indiana
First Mariner Bank,
Towson, Maryland
First Mountain State Bank,
Montrose, Colorado
Farmers Investment Corporation,
Little Rock, Arkansas
First Southern Bank,
Florence, Alabama
First Southern Bank,
Lithonia, Georgia
GreatBank,
Algonquin, Illinois
Cleveland
April 25, 1995
Richmond
May 5, 1995
Kansas City
April 26, 1995
St. Louis
April 21, 1995
Atlanta
May 23, 1995
Atlanta
May 16, 1995
Chicago
April 21, 1995
Community Financial Corporation,
Topeka, Kansas
Community First Bankshares, Inc.,
Fargo, North Dakota
CRACO, Inc.,
Vinita, Oklahoma
Duke Financial Group, Inc.,
St. Paul, Minnesota
Firstar Corporation,
Milwaukee, Wisconsin
Firstar Corporation of Wisconsin,
Milwaukee, Wisconsin
First Financial Bancorp.,
Hamilton, Ohio
First Mariner Bancorp,
Towson, Maryland
First Mountain Company,
Montrose, Colorado
First Security Bancorp,
Searcy, Arkansas
First Southern Bancshares, Inc.,
Florence, Alabama
First Southern Bancshares, Inc.,
Lithonia, Georgia
GreatBanc, Inc.,
Aurora, Illinois
Legal Developments
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Mountain Bancshares, Inc.,
Los Alamos, New Mexico
Mountain Community Bank of
Los Alamos,
Los Alamos, New Mexico
Financial Holdings, Inc.,
Louisville, Colorado
Banklllinois Financial Co.,
Champaign, Illinois
Central Illinois Financial Corporation,
Champaign, Illinois
Great Neck Bancorp,
Great Neck, New York
Comfort Bancshares, Inc.,
Comfort, Texas
Dickinson Bancorporation, Inc.,
Dickinson, North Dakota
Liberty Bank and Trust, N.A.,
Dickinson, North Dakota
Randolph Bancshares, Inc.,
Roanoke, Alabama
Kansas City
May 4, 1995
Kansas City
May 15, 1995
Chicago
May 17, 1995
New York
May 12, 1995
Minneapolis
May 12, 1995
Minneapolis
May 17, 1995
Atlanta
April 21, 1995
Commercial Bank,
Middlesboro, Kentucky
Woodford Bancorp, Inc.,
Versailles, Kentucky
Cleveland
May 15, 1995
Cleveland
May 12, 1995
Premier Bancshares, Inc.,
Jefferson City, Missouri
Premier Bank,
Jefferson City, Missouri
FirstWest Bank,
Billings, Montana
St. Louis
April 28, 1995
St. Louis
April 28, 1995
Minneapolis
April 21, 1995
Suburban Bank of Elmhurst,
Elmhurst, Illinois
Sun Capital Bank,
St. George, Utah
Union Illinois Company,
Swansea, Illinois
Chicago
May 24, 1995
San Francisco
May 18, 1995
St. Louis
April 27, 1995
Snow Bank, N.A.,
Dillon, Colorado
Bank of Whitewater,
Whitewater, Kansas
Kansas City
April 28, 1995
Kansas City
May 23, 1995
Mountain Parks Financial Corp.,
Minneapolis, Minnesota
New Central Illinois Financial Co.
Inc.,
Champaign, Illinois
North Fork Bancorporation, Inc.,
Mattituck, New York
Norwest Corporation,
Minneapolis, Minnesota
Norwest Corporation,
Minneapolis, Minnesota
Peoples Independent Bancshares,
Inc.,
Boaz, Alabama
Pikeville National Corporation,
Pikeville, Kentucky
Pikeville National Corporation,
Pikeville, Kentucky
Pikeville Acquisition Corp.,
Pikeville, Kentucky
Pleasant Hope Bancshares, Inc.,
Pleasant Hope, Missouri
Premier Bancshares, Inc.,
Jefferson City, Missouri
Security Richland Bancorporation,
Miles City, Montana
Hansen-Lawrence Agency, Inc.,
Worden, Montana
Suburban Illinois Bancorp, Inc.,
Elmhurst, Illinois
Sun Capital Bancorp,
St. George, Utah
Union Illinois Company Employee
Stock Ownership Trust,
Swansea, Illinois
Vail Bank,
Vail, Colorado
Whitewater Bancshares, Inc.,
Whitewater, Kansas
753
754
Federal Reserve Bulletin • July 1995
Section 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Banco de Sabadell, S.A.,
Sabadell, Spain
PRS International Investment Advisory
Services, Inc.,
Miami, Florida
PRS International Brokerage, Inc.,
Miami, Florida
To engage de novo in data processing
activities
First Commerce Mortgage Corporation,
Corpus Christi, Texas
Atlanta
May 15, 1995
Atlanta
May 10, 1995
Dallas
May 17, 1995
Heritage Federal Bancshares, Inc.,
Kingsport, Tennessee
Coral Gables Fedcorp,
Coral Gables, Florida
Plaza Home Mortgage Servicing
Corporation,
Albuquerque, New Mexico
Fleet Real Estate Funding Corp.,
Columbia, South Carolina
To engage in consumer and mortgage
lending activities
Atlanta
May 8, 1995
Richmond
April 21, 1995
Boston
May 5, 1995
Cleveland
May 8, 1995
To commence or to engage de novo
either directly or indirectly, in
making and servicing loans
St. Francois County Financial Corp.,
Farmington, Missouri
To engage de novo in mortgage
processing activities for unaffiliated
third parties
Societe Generale Asset Management
Corp.,
New York, New York
To directly engage de novo in the
making, acquiring, or servicing of
loans or other extensions of credit
Woodman Enterprises, Inc.,
Greenville, South Carolina
To engage in insurance and tax
preparation activities
Chicago
May 2, 1995
St. Louis
April 21, 1995
Atlanta
May 2, 1995
New York
May 22, 1995
San Francisco
May 10, 1995
Richmond
May 11, 1995
Chicago
April 26, 1995
Brannen Banks of Florida, Inc.,
Inverness, Florida
Brazosport Corporation,
Corpus Christi, Texas
Brazosport Corporation-Nevada,
Inc.,
Carson City, Nevada
First American Corporation,
Nashville, Tennessee
First Union Corporation,
Charlotte, North Carolina
Fleet Financial Group, Inc.,
Providence, Rhode Island
KeyCorp,
Cleveland, Ohio
Key Bancshares of Wyoming,
Cheyenne, Wyoming
MSB Holding Company,
Moorhead, Iowa
New Era Bancorporation, Inc.,
Fredericktown, Missouri
Pointe Financial Corporation,
Boca Raton, Florida
Societe Generale,
Paris, France
South Valley Bancorporation,
Morgan Hill, California
Summit Financial Corporation,
Greenville, South Carolina
Union-Calhoun Investments, Ltd.,
Rockwell City, Iowa
Legal Developments
755
Sections 3 and 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Executive Auto Lease, Inc.,
Andover, Massachusetts
First Mutual Bancorp, Inc.,
Decatur, Illinois
Moundville Bancshares, Inc.
Moundville, Alabama
Fidelity Bank & Trust Company,
Salem, New Hampshire
First Mutual Bank, S.B.,
Decatur, Illinois
To engage de novo in credit insurance
activities
Boston
May 12, 1995
Chicago
April 26, 1995
Atlanta
May 25, 1995
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)
Reserve Bank
Effective Date
Manufacturers and Traders Trust
Company,
Buffalo, New York
The Chase Manhattan Bank, N.A.,
New York, New York
New York
May 4, 1995
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Centura Bank,
Rocky Mount, North Carolina
First Southern Savings Bank, Inc.,
SSB,
Asheboro, North Carolina
CapitolBank Sacramento,
Sacramento, California
Richmond
April 21, 1995
San Francisco
May 2, 1995
Westamerica Bank,
San Rafael, California
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.
Board of Governors v. Scott, Misc. No. 95-127 (LFO/PJA)
(D. D.C., filed April 14, 1995). Application to enforce
investigatory subpoenas for documents and testimony.
Oral argument is scheduled for June 8, 1995.
Money Station, Inc. v. Board of Governors, No. 95-1182
(D.C. Cir., filed March 30, 1995). Petition for review of a
Board order dated March 1, 1995, approving notices by
Bank One Corporation, Columbus, Ohio; CoreStates Financial Corp., Philadelphia, Pennsylvania; PNC Bank
Corp., Pittsburgh, Pennsylvania; and KeyCorp, Cleveland, Ohio, to acquire certain data processing assets of
National City Corporation, Cleveland, Ohio, through a
joint venture subsidiary. On May 1, 1995, Banc One,
CoreStates, PNC, KeyCorp, National City Corporation,
and Electronic Payment Services, Inc., moved to inter-
756
Federal Reserve Bulletin • July 1995
vene in the case. Also on May 1, 1995, Money Station
filed a separate petition for review of the Board's March
31, 1995, denial of Money Station's request for reconsideration of the Board's March 1 order (D.C. Cir., No.
95-1243).
Jones v. Board of Governors, No. 95-1142 (D.C. Cir., filed
March 3, 1995). Petition for review of a Board order
dated February 2, 1995, approving the applications by
First Commerce Corporation, New Orleans, Louisiana, to
merge with City Bancorp, Inc., New Iberia, Louisiana,
and First Bankshares, Inc., Slidell, Louisiana. Petitioner
filed a motion for injunctive relief on April 3, 1995. On
April 17, 1995, the Board filed its opposition to the
motion.
Board of Governors v. Interamericas Investments, Ltd., No.
H-95-565 (S.D. Texas, filed February 24, 1995). Action
to freeze certain assets of a company pending administrative adjudication of civil money penalty. On March 1,
1995, the court issued a stipulated order requiring the
company to deposit $1 million into the registry of the
court.
In re Subpoena Duces Tecum, No. 95-5034 (D.C. Cir., filed
January 26, 1995). Appeal of partial denial of plaintiffs
motion to compel production of examination and other
supervisory material in connection with a shareholder
derivative action against a bank holding company. Oral
argument is scheduled for November 7, 1995.
Kuntz v. Board of Governors, No. 95-3044 (6th Cir., filed
January 12, 1995). Petition for review of a Board order
dated December 19, 1994, approving an application by
KeyCorp, Cleveland, Ohio, to acquire BANKVERMONT
Corp., Burlington, Vermont. On February 10, 1995, the
Board filed its motion to dismiss.
Zemel v. Board of Governors, No. 95-5007 (D.C. Cir., filed
December 30, 1994). Appeal of district court's dismissal
of Age Discrimination in Employment Act case. On
March 8, 1995, the court granted appellant's motion to
withdraw the appeal and dismissed the action.
In re Subpoena Duces Tecum, Misc. No. 9 5 - 0 6 (D.D.C.,
filed January 6, 1995). Action to enforce subpoena seeking pre-decisional supervisory documents sought in connection with an action by Bank of New England Corporation's trustee in bankruptcy against the Federal Deposit
Insurance Corporation. The Board filed its opposition on
January 20, 1995.
Cavallari v. Board of Governors, No. 94-4183 (2d Cir.,
filed October 17, 1994). Petition for review of Board
order of prohibition against a former outside counsel to a
national bank (80 Federal Reserve Bulletin 1046 (1994)).
The case was consolidated with a petition for review of
orders of the Comptroller of the Currency imposing a
civil money penalty and cease and desist order against
petitioner (Cavallari v. OCC, No. 94-4151). Oral argument was heard on March 23, 1995. On May 11, 1995,
the Court of Appeals upheld the Board's prohibition
order and the Comptroller's civil money penalty order,
and remanded to the Comptroller for further proceedings
regarding the order to cease and desist.
Beckman v. Greenspan, No. CV 94-41-BCG-RWA (D.
Mont., filed April 13, 1994). Action against Board and
others seeking damages for alleged violations of constitutional and common law rights. The Board's motion to
dismiss was filed May 19, 1994. On April 24, 1995, the
court granted the Board's motion and dismissed the case.
Plaintiffs filed a notice of appeal on May 4, 1995.
Board of Governors v. Ghaith R. Pharaon, No. 91-CIV6250 (S.D. New York, filed September 17, 1991). Action
to freeze assets of individual pending administrative adjudication of civil money penalty assessment by the Board.
On September 17, 1991, the court issued an order temporarily restraining the transfer or disposition of the individual's assets.
FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD
OF GOVERNORS
A.G. Cummings
Lampasas, Texas
The Federal Reserve Board announced on May 9, 1995,
the issuance of an Order of Assessment of a Civil Money
Penalty against A.G. Cummings, Chairman of the board
of directors and President of Lometa Bancshares, Inc.,
and Chairman of the board of directors, President, sole
director, and principal shareholder of Mid-Texas Bancshares, Inc., both of Lampasas, Texas.
Texas Coastal Bank
Pasadena, Texas
The Federal Reserve Board announced on May 3 0 , 1 9 9 5 ,
the issuance of a Cease and Desist Order against the
Texas Coastal Bank, Pasadena, Texas; and Charles R.
Vickery, Jr., the principal shareholder of the bank; G.
Warren Coles, Jr., former chairman of the board and a
director of the bank; and B.F. Holcomb, chairman of the
board and the president of the bank.
A1
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING
A3
Assets and liabilities
A21 Large reporting banks
A 2 3 Branches and agencies of foreign banks
Guide to Tabular Presentation
Domestic Financial Statistics
MONEY STOCK AND BANK
A4
A5
A6
A7
CREDIT
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
FINANCIAL
INSTRUMENTS
A 8 Federal Reserve Bank interest rates
A 9 Reserve requirements of depository institutions
A 1 0 Federal Reserve open market transactions
FEDERAL RESERVE
BANKS
A l l Condition and Federal Reserve note statements
A 1 2 Maturity distribution of loan and security
holdings
MONETARY AND CREDIT
AGGREGATES
A 1 3 Aggregate reserves of depository institutions
and monetary base
A 1 4 Money stock, liquid assets, and debt measures
A 1 6 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A 1 7 Bank debits and deposit turnover
COMMERCIAL BANKING
INSTITUTIONS
A 1 8 Assets and liabilities, Wednesday figures
BANKS
MARKETS
A 2 4 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A 2 6 Interest rates—money and capital markets
A 2 7 Stock market—Selected statistics
FEDERAL
POLICY
COMMERCIAL
FINANCE
A28
A29
A30
A30
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A 3 2 U.S. government securities dealers—Positions
and financing
A 3 3 Federal and federally sponsored credit
agencies—Debt outstanding
SECURITIES MARKETS AND
CORPORATE FINANCE
A 3 4 N e w security issues—Tax-exempt state and local
governments and corporations
A 3 5 Open-end investment companies—Net sales
and assets
A 3 5 Corporate profits and their distribution
A35 Nonfarm business expenditures on new
plant and equipment
A 3 6 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
133
Federal Reserve Bulletin • July 1995
Domestic Financial
Statistics—Continued
REAL ESTATE
A 3 7 Mortgage markets
A 3 8 Mortgage debt outstanding
A 5 4 U.S. reserve assets
A 5 4 Foreign official assets held at Federal Reserve
Banks
A55 Selected U.S. liabilities to foreign official
institutions
REPORTED BY BANKS
CONSUMER INSTALLMENT
CREDIT
A 3 9 Total outstanding
A 3 9 Terms
A55
A56
A58
A59
FLOW OF FUNDS
A40
A42
A43
A44
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Domestic Nonfinancial
IN THE UNITED STATES
Statistics
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' o w n and domestic customers' claims on
foreigners
A 5 9 Banks' o w n claims on unaffiliated foreigners
A 6 0 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BY NONBANKING
BUSINESS
ENTERPRISES IN THE UNITED
SELECTED
MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A 4 6 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A 4 9 Housing and construction
A 5 0 Consumer and producer prices
A 5 1 Gross domestic product and income
A 5 2 Personal income and saving
International
SUMMARY
Statistics
STATISTICS
A 5 3 U.S. international transactions—Summary
A 5 4 U.S. foreign trade
STATES
A61 Liabilities to unaffiliated foreigners
A 6 2 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND
TRANSACTIONS
A 6 3 Foreign transactions in securities
A 6 4 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
RATES
A65 Discount rates of foreign central banks
A65 Foreign short-term interest rates
A 6 6 Foreign exchange rates
A67 Guide to Statistical Releases and
Special Tables
A3
Guide to Tabular Presentation
SYMBOLS AND
c
e
n.a.
n.e.c.
P
r
*
0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
GENERAL
ABBREVIATIONS
Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
MSA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
VA
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs
INFORMATION
In many of the tables, components do not sum to totals because
of rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A4
DomesticNonfinancialStatistics • July 1995
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1994
1995
1995r
1994
Monetary or credit aggregate
Q2
1
2
3
4
Reserves of depository institutions2
Total
Required
Nonborrowed
Monetary base3
5
6
7
8
9
Concepts of money, liquid assets, and debt*
Ml
M2
M3
L
Debt
Nontransaction components
10 In M25
11 In M3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time8'9
Thrift institutions
15 Savings, including MMDAs
16 Small time7
17 Large time8
12
13
14
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
Debt components4
20 Federal
21 Nonfederal
Q3
Q4
Q1
Dec.
Ian.
Feb.
Mar.
Apr.
-3.1
-2.3
-4.2
8.4
-1.9
-1.9
-3.5
7.5
-3.3
-3.0
-2.1
6.9
-3.7
-4.0
-2.4
6.4
-1.2
-4.5
-.4
4.1
-4.4
-8.0
-2.9
8.1
-4.2
3.9
-2.6
3.6
-7.5
-4.5
-7.7
8.6
-12.2
-11.5
-13.0
7.8
2.7
1.7
1.3
1.6
4.8
2.4
.9
2.1
1.9
4.7
-1.2
-,3r
1.7
3.6r
5.5
.0
1.7r
4.3
9.1
5.5
.3
1.6r
3.7r
11.2r
4.3
1.0
3.9
6.5
7.5
5.3
-1.8
-1.4
2.2
11.0
6.9
.8
2.5
5.8
11.2
5.3
1.9
4.2
5.8
n.a.
n.a.
1.3
-1.3
.2
8.6r
.r
13.2r
2.4r
18.4r
2.1r
14.6r
5.3
19.8
-1.2
21.1
3.3
22.5
5.2
14.0
-3.7
.3
.8
-4.6
9.4
13.1
-8.5
16.0
19.4r
-13.2 r
24.2r
12.5r
-10.9
20.4
18.4r
-13.1
23.9
-5.6
-16.0
27.2
27.9
-17.8
31.1
17.8
-12.1
23.0
.4
-.4
-5.8
-3.5
-11.5
.2
6.8
-17.6 1
10.6
12.0
-20.5 rr
21.4
23.6r
-19.9
5.71
7.5
-19.3
21.2
33.6
-24.9
31.6
27.2
-19.1
33.7
33.7
-16.8
28.9
19.0
11.9
-15.7
5.7
-4.5
7.5
7.3
7.9r
10.0
17.8
2.0
9.6
36.5
-1.8
-38.0
-1.8
57.2
15.7
24.8
5.4
4.5
3.9
4.9
5.9
5.3
5.2
5.6
1.1
5.4
2.5
6.3
10.6
5.5
7.4
4.6
1. Unless otherwise noted, rates of change are calculated from average amounts
outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government,
and foreign banks and official institutions, less cash items in the process of collection and
Federal Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable
order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository
institutions, credit union share draft accounts, and demand deposits at thrift institutions.
Seasonally adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to US. residents by
foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small
time deposits (time deposits—including retail RPs—in amounts of less than $100,000),
and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer
money market funds. Excludes individual retirement accounts (IRAs) and Keogh balances
at depository institutions and money market funds. Also excludes all balances held by
U.S. commercial banks, money market funds (general purpose and broker-dealer), foreign
governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or
more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United
n.a.
n.a.
Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only
money market funds. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Also excluded is
the estimated amount of overnight RPs and Eurodollars held by institution-only money
market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as
a whole and then adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds,
short-term Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's flow
of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
5. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. residents,
and (4) money market fund balances (institution-only), less (5) a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by institutiononly money market funds. This sum is seasonally adjusted as a whole.
7. Smil 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.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K CREDIT 1
Millions of dollars
Average of
daily figures
Average of dailyfiguresfor week ending on date indicated
1995
1995
Feb.
Mar.
Apr.
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
400,034
404,515r
411,558
404,383
404,192'
406,148'
408,984
409,370
412,102
414,992
361,651
46
364,433
1,560
367,512
4,257
364,415
2,103
364,029
1,558
365,474
1,925
364,317
4,826
368,652
1,763
367,303
4,627
368,234
6,779
3,542
1
0
3,478
438
0
3,404
462
0
3,491
61
0
3,491
843
0
3,455
845
0
3,408
724
0
3,408
193
0
3,408
409
0
3,402
564
0
23
32
0
651
34,086
18
51
0
545r
33,991
30
81
0
533
35,278
15
49
0
420
33,830
17
55
0
448'
33,751
24
62
0
387'
33,975
22
60
0
329
35,298
9
61
0
323
34,962
31
76
0
1,158
35,091
50
103
0
466
35,394
11,050
8,018
23,1 ll r
11,052
8,018
23,187r
11,054
8,018
23,261
11,051
8,018
23,176'
11,053
8,018
23,196'
11,053
8,018
23,215'
11,053
8,018
23,234
11,053
8,018
23,248
11,055
8,018
23,262
11,055
8,018
23,276
396,662r
339
400,531r
352
405,066
361
401,289'
349
401,290'
353
401,056'
358
402,521
362
404,768
367
406,009
363
405,805
356
5,753
183
4,349
426
12,705
21,797
5,141
197
4,325
393
12,996
22,837r
6,155
198
4,107
360
13,498
24,146
5,175
173
4,371
384
12,850
22,037
6,000
221
4,395
404
12,806
20,989'
4,600
184
4,304
385
12,789
24,757'
5,138
259
4,227
411
14,191
24,181
4,978
175
4,019
369
14,362
22,652
6,178
207
4,002
367
12,922
24,389
7,065
190
4,050
318
12,839
26,718
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6 Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments ..
20 Other
21 Other Federal Reserve liabilities and capital .,;
22 Reserve balances with Federal Reserve Banks
Wednesday figures
End-of-month figures
Mar. 15 ! Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
411,183
404,816'
408,224'
408,449
412,365
412,606
419,666
363,318
9,018
364,094
1,935
367,394
1,930
364,375
4,450
369,820
3,356
366,014
7,346
368,366
10,012
3,388
500
0
3,491
325
0
3,491
900
0
3,408
1,171
0
3,408
500
0
3,408
450
0
3,408
400
0
3,388
1,550
0
25
59
0
57rr
35,494
43
112
0
393
35,809
18
53
0
1,204
33,757
17
57
0
387'
33,935
52
63
0
55'
34,150
16
59
0
693
34,948
5
66
0
549
34,711
25
84
0
254
35,074
75
116
0
289
35,870
11,050
8,018
23,138r
11,053
8,018
23,234r
11,055
8,018
23,290
11,051
8,018
23,176'
11,053
8,018
23,196'
11,053
8,018
23,215'
11,053
8,018
23,234
11,054
8,018
23,248
11,055
8,018
23,262
11,055
8,018
23,276
397,753r
340
401,630r
361
405,272
356
402,347'
352
401,836'
358
402,375'
361
404,259
367
406,386
364
407,017
356
406,475
356
6,890
188
4,171
325
13,710
24,062
4,543
370
4,227'
398
14,449
25,776
8,241
166
4,395
339
13,095
22,048
5,470
165
4,371
413
12,761
27,550
4,413
162
4,395
392
12,581
22,947'
4,389
185
4,304
397
12,558
25,942'
5,007
167
4,227
416
14,072
22,238
4,410
187
4,019
350
12,748
26,221
5,923
158
4,002
335
12,707
24,443
8,128
165
4,050
323
12,636
29,882
Feb.
Mar.
Apr.
405,235
409,448'
411,549
365,631
0
363,707
5,593
368,554
2,750
3,491
0
0
3,408
1,105
0
18
36
0
1,892
34,167
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6 Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments ..
20 Other
21 Other Federal Reserve liabilities and capital .:
22 Reserve balances with Federal Reserve Banks
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought
back under matched sale-purchase transactions.
3. Excludes required clearing balances and adjustments to compensate for float.
A6
DomesticNonfinancialStatistics • July 1995
1.12 RESERVES AND BORROWINGS Depository Institutions1
Millions of dollars
Prorated monthly averages of biweekly averages
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash3 4
Applied vault cash 5
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9
1992
1993
1994
Dec.
Reserve classification
1994
Dec.
Dec.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
25,368
34,541
31,172
3,370
56,540
55,385
1,155
124
18
1
29,374
36,818
33,484
3,334
62,858
61,795
1,063
82
31
0
24,658
40,365
36,682
3,683
61,340
60,172
1,168
209
100
0
24,745
38,231
34,745
3,486
59,490
58,686
804
380
339
0
24,715
38,933
35,291
3,642
60,006
58,999
1,008
249
164
0
24,658
40,365
36,682
3,683
61,340
60,172
1,168
209
100
0
22,291
42,291
38,230r
4,06 l
60,521
59,182
1,339
136
46
4
21,758
39,795r
35,941r
3,855
57,699
56,752
946
59
33
0
22,649
38,518
34,934
3,584
57,583
56,789
794
69
51
0
24,218
38,099
34,656
3,442
58,875
58,121
753
111
82
0
1995
Biweekly averages of dailyfiguresfor two week periods ending on dates indicated
1995
Jan. 4
1 Reserve balances with Reserve Banks
2 Total vault cash3
3 Applied vault cash4 5
4 Surplus vault cash
5 Total reserves6
6 Requited reserves
7 Excess reserve balances at Reserve Banks
8 Total borrowings at Reserve Banks8
9 Seasonal borrowings
10 Extended credit9
Jan. 18
Feb. 1
Feb. 15
Mar. 1
Mar. 15
Mar. 29r
Apr. 12r
Apr. 26
May 10
25,189
39,967
36,429
3,539
61,618
60,451
1,167
246
95
0
23,958
42,165
38,223
3,942
62,181
60,822
1,360
68
38
0
19,603
43,143r
38,793r
4,350
58,396
57,026
1,370
176
41
10
21,028
41,295r
37,274r
4,02 l
58,302
57,329
973
51
31
0
22,710r
37,924
34,286r
3,638
56,995
56,111
885
60
36
0
22,316r
39,318
35,636r
3,682
57,952
57,385
566
59
44
0
22,869
37,773
34,278
3,496
57,147
56,077
1,070
79
59
0
23,412
38,433
34,941
3,492
58,353
57,939
414
76
61
0
25,542
37,481
34,158
3,323
59,700
58,737
963
130
90
0
22,003
39,261
35,549
3,712
57,552
56,515
1,037
148
124
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see insidefrontcover.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash may be
used to satisfy reserve requirements. The maintenance period for weekly reporters ends
sixteen days after the lagged computation period during which the vault cash is held.
Before Nov. 25, 1992, the maintenance period ended thirty days after the lagged
computation period.
4. All vault cash held during the lagged computation period by "bound" institutions
(that is, those whose required reserves exceed their vault cash) plus the amount of vault
cash applied during the maintenance period by "nonbound" institutions (that is, those
whose vault cash exceeds their required reserves) to satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Consists of borrowing at the discount window under the terms and conditions
established for the extended credit program to help depository institutions deal with
sustained liquidity pressures. Because there is not the same need to repay such borrowing
promptly as with traditional short-term adjustment credit, the money market impact of
extended credit is similar to that of nonborrowed reserves.
Money Stock and Bank Credit
A7
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS Large Banks1
Millions of dollars, averages of daily figures
1995, week ending Monday
Source and maturity
Feb. 27
1
2
3
4
5
6
7
8
Mar. 6
Mar. 13
Mar. 20
Mar. 27
Apr. 3
Apr. 10
Apr. 17
Apr. 24
Federal funds purchased, repurchase agreements, and other
selected borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and official
institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
69,701
14,853
72,625
15,823
74,398
16,308
69,882
16,714
68,115
17,463
72,699
18,120
73,555
19,323
73,752
22,179
72,251
17,752
18,988
24,916
18,601
25,283
18,407
28,095
18,882
29,647
21,227
29,805
21,250
28,469
20,049
24,448
18,994
29,665
22,459
30,673
Repurchase agreements on US. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
21,324
34,532
21,213
32,729
21,790
33,540
27,744
34,323
27,267
35,356
24,955
32,770
24,738
35,084
20,415
39,301
23,646
38,332
37,337
18,981
37,718
18,979
36,792
18,752
36,743
17,898
37,187
18,557
37,820
17,433
37,252
16,302
33,711
20,032
36,468
16,982
65,706
28,604
66,526
28,920
63,537
25,916
65,881
27,201
60,591
27,888
62,801
26,972
57,092
26,557
61,151
26,021
62,282
27,114
MEMO
Federal funds loans and resale agreements in immediately
available funds in maturities of one day or under
continuing contract
9 To commercial banks in the United States
10 To all other specified customers2
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release. For
ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions, foreign
banks and official institutions, and U.S. government agencies,
A8
DomesticNonfinancialStatistics • July 1995
1.14
F E D E R A L R E S E R V E B A N K INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit
On
6/2/95
Seasonal credit
On
6/2/95
Effective date
Extended credit
On
6/2/95
Previous rate
2/1/95
2/1/95
2/2/95
2/9/95
2/1/95
2/2/95
Previous rate
6.50
2/1/95
2/1/95
2/2/95
2/1/95
2/2/95
2/1/95
5/25/95
6.05
6.50
6.55
Range of rates for adjustment credit in recent years4
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
6.5
6.5
7
7
7.25
7.25
7.75
9
20
May 11
12
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
8-8.5
8.5
8.5-9.5
9.5
Nov.
1
3
1979—July 20
Aug. 17
10
10-10.5
10.5
10.5-11
20
Sept. 19
8
8.5
8.5
9.5
9.5
1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
10
10.5
10.5
Dec. 14
15
17
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
1984—Apr. 9
13
Nov. 21
26
Dec. 24
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985—May 20
24
7.5-8
7.5
7.5
7.5
1986—Mar. 7
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
8
12
1980—Feb. 15
19
May 29
30
June 13
12-13
13
12-13
13
13
13
July 28
29
Sept. 26
Nov. 17
Dec. 5
10-11
8
10
16
8
1981—May 5
11
11-12
12
11-12
11
10
11
12
11
11
10
10
12
11
12
12-13
13
13-14
14
13
13
14
14
26
10
Apr. 21
23.
July 11
Aug. 21
22
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
F.R.
Bank
of
N.Y.
13-14
13
12
11
11
12
12
21
Oct.
Range (or
level)—
All F.R.
Banks
1981—Nov. 2
6
Dec. 4
In effect Dec. 31,1977
1978—Jan.
Effective date
13
13
12
Effective date
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
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
1990—Dec. 19
6.5
6.5
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
2
7
3-3.5
3
3
3
1994—May 17
18
Aug. 16
18
Nov. 15
17
3-3.5
3.5
3.5-4
4
4-4.75
4.75
3.5
3.5
4
4
4.75
4.75
4.75-5.25
5.25
5.25
5.25
5.25
5.25
1991—Feb.
1
4
Apr. 30
May 2
Sept. 13
17
Nov. 6
7
Dec. 20
24
1992—July
1995—Feb.
1
9
In effect Jun. 2,1995
thirty days; however, at the discretion of the Federal Reserve Bank, this time period may
be shortened. Beyond this initial period, a flexible rate somewhat above rates charged on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less than the
discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors: Banking
and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest,
1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustmentcredit borrowings by institutions with deposits of $500 million or more that had borrowed
in successive weeks or in more than four weeks in a calendar quarter. A 3 percent
surcharge was in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2
percent was reimposed on Nov. 17, 1980; the surcharge was subsequently raised to 3
percent on Dec. 5,1980, and to 4 percent on May 5,1981. The surcharge was reduced to 3
percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1,
1981, the formula for applying the surcharge was changed from a calendar quarter to a
moving thirteen-week period. The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
A9
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Type of deposit2
Net transaction accounts
1 $0 million-$54.0 million..
2 More than $54.0 million4 .
12/20/94
12/20/94
3 Nonpersonal time deposits2
12/27/90
4 Eurocurrency liabilities6...
12/27/90
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with a
Federal Reserve Bank indirectly, on a pass-through basis, with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary Control Act
of 1980, depository institutions include commercial banks, mutual savings banks,
savings and loan associations, credit unions, agencies and branches of foreign banks,
and Edge Act corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 requires that $2 million
of reservable liabilities of each depository institution be subject to a zero percent reserve
requirement. The Board is to adjust the amount of reservable liabilities subject to this zero
percent reserve requirement each year for the succeeding calendar year by 80 percent of
the percentage increase in the total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1994, the exemption was raised from $4.0 million to
$4.2 million. The exemption applies only to accounts that would be subject to a 3 percent
reserve requirement.
3. Includes all deposits against which the account holder is permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and
telephone and preauthorized transfers for the purpose of making payments to third persons
or others, other than money market deposit accounts (MMDAs) and similar accounts that
permit no more than six preauthorized, automatic, or other transfers per month, of which
no more than three may be checks (accounts subject to such limits are considered savings
deposits).
The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which die 3 percent reserve requirement applies be modified annually by 80
percent of the percentage change in transaction accounts held by all depository institutions, determined as of June 30 of each year. Effective Dec. 20, 1994, the amount was
increased from $51.9 million to $54.0 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on
Apr. 2, 1992, for institutions that report weekly, and on Apr. 16,1992, for institutions that
report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1l/2 years was reduced from 3 percent to
1 vi percent for the maintenance period that began Dec. 13, 1990, and to zero for the
maintenance period that began Dec. 27, 1990. The reserve requirement on nonpersonal
time deposits with an original maturity of 1 'A years or more has been zero since Oct. 6,
1983.
For institutions that report quarterly, the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1'/! years was reduced from 3 percent to
zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to
zero in the same manner and on the same dates as was the reserve requirement on
nonpersonal time deposits with an original maturity of less than 1 Vi years (see note 5).
A10
1.17
DomesticNonfinancialStatistics • July 1995
FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1994
Type of transaction
and maturity
1992
1995
1994
1993
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
U.S. TREASURY SECURITIES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
Matched transactions
25 Gross purchase
26 Gross sales
Repurchase agreements
27 Gross purchases
28 Gross sales
29 Net change in U.S. Treasury securities
14,714
1,628
308,699
1,600
332,229
0
17,717
17,484
0
380,327
0
0
0
29,668
0
518
0
29,361
0
6,109
0
36,543
0
444
0
29,883
0
0
0
37,122
0
0
0
31,530
0
0
0
36,449
0
1,096
0
36,662
-30,543
0
1,223
0
31,368
-36,582
0
1,238
0
0
-21,444
0
151
0
961
-2,203
0
450
0
460
0
0
0
0
1,790
-5,795
0
125
0
-2,430
1,680
0
0
0
2,835
-3,167
0
0
0
5,872
-4,881
0
0
0
0
0
0
13,118
0
-34,478
25,811
10,350
0
-27,140
0
9,168
0
-6,004
17,801
2,530
0
-837
2,203
0
-460
0
200
0
-1,123
4,192
2,208
0
2,430
-1,680
0
0
-2,145
3,167
0
0
-5,115
3,031
0
0
0
0
2,818
0
-1,915
3,532
4,168
3,818
0
-3,145
2,903
938
0
-125
0
0
0
0
0
0
0
0
0
-278
1,603
660
0
0
0
0
0
-690
0
0
0
-757
1,150
2,333
0
-269
1,200
3,457
0
0
0
3,606
0
-918
775
840
0
0
0
0
0
0
0
0
0
-389
0
1,252
0
0
0
0
0
0
0
0
0
0
700
0
0
0
0
34,079
1,628
1,600
36,915
0
767
35,314
4,459
968
0
2,337
0
0
979
6,309
0
0
4,689
0
0
0
0
621
0
0
0
0
0
0
1,480,140
1,482,467
1,475,941
1,475,085
1,700,836
1,701,309
151,029
151,589
136,556
137,242
148,425
147,858
166,648
166,007
160,465
167,676
178,877
176,232
168,800
170,724
378,374
386,257
475,447
470,723
309,276
311,898
4,975
9,354
17,088
15,613
35,456
32,561
29,406
26,351
32,201
39,756
1,300
3,310
22,070
16,477
20,642
41,729
29,882
-479
778
9,771
8,385
-15,387
634
3,669
0
0
632
0
0
0
1,002
0
0
774
31
0
0
62
0
0
70
0
0
37
0
0
91
0
0
55
0
0
83
14,565
14,486
35,063
34,669
52,696
52,696
3,620
4,982
2,868
2,838
8,615
7,360
5,090
5,720
5,243
4,948
25
1,345
4,926
3,821
-554
-380
-1,002
-1,393
-32
1,185
-667
204
-1,375
1,022
20,089
41,348
28,880
-1,872
746
10,956
7,718
-15,183
-741
4,691
0
0
0
0
0
0
0
0
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations
36 Total net change in System Open Market Account...
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
0
Federal Reserve Banks
All
1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
1995
Account
Mar. 29
Apr. 5
End of month
1995
Apr. 12
Apr. 19
Apr. 26
Feb. 28
Mar. 31
Apr. 30
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawing rights certificate account
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities
2
11,053
8,018
415
11,053
8,018
416
11,054
8,018
412
11,055
8,018
414
11,055
8,018
399
11,050
8,018
429
11,053
8,018
434
11,055
8,018
417
115
0
0
75
0
0
71
0
0
109
0
0
191
0
0
54
0
0
84
0
0
155
0
0
3,408
1,171
3,408
500
3,408
450
3,408
400
3,388
1,550
3,491
0
3,408
1,105
3,388
500
369,324
368,825
373,176
373,360
378,378
365,631
369,300
371,304
363,707
177,187
143,773
42,747
5,593
368,554
177,878
146,454
44,222
2,750
10 Bought outright
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements
367,394
180,874
143,773
42,747
1,930
364,375
177,855
143,773
42,747
4,450
369,820
178,774
146,824
44,222
3,356
366,014
175,338
146,454
44,222
7,346
368,366
177,690
146,454
44,222
10,012
365,631
179,111
143,773
42,747
0
15 Total loans and securities
374,019
372,808
377,105
377,277
383,507
369,176
373,897
375,347
3,611
1,080
4,312
1,085
Other assets
18 Denominated in foreign currencies3
19 All other4
20 Total assets
4,693
1,081
5,699
1,081
5,352
1,083
5,616
1,085
5,273
1,085
23,657
9,407
24,549
9,329
24,017
9,969
24,034
9,974
24,054
10,747
24,743
8,388
25,286
9,129
24,405
10,309
432,342
16 Items in process of collection
17 Bank premises
9,161
1,078
432,953
437,010
437,474
444,140
432,044
432,508
434,948
LIABILITIES
379,936
381,808
383,914
384,525
383,954
375,385
379,191
382,754
22 Total deposits
35,519
31,920
35,539
34,995
42,626
36,469
35,320
35,085
23
24
25
26
30,548
4,389
185
397
26,330
5,007
167
416
30,591
4,410
187
350
28,618
5,923
158
335
34,011
8,128
165
323
28,754
6,890
188
325
30,009
4,543
370
398
26,338
8,241
166
339
4,330
4,544
5,153
4,360
4,809
4,687
5,247
4,667
4,923
4,596
6,479
4,510
3,549
4,578
4,014
4,578
424,328
423,242
428,949
429,434
436,099
422,843
422,638
426,432
3,781
3,683
549
3,789
3,683
2,239
3,793
3,683
585
3,793
3,683
564
3,793
3,683
564
3,768
3,683
1,749
3,786
3,683
2,401
3,794
3,683
1,039
432,342
432,953
437,010
437,474
444,140
432,044
432,508
434,948
429,710
433,735
445,790
447,937
438,611
418,667
429,759
440,236
21 Federal Reserve notes
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
32 Other capital accounts
33 Total liabilities and capital accounts
MEMO
34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Banks)
36 LESS: Held by Federal Reserve Banks
37 Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Ctther eligible assets
U.S. Treasury and agency securities
42 Total collateral
453,497
73,561
379,936
453,666
71,857
381,808
455,652
71,738
383,914
456,960
72,435
384,525
458,900
74,946
383,954
457,095
81,710
375,385
452,980
73,790
379,191
459,648
76,894
382,754
11,053
8,018
11,053
8,018
0
362,737
11,054
8,018
0
364,842
11,055
8,018
0
365,452
11,055
8,018
0
364,881
11,050
8,018
0
356,317
11,053
8,018
0
360,119
11,055
8,018
0
363,681
381,808
383,914
384,525
383,954
375,385
379,191
382,754
0
360,864
379,936
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought
back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago in
Treasury bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.
A12
DomesticNonfinancialStatistics • July 1995
1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
1995
Type of holding and maturity
End of month
1995
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Feb. 28
Mar. 31
Apr. 30
1 Total loans
116
75
71
109
191
54
86
153
2 Withinfifteendays'
3 Sixteen days to ninety days
110
6
24
48
0
373,176
105
5
0
373,360
184
7
0
378,378
38
16
82
4
367,396
28
47
0
368,825
365,631
363,707
146
7
0
368,554
21,375
84,013
112,742
86,730
26,990
35,545
21,543
89,046
109,973
85,728
26,990
35,545
17,100
89,164
116,328
88,277
25,623
36,683
22,528
84,370
116,665
87,850
25,263
36,683
27,972
83,895
116,715
87,850
25,263
36,683
11,471
89,928
113,264
87,864
27,561
35,545
9,764
94,316
111,365
85,728
26,990
35,545
11,454
94,921
112,383
87,850
25,263
36,683
16 Total federal agency obligations
3,409
3,908
3,857
3,808
4,937
3,491
3,408
3,388
17
18
19
20
21
22
216
524
782
1,405
457
25
500
524
997
1,405
457
25
470
729
802
1,415
417
25
550
599
802
1,415
417
25
1,680
617
831
1,368
417
25
255
448
888
1,418
457
25
215
524
782
1,405
457
25
160
587
831
1,368
417
25
9 Total U.S. Treasury securities
10 Withinfifteendays'
11 Sixteen days to ninety days
12 Ninety-one days to one year
13 One year to five years14 Five years to ten years
15 More than ten years
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days
in accordance with maximum maturity of the agreements.
NOTE. Total acceptances data have been deleted from this table because data are no
longer available.
Monetary and Credit Aggregates
A13
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1994
Item
1991
Dec.
1992
Dec.
1993
Dec.
1994
Dec.
Sept.
Oct.
Total reserves3
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
Dec.
Jan.
Feb.
Mar/
Apr.
59.34
59.13
59.13
58.17
418.22
59.12
58.99
58.99
57.79
421.05
58.92
58.86
58.86
57.97
422.31
58.55
58.48
58.48
57.76
425.35
57.96
57.85
57.85
57.21
428.12
Nov.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1
2
3
4
5
1995
45.54
45.34
45.34
44.56
317.43
54.35
54.23
54.23
53.20
351.12
60.50
60.42
60.42
59.44
386.60
59.34
59.13
59.13
58.17
418.22
59.79
59.31
59.31
58.73
411.34
59.50
59.12
59.12
58.69
413.85
59.40
59.15
59.15
58.39
416.79
Not seasonally adjusted
6
7
8
9
10
Total reserves
Nonborrowed reserves
Nonborrowedreservesplus extended credir
Required reserves8
Monetary base
46.98
46.78
46.78
46.00
321.07
56.06
55.93
55.93
54.90
354.55
62.37
62.29
62.29
61.31
390.59
61.13
60.92
60.92
59.96
422.51
59.73
59.24
59.24
58.67
411.37
59.24
58.86
58.86
58.44
413.15
59.73
59.48
59.48
58.72
417.08
61.13
60.92
60.92
59.96
422.51
60.52
60.38
60.39
59.18
421.84
57.72
57.66
57.66
56.78
419.25
57.62
57.55
57.55
56.83
423.27
58.93
58.82
58.82
58.18
428.73
55.53
55.34
55.34
54.55
333.61
.98
.19
56.54
56.42
56.42
55.39
360.90
1.16
.12
62.86
62.78
62.78
61.80
397.62
1.06
.08
61.34
61.13
61.13
60.17
427.25
1.17
.21
59.95
59.47
59.47
58.89
416.70
1.06
.49
59.49
59.11
59.11
58.69
418.19
.80
.38
60.01
59.76
59.76
59.00
421.90
1.01
.25
61.34
61.13
61.13
60.17
427.25
1.17
.21
60.52
60.39
60.39
59.18
426.31
1.34
.14
57.70
57.64
57.64
56.75
423.57
.95
.06
57.58
57.51
57.51
56.79
427.56
.79
.07
58.88
58.76
58.76
58.12
432.79
.75
.11
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS10
11
12
13
14
15
16
17
Total reserves"
Nonborrowed reserves
Nonborrowedreservesplus extended credit
Required reserves
Monetary base12.
Excess reserves
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data starting in 1959 and estimates of the impact on
requiredreservesof changes inreserverequirementsare 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 inreserverequirements.(See also table 1.10)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjustedrequiredreserves(line 4) plus excessreserves(line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves (line 1) less total borrowings of depository institutionsfromthe Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help depository
institutions deal with sustained liquidity pressures. Because there is not the same need to
repay such borrowing promptly as with traditional short-term adjustment credit, the
money market impact of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted totalreserves(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 requiredreserves)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 requiredreservesfor discontinuities that are due toregulatorychanges in
reserve requirements, a multiplicative procedure is used to estimate what required
reserves would have been in past periods had currentreserverequirements been in effect.
Break-adjusted required reserves include required reserves against transactions deposits
and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6),
plus (2) the (unadjusted) currency component of the money stock, plus (3) (for all
quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the break-adjusted difference between current vault cash and the amount applied
to satisfy currentreserverequirements.
10. Reflects actual reserverequirements,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
forfloatat 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 reserverequirements.Since the introduction of contemporaneous reserve
requirements in February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
Domestic Financial Statistics • July 1995
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1995
1991
Dec.
1992
Dec.
1993
Dec.
1994
Dec.
Jan.r
Feb.r
Mar.r
Apr.
Seasonally adjusted
2
1
2
3
4
5
Measures
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
897.3
3,457.9
4,176.0
4,990.9
11,171.1
1,024.4
3,515.3
4,182.9
5,061.1
11,706.1
1,128.6
3,583.6
4,242.5
5,150.3
12,335.3
1,147.8
3,615.1r
4,304.5r
5,294^
12,965.0
1,148.8
3,626.9
4,327.7
5,327.0
13,021.9
1,147.1
3,622.7
4,335.8
5,375.8
13,096.8
1,147.9
3,630.3
4,356.8
5,426.0
13,154.9
1,149.7
3,642.9
4,377.9
n.a.
n.a.
267.4
7.7
289.5
332.7
292.8
8.1
338.9
384.6
322.1
7.9
383.9
414.7
354.5
8.4
382.0
402.9
357.7
8.4
383.4
399.3
358.8
8.4
384.0
395.9
362.5
8.8
383.2
393.3
365.7
9.2
381.2
393.6
2,560.6
718.1
2,490.9
667.6
2,455.0
658.9
2,467.2r
689.4r
2,478.1
700.8
2,475.6
713.1
2,482.4
726.5
2,493.2
735.0
Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits10' 11
665.6
602.5
333.3
754.7
508.1
286.7
785.8
468.6
271.2
752.3
502.4
298.3r
744.1
512.4
296.9
734.2
524.0
303.8
723.3
537.6
308.3
716.0
547.9
308.4
Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits9
17 Large time deposits10
375.6
464.1
83.3
428.9
361.1
67.1
429.8
316.5
61.6
391.9
317.3r
64.3
385.6
322.9
66.1
377.6
331.4
67.6
371.6
340.7
69.5
366.4
348.9
70.6
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
374.2
180.0
356.9
200.2
360.1
198.1
389.0
180.8
392.1
186.3
391.5
180.4
390.9
189.0
396.0
192.9
2,763.3
8,407.8
3,067.9
8,638.1
3,328.0
9,007.3
3,497.4
9,467.6
3,504.7
9,517.2
3,535.8
9,561.0
3,557.5
9,597.4
n.a.
n.a.
Nontransaction components
10 In M27
11 In M38 only
Debt components
20 Federal debt
21 Nonfederal debt
Not seasonailly adjusted
22
23
24
25
26
Measures2
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
916.0
3,472.7
4,189.4
5,015.5
11,168.5
1,046.0
3,533.6
4,201.4
5,090.8
11,708.9
1,153.7
3,606.1
4,266.3
5,184.9
12,327.4
1,173.5
3,638.6r
4,330.6'
5,331.7r
12,956.8
1,158.5
3,633.4
4,337.4
5,350.1
12,996.6
1,134.2
3,609.0
4,324.5
5,367.5
13,043.9
1,138.0
3,628.3
4,352.6
5,425.4
13,106.6
1,158.7
3,659.3
4,389.7
n.a.
n.a.
269.9
7.4
302.4
336.3
295.0
7.8
354.4
388.9
324.8
7.6
401.8
419.4
357.6
8.1
400.1
407.6
355.9
8.1
388.7
405.7
357.1
8.1
374.9
394.1
361.4
8.4
374.0
394.2
365.5
8.8
382.0
402.4
2,556.6
716.7
2,487.7
667.7
2,452.4
660.2
2,465. l r
692.0"
2,475.0
704.0
2,474.8
715.6
2,490.2
724.3
2,500.6
730.4
Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits9
35 Large time deposits10' 11
664.0
601.9
332.6
752.9
507.8
286.2
784.3
468.2
270.8
751.1
502.0r
298.0
739.5
512.9
295.5
729.8
524.1
302.3
723.4
537.4
306.2
717.8
547.3
306.2
Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits9
38 Large time deposits10
374.8
463.7
83.1
427.9
360.9
67.0
429.0
316.2
61.5
391.2
317. l r
64.3
383.2
323.2
65.8
375.3
331.5
67.2
371.6
340.6
69.1
367.4
348.5
70.1
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
372.2
180.8
355.1
201.7
358.3
200.0
387.1
183.1
392.8
192.4
396.3
188.8
399.8
190.8
404.8
191.3
Repurchase agreements and Eurodollars
41 Overnight and continuing
42 Term
79.9
132.7
83.2
127.8
96.5
144.1
116.7r
159.0
123.4
164.0
117.8
170.5
117.6
171.4
114.9
176.1
2,765.0
8,403.5
3,069.8
8,639.1
3,329.5
8,997.9
3,499.0
9,457.7
3,499.0
9,497.6
3,525.0
9,518.9
3,551.1
9,555.5
Nontransaction components
31 In M27
32 In M38
Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.
n.a.
n.a.
Monetary and Credit Aggregates
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data starting in 1959 are available from the Money
and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government,
and foreign banks and official institutions, less cash items in the process of collection and
Federal Reservefloat,and (4), other checkable deposits (OCDs), consisting of negotiable
order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository
institutions, credit union share draft accounts, and demand deposits at thrift institutions.
Seasonally adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to U.S. residents by
foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small
time deposits (time deposits—including retail RPs—in amounts of less than $100,000),
and (3) balances in both taxable and tax-exempt general-purpose and broker-dealer
money market funds. Excludes individualretirementaccounts (IRAs) and Keogh balances
at depository institutions and money market funds. Also excludes all balances held by
U.S. commercial banks, money market funds (general purpose and broker-dealer), foreign
governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of $100,000 or
more) issued by all depository institutions, (2) term Eurodollars held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United
Kingdom and Canada, and (3) balances in both taxable and tax-exempt, institution-only
money market funds. Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Also excluded is
the estimated amount of overnight RPs and Eurodollars held by institution-only money
market funds. Seasonally adjusted M3 is computed by adjusting its non-M2 component as
a whole and then adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term Treasury
securities, commercial paper, and bankers acceptances, net of money market fund holdings of these assets. Seasonally adjusted L is computed by summing U.S. savings bonds,
A15
short-term Treasury securities, commercial paper, and bankers acceptances, each seasonally adjusted separately, and then adding this result to M3.
Debt: The debt aggregate is the outstanding credit market debt of the domestic
nonfinancial sectors—the federal sector (U.S. government, not including governmentsponsored enterprises or federally related mortgage pools) and the nonfederal sectors
(state and local governments, households and nonprofit organizations, nonfinancial corporate and nonfarm noncorporate businesses, and farms). Nonfederal debt consists of
mortgages, tax-exempt and corporate bonds, consumer credit, bank loans, commercial
paper, and other loans. The data, which are derived from the Federal Reserve Board's flow
of funds accounts, are break-adjusted (that is, discontinuities in the data have been
smoothed into the series) and month-averaged (that is, the data have been derived by
averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank
issuers. Travelers checks issued by depository institutions are included in demand
deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than
those owed to depository institutions, the U.S. government, and foreign banks and official
institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit
union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S. residents,
and (4) money market fund balances (institution-only), less (5) a consolidation adjustment
that represents the estimated amount of overnight RPs and Eurodollars held by institutiononly money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of less
than $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions
are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding
those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
A16
DomesticNonfinancialStatistics • July 1995
1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1
1994
1992
1995
1993
Dec.
Dec.
Aug.
Sept.
Oct.
Nov.
Jan.
Dec.
Feb.
Mar.r
Apr.
Interest rates (annual effective yields)2
INSURED COMMERCIAL BANKS
1 Negotiable order of withdrawal accounts
2 Savings deposits3
3
4
5
6
7
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 1V2 years
2.33
2.88
1.86
2.46
1.85
2.63
1.87
2.67
1.88
2.72
1.92
2.81
1.96
2.91
1.98
2.98
2.01
3.09
2.00
3.14
2.00
3.15
2.90
3.16
3.37
3.88
4.77
2.65
2.91
3.13
3.55
4.29
3.29
3.61
4.11
4.61
5.33
3.36
3.75
4.27
4.80
5.47
3.47
3.93
4.50
5.08
5.77
3.65
4.22
4.85
5.42
6.09
3.81
4.44
5.12
5.74
6.30
3.96
4.67
5.39
6.00
6.47
4.19
4.83
5.57
6.12
6.52
4.24
4.97
5.60
6.12
6.45
4.28
4.95
5.60
6.05
6.36
2.45
3.20
1.87
2.63
1.89
2.74
1.91
2.78
1.88
2.76
1.91
2.83
1.95
2.88
1.99
2.91
2.04
2.95
1.99
2.94
2.02
2.95
3.13
3.44
3.61
4.02
5.00
2.70
3.02
3.31
3.66
4.62
3.03
3.69
4.24
4.83
5.47
3.11
3.87
4.47
5.04
5.64
3.32
4.10
4.80
5.39
5.79
3.51
4.42
5.18
5.70
6.18
3.80
4.89
5.52
6.09
6.43
3.98
5.13
5.75
6.29
6.68
4.17
5.33
5.94
6.37
6.75
4.21
5.37
5.94
6.32
6.68
4.20
5.36
5.89
6.23
6.59
BIF-INSURED SAVINGS BANKS 4
8 Negotiable order of withdrawal accounts
9 Savings deposits3
10
11
12
13
14
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2VI years
More than 2VS years
Amounts outstanding (millions of dollars)
INSURED COMMERCIAL BANKS
15 Negotiable order of withdrawal accounts
16 Savings deposits3
17 Personal
18 Nonpersonal
19
20
21
22
23
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2vi years
24 IRA and Keogh plan deposits
286,541
738,253
578,757
159,496
305,223
766,413
597,838
168,575
295,320
764,035
600,892
163,143
286,787
755,249
595,175
160,074
294,072
751,183
590,875
160,308
294,282
746,605
584,628
161,977
303,724
734,519
578,459
156,060
291,355
723,295
569,619
153,676
290,188
714,955
564,877
150,078
292,811
713,440
564,086
149,354
287,068
699,196
551,193
148,002
38,474
127,831
163,098
152,977
169,708
29,455
110,069
146,565
141,223
181,528
27,959
98,085
155,964
150,807
186,490
28,312
96,398
157,253
152,514
190,209
31,447
95,359
158,753
155,111
188,479
31,077
94,692
159,645
158,382
189,741
32,375
95,901
161,831
162,486
190,897
32,154
96,895
163,939
168,515
190,215
31,777
98,248
169,103
176,877
191,383
31,623
95,583
176,657
183,275
194,722
31,702
94,556
179,579
190,197
193,324
147,350
143,985
142,617
142,700
142,896
143,075
143,428
143,900
145,040
145,959
146,649
10,871
81,786
78,695
3,091
11,151
80,115
77,035
3,079
11,016
75,108
72,040
3,068
10,769
74,659
71,525
3,134
11,120
73,416
70,215
3,201
11,002
72,622
69,412
3,211
11,317
70,642
67,673
2,969
11,127
71,639
68,760
2,878
10,950
69,982
67,144
2,837
11,218
68,595
65,692
2,902
11,006
67,349
64,445
2,904
3,867
17,345
21,780
18,442
18,845
2,793
12,946
17,426
16,546
20,464
2,523
12,292
17,593
16,824
21,531
2,402
12,276
17,928
17,287
21,923
2,245
11,987
18,123
17,519
21,624
2,209
11,913
18,509
17,999
21,687
2,166
11,793
18,753
17,842
21,600
2,041
12,084
19,336
20,460
21,888
2,086
11,953
19,979
21,870
22,275
1,943
11,707
20,277
22,648
22,446
1,864
11,420
20,547
23,350
22,934
21,713
19,356
19,445
19,532
19,550
19,532
19,325
19,802
20,099
20,221
20,420
BIF-INSURED SAVINGS BANKS 4
25 Negotiable order of withdrawal accounts
26 Savings deposits3
27 Personal
28 Nonpersonal
29
30
31
32
33
Interest-bearing time deposits with balances of
less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vz years
34 IRA and Keogh plan accounts
1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6 (508)
Special Supplementary Table monthly statistical release. For ordering address, see inside
front cover. Estimates are based on data collected by the Federal Reserve System from a
stratified random sample of about 425 commercial banks and 75 savings banks on the last
day of each month. Data are not seasonally adjusted and include IRA and Keogh deposits
and foreign currency-denominated deposits. Data exclude retail repurchase agreements
and deposits held in U.S. branches and agencies of foreign banks.
2. As of October 31, 1994, interest rate data for NOW accounts and savings deposits
reflect a series break caused by a change in the survey used to collect these data.
3. Includes personal and nonpersonal money market deposits.
4. Includes both mutual and federal savings banks.
Monetary and Credit Aggregates
A17
1.23 BANK DEBITS AND DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1994
1995
Bank group, or type of deposit
Sept.
Oct.
Demand deposits3
All insured banks
Major New York City banks
Other banks
4
5
Other checkable deposits4
Savings deposits (including MMDAs)5
6
7
8
Demand deposits3
All insured banks
Major New York City banks
Other banks
Dec.
Jan/
Feb.
Seasonally adjusted
DEBITS
1
2
3
Nov.
313,128.1
165,447.7
147,680.4
334,245.6
171,227.3
163,018.3
367,129.2
191,169.8
175,959.4
368,276.6
186,074.2
182,202.4
352,375.9
179,396.2
172,979.7
369,211.3
186,350.6
182,860.7
371,048.0
187,955.6
183,092.4
364,951.0
183,419.3
181,531.6
381,731.4
195,142.7
186,588.7
3,780.3
3,309.1
3,467.1
3,508.8
3,831.4
3,737.1
3,905.1
3,760.0
3,896.7
3,639.6
4,116.4
3,835.7
4,199.0
4,033.1
4,056.6
3,861.2
3,984.6
3,954.3
825.9
4,795.3
428.7
785.3
4,198.1
423.6
813.0
4,481.6
430.3
815.5
4,502.1
444.1
783.6
4,414.6
422.9
826.5
4,544.7
450.7
820.6
4,490.8
446.3
810.0
4,337.5
444.7
851.2
4,662.4
458.9
14.4
4.7
11.8
4.6
12.8
4.9
13.0
4.9
13.0
4.8
13.9
5.1
14.2
5.4
13.8
5.3
13.6
5.5
DEPOSIT TURNOVER
9
10
Other checkable deposits4
Savings deposits (including MMDAs)5
Not seasonally adjusted
DEBITS
11
12
13
Demand deposits3
All insured banks
Major New York City banks
Other banks
14
15
Other checkable deposits4
Savings deposits (including MMDAs)5
16
17
18
Demand deposits3
All insured banks
Major New York City banks
Other banks
19
20
Other checkable deposits4
Savings deposits (including MMDAs)5
313,344.9
165,595.0
147,749.9
334,354.6
171,283.5
163,071.0
367,218.8
191,226.1
175,992.8
365,063.0
186,161.8
178,901.2
352,548.5
181,406.6
171,141.8
359,229.9
184,656.3
174,573.5
384,218.7
194,120.1
190,098.6
363,926.8
181,602.7
182,324.1
353,562.1
181,697.8
171,864.3
3,783.6
3,310.0
3,467.5
3,509.5
3,827.9
3,734.9
3,960.9
3,716.4
3,797.1
3,472.2
3,845.9
3,640.4
4,365.1
4,244.8
4,404.5
4,036.4
3,671.0
3,579.2
826.1
4,803.5
428.8
785.4
4,197.9
423.8
813.8
4,490.3
430.6
811.9
4,539.5
437.8
774.5
4,435.8
413.1
785.9
4,391.6
420.6
814.9
4,343.4
445.4
791.1
4,128.1
438.2
806.7
4,334.9
433.6
14.4
4.7
11.8
4.6
12.7
4.9
13.3
4.9
12.9
4.6
13.0
4.8
14.5
5.7
14.6
5.5
12.5
4.9
DEPOSIT TURNOVER
1. Historical tables containing revised data for earlier periods can be obtained from the
Publications Section, Division of Support Services, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
Data in this table also appear in the Board's G.6 (406) monthly statistical release. For
ordering address, see inside front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of states and
political subdivisions.
4. As of January 1994, other checkable deposits (OCDs), previously defined as
automatic transfer to demand deposits (ATSs) and negotiable order of withdrawal (NOW)
accounts, were expanded to include telephone and preauthorized transfer accounts. This
change redefined OCDs for debits data to be consistent with OCDs for deposits data.
5. Money market deposit accounts.
A18
Domestic Financial Statistics • July 1995
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1
Billions of dollars
Monthly averages
1994r
Account
Apr.
Oct.
1995r
Nov.
Dec.
Jan.
ALL COMMERCIAL
BANKING INSTITUTIONS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6
16 Total assets7
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities8
27 Total UabiUties
28 Residual (assets less liabilities)9
Wednesday figures
Feb.
1995
Mar.
Apr.
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Seasonally adjusted
3,203.2
967.9
756.7
211.2
2,235.3
603.2
948.5
73.3
875.2
408.2
79.0
196.4
149.9
210.6
221.9
3,7283
3,297.6
951.4
724.3
227.1
2,346.2
639.6
991.6
75.7
915.8
445.8
69.7
199.6
172.3
205.9
221.1
3,316.1
946.9
720.2
226.7
2,369.1
644.6
999.8
76.2
923.6
452.2
70.9
201.6
175.0
208.9
227.6
3,349.1
945.5
721.7
223.8
2,403.6
657.7
1,015.1
76.7
938.5
457.5
68.6
204.6
179.0
219.4
236.7
3,362.2
936.9
716.8
220.1
2,425.3
669.6
1,022.8
77.0
945.9
459.5
67.8
205.5
177.7
216.0
242.3
3,385.1
939.2
704.5
234.7
2,445.9
673.1
1,028.4
77.2
951.2
465.1
69.7
209.6
180.0
207.1
244.4
3,424.5
951.6
704.4
247.2
2,472.9
682.0
1,036.0
78.0
958.0
471.0
73.2
210.6
178.5
208.6
253.3
3,406.8
945.9
704.0
242.0
2,460.9
675.6
1,032.2
77.6
954.6
470.2
72.9
209.9
174.0
201.4
252.7
3,414.9
951.8
704.1
247.7
2,463.1
680.7
1,033.9
77.8
956.1
470.5
68.3
209.6
177.2
207.3
252.1
3,428.0
955.4
704.5
251.0
2,472.5
680.9
1,036.3
78.1
958.2
471.2
74.2
209.9
175.2
207.0
253.9
3,435.7
952.8
705.1
247.8
2,482.9
685.5
1,038.7
78.2
960.5
471.0
74.8
212.9
187.0
218.4
253.0
3,840.7
3,289.4
959.0
731.8
227.1
2,330.5
633.9
985.9
75.1
910.8
441.6
70.4
198.6
165.6
208.9
221.2
3,871.4
3,927.2
3,941.6
3,960.2
4,007.8
3,978.0
3,994.6
4,007.0
4,037.1
2,507.2
803.4
1,703.8
336.6
1,367.2
569.3
152.3
417.1
174.2
174.4
2,526.5
804.9
1,721.7
354.1
1,367.6
583.6
165.4
418.2
214.6
179.7
2,522.6
797.7
1,724.9
358.3
1,366.6
590.6
169.3
421.3
213.5
177.4
2,528.7
797.6
1,731.1
361.4
1,369.7
606.5
176.8
429.7
225.6
181.2
2,544.0
808.6
1,735.3
365.7
1,369.6
640.1
181.1
459.0
244.9
175.7
2,547.2
804.9
1,742.2
373.0
1,369.3
642.4
178.5
464.0
252.5
179.7
2,548.2
795.6
1,752.6
379.4
1,373.2
647.6
182.0
465.6
241.3
197.2
2,556.7
791.3
1,765.4
385.1
1,380.4
672.7
181.5
491.2
235.0
218.5
2,546.4
792.7
1,753.7
378.7
1,375.0
649.1
177.4
471.7
238.5
213.6
2,552.3
791.9
1,760.4
383.6
1,376.8
661.9
181.6
480.3
229.3
216.7
2,554.7
789.2
1,765.5
385.2
1,380.3
676.6
177.4
499.1
238.7
221.1
2,568.1
795.0
1,773.2
389.3
1,383.9
695.3
191.0
504.3
236.2
218.8
3,425.1
3,504.5
3,504.2
33410
3,604.7
3,621.8
3,634.2
3,6m
3,647.6
3,660.2
3,691.0
3,7184
303.2
324.0
336.5
329.4
322.5
319.8
326.0
325.0
330.5
334.4
316.0
318.7
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6
44 Total assets7
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities8
55 Total liabilities
56 Residual (assets less liabilities)9
Footnotes appear onfollowingpage.
3,203.9
973.6
761.2
212.4
2,230.3
607.1
944.8
72.8
872.0
405.4
79.9
193.2
150.1
207.0
218.2
3,289.8
957.8
731.2
226.6
2,331.9
631.7
988.6
75.8
912.8
441.7
70.1
199.8
163.8
209.4
223.1
3,306.1
952.8
725.3
227.5
2,353.3
639.7
996.3
76.1
920.2
446.0
71.3
200.0
173.9
212.4
223.9
3,332.0
942.2
719.1
223.2
2,389.8
645.3
1,006.2
76.3
930.0
457.2
75.5
205.6
185.7
222.8
233.3
3,345.1
939.5
715.6
224.0
2,405.6
654.4
1,013.5
76.6
936.8
462.2
70.8
204.8
185.9
224.8
236.5
3,358.0
935.7
712.4
223.2
2,422.4
668.2
1,019.0
76.6
942.3
460.7
71.0
203.5
179.8
212.6
240.0
3,385.6
946.9
709.4
237.4
2,438.7
676.3
1,023.6
76.5
947.0
461.6
70.9
206.3
178.3
201.4
239.7
3,425.7
958.3
708.7
249.5
2,467.4
686.5
1,031.8
77.5
954.4
467.8
74.0
207.3
178.0
204.9
248.8
3,409.2
958.5
711.6
246.9
2,450.7
680.8
1,027.4
76.7
950.7
465.4
68.7
208.4
180.0
198.9
248.5
3,413.8
960.2
709.1
251.0
2,453.6
682.4
1,029.7
77.0
952.7
466.0
69.6
205.9
179.5
203.8
246.6
3,436.4
963.0
709.7
253.2
2,473.5
686.9
1,032.1
77.6
954.5
468.2
78.8
207.4
175.2
206.5
248.3
3,429.5
953.6
706.2
247.4
2,475.9
689.5
1,034.2
77.9
956.2
469.2
75.5
207.5
179.4
207.8
247.1
3,7222
3,829.5
3,859.7
3,9173
3,935.8
3,933.8
3,9483
4,000.6
3,980.1
3,987.1
4,009.6
4,007.1
2,510.9
808.6
1,702.3
335.7
1,366.7
556.9
150.2
406.7
175.5
170.4
2,522.1
802.1
1,720.0
352.0
1,368.0
591.5
163.5
428.0
214.4
181.6
2,537.7
811.9
1,725.8
357.5
1,368.3
603.9
173.6
430.3
213.2
182.6
2,561.5
833.3
1,728.2
359.9
1,368.3
619.2
185.7
433.4
230.3
184.2
2,547.9
818.9
1,728.9
362.5
1,366.4
633.0
185.9
447.2
251.5
178.6
2,537.9
796.0
1,741.8
373.2
1,368.6
638.6
179.8
458.8
249.6
180.4
2,538.4
783.4
1,755.0
380.6
1,374.5
636.8
178.3
458.5
245.2
196.3
2,559.6
796.1
1,763.5
383.7
1,379.8
655.2
178.0
477.1
237.5
213.3
2^68.2
808.8
1,759.3
377.1
1,382.2
635.2
180.0
455.2
231.6
210.2
2,569.4
805.4
1,763.9
381.0
1,382.9
643.3
179.5
463.8
227.9
211.5
2,562.8
802.5
1,760.3
383.5
1,376.8
663.7
175.2
488.5
234.6
214.0
2,538.0
774.0
1,764.1
388.2
1,375.9
667.8
179.4
488.4
253.6
213.0
3,413.6
3,509.6
3,537.5
3,595.2
3,611.0
3,6064
3,616.8
3,665.6
3,645.1
3,652.0
3,675.0
3,6724
308.6
319.9
322.3
322.1
324.8
327.5
331.5
335.0
335.0
335.1
334.6
334.7
Commercial Banking Institutions
A19
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS1—Continued
Billions of dollars
Wednesday figures
Monthly averages
1995r
1994r
Account
Apr.
Oct.
Nov.
Dec.
Jan.
DOMESTICALLY CHARTERED
COMMERCIAL BANKS
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security3
Other
Interbank loans4
Cash assets5
Other assets6
Feb.
1995
Mar.
Apr.
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Seasonally adjusted
2,854.0
884.7
694.8
189.9
1,969.3
448.3
904.2
73.3
830.9
408.2
50.6
158.0
125.1
184.0
173.3
2,940.0
875.5
674.8
200.7
2,064.5
473.6
944.4
75.1
869.3
441.6
45.5
159.3
140.6
185.1
167.4
2,950.0
871.0
670.6
200.4
2,079.0
476.7
950.2
75.7
874.5
445.8
46.0
160.2
148.6
181.4
167.3
2,966.0
868.6
669.0
199.5
2,097.4
480.3
958.7
76.2
882.5
452.2
45.4
160.8
151.4
181.7
167.8
2,997.5
864.3
668.4
195.9
2,133.2
492.1
974.6
76.7
897.9
457.5
45.5
163.6
155.0
192.1
171.5
3,000.6
848.3
656.7
191.5
2,152.3
499.0
982.8
77.0
905.8
459.5
46.5
164.4
155.1
190.2
173.2
3,019.2
851.6
646.1
205.6
2,167.6
502.3
988.9
77.2
911.6
465.1
45.9
165.5
156.4
181.0
168.2
3,051.0
860.5
643.1
217.3
2,190.5
510.3
997.3
78.0
919.2
471.0
45.4
166.5
157.2
181.3
165.6
3,038.7
855.6
643.5
212.1
2,183.1
505.9
993.6
77.6
916.0
470.2
46.2
167.2
153.5
175.4
166.9
3,044.0
860.9
644.0
216.9
2,183.0
509.1
995.0
77.8
917.2
470.5
42.4
166.1
159.4
180.8
165.9
3,054.3
863.5
642.7
220.8
2,190.9
510.1
997.6
78.1
919.5
471.2
46.4
165.6
152.9
179.6
166.9
3,058.6
861.6
642.8
218.8
2,197.1
513.0
999.9
78.2
921.7
471.0
45.9
167.2
162.3
189.8
164.4
72 Total assets7
3,279.2
3,3764
3,391.1
3,410.8
3,4593
3,462.7
3,468^
3,498.1
3,477.6
3,4933
3,496.7
3,518.1
Liabilities
73 Deposits
74
75 Nontransaction
76
Large time
77
Other
78 Borrowings
79 From banks in the U.S
80 From nonbanks in the U.S
81 Net due to related foreign offices....
82 Other liabilities8
2,363.1
793.0
1,570.1
207.2
1,362.9
466.9
133.2
333.7
20.3
132.8
2,371.2
795.0
1,576.2
212.9
1,363.3
484.3
149.6
334.7
65.4
134.6
2,367.8
787.8
1,580.0
217.3
1,362.7
491.0
154.2
336.8
66.4
133.2
2,370.8
787.4
1,583.5
218.7
1,364.8
505.4
162.3
343.2
77.4
129.3
2,390.3
798.6
1,591.7
226.1
1,365.6
540.0
164.5
375.5
91.5
121.0
2,395.7
794.7
1,601.0
235.2
1,365.9
539.1
161.4
377.7
87.9
122.1
2,393.9
784.9
1,609.1
239.8
1,369.3
536.7
164.3
372.5
85.2
132.1
2,396.0
780.9
1,615.2
240.9
1,374.3
560.0
162.5
397.6
82.3
142.9
2391.6
782.1
1,609.4
238.5
1,370.9
541.6
159.0
382.6
77.4
139.8
2,393.7
781.2
1,612.5
240.2
1,372.3
551.3
163.3
388.0
78.5
143.2
2,393.6
778.9
1,614.7
241.4
1,373.3
563.6
158.5
405.0
81.3
145.0
2,402.2
784.6
1,617.5
241.5
1,376.0
579.1
170.5
408.6
90.7
143.0
83 Total liabilities
24W3.2
3,055.5
3,0584
3,083.0
3,1428
3,144.8
3,148.0
3,181.2
3,1504
3,166.7
3,183.5
3,215.0
296.0
320.9
332.7
327.8
316.5
317.9
320.5
316.8
327.2
326.5
313.2
303.1
57
58
59
60
61
6?
63
64
65
66
67
68
69
70
71
84 Residual (assets less liabilities)9
Not seasonally adjusted
Assets
85 Bank credit
86 Securities in bank credit
87
U.S. government securities
88
Other securities
89 Loans and leases in bank credit2
90
Commercial and industrial
91
Real estate
97
Revolving home equity
93
Other
94
Consumer
95
Security3
96
Other
97
98
99 Other assets6
2,857.7
891.6
700.3
191.2
1,966.1
452.0
900.8
72.8
828.0
405.4
52.0
155.9
125.5
181.2
170.8
2,942.0
873.9
673.9
200.0
2,068.1
472.5
947.0
75.8
871.3
441.7
46.0
160.9
137.9
184.8
169.6
2,958.1
871.6
670.4
201.2
2,086.5
476.9
954.9
76.1
878.8
446.0
47.2
161.5
150.3
188.0
169.0
2,973.6
862.3
665.9
196.4
2,111.3
480.0
965.1
76.2
888.9
457.2
45.9
163.1
159.7
195.4
170.1
2,988.4
856.8
660.9
195.9
2,131.6
488.5
973.0
76.6
896.4
462.2
44.9
163.0
160.4
198.0
171.0
2,996.0
847.4
653.6
193.8
2,148.5
498.5
978.8
76.6
902.2
460.7
47.8
162.7
158.1
187.8
171.0
3,018.5
858.4
650.4
208.0
2,160.1
505.0
984.0
76.5
907.4
461.6
46.6
163.0
155.8
176.0
165.2
3,055.2
868.3
648.5
219.8
2,186.9
514.6
993.4
77.5
915.9
467.8
46.8
164.3
157.0
178.4
163.2
3,043.9
868.0
651.4
216.6
2,175.8
510.2
989.0
76.7
912.2
465.4
44.8
166.6
159.6
173.8
165.6
3,047.6
870.6
650.3
220.3
2,177.0
511.3
991.1
77.0
914.1
466.0
44.8
163.8
162.5
178.1
163.1
3,063.0
872.6
649.3
223.3
2,190.4
515.2
993.7
77.6
916.2
468.2
49.4
163.9
153.9
179.7
163.2
3,056.4
864.5
645.5
219.0
2,192.0
517.2
995.9
77.9
918.0
469.2
46.4
163.2
153.9
180.1
161.1
100 Total assets7
3,2783
3,377.8
3,408.9
3,442.3
3,461.4
3,4563
3,458.9
3,497.1
3,4864
3,494.7
3,503.1
3494.9
Liabilities
101
10?
103
104
105
Other
106 Borrowings
107 From banks in the U.S
108 From nonbanks in the U.S
109 Net due to related foreign offices . . . .
110 Other liabilities8
2,367.7
798.6
1,569.1
206.6
1,362.5
454.6
132.2
322.5
21.9
129.9
2,370.4
792.0
1,578.4
213.8
1,364.7
492.1
148.3
343.8
63.2
137.1
2,384.4
802.0
1,582.5
217.5
1,365.0
504.5
158.0
346.6
64.9
137.7
2,403.7
822.8
1,580.9
217.1
1,363.8
516.7
169.8
347.0
74.3
130.5
2,394.6
808.8
1,585.8
224.0
1,361.9
533.9
168.7
365.2
90.2
122.8
2,385.7
785.8
1,599.9
235.4
1,364.5
537.6
163.1
374.6
88.7
121.8
2,382.3
773.1
1,609.1
238.6
1,370.5
527.7
160.6
367.1
90.1
1325
2,400.2
786.1
1,614.1
240.2
1,373.9
542.6
160.0
382.6
84.6
139.8
2,414.4
798.7
1,615.7
237.4
1,378.4
525.9
160.6
365.3
77.2
139.0
2,413.6
795.2
1,618.4
239.9
1,378.6
532.2
161.7
370.5
78.6
140.3
2,403.6
792.8
1,610.7
240.4
1,370.4
549.6
156.9
392.7
80.1
140.5
2,372.4
763.9
1,608.5
240.8
1,367.7
554.4
162.1
392.4
99.4
139.1
111 Total liabilities
2^74.1
3,0628
3,091.6
3,1252
3,141.5
3,133.8
3,1325
3,1673
3,156^
3,164.7
3,173.7
3,1654
304.2
315.0
317.3
317.1
319.9
322.5
326.4
329.9
329.9
330.0
329.4
329.5
112 Residual (assets less liabilities)9
Footnotes appear on following page.
A20
DomesticNonfinancialStatistics • July 1995
NOTES TO TABLE 1.26
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of
condition (large domestic); other domestically chartered commercial banks (small domestic); branches and agencies of foreign banks; New York State investment companies, and
Edge Act and agreement corporations (foreign-related institutions). Excludes international banking facilities. Data are Wednesday values, or pro rata averages of Wednesday
values. Large domestic banks constitute a universe; data for small domestic banks and
foreign-related institutions are estimates based on weekly samples and on quarter-end
condition reports. Data are adjusted for breaks caused by reclassifications of assets and
liabilities.
2. Excludes federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.
3. Consists of reserve repurchase agreements with broker-dealers and loans to purchase and carry securities.
4. Consists of federal funds sold to, reverse repurchase agreements with, and loans to
commercial banks in the United States.
5. Includes vault cash, cash items in process of collection, demand balances due from
depository institutions in the United States, balances due from Federal Reserve Banks,
and other cash assets.
6. Excludes the due-from position with related foreign offices, which is included in
lines 25, 53, 81, and 109.
7. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
8. Excludes the due-to position with related foreign offices, which is included in lines
25, 53, 81, and 109.
9. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis.
Weekly Reporting Commercial Banks
A21
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1995
Account
Apr. 12
Apr. 19
Apr. 26
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5
129,932
295,502
23,281
272,221r
95,123
106,190
297,838
25,365
272,473r
95,47 l
125,045
300,048
26,306
273,741r
94,625
104,838
295,306
22,061
273,245r
93,350
106,016
291,970
19,201
272,769r
93,100
106,557
298,336
23,809
274,527
93,384
110,336
297,192
22,272
274,920
92,714
112,903
295,545
22,663
272,882
93,228
114,476
292,260
21,814
270,445
93,568
45,866
72,397r
61,406
125,987
1,462
60,285
20,402
5,606
14,796
39,884
64,240
47,505
71,752
61,886
131,935
1,323
60,585
20,287
5,586
14,702
40,298
70,027
47,613
72,942
61,650
134,997
1,341
60,920
20,262
5,553
14,709
40,658
72,735
103,143
71,282
24,706
7,155
1,187,229
333,299'
1,822
331,477'
329,211'
2,266
470,201'
46,644'
423,557'
238,412
55,606
36,156
2,924'
16,526'
14,668
6,241'
11,124
1,017
23,332'
33,327
1,678
34,408
1,151,143
131,797
1,910,056
98,015
65,849
25,906
6,260
1,196,249
336,853
1,834
335,019
332,657
2,362
471,696
46,750
424,946
239,516
57,221
37,501
2,785
16,934
13,314
6,222
11,243
906
26,085
33,192
1,630
34,311
1,160,307
136,604
1,931,755
103,134
71,025
25,685
6,424
1,195,815
337,405
1,969
335,436
333,156
2,280
473,161
46,902
426,259
239,763
56,937
37,172
3,094
16,671
13,628
6,247
11,205
927
23,244
33,298
1,648
34,354
1,159,813
135,691
1,941,162
46,996
71,699
60,959
138,909
1,348
60,830
20,264
5,542
14,722
40,566
76,731
99,747
66,270
27,676
5,801
1,203,945
340,365
2,103
338,262
335,858
2,404
474,304
47,281
427,023
240,097
57,356
37,386
3,291
16,679
16,397
6,329
11,082
886
23,760
33,370
1,644
34,406
1,167,895
136,759
1,951,758
46,383
69,991
60,504
134,169
1,469
60,538
20,145
5,549
14,595
40,393
72,163
106,922
74,419
26,035
6,467
1,203,507
341,604
2,015
339,590
337,155
2,435
475,251
47,449
427,802
239,706
56,160
36,390
3,191
16,579
15,551
6,278
11,039
1,020
23,429
33,469
1,648
34,276
1,167,583
131,783
1,947,193
ASSETS
1 Cash and balances due from depository institutions
?, U.S. Treasury and government securities
4
5
Investment account
Mortgage-backed securities1
All others, by maturity
One year or less
One year through five years
More than five years
6
7
8
9
in Trading account
u
Investment account
12
State and local government, by maturity
n
One year or less
More than one year
14
Other bonds, corporate stocks, and securities
15
16 Other trading account assets
17 Federal funds sold2
18 To commercial banks in the United States
19 To nonbank brokers and dealers in securities
?n To others3
71 Other loans and leases, gross
Commercial and industrial
?.?.
Bankers acceptances and commercial paper
74
All other
75
U.S. addressees
26
Non-U.S. addressees
77
78
Revolving, home equity
79
All other
30 To individuals for personal expenditures
31 To depository andfinancialinstitutions
3?
Commercial banks in the United States
33
Banks in foreign countries
34
Nonbank depository and otherfinancialinstitutions
35 For purchasing and carrying securities
36 Tofinanceagricultural production
37 To states and political subdivisions
38 To foreign governments and official institutions
39 All other loans4
40 Lease-financing receivables
41 LESS: Unearned income
47
Loan and lease reserve
43 Other loans and leases, net
44 All other assets
45 Total assets6
Footnotes appear on the following page.
46,023
69,015
62,060'
112,120
1,858
60,720
20,311
5,475
14,836
40,408
49,543
119,155
79,993
30,870
8,292
1,184,836
332,966
2,109
330,857r
328,649r
2,207
468,204
46,701
421,502
237,384
54,353
34,685r
3,233
16,434r
15,547
6,185
11,204
1,091
25,147
32,756
1,670
34,409
1,148,758
140,559
1,946,025
46,598
46,401
45,796
72,127
68,507r
71,705r
62,094
61,615
6\,n<f
122,865
121,795
123,381
1,561
1,812
1,721
60,397
60,525
60,317
20,307
20,326
20,269
5,553
5,557
5,505
14,754
14,764
14,769
40,090
40,199
40,048
60,907
59,458
61,342
104,567
115,754
103,465
69,309
68,265
81,113
27,724
27,987
27,341
6,432
8,315
7,299
1,180,286 1,181,666 1,180,668r
333,440
331,151
333,523
2,136
1,802
1,945
331,638r
329,015
331,578r
326,844'
329,361r
329,391r
2,171r
2,187
2,217
468,992
468,119
468,515
46,630
46,647
46,652
422,362
421,471
421,863
237,066
236,696
237,485
55,167
52,507
54,157
34,373r
33,395
35,311r
3,202r
2,822'
3,313r
16,654
16,471
16,290r
14,315r
14,506
14,469
6,243
6,155
6,194
11,101
11,121
11,050
1,187
864
940
22,673
22,965
23,189
33,024
32,870
32,938
1,697
1,678
1,673
34,541
34,513
34,583
1,144,068 1,145,409 1,144,458
135,217
134,906
136,293
1,910,752 1,944,853 1,905,836
A22
DomesticNonfinancialStatistics • July 1995
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1995
Account
Mar.
1
Mar.
8
Mar.
15
Mar.
22
Mar.
29
Apr.
5
Apr.
12
Apr.
19
Apr.
26
LIABILITIES
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
Deposits
Demand deposits7
Individuals, partnerships, and corporations
Other holders
States and political subdivisions
U.S. government
Depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and officers' checks
Transaction balances other than demand deposits4
Nontransaction balances
Individuals, partnerships, and corporations
Other holders
States and political subdivisions
U.S. government
Depository institutions in the United States
Foreign governments, official institutions, and banks ..
1,175,713
310,264
259,089
51,175
9,226
3,123
23,734
5,317
899
8,877
128,363
737,086
713,612
23,474
19,151
1,873
2,095
355
64
65
66
67
68
Liabilities for borrowed money5
Borrowings from Federal Reserve Banks
Treasury tax and loan notes
Other liabilities for borrowed money6
Other liabilities (including subordinated notes and debentures)...
390,935
0
17,069
373,866
200,672
373,801 R
0
6,964
366,837 R
206,465'
381,686
0
5,041 R
376,645
211,855
69
Total liabilities
1,767,320
1,731,282
70
Residual (total assets less total liabilities)7
178,706
179,470
1,596,936
109,224 R
572
295
277
23,784
81,260
1,600,911
109,152 R
570
295
275
23,601
81,929
MEMO
71
72
73
74
75
76
77
8
Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates9
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents10
Net owed to related institutions abroad
1,151,016
284,158
241,524
42,635
7,412
1,720
18,840
5,096
674
8,893
127,383
739,474
715,445
24,029
19,868
1,804
1,949
409
1. Includes certificates of participation, issued or guaranteed by agencies of the U.S.
government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal (NOWs) and automatic transfer service
(ATS) accounts, and telephone and preauthorized transfers of savings deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
L,136,903 R
279,339
236,362 R
42,978 R
7,465
L,782R
17,2^
5,362
756
10,403
123,798
733,765 R
710,398 R
23,367
19,436
1,852
1,661
418
1,164,474
295,589
251,574
44,015
8,112
2,270
19,337
4,565
646
9,086
131,289
737,596
714,229
23,367
19,443
2,155
1,360
409
1,165,030
294,713
249,668
45,045
7,973
2,482
18,805
4,797
795
10,194
130,526
739,791
716,347
23,444
19,554
2,155
1,333
402
1,161,198
294,013
246,286
47,727
8,243
4,670
19,496
4,784
744
9,790
132,109
735,076
711,875
23,202
19,507
2,080
1,309
305
1,141,058
285,060
237,513
47,547
8,612
3,453
18,778
5,688
775
10,241
123,819
732,179
708,186
23,993
19,921
2,136
1,625
311
379,856 R
0
7,468 R
372,388 R
21 L,723R
379,534 R
0
4,768 R
374,766 R
215,243 R
381,330
0
6,904
374,426
206,904
386,962
0
3,840
383,122
209,701
398,540
0
23,739
374,800
211,644
399,340
0
18,830
380,510
226,282
1,766,557
1,727,275
1,731,679
1,752,708
1,761,693
1,771,382
1,766,680
178,296
178,562
178,377
179,047
179,470
180,376
180,513
1,605,362
108,764
568
295
273
23,529
87,174
1,599,599
107,267
567
295
272
23,444
87,535
1,600,891
105,678
566
295
271
23,593
88,935
1,621,185
105,209
551
294
257
24,007
73,383
1,622,941
107,121
551
294
257
24,213
74,935
1,634,490
107,648
549
294
255
24,496
76,401
1,626,049
107,312
560
294
265
24,679
95,124
1,173,017
306,997
253,698
53,299
8,485
8,236
21,827
5,278
748
8,726
127,194
738,826
715,269
23,557
19,477
1,869
1,801
410
1,135,696
275,934
232,871
43,062
8,893
1,796
16,744
5,394
645
9,590
124,445
735,317
711,778
23,539
19,477
1,860
1,784
418
8. Excludes loans to and federal funds transactions with commercial banks in the
United States.
9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank affiliates
of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank
subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly reporting
banks to nonbank U.S. residents. Consists mainly of commercial and industrial loans, but
includes an unknown amount of credit extended to other than nonfinancial businesses.
Weekly Reporting Commercial Banks
A23
1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Assets and Liabilities
Millions of dollars, Wednesday figures
1995
Account
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
ASSETS
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold1
To commercial banks in the United States
6 To others2
7 Other loans and leases, gross
8 Commercial and industrial
9
Bankers acceptances and commercial paper .
in
All other
U.S. addressees
ii
i?
Non-U.S. addressees
13 Loans secured by real estate
14 Loans to depository and financial
institutions
Commercial banks in the United States
15
Banks in foreign countries
16
Nonbankfinancialinstitutions
17
18 For purchasing and carrying securities
19 To foreign governments and ofiScial
institutions
?n All other
21 Other assets (claims on nonrelated parties)
15,327
15,820
15,325
16,251
15,347
15,749
16,344
16,931
40,303
14,151
25,507
6,087
19,419
171,500
110,112
3,430
106,682
102,298
4,384
25,048
40,984
14,059
28,188
6,813
21,375
171,997
110,781
3,269
107,511
102,780
4,731
25,039
39,989
13,972
25,741
4,722
21,020
172,612
110,884
3,250
107,634
102,915
4,720
25,057
40,893
14,152
29,425
7,638
21,787
170,847
110,432
3,229
107,203
102,629
4,575
24,275
41,343
14,448
25,310
4,511
20,799
169,262
109,646
3,101
106,546
101,905
4,641
23,978
40,286
14,667
25,125
3,223
21,902
168,889
109,775
3,371
106,404
101,752
4,652
24,004
41,367
14,214
30,719
5,582
25,136
170,246
109,935
3,171
106,764
102,057
4,707
23,860
41,621
13,526
33,538
7,614
25,924
170,638
110,054
3,080
106,975
102,119
4,856
23,845
26,041
4,994
2,212
18,835
4,636
27,444
4,820
2,943
19,681
4,190
27,665
4,975
2,214
20,476
4,157
27,734
5,206
2,296
20,232
4,700
26,964
5,332
2,104
19,529
4,511
27,385
5,904
2,113
19,368
3,672
26,850
5,421
1,976
19,453
3,673
27,649
5,096
2,281
20,273
4,333
28,158
5,092
2,321
20,745
4,149
446
3,912
51,692
576
4,130
55,220
412
3,943
51,619
416
3,821
51,287
413
4,252
52,828
409
4,172
59,555
393
4,193
59,905
390
4,079
60,926
378
4,054
61,854
345,435
22 Total assets3
14,847
42,243
14,269
26,442
5,702
20,740
171,226
111,151
3,439
107,712
103,439
4,274
25,041
344,795
345,977
343,514
347,116
350,753
349,152
360,400
366,163
95,007
3,870
3,166
705
91,137
62,633
28,504
97,075
3,717
2,937
780
93,357
65,059
28,298
98,251
3,962
3,143
819
94,290
65,202
29,088
98,592
3,815
3,077
738
94,777
65,462
29,316
100,387
4,516
3,325
1,191
95,872
65,335
30,537
97,136
3,944
3,124
820
93,193
63,386
29,807
97,250
3,959
2,843
1,116
93,291
64,273
29,018
100,133
3,643
2,737
906
96,490
64,993
31,497
103,948
3,837
2,737
1,100
100,111
67,915
32,195
83,958
47,280
8,878
38,402
36,678
5,828
30,850
48,454
79,963
40,792
6,093
34,699
39,171
5,756
33,415
52,166
87,176
48,299
10,957
37,341
38,878
5,769
33,108
49,049
83,005
43,406
7,286
36,120
39,599
5,930
33,668
48,052
81,277
40,973
7,325
33,648
40,304
6,028
34,276
48,484
82,352
43,191
9,387
33,804
39,161
6,473
32,689
55,868
83,544
45,198
7,791
37,407
38,345
6,281
32,064
55,143
86,578
47,317
8,852
38,465
39,261
6,235
33,026
57,359
86,186
46,431
7,731
38,700
39,755
5,860
33,895
57,471
345,435
344,795
345,977
343,514
347,116
350,753
349,152
360,400
366,163
243,485
93,300
240,553
92,804
243,440
88,190
242,386
89,276
242,348
94,248
239,948
89,909
240,323
88,683
245,868
89,746
246,616
90,503
LIABILITIES
73 Deposits or credit balances owed to other
than directly related institutions
74 Demand deposits4
25 Individuals, partnerships, and corporations . . . .
?6 Other
?7 Nontransaction accounts
28 Individuals, partnerships, and corporations . . . .
79 Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased5
3?
From commercial banks in the United States ..
33
From others
34 Other liabilities for borrowed money
35 To commercial banks in the United States
36 To others
37 Other liabilities to nonrelated parties
38 Total liabilities6
MEMO
39 Total loans (gross) and securities, adjusted
40 Net owed to related institutions abroad
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. For US. branches and agencies of foreign banks having a net "due from" position,
includes net due from related institutions abroad.
4. Includes other transaction deposits.
5. Includes securities sold under agreements to repurchase.
6. For U.S. branches and agencies of foreign banks having a net "due to" position,
includes net owed to related institutions abroad.
7. Excludes loans to and federal funds transactions with commercial banks in the
United States.
A24
DomesticNonfinancialStatistics • July 1995
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December
1994
1995
Item
1990
1991
1992
1994
1993
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
Financial companies'
Dealer-placed paper2
Total
Bank-related (not seasonally adjusted)3 . . .
Directly placed paper4
Total
Bank-related (not seasonally adjusted) 3 ...
6 Nonfinancial companies5
562,656
528,832
545,619
555,075
595,382
588,271
580,510
595,382
612,554
619,150
632,842
214,706
n.a.
212,999
n.a.
226,456
n.a.
218,947
n.a.
223,038
n.a.
222,019
n.a.
215,733
n.a.
223,038
n.a.
231,318
n.a.
232,231
n.a.
243,467
n.a.
200,036
n.a.
182,463
n.a.
171,605
n.a.
180,389
n.a.
207,701
n.a.
206,264
n.a.
203,584
n.a.
207,701
n.a.
215,423
n.a.
218,570
n.a.
218,269
n.a.
147,914
133,370
147,558
155,739
164,643
159,988
161,193
164,643
165,813
168,349
171,106
n.a.
n.a.
n.a.
Bankers dollar acceptances (not seasonally adjusted)6
7 Total
8
9
10
11
12
By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks7
Foreign correspondents
Others
By basis
13 Imports into United States
14 Exports from United States
15 Allother
54,771
43,770
38,194
32,348
29,835
30,413
29,760
29,835
9,017
7,930
1,087
11,017
9,347
1,670
10,555
9,097
1,458
12,421
10,707
1,714
11,783
10,462
1,321
11,061
9,931
1,130
11,689
10,548
1,142
11,783
10,462
1,321
918
44,836
1,739
31,014
1,276
26,364
725
19,202
410
17,642
332
19,020
234
17,836
410
17,642
13,095
12,703
28,973
12,843
10,351
20,577
12,209
8,096
17,890
10,217
7,293
14,838
10,062
6,355
13,417
10,674
6,754
12,986
10,272
6,688
12,800
10,062
6,355
13,417
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 allfinancial-companypaper sold by dealers in the open market.
3. Series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with investors.
5. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation,
and services.
6. Data on bankers dollar acceptances are gathered from approximately 100 institutions. The reporting group is revised every January. Beginning January 1995, data for
Bankers dollar acceptances will be reported annually in September.
7. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances
for its own account.
Financial Markets
A25
1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1
Percent per year
Date of change
Rate
1992—July
2
6.00
1994—Mar.
Apr.
May
Aug.
Nov.
24
19
17
16
15
6.25
6.75
7.25
7.75
8.50
1995—Feb. 1
9.00
Period
Average
rate
1992
1993
1994
6.25
6.00
7.15
1992—Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
6.50
6.50
6.50
6.50
6.50
6.50
6.02
6.00
6.00
6.00
6.00
6.00
Period
1993—
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov.
Dec
Average
rate
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
6.00
Period
1994—Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov.
Dec
6.00
6.00
6.06
6.45
6.99
7.25
7.25
7.51
7.75
7.75
8.15
8.50
1995—Jan
Feb
Mar.
8.50
9.00
9.00
9.00
9.00
May
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
Average
rate
recent Call Report. Data in this table also appear in the Board's H.15 (519) weekly and
G.13 (415) monthly statistical releases. For ordering address, see inside front cover,
A26
DomesticNonfinancialStatistics • July 1995
1.35 INTEREST RATES Money and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
1995
Item
1992
1993
1995, week ending
1994
Jan.
Feb.
Mar.
Apr.
Mar. 31
Apr. 7
Apr. 14
Apr. 21
Apr. 28
MONEY MARKET INSTRUMENTS
1 Federal funds1'2'3
2 Discount window borrowing2,4
3.52
3.25
3.02
3.00
4.21
3.60
5.53
4.75
5.92
5.25
5.98
5.25
6.05
5.25
6.06
5.25
6.20
5.25
5.98
5.25
6.07
5.25
5.99
5.25
56
3
4
5
Commercial paper*' '
1-month
3-month
6-month
3.71
3.75
3.80
3.17
3.22
3.30
4.43
4.66
4.93
5.86
6.22
6.63
6.05
6.15
6.38
6.07
6.15
6.30
6.06
6.12
6.19
6.08
6.15
6.25
6.08
6.15
6.26
6.08
6.13
6.23
6.05
6.09
6.14
6.05
6.09
6.14
6
7
8
Finance paper, directly placed3'5,7
1-month
3-month
6-month
3.62
3.65
3.63
3.12
3.16
3.15
4.33
4.53
4.56
5.76
6.10
6.25
5.95
6.04
6.10
5.95
6.03
6.04
5.96
6.01
6.01
5.96
6.02
6.03
5.99
6.05
6.06
5.96
6.02
6.02
5.95
6.00
5.98
5.95
5.99
5.97
9
10
Bankers acceptances3'5'8
3-month
6-month
3.62
3.67
3.13
3.21
4.56
4.83
6.12
6.45
6.05
6.22
6.04
6.14
6.00
6.06
6.05
6.13
6.03
6.11
6.00
6.08
5.99
6.03
5.99
6.03
11
12
13
Certificates of deposit, secondary market3,9
1-month
3-month
6-month
3.64
3.68
3.76
3.11
3.17
3.28
4.38
4.63
4.96
5.84
6.24
6.71
6.01
6.16
6.44
6.02
6.15
6.34
6.01
6.11
6.27
6.04
6.15
6.34
6.03
6.15
6.33
6.01
6.12
6.29
6.01
6.10
6.23
5.99
6.09
6.22
3.70
3.18
4.63
6.23
6.14
6.15
6.13
6.16
6.18
6.14
6.11
6.09
3.43
3.54
3.71
3.00
3.12
3.29
4.25
4.64
5.02
5.71
6.21
6.59
5.77
6.03
6.28
5.73
5.89
6.03
5.65
5.77
5.88
5.69
5.81
5.98
5.70
5.84
5.99
5.63
5.78
5.90
5.61
5.71
5.80
5.67
5.76
5.85
3.45
3.57
3.75
3.02
3.14
3.33
4.29
4.66
4.98
5.81
6.31
6.86
5.80
6.10
6.59
5.73
5.91
6.16
5.67
5.80
6.02
5.64
5.80
n.a.
5.76
5.90
6.02
5.70
5.84
n.a.
5.56
5.69
n.a.
5.66
5.75
n.a.
3.89
4.77
5.30
6.19
6.63
7.01
n.a.
7.67
3.43
4.05
4.44
5.14
5.54
5.87
6.29
6.59
5.32
5.94
6.27
6.69
6.91
7.09
7.49
7.37
7.05
7.51
7.66
7.76
7.79
7.78
7.97
7.85
6.70
7.11
7.25
7.37
7.44
7.47
7.73
7.61
6.43
6.78
6.89
7.05
7.14
7.20
7.57
7.45
6.27
6.57
6.68
6.86
6.95
7.06
7.45
7.36
6.38
6.73
6.84
7.01
7.11
7.15
7.51
7.40
6.38
6.69
6.80
6.96
7.04
7.12
7.48
7.38
6.28
6.61
6.72
6.89
6.98
7.08
7.46
7.37
6.17
6.46
6.58
6.78
6.90
7.03
7.46
7.37
6.24
6.52
6.64
6.81
6.90
7.03
7.41
7.33
7.52
6.45
7.41
7.93
7.69
7.52
7.41
7.48
7.45
7.42
7.41
7.37
6.09
6.48
6.44
5.38
5.83
5.60
5.77
6.17
6.18
6.55
7.05
6.53
6.05
6.61
6.22
5.91r
6.50r
6.10
5.74
6.01
6.02
5.90
6.00
6.07
5.73
6.00
6.03
5.75
6.02
6.01
5.68
5.95
5.96
5.80
6.08
6.06
8.55
7.54
8.26
8.71
8.50
8.35
8.25
8.30
8.27
8.26
8.24
8.22
8.14
8.46
8.62
8.98
8.52
7.22
7.40
7.58
7.93
7.46
7.97
8.15
8.28
8.63
8.29
8.46
8.60
8.70
9.08
8.75
8.26
8.39
8.48
8.85
8.55
8.12
8.24
8.33
8.70
8.40
8.03
8.12
8.23
8.60
8.31
8.08
8.19
8.28
8.65
8.40
8.05
8.15
8.25
8.62
8.34
8.04
8.13
8.25
8.62
8.29
8.02
8.12
8.23
8.60
8.29
8.00
8.09
8.21
8.57
8.29
2.99
2.78
2.82
2.87
2.81
2.76
2.68
2.69
2.68
2.67
2.69
2.65
14 Eurodollar deposits, 3-month3'10
18
19
20
U.S. Treasury bills
Secondary market3'5
3-month
6-month
1-year
Auction average3'5'"
3-month
6-month
1-year
21
22
23
24
25
26
27
28
Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
15
16
17
U.S. TREASURY NOTES AND BONDS
Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series13
30
31 Baa
32 Bond Buyer series14
CORPORATE BONDS
33 Seasoned issues, all industries15
Rating group
34
35
36
37
38
Aa
A
Baa
A-rated,recentlyoffered utility bonds16
MEMO
Dividend-price ratio17
39 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on trades
through New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year for bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading dealers
for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money center
banks.
9. An average of dealer offering rates on nationally traded certificates of deposit.
10. Bid rates for Eurodollar deposits at 11:00 a.m. London time. Data are for indication
purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source: U.S.
Department of the Treasury.
13. General obligation bonds based on Thursday figures; Moody's Investors Service.
14. State and local government general obligation bonds maturing in twenty years are
used in compiling this index. The twenty-bond index has a rating roughly equivalent to
Moodys' A1 rating. Based on Thursday figures.
15. Daily figures from Moody's Investors Service. Based on yields to maturity on
selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield on
recently offered, A-rated utility bonds with a thirty-year maturity and five years of call
protection. Weekly data are based on Friday quotations.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks
in the price index.
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and
G.13 (415) monthly statistical releases. For ordering address, see inside front cover.
Financial Markets
All
1.36 STOCK MARKET Selected Statistics
1994
Indicator
1992
1993
1995
1994
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2 Industrial
3 Transportation
4 Utility
5 Finance
229.00
284.26
201.02
99.48
179.29
249.71
300.10
242.68
114.55
216.55
254.16
315.32
247.17
104.96
209.75
256.08
316.56
244.67
105.61
214.77
257.61
322.19
239.10
102.30
211.90
255.22
321.53
230.71
101.67
203.33
252.48
319.33
227.44
100.07
198.38
248.65
313.92
218.93
100.01
195.25
253.56
319.93
230.25
100.58
201.05
261.86
328.98
237.29
103.87
211.76
266.81
337.96
252.37
102.08
213.29
274.38
347.69
254.36
104.70
219.38
6 Standard & Poor's Corporation
(1941-43 = 10)1
415.75
451.63
460.42
464.24
466.96
463.81
461.01
455.19
465.25
481.92
493.20
507.91
7 American Stock Exchange
(Aug. 31, 1973 = 50)2
391.28
438.77
449.49
444.89
456.31
456.25
445.16
427.39
436.09
446.37
456.06
471.54
202,558
14,171
263,374
18,188
290,652
17,951
277,877
15,874
292,356
18,785
301,327
20,731
297,001
18,465
302,049
18,745
326,652
18,829
333,020
18,424
338,733
17,905
331,184
19,404
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-dealerc
43,990
60,310
61,160
63,070
61,630
62,150
61,000
61,160
64,380
59,800
60,270
62,520
Free credit balances at brokers4
11 Margin accounts5
12 Cash accounts
8,970
22,510
12,360
27,715
14,095
28,870
12,090
24,400
12,415
25,230
12,875
24,180
13,635
25,625
14,095
28,870
13,225
26,440
12,380
25,860
12,745
26,680
12,440
26,670
Margin requirements (percent of market value and eflFective date)6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. In July 1976 a financial group, composed of banks and insurance companies, was
added to the group of stocks on which the index is based. The index is now based on 400
industrial stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility
(formerly 60), and 40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate
reporting of data for margin stocks, convertible bonds, and subscription issues was
discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.
6. Margin requirements, stated in regulations adopted by the Board of Governors
pursuant to the Securities Exchange Act of 1934, limit the amount of credit that can be
used to purchase and carry "margin securities" (as defined in the regulations) when such
credit is collateralized by securities. Margin requirements on securities other than options
are the difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15, 1934;
Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968; and
Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T
the initial margin required for writing options on securities, setting it at 30 percent of the
current market value of the stock underlying the option. On Sept. 30, 1985, the Board
changed the required initial margin, allowing it to be the same as the option maintenance
margin required by the appropriate exchange or self-regulatory organization; such maintenance margin rules must be approved by the Securities and Exchange Commission.
Effective Jan. 31, 1986, the SEC approved new maintenance margin rules, permitting
margins to be the price of the option plus 15 percent of the market value of the stock
underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20 percent of
the market value of the stock underlying the option (or 15 percent in the case of
stock-index options).
A28
DomesticNonfinancialStatistics • July 1995
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1994
1992
1993
1995
1994
Nov.
US. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus or deficit ( - ) , total
8 On-budget
9 Off-budget
Source offinancing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-))
12 Other 2
Dec.
Jan.
Feb.
Mar.
Apr.
1,090,453
788,027
302,426
1,380,856
1,128,518
252,339
-290,403
-340,490
50,087
1,153,226
841,292
311,934
1,408,532
1,141,945
266,587
-255,306
-300,653
45,347
1,257,187
922,161
335,026
1,461,067
1,460,557
279,372
-203,370
-259,024
55,654
87,673
62,083
25,590
124,915
99,464
25,452
-37,242
-37,381
138
130,810
103,859
26,951
134,941
123,643
11,297
-4,130
-19,783
15,653
131,801
101,036
30,765
115,172
89,890
25,282
16,628
11,146
5,483
82,544
54,405
28,139
120,536
94,058
26,478
-37,992
-39,653
1,661
92,532
61,971
30,561
142,458
116,508
25,951
-49,927
-54,537
4,610
165,392
126,170
39,222
115,673
90,628
25,045
49,720
35,542
14,178
310,918
-17,305
-3,210
248,594
6,283
429
184,998
16,564
1,808
40,528
9,366
-12,652
-13,316
476
16,970
13,337
-23,264
-6,701
38,972
14,000
-14,980
13,645
17,747
18,535
-27,638
-19,972
-2,110
58,789
24,586
34,203
52,506
17,289
35,217
35,942
6,848
29,094
27,056
5,348
21,709
26,580
7,161
19,419
49,844
13,964
35,880
35,844
6,890
28,954
18,097
4,543
13,554
38,069
8,241
29,828
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 US. currency valuation adjustment; net gain or loss for IMF
loan-valuation adjustment; and profit on sale of gold.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts
and Outlays of the LIS. Government, and U.S. Office of Management and Budget, Budget
of the US Government.
Federal Finance A3 3
1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1
Millions of dollars
Calendar year
Fiscal year
1993
1995
1994
1993
Source or type
1994
HI
H2
HI
H2
Feb.
Mar.
Apr.
593,212
582,038
652,236
625,557
82,544
92,532
165,392
33,863
40,643
4
1,061
7,845
26,846
44,561
18
4,284
22,016
76,441
32,447
16
64,937
20,959
RECEIPTS
1,153,226
1 All sources
2 Individual income taxes, net
3 Withheld
4 Presidential Election Campaign Fund
5 Nonwithheld
6 Refunds
Corporation income taxes
7 Gross receipts
8 Refunds
9 Social insurance taxes and contributions, n e t . . .
10 Employment taxes and contributions
11
Self-employment taxes and contributions3 .
12 Unemployment insurance
13 Other net receipts4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
1,257,453
509,680
430,211
28
154,989
75,546
543,055
459,699
70
160,364
77,077
255,556
209,517
25
113,510
67,468
262,073
228,423
2
41,768
8,115
275,053
225,387
63
118,245
68,642
273,474
240,062
10
42,031
9,207
131,548
14,027
428,300
396,939
20,604
26,556
4,805
154,205
13,820
461,475
428,810
24,433
28,004
4,661
69,044
7,198
227,177
208,776
16,270
16,074
2,326
68,266
6,514
206,176
192,749
4,335
11,010
2,417
80,536
6,933
248,301
228,714
20,762
17,301
2,284
78,392
7,331
220,141
206,613
4,135
11,177
2,349
3,483
1,423
38,653
35,667
1,718
2,630
357
17,238
2,375
39,379
38,646
1,862
320
413
25,779
2,297
53,839
50,423
12,640
3,061
354
48,057
18,802
12,577
18,273
55,225
20,099
15,225
22,041
23,398
8,860
6,494
9,879
25,994
10,215
6,617
9,227
26,444
9,500
8,197
11,170
30,062
11,042
7,071
13,305
3,485
1,435
916
2,131
5,143
1,470
1,218
3,612
4,602
1,349
1,906
3,774
1,408,532
1,461,067
673,915
727,685
710,620
751,643r
OUTLAYS
120,536
142,458
115,673
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
291,086
16,826
17,030
4,319
20,239
20,443
281,451
17,249
17,602
5,398
20,902
15,131
140,535
6,565
7,996
2,462
8,592
11,872
146,672
10,186
8,880
1,663
11,221
7,516
133,841
5,800
8,502
2,036
9,934r
7,451
141,092
12,056
8,979
3,101r
\2,lXf
7,697
21,461
1,108
1,374
260
l,464r
1,264
26,533
425
1,628
569
1,951
1,195
17,753
95
1,298
196
1,587
623
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
-22,725
35,004
9,051
-4,851
36,835
11,877
-14,537
16,076
4,929
-1,490
19,570
4,288
-5,114
16,754
4,748r
-2,678
20,489r
6,688
-2,978
2,799
138r
-1,853
3,167
971
-1,092
2,560
896
50,012
44,730
24,080
26,753
19,258
25,887
4,078
4,678
3,647
8,918
39,461
20,583
10,625
43,209
24,708
9,281
39,463
18,963
3,023
1,099
1,170
18,002
-2,688
4,642
1,488
1,680
19,671
-2,829
1,850
1,359
299
20,017
-3,121
18 All types
29 Health
30 Social security and Medicare
31 Income security
99,415
435,137
207,257
106,495
464,314
213,972
49,882
195,933
107,870
52,958
223,735
102,380
53,195
232,777
109,080
54,123
236,819
101,743
32
33
34
35
36
35,720
14,955
13,009
198,811
-37,386
37,637
15,283
11,348
202,957
-37,772
16,385
7,482
5,205
99,635
-17,035
19,852
7,400
6,531
99,914
-20,344
16,686
7,718
5,084
99,844
-17,308
19,757
7,800
7,393
109,435
-20,065
Veterans benefits and services
Administration of justice
General government
Net interest6
Undistributed offsetting receipts
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year total for
outlays does not correspond to calendar year data because revisions from the Budget have
not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of Receipts
and Outlays of the US. Government-, and U.S. Office of Management and Budget, Budget
of the US. Government, Fiscal Year 1996.
A30
DomesticNonfinancialStatistics • July 1995
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1993
1994
1995
Item
Mar. 31
June 30
Sept. 30
Dec. 31
1 Federal debt outstanding
4,250
4,373
4,436
4,562
2 Public debt securities
3 Held by public
4 Held by agencies
4,231
3,188
1,043
4,352
3,252
1,100
4,412
3,295
1,117
4,536
3,382
1,154
20
20
0
21
21
0
25
25
0
27
27
0
4,140
4,256
4,316
4,139
0
4,256
0
4,315
0
4,145
4,370
4,900
4,900
5 Agency securities
6 Held by public
7 Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
4,602
4,673
4,721
4,800
4,864
4,576
3,434
1,142
4,646
3,443
1,203
4,693
3,480
1,213
n.a.
3,543
1,257
n.a.
n.a.
n.a.
26
26
0
28
27
0
29
29
0
27
27
0
n.a.
n.a.
n.a.
4,446
4,491
4,559
4,605
4,711
4,775
4,445
0
4,491
0
4,559
0
4,605
0
4,711
0
4,774
0
4,900
4,900
4,900
4,900
4,900
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 ofColumbia stadium bonds.
SOURCES. U.S. Department of the Treasury, Monthly Statement of the Public Debt of
the United States and Treasury Bulletin.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions of dollars, end of period
1994
Type and holder
1991
1992
1993
1995
1994
Q2
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable1
State and local government series
Foreign issues2
Government
Public
Savings bonds and notes
Government account series3
Non-interest-bearing
By holder4
15 U.S. Treasury and other federal agencies and trust funds
1
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20 Insurance companies
21 Other companies
22 State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25 Foreign and international5
26 Other miscellaneous investors6
Q4
Q
1
3,801.7
4,177.0
4,535.7
n.a.
4,645.8
4,692.8
n.a.
n.a.
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,532.3
2,989.5
714.6
1,764.0
495.9
1,542.9
149.5
43.5
43.5
.0
169.4
1,150.0
3.4
4,769.2
3,126.0
733.8
1,867.0
510.3
1,643.1
132.6
42.5
42.5
.0
177.8
1,259.8
31.0
4,642.5
3,051.0
698.5
1,835.7
501.8
1,591.5
143.4
42.2
42.2
.0
174.9
1,200.6
3.3
4,689.5
3,091.6
697.3
1,867.5
511.8
1,597.9
137.4
42.0
42.0
.0
176.4
1,211.7
3.2
4,769.2
3,126.0
733.8
1,867.0
510.3
1,643.1
132.6
42.5
42.5
.0
177.8
1,259.8
31.0
4,860.5
3,227.3
756.5
1,938.2
517.7
1,633.2
122.9
41.8
41.8
.0
178.8
1,259.2
3.6
968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3
1,047.8
302.5
2,839.9
294.0
79.4
197.5
192.5
534.8
1,153.5
334.2
3,047.7
316.0
80.5
216.0
213.0
564.0
1,257.1
374.1
1,203.0
357.7
3,088.2
330.7
59.5
244.1
226.3
520.1
1,213.1
355.2
3,127.8
325.0
59.9
250.0
229.3
521.0
1,257.1
374.1
138.1
125.8
491.8
651.3
157.3
131.9
549.7
702.4
171.9
137.9
623.3
725.0
177.1
144.0
632.5
754.0
178.6
148.6
653.8
761.6
1. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in foreign
currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust funds are
actual holdings; data for other groups are Treasury estimates.
Q3
n.a.
n.a.
a.
5. Consists of investments of foreign balances and international accounts in the United
States.
6. Includes savings and loan associations, nonprofit institutions, credit unions, mutual
savings banks, corporate pension trust funds, dealers and brokers, certain U.S. Treasury
deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder, Treasury Bulletin.
Federal Finance
A3 3
1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1
Millions of dollars, daily averages
1995
1995, week ending
Item
Jan.
Feb.
Mar.
61,020
58,060
Mar.
1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
OUTRIGHT TRANSACTIONS2
1
2
3
4
5
By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
9 U.S. Treasury
10 Federal agency
11 Mortgage-backed
6
7
8
49,948
54,360
57,737
48,177
43,883
43,982
62,780
50,629
46,679
43,008
54,209
25,597
29,731
96,107
45,128
23,498
26,639
120,038
53,692
27,499
20,623
97,277
43,960
23,122
39,430
93,542
48,317
22,289
33,682
92,597
44,731
21,670
19,799
98,140
43,346
25,784
15,160
91,316
41,242
24,313
25,860
73,740
37,819
21,446
38,943
93,459
39,242
22,722
24,649
91,164
37,199
20,839
20,052
116,796
662
10,543
131,023
964
9,433
113,505
745
8,758
132,044
931
6,882
120,017
761
12,172
112,382
895
10,967
106,850
616
6,738
110,635
631
5,825
114,578
850
8,026
95,324
751
11,782
104,092
713
7,967
99,410
791
6,241
84,487
25,658
17,111
95,805
24,633
20,299
77,677
22,753
17,881
96,047
26,569
13,741
78,957
22,362
27,258
77,654
21,395
22,715
74,361
21,054
13,061
74,831
25,153
9,335
80,760
23,463
17,834
66,864
20,694
27,162
75,288
22,009
16,682
71,961
20,047
13,811
99,720
40,543
26,320
27,653
r
FUTURES TRANSACTIONS3
12
13
14
15
16
By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
1,096
1,627
1,785
1,659
3,308
1,904
1,601
716
876
1,201
568
893
3,016
11,231
0
0
3,901
14,344
0
0
3,390
14,516
0
0
4,802
16,401
0
0
3,943
14,695
0
0
3,825
16,291
0
0
2,883
14,747
0
0
2,871
12,501
0
0
2,781
13,146
0
0
3,010
10,840
0
0
2,350
13,165
0
0
2,126
9,908
0
0
OPTIONS TRANSACTIONS4
17
18
19
20
21
By type of underlying security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
0
0
0
0
0
0
0
0
3,257
4,367
0
669
3,272
4,616
0
1,154
2,491
3,872
0
760
2,714
4,536
0
1,248
2,348
3,506
0
732
3,111
4,420
0
711
2,317
3,444
0
651
2,251
4,220
0
688
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Monthly averages are based on the number of trading days in the
month. Transactions are assumed evenly distributed among the trading days of the report
week. Immediate, forward, and futures transactions are reported at principal value, which
does not include accrued interest; options transactions are reported at the face value of the
underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery refers to purchases or sales of securities (other than mortgage-backed federal agency
securities) for which delivery is scheduled in five business days or less and "whenissued" securities that settle on the issue date of offering. Transactions for immediate delivety
of mortgage-backed agency securities include purchases and sales for which delivery is scheduled
in thirty business days or less. Stripped securities are reported at market value by maturity of
coupon or corpus.
0
2,225
3,280
0
1,162
0
2,691
3,075
n.a.
801
0
2,999
2,731
0
612
0
2,530
4,433
0
493
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All
futures transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged
on an organized exchange or in the over-the-counter market, and include options on
futures contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6,1994.
A32
DomesticNonfinancialStatistics • July 1995
1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1
Millions of dollars
1995
1995, week ending
Item
Jan.
Feb.
Mar.
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Positions2
NET OUTRIGHT POSITIONS3
1
2
3
4
5
By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
5,473
4,561
10,749
6,252
14,838
14,691
7,662
4,875
16,251
9,184
5,215
-10,046
-32,608
19,998
32,272
-11,938
-24,446
21,199
32,963
-5,840
-28,898
23,373
32,766
-3,119
-25,747
24,196
33,705
-6,508
-28,178
24,219
33,978
-6,877
-29,981
25,276
32,513
-9,472
-29,126
23,574
31,658
-1,536
-28,708
20,959
33,001
-3,582
-29,073
21,087
31,995
-2,384
-30,790
22,121
30,873
-6,771
-29,279
24,792
30,012
-1,900
-5,786'
-10,230
-3,896'
-7,337'
-9,329'
-11,898
1,425'
-2,213'
0
0
1,095
396
0
0
735'
37'
0
0
525'
1,297'
0
0
531'
2,260'
0
0
NET FUTURES POSITIONS
6
7
8
9
10
By type of deliverable security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
3,627'
2,315'
0
0
-12,879
-11,569
-10,863
-9,908
1,331'
6'
0
0
1,583
-2,068
0
0
2,716
892
0
0
1,694
3,361
0
0
3,259
2,185
0
0
Financing5
Reverse repurchase agreements
11 Overnight and continuing
12 Term
240,357
347,704
245,656
332,428
228,421
363,635
251,649
312,527
221,724
339,654
236,787
358,199
241,780
382,645
210,876
386,976
225,613
343,926
226,080
359,782
233,383
380,033
Securities borrowed
13 Overnight and continuing
14 Term
180,806
50,752
178,369
50,906
170,809
55,699
175,644
52,100
171,574
54,938
172,561
56,336
172,159
57,913
167,121
55,062
167,771
52,406
171,489
54,489
167,645
56,333
3,637
177
3,321
52
3,374
54
3,259
64
3,284
17
3,257
37
3,332
72
3,471
80
3,956
88
3,922
22
3,971
44
Repurchase agreements
17 Overnight and continuing
18 Term
441,838
307,485
473,802
279,666
469,337
320,370
500,915
256,497
466,453
287,499
492,039
306,140
466,609
346,396
445,413
358,430
477,462
292,858
465,802
315,578
473,956
341,903
Securities loaned
19 Overnight and continuing
20 Term
6,686
1,524
5,911
1,301
3,927
1,216
5,160
659
4,043
928
4,082
n.a.
3,952
1,402
3,070
1,091
5,267
2,286
5,354
2,228
4,750
2,338
Securities pledged
21 Overnight and continuing
22 Term
33,191
1,684
28,665
2,278
28,568
3,258
30,357
3,016
28,338
2,892
28,362'
3,269
28,727
3,391
28,827
3,496
27,734
3,323
29,511
2,995
30,173
3,060
Collateralized loans
23 Overnight and continuing
24 Term
14,662
n.a.
15,921
n.a.
13,998
n.a.
11,486
n.a.
14,808
n.a.
13,174
n.a.
15,485
n.a.
12,338
n.a.
15,908
n.a.
18,131
n.a.
16,804
n.a.
MEMO: Matched book
Securities in
25 Overnight and continuing
26 Term
230,535
321,920
227,486
304,497
219,569
334,781
233,735
286,566
211,523
316,804
233,798
326,727
227,955
354,173
204,056
353,860
215,786
315,355
216,930
331,177
218,824
350,856
Securities out
27 Overnight and continuing
28 Term
278,583
258,389
285,050
227,576
282,171
263,970
296,216
201,480
273,465
234,267
291,830
250,048
291,749
287,650
265,355
299,327
297,143
241,270
286,119
261,852
286,605
284,974
Securities received as pledge
15 Overnight and continuing
16 Term
6
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list
of primary dealers. Weekly figures are close-of-business Wednesday data. Positions for
calendar days of the report week are assumed to be constant. Monthly averages are based
on the number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright 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.
6. Matched-book data reflect financial intermediation activity in which the borrowing
and lending transactions are matched. Matched-book data are included in the financing
breakdowns given above. The reverse repurchase and repurchase numbers are not always
equal because of the "matching" of securities of different values or different types of
collateralization.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer
data series as of the week ending July 6, 1994.
Federal Finance
A3 3
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding
Millions of dollars, end of period
1994
Agency
1990
1991
1992
1995
1993
Oct.
1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department1
4 Export-Import Bank2,3
5 Federal Housing Administration4
6 Government National Mortgage Association certificates of
participation5
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association6
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Banks8
15 Student Loan Marketing Association9
16 Financing Corporation10
17 Farm Credit Financial Assistance Corporation11
18 Resolution Funding Corporation12
Nov.
Dec.
Jan.
Feb.
434,668
442,772
483,970
570,711
698,792
715,782
741,992
740,521
749,285
42,159
7
11,376
393
41,035
7
9,809
397
41,829
7
7,208
374
45,193
6
5,315
255
39,037
6
3,932
114
39,662
6
3,932
117
39,186
6
3,455
116
39,196
6
3,455
59
39,054
6
3,455
60
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
6,948
23,435
8,421
22,401
10,660
23,580
9,732
29,885
7,773
27,212
8,073
27,534
8,073
27,536
8,073
27,603
7,873
27,660
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,996
442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,996
525,518
141,577
49,993
201,112
53,123
39,784
8,170
1,261
29,996
659,755
185,894
88,680
242,575
53,609
49,112
8,170
1,261
29,996
676,120
193,920
90,709
247,743
54,800
49,066
8,170
1,261
29,996
702,806
208,881
93,279
257,230
53,175
50,335
8,170
1,261
29,996
701,325
210,905
95,060
250,467
55,558
49,425
8,170
1,261
29,996
710,231
208,843
101,417
255,719
53,846
50,506
8,170
1,261
29,996
179,083
185,576
154,994
128,187
106,935
105,662
103,817
101,157
100,388
11,370
6,698
4,850
14,055
9,803
8,201
4,820
10,725
7,202
10,440
4,790
6,975
5,309
9,732
4,760
6,325
MEMO
19 Federal Financing Bank debt13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6
3,926
7,773
3,926
8,073
3,449
8,073
3,449
8,073
3,449
7,873
n.a.
n.a.
n.a.
n.a.
n.a.
3,200
3,200
3,200
3,200
3,200
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
52,324
18,890
70,896
48,534
18,562
84,931
42,979
18,172
64,436
38,619
17,578
45,864
33,869
17,322
40,845
33,719
17,365
39,379
33,719
17,392
37,984
33,669
17,309
35,457
33,574
17,360
34,932
14
Other lending
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30,1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the securities
market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration,
the Department of Health, Education, and Welfare, the Department of Housing and Urban
Development, the Small Business Administration, and the Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes Federal Agricultural Mortgage Corporation, therefore details do not sum to total.
Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing
Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October
1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt
solely for the purpose of lending to other agencies, its debt is not included in the main
portion of the table in order to avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency
generally being small. The Farmers Home Administration entry consists exclusively of
agency assets, whereas the Rural Electrification Administration entry consists of both
agency assets and guaranteed loans.
A34
DomesticNonfinancialStatistics • July 1995
1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments
Millions of dollars
1994r
Type of issue or issuer,
or use
1992
1995
1994r
1993
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 All issues, new and refunding1
226,818
279,945
153,950
7,903
11,053
11,856
9,541
7,717
7,366
11,844
8,506
By type of issue
2 General obligation
3 Revenue
78,611
136,580
90,599
189,346
54,404
99,546
2,334
5,569
3,202
7,851
5,781
6,075
2,272
7,269
3,770
3,947
3,714r
3,652r
5,459r
6,385r
3,545
4,961
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
24,874
138,327
63,617
27,999
178,714
73,232
19,186
88,562
38,868
1,010
5,155
1,738
1,004
7,198
2,851
1,530
6,228
4,098
151
7,352
2,038
738r
4,835r
2,144r
1,032
4,889'
l,445r
2,315
6,572r
2,957r
994
5,815
1,697
7 Issues for new capital
101,865
91,434
105,972
6,195
9,108
9,629
8,444
5,737r
5,670
10,538
6,510
18,852
14,357
12,164
16,744
6,188
33,560
16,831
9,167
12,014
13,837
6,862
32,723
21,267
10,836
10,192
20,289
8,161
35,227
833
335
454
1,919
428
2,226
1,632
1,380
979
2,060
450
2,607
1,780
623
974
1,416
981
3,855
1,701
307
1,292
2,208
1,046
1,890
1,411
625
538
1,182
384
l,597r
1,464
671
249
869
215
2,202
1,666
454
633
2,556
1,011
4,218
1,826
615
345
1,547
482
1,695
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.
SOURCES. Securities Data Company
Dealer's Digest before then.
beginning
January
1993; Investment
1.46 NEW SECURITY ISSUES U.S. Corporations
Millions of dollars
1995r
1994
Type of issue, offering,
or issuer
1992
1993
1994
Aug.
1
Sept.
r
Oct.
r
Nov.
Dec.
Jan.
Feb.
Mar.
1 All issues
559,827
754,969
n.a.
37,870
29,407
34,481
38,811
23,261r
37,016
41,527
39,379
2 Bonds2
471,502
641,498
n.a.
34,495
25,983
30,909
33,286
20,493
34,037
36,698
36,495
By type of offering
3 Public, domestic
4 Private placement, domestic3
5 Sold abroad
378,058
65,853
27,591
486,879
116,240
38,379
365,050
n.a.
56,238
30,088
n.a.
4,406
22,736
n.a.
3,248
25,192
n.a.
5,718
27,278
n.a.
6,008
17,809
n.a.
2,684
24,078
n.a.
9,959
28,750
n.a.
7,948
32,278
n.a.
4,216
82,058
43,111
9,979
48,055
15,394
272,904
88,002
60,293
10,756
56,272
31,950
394,226
31,981
27,900
4,573
11,713
11,986
333,135
2,596
3,570
315
575
345
27,094
2,167
2,112
229
707
526
20,242
2,498
2,204
227
695
279
25,007
2,491
1,578
239
744
333
27,902
1,508
2,469
269
273
419
15,556
1,497
2,334
0
734
813
28,659
4,305
3,038
199
215
1,122
27,818
2,171
1,941
403
839
399
30,742
12 Stocks2
88,325
113,472
n.a.
3,375
3,444r
3,572
4,972r
2,774r
2,904
4,841
2,884
By type of offering
13 Public preferred
14 Common
15 Private placement3
21,339
57,118
9,867
18,897
82,657
11,917
12,504
47,884r
n.a.
710
2,665
n.a.
555
2,888f
n.a.
713
2,859
n.a.
279
4,693r
n.a.
178
2,595r
n.a.
430
2,474
n.a.
296
4,544
n.a.
205
2,679
n.a.
22,723
20,231
2,595
6,532
2,366
33,879
22,271
25,761
2,237
7,050
3,439
52,021
569
838
50
180
0
1,734
908r
821
154
78
0
1,481'
745
1,105
79
4
0
1,639
1,963
l,789r
76
333
20r
791r
1,203
857r
0
165
21
527r
1,086
392
19
134
496
776
1,583
1,421
15
258
0
1,564
1,009
888
60
137
23
768
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
T
n.a.
1
I
\
1. Figures represent gross proceeds of issues maturing in more than one year; they are
the principal amount or number of units calculated by multiplying by the offering price.
Figures exclude secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds.
Stock data include ownership securities issued by limited partnerships.
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. Beginning July 1993, Securities Data Company and the Board of Governors
of the Federal Reserve System.
Securities Market and Corporate
Finance
A35
1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1
Millions of dollars
1994
1993
Item
1995
1994
Aug.
Oct.
Sept.
Nov.
Dec.
Feb.r
Jan.
Mar.
1 Sales of own shares2
851,885
841,286
64,833
62,263
59,285
56,849
73,183
75,099
59,121
69,898
2 Redemptions of own shares
3 Net sales3
567,881
284,004
699,823
141,463
53,242
1,592
53,383
8,880
53,743
5,543
55,757
1,092
70,747
2,436
63,737
11,362
50,738
8,383
60,970
8,928
4 Assets4
1,510,209
1,550,490
1,604,961
1,588,277
1,601,363
1,549,186
1,550,490
1,563,187
1,619,705
1,657,370
5 Cash5
6 Other
100,209
1,409,838
121,296
1,429,195
120,315
1,484,646
121,575
1,466,702
126,766
1,474,597
125,843
1,423,344
121,296
1,429,195
124,351
1,438,836
126,307
1,493,399
121,424
1,535,946
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities
and Exchange Commission. Data reflect underwritings of newly formed companies after
their initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but include
limited-maturity municipal bond funds. Data on asset positions exclude both money
market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of capital
gains distributions and share issue of conversions from one fund to another in the same
group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of
money market mutual funds within the same fund family.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
Account
1992
1993
1994
1995
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
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
405.1
395.9
139.7
256.2
171.1
85.1
485.8
462.4
173.2
289.2
191.7
97.5
542.7
524.5
202.5
322.0
205.2
116.9
473.1
456.6
171.8
284.8
190.7
94.1
493.5
458.7
169.9
288.9
193.2
95.6
533.9
501.7
191.5
310.2
194.6
115.6
508.2
483.5
184.1
299.4
196.3
103.0
546.4
523.1
201.7
321.4
202.5
118.9
556.0
538.1
208.6
329.5
207.9
121.6
560.3
553.5
215.6
337.9
213.9
124.0
n.a.
n.a.
n.a.
n.a.
217.1
n.a.
7 Inventory valuation
8 Capital consumption adjustment
-6.4
15.7
-6.2
29.5
-19.5
37.7
-10.0
26.5
3.0
31.7
-6.5
38.8
-12.3
37.0
-14.1
37.4
-19.6
37.5
-32.1
38.8
-36.5
38.1
SOURCE. U.S. Department of Commerce, Survey of Current Business.
1.50
NONFARM BUSINESS EXPENDITURES
N e w Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
Industry
1992
1993
1994
19941
Q1
Q2
Q3
Q4
Q1
Q2
Q31
Q41
1 Total nonfarm business
546.60
586.73
638.37
563.48
578.95
594.56
604.51
619.34
637.08
651.92
645.13
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
73.32
100.69
81.45
98.02
92.78
99.77
78.19
95.80
80.33
97.22
82.74
99.74
83.64
98.51
86.03
99.02
91.71
102.28
98.97
98.39
94.44
99.39
Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9 Gas and other
10 Commercial and other
8.88
10.08
11.24
8.98
9.10
11.09
10.92
11.43
10.70
11.57
11.27
6.67
8.93
7.04
6.14
6.42
9.22
6.72
3.95
10.53
6.16
7.26
8.96
5.94
6.63
8.92
5.89
6.70
8.74
6.55
5.06
10.23
7.46
4.23
10.77
5.36
4.53
9.70
6.65
3.86
10.22
7.40
3.16
11.42
48.22
23.99
268.84
52.55
23.43
299.44
52.25
24.20
336.93
49.98
23.79
284.35
50.61
23.83
296.35
52.96
22.98
303.74
55.60
23.27
310.73
48.68
24.51
327.20
53.55
22.96
336.28
54.15
24.35
343.76
52.60
24.97
340.48
1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and insurance,
personal and business services, and communication.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A36
DomesticNonfinancialStatistics • July 1995
1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
1993
Account
1994
1994r
1993
1992
Q2
Q3
04
Q1
Q2
Q3
Q4r
ASSETS
Accounts receivable, gross2
2 Consumer
3 Business
4 Real estate
491.8
118.3
301.3
72.2
482.8
116.5
294.6
71.7
551.0
134.8
337.6
78.5
473.7
110.6
291.8
71.4
474.0
291.9
71.1
482.8
116.5
294.6
71.7
494.5
120.1
302.3
72.1
511.3
124.3
313.2
73.8
524.1
130.3
317.2
76.6
551.0
134.8
337.6
78.5
53.2
16.2
50.7
11.2
51.6
11.6
49.7
10.8
49.5
11.2
50.7
11.2
51.2
11.6
51.9
12.1
51.1
12.1
51.6
11.6
7 Accounts receivable, net
8 All other
422.4
142.5
420.9
170.9
487.7
180.8
413.2
151.5
413.3
163.9
420.9
170.9
431.7
171.2
447.3
174.6
460.9
177.2
487.7
180.8
9 Total assets
564.9
591.8
668.5
564.7
577.3
591.8
602.9
621.9
638.1
668.5
37.6
156.4
25.3
159.2
21.2
184.6
29.4
144.5
25.8
149.9
25.3
159.2
24.2
165.9
23.3
171.2
21.6
171.0
21.2
184.6
n.a.
n.a.
39.5
196.3
68.0
67.1
n.a.
n.a.
42.7
206.0
87.1
71.4
n.a.
n.a.
50.8
237.2
99.1
75.5
n.a.
n.a.
45.0
199.9
77.8
68.1
n.a.
n.a.
44.6
204.2
83.8
68.9
n.a.
n.a.
42.7
206.0
87.1
71.4
n.a.
n.a.
41.1
211.7
90.5
69.5
n.a.
n.a.
44.7
219.6
89.9
73.2
n.a.
n.a.
50.0
228.2
95.0
72.3
n.a.
n.a.
50.8
237.2
99.1
75.5
564.9
591.8
668.5
564.7
577.3
591.8
602.9
621.9
638.1
668.5
1
5 LESS: Reserves for unearned income
6
Reserves for losses
111.0
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
16
17
Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
18 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 offinancecompanies;
securitized pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses,
1.52 DOMESTIC FINANCE COMPANIES Consumer, Real Estate, and Business Credit1
Millions of dollars, amounts outstanding, end of period
1994
1995
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
1 Total
540,679
546,020
610,710
596,397
602,463
610,710
619,785r
624,526r
629,386
2 Consumer 2
3 Real estate
4 Business
157,857
72,496
310,325
160,802
71,991
313,226
174,059
78,774
357,877
173,178
76,971
346,248
174,324
77,991
350,148
174,059
78,774
357,877
176,358r
79,097
364,329r
174,779r
80,539
369,208
175,739
80,033
373,614
Not seasonally adjusted
5 Total
6 Consumer
7 Motor vehicles
8 Other consumer
9 Securitized motor vehicles44
10 Securitized other consumer
11 Real estate2
12 Business
13 Motor vehicles
14
Retail5
Wholesale6
15
Leasing
16
17 Equipment
Retail
18
Wholesale6
19
Leasing
20
21 Other business
22 Securitized business assets4
23
Retail
24
Wholesale
Leasing
25
544,691
550387
615,758
596,054
603,305
615,758
619,171r
624,161r
630,356
159,558
57,259
61,020
29,734
11,545
72,243
312,890
89,011
20,541
29,890
38,580
151,424
33,521
8,680
109,223
60,856
11,599
1,120
5,756
4,723
162,770
56,057
60,396
36,024
10,293
71,727
315,890
95,173
18,091
31,148
45,934
145,452
35,513
8,001
101,938
53,997
21,268
2,483
10,584
8,201
176,316
61,609
73,221
31,861
9,625
78,479
360,963
118,197
21,514
35,037
61,646
157,953
39,680
9,678
108,595
61,495
23,318
3,065
14,499
5,754
172,813
60,750
70,812
31,592
9,659
77,235
346,006
110,089
21,645
29,302
59,142
152,675
38,584
9,134
104,957
59,314
23,928
2,956
15,173
5,799
174,118
61,372
71,502
31,494
9,750
77,907
351,280
113,222
22,113
30,614
60,495
154,312
38,912
9,484
105,916
59,893
23,853
2,853
15,311
5,689
176,316
61,609
73,221
31,861
9,625
78,479
360,963
118,197
21,514
35,037
61,646
157,953
39,680
9,678
108,595
61,495
23,318
3,065
14,499
5,754
177,353r
62,321r
75,147
30,261
9,624
79,592
362,226r
118,979
21,809
34,493
62,677
158,820r
40,387
9,372
109,061r
61,304
23,123
2,901
14,621
5,601
175,623r
61,067
73,69 l r
31,303
9,562
80,754
367,784
121,818
21,577
36,759
63,482
159,333
40,329
9,462
109,542
63,339
23,294
2,764
15,144
5,386
176,628
61,256
74,534
32,155
8,683
79,425
374,303
126,345
21,652
38,868
65,825
161,306
42,024
8,913
110,369
62,420
24,232
2,612
16,435
5,185
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses. Data in
this table also appear in the Board's G.20 (422) monthly statistical release. For ordering
address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,firstand
junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types
of consumer goods such as appliances, apparel, general merchandise, and recreation
vehicles.
4. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
5. Passenger car fleets and commercial land vehicles for which licenses are required.
6. Credit arising from transactions between manufacturers and dealers, that is, floor
plan financing.
7. Includes loans on commercial accounts receivable, factored commercial accounts,
and receivable dealer capital; small loans used primarily for business or farm purposes;
and wholesale and lease paper for mobile homes, campers, and travel trailers.
Real Estate
A37
1.53 MORTGAGE MARKETS Mortgages on New Homes
Millions of dollars except as noted
1994
Item
1992
1993
1995
1994
Nov.
Oct.
Jan.
Dec.
Feb.
Mar.
Apr.
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)
Yield (percent per year)
6 Contract rate1
7 Effective rate1,3
8 Contract rate (HUD series)4
158.1
118.1
76.6
25.6
1.60
163.1
123.0
78.0
26.1
1.30
170.4
130.8
78.8
27.5
1.29
173.4
131.9
78.3
27.6
1.22
178.2
136.2
78.0
27.9
1.30
184.9
136.2
76.9
28.0
1.38
176.5
134.2
78.0
28.0
1.31
175.6
135.6
79.3
28.3
1.32
173.3
132.6
78.2
28.6
1.18
174.7
134.6
79.2
28.1
1.14
7.98
8.25
8.43
7.03
7.24
7.37
7.26
7.47
8.58
7.55
7.76
9.19
7.59
7.81
9.34
7.61
7.83
9.32
7.96
8.18
9.11
8.07
8.28
8.79
8.02
8.21
8.60
7.96
8.15
8.44
8.46
7.71
7.46
6.65
8.68
7.96
9.23
8.67
9.53
8.86
9.54
8.76
9.10
8.69
9.05
8.38
8.60
8.08
8.56
7.96
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
11
12
13
Mortgage holdings (end of period)
Total
FHA/VA insured
Conventional
158,119
22,593
135,526
190,861
23,857
167,004
222,057
28,377
194,499
218,479
26,226
192,253
220,377
27,118
193,259
222,057
28,377
194,499
222,774
28,368
195,170
223,137
28,420
195,439
223,956
28,672
195,998
226,197
28,664
198,161
14
Mortgage transactions (during period)
Purchases
75,905
92,037
62,389
5,003
3,549
3,399
2,154
1,802
2,390
3,709
15
16
Mortgage commitments (during period)
Issued7
To sell8
74,970
10,493
92,537
5,097
54,038
1,820
3,421
48
2,696
20
2,910
55
1,720
57
1,683
82
3,372
64
3,277
22
33,665
352
33,313
55,012
321
54,691
72,693
276
72,416
69,340
284
69,057
70,757
279
70,477
72,693
276
72,416
73,553
272
73,281
75,184
270
74,914
77,313
266
77,047
79,147
262
78,885
FEDERAL HOME LOAN MORTGAGE CORPORATION
17
18
19
Mortgage holdings (end of period)*
Total
F H A / V A insured
Conventional
20
21
Mortgage transactions (during period)
Purchases
Sales
191,125
179,208
229,242
208,723
124,697
117,110
8,351
8,139
3,022
2,865
4,890
3,769
3,254
2,862
5,537
4,806
4,609
3,546
4,530
3,805
22
Mortgage commitments (during periodf
Contracted
261,637
274,599
136,067
7,288
3,454
2,412
6,541
7,741
12,704
13,437
1. Weighted averages based on sample surveys of mortgages originated by major
institutional lender groups for purchase of newly built homes; compiled by the Federal
Housing Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or
the seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from
U.S. Department of Housing and Urban Development (HUD). Based on transactions on
the first day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages
insured by the Federal Housing Administration (FHA) for immediate delivery in the
private secondary market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (GNMA),
assuming prepayment in twelve years on pools of thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, whereas the corresponding data for FNMA
exclude swap activity.
A169 DomesticNonfinancialStatistics • July 1995
1.54 MORTGAGE DEBT OUTSTANDING1
Millions of dollars, end of period
1993
Type of holder and property
1991
1992
1994
1993
Q4
Q1
Q2
Q3
Q4
1 All holders
3,926,154
4,056,233
4,215,480
4,215,480
4,242,350
4,300,086
4,361,119
4,409,390
By type of property
2 One- to four-family residences
3 Multifamily residences
4 Commercial
5
2,781,327
306,551
759,154
79,122
2,963,391
295,417
716,687
80,738
3,147,255
290,489
696,542
81,194
3,147,255
290,489
696,542
81,194
3,181,125
289,236
690,718
81,272
3,234,663
290,807
692,764
81,853
3,291,915
292,180
694,736
82,288
3,339,190
292,151
695,548
82,500
1,846,726
876,100
483,623
36,935
337,095
18,447
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044
1,769,187
894,513
507,780
38,024
328,826
19,882
627,972
489,622
69,791
68,235
324
246,702
11,441
27,770
198,269
9,222
1,767,835
940,444
556,538
38,635
324,409
20,862
598,330
469,959
67,362
60,704
305
229,061
9,458
25,814
184,305
9,484
1,767,835
940,444
556,538
38,635
324,409
20,862
598,330
469,959
67,362
60,704
305
229,061
9,458
25,814
184,305
9,484
1,746,474
937,944
553,894
38,690
324,106
21,254
584,531
458,057
66,924
59,253
297
223,999
9,245
25,232
180,152
9,370
1,763,296
956,840
569,512
38,609
326,800
21,918
585,671
462,219
66,281
56,872
299
220,785
9,107
24,855
177,463
9,360
1,786,171
981,365
592,021
38,004
328,931
22,408
587,538
466,697
65,530
55,019
291
217,269
8,956
24,442
174,514
9,357
1,813,751
1,004,237
609,521
39,289
332,859
22,567
596,035
477,144
64,557
54,048
286
213,479
8,794
24,002
171,368
9,315
266,146
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,767
1,693
27,074
26,809
24,125
2,684
286,263
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,664
1,687
26,977
33,665
31,032
2,633
317,486
22
15
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,203
5,327
4,754
0
166,642
151,310
15,332
28,460
1,675
26,785
51,476
48,929
2,547
317,486
22
15
7
41,386
15,303
10,940
5,406
9,739
12,215
5,364
6,851
17,284
7,203
5,327
4,754
0
166,642
151,310
15,332
28,460
1,675
26,785
51,476
48,929
2,547
323,464
20
13
7
41,209
14,870
11,037
5,399
9,903
11,344
4,738
6,606
14,241
6,308
4,208
3,726
0
172,343
156,576
15,767
28,181
1,658
26,523
56,127
53,571
2,556
327,690
12
12
0
41,370
14,459
11,147
5,526
10,239
11,169
4,826
6,343
13,908
6,045
4,230
3,633
0
175,377
159,437
15,940
28,475
1,675
26,800
57,379
54,799
2,580
334,359
12
12
0
41,587
14,084
11,243
5,608
10,652
10,533
4,321
6,212
15,403
6,998
4,569
3,836
0
177,200
161,255
15,945
28,538
1,679
26,859
61,087
58,432
2,655
335,228
6
6
0
41,781
13,826
11,319
5,670
10,966
10,964
4,753
6,211
10,428
5,200
2,859
2,369
0
178,059
162,160
15,899
28,565
1,681
26,885
65,424
62,594
2,830
1,250,666
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177
84,000
3,698
6,479
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,550,818
414,066
404,864
9,202
443,029
438,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
0
1,550,818
414,066
404,864
9,202
443,029
438,494
4,535
495,525
486,804
8,721
28
5
0
13
10
198,171
164,000
8,701
25,469
0
1,604,449
423,446
414,194
9,251
459,949
455,779
4,170
507,376
498,489
8,887
26
5
0
12
9
213,653
177,000
9,202
27,451
0
1,643,627
435,709
426,363
9,346
470,183
466,361
3,822
514,855
505,730
9,125
22
4
0
10
8
222,858
179,500
11,514
31,844
0
1,668,496
444,976
435,511
9,465
469,062
465,614
3,448
523,512
514,375
9,137
20
4
0
9
7
230,926
182,300
13,891
34,735
0
1,683,946
450,934
441,198
9,736
467,071
463,945
3,126
530,343
520,763
9,580
19
3
0
9
7
235,579
183,600
14,850
37,129
0
562,616
370,157
83,937
93,541
14,981
575,237
382,572
85,871
91,524
15,270
579,341
387,334
86,516
91,482
14,009
579,341
387,334
86,516
91,482
14,009
567,963
376,728
86,700
90,621
13,915
565,473
374,612
87,014
90,617
13,229
572,092
379,656
87,638
92,084
12,714
576,465
384,001
87,893
92,096
12,474
By type of holder
6 Major financial institutions
7 Commercial banks2
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17 Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm
22 Federal and related agencies
23 Government National Mortgage Association
24
One- to four-family
25
Multifamily
26 Fanners Home Administration4
27
One- to four-family
28
Multifamily
29
Commercial
30
Farm
31 Federal Housing and Veterans' Administrations
32
One- to four-family
33
Multifamily
34 Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39 Federal National Mortgage Association
40
One- to four-family
41
Multifamily
42 Federal Land Banks
43
One- to four-family
44
Farm
45 Federal Home Loan Mortgage Corporation
46
One- to four-family
47
Multifamily
48 Mortgage pools or trusts5
49 Government National Mortgage Association
50
One- to four-family
51
Multifamily
52 Federal Home Loan Mortgage Corporation
53
One- to four-family
54
Multifamily
55 Federal National Mortgage Association
56
One- to four-family
57
Multifamily
58 Farmers Home Administration4
59
One- to four-family
60
Multifamily
61
Commercial
62
Farm
63 Private mortgage conduits
64
One- to four-family
65
Multifamily
66
Commercial
67
Farm
68 Individuals and others6
69 One- to four-family
70 Multifamily
71 Commercial
72
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated
from FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of
accounting changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed
by the agency indicated.
6. Other holders include mortgage companies, real estate investment trusts, state and
local credit agencies, state and local retirement funds, noninsured pension funds, credit
unions, and finance companies.
SOURCES. Based on data from various institutional and government sources. Separation
of nonfarm mortgage debt by type of property, if not reported directly, and interpolations
and extrapolations, when required for some quarters, are estimated in part by the Federal
Reserve. Line 64 from Inside Mortgage Securities.
Consumer Installment Credit
A39
1.55 CONSUMER INSTALLMENT CREDIT1
Millions of dollars, amounts outstanding, end of period
1994
Holder and type of credit
1992
1993
1995
1994
Oct.
Dec.
Nov.
Jan.
Feb.r
Mar.
Seasonally adjusted
1 Total
731,098
794,300
911,311
891,603
904,757
911,311
920,338r
928,010
941,815
7. Automobile
3 Revolving
4 Other
257,678
257,304
216,117
282,036
287,875
224,389
324,519
337,694
249,098
318,036
327,707
245,860
323,447
334,843
246,467
324,519
337,694
249,098
324,855
343,184
252,299r
327,720
349,487
250,803
330,405
356,161
255,250
Not seasonally adjusted
747,690
812,782
932,890
891,442
906,436
932,890
929,330r
928,123
936,936
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets2
330,088
118,279
91,694
37,049
49,184
121,396
368,549
116,453
101,634
37,855
57,637
130,654
434,790
134,830
120,158
38,750
64,944
139,418
414,833
131,562
116,325
38,122
56,020
134,580
421,790
132,874
117,984
38,275
58,247
137,266
434,790
134,830
120,158
38,750
64,944
139,418
431,745
136,699r
120,668
39,250
61,382
139,586r
432,883
134,439
121,116
39,399
59,169
141,117
436,102
135,790
122,565
39,500
57,863
145,116
By major type of credit
17. Automobile
13 Commercial banks
14 Finance companies
15 Pools of securitized assets2
258,226
109,623
57,259
33,888
282,825
123,358
56,057
39,490
325,536
148,117
61,609
34,515
320,182
146,456
60,750
34,394
323,744
148,004
61,372
34,301
325,536
148,117
61,609
34,515
324,826
147,319
62,321
32,902
326,770
148,355
61,067
33,936
329,598
148,733
61,256
34,587
16 Revolving
17 Commercial banks
18 Nonfinancial business
19 Pools of securitized assets
271,368
132,966
43,974
74,931
303,444
149,527
52,113
79,887
355,859
180,530
58,870
93,545
325,872
165,561
50,332
88,762
336,575
171,318
52,475
91,469
355,859
180,530
58,870
93,545
350,035
176,635
55,405
95,015
349,185
177,241
53,257
95,734
352,249
177,389
51,986
99,851
70 Other
7.1 Commercial banks
22 Finance companies
23 Nonfinancial business
24 Pools of securitized assets
218,096
87,499
61,020
5,210
12,577
226,513
95,664
60,396
5,524
11,277
251,495
106,143
73,221
6,074
11,358
245,388
102,816
70,812
5,688
11,424
246,117
102,468
71,502
5,772
11,496
251,495
106,143
73,221
6,074
11,358
254,469r
107,791
74,378r
5,977
11,669r
252,168
107,287
73,372
5,912
11,447
255,089
109,980
74,534
5,877
10,678
5 Total
6
7
8
9
10
11
1. The Board's series on amounts of credit covers most short- and intermediate-term
credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical release. For
ordering address, see inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit totals are
available.
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1994
Item
1992
1993
1995
1994
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
INTEREST RATES
Commercial banks2
1 48-month new car
2 24-month personal
9.29
14.04
8.09
13.47
8.12
13.19
n.a.
n.a.
n.a.
n.a.
8.75
13.59
n.a.
n.a.
n.a.
n.a.
9.70
14.10
n.a.
n.a.
Credit card plan
3 All accounts
4 Accounts assessed interest
n.a.
n.a.
n.a.
n.a.
15.91
15.74
n.a.
n.a.
n.a.
n.a.
15.91
15.74
n.a.
n.a.
n.a.
n.a.
16.24
15.29
n.a.
n.a.
9.93
13.80
9.48
12.79
9.79
13.49
10.13
13.98
10.39
14.01
10.53
14.19
10.72
14.48
11.35
14.57
11.89
15.06
11.95
15.10
54.0
47.9
54.5
48.8
54.0
50.2
54.3
50.2
54.9
50.2
54.6
50.3
53.9
50.3
53.9
52.0
54.1
52.0
54.5
52.1
89
97
91
98
92
99
93
100
92
100
93
100
92
100
92
99
92
99
92
99
13,584
9,119
14,332
9,875
15,375
10,709
15,419
10,906
15,827
10,554
15,971
11,202
16,187
11,309
16,068
11,185
15,774
11,181
15,826
11,220
Auto finance companies
6 Used car
OTHER TERMS3
Maturity (months)
7 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amountfinanced(dollars)
12 Used car
1. The Board's series on amounts of credit covers most short- and intermediate-term
credit extended to individuals that is scheduled to be repaid (or has the option of
repayment) in two or more installments. Data in this table also appear in the Board's G.19
(421) monthly statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
A40
DomesticNonfinancialStatistics • July 1995
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1993
Transaction ratponrv nr cprtnr
1990
1994
1992
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors....
635.6
475.8
536.1
628.1
619.5
740.5
613.3
677.2
657.1
550.6
620.8
649.5
By sector and instrument
2 US. government
3 Treasury securities
4 Budget agency issues and mortgages
246.9
238.7
8.2
278.2
292.0
-13.8
304.0
303.8
.2
256.1
248.3
7.8
155.9
155.7
.2
336.4
332.3
4.1
173.4
157.2
16.2
274.2
266.5
7.7
210.5
211.8
-1.3
122.9
118.2
4.7
135.0
130.7
4.3
155.0
162.1
-7.1
5 Private
388.7
197.5
232.1
372.0
463.7
404.1
439.9
403.0
446.6
427.7
485.8
494.5
6
7
8
9
10
11
12
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
48.7
47.1
199.5
185.6
4.8
9.3
-.3
16.0
.4
9.7
67.4
68.7
78.8
161.4
163.8
-3.1
.4
.4
-15.0
-40.9
-18.4
-37.1
31.1
67.5
123.9
179.5
-11.2
-45.5
1.1
5.5
-13.8
8.6
9.2
78.1
75.2
155.7
183.9
-6.1
-22.5
.5
62.3
5.0
10.0
-14.4
-15.1
21.9
194.1
191.9
1.7
-.9
1.3
117.5
77.6
21.4
46.3
130.3
75.7
152.2
193.5
-11.4
-30.9
1.0
41.6
-.2
33.2
-28.6
66.2
72.0
222.2
236.5
-4.9
-9.9
.4
76.2
7.8
17.2
-21.7
27.4
67.4
148.5
184.5
-2.6
-33.6
.2
111.3
28.5
3.8
16.2
22.6
35.5
163.0
191.2
-5.1
-23.4
.3
72.7
68.2
8.0
76.5
-9.8
35.8
188.6
172.3
6.1
7.8
2.3
121.9
57.9
16.4
16.9
-41.2
14.0
239.8
224.8
5.5
7.8
1.7
125.9
89.4
33.8
24.1
-32.1
2.4
185.0
179.5
.4
4.3
.8
149.4
94.8
27.2
67.8
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
218.9
123.7
2.3
10.1
111.3
46.0
170.9
-35.9
2.1
-28.5
-9.6
62.6
217.7
-2.0
1.0
-43.9
40.9
16.4
284.5
21.9
2.0
-26.0
45.8
65.7
349.6
143.3
2.3
19.8
121.2
-29.3
264.1
26.7
2.7
-33.4
57.4
113.2
368.5
24.1
4.1
-26.2
46.3
47.3
337.7
48.2
3.6
-15.6
60.2
17.1
304.3
135.8
2.6
8.4
124.7
6.5
316.0
139.9
8.1
18.5
113.2
-28.2
387.7
146.8
1.7
28.9
116.2
-48.7
390.5
150.7
-3.2
23.2
130.7
-46.6
23.9
21.4
-2.9
12.3
-7.0
13.9
14.1
3.1
6.4
-9.8
21.3
14.4
2.3
5.2
-.6
46.9
59.4
.7
-9.0
-4.2
-12.1
17.1
1.4
-27.3
-3.3
42.8
45.3
6.6
-.6
-8.4
83.1
84.5
1.0
-1.6
-.8
22.9
41.4
-6.3
-12.0
-.1
-66.3
29.0
6.0
-101.8
.5
-10.1
9.4
-4.5
-5.2
-9.8
4.1
4.9
4.7
-8.1
2.8
23.9
25.2
-.5
5.9
-6.6
659.4
489.6
557.4
675.0
607.4
783.3
696.4
700.2
590.8
540.5
624.9
673.4
23 Foreign net borrowing in United States
24 Bonds
25 Bank loans n.e.c
26 Commercial paper
27 U.S. government and other loans
28 Total domestic plus foreign
Financial sectors
29 Total net borrowing byfinancialsectors
30
31
32
33
34
35
36
37
38
39
By instrument
US. government-related
Government-sponsored enterprises securities
Mortgage pool securities
Loans from U.S. government
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks
By borrowing sector
40 Government-sponsored enterprises
41 Federally related mortgage pools
42
43 Commercial banks
44 Bank holding companies
45 Funding corporations
46 Savings institutions
47 Credit unions
48 Life insurance companies
49 Finance companies
50 Mortgage companies
51 Real estate investment trusts (REITs)
52 Issuers of asset-backed securities (ABSs)
202.9
152.6
237.1
286.1
419.9
175.5
438.9
349.8
488.9
343.5
367.7
479.6
167.4
17.1
150.3
-.1
145.7
9.2
136.6
.0
155.8
40.3
115.6
.0
161.2
80.6
80.6
.0
268.2
177.2
95.7
-4.8
56.6
68.8
-12.2
.0
287.3
167.8
119.5
.0
131.3
53.4
77.9
.0
320.8
160.0
180.0
-19.2
245.2
146.6
98.6
.0
224.9
152.1
72.8
.0
281.7
250.2
31.5
.0
35.5
46.3
.6
4.7
8.6
-24.7
6.8
67.6
.5
8.8
-32.0
-38.0
81.3
78.5
.6
2.2
-.7
.8
125.0
118.3
3.6
-14.0
-6.2
23.3
151.8
103.3
-.2
-15.8
41.6
22.8
118.9
92.4
1.4
12.8
-16.2
28.4
151.6
143.4
6.2
-16.1
-9.4
27.4
218.5
138.3
5.5
-18.0
76.0
16.8
168.2
154.5
.2
-12.3
36.6
-10.8
98.3
91.9
.6
-30.1
3.6
32.3
142.8
84.3
.1
-14.6
42.3
30.7
197.9
82.8
-1.5
-6.2
84.0
38.8
17.0
150.3
35.5
-.7
-27.7
15.4
-30.2
.0
.0
24.0
.0
.8
52.3
9.1
136.6
6.8
-11.7
-2.5
-6.5
-44.5
.0
.0
18.6
-2.4
1.2
51.0
40.2
115.6
81.3
8.8
2.3
13.2
-6.7
.0
.0
-3.6
8.0
.3
56.3
80.6
80.6
125.0
5.6
8.8
2.9
11.1
.2
.2
.2
-1.0
3.5
81.5
172.4
95.7
151.8
10.0
8.4
25.8
12.8
.2
.3
50.3
-13.0
1.7
54.7
68.8
-12.2
118.9
11.3
1.3
-1.6
12.6
.3
.6
-13.6
32.4
1.3
60.5
167.8
119.5
151.6
6.5
.5
7.9
13.5
.3
-.1
17.5
-.8
6.0
85.8
53.4
77.9
218.5
1.2
12.2
36.7
8.8
.1
.4
16.3
-10.4
6.2
117.6
140.8
180.0
168.2
2.0
3.5
48.2
-5.6
.1
.0
63.3
-21.6
1.2
86.9
146.6
98.6
98.3
12.4
10.1
-17.9
5.8
.2
.0
67.0
-18.2
2.2
36.5
152.1
72.8
142.8
22.8
11.5
46.5
14.8
.5
.0
16.9
-7.0
2.3
42.2
250.2
31.5
197.9
2.9
8.5
26.3
36.1
.2
1.3
54.0
-5.0
1.1
53.1
Flow of Funds
A41
1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued
1994
1993
Transaction category or sector
1990
1991
1992
1993
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
All sectors
53 Total net borrowing, all sectors
862.3
642.2
794.5
961.2
1,027.3
958.8
1,135.3
1,050.0
1,079.7
884.0
992.6
1,153.0
54
55
56
57
58
59
60
61
414.4
48.7
114.7
200.1
16.0
2.2
30.7
35.6
424.0
68.7
160.5
161.9
-15.0
-29.1
-44.0
-84.9
459.8
31.1
160.4
124.5
5.5
-9.4
13.1
9.5
417.3
78.1
252.9
159.2
62.3
-8.3
-5.1
4.7
428.8
-15.1
142.4
193.9
117.5
63.2
35.7
61.0
393.0
130.3
213.4
153.5
41.6
19.2
16.4
-8.7
460.7
66.2
299.9
228.3
76.2
-7.3
6.3
4.9
405.5
27.4
247.1
154.0
111.3
4.2
67.7
32.9
550.5
22.6
219.0
163.2
72.7
61.9
-57.2
47.0
368.1
-9.8
137.0
189.1
121.9
23.3
14.8
39.4
359.9
-41.2
103.1
239.9
125.9
79.5
68.0
57.6
436.7
-32.1
110.3
183.5
149.4
88.1
117.1
100.0
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
Funds raised through mutual funds and corporate equities
62 Total net share issues
63 Mutual funds
64 Corporate equities
65 Nonfinancial corporations
66 Financial corporations
67 Foreign shares purchased in United States
19.7
215.4
296.0
437.1
159.8
471.9
498.0
434.5
312.3
236.4
126.7
-36.0
65.3
-45.6
-63.0
10.0
7.4
151.5
64.0
18.3
15.1
30.7
211.9
84.1
27.0
26.4
30.7
317.0
120.1
21.3
38.2
60.6
128.3
31.6
-40.9
28.6
43.9
358.0
113.9
23.2
38.6
52.1
348.9
149.1
32.3
38.2
78.6
292.0
142.4
21.5
40.9
80.0
204.5
107.8
-9.6
47.9
69.4
167.0
69.4
-2.0
24.8
46.7
129.3
-2.6
-50.0
23.7
23.7
12.3
-48.3
-102.0
17.9
35.7
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables F.2 through F.5. For ordering address, see inside front cover.
A42
Domestic Financial Statistics • July 1995
1.58 SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
Transaction category or sector
1990
1991
1992
1993
1994
1994
Q2
Q3
Q4
Q1
Q2
Q3
Q4
NET LENDING IN CREDIT MARKETS2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Total net lending in credit markets
Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Government sponsored enterprises
Federally related mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank holding companies
Banks in U.S. affiliated areas
Funding corporations
Thrift institutions
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Finance companies
Mortgage companies
Mutual funds
Closed-end funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Asset-backed securities issuers (ABSs)
Bank personal trusts
862.3
642.2
794.5
190.1
157.2
-1.7
-3.7
38.3
33.7
85.5
553.0
13.9
150.3
8.1
125.1
94.9
28.4
-2.8
4.5
16.1
-154.0
94.4
26.5
17.2
34.9
29.0
.0
41.4
.2
80.9
-.7
2.8
51.1
15.9
-7.5
-39.6
-3.7
6.7
29.2
10.5
26.6
612.5
15.2
136.6
31.1
80.8
35.7
48.5
-1.5
-1.9
15.8
-123.5
83.2
32.6
85.7
46.0
-12.7
11.2
90.3
14.7
30.1
-.7
17.5
48.9
10.0
72.0
70.7
-1.1
29.2
-26.8
-11.9
100.5
633.9
69.0
115.6
27.9
95.3
69.5
16.5
5.6
3.7
23.5
-61.3
79.1
12.8
37.3
34.4
1.7
.1
123.7
17.4
1.3
1.1
-6.9
53.8
8.0
961.2 1,027.3
958.8 1,135.3
884.0
992.6
1,153.0
296.5
378.3
-2.0
18.2
-98.0
-19.6
129.0
621.4
118.9
95.7
31.5
162.1
148.1
11.0
1.1
1.9
12.6
35.6
55.4
21.1
-42.8
43.8
66.8
-26.0
-14.0
3.5
30.5
.7
-32.0
51.8
6.3
-4.6
-76.5
-3.2
17.3
57.7
-27.1
93.4
897.1
128.0
-12.2
35.7
133.4
137.4
-14.3
7.9
2.4
1.1
16.1
109.4
36.0
11.1
47.5
-34.7
65.1
194.4
10.5
33.3
.8
52.5
59.4
10.0
-39.5
-69.7
-3.3
41.2
-7.7
-15.4
123.5
1,066.6
144.8
119.5
28.2
146.7
160.3
-16.9
1.2
2.2
32.4
21.0
111.8
37.6
91.9
27.4
9.4
-1.6
174.6
5.9
25.3
1.0
-7.8
88.6
9.9
86.3
174.7
-3.5
16.0
-101.0
-7.9
221.2
750.4
71.2
77.9
38.5
188.1
197.3
-6.5
-4.8
2.1
42.6
-13.3
86.4
32.1
-60.1
36.9
22.6
-13.3
138.4
7.7
57.3
.2
-82.8
111.1
8.9
391.3
394.3
-3.6
22.3
-21.6
-40.8
127.6
601.6
92.4
180.0
48.8
184.7
120.6
59.0
3.1
2.1
17.8
13.6
53.7
27.9
-97.7
30.3
72.1
-43.5
18.0
8.3
-44.5
.7
-56.1
86.0
9.3
340.1
408.3
-1.8
16.9
-83.2
-11.1
49.4
505.5
101.1
98.6
17.9
109.1
128.4
-21.5
.2
1.9
35.3
42.6
6.1
20.8
-30.7
51.2
49.8
-36.3
11.3
3.2
33.7
.7
-52.6
38.7
5.2
152.0
246.6
-1.9
21.8
-114.4
-.9
119.6
721.9
125.6
72.8
24.0
191.3
164.6
22.1
2.7
1.9
21.4
52.0
83.4
16.0
-17.5
41.5
58.9
-14.0
-18.7
1.4
54.4
.7
-11.8
37.4
2.9
302.5
464.1
-.5
11.7
-172.7
-25.7
219.6
656.6
156.5
31.5
35.4
163.3
178.7
-15.7
-1.5
1.8
-24.1
34.1
78.3
19.7
-25.5
52.1
86.4
-10.0
-66.5
1.0
78.4
.7
-7.6
45.1
7.7
961.2 1,027J
958.8
1,135.3
1,050.0 1,079.7
884.0
-4.0
.0
.4
35.3
313.7
128.9
214.4
-67.8
-26.8
61.8
37.9
-17.1
358.0
113.9
40.0
51.0
7.3
-14.9
-7.2
402.1
1.7
.0
.4
36.6
349.9
-5.0
73.1
-68.1
-59.5
.6
67.8
-50.7
348.9
149.1
76.6
49.6
-1.8
6.3
.1
221.4
4.8
-11.5
-3.2
18.0
1.5
-18.4
126.0
848.8
90.2
80.6
36.2
142.2
149.6
-9.8
.0
2.4
18.1
-1.7
105.1
33.3
40.2
25.5
-9.0
.0
164.0
10.2
14.7
.6
9.2
80.1
9.5
1,050.0 1,079.7
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
33
Netflowsthrough credit markets
862.3
642.2
794.5
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Otherfinancialsources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Life insurance reserves
Pension fund reserves
Interbank claims
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Investment in bank personal trusts
Miscellaneous
2.0
1.5
1.0
25.7
165.1
35.4
43.3
63.7
-66.1
70.3
-24.2
38.2
65.3
-45.6
3.5
37.0
-4.8
-28.3
29.7
135.7
-5.9
.0
.0
25.7
360.3
-3.9
86.4
1.5
-58.5
41.2
-16.5
-16.7
151.5
64.0
51.4
3.6
-6.2
-3.3
16.1
197.2
-1.6
-2.0
.2
27.3
249.7
61.7
113.8
-57.2
-73.2
3.9
35.5
-7.2
211.9
84.1
4.2
41.5
8.5
18.4
-7.1
257.6
54
Totalfinancialsources
55
56
57
Floats not included in assets (-)
US. government checkable deposits
Other checkable deposits
Trade credit
58
59
60
61
62
Liabilities not identified as assets (—)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
63
Total identified to sectors as assets
1,410.6
1,530.2 1,764.5 2,278.5
-5.6
.0
.7
20.1
113.9
85.0
-10.3
-39.8
20.7
46.3
79.1
13.1
128.3
31.6
-3.0
75.6
2.3
-44.8
4.6
260.0
1,805.1 2,585.6 2,332.5
2.2
.0
.7
35.5
251.6
-13.7
81.9
-36.6
13.7
45.7
-14.4
35.7
292.0
142.4
86.5
51.9
4.9
-25.6
17.6
342.0
-.2
.0
.7
20.0
-8.8
150.9
173.1
2.5
-39.6
-33.5
14.3
16.4
204.5
107.8
29.7
35.6
14.2
-50.3
15.4
359.6
2,364.0 2,092.0
-14.6
.0
.6
8.1
64.3
184.9
-66.1
-62.4
-4.4
67.8
175.9
14.6
167.0
69.4
-17.5
87.2
-11.6
-44.6
-15.5
272.3
.2
.0
.8
23.8
214.4
-26.6
-87.4
-56.4
83.8
50.3
76.9
-8.4
129.3
-2.6
-61.7
92.2
2.7
-40.7
6.7
289.2
-7.8
.0
.7
28.7
185.6
30.8
-60.6
-42.9
42.9
100.8
49.3
29.6
12.3
-48.3
37.3
87.4
3.9
-43.8
11.9
118.9
1,759.5 1,679.0 1,689.9
3.3
8.5
9.1
-13.1
4.5
9.7
.7
1.6
4.1
-1.5
-1.3
16.5
-4.7
-2.8
-.9
2.9
8.3
25.7
2.1
-5.2
22.2
-15.5
-6.2
12.5
-2.4
.6
-25.7
-1.4
-1.1
5.6
15.2
-6.2
14.1
-30.3
-4.3
2.3
.2
1.6
-24.0
.1
-35.4
-.6
26.2
6.2
1.3
-45.3
-.2
-4.9
27.9
14.0
-46.0
-.2
4.2
82.2
1.0
-41.9
-.2
-2.7
41.7
-1.1
-7.3
-.2
.5
60.8
18.2
-98.0
-.2
-10.4
66.6
1.2
-20.9
-.2
24.0
21.6
-8.6
48.2
-.2
-29.1
4.4
-.3
-66.0
-.2
5.3
117.3
4.2
-171.5
-.2
11.3
62.1
-4.6
147.5
-.2
1.7
-17.1
-3.8
61.0
1,801.3 1,439.9
1,680.5
1,447.2 1,541.2 1,767.2 2,219.5
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables F.6 and F.7. For ordering address, see inside front cover.
.8
.0
.4
35.2
309.2
44.7
117.3
-70.3
-23.5
15.3
65.5
-11.0
317.0
120.1
61.9
49.0
4.6
-10.2
1.6
289.7
992.6 1,153.0
1,783.2 2,567.4 2,277.1
2,288.2 2,210.9
2. Excludes corporate equities and mutual fund shares,
Flow of Funds
A43
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1994
1993
Transaction category or sector
1991
1992
1993
1994
Q2
Q4
Q3
Q
1
Q2
Q3
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
11,181.5
11,720.7
12,363.1
12,982.5
12,008.9
12,1553
12,363.1
12,487.0
12,633.0
12,780.4
12,982.5
By sector and instrument
2 US. government
3 Treasury securities
4 Budget agency issues and mortgages
2,776.4
2,757.8
18.6
3,080.3
3,061.6
18.8
3,336.5
3,309.9
26.6
3,492.3
3,465.6
26.7
3,201.2
3,180.6
20.6
3,247.3
3,222.6
24.7
3,336.5
3,309.9
26.6
3,387.7
3,361.4
26.3
3,395.4
3,368.0
27.4
3,432.6
3,404.1
28.5
3,492.3
3,465.6
26.7
5 Private
8,405.1
8,640.4
9,026.6
9,490.2
8,807.7
8,908.1
9,026.6
9,099.3
9,237.6
9,347.7
9,490.2
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Commercial paper
Other loans
1,108.6
1,086.9
3,920.0
2,780.0
304.8
755.8
79.3
797.4
686.0
98.5
707.8
1,139.7
1,154.4
4,043.9
2,959.6
293.6
710.3
80.4
803.0
672.1
107.1
720.2
1,217.8
1,229.6
4,206.5
3,147.3
287.5
690.6
81.2
866.5
677.2
117.8
711.1
1,202.7
1,251.6
4,400.6
3,339.2
289.2
689.7
82.5
984.0
754.7
139.2
757.4
1,202.2
1,194.8
4,109.9
3,038.1
289.4
701.4
81.0
800.2
666.3
124.0
710.2
1,210.0
1,212.8
4,166.6
3,098.3
288.2
699.0
81.1
824.3
665.6
123.2
705.5
1,217.8
1,229.6
4,206.5
3,147.3
287.5
690.6
81.2
866.5
677.2
117.8
711.1
1,222.3
1,238.5
4,233.3
3,181.1
286.3
684.7
81.3
863.6
687.3
129.9
724.3
1,229.5
1,247.5
4,290.9
3,234.7
287.8
686.6
81.9
895.3
707.4
135.7
731.2
1,209.9
1,251.0
4,351.9
3,291.9
289.1
688.6
82.3
931.8
726.4
138.7
738.1
1,202.7
1,251.6
4,400.6
3,339.2
289.2
689.7
82.5
984.0
754.7
139.2
757.4
17
18
19
20
21
22
By borrowing sector
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
State and local government
3,784.7
3,709.3
135.0
1,116.4
2,458.0
911.1
4,002.3
3,710.5
136.0
1,074.1
2,500.4
927.5
4,292.0
3,741.5
138.3
1,049.1
2,554.1
993.2
4,641.3
3,885.0
140.6
1,068.8
2,675.6
963.9
4,093.0
3,729.8
136.7
1,059.4
2,533.7
984.9
4,190.9
3,729.1
138.7
1,052.2
2,538.3
988.0
4,292.0
3,741.5
138.3
1,049.1
2,554.1
993.2
4,331.7
3,774.0
136.6
1,050.4
2,586.9
993.6
4,425.0
3,816.3
141.3
1,055.6
2,619.3
996.3
4,527.1
3,845.8
142.8
1,062.2
2,640.9
974.8
4,641.3
3,885.0
140.6
1,068.8
2,675.6
963.9
23 Foreign credit market debt held in
United States
298.8
310.9
357.8
345.8
332.0
3513
357.8
3403
339.2
338.8
345.8
74
75 Bank loans n.e.c
7,6 Commercial paper
27 U.S. government and other loans
129.5
21.6
81.8
65.9
143.9
23.9
77.7
65.3
203.4
24.6
68.7
61.1
220.4
26.1
41.4
57.8
171.9
25.9
72.1
62.0
193.0
26.2
71.7
60.3
203.4
24.6
68.7
61.1
210.6
26.2
43.3
60.3
212.9
25.1
42.0
59.2
214.2
26.3
39.9
58.4
220.4
11,4803
12,031.6
12,720.8
13,328.3
12,340.9
12,506.6
12,720.8
12,8273
12,972.2
13,119.2
13,3283
6
7
8
9
10
11
1?
n
14
n
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
26.1
41.4
57.8
Financial sectors
79 Total credit market debt owed by
financial sectors
30
31
32
33
34
35
36
37
38
39
By instrument
U.S. government-related
Government-sponsored enterprises securities
Mortgage pool securities
LoansfromU.S. government
Corporate bonds
Open market paper
LoansfromFederal Home Loan Banks
By borrowing sector
40 Government-sponsored enterprises
41 Federallyrelatedmortgage pools
47 Privatefinancialsectors
43 Commercial banks
44 Bank holding companies
45 Funding corporations
46 Savings institutions
47 Credit unions
48 Life insurance companies
49 Finance companies
50 Mortgage companies
51 Real estate investment trusts (REITs)
52 Issuers of asset-backed securities (ABSs)
2,752.1
3,004.7
3,297.3
3,722.4
3,096.6
3,204.7
3,2973
3,4153
3,507.6
3,597.7
3,722.4
1,564.2
402.9
1,156.5
4.8
1,187.9
640.0
4.8
78.4
385.7
79.1
1,720.0
443.1
1,272.0
4.8
1,284.8
724.8
5.4
80.5
394.3
79.9
1,881.1
523.7
1,352.6
4.8
1,416.1
844.1
8.9
66.5
393.5
103.1
2,149.3
700.9
1,448.4
.0
1,573.2
944.9
8.8
50.7
442.8
125.9
1,774.5
468.4
1,301.3
4.8
1,322.2
774.8
6.0
73.3
375.9
92.1
1,845.2
510.3
1,330.1
4.8
1,359.5
810.5
7.6
69.2
373.2
98.9
1,881.1
523.7
1,352.6
4.8
1,416.1
844.1
8.9
66.5
393.5
103.1
1,954.5
563.7
1,390.8
.0
1,460.9
880.8
9.0
61.8
408.8
100.4
2,021.1
600.3
1,420.8
.0
1,486.6
904.5
9.1
54.1
410.3
108.5
2,075.9
638.3
1,437.6
.0
1,521.8
925.4
9.2
50.5
420.5
116.2
2,149.3
700.9
1,448.4
.0
1,573.2
944.9
8.8
50.7
442.8
125.9
407.7
1,156.5
1,187.9
65.0
112.3
139.1
94.6
.0
.0
393.0
22.2
13.6
329.1
447.9
1,272.0
1,284.8
73.8
114.6
161.6
87.8
.0
.0
389.4
30.2
13.9
391.7
528.5
1,352.6
1,416.1
79.5
123.4
169.9
99.0
.2
.2
390.5
29.2
17.4
473.2
700.9
1,448.4
1,573.2
89.5
131.8
200.9
111.7
.5
.6
440.8
16.3
19.1
527.8
473.2
1,301.3
1,322.2
76.6
120.2
166.5
93.4
.1
.2
373.8
32.0
14.4
422.3
515.1
1,330.1
1,359.5
77.9
120.3
166.3
96.8
.2
.1
380.0
31.8
15.8
443.8
528.5
1,352.6
1,416.1
79.5
123.4
169.9
99.0
.2
.2
390.5
29.2
17.4
473.2
563.7
1,390.8
1,460.9
78.4
124.2
190.6
97.6
.3
.3
401.9
23.8
17.7
494.9
600.3
1,420.8
1,486.6
82.1
126.8
191.1
99.0
.3
.3
414.2
19.3
18.3
504.0
638.3
1,437.6
1,521.8
87.5
129.6
200.1
102.7
.4
.3
420.9
17.5
18.8
514.5
700.9
1,448.4
1,573.2
89.5
131.8
200.9
111.7
.5
.6
440.8
16.3
19.1
527.8
All sectors
53 Total credit market debt, domestic and foreign....
54
55
56
57
58
59
60
61
U.S. government securities
Tax-exempt securities
Corporate and foreign bonds
Open market paper
Other loans
14,232.3
15,0363
16,018.1
17,050.7
15,437.5
15,7113
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
4,335.7
1,108.6
1,856.5
3,924.8
797.4
785.9
565.9
857.5
4,795.5
1,139.7
2,023.1
4,049.3
803.0
776.6
579.0
870.2
5,212.8
1,217.8
2,277.0
4,215.5
866.5
768.4
580.0
880.1
5,641.6
1,202.7
2,416.9
4,409.4
984.0
831.6
623.5
941.1
4,970.9
1,202.2
2,141.5
4,116.0
800.2
765.5
572.0
869.1
5,087.7
1,210.0
2,216.3
4,174.2
824.3
761.0
568.2
869.6
5,212.8
1,217.8
2,277.0
4,215.5
866.5
768.4
580.0
880.1
5,342.2
1,222.3
2,329.9
4,242.4
863.6
775.4
582.0
884.9
5,416.5
1,229.5
2,364.9
4,300.1
895.3
786.6
587.9
898.9
5,508.6
1,209.9
2,390.5
4,361.1
931.8
803.2
599.2
912.7
5,641.6
1,202.7
2,416.9
4,409.4
984.0
831.6
623.5
941.1
1. Data in
also appear
quarterly
this table For ordering in the Board's Z.l (780) cover. statistical release,
tables L.2 through L.4.
address, see inside front
A44
Domestic Financial Statistics • July 1995
1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1993
Transaction category or sector
1991
1992
1993
1994
1994
Q2
CREDIT MARKET DEBT OUTSTANDING
1 Total credit market assets
2 Private domestic nonfinancial sectors
3 Households
4 Nonfarm noncorporate business
Nonfinancial corporate business
5
6 State and local governments
7 U.S. government
8 Foreign
9 Financial sectors
10 Government-sponsored enterprises
11 Federally related mortgage pools
12 Monetary authority
13 Commercial banking
14
U.S. commercial banks
Foreign banking offices
15
Bank holding companies
16
Banks in U.S. affiliated areas
17
18 Funding corporations
Thrift institutions
19
Life insurance companies
20
21
Other insurance companies
Private pension funds
22
23
State and local government retirement funds
24
Finance companies
Mortgage companies
25
Mutual funds
26
Closed-end funds
27
28
Money market funds
Real estate investment trusts (REITs)
29
Brokers and dealers
30
31
Asset-backed securities issuers (ABSs)
Bank personal trusts
32
Q3
Q4
Q1
Q2
Q3
Q4
2
14,232.3
15,036.3
16,018.1
17,050.7
15,437.5
15,711.3
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
2,240.2
1,446.5
44.1
196.2
553.3
246.9
958.1
10,787.2
390.7
1,156.5
272.5
2,853.3
2,502.5
319.2
11.9
19.7
51.5
1,192.6
1,199.6
376.6
693.0
479.9
484.9
60.3
450.5
50.3
402.7
7.0
124.0
317.8
223.5
2,318.0
1,523.1
42.9
225.4
526.5
235.0
1,052.7
11,430.6
459.7
1,272.0
300.4
2,948.6
2,571.9
335.8
17.5
23.4
75.0
1,134.5
1,278.8
389.4
730.4
514.3
486.6
60.5
574.2
67.7
404.1
8.1
117.1
377.9
231.5
2,338.9
1,525.9
39.7
248.1
525.2
216.6
1,175.1
12,287.5
549.8
1,352.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.6
482.8
60.4
738.2
77.9
418.8
8.6
126.3
458.0
240.9
2,663.4
1,932.3
37.7
266.2
427.2
197.0
1,304.1
12,886.2
668.7
1,448.4
368.2
3,252.9
2,869.6
337.0
18.6
27.8
105.6
1,168.3
1,439.3
443.8
727.7
586.4
549.6
34.5
701.6
81.4
449.2
9.3
94.3
509.8
247.2
2,296.1
1,473.3
41.4
227.3
554.2
223.1
1,084.0
11,834.2
495.5
1,301.3
318.2
2,998.8
2,628.5
327.1
18.4
24.8
74.3
1,130.0
1,343.9
405.3
762.6
526.5
473.7
64.1
659.9
74.5
403.9
8.3
149.0
408.1
236.2
2,284.8
1,459.6
40.6
234.7
549.9
218.8
1,118.1
12,089.6
531.8
1,330.1
324.2
3,036.4
2,670.2
322.3
18.7
25.3
82.4
1,136.5
1,372.1
414.6
785.6
533.4
474.0
63.8
703.6
76.0
400.6
8.6
147.1
430.2
238.7
2,338.9
1,525.9
39.7
248.1
525.2
216.6
1,175.1
12,287.5
549.8
1,352.6
336.7
3,090.8
2,721.5
326.0
17.5
25.8
93.1
1,132.7
1,383.9
422.7
770.6
542.6
482.8
60.4
738.2
77.9
418.8
8.6
126.3
458.0
240.9
2,432.9
1,631.1
38.8
243.8
519.2
206.3
1,206.8
12,396.5
572.0
1,390.8
341.5
3,120.2
2,743.8
331.8
18.2
26.4
97.5
1,134.2
1,404.2
429.6
746.2
550.2
494.5
49.5
720.1
80.0
422.2
8.8
112.3
479.5
243.3
2,513.8
1,723.4
38.4
250.9
501.1
204.0
1,218.5
12,543.5
597.9
1,420.8
351.6
3,156.2
2,780.3
330.8
18.3
26.8
106.3
1,146.1
1,409.1
434.8
738.5
563.0
511.3
40.4
722.9
80.8
422.0
9.0
99.2
489.2
244.6
2,551.1
1,789.3
37.9
253.9
470.0
203.3
1,251.3
12,711.1
629.4
1,437.6
356.8
3,204.2
2,822.4
335.5
19.0
27.3
111.7
1,160.1
1,430.3
438.8
734.1
573.3
524.1
37.0
718.2
81.1
425.1
9.1
96.2
498.5
245.3
2,663.4
1,932.3
37.7
266.2
427.2
197.0
1,304.1
12,886.2
668.7
1,448.4
368.2
3,252.9
2,869.6
337.0
18.6
27.8
105.6
1,168.3
1,439.3
443.8
727.7
586.4
549.6
34.5
701.6
81.4
449.2
9.3
94.3
509.8
247.2
14,232.3
15,0363
16,018.1
17,050.7
15,437.5
15,711.3
16,018.1
16,242.6
16,479.8
16,716.9
17,050.7
55.4
10.0
16.3
405.7
4,138.3
96.4
5,044.8
1,020.6
2,350.7
488.4
539.6
355.8
289.6
813.9
188.9
935.9
71.2
608.3
2,992.2
51.8
8.0
16.5
433.0
4,516.5
132.8
5,059.1
1,134.4
2,293.5
415.2
543.6
392.3
280.1
1,042.1
217.3
977.4
79.6
629.6
3,160.2
53.4
8.0
17.0
468.2
4,974.7
177.7
5,152.4
1,251.7
2,223.2
391.7
558.9
457.8
269.1
1,429.3
279.3
1,026.4
84.2
660.9
3,402.3
53.2
8.0
17.6
488.4
5,061.2
263.8
5,261.5
1,241.4
2,183.4
412.4
605.3
536.9
282.1
1,463.0
276.2
1,102.0
86.5
655.6
3,687.8
53.9
8.0
16.7
450.2
4,730.8
145.2
5,097.1
1,168.0
2,255.0
401.1
549.8
450.4
272.8
1,225.8
234.7
989.7
81.2
637.6
3,248.3
55.6
8.0
16.8
459.4
4,887.8
166.9
5,088.5
1,181.9
2,236.6
389.4
547.9
472.5
260.2
1,342.4
254.5
1,009.6
82.8
651.2
3,314.6
53.4
8.0
17.0
468.2
4,974.7
177.7
5,152.4
1,251.7
2,223.2
391.7
558.9
457.8
269.1
1,429.3
279.3
1,026.4
84.2
660.9
3,402.3
56.4
8.0
17.1
473.2
4,923.0
204.2
5,158.9
1,220.5
2,233.8
382.6
576.2
472.7
273.2
1,438.7
282.7
1,023.6
89.0
655.3
3,510.9
54.9
8.0
17.3
475.2
4,915.8
223.8
5,180.5
1,229.7
2,214.1
379.0
570.3
510.6
276.8
1,443.6
278.0
1,045.7
82.4
640.2
3,571.1
55.5
8.0
17.5
481.2
5,045.5
243.4
5,198.2
1,205.4
2,198.9
402.9
579.9
536.4
274.7
1,505.7
263.3
1,076.6
85.4
656.8
3,662.8
53.2
8.0
17.6
488.4
5,061.2
263.8
5,261.5
1,241.4
2,183.4
412.4
605.3
536.9
282.1
1,463.0
276.2
1,102.0
86.5
655.6
3,687.8
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
33 Total credit market debt
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
Treasury currency
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Investment in bank personal trusts
Miscellaneous
53 Total liabilities
29,609.6 31,360.1 33,751.8 35,475.6 32,356.5 33,049.4 33,751.8 34,083.7
34,416.5 35,016.8 35,475.6
Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
22.3
4,863.6
2,444.4
19.6
5,462.9
2,411.5
20.1
6,186.5
2,421.7
21.1
6,048.8
2,485.0
20.0
5,683.7
2,407.1
20.3
5,941.7
2,420.3
20.1
6,186.5
2,421.7
20.4
6,052.2
2,460.2
20.8
5,877.7
2,473.6
21.0
6,135.1
2,482.9
21.1
6,048.8
2,485.0
Floats not included in assets (—)
57 U.S. government checkable deposits
58 Other checkable deposits
59 Trade credit
3.8
40.4
-129.3
6.8
42.0
-124.6
5.6
40.7
-101.7
3.4
38.0
-102.3
3.5
41.6
-135.0
2.2
33.7
-130.4
5.6
40.7
-101.7
.3
36.3
-121.2
.9
38.7
-130.7
1.2
30.6
-127.2
3.4
38.0
-102.3
-4.8
-4.2
9.2
17.8
-330.7
-4.9
-9.3
38.1
25.2
-398.4
-5.1
-4.7
120.2
26.2
-477.2
-5.4
-6.5
162.3
25.1
-519.4
-5.0
-5.7
108.0
24.3
-436.1
-5.1
-7.8
132.6
24.3
-480.5
-5.1
-4.7
120.2
26.2
-477.2
-5.2
-7.7
133.4
15.3
-491.2
-5.2
-7.4
160.0
21.7
-461.4
-5.3
-3.5
186.1
21.0
-481.2
-5.4
-6.5
162.3
25.1
-519.4
43,171.9 44,034.1
44,435.1
60
61
62
63
64
Liabilities not identified as assets (-)
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
65 Total identified to sectors as assets
37,337.6 39,679.1 42,776.1 44,435.1 40,871.8 41,862.8 42,776.1 43,056.7
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release,
tables L.6 and L.7. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares,
Selected Measures
A45
2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
Monthly data seasonally adjusted, and indexes 1987 = 100, except as noted
1995r
1994
Measure
1992
1994
1993
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 Industrial production1
107.6
112.0
118.1
119.1
119.0
119.5
120.3
121.7
122.0
122.0
121.6
121.1
Market groupings
7 Products, total
3 Final, total
Consumer goods
4
5
Equipment
6
7 Materials
106.5
109.0
105.9
113.4
98.8
109.2
110.7
113.4
109.4
119.3
102.4
114.1
115.9
118.4
113.2
126.5
108.1
121.5
116.7
119.2
113.8
127.5
109.2
122.8
116.4
118.9
113.0
128.0
108.6
122.9
116.9
119.2
113.0
128.8
109.9
123.4
117.5
119.8
113.9
128.9
110.6
124.6
118.7
121.2
115.5
130.1
110.9
126.3
119.1
121.6
115.7
130.9
111.3
126.5
119.0
121.7
115.7
131.0
110.8
126.5
118.6
121.2
114.7
131.3
110.5
126.2
118.0
120.7
114.1
131.0
109.8
126.0
Industry groupings
8 Manufacturing
108.0
112.9
119.7
120.9
120.9
121.5
122.6
124.2
124.5
124.2
124.0
123.3
79.2
80.9
83.4
83.8
83.6
83.8
84.4
85.2
85.2
84.7
84.3
83.5
97.7
104.4
108.8r
110.0
109.0
107.0
111.0
101.0
104.0
111.0
108.0
99.0
11 Nonagricultural employment, total4
12 Goods-producing, total
Manufacturing, total
13
14
Manufacturing, production workers
15 Service-producing
16 Personal income, total
17 Wages and salary disbursements
Manufacturing
18
19 Disposable personal income5
20 Retail sales5
106.5
94.2
95.3
94.9
110.5
135.6
131.6
118.0
137.0
126.4
108.4
94.3
94.8
94.9
112.9
141.4
136.2
120.0
142.5
134.7
111.3
95.6
95.1
96.1
116.3
150.0
145.0
126.0
150.8
145.lr
111.7
95.8
95.2
96.3
116.8
150.7
145.5
126.2
151.6
146.5
112.0
95.9
95.3
96.4
117.1
151.7
146.4
126.7
152.6
147.6
112.2
96.1
95.5
96.7
117.3
153.7
148.2
128.8
154.8
149.3
112.7
96.6
95.7
97.1
117.8
153.7
148.1
127.9
154.7
149.8
112.9
96.8
95.9
97.3
118.1
154.7
149.0
128.6
155.8
150.0
113.1
97.1
96.2
97.6
118.2
156.0
150.0
129.1
156.9
150.7
113.4
97.0
96.3
97.8
118.6
156.8
150.6
131.2
157.7
149.6
113.6
97.3
96.2
97.8
118.8
157.7
150.9
130.7
158.6
150.8
113.6
97.1
96.1
97.6
118.9
n.a.
n.a.
n.a.
n.a.
150.2
Prices6
?1 Consumer (1982-84=100)
22 Producer finished goods (1982=100)
140.3
123.2
144.5
124.7
148.2
125.5
149.0
126.5
149.4
125.6
149.5
125.8
149.7
126.1
149.7
126.2
150.3
126.5
150.9
126.9
151.4
126.9
151.9
127.6
9 Capacity utilization, manufacturing (percent)2..
10 Construction contracts3
covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current Business.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the
price indexes can be obtained from the U.S. Department of Labor, Bureau of Labor
Statistics, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for
series mentioned in notes 3 and 6, can also be found in the Survey of Current Business.
Figures for industrial production for the latest month are preliminary, and many figures
for the three months preceding the latest month have been revised. See "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June
1990), pp. 411-35. See also "Industrial Production Capacity and Capacity Utilization
since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the Federal
Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W.
Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings. Series
2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1995r
1994
Category
1992
1993
1994
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
HOUSEHOLD SURVEY DATA 1
1 Civilian labor force2
Employment
Nonagricultural industries3
?
3 Agriculture
4
5
Rate (percent of civilian labor force)
126,982
128,040
131,056
131,291
131,646
131,718
131,725
132,136
132,308
132,511
132,737
114,391
3,207
116,232
3,074
119,651
3,409
120,233
3,411
120,647
3,494
120,903
3,500
121,038
3,532
121,064
3,575
121,469
3,656
121,576
3,698
121,478
3,594
9,384
7.4
8,734
6.8
7,996
6.1
7,647
5.8
7,505
5.7
7,315
5.6
7,155
5.4
7,498
5.7
7,183
5.4
7,237
5.5
7,665
5.8
108,604
110,525
113,423
114,186
114,348
114,882
115,113
115,282
115,637
115,814
115,805
18,104
635
4,492
5,721
25,354
6,602
29,052
18,653
18,003
611
4,642
5,787
25,675
6,712
30,278
18,817
18,064
604
4,916
5,842
26,362
6,789
31,805
19,041
18,096
605
4,972
5,865
26,565
6,794
32,138
19,151
18,142
599
4,974
5,867
26,629
6,786
32,231
19,120
18,183
600
5,044
5,888
26,772
6,791
32,414
19,190
18,226
597
5,050
5,911
26,887
6,785
32,506
19,151
18,271
595
5,092
5,913
26,939
6,779
32,564
19,129
18,291
592
5,062
5,931
27,029
6,782
32,786
19,164
18,280
592
5,130
5,940
27,007
6,795
32,906
19,164
18,252
589
5,110
5,953
27,028
6,796
32,912
19,165
ESTABLISHMENT SURVEY DATA
4
6 Nonagricultural payroll employment
7
8
9
10
11
1?
13
14
Contract construction
Transportation and public utilities
Trade
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, selfemployed persons, household and unpaid family workers, and members of the armed
forces. Data are adjusted to the March 1992 benchmark, and only seasonally adjusted data
are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.
A46
Domestic Nonfinancial Statistics • July 1995
2.12
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1994
1994
1995
1994
1995
1995
Series
Q2
Q3
Qlr
Q4
Output (1987=100)
Q2
Q3
Q4
Q1
Capacity (percent of 1987 output)
Q2
Q4
Q3
Ql r
Capacity utilization rate (percent)2
1 Total industry
117.4
118.8
120.5
121.8
140.0
140.9
141.9
143.1
83.8
84.3
84.9
2 Manufacturing
118.9
120.5
122.7
124.2
143.1
144.2
145.3
146.6
83.1
83.6
84.5
84.7
Primary processing3 4
Advanced processing
114.7
120.9
115.9
122.7
118.4
124.8
119.3
126.5
131.0
148.7
131.6
150.0
132.3
151.3
133.2
152.9
87.6
81.3
88.1
81.8
89.5
82.5
89.6
82.8
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment. . .
124.1
105.4
114.4
120.2
106.9
157.6
156.8
133.3
126.5
106.6
114.1
115.8
111.4
162.6
163.5
135.0
129.4
107.9
119.4
123.3
113.9
167.5
169.4
141.5
131.5
108.8
120.0
125.4
112.9
171.5
173.8
146.2
150.2
115.5
125.0
127.9
120.5
179.0
179.9
158.5
151.6
116.0
125.2
128.4
120.5
181.6
184.1
160.3
153.1
116.5
125.4
128.8
120.5
184.1
188.5
162.2
154.9
117.1
126.7
130.9
120.9
187.8
193.8
164.2
82.6
91.2
91.6
93.9
88.7
88.0
87.1
84.1
83.4
91.9
91.1
90.2
92.4
89.6
88.8
84.2
84.6
92.7
95.2
95.8
94.5
91.0
89.9
87.2
84.9
92.9
94.7
95.8
93.4
91.3
89.7
89.0
84.2
82.1
80.8
80.5
129.8
129.4
129.1
128.8
64.9
63.5
62.6
62.5
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
113.1
108.7
115.9
123.6
124.3
106.3
113.8
108.9
118.5
124.4
126.9
104.9
115.3
111.6
120.6
126.0
130.2
106.5
116.1
111.8
120.0
129.3
135.5
121.4
127.1
153.3
130.8
115.2
136.3
122.0
127.7
154.7
131.6
115.1
137.1
122.7
128.4
156.2
115.1
83.9
90.1
91.6
81.4
95.6
92.2
84.0
89.7
93.2
81.1
97.0
91.1
84.6
91.4
94.4
81.4
98.9
92.5
84.7
91.1
93.5
82.8
108.5
134.8
120.8
126.6
151.9
130.0
115.3
94.3
100.7
117.2
118.0
100.1
118.1
118.2
99.2
116.3
117.3
100.2
116.8
117.4
111.5
135.0
132.6
111.5
135.4
133.1
111.4
135.8
133.6
111.4
136.3
134.1
90.3
86.8
89.0
89.8
87.2
88.8
89.0
85.6
87.8
89.9
85.7
87.5
1973
1975
Previous cycle5
High
Low
High
3
4
20 Mining
21 Utilities
22 Electric
Low
Latest cycle6
High
Low
1994
Apr.
1994
Nov.
85.1
1995
Dec.
Jan.r
Feb.r
Mar.
Apr?
Capacity utilization rate (percent^ 2
1 Total industry
89.2
72.6
87.3
71.8
84.9
78.0
83.6
84.8
85.5
85.5
85.2
84.7
84.1
2 Manufacturing
88.9
70.8
87.3
70.0
85.2
76.6
83.0
84.4
85.2
85.2
84.7
84.3
83.5
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
89.0
83.5
77.9
76.2
87.2
81.3
89.5
82.4
90.8
83.0
90.2
83.2
89.4
82.8
89.2
82.4
88.3
81.6
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
88.8
90.1
100.6
105.8
92.9
68.5
62.2
66.2
66.6
61.3
86.9
87.6
102.4
110.4
90.5
65.0
60.9
46.8
38.3
62.2
84.0
93.3
92.8
95.7
88.7
73.7
76.3
74.0
72.1
75.0
82.6
90.0
91.9
95.1
88.1
84.3
91.6
95.0
94.6
95.6
85.4
94.7
98.0
100.3
95.2
85.3
94.3
95.6
96.5
94.6
84.9
92.4
94.0
94.9
93.0
84.4
91.9
94.5
96.1
92.6
83.3
90.0
93.5
94.9
91.7
96.4
87.8
93.4
74.5
63.8
51.1
92.1
89.4
93.0
64.9
71.1
44.5
84.0
84.9
85.1
72.5
76.6
57.6
87.6
86.4
86.2
91.0
89.6
87.2
91.1
90.8
88.8
92.0
90.1
89.4
91.2
89.7
89.7
90.8
89.2
88.0
90.3
88.4
83.7
77.0
66.6
81.1
66.9
88.4
79.4
64.7
62.6
62.5
62.4
62.5
62.5
62.6
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.9
92.0
96.9
87.9
102.0
96.7
71.8
60.4
69.0
69.9
50.6
81.1
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
86.7
92.1
94.8
85.9
97.0
88.5
80.4
78.9
86.5
78.9
74.8
83.7
83.6
90.1
90.5
80.8
92.7
93.2
84.6
91.7
95.0
81.6
98.5
93.5
85.2
91.8
95.2
82.5
105.0
93.7
85.1
92.5
93.5
83.8
105.6
93.4
84.7
90.1
93.5
82.6
100.6,
93.5
84.3
90.7
93.4
82.1
84.0
90.2
94.1
81.8
95.9
95.9
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
86.5
92.6
94.8
86.0
83.2
86.5
90.3
85.1
87.9
88.2
85.8
88.0
89.8
84.7
87.1
89.7
85.6
87.5
90.3
86.8
88.7
89.8
84.7
86.4
90.0
85.9
87.5
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing3
Advanced processing4
20 Mining
21 Utilities
22 Electric
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see die inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally
adjusted index of industrial production to the corresponding index of capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; 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.
Selected Measures
A47
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1
Monthly data seasonally adjusted
1992
Group
portion
1995
1994
1994
avg.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb/
Mar.
Apr.p
Index (1987 = 100)
MAJOR MARKETS
100.0
118.1
116.7
117.4
118.0
118.2
119.1
119.0
119.5
120.3
121.7
122.0
122.0
121.6
121.1
Products
Final products
Consumer goods, total
Durable consumer goods
Automotive products
Autos and trucks
Autos, consumer
Trucks, consumer
Auto parts and allied goods
Other
Appliances televisions and air
conditioners
Carpeting and furniture
Miscellaneous home goods
Nondurable consumer goods
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
Fuels
Residential utilities
60.9
46.6
28.5
5.5
2.5
1.6
.9
.7
.9
3.0
115.9
118.4
113.2
119.4
125.5
125.4
94.9
180.7
123.2
114.1
114.7
117.3
112.3
117.8
124.1
125.0
96.0
177.2
119.8
112.5
115.3
117.8
112.8
116.4
120.1
118.1
90.4
168.0
121.9
113.2
115.9
118.4
113.5
118.0
121.0
118.5
89.6
170.7
123.8
115.4
116.2
118.5
113.3
118.0
119.5
115.0
86.5
166.6
126.6
116.7
116.7
119.2
113.8
120.7
124.9
126.0
91.7
189.0
120.0
117.1
116.4
118.9
113.0
119.1
123.8
122.5
90.2
181.5
123.9
115.2
116.9
119.2
113.0
119.4
124.5
122.3
92.9
175.5
126.6
115.2
117.5
119.8
113.9
120.5
127.1
126.5
94.0
185.8
125.7
115.0
118.7
121.2
115.5
123.4
131.1
131.4
100.5
187.3
127.8
116.8
119.1
121.6
115.7
124.5
131.7
132.7
103.6
184.6
126.9
118.3
119.0
121.7
115.7
123.8
133.2
134.8
103.6
191.0
127.0
115.9
118.6
121.2
114.7
121.3
130.2
131.4
103.1
181.7
125.2
113.8
118.0
120.7
114.1
118.0
125.1
124.5
93.6
180.6
123.9
111.9
.7
.8
1.5
23.0
10.3
2.4
4.5
2.9
2.9
.9
2.1
126.0
105.0
113.8
111.8
110.5
95.9
129.7
104.7
113.9
106.7
116.8
120.7
104.5
113.2
111.0
110.2
96.4
128.4
105.1
110.0
108.3
110.5
125.6
103.3
113.1
112.0
110.9
97.2
129.5
105.6
112.4
107.4
114.4
132.8
103.6
114.2
112.5
110.5
96.3
131.4
105.8
115.5
106.5
119.3
129.7
108.4
115.3
112.2
110.6
96.5
131.1
105.2
114.3
105.8
117.8
135.1
106.9
114.6
112.2
111.2
95.9
129.8
105.9
113.1
105.8
116.1
130.2
104.1
114.6
111.7
111.9
95.5
127.5
105.2
110.5
107.4
111.8
124.9
107.4
114.9
111.5
112.2
96.2
127.2
103.6
109.8
103.9
112.2
126.9
105.9
114.5
112.4
112.4
96.2
130.5
104.6
110.6
109.8
110.7
131.5
108.0
114.9
113.7
114.3
96.8
134.0
104.3
109.6
107.4
110.3
132.1
110.2
116.5
113.6
113.1
96.1
137.0
103.4
110.4
107.4
111.6
125.7
107.9
115.7
113.8
113.8
94.7
135.0
104.1
112.7
109.1
114.2
121.3
106.2
114.4
113.2
113.3
94.3
133.9
104.2
110.9
113.7
109.5
118.6
104.6
112.8
113.3
112.8
92.9
134.7
105.0
112.8
112.5
112.7
?8
79
30
31
37
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
18.1
14.0
5.7
1.5
4.0
2.6
1.2
1.7
3.4
.5
.2
126.5
146.7
176.4
284.2
120.9
137.9
148.0
129.4
71.0
90.8
137.3
124.9
143.5
170.2
270.8
119.2
138.0
145.9
127.1
73.6
93.2
132.4
125.4
144.5
171.8
271.6
120.7
135.3
140.0
129.4
72.4
94.6
135.2
125.8
145.5
173.7
276.5
120.6
136.1
141.7
130.5
71.3
94.2
137.8
126.4
146.9
177.1
282.6
122.1
132.6
138.2
132.6
69.9
93.7
133.3
127.5
148.9
179.7
288.9
122.3
137.9
149.4
133.5
69.2
89.6
134.5
128.0
149.5
181.1
295.8
123.0
136.8
147.7
133.3
68.8
93.9
138.4
128.8
150.9
183.2
300.5
124.4
137.1
149.2
134.3
68.7
88.3
142.0
128.9
151.0
184.2
305.7
124.1
137.5
151.6
133.1
69.0
86.0
143.1
130.1
152.6
188.3
311.9
124.1
137.8
152.6
133.1
68.7
86.0
153.6
130.9
153.7
188.7
318.0
125.9
139.7
157.2
133.5
68.6
86.7
153.6
131.0
154.1
189.0
325.3
126.5
140.9
158.5
132.9
68.0
89.1
147.4
131.3
154.7
191.6
331.8
126.3
139.5
155.4
132.6
68.0
85.7
148.3
131.0
154.1
192.8
338.4
126.0
135.2
146.7
130.8
67.9
89.2
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.3
5.3
9.0
108.1
106.8
109.1
106.9
104.7
108.5
107.7
106.1
108.8
108.5
106.4
110.1
109.1
107.9
110.0
109.2
108.2
109.9
108.6
108.6
108.7
109.9
109.7
110.1
110.6
109.8
111.3
110.9
111.6
110.7
111.3
112.2
110.9
110.8
111.3
110.6
110.5
111.4
110.2
109.8
109.7
110.0
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
Durable goods materials
Durable consumer parts
Equipment parts
Other
Basic metal materials
Nondurable goods materials
Textile materials
Paper materials
Chemical materials
Other
Energy materials
Primary energy
Converted fuel materials
39.1
20.6
3.9
7.5
9.1
3.0
8.9
1.1
1.8
4.0
2.0
9.6
6.3
3.3
121.5
131.2
132.2
143.1
121.3
119.7
118.4
105.3
118.7
123.2
116.9
105.2
100.3
114.9
119.7
129.2
130.1
139.6
120.4
119.7
115.9
104.4
116.1
120.6
113.3
104.8
100.9
112.5
120.5
129.8
129.7
140.5
121.2
120.0
118.2
104.2
118.9
123.8
114.8
104.6
100.4
112.8
121.2
130.0
129.2
142.1
120.8
119.6
118.1
104.8
118.4
122.9
116.5
106.7
100.2
119.9
121.4
130.9
130.4
143.8
121.1
118.8
118.6
104.8
117.5
123.4
118.6
105.2
100.3
114.9
122.8
132.6
133.2
145.2
122.3
119.3
120.3
105.7
122.5
124.8
118.1
106.1
100.9
116.3
122.9
133.3
133.1
146.7
122.8
121.1
119.8
105.9
121.5
124.0
118.2
105.6
100.8
115.1
123.4
134.2
133.8
149.0
122.7
121.3
120.3
106.9
120.5
124.6
119.5
105.2
100.3
115.1
124.6
136.0
135.8
150.7
124.6
123.2
121.5
110.3
122.1
125.9
119.3
104.9
100.7
113.4
126.3
138.6
139.7
152.3
127.3
126.0
122.8
108.7
121.3
127.5
123.4
105.3
101.7
112.3
126.5
139.1
139.1
153.6
127.6
125.6
122.3
109.8
120.8
128.6
119.1
105.6
101.7
113.4
126.5
139.0
138.9
155.1
126.5
124.1
121.6
107.9
122.0
128.1
116.9
106.4
102.0
115.1
126.2
139.0
137.3
156.1
126.5
124.7
121.7
108.9
122.8
127.9
116.3
105.1
100.8
113.4
126.0
138.3
134.7
156.6
125.5
123.9
121.7
109.1
124.6
127.1
116.2
105.7
101.2
114.8
97.2
95.2
117.6
117.1
116.2
115.7
117.1
116.6
117.7
117.3
118.1
117.7
118.7
118.2
118.6
118.0
119.1
118.5
119.8
119.2
121.1
120.5
121.4
120.8
121.3
120.7
121.0
120.4
120.8
120.2
98.3
26.9
25.6
115.4
112.4
113.1
114.1
111.5
112.5
114.8
112.4
112.8
115.4
113.2
113.2
115.5
113.2
113.2
116.4
113.0
113.8
116.1
112.4
113.3
116.6
112.4
113.3
117.4
113.1
114.2
118.7
114.5
116.2
118.9
114.6
116.3
118.8
114.5
116.1
118.3
113.6
115.1
117.8
113.4
114.2
1 Total index
?
4
6
7
8
9
10
11
n
N
14
15
16
17
18
19
70
?1
22
73
74
75
76
71
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
12.8
146.5
143.2
144.8
145.7
147.7
148.8
149.5
151.0
150.9
152.5
153.3
153.6
154.6
154.7
12.5
29.5
130.7
127.3
128.5
125.1
129.4
126.2
130.0
126.4
131.1
127.2
132.7
128.8
132.7
129.2
133.8
129.9
133.6
131.6
134.7
133.8
135.4
134.0
135.3
133.7
135.4
133.7
134.2
133.2
A48
Domestic Nonfinancial Statistics • July 1995
2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued
Group
SIC
code
1992
proportion
1994
avg.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec,
Jan.r
Apr.p
Feb/
Index (1987 = 100)
MAJOR INDUSTRIES
100.0
118.1
116.7
117.4
118.0
118.2
119.1
119.0
119.5
1203
121.7
122.0
122.0
121.6
121.1
60 Manufacturing
61 Primary processing
62 Advanced processing
85.5
26.5
59.0
119.7
115.3
121.8
118.4
114.0
120.5
119.0
115.2
120.8
119.3
114.7
121.5
119.8
115.3
121.9
120.9
116.3
123.1
120.9
116.2
123.1
121.5
116.6
123.8
122.6
118.4
124.6
124.2
120.3
126.0
124.5
119.8
126.6
124.2
119.1
126.6
124.0
119.0
126.4
123.3
118.2
125.8
63
64
65
66
45.1
2.0
1.4
125.5
106.0
111.4
123.7
103.9
110.2
124.0
106.0
110.1
124.6
106.2
111.8
125.2
106.8
114.0
127.0
105.5
115.5
127.2
107.6
112.4
128.0
106.7
114.8
129.1
106.7
113.0
131.2
110.4
114.7
131.6
110.2
116.0
131.5
108.3
115.5
131.4
107.9
113.7
130.3
105.9
111.9
2.1
3.1
1.7
.1
1.4
5.0
104.9
114.5
118.3
107.9
109.3
110.8
105.0
114.8
121.5
105.3
106.2
109.6
105.5
114.8
120.9
105.7
106.9
110.0
104.4
113.7
118.2
106.3
107.6
110.2
104.3
112.7
116.1
104.7
108.0
111.7
105.8
113.5
113.0
107.0
113.6
112.4
105.8
116.0
118.2
109.9
112.7
111.6
105.4
115.9
118.8
109.0
111.8
112.2
106.9
119.1
121.9
114.2
115.2
113.3
110.1
123.0
129.3
121.9
114.8
115.3
108.7
120.9
125.9
114.6
114.2
115.3
107.4
119.2
124.2
117.2
112.4
114.9
108.2
120.0
126.0
117.2
112.1
114.0
107.1
118.9
124.7
7.9
159.9
156.1
157.7
158.9
160.6
162.6
164.6
166.5
167.5
168.5
171.4
171.2
172.0
172.5
1.7
7.3
9.6
4.8
2.5
284.2
160.0
109.7
137.9
131.9
270.8
154.3
109.5
136.2
131.7
271.6
156.5
107.6
131.6
124.4
276.5
159.5
107.5
132.2
124.6
282.6
161.5
105.7
129.6
120.8
288.9
164.1
109.5
138.1
131.9
295.8
165.0
108.8
137.4
128.4
300.5
166.9
109.0
138.4
128.6
305.7
168.8
110.5
141.4
132.7
311.9
172.5
111.9
144.6
138.4
318.0
172.9
112.6
146.1
140.0
325.3
173.8
113.2
147.3
142.0
331.8
174.7
112.1
145.1
138.8
338.4
174.9
109.0
138.8
130.9
79
80
Durable goods
24
Lumber and products
25
Furniture and fixtures
Stone, clay, and glass
32
products
33
Primary metals
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
34
Fabricated metal products...
Industrial machinery and
35
equipment
Computer and office
357
equipment
36
Electrical machinery
Transportation equipment...
37
371
Motor vehicles and parts .
371
Autos and light trucks .
Aerospace and
miscellaneous
transportation
372-6,9
equipment
38
Instruments
39
Miscellaneous
4.8
5.4
1.3
82.6
107.4
116.2
84.1
106.6
115.2
84.6
106.4
115.4
83.8
106.8
115.8
82.8
108.5
118.6
82.3
108.7
117.1
81.4
108.0
117.0
80.8
108.2
118.4
80.9
107.7
118.6
80.6
108.9
117.6
80.4
108.4
119.1
80.5
107.9
120.2
80.5
108.1
118.7
80.5
108.1
117.2
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile nil! 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
40.5
9.4
"1.6
1.8
2.2
3.6
6.8
9.9
1.4
3.5
.3
113.3
112.8
96.5
109.0
96.3
117.4
101.1
124.1
105.3
133.5
85.8
112.4
111.9
98.1
108.6
96.2
114.4
101.7
122.4
107.5
130.8
87.6
113.4
112.8
98.5
108.9
97.1
116.7
101.6
124.0
107.0
132.4
85.9
113.4
112.8
95.9
108.7
97.0
116.6
102.4
124.4
104.5
132.8
85.5
113.6
113.4
93.7
109.4
97.0
116.6
102.1
124.7
104.3
134.5
86.3
114.0
113.7
96.2
109.0
96.8
120.2
101.5
124.7
105.2
134.5
85.5
113.7
114.6
96.1
108.3
96.8
118.7
100.9
123.7
105.3
134.7
85.4
114.2
113.4
104.5
110.6
96.9
118.9
101.4
123.8
104.0
136.7
85.6
115.4
113.9
101.5
112.0
96.8
121.3
102.0
126.2
107.6
138.3
84.5
116.4
114.7
108.0
112.2
97.0
121.7
101.6
128.0
107.7
140.0
84.4
116.5
115.9
97.3
113.3
96.6
119.8
101.3
130.4
107.4
140.2
82.9
116.1
115.6
101.7
110.6
95.7
120.1
100.8
129.0
107.7
140.5
82.7
115.8
115.4
100.4
111.5
94.8
120.2
100.7
128.6
110.4
138.7
82.8
115.6
114.6
102.2
111.2
93.3
121.3
101.0
128.5
110.5
137.4
81.3
"10
12
13
14
6.8
.4
1.0
4.7
.6
99.8
159.4
112.0
93.0
107.0
100.7
157.0
118.3
93.2
105.9
100.7
156.4
111.5
94.3
108.1
100.6
162.8
113.4
93.8
105.6
100.1
159.5
108.6
93.9
107.9
100.0
156.6
111.4
93.5
106.6
100.1
160.0
110.7
93.7
106.7
99.2
158.9
110.2
92.2
109.3
98.3
154.3
110.1
91.2
109.9
100.1
156.2
117.8
92.2
109.9
100.0
158.5
117.9
91.2
115.1
100.6
161.2
118.6
92.3
111.4
100.0
161.6
117.4
91.2
115.3
100.2
162.4
114.1
92.5
111.1
491,3PT
492,3PT
7.7
6.1
1.6
118.1
117.8
119.2
114.7
116.4
107.9
115.8
116.2
114.1
121.1
121.4
120.0
119.0
119.0
118.9
118.8
118.4
120.4
116.5
117.1
114.2
117.2
117.9
114.4
116.5
117.5
112.3
115.2
116.5
109.8
116.5
117.2
113.7
118.3
119.0
115.7
115.5
116.0
113.5
117.3
117.7
115.6
59 Tbtal index
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
1113
112.5
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding office
and computing machines . ..
80.7
118.6
117.3
118.2
118.6
119.2
119.8
119.9
120.5
121.5
122.9
123.2
122.8
122.8
122.4
83.8
116.5
115.3
115.9
116.2
116.6
117.6
117.5
118.1
119.1
120.6
120.8
120.5
120.2
119.5
Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS
102 Products, total
1,707.0 2,006.2 1,985.8 1,990.7 2,002.5 2,002.1 2,020.2 2,015.6 2,020.4 2,037.2 2,056.5 2,063.2 2,064.8 2,061.1 2,048.3
103 Final
101 Consumer goods
105 Equipment
106 Intermediate
1,314.6 1,576.3 1,559.9 1,561.7 1,571.1 1,569.3 1,586.6 1,584.2 1,584.4 1,598.4 1,615.1 1,621.1 1,625.2 1,622.8 1,612.6
866.6 982.5 976.0 977.1 983.0 979.0 987.3 981.5 977.0 988.5 999.6 1,000.2 1,001.6 997.1 988.8
448.0 593.8 583.9 584.5 588.1 590.3 599.3 602.7 607.3 609.9 615.5
620.9
623.6 625.6 623.8
392.5 429.8 425.9 429.0 431.4 432.9 433.5 431.4 436.0 438.8 441.4 442.0 439.6 438.4 435.7
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release.
For the ordering address, see the inside front cover. The latest historical revision of the
industrial production index and the capacity utilization rates was released in November
1994. See "Industrial Production and Capacity Utilization: A Revision," Federal Reserve
Bulletin, vol. 81 (January 1995), pp. 16-26. For a detailed description of the industrial
production index, see "Industrial Production: 1989 Developments and Historical Revision," Federal Reserve Bulletin, vol. 76, (April 1990), pp. 187-204.
2. Standard industrial classification.
Selected Measures
A49
2.14 HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1995
1994
Item
1992
1993
1994
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb.'
Mar.
Private residential real estate activity (thousands of units except as noted)
NEW UNITS
1 Permits authorized
7. One-family
3 Two-family or more
4 Started
One-family
6 Two-family or more
7 Under construction at end of period1
8 One-family
9 Two-or-more-family
10 Completed
11 One-family
12 Two-or-more-family
13 Mobile homes shipped
1,095
911
184
1,200
1,030
170
612
473
140
1,158
964
194
210
1,199
987
213
1,288
1,126
162
680
543
137
1,193
1,040
153
254
l,372r
l,068r
303r
1,457
1,198
259
762
558
204
1,347
1,160
187
304
l,350r
1,062r
288r
1,370
1,174
196
751
585
166
1,333
1,151
182
295
1,347
l,049r
298r
1,440
1,219
221
757
585
172
1,280
1,157
123
289
l,386r
l,063r
323r
1,463
1,174
289
770
589
181
1,337
1,144
193
295
l,426r
1,066r
3601
1,511
1,235
276
773
590
183
1,400
1,158
242
307
i,4or
l,046r
355r
1,451
1,164
287
779
587
192
1,376
1,169
207
314
l,358r
l,025r
333r
1,536
1,186
350
787
587
200
1,371
1,136
235
322
l,420r
l,105r
315r
1,545
1,250
295
791
584
207
1,388
1,173
215
347
1,293
990
303
1,366
1,055
311
792
578
214
1,436
1,209
227
361
1,282
931
351
1,319
1,048
271
800
581
219
1,305
1,084
221
335
1,235
911
324
1,231
984
247
774
558
216
1,433
1,204
229
333
Merchant builder activity in
one-family units
14 Number sold
1
15 Number for sale at end of period
610
265
666
293
670
338r
632
313
630
317
672
322
691
328
707
330
642
335
627r
338r
640
342
560
347
577
349
121.3
144.9
126.1
147.6
130.4
153.7r
133.5
158.4
124.4
144.4
133.3
154.9
129.7
157.2
132.0
153.0
129.9
155.4
135.0
159.6r
127.5
147.0
133.9
159.0
130.0
158.5
18 Number sold
3,520
3,800
3,946
4,010
3,940
3,910
3,870
3,820
3,690
3,760
3,610
3,420
3,620
Price of units sold (thousands
of dollars)2
19 Median
20 Average
103.6
130.8
106.5
133.1
109.6
136.4
113.3
141.3
112.4
139.7
113.0
141.2
108.9
135.8
107.5
133.0
108.7
134.7
109.1
135.6
108.1
135.3
107.0
133.4
107.9
134.5
Price of units sold (thousands
of dollars)2
16 Median
17 Average
EXISTING UNITS ( o n e - f a m i l y )
Value of new construction (millions of dollars)3
CONSTRUCTION
21 Total put in place
435,355
466,365
506,315
506,144
505,445
505,470
514,197
519,336
522,106
528,613
527,314
527,178
525,127
77 Private
73 Residential
74 Nonresidential
7.5
Industrial buildings
7.6
Commercial buildings
Other buildings
7.7
Public utilities and other
28
316,115
187,870
128,245
20,720
41,523
21,494
44,508
341,101
210,455
130,646
19,533
42,627
23,626
44,860
377,136
237,767
139,369
21,600
48,268
23,835
45,666
379,345
240,694
138,651
20,960
48,410
24,439
44,842
376,463
237,775
138,688
21,117
48,607
23,838
45,126
376,216
236,871
139,345
22,012
48,185
23,648
45,500
382,287
238,529
143,758
22,621
50,180
24,784
46,173
383,044
239,136
143,908
22,190
50,583
24,103
47,032
390,729
241,320
149,409
25,050
51,993
24,325
48,041
393,171
243,768
149,403
23,074
53,272
24,851
48,206
394,037
244,628
149,409
23,316
54,247
24,430
47,416
393,643
244,850
148,793
24,962
54,798
24,723
44,310
392,544
240,116
152,428
25,505
56,356
24,060
46,507
79 Public
30 Military
31 Highway
37, Conservation and development
33 Other
119,238
2,502
34,899
6,021
75,816
125,262
2,454
37,355
5,976
79,477
129,175
2,315
40,185
6,236
80,439
126,799
2,277
40,300
4,605
79,617
128,982
2,351
40,305
5,935
80,391
129,255
2,357
40,057
5,754
81,087
131,910
2,364
40,797
7,521
81,228
136,292
2,329
41,685
7,135
85,143
131,377
2,247
40,011
6,658
82,461
135,443
2,481
39,256
7,765
85,941
133,277
2,629
39,193
6,927
84,528
133,535
2,677
38,742
7,216
84,900
132,584
2,206
39,895
7,100
83,383
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable with data
for previous periods because of changes by the Bureau of the Census in its estimating
techniques. For a description of these changes, see Construction Reports (C-30-76-5),
issued by the Census Bureau in July 1976.
SOURCES. Bureau of the Census estimates for all series except (1) mobile homes, which
are 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.
A50
Domestic Nonfinancial Statistics • July 1995
2.15 CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Item
1994
1994
Apr.
Change from 1 month earlier
1995
1994
Dec.
Mar.
Dec.
1995
Apr.
June
Sept.
Index
level,
Apr
1995'
1995
Jan.
Feb.
Mar.
Apr.
CONSUMER PRICES2
(1982-84=100)
1 All items
2.4
2
3 Energy items
4 All items less food and energy
5 Commodities
6 Services
3.1
2.7
3.6
1.9
3.2
.2
.3
.3
.2
.4
151.9
2.0
-1.1
2.8
.9
3.7
3.5
1.9
3.1
1.8
3.7
2.8
-3.0
3.1
3.9
2.7
5.1
9.2
2.6
.9
3.6
3.9
.4
2.0
.3
2.6
.0
-1.1
4.1
2.6
4.8
.8
-.1
.1
.1
.2
-.3
.3
.4
.4
.5
.3
-.1
.3
.1
.4
.0
-.5
.3
.1
.4
.7
.4
.4
.2
.4
148.4
103.9
160.7
139.7
172.7
-.4
.5
-3.6
-1.1
2.0
2.1
1.1
4.4
2.0
1.9
.0
-5.5
-2.6
2.0
3.0
1.9
1.9
3.2
1.7
2.1
2.2
9.2
.0
.6
-,3 r
2.6
-1.8
9.1
2.6
2.4r
.3
1.3
-.9
.2
.3r
.3
-.6
2.3
.1
A'
.3
.3
.4
.3
.3
.0
-.2
-.5
.2
-.1
.5
-.2
2.3
.3
.3
127.6
128.5
78.8
141.3
136.3
.3
1.0
7.3
7.8
2.8
3.9
6.2
6.8
7.2r
8.3
9.9r
9.8
,4r
.5
I.R
1.0
1.0
.3
.4
.8
.7
125.4
135.2
2.4
-7.1
9.0
-9.9
.6
17.9
-18.0
21.0
-.8
-13.5
-19.2
20.3
— 1.2r
-7.6 rr
27.9
-5.0 r
-3.9 r
20.C
-,lr
.9'
2.2'
1.2
1.7
1.4
-2.4
-.9
.5
-.9
5.3
1.2
101.9
72.9
180.7
PRODUCER PRICES
(1982=100)
7 Finished goods
8 Consumer foods
9 Consumer energy
10 Other consumer goods
11 Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rentalequivalence measure of homeownership.
1.0
,OR
-1.9 rr
2.8
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
Selected Measures
A51
2.16 GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1995
1994
Account
1992
1993
1994
Q1
Q2
Q3
Q4
Q1
GROSS DOMESTIC PRODUCT
1
Total
6,020.2
6,3433
6,738.4
6,574.7
6,689.9
6,791.7
6,897.2
6,982.9
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
4,136.9
492.7
1,295.5
2,348.7
4,378.2
538.0
1,339.2
2,501.0
4,628.4
591.5
1,394.3
2,642.7
4,535.0
576.2
1,368.9
2,589.9
4,586.4
580.3
1,381.4
2,624.7
4,657.5
591.5
1,406.1
2,659.9
4,734.8
617.7
1,420.7
2,696.4
4,780.8
613.4
1,429.5
2,737.9
788.3
785.2
561.4
171.1
390.3
223.8
882.0
866.7
616.1
173.4
442.7
250.6
1,032.9
980.7
697.6
182.8
514.8
283.0
966.6
942.5
665.4
172.7
492.7
277.1
1,034.4
967.0
683.3
181.8
501.5
283.6
1,055.1
992.5
709.1
184.6
524.5
283.4
1,075.6
1,020.8
732.8
192.0
540.7
288.0
1,119.3
1,051.2
766.6
199.8
566.8
284.6
3.0
-2.7
15.4
20.1
52.2
45.9
24.1
22.3
67.4
60.4
62.6
53.4
54.8
47.4
68.1
64.7
-30.3
638.1
668.4
-65.3
659.1
724.3
-98.2
718.7
816.9
-86.7
674.2
760.9
-97.6
704.5
802.1
-109.6
730.5
840.1
-98.9
765.5
864.4
-112.9
770.9
883.8
6
7
8
9
10
11
12
13
Gross private domestic investment
Fixed investment
Nonresidential
Structures
Producers' durable equipment
Residential structures
Change in business inventories
Nonfarm
14
15
16
Net exports of goods and services
Exports
Imports
17
18
19
Government purchases of goods and services
Federal
State and local
1,125.3
449.0
676.3
1,148.4
443.6
704.7
1,175.3
437.3
738.0
1,159.8
437.8
722.0
1,166.7
435.1
731.5
1,188.8
444.3
744.5
1,185.8
431.9
753.8
1,195.6
433.1
762.6
20
21
77
73
74
25
By major type of product
Final sales, total
Goods
Durable
Nondurable
Services
Structures
6,017.2
2,292.0
968.6
1,323.4
3,227.2
498.1
6,327.9
2,390.4
1,032.4
1,358.1
3,405.5
532.0
6,686.2
2,532.4
1,118.8
1,413.6
3,576.2
577.6
6,550.6
2,489.1
1,098.2
1,390.9
3,503.8
557.7
6,622.5
2,493.7
1,099.4
1,394.3
3,555.4
573.4
6,729.1
2,543.6
1,125.8
1,417.8
3,603.6
581.9
6,842.4
2,603.3
1,151.8
1,451.5
3,641.9
597.3
6,914.8
2,630.8
1,170.2
1,460.6
3,682.5
601.4
26
77
28
Change in business inventories
Durable goods
Nondurable goods
3.0
-13.0
16.0
15.4
8.6
6.7
52.2
34.8
17.4
24.1
20.6
3.5
67.4
38.2
29.2
62.6
44.1
18.5
54.8
36.3
18.5
68.1
47.5
20.6
4,979.3
5,134.5
5,344.0
5,261.1
5,314.1
5,367.0
5,433.8
5,471.7
4,829.5
5,1314
5,458.4
5,308.7
5,430.7
5,494.9
5,599.4
n.a.
3,591.2
2,954.8
567.3
2,387.5
636.4
307.7
328.7
3,780.4
3,100.8
583.8
2,517.0
679.6
324.3
355.3
4,004.6
3,279.0
602.8
2,676.2
725.6
344.6
381.0
3,920.0
3,208.3
595.7
2,612.6
711.7
338.5
373.2
3,979.3
3,257.2
601.9
2,655.4
722.0
343.6
378.4
4,023.7
3,293.9
604.4
2,689.6
729.7
346.0
383.7
4,095.3
3,356.4
609.0
2,747.4
738.9
350.2
388.7
4,157.0
3,403.2
615.6
2,787.6
753.8
354.2
399.6
418.7
374.4
44.4
441.6
404.3
37.3
473.7
434.2
39.5
471.0
423.8
47.2
471.3
431.9
39.3
467.0
437.1
29.8
485.7
444.0
41.7
493.8
448.7
45.1
MEMO
29
Total GDP in 1987 dollars
NATIONAL INCOME
30
31
32
33
34
35
36
37
38
39
40
Compensation of employees
Wages and salaries
Government and government enterprises
Other
Supplement to wages and salaries
Employer contributions for social insurance
Other labor income
Business and professional1
Farm1
41
Rental income of persons2
-5.5
24.1
27.7
15.3
34.1
32.6
29.0
47
43
44
45
Corporate profits1 3
Profits tefore tax
Inventory valuation adjustment
Capital consumption adjustment
405.1
395.9
-6.4
15.7
485.8
462.4
-6.2
29.5
542.7
524.5
-19.5
37.7
508.2
483.5
-12.3
37.0
546.4
523.1
-14.1
37.4
556.0
538.1
-19.6
37.5
560.3
553.5
-32.1
38.8
-36.5
38.1
46
Net interest
420.0
399.5
409.7
394.2
399.7
415.7
429.2
n.a.
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.
25.6
n.a.
n.a.
A52
Domestic Nonfinancial Statistics • July 1995
2.17 PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1995
1994
1992
1993
1994
Q1
Q2
Q3
Q4
Q1
PERSONAL INCOME AND SAVING
1 Total personal income
5,1543
5,375.1
5,701.7
5,555.8
5,659.9
5,734.5
5,856.6
5,963.1
2 Wage and salary disbursements
3 Commodity-producing industries
4
Manufacturing
5 Distributive industries
6 Service industries
7 Government and government enterprises
2,974.8
757.6
578.3
682.3
967.6
567.3
3,080.8
773.8
588.4
701.9
1,021.4
583.8
3,279.0
818.2
617.5
748.5
1,109.5
602.8
3,208.3
801.9
609.4
728.6
1,082.0
595.7
3,257.2
811.6
612.8
742.5
1,101.2
601.9
3,293.9
821.8
618.3
753.5
1,114.3
604.4
3.356.4
837.3
629.5
769.6
1.140.5
609.0
3,403.2
848.8
638.8
778.8
1,160.0
615.6
328.7
418.7
374.4
44.4
-5.5
161.0
665.2
860.2
414.0
355.3
441.6
404.3
37.3
24.1
181.3
637.9
915.4
444.4
381.0
473.7
434.2
39.5
27.7
194.3
664.0
963.4
473.5
373.2
471.0
423.8
47.2
15.3
185.7
631.1
947.4
463.8
378.4
471.3
431.9
39.3
34.1
191.7
649.4
957.6
470.7
383.7
467.0
437.1
29.8
32.6
196.9
674.2
969.0
476.5
388.7
485.7
444.0
41.7
29.0
202.7
701.1
979.7
483.1
399.6
493.8
448.7
45.1
25.6
205.5
724.5
1,004.6
496.2
8
9
10
11
12
13
14
15
16
Other labor income 1
Proprietors' income
Business and professional1
Farm1
Rental income of persons
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
17
248.7
261.3
281.4
276.3
279.9
282.9
286.6
293.7
5,154.3
LESS: Personal contributions for social insurance
18 EQUALS: Personal income
5,375.1
5,701.7
5,555.8
5,659.9
5,734.5
5,856.6
5,963.1
648.6
686.4
742.1
723.0
746.4
744.1
754.7
774.3
20 EQUALS: Disposable personal income
4,505.8
4,688.7
4,959.6
4,832.8
4,913.5
4,990.3
5,101.9
5,188.8
21
LESS: Personal outlays
4,257.8
4,496.2
4,756.5
4,657.3
4,712.4
4,787.0
4,869.3
4,918.8
22 EQUALS: Personal saving
247.9
192.6
203.1
175.5
201.1
203.3
232.6
270.0
19,489.7
13,110.4
14,279.0
19,878.8
13,390.8
14,341.0
20,475.8
13,715.4
14,696.0
20,235.2
13,639.8
14,535.0
20,389.7
13,650.9
14,625.0
20.536.5
13.716.6
14,697.0
20,739.8
13,853.5
14,927.0
20,842.5
13,872.9
15,057.0
5.5
4.1
4.1
3.6
4.1
4.1
4.6
5.2
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
722.9
787.5
920.6
886.2
923.3
922.6
9503
n.a.
28 Gross private saving
980.8
1,002.5
1,053.5
1,037.3
1,041.4
1,052.7
1,082.7
n.a.
29 Personal saving
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment
247.9
94.3
-6.4
192.6
120.9
-6.2
203.1
135.1
-19.5
175.5
127.7
-12.3
201.1
142.3
-14.1
203.3
139.5
-19.6
232.6
130.7
-32.1
270.0
n.a.
-36.5
Capital consumption allowances
32 Corporate
33 Noncorporate
396.8
261.8
407.8
261.2
432.2
283.1
432.2
301.8
425.9
272.1
432.6
277.3
438.0
281.3
445.3
284.8
-257.8
-282.7
24.8
-215.0
-241.4
26.3
-132.9
-159.1
26.2
-151.1
-176.2
25.2
-118.1
-145.1
27.0
-130.1
-154.0
23.9
-132.3
-161.1
28.8
37 Gross investment
731.7
789.8
889.7
850.2
901.5
907.9
38 Gross private domestic investment
39 Net foreign investment
788.3
-56.6
882.0
-92.3
1,032.9
-143.2
966.6
-116.4
1,034.4
-135.1
1,055.1
-153.6
1,075.6
-167.7
-30.9
-36.1
-24.0
-21.1
-42.4
34 Government surplus, or deficit (-), national income and
product accounts
35 Federal
36 State and local
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
8.8
23
8993
SOURCE. U.S. Department of Commerce, Survey of Current Business.
n.a.
n.a.
n.a.
n.a.
1,119.3
n.a.
n.a.
Summary Statistics
A53
3.10 U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1994
1993
Item credits or debits
1993
1992
1994
Q4
1
7
3
4
6
7
8
9
10
Balance on current account 2
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Other service transactions, net
Investment income, net
U.S. government grants
U.S. government pensions and other transfers
Private remittances and other transfers
-67,886
-96,097
440,361
-536,458
-3,034
58,747
4,540
-15,010
-3,735
-13,297
-103,896
-132,575
456,866
-589,441
-763
57,613
3,946
-14,620
-3,785
-13,712
-155,672
-166,364
502,729
-669,093
268
59,726
-15,181
-14,532
-4,246
-15,343
Q1
Q2
Q3
Q4P
-30,587
-33,169
119,679
-152,848
-444
13,637
-590
-5,591
-987
-3,443
-32,238
-37,052
117,848
-154,900
-338
13,070
-820
-2,371
-889
-3,838
-37,827
-41,721
122,510
-164,231
177
14,907
-2,819
-3,590
-895
-3,886
-40,848
-44,615
127,632
-172,247
230
15,647
-4,037
-2,839
-1,474
-3,760
-44,758
-42,976
134,739
-177,715
199
16,102
-7,504
-5,731
-988
-3,860
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
-1,652
-306
-277
-321
490
462
-270
-961
)
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
3,901
0
2,316
-2,692
4,277
-1,379
0
-537
-44
-797
5,346
0
-441
494
5,293
-673
0
-113
-80
-480
-59
0
-101
-3
45
3,537
0
-108
251
3,394
-165
0
-111
273
-327
2,033
0
-121
-27
2,181
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims3
19 Nonbank-reported claims
70 U.S. purchases of foreign securities, net
21 U.S. direct investments abroad, net
-63,759
22,314
45
-45,114
-41,004
-146,213r
32,238
-598
-119,983r
-57,870
-130,756
-2,033
-9,679
-60,621
-58,423
-62,628
-9,293
-303
-30,349
-22,683
-48,887
-1,236
1,941
-24,605
-24,987
-11,250
15,248
-4,264
-14,007
-8,227
-25,414
1,268
-7,356
-8,103
-11,223
-45,208
-17,313
-13,989
77 Change in foreign official assets in United States (increase, +)
73 U.S. Treasury securities
7.4 Other U.S. government obligations
75 Other U.S. government liabilities4
76 Other U.S. liabilities reported by U.S. banks
27 Other foreign official assets5
40,858
18,454
3,949
2,572
16,571
-688
71,681
48,702
4,062
1,666
14,666
2,585
38,912
30,441
5,988
2,514
2,317
-2,348
23,962
22,856
970
825
-587
-102
11,530
1,193
50
938
10,139
-790
8,925
6,033
2,355
252
1,241
-956
19,460
15,841
2,003
700
1,695
-779
-1,003
7,374
1,580
624
-10,758
177
78 Change in foreign private assets in United States (increase, +)
79 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
37 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net
105,646
15,461
13,573
36,857
29,867
9,888
159,017
18,452
14,282
24,849
80,068
21,366
275,702
106,189
17,955
32,925
58,562
60,071
66,200
7,370
4,733
7,996
38,008
8,093
83,600
35,200
5,867
9,260
21,258
12,015
40,384
25,539
3,662
-7,434
13,152
5,465
60,794
18,353
8,426
5,111
14,168
14,736
90,924
27,097
34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment
0
0
-17,108
21,096
0
-33,255
-17,108
21,096
-33,255
- I 3,906
25,988
9,984
27,855
0
0
0
0
0
4,047
103
3,944
-14,436
5,899
-20,335
-4,231
728
-4,959
-13,557
-6,686
-6,871
-1,027
62
-1,089
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, —)
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
3,901
-1,379
5,346
-673
-59
3,537
-165
2,033
38,286
70,015
36,398
23,137
10,592
8,673
18,760
-1,627
5,942
-3,847
-1,049
-229
-1,674
-4,149
3,726
1,048
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census basis
data, shown in table 3.11, for reasons of coverage and timing. Military exports are
excluded from merchandise trade data and are included in line 5.
3. Reporting banks include all types of depository institution as well as some brokers
and dealers.
4. Associated primarily with military sales contracts and other transactions arranged
with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of
Current Business.
A54
International Statistics • July 1995
3.11 U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1994
Item
1992
1993
1995
1994
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.p
1 Goods and services, balance
2 Merchandise
3 Services
-40,384
-96,097
55,713
-75,725
-132,575
56,850
-106,571
-166,565
59,994
-8,879
-14,517
5,638
-9,996
-15,117
5,121
-9,628
-15,170
5,542
-7,261
-12,896
5,635
-11,953
-16,853
4,900
-9,151
-14,303
5,152
-9,115
-14,249
5,134
4 Goods and services, exports
5 Merchandise
6 Services
616,924
440,361
176,563
641,677
456,866
184,811
697,877
502,590
195,287
60,510
43,485
17,025
59,881
43,289
16,592
61,909
44,814
17,095
63,611
46,490
17,121
60,964
44,299
16,665
62,251
45,421
16,830
65,344
48,202
17,142
7 Goods and services, imports
8 Merchandise
9 Services
-657,308
-536,458
-120,850
-717,402
-589,441
-127,961
-804,448
-669,155
-135,293
-69,389
-58,002
-11,387
-69,877
-58,406
-11,471
-71,537
-59,984
-11,553
-70,872
-59,386
-11,486
-72,917
-61,152
-11,765
-71,402
-59,724
-11,678
-74,459
-62,451
-12,008
-84,501
-115,568
-151,308
-13,418
-13,845
-14,092
-11,644
—15,910
-13384
-12,595
MEMO
10 Balance on merchandise trade, Census
basis
1. Data show monthly values consistent with quarterlyfiguresin the U.S. balance of
payments accounts.
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1994
Asset
1992
1993
1995
1994
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.p
77,719
1 Total
2 Gold stock, including Exchange
Stabilization Fund1
3 Special drawing rights2'3
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
71,323
73,442
76,532
78,172
74,000
74,335
76,027
81,439
86,761
88,756
11,057
11,240
11,056
8,503
11,053
9,039
11,054
9,971
11,053
10,088
11,052
10,017
11,051
10,039
11,050
10,154
11,050
11,158
11,053
11,651
11,055
11,743
9,488
45,934
11,759
40,005
11,818
41,532
12,067
43,440
12,339
44,692
12,037
40,894
12,030
41,215
12,120
42,703
12,853
46,378
13,418
50,639
14,206
51,752
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 perfinetroy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average
of exchange rates for the currencies of member countries. From July 1974 through
December 1980, sixteen currencies were used; since January 1981, five currencies have
been used. U.S. SDR holdings and reserve positions in the IMF also have been valued on
this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the
year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net
transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
1994
Asset
1991
1992
Sept.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
1995
1993
Oct.
Nov.
Dec.
Jan.
968
205
386
342
223
230
250
185
281,107
13,303
314,481
13,118
379,394
12,327
429,819
12,044
439,854
12,039
444,339
12,037
441,866
12,033
439,139
12,033
Feb.
188
Mar.
Apr.p
370
166
447,206
459,694
12,033 11,964,301
469,482
11,897
1. Excludes deposits and U.S. Treasury securities held for international and
regional
3. Held in foreign and international accounts and valued at $42.22 perfinetroy ounce;
organizations.
not included in the gold stock of the United States.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
Summary Statistics
A55
3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1994r
Jan.r
Sept.
1 Total1
2
3
4
5
6
7
8
9
10
11
12
412,624
By area
Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries6
483,002'
521,316
531,397
523,915
520,204
516,713
526,678
54,967
104,596
69,808
151,100
82,587
138,451
79,361
148,039
73,507
143,222
72,731
139,570
74,094
133,014
80,041
134,341
210,931
4,532
37,598
r
212,237
5,652
44,205r
247,804
5,990
46,484
250,695
6,031
47,271
253,455
6,069
47,662
254,037
6,109
47,757
255,784
6,137
47,684
257,846
6,095
48,355
189,230
13,700
37,973
164,690
3,723
3,306
By type
Liabilities reported by banks in the United States'
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
v
U.S. securities other than U.S. Treasury securities1
207,121
15,285
55,898
197,702r
4,052
2,942
225,481
19,382
44,348
223,805
4,388
3,910
222,833
18,497
47,765
232,871
4,232
5,197
217,018
17,528
45,206
234,344
4,673
5,144
214,908
17,235
41,189
236,864
4,179
5,827
212,029
18,041
36,979
240,054
4,335
5,273
213,518
18,655
41,953
244,623
4,066
3,861
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements,
3. Includes nonmarketable certificates of indebtedness (including those payable in
foreign currencies through 1974) and Treasury bills issued to official institutions of
foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and
notes payable in foreign currencies; zero coupon bonds are included at current value.
5. Debt securities of U.S. government corporations and federally sponsored agencies,
and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the
United States, and on the 1989 benchmark survey of foreign portfolio investment in the
United States.
3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States1
Payable in Foreign Currencies
Millions of dollars, end of period
1994
Item
1991
1992
1993
Mar.
1 Banks' liabilities
2 Banks' claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers2
75,129
73,195
26,192
47,003
3,398
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
72,796
62,799
24,240
38,559
4,432
78,120
60,649
20,284
40,365
4,100
June
Sept.
Dec.
86,706
74,670
21,139
53,531
4,696
72,490
56,669
21,490
35,179
4,732
82,293
59,261
20,419
38,842
5,466
89,616r
54,448
19,798
34,650
10,773r
2. Assets owned by customers of the reporting bank located in the United States that
represent claims on foreigners held by reporting banks for the accounts of the domestic
customers.
A56
International Statistics • July 1995
3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1
Payable in U.S. dollars
Millions of dollars, end of period
1994
Item
1992
1995
1994 R
1993
Sept.
Oct.
Nov.
Dec.r
Jan.'
Feb.
Mar.p
BY HOLDER AND TYPE OF LIABILITY
1
Total, all foreigners
7.Banks' own liabilities
3
4
6
Demand deposits
Time 3
deposits2
Other
Own foreign offices4
10
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
11
12
13
14
15
Nonmonetary international and regional organizations8 . . .
Banks' own liabilities
Demand deposits
Time 3
deposits2
Other
7
8
9
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
Official institutions9
Banks' own liabilities
Demand deposits
Time 3
deposits2
Other
Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments7
Other
Banks10
Banks' own liabilities
Unaffiliated foreign banks
Demand deposits
Time 3deposits2
Other
Own foreign offices4
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
Other foreigners
Banks' own liabilities
Demand deposits
Time deposits2
Other3
Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments7
Other
1,015,860 l,000,200r l,012,336r
989,094r
1,015,860 1,009,899 1,017,843 1,026,867
810,259
921,796
606,444
21,828
160,385
93,237
330,994
623,432
21,573
175,078
110,144
316,637
721,047
25,831
186,392
113,850
394,974
707,452
23,522
178,277
134,762
370,891
709,734
24,614
181,406
133,805
369,909
686,602
23,954
178,348
124,309
359,991
721,047
25,831
186,392
113,850
394,974
722,047
23,424
187,975
123,987
386,661
723,730
24,083
185,715
125,231
388,701
721,787
22,656
183,968
119,885
395,278
203,815
127,644
298,364
176,739
294,813
162,825
292,748 R
164,555
302,602 R
174,441
302,492 R
169,056
294,813
162,825
287,852
156,664
294,113
160,353
305,080
170,190
21,974
54,197
36,289
85,336
42,177
89,811
38,988
89,205 R
37,661
90,500 R
39,834
93,602 R
42,177
89,811
40,442
90,746
43,378
90,382
44,749
90,141
9,350
6,951
46
3,214
3,691
10,936
5,639
15
2,780
2,844
7,474
7,044
29
3,198
3,817
7,619
6,642
28
2,989
3,625
7,824
6,047
83
3,095
2,869
6,207
5,441
35
2,817
2,589
7,474
7,044
29
3,198
3,817
9,112
8,646
24
3,715
4,907
7,854
7,205
35
3,484
3,686
8,793
8,169
31
3,699
4,439
2,399
1,908
5,297
4,275
430
281
977
767
1,777
1,572
766
501
430
281
466
280
649
407
624
314
486
5
1,022
0
149
0
205
5
205
0
265
0
149
0
181
5
242
0
307
3
159,563
51,202
1,302
17,939
31,961
220,908
64,231
1,601
21,654
40,976
212,301
59,280
1,564
23,175
34,541
221,038
72,114
1,691
26,920
43,503
227,400
67,505
2,028
23,812
41,665
216,729
60,717
1,682
20,626
38,409
212,301
59,280
1,564
23,175
34,541
207,108
62,082
1,598
22,622
37,862
214,382
67,029
1,587
25,063
40,379
224,829
68,612
1,705
23,615
43,292
108,361
104,596
156,677
151,100
153,021
139,570
148,924
138,451
159,895
148,039
156,012
143,222
153,021
139,570
145,026
133,014
147,353
134,341
156,217
141,716
3,726
39
5,482
95
13,245
206
10,407
66
11,820
36
12,773
17
13,245
206
11,972
40
12,943
69
14,351
150
547,320
476,117
145,123
10,170
90,296
44,657
330,994
589,077
477,050
160,413
9,719
105,192
45,502
316,637
681,724
568,243
173,269
13,080
111,461
48,728
394,974
652,456'
538,600
167,709
10,555
101,715
55,439
370,891
658,315 R
545,707
175,798
11,023
106,646
58,129
369,909
6 4 7 , 2 8 LR
532,625
172,634
11,259
106,043
55,332
359,991
681,724
568,243
173,269
13,080
111,461
48,728
394,974
676,071
562,500
175,839
10,243
112,193
53,403
386,661
676,798
560,585
171,884
10,979
107,469
53,436
388,701
683,635
564,174
168,896
10,796
107,828
50,272
395,278
71,203
11,087
112,027
10,712
113,481
11,218
113,856 R
10,975
112,608 R
10,783
114,656 R
11,792
113,481
11,218
113,571
10,992
116,213
12,328
119,461
15,785
7,555
52,561
17,020
84,295
14,234
88,029
15,343
87,538 R
13,228
88,597 R
13,530
89,334 R
14,234
88,029
14,137
88,442
15,232
88,653
15,192
88,484
94,026
72,174
10,310
48,936
12,928
100,875
76,512
10,238
45,452
20,822
114,361
86,480
11,158
48,558
26,764
119,087
90,096
11,248
46,653
32,195
118,797
90,475
11,480
47,853
31,142
118,877
87,819
10,978
48,862
27,979
114,361
86,480
11,158
48,558
26,764
117,608
88,819
11,559
49,445
27,815
118,809
88,911
11,482
49,699
27,730
109,610
80,832
10,124
48,826
21,882
21,852
10,053
24,363
10,652
27,881
11,756
28,991
14,362
28,322
14,047
31,058
13,541
27,881
11,756
28,789
12,378
29,898
13,277
28,778
12,375
10,207
1,592
12,765
946
14,549
1,576
13,033
1,596
12,408
1,867
13,266
4,251
14,549
1,576
14,152
2,259
14,961
1,660
14,899
1,504
9,111
17,567
17,895
19,115
16,793
17,397
17,895
16,442
17,137
16,759
MEMO
49
Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Excludes negotiable time certificates of deposit, which are included in "Other
negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign
bauriks, consists principally of amounts owed to the head office or parent foreign bank, and
to foreign branches, agencies, or wholly owned subsidiaries of the head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term securities,
held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to
official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates
of deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes central banks, which are included in "Official institutions."
Nonbank-Reported
Data
3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued
1994
Item
1992
1993
1995
1994r
Sept.
Dec.r
Nov.
Oct.
Jan.r
Feb.
Mar.p
AREA
1 Total, all foreigners
2 Foreign countries
3 Europe
4 Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
8
9 Germany
10 Greece
11 Italy
1? Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
7.0 United Kingdom
Yugoslavia11
71
22 Other Europe and other former U.S.S.R.
810,259
921,796
r
1,015,860 l,000,200 1,012,336r
989,094r
1,015,860 1,009,899 1,017,843 1,026,867
r
r
1,008,386 1,000,787 1,009,989 1,018,074
800,909
910,860
1,008,386
307,670
1,611
20,567
3,060
1,299
41,411
18,630
913
10,041
7,365
3,314
2,465
577
9,793
2,953
39,440
2,666
111,805
504
29,256
377,193
1,917
28,621
4,517
1,872
39,746
26,613
1,519
11,759
16,096
2,966
3,366
2,511
20,493
2,572
41,561
3,227
133,936
570
33,331
392,761
3,649
21,738
2,784
1,436
44,716
27,175
1,392
10,884
16,748
2,338
2,846
2,714
14,657
3,093
41,882
3,341
163,577
245
27,746
r
992,581 l,004,512
982,887
406,909
3,014
27,568
2,128
2,319
43,143
31,889
1,227
10,975
18,754
2,861
3,023
2,899
14,198
4,651
41,050
3,023
160,154
224
33,909
393,156
4,264
22,322
2,307
1,587
41,160
31,050
1,477
9,777
17,310
2,807
2,919
2,367
15,038
3,361
41,756
3,032
162,760
240
27,822
413,440
3,610
23,566
2,374
2,601
44,209
33,136
1,711
10,893
18,034
3,400
2,861
2,337
16,325
3,467
41,834
3,143
171,938
220
27,981
392,761
3,649
21,738
2,784
1,436
44,716
27,175
1,392
10,884
16,748
2,338
2,846
2,714
14,657
3,093
41,882
3,341
163,577
245
27,746
393,587
3,236
21,679
2,662
2,403
42,325
28,521
1,231
10,269
15,629
2,309
2,863
2,047
15,149
2,258
39,516
3,621
173,870
261
23,938
386,589
4,021
22,094
1,971
1,754
44,314
27,497
2,064
12,021
15,891
2,147
4,007
2,642
11,106
2,247
40,100
2,701
162,629
258
27,325
380,458
4,012
23,886
2,396
1,223
41,300
28,276
2,264
8,673
15,784
2,066
2,810
3,467
11,671
2,474
39,337
2,513
159,733
213
28,460
22,420
20,227
24,609
24,660
23,115
23,295
24,609
26,498
26,564
27,030
7,4 Latin America and Caribbean
75
Argentina
76 Bahamas
77 Bermuda
78 Brazil
79 British West Indies
30 Chile
31 Colombia
3?
Cuba
33 Ecuador
34 Guatemala
35 Jamaica
36 Mexico
37 Netherlands Antilles
38 Panama
39 Peru
40 Uruguay
41 Venezuela
42 Other
317,228
9,477
82,284
7,079
5,584
153,033
3,035
4,580
3
993
1,377
371
19,454
5,205
4,177
1,080
1,955
11,387
6,154
358,040
14,477
73,800
7,841
5,301
190,445
3,183
3,171
33
880
1,207
410
28,018
4,195
3,582
926
1,611
12,786
6,174
422,768
17,201
106,058
8,467
9,140
227,175
3,114
4,607
13
875
1,121
529
12,243
4,539
4,549
900
1,596
13,979
6,662
391,219r
13,783
87,007
10,334
5,670
213,949r
3,407
4,027
13
823
1,103
565
19,941
4,275
4,082
1,079
1,399
13,297
6,465
391,971r
15,577
88,668
8,936
6,196
210,248r
3,078
4,475
7
830
1,077
589
21,263
4,153
4,077
1,027
1,472
13,809
6,489
397,141r
15,950
90,091
7,615
6,723
215,186r
3,741
4,417
7
825
1,036
513
19,199
4,845
4,598
935
1,190
13,833
6,437
422,768
17,201
106,058
8,467
9,140
227,175
3,114
4,607
13
875
1,121
529
12,243
4,539
4,549
900
1,596
13,979
6,662
407,905
12,789
95,226
8,904
9,001
227,816
2,965
4,308
12
1,339
1,056
447
12,608
3,838
4,832
901
1,797
13,460
6,606
419,496
11,886
98,833
8,554
10,627
231,469
3,327
4,037
5
1,511
1,079
464
16,779
4,498
4,281
892
1,609
12,970
6,675
419,546
9,957
100,457
8,711
10,848
233,451
3,587
3,643
5
1,117
1,061
491
15,749
4,015
4,360
893
1,754
12,629
6,818
43
143,540
144,575
155,357
158,217
163,316
157,153
155,357
159,465
165,765
178,438
3,202
8,408
18,499
1,399
1,480
3,773
58,435
3,337
2,275
5,582
21,437
15,713
4,011
10,627
17,178
1,114
1,986
4,435
61,466
4,913
2,035
6,137
15,824
14,849
10,063
9,792
17,181
2,336
1,576
5,155
64,039
5,104
2,714
6,466
15,474
15,457
5,062
8,853
18,750
2,187
1,838
3,204
68,200
4,622
3,135
6,503
17,138
18,725
5,625
9,473
18,217
2,376
1,734
6,607
66,152
4,740
3,158
5,682
17,232
22,320
8,017
10,919
17,552
2,377
1,613
5,066
63,309
5,016
3,064
5,946
17,678
16,596
10,063
9,792
17,181
2,336
1,576
5,155
64,039
5,104
2,714
6,466
15,474
15,457
12,908
9,135
18,460
2,293
1,601
5,471
61,612
4,771
2,616
8,216
16,181
16,201
15,658
9,910
18,157
2,117
1,946
4,953
62,951
4,165
2,363
9,906
14,934
18,705
12,025
10,033
19,935
2,357
2,092
5,021
77,830
4,348
2,293
9,559
15,545
17,400
6,633
2,208
99
451
12
1,303
2,560
6,511
1,867
97
433
9
1,343
2,762
6,299
2,014
72
197
9
1,186
2,821
6,389
1,996
66
245
9
1,176
2,897
6,939
2,097
67
693
10
1,227
2,845
6,511
1,867
97
433
9
1,343
2,762
6,363
1,749
92
285
10
1,409
2,818
6,203
1,830
73
400
10
1,122
2,768
6,817
1,781
70
706
9
1,599
2,652
23 Canada
44
45
46
47
48
49
"in
51
5?
53
54
55
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries
Other
56
57
58
59
60
61
62
Morocco
South Africa
Zaire
Oil-exporting countries14
Other
5,884
2,472
76
190
19
1,346
1,781
63
64
65
Australia
Other
4,167
3,043
1,124
4,192
3,308
884
6,380
5,141
1,239
5,277
3,966
1,311
6,281
5,114
1,167
5,203
4,094
1,109
6,380
5,141
1,239
6,969
5,395
1,574
5,372
4,351
1,021
5,785
5,024
761
9,350
7,434
1,415
501
10,936
6,851
3,218
867
7,474
6,467
551
456
7,619
5,390
1,108
1,121
7,824
5,844
950
1,030
6,207
4,358
1,094
755
7,474
6,467
551
456
9,112
7,746
865
501
7,854
6,701
582
571
8,793
7,822
376
595
66 Nonmonetary international and regional organizations....
67 International15
68 Latin American regional
69 Other regional17
11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements. Since December 1992, has
included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and
Slovenia.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United
Arab Emirates (Trucial States).
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."
A57
A58
International Statistics • July 1995
3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1995
1994
Area or country
1992
1993
1994
Sept.
r
Oct.
Nov.
Dec.
Jan.'
Feb.
Mar."
1 Total, all foreigners
499,437
484,584
478,213
475,742
479,426
464,360
478,213'
480,606
474,639
489,343
2 Foreign countries
494,355
482,179
473,919r
472,478
477,421
463,026
473,919r
477,611
473,755
486,010
123,377
331
6,404
707
1,418
14,723
4,222
717
9,047
2,468
355
325
3,147
2,755
4,923
4,717
962
63,430
569
2,157
121,550
413
6,535
382
594
11,519
7,703
679
8,918
3,073
396
834
2,310
2,766
4,086
6,566
1,294
61,169
536
1,777
123,689'
705
6,651
1,039
695'
12,186'
6,658'
592
6,140*
3,709'
504
938
949
3,552
4,101'
7,491
862
65,487'
265
1,165
120,550
293
7,279
521
594
14,846
8,655
613
5,376
2,908
650
1,182
1,272
2,211
3,903
5,853
1,046
61,084
258
2,006
131,985
440
6,370
880
587
16,354
8,501
520
6,693
3,402
903
1,056
1,220
2,731
3,156
7,670
1,147
68,512
266
1,577
120,045
369
6,274
668
718
12,906
8,452
518
5,950
3,426
1,004
1,006
1,172
2,174
3,596
6,544
914
62,616
266
1,472
123,689'
705
6,651
1,039
695'
12,186'
6,658'
592
6,140'
3,709'
504
938
949
3,552
4,101'
7,491
862
65,487'
265
1,165
125,891
350
5,558
488
720
12,615
8,530
668
6,703
3,741
1,069
988
1,148
2,989
3,831
9,025
548
64,914
265
1,741
122,609
425
4,833
646
456
11,958
7,640
751
6,694
4,200
988
1,045
759
2,803
4,043
8,060
869
64,628
265
1,546
128,252
612
7,280
727
575
13,201
6,983
586
6,391
4,076
1,442
907
770
3,205
3,377
7,844
678
67,898
645
1,055
3 Europe
4 Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
S France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Russia
16 Spain
17 Sweden
18 Switzerland
19 Turkey
20 United Kingdom
21 Yugoslavia2
22 Other Europe and other former U.S.S.R.3
13,845
18,432
17,978
19,239
16,433
17,788
17,978
18,812
18,907
20,255
24 Latin America and Caribbean
25 Argentina
26 Bahamas
27 Bermuda
28 Brazil
29 British West Indies
30 Chile
31 Colombia
32 Cuba
33 Ecuador
34 Guatemala
35 Jamaica
36 Mexico
37 Netherlands Antilles
38 Panama
39 Peru
40 Uruguay
41 Venezuela
42 Other
218,078
4,958
60,835
5,935
10,773
101,507
3,397
2,750
0
884
262
162
14,991
1,379
4,654
730
936
2,525
1,400
223,649
4,422
64,410
8,034
11,812
98,149
3,616
3,179
0
680
286
195
15,834
2,411
2,892
653
952
2,907
3,217
219,343'
5,776'
65,951
7,482'
9,452
94,082'
3,787
4,003
0
685
366
254
17,517
1,055
2,179
959
485
1,827'
3,483
219,772
5,587
62,351
5,444
10,299
100,840
3,401
3,463
0
625
310
204
16,329
1,332
2,384
946
711
2,055
3,491
221,055
5,588
64,841
5,199
10,216
99,311
3,431
3,671
12
628
337
255
16,954
1,195
2,307
857
800
1,934
3,519
215,948
5,718
60,786
6,710
9,784
95,922
3,628
3,768
0
635
335
251
17,406
1,818
2,304
884
652
1,921
3,426
219,343'
5,776'
65,951
7,482'
9,452
94,082'
3,787
4,003
0
685
366
254
17,517
1,055
2,179
959
485
1,827'
3,483
220,387
5,832
63,996
14,551
9,735
89,974
3,866
3,816
0
712
346
253
17,306
1,205
2,155
998
420
1,702
3,520
219,282
6,304
63,787
10,900
9,998
91,283
4,190
3,818
0
664
349
278
17,270
1,437
2,340
1,055
390
1,724
3,495
223,227
6,238
64,964
8,491
10,748
95,860
4,336
3,975
0
564
377
262
17,148
1,188
2,465
1,039
344
1,653
3,575
43
131,789
111,787
106,714'
106,261
101,412
103,346
106,714'
105,719
106,855
108,562
906
2,046
9,642
529
1,189
820
79,172
6,179
2,145
1,867
18,540
8,754
2,299
2,628
10,881
589
1,527
826
59,945
7,569
1,408
2,154
15,110
6,851
835
1,381
9,272
986
1,454
691
59,152'
10,002'
636
2,818
13,732
5,755
1,177
1,258
13,057
972
1,371
663
53,145
8,932
562
2,698
15,302
7,124
822
1,464
10,362
971
1,328
863
50,140
9,048
639
2,756
15,425
7,594
817
1,479
11,336
1,021
1,366
696
53,550
8,933
583
2,676
14,454
6,435
835
1,381
9,272
986
1,454
691
59,152'
10,002'
636
2,818
13,732
5,755
923
1,245
10,305
1,103
1,488
673
55,251
10,929
564
2,835
14,044
6,359
859
1,213
11,322
1,059
1,426
684
57,182
10,845
548
2,590
13,341
5,786
835
1,476
14,464
1,039
1,504
812
55,481
11,552
548
2,727
13,096
5,028
56 Africa
57 Egypt
58 Morocco
59 South Africa
60 Zaire
61 Oil-exporting countries5
62 Other
4,279
186
441
1,041
4
1,002
1,605
3,867
196
481
633
4
1,139
1,414
3,033
225
429
665
2
872
840
3,526
254
497
569
3
1,133
1,070
3,177
237
468
480
3
985
1,004
3,115
229
480
454
3
909
1,040
3,033
225
429
665
2
872
840
2,966
227
415
657
2
854
811
2,928
234
442
597
2
801
852
2,835
205
424
626
2
730
848
63 Other
64 Australia
65 Other
2,987
2,243
744
2,894
2,071
823
3,162'
2,219'
943
3,130
1,810
1,320
3,359
2,158
1,201
2,784
1,687
1,097
3,162'
2,219'
943
3,836
2,198
1,638
3,174
1,912
1,262
2,879
1,758
1,121
66 Nonmonetary international and regional organizations6...
5,082
2,405
4,294'
3,264
2,005
1,334
4,294'
2,995
884
3,333
23 Canada
44
45
46
47
48
49
50
51
52
53
54
55
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries4
Other
1. Reporting banks include all types of depository institutions, as well as some brokers
and dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992, has included
all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in "Other
Europe."
Nonbank-Reported
Data
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1994
1995
Type of claim
Sept.
Oct.
Nov.
479,426
22,373
286,539
107,035
52,914
54,121
63,479
464,360
20,649
276,040
103,639
50,490
53,149
64,032
Dec.'
1 Total
559,495
535,393
548,949
530,308
2 Banks' claims
3 Foreign public borrowers
4 Own foreign offices2
5 Unaffiliated foreign banks
6
Deposits
7
Other
8 All other foreigners
499,437
31,367
303,991
109,342
61,550
47,792
54,737
484,584
29,115
286,382
98,433
47,167
51,266
70,654
478,213
23,110
282,393
109,591
58,402
51,189
63,119
475,742
24,741
282,657
101,174
50,900
50,274
67,170
60,058
15,452
50,809
20,241
70,736
34,863
54,566
25,087
16,885
22,565
16,263
13,683
13,308
13,216
7,863
8,226
7,614
26,370
27,347
24,876
480,606
22,992
278,954
104,386
53,786
50,600
74,274
474,639
17,850
279,203
105,301
53,542
51,759
72,285
489,343
23,233
293,311
103,503
52,484
51,019
69,296
27,863
28,690
n.a.
8,226
38,623
Mar.p
13,308
8,655
Feb.
22,565
13,132
Jan.
70,736
34,863
31,474
r
9 Claims of banks' domestic customers3
10 Deposits
11 Negotiable and readily transferable
instruments4
12 Outstanding collections and other
claims
548,949
478,213
23,110
282,393
109,591
58,402
51,189
63,119
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States5
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 principally of amounts due from the head office or parent foreign bank,
23,337
27,912
27,347
and to foreign branches, agencies, or wholly owned subsidiaries of the head office or
parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad. For description of changes in
data reported by nonbanks, see Federal Reserve Bulletin, vol. 65 (July 1979), p. 550.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1994
Maturity, by borrower and area2
1991
1992
1993
Mar.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa 3
All other
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa 3
All other
Sept.
Dec.P
195,302
195,119
196,552
194,581
186,711
191,770
194,716
162,573
21,050
141,523
32,729
15,859
16,870
163,325
17,813
145,512
31,794
13,266
18,528
167,919
17,773
150,146
28,633
10,821
17,812
168,028
16,150
151,878
26,553
9,229
17,324
161,594
12,951
148,643
25,117
8,051
17,066
166,244
16,986
149,258
25,526
7,375
18,151
169,765
15,006
154,759
24,951
7,693
17,258
51,835
6,444
43,597
51,059
2,549
7,089
53,300
6,091
50,376
45,709
1,784
6,065
56,605
7,564
56,755
41,382
1,820
3,793
59,209
7,306
58,998
36,875
1,613
4,027
51,204
8,285
56,758
38,891
1,798
4,658
58,406
7,217
57,034
36,766
1,519
5,302
56,354
7,251
58,906
40,043
1,364
5,847
3,878
3,595
18,277
4,459
2,335
185
5,367
3,287
15,312
5,038
2,380
410
4,428
2,553
13,866
5,402
1,936
448
3,842
2,548
13,009
4,704
2,001
449
3,355
2,451
12,420
4,607
1,849
435
3,637
2,607
12,146
4,838
1,836
462
3,641
2,373
11,992
4,583
1,549
813
1. Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
June
2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.
A59
A60
International Statistics • July 1995
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1
Billions of dollars, end of period
1992
Area or country
1990
Dec.
1 Total
320.1
1993
1994
1991
343.6
346.5
Mar.
361.1
June
377.1
Sept.
388.4
Dec.
Mar.
Sept.
Dec.
404.7
1
502.7
r
509.7'
499.41"
r
r
r
478.4 "
June
132.2
5.9r
10.4
10.6
5.0
3.(f
2.2
4.4
60.9
5.9
24.0
137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6
132.9
5.6
15.3
9.3
6.5
2.8
2.3
4.8
60.8
6.3
19.3
142.5
6.1
13.5
9.9
6.7
3.6
3.0
5.3
65.7
8.2
20.4
150.0
7.0
14.0
10.8
7.9
3.7
2.5
4.7
73.5
8.0
17.9
153.3
7.1
12.3
12.4
8.7
3.7
2.5
5.6
74.7
9.7
16.8
161.6
7.4
11.7
12.6
7.7
4.7
2.5
5.9
84.7
6.7
17.8
178.8
8.0"
16.4
29.0r
15.5
4.1
2.8
6.3
70.1
7.7
18.9
174.2
8.8
18.8
26.0*
14.0
3.6
2.9
6.5
63.4
9.6
20.5
188.4
9.7
20.7
25.2r
11.6
3.5
2.6
6.2
82.8r
9.8
16.4
176. r
6.91
19.1
24.5r
11.8
3.6
2.7
6.9
70.3'
9.5
20.7
13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia
22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8
22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7
24.0
1.2
.9
.7
3.0
1.2
.4
8.9
1.3
1.7
1.7
2.9
25.4
1.2
.8
.7
2.7
1.8
.7
9.5
1.4
2.0
1.6
2.9
27.2
1.3
1.0
.9
3.1
1.8
.9
10.5
2.1
1.7
1.3
2.5
26.0
.6
1.1
.6
3.2
2.1
1.0
9.3
2.1
2.2
1.2
2.8
24.6
.4
1.0
.4
3.2
1.7
.8
8.9
2.1
2.6
1.1
2.3
41.2
1.0
1.1
1.0
3.8
1.6
1.2
12.3
2.4
3.0
1.2
12.7
41.7
1.0
1.1
.8
4.6
1.6
1.1
11.7
2.1
2.8
1.2
13.7
41.5
1.0
.8
.8
4.3
1.6
1.0
13.1
1.8
1.0
1.2
15.0
45.2r
1.1
1.2
1.0
4.5
2.0
1.2
13.6
1.6
2.7
1.0
15.4r
25 OPEC2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries
12.8
1.0
5.0
2.7
2.5
1.7
14.5
.7
5.4
2.7
4.2
1.5
16.1
.6
5.2
3.0
6.2
1.1
16.6
.6
5.1
3.1
6.6
1.1
15.7
.6
5.5
3.1
5.4
1.1
14.8
.5
5.4
2.8
4.9
1.1
17.4
.5
5.1
3.3
7.4
1.2
22.9
.5
4.7
3.4
13.2
1.1
21.5
.5
4.4
3.2
12.4
1.1
21.7'
.4
3.9
3.3
13.1r
1.0
22.1
.5
3.7
3.6
13.4
.9
31 Non-OPEC developing countries
65.4
63.9
72.1
74.4
76.7
77.0
82.6
93.6
94.1
94.3r
98.0r
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.8
9.6
3.6
1.7
15.5
.4
2.1
6.6
10.8
4.4
1.8
16.0
.5
2.6
7.1
11.6
4.6
1.9
16.8
.4
2.7
6.6
12.3
4.6
1.9
16.8
.4
2.7
7.2
11.7
4.7
2.0
17.5
.3
2.7
7.7
12.0
4.7
2.1
17.7
.4
3.0
8.7
12.6
5.1
2.2
18.8
.5
2.7
9.8
11.9
5.1
2.4
18.5
.6
2.7
10.5
9.2
5.4
2.4
19.6
.6
2.7
11.1
8.2
6.1
2.6
18.1
.5
2.5
2 G-10 countries and Switzerland
3 Belgium and Luxembourg
4 France
5 Germany
6 Italy
7 Netherlands
8 Sweden
9 Switzerland
10 United Kingdom
11 Canada
12 Japan
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
39
40
41
42
43
44
45
46
47
Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0
.7
5.2
3.2
.4
6.6
3.1
3.6
2.2
2.7
.6
5.3
3.1
.5
6.5
3.4
3.4
2.2
2.7
1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6
.5
6.4
2.9
.4
6.5
4.1
2.6
2.8
3.0
2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
2.9
.8
7.5
3.6
.4
13.9
5.2
3.4
2.9
3.1
.7
7.1
3.7
.4
14.1
5.2
3.2
3.3
3.5
1.0
6.9
3.9
.4
14.1r
6.0
2.9
3.5
3.6
1.1
9.1
4.2
.4
15.9rr
4.6
3.3
3.7
4.8
48
49
50
51
Africa
Egypt
Morocco
Zaire
Other Africa3
.4
.8
.0
1.0
.4
.7
.0
.7
.2
.6
.0
1.0
.2
.5
.0
.8
.2
.6
.0
.9
.2
.6
.0
.8
.4
.7
.0
.8
.4
.7
.0
1.0
.5
.7
.0
.9
.3
.7
.0
.9
.3
.6
.0
.8
2.3
.2
1.2
.9
2.4
.9
.9
.7
3.1
1.9
.6
.6
2.9
1.7
.6
.7
3.2
1.9
.6
.8
3.0
1.7
.6
.7
3.1
1.6
.6
.9
3.4
1.5
.5
1.4
3.0
1.2
.5
1.4
3.0
1.1
.5
1.5
2.7r
.8
.5
1.4'
56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama6
62 Lebanon
63 Hong Kong
64 Singapore
65 Other'
44.7
2.9
4.4
11.7
7.9
1.4
.1
9.7
6.6
.0
54.2
11.9
2.3
15.8
1.2
1.4
.1
14.4
7.1
.0
58.3
6.9
6.2
21.8
1.1
1.9
.1
13.8
6.5
.0
60.3
9.7
4.1
17.6
1.6
2.0
.1
16.7
8.4
.0
58.0
7.1
4.5
15.6
2.5
2.1
.1
16.9
9.3
.0
67.9
12.7
5.5
15.1
2.8
2.1
.1
19.1
10.4
.0
71.9
11.9
8.1
17.0
2.3
2.4
.1
18.7
11.2
.1
78.4r
15.1r
8.4
17.2r
2.8
2.0
.1
19.7
13.1
.0
76.8r
13.5r
6.1
20.3
2.5
1.9
.1
21.7
10.7
.0
74.9r
13.5r
5.3
20.2
1.7
1.9
.1
20.3
11.8
.0
68.1'
9.7
7.4
18.5'
1.0
1.3'
.1
19.9
10.2'
.1
66 Miscellaneous and unallocated8
39.9
48.0
39.7
38.8
46.2
46.3
43.4
59.9r
91.1
85.5r
87.<y
52 Eastern Europe
53 Russia4
54 Yugoslavia5
55 Other
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. As of December 1992, excludes Croatia, Bosnia and Hercegovinia, and Slovenia.
6. Includes Canal Zone.
7. Foreign branch claims only.
8. Includes New Zealand, Liberia, and international and regional organizations.
Nonbank-Reported
Data
A61
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1994
1993
Type of liability, and area or country
1991
1992
1993
Sept.
Dec.
Mar.
June
Sept.
Dec.
1
44,708
45,511
49,996
48,954
49,996
51,988
55,478
57,197
54,644
7 Payable in dollars
3 Payable in foreign currencies
39,029
5,679
37,456
8,055
38,758
11,238
39,711
9,243
38,758
11,238
38,549
13,439
43,114
12,364
42,754
14,443
39,700
14,944
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
22,518
18,104
4,414
23,841
16,960
6,881
28,586
18,553
10,033
27,172
19,146
8,026
28,586
18,553
10,033
30,344
18,929
11,415
33,340
22,976
10,364
35,843
23,282
12,561
32,848
19,792
13,056
7 Commercial liabilities
8
9 Advance receipts and other liabilities
22,190
9,252
12,938
21,670
9,566
12,104
21,410
8,811
12,599
21,782
9,215
12,567
21,410
8,811
12,599
21,644
8,974
12,670
22,138
9,913
12,225
21,354
9,552
11,802
21,796
10,013
11,783
20,925
1,265
20,496
1,174
20,205
1,205
20,565
1,217
20,205
1,205
19,620
2,024
20,138
2,000
19,472
1,882
19,908
1,888
12,003
216
2,106
682
1,056
408
6,528
13,387
414
1,623
889
606
569
8,610
18,437
175
2,377
975
534
634
13,121
16,886
278
2,077
855
573
378
12,135
18,437
175
2,377
975
534
634
13,121
20,442
525
2,606
1,214
564
1,200
13,725
23,627
524
1,590
939
533
631
18,193
23,765
661
2,241
1,467
648
633
16,800
20,870
495
1,727
1,961
552
688
14,709
10
11
1?
13
14
15
16
17
18
Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
Netherlands
United Kingdom
292
544
859
663
859
508
698
618
625
British West Indies
Mexico
Venezuela
4,784
537
114
6
3,524
7
4
4,053
379
114
19
2,850
12
6
3,359
1,148
0
18
1,533
17
5
3,719
1,301
114
18
1,600
15
5
3,359
1,148
0
18
1,533
17
5
3,553
1,157
120
18
1,613
14
5
3,282
1,052
115
18
1,454
13
5
3,159
1,112
15
7
1,364
15
5
3,021
926
80
207
1,160
0
5
77
78
29
Japan
Middle Eastern oil-exporting countries
5,381
4,116
13
5,818
4,750
19
5,689
4,620
23
5,754
4,725
23
5,689
4,620
23
5,650
4,638
24
5,694
4,760
24
8,149
6,947
31
8,147
7,013
35
30
31
Oil-exporting countries
6
4
6
0
133
123
132
124
133
123
133
124
9
0
133
123
135
123
52
33
109
18
109
58
30
19
50
8,701
248
1,039
1,052
710
575
2,297
7,398
298
700
729
535
350
2,505
6,835
239
655
684
688
375
2,047
7,048
257
642
571
600
536
2,319
6,835
239
655
684
688
375
2,047
6,550
251
554
577
628
388
2,151
6,921
254
712
670
649
473
2,311
6,867
287
742
552
674
391
2,351
6,855
231
763
611
723
335
2,450
19
Canada
20
71
7?
73
74
75
26
Latin America and Caribbean
Bahamas
32
33
34
35
36
37
38
39
Mother 5
Commercial liabilities
Belgium and Luxembourg
Netherlands
United Kingdom
40
Canada
1,014
1,002
879
845
879
1,037
1,070
1,068
1,038
41
47
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
1,355
3
310
219
107
307
94
1,533
3
307
209
33
457
142
1,666
21
350
216
27
483
126
1,754
4
340
214
35
576
173
1,666
21
350
216
27
483
126
1,908
8
493
211
20
556
150
2,007
2
418
217
24
705
194
1,790
6
200
148
33
673
192
1,865
19
345
163
23
576
279
48
49
50
Asia2
9,334
3,721
1,498
10,594
3,612
1,889
10,992
4,314
1,542
10,915
3,726
1,968
10,992
4,314
1,542
10,939
4,617
1,542
10,979
4,389
1,841
10,514
4,235
1,688
11,077
4,808
1,610
715
327
568
309
464
171
641
320
464
171
490
199
523
247
482
271
442
262
1,071
575
574
579
574
720
638
633
519
51
52
53
Venezuela
Middle Eastern oil-exporting countries
Oil-exporting countries
Other5
1. For a description of the changes in the international statistics tables, see Federal
Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Revisions include a reclassification of transactions, which also affects the totals for
Asia and the grand totals.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Includes nonmonetary international and regional organizations.
A62
International Statistics • July 1995
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period
1993
Type of claim, and area or country
1991
1992
1994
1993
Sept.
Dec.
Mar.
June
Sept.
Dec.
1 Total
45,262
45,073
47,643
46,030
47,643
48,404
47,925
49,830
55,269
2 Payable in dollars
3 Payable in foreign currencies
42,564
2,698
42,281
2,792
44,318
3,325
42,342
3,688
44,318
3,325
44,978
3,426
44,324
3,601
46,284
3,546
52,125
3,144
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
27,882
20,080
19,080
1,000
7,802
6,910
892
26,509
17,695
16,872
823
8,814
7,890
924
26,995
15,795
15,246
549
11,200
9,974
1,226
26,902
14,509
13,503
1,006
12,393
11,282
1,111
26,995
15,795
15,246
549
11,200
9,974
1,226
27,814
15,864
15,353
511
11,950
10,725
1,225
26,576
15,637
15,009
628
10,939
9,711
1,228
28,214
17,510
16,934
576
10,704
9,466
1,238
32,227
18,973
18,522
451
13,254
12,192
1,062
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
17,380
14,468
2,912
18,564
16,007
2,557
20,648
17,647
3,001
19,128
16,150
2,978
20,648
17,647
3,001
20,590
17,697
2,893
21,349
18,530
2,819
21,616
18,836
2,780
23,042
20,178
2,864
14
15
Payable in dollars
Payable in foreign currencies
16,574
806
17,519
1,045
19,098
1,550
17,557
1,571
19,098
1,550
18,900
1,690
19,604
1,745
19,884
1,732
21,411
1,631
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
13,441
13
269
283
334
581
11,534
9,331
8
764
326
515
490
6,252
7,187
134
785
526
502
515
3,543
8,376
70
708
362
485
512
5,230
7,187
134
785
526
502
515
3,543
7,118
125
753
466
503
520
3,629
6,564
83
859
459
472
495
3,089
8,060
114
825
413
503
747
4,370
7,606
86
780
540
429
523
4,388
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 countries2
34
35
Africa
Oil-exporting countries3
36
37
38
39
40
41
42
43
2,642
4
All other
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
1,833
2,024
2,103
2,024
2,198
3,062
3,156
3,785
10,717
827
8
351
9,056
212
40
13,893
778
40
686
11,747
445
29
15,639
1,006
125
654
12,448
868
161
12,965
980
197
590
10,000
882
25
15,639
1,006
125
654
12,448
868
161
15,497
1,157
34
672
12,371
850
26
14,279
1,193
39
466
11,578
614
33
14,363
1,006
52
411
11,772
655
32
18,306
2,259
27
520
14,466
605
35
640
350
5
864
668
3
1,591
853
3
2,754
2,213
5
1,591
853
3
2,522
1,655
5
2,210
1,349
2
2,152
662
19
1,813
909
141
57
1
83
9
99
1
88
1
99
1
76
0
74
1
87
1
249
0
385
505
455
616
455
403
387
396
468
8,193
194
1,585
955
645
295
2,086
8,451
189
1,537
933
552
362
2,094
9,077
184
1,947
1,018
422
429
2,369
8,211
163
1,438
935
410
377
2,288
9,077
184
1,947
1,018
422
429
2,369
8,734
176
1,827
944
354
413
2,330
8,904
179
1,778
937
293
685
2,427
8,768
174
1,766
880
329
537
2,483
9,562
217
1,886
1,046
313
558
2,545
44
Canada
1,121
1,286
1,358
1,362
1,358
1,451
1,466
1,501
1,541
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,655
13
264
427
41
842
203
3,043
28
255
357
40
924
345
3,283
11
182
463
71
994
295
3,073
20
225
407
39
866
287
3,283
11
182
463
71
994
295
3,569
13
222
422
58
1,013
294
3,901
18
295
502
67
1,047
303
3,965
34
246
473
49
1,133
392
4,146
9
234
614
83
1,244
354
4,591
1,899
620
4,866
1,903
693
5,909
2,173
715
5,544
2,519
458
5,909
2,173
715
5,852
2,353
667
6,145
2,359
615
6,425
2,448
615
6,735
2,497
699
430
95
554
78
521
85
501
107
521
85
516
102
492
90
462
68
473
76
390
364
500
437
500
468
441
495
585
52
53
54
55
56
57
Japan
Middle Eastern oil-exporting countries2
Africa
Oil-exporting countries3
4
Other
1. For a description of the changes in the international statistics tables, see Federal
Reserve Bulletin, vol. 65 (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
Securities Holdings and Transactions
A63
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1994r
1995
Transaction, and area or country
r
1993
1995
r
1994
Jan.Mar.
Sept.
Oct.
Nov.
Dec.
Jan.r
Feb.
Mar.p
U.S. corporate securities
STOCKS
319,664
298,086
350,558
348,648
89,649
93,231
28,819
30,463
27,811
29,852
28,696
27,653
28,094
29,727
24,999
25,893
29,428
29,685
35,222
37,653
3 Net purchases, or sales (—)
21,578
1,910
-3,582
-1,644
-2,041
1,043
-1,633
-894
-257
-2,431
4 Foreign countries
21,306
1,900
-3,543
-1,658
-2,073
1,020
-1,635
-930
-212
-2,401
10,658
-103
1,642
-602
2,986
4,559
-3,213
5,719
-321
8,198
3,825
63
202
6,717
-201
2,110
2,251
-30
840
-1,160
-2,108
-1,142
-1,207
1,190
29
771
-1,955
-532
-455
696
-942
-122
-177
1,514
-228
-2,662
-1,722
-46
11
-1,191
-61
-104
-130
-106
-643
61
-688
-445
576
748
10
19
-1,382
-198
-161
320
-655
-542
-415
-536
-74
346
258
12
-24
226
-25
-55
265
-551
566
-109
650
1
251
262
-4
5
-1,110
-119
-158
652
8
-1,265
175
-577
-86
-171
-174
-25
159
-516
-255
-157
278
-389
• 253
129
991
-22
-1,469
-860
-36
-7
-25
-27
-55
232
-78
-66
27
766
-133
-851
-541
0
4
-1,414
-250
-243
186
-475
-309
-333
-243
-73
-342
-321
-10
14
272
10
-39
14
32
23
2
36
-45
-30
283,824
217,824
291,193
229,640
67,412
46,706
19,274
17,012
19,932
16,609
22,379
15,462
18,911
14,760
19,267
12,800
22,804
16,354
25,341
17,552
1 Foreign purchases
2 Foreign sales
5
6
7
8
9
10
11
12
13
14
15
16
17
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
18 Nonmonetary international and
regional organizations
BONDS 2
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales (—)
66,000
61,553
20,706
2,262
3,323
6,917
4,151
6,467
6,450
7,789
22 Foreign countries
65,462
60,668
20,869
2,295
3,324
6,933
3,811
6,263
6,504
8,102
23
74
25
26
7,7
7,8
?9
30
31
3?
33
34
35
22,587
2,346
887
-290
-627
19,686
1,668
15,691
3,248
20,846
11,569
1,149
273
38,585
242
657
3,322
1,055
33,212
3,054
5,402
771
12,153
5,486
49
654
17,618
368
1,866
39
158
15,406
709
150
506
1,717
306
40
129
2,885
-17
-355
243
283
2,229
214
-1,577
-86
814
325
2
43
3,285
105
449
19
5
1,469
496
-1,189
51
607
375
19
55
4,383
-106
201
346
488
3,529
207
1,305
-96
1,137
497
-2
-1
2,635
4
451
28
12
1,943
443
662
-193
240
-174
8
16
6,653
157
1,516
-241
-85
5,406
245
-655
59
-28
-396
8
-19
6,052
296
526
126
304
4,815
175
-480
119
595
132
-4
47
4,913
-85
-176
154
-61
5,185
289
1,285
328
1,150
570
36
101
538
885
-163
-33
-1
-16
340
204
-54
-313
-2,547
28,444
30,991
-1,997
66,907
68,904
-2,212
25,742
27,954
1,135
68,887
67,752
-210
27,948
28,158
1,246
71,948
70,702
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
-62,691
245,490
308,181
-80,377
745,952
826,329
-46,818
386,334
433,152
-5,853
898,550
904,403
-4,477
86,229
90,706
-2,747
220,999
223,746
720
37,791
37,071
-1,095
78,182
79,277
-4,427
29,867
34,294
-5,200
66,202
71,402
43 Net purchases, or sales (—), of stocks and bonds . . . . -143,068
-52,671
-7,224
-375
-9,627
-4,544
-1,077
1,036
-4,043
-4,217
44 Foreign countries
-143,232
-53,191
-7,035
152
-9,477
-4,497
-1,832
972
-3,879
-4,128
45
46
47
48
49
50
-100,872
-15,664
-7,600
-15,159
-185
-3,752
4,778
-7,525
-22,133
-24,080
-475
-3,756
1,307
-428
-5,048
-3,315
-41
490
-2,532
339
5,079
-1,958
-22
-754
-5,507
-857
-1,464
-1,477
-72
-100
-790
-525
-2,241
511
-267
-1,185
-857
1,637
-421
-2,180
-96
85
3,404
-165
-436
-1,749
-2
-80
-1,165
877
-2,685
-1,087
-124
305
-932
-1,140
-1,927
-479
85
265
164
520
-189
-527
-150
-47
755
64
-164
-89
37 Stocks, net purchases, or sales ( - )
38 Foreign purchases
39 Foreign sales
40 Bonds, net purchases, or sales ( - )
41 Foreign purchases
42 Foreign sales
Europe
Canada
Latin America and Caribbean
Other countries
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman,
Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S. government
-1,528
29,180
30,708
-2,515
65,292
67,807
-2,739
29,101
31,840
-1,478
83,759
85,237
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized tofinancedirect investments abroad.
A64
International Statistics • July 1995
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1
Millions of dollars; net purchases, or sales (—) during period
1994r
1995
Area or country
1995
r
r
1994
1993
Jan.Mar.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.p
1 Total estimated
23,552
78,653
32,418
11,941
10,530
13,105
11,535
9,216
14,043
9,159
2 Foreign countries
23,368
78,610
32,270
12,029
9,435
13,068
11,938
9,890
13,325
9,055
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
-2,373
1,218
-9,976
-515
1,421
-1,501
6,197
783
10,309
38,544
1,098
5,709
1,254
794
456
23,438
5,795
3,491
19,234
292
1,050
2,142
92
-87
13,834
1,911
5,097
3,889
-15
-243
-68
105
353
3,577
180
1,610
-1,566
32
254
954
-37
-718
-1,958
-93
-420
7,763
24
924
-2
211
-1,512
7,706
412
-1,350
8,274
434
725
156
61
656
6,243
-1
-559
2,906
134
60
2,388
-35
166
299
-106
3,177
13,271
107
-543
-239
97
165
10,436
3,248
1,486
3,057
51
1,533
-7
30
-418
3,099
-1,231
434
12
13
14
15
16
17
18
19
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles ..
Asia
Japan
Africa
Other
-4,561
390
-5,795
844
20,582
17,070
1,156
-1,745
-10,182
-319
-20,496
10,633
47,087
29,518
240
-570
-4,964
505
-3,655
-1,814
13,705
9,927
31
-833
136
-5
2,308
-2,167
6,763
3,225
200
-569
6,710
7
-419
7,122
4,435
2,189
135
141
725
43
-2,074
2,756
4,944
4,551
-11
997
978
91
74
813
3,640
2,067
58
-453
636
-211
3,028
-2,181
3,567
3,444
-9
-387
-3,268
329
-3,325
-272
1,693
2,316
49
94
-2,332
387
-3,358
639
8,445
4,167
-9
-540
184
-330
653
43
170
75
148
358
-174
-88
-75
-1
1,095
1,074
6
37
73
4
-403
-322
-3
-674
-708
-6
718
608
199
104
458
-367
23 Foreign countries
24 Official institutions
25 Other foreign2
23,368
1,306
22,062
78,610
41,800
36,810
32,270
7,779
24,491
12,029
4,671
7,358
9,435
2,891
6,544
13,068
2,760
10,308
11,938
582
11,356
9,890
1,747
8,143
13,325
2,062
11,263
9,055
3,970
5,085
Oil-exporting countries
26 Middle East 2
27 Africa3
-8,836
-5
-38
0
-297
1
3
0
445
0
623
0
-405
-1
-360
0
-89
0
152
1
20 Nonmonetary international and regional organizations
21 International
22 Latin American regional
MEMO
1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of
foreign countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
Interest and Exchange Rates
A65
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS1
Percent per year, averages of daily figures
Rate on May 31, 1995
Country
Austria..
Belgium.
Canada..
Denmark
France2 .
Month
effective
4.0
4.0
7.64
6.0
5.0
Mar. 1995
Mar. 1995
May 1995
Mar. 1995
July 1994
Rate on May 31, 1995
Rate on May 31, 1995
Country
Country
Month
effective
Germany...
Italy
Japan
Netherlands
4.0
8.25
Mar. 1995
Feb. 1995
Apr. 1995
Mar. 1995
1.0
4.0
1. Rates shown are mainly those at which the central bank either discounts or makes
advances against eligible commercial paper or government securities for commercial
banks or brokers. For countries with more than one rate applicable to such discounts or
advances, the rate shown is the one at which it is understood that the central bank
transacts the largest proportion of its credit operations.
Month effective
Norway
Switzerland
United Kingdom
4.75
3.0
12.0
Feb. 1994
Mar. 1995
Sept. 1992
2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.
3.27 FOREIGN SHORT-TERM INTEREST RATES1
Percent per year, averages of daily figures
1994
Type or country
1992
1993
1995
1994
Nov.
1 Eurodollars
2 United Kingdom
3 Canada
4 Germany
5 Switzerland
6 Netherlands
7 France
8 Italy
9 Belgium
10 Japan
3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39
3.18
5.88
5.14
7.17
4.79
6.73
8.30
10.09
8.10
2.96
4.63
5.45
5.57
5.25
4.03
5.09
5.72
8.45
5.65
2.24
1. Rates are for three-month interbank loans, with the following exceptions: Canada,
finance company paper; Belgium, three-month Treasury bills; and Japan, CD rate.
Dec.
Jan.
Feb.
Mar.
Apr.
May
5.78
5.98
5.77
5.10
3.86
5.15
5.49
8.72
5.09
2.33
6.27
6.30
6.75
5.29
4.07
5.35
5.82
8.98
5.42
2.34
6.23
6.50
7.86
5.04
3.95
5.09
5.76
9.10
5.29
2.31
6.14
6.68
8.14
5.00
3.77
5.03
5.70
9.07
5.33
2.27
6.15
6.61
8.32
4.96
3.62
5.03
7.77
10.98
6.21
2.11
6.13
6.64
8.16
4.58
3.33
4.60
7.60
10.94
5.22
1.55
6.03
6.64
7.56
4.49
3.29
4.41
7.29
10.38
5.16
1.31
A66
International Statistics • July 1995
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1994
Country/currency unit
1992
1993
1995
1994
Dec.
1
2
3
4
5
6
7
8
9
10
Australia/dollar2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
Jan.
Feb.
Mar.
Apr.
May
73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81
67.993
11.639
34.581
1.2902
5.7795
6.4863
5.7251
5.6669
1.6545
229.64
73.161
11.409
33.426
1.3664
8.6404
6.3561
5.2340
5.5459
1.6216
242.50
77.389
11.063
32.329
1.3893
8.5119
6.1614
4.8590
5.4132
1.5716
242.96
76.469
10.769
31.542
1.4132
8.4608
6.0311
4.7506
5.2912
1.5302
238.21
74.473
10.573
30.908
1.4005
8.4553
5.9302
4.6547
5.2252
1.5022
236.17
73.452
9.898
29.035
1.4077
8.4483
5.6281
4.3967
4.9756
1.4061
228.53
73.564
9.720
28.419
1.3762
8.4421
5.4391
4.2884
4.8503
1.3812
225.19
72.716
9.912
29.009
1.3609
8.3370
5.5194
4.3386
4.9869
1.4096
228.46
7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07
7.7357
31.291
146.47
1,573.41
111.08
2.5738
1.8585
54.127
7.1009
161.08
7.7290
31.394
149.69
1,611.49
102.18
2.6237
1.8190
59.358
7.0553
165.93
7.7379
31.389
153.36
1,633.71
100.18
2.5626
1.7601
63.726
6.8561
161.21
7.7439
31.374
155.67
1,611.53
99.77
2.5556
1.7159
64.018
6.6968
157.86
7.7314
31.380
156.20
1,620.58
98.24
2.5526
1.6844
63.448
6.5974
155.36
7.7318
31.587
159.76
1,688.99
90.52
2.5464
1.5774
64.598
6.2730
147.92
7.7336
31.407
162.80
1,710.89
83.69
2.4787
1.5474
66.723
6.2050
145.89
7.7351
31.418
161.98
1,652.78
85.11
2.4684
1.5779
66.740
6.2980
148.40
1.6294
2.8524
784.66
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63
1.6158
3.2729
805.75
127.48
48.211
7.7956
1.4781
26.416
25.333
150.16
1.5275
3.5526
806.93
133.88
49.170
7.7161
1.3667
26.465
25.161
153.19
1.4657
3.5614
794.81
132.31
49.531
7.5161
1.3289
26.381
25.109
155.87
1.4532
3.5404
793.08
132.62
49.870
7.4775
1.2863
26.300
25.133
157.46
1.4541
3.5629
793.19
130.52
49.895
7.3914
1.2715
26.339
25.020
157.20
1.4216
3.6013
781.81
128.58
49.627
7.2787
1.1709
26.102
24.760
160.02
1.3986
3.6035
770.61
124.14
49.371
7.3455
1.1384
25.491
24.572
160.73
1.3947
3.6574
764.43
123.22
49.558
7.3072
1.1693
25.537
24.663
158.74
93.18
91.32
89.64
88.30
87.29
83.69
MEMO
31 United States/dollar3
86.61
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering
address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the currencies of
ten industrial countries. The weight for each of the ten countries is the 1972-76 average
81.81
82.73
world trade of that country divided by the average world trade of all ten countries
combined. Series revised as of August 1978 (see Federal Reserve Bulletin, vol. 64
(August 1978), p. 700).
A67
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Issue
June 1995
Page
A76
Issue
Anticipated schedule of release dates for periodic releases
Page
SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
March 31,1993
June 30, 1993
September 30, 1993
December 31, 1993
August
November
February
May
1993
1993
1994
1994
A70
A70
A70
A68
Terms of lending at commercial banks
May 1994
August 1994
November 1994
February 1995
August
November
February
May
1994
1994
1995
1995
A68
A68
A68
A68
Assets and liabilities of U.S. branches and agencies of foreign banks
March 31, 1994
June 30, 1994
September 30, 1994
December 31, 1994
August
November
February
May
1994
1994
1995
1995
A72
A72
A72
All
Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30, 1991
March 31, 1992
June 30, 1992
November
January
August
October
1991
1992
1992
1992
A80
A70
A80
A70
Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992
December
May
August
March
1991
1992
1992
1993
A79
A81
A83
A71
A68
Index to Statistical Tables
References are to pages A3-A66 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 21, 22
Assets and liabilities (See also Foreigners)
Banks, by classes, 18—23
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 23
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 11, 12, 21-24, 26
Bankers balances, 18-23. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 34
Rates, 26
Branch banks, 23
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 18
Federal Reserve Banks, 11
Central banks, discount rates, 65
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 21, 22
Weekly reporting banks, 21-23
Commercial banks
Assets and liabilities, 18-23
Commercial and industrial loans, 18-23
Consumer loans held, by type and terms, 39
Deposit interest rates of insured, 16
Loans sold outright, 22
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 4
Commercial paper, 24, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 39
Consumer prices, 45
Consumption expenditures, 52, 53
Corporations
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-23
Ownership by individuals, partnerships, and
corporations, 22, 23
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)
Banks, by classes, 4, 18—23
Federal Reserve Banks, 5,11
Interest rates, 16
Turnover, 17
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasury financing of surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 33
Federal funds, 7, 21, 22, 23, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 24, 26
Financial institutions, loans to, 21, 22, 23
Float, 5
Flow of funds, 40, 42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 22, 23
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 22
Foreign exchange rates, 66
Foreign trade, 54
Foreigners
Claims on, 55, 58, 59, 60, 62
Liabilities to, 22, 54, 55, 56, 61, 63, 64
GOLD
Certificate account, 11
Stock, 5, 54
A69
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51, 52
Industrial production, 45, 47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 65
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-65
International organizations, 55, 56, 58, 61, 62
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 18-23
Commercial banks, 4, 18-23
Federal Reserve Banks, 11, 12
Financial institutions, 38
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18—23
Commercial banks, 18-23
Federal Reserve Banks, 5,6, 8, 11, 12
Financial institutions, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46,48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 21, 22, 38
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7
Reserve requirements, 9
Reserves
Commercial banks, 18
Depository institutions, 4, 5, 6,13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 45
SAVING
Flow of funds, 40,42,43, 44
National income accounts, 51
Savings institutions, 38, 39, 40
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 63
New issues, 34
Prices, 27
Special drawing rights, 5,11, 53, 54
State and local governments
Deposits, 21, 22
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 21, 23
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 14,16,18-23
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 18-23
Treasury deposits at Reserve Banks, 5,11, 28
U.S. government securities
Bank holdings, 18-23, 30
Dealer transactions, positions, andfinancing,32
Federal Reserve Bank holdings, 5,11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 64
Open market transactions, 10
Outstanding, by type and holder, 30, 31
Rates, 26
U.S. international transactions, 53-66
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 18-23
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
A70
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
ALAN S . BLINDER, Vice Chairman
OFFICE OF BOARD
EDWARD W. KELLEY, JR.
LAWRENCE B . LINDSEY
MEMBERS
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
THEODORE E. ALLISON, Assistant to the Board for
Federal
Reserve System Affairs
LYNN S. FOX, Deputy Congressional Liaison
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
PORTIA W . THOMPSON,
Equal Employment Opportunity
Programs Adviser
LEGAL
DIVISION OF INTERNATIONAL FINANCE
EDWIN M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
D A L E W . HENDERSON, Associate Director
DAVID H . HOWARD, Senior Adviser
DONALD B . ADAMS, Assistant Director
THOMAS A . CONNORS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H . JOHNSON, Assistant Director
CATHERINE L . M A N N , Assistant Director
RALPH W . SMITH, JR., Assistant Director
DIVISION
OFFICE OF THE SECRETARY
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
MARTHA BETHEA, Associate Director
WILLIAM R . JONES, Associate Director
MYRON L . KWAST, Associate Director
PATRICK M . PARKINSON, Associate Director
THOMAS D . SIMPSON, Associate Director
WILLIAM W. WILES,
LAWRENCE SLIFMAN, Associate
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ROBERT DEV. FRIERSON, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
Secretary
JENNIFER J. JOHNSON, Deputy
Secretary
BARBARA R. LOWREY, Associate
Secretary
DAY W . RADEBAUGH, JR.,
Assistant Secretary1
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C . SCHEMERING, Deputy Director
D O N E . KLINE, Associate Director
WILLIAM A . RYBACK, Associate Director
FREDERICK M . STRUBLE, Associate Director
HERBERT A . BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A . AMER, Assistant Director
GERALD A . EDWARDS, JR., Assistant Director
JAMES D . GOETZINGER, Assistant Director
STEPHEN M . HOFFMAN, JR., Assistant Director
LAURA M . HOMER, Assistant Director
JAMES V. HOUPT, Assistant Director
JACK P. JENNINGS, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
RHOGER H PUGH, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
MOLLY S . WASSOM, Assistant Director
WILLIAM SCHNEIDER, Project
Director,
National Information Center
1. On loanfromdie Division of Information Resources Management
Director
Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
FLINT BRAYTON, Assistant Director
DAVID S . JONES, Assistant Director
STEPHEN A . RHOADES, Assistant Director
CHARLES S . STRUCKMEYER, Assistant Director
ALICE PATRICIA WHITE, Assistant Director
JOYCE K . ZICKLER, Assistant Director
JOHN J. MINGO, Senior Adviser
MARTHA S . SCANLON,
GLENN B . CANNER,
Adviser
DIVISION OF MONETARY
AFFAIRS
Director
LINDSEY, Deputy Director
MADIGAN, Associate Director
D . PORTER, Deputy Associate Director
R . REINHART, Assistant Director
D O N A L D L . KOHN,
DAVID E .
BRIAN F.
RICHARD
VINCENT
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L. GARWOOD,
Director
Associate Director
DOLORES S . SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN M C N U L T Y , Assistant Director
G L E N N E . LONEY,
A71
SUSAN M . PHILLIPS
JANET L. YELLEN
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
Staff Director
EEO Programs Director
DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS
OPERATIONS
Director
Deputy Director (Finance and
S . DAVID FROST,
CLYDE H . FARNSWORTH, JR.,
SHEILA CLARK,
DAVID L . ROBINSON,
Control)
DIVISION OF HUMAN
MANAGEMENT
RESOURCES
CHARLES W . BENNETT,
Director
Associate Director
ANTHONY V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
DAVID L . S H A N N O N ,
JOHN R . WEIS,
OFFICE OF THE
CONTROLLER
Controller
Assistant Controller (Programs and
GEORGE E . LIVINGSTON,
STEPHEN J. CLARK,
Budgets)
DARRELL R . PAULEY,
Assistant Controller (Finance)
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,
RESOURCES
Director
MARIANNE M. EMERSON, Assistant
Po
Director
Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
ELIZABETH B . RIGGS, Assistant Director
RICHARD C . STEVENS, Assistant Director
KYUNG KIM,
Associate Director
Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G . HAMILTON, Assistant Director
JEFFREY C . MARQUARDT, Assistant Director
LOUISE L . ROSEMAN,
JOHN H. PARRISH, Assistant
FLORENCE M . YOUNG,
Director
Assistant Director
OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector
GENERAL
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
203
Federal Reserve Bulletin • July 1995
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WILLIAM J. MCDONOUGH,
Vice Chairman
ALAN S. BLINDER
LAWRENCE B . LINDSEY
THOMAS M . HOENIG
THOMAS C . MELZER
SUSAN M . PHILLIPS
EDWARD W . KELLEY, JR.
CATHY E . MINEHAN
JANET L. YELLEN
ALTERNATE
EDWARD G . BOEHNE
MEMBERS
ROBERT D . MCTEER
JERRY L. JORDAN
MICHAEL H . MOSKOW
ERNEST T. PATRIKIS
GARY H . STERN
STAFF
DONALD L. KOHN, Secretary
NORMAND R.V. BERNARD,
and
Economist
WILLIAM G. DEWALD, Associate
Economist
WILLIAM C. HUNTER, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
FREDERIC S. MISHKIN, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
DAVID J. STOCKTON, Associate
Economist
CARL E. VANDER WILT, Associate
Economist
Deputy Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C . BAXTER, JR.,
Deputy General Counsel
MICHAEL J. PRELL, Economist
EDWIN M. TRUMAN, Economist
LYNN E. BROWNE, Associate
THOMAS E. DAVIS, Associate
Economist
Economist
PETER R . FISHER,
FEDERAL ADVISORY
Manager, System Open Market Account
COUNCIL
ANTHONY P. TERRACCIANO,
MARSHALL N . CARTER,
N.
Seventh District
III, Eighth District
RICHARD M . KOVACEVICH, Ninth District
CHARLES E. NELSON, Tenth District
CHARLES R . HRDLICKA, Eleventh District
EDWARD A . CARSON, Twelfth District
First District
Second District
ANTHONY P. TERRACCIANO, Third District
FRANK V. CAHOUET, Fourth District
RICHARD G . TILGHMAN, Fifth District
CHARLES E . RICE, Sixth District
MARSHALL
ROGER L. FITZSIMONDS,
CARTER,
WALTER V. SHIPLEY,
President
Vice President
ANDREW
CRAIG,
Secretary Emeritus
Co-Secretary
KORSVIK, Co-Secretary
HERBERT V. PROCHNOW,
JAMES ANNABLE,
WILLIAM J.
B.
A73
CONSUMER ADVISORY
COUNCIL
Tijeras, New Mexico, Chairman
W. MCKEE, Washington, D . C . , Vice Chairman
JAMES L. WEST,
KATHARINE
St. Paul, Minnesota
R. BUTLER, Riverwoods, Illinois
ROBERT A. COOK, Baltimore, Maryland
ALVIN J. COWANS, Orlando, Florida
MICHAEL FERRY, St. Louis, Missouri
ELIZABETH G . FLORES, Laredo, Texas
EMANUEL FREEMAN, Philadelphia, Pennsylvania
NORMA L. FREIBERG, New Orleans, Louisiana
DAVID C. FYNN, Cleveland, Ohio
LORI GAY, LOS Angeles, California
ROBERT G . GREER, Houston, Texas
KENNETH R. HARNEY, Chevy Chase, Maryland
GAIL K . HILLEBRAND, San Francisco, California
RONALD A. HOMER, Boston, Massachusetts
Dallas, Texas
Cando, North Dakota
EUGENE I. LEHRMANN, Madison, Wisconsin
RONALD A . PRILL, Minneapolis, Minnesota
LISA RICE-COLEMAN, Toledo, Ohio
JOHN R . RINES, Detroit, Michigan
JULIA M. SEWARD, Richmond, Virginia
A N N E B. SHLAY, Philadelphia, Pennsylvania
REGINALD J. SMITH, Kansas City, Missouri
JOHN E. TAYLOR, Washington, D.C.
LORRAINE VANETTEN, Troy, Michigan
GRACE W. WEINSTEIN, Englewood, New Jersey
LILY K. YAO, Honolulu, Hawaii
ROBERT O. ZDENEK, Baltimore, Maryland
D . DOUGLAS BLANKE,
THOMAS L. HOUSTON,
THOMAS
THRIFT INSTITUTIONS ADVISORY
TERRY JORDE,
COUNCIL
Cleveland, Ohio, President
Miami, Florida, Vice President
CHARLES JOHN KOCH,
STEPHEN
D.
Hazleton, Pennsylvania
Hillsborough, California
MALCOLM E. COLLIER, Lakewood, Colorado
GEORGE L. ENGELKE, JR., Lake Success, New York
BEVERLY D. HARRIS, Livingston, Montana
E . LEE BEARD,
JOHN E. BRUBAKER,
TAYLOR,
F. HOLLAND, Burlington, Massachusetts
C. SCULLY, Chicago, Illinois
JOHN M. TIPPETS, DFW Airport, Texas
LARRY T. WILSON, Raleigh, North Carolina
WILLIAM W. ZUPPE, Spokane, Washington
DAVID
JOSEPH
A74
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-127, Board of Governors of the Federal Reserve System,
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THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1994. 157 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1994-95.
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THE FEDERAL RESERVE ACT and other statutory provisions
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August 1990. 646 pp. $10.00.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
PERCENTAGE RATE TABLES (Truth in Lending—
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Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25.
ANNUAL
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each.
$8.50
Loose-leaf; updated
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Monetary Policy and Reserve Requirements Handbook.
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THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
INDUSTRIAL PRODUCTION—1986 EDITION. December 1986.
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FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
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FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALYSIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
How to File a Consumer Complaint
Making Deposits: When Will Your Money Be Available?
Making Sense of Savings
SHOP: The Card You Pick Can Save You Money
Welcome to the Federal Reserve
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
A75
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 1-157 are out of print.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FHOM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n
A. Rhoades. February 1992. 11 pp.
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
1 6 4 . THE 1 9 8 9 - 9 2 CREDIT CRUNCH FOR REAL ESTATE, b y
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
1 6 5 . THE DEMAND FOR TRADE CREDIT: A N INVESTIGATION OF
MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES,
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
by Gregory E. Elliehausen and John D. Wolken. September 1 9 9 3 . 18 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang
1 6 6 . THE ECONOMICS OF THE PRIVATE PLACEMENT MARKET,
and Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
1 9 8 0 - 9 0 , by Margaret Hastings Pickering. May 1 9 9 1 .
21pp.
by Mark Carey, Stephen Prowse, John Rea, and Gregory
Udell. January 1994. I l l pp.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN
BANKING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE "OPERATING PERFORMANCE" AND "EVENT STUDY" METHOD-
OLOGIES, by Stephen A. Rhoades. July 1994. 37 pp.
A76
Maps of the Federal Reserve System
LEGEND
Both pages
• Federal Reserve Bank city
• Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts
by number and Reserve Bank city (shown on both
pages) and by letter (shown on the facing page).
In the 12th District, the Seattle Branch serves
Alaska, and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories
as follows: the New York Bank serves the
Commonwealth of Puerto Rico and the U S . Virgin
Islands; the San Francisco Bank serves American
Samoa, Guam, and the Commonwealth of the
Northern Mariana Islands. The Board of Governors
revised the branch boundaries of the System most
recently in December 1991.
A77
1-A
2-B
yi
Buffalo
\
RI
CT
•
.
NJ
MA
Baltimore M
D
•Charlotte
NY
PHILADELPHIA
RICHMOND
CLEVELAND
8-H
7-G
6-F
5-E
Pittsburgh
f
NEW YORK
BOSTON
4-D
3-C
Birmingham
jm
• j:.
/
Louisville
A
*
P
•Memphis
Liule
ATLANTA
CHICAGO
ST. LOUIS
9-1
MINNEAPOLIS
12-L
10-J
KANSAS CITY
11-K
Salt Lake City
San Antonio
DALLAS
SAN FRANCISCO
A78
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106 Jerome H. Grossman
William C. Brainard
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045 Maurice R. Greenberg
David A. Hamburg
14240 Joseph J. Castiglia
William J. McDonough
Ernest T. Patrikis
PHILADELPHIA
19105 James M. Mead
Donald J. Kennedy
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101 A. William Reynolds
G. Watts Humphrey, Jr.
45201 John N. Taylor, Jr.
15230 Robert P. Bozzone
Jerry L. Jordan
Sandra Pianalto
23219 Henry J. Faison
Claudine B. Malone
21203 Michael R. Watson
28230 James O. Roberson
22701
J. Alfred Broaddus, Jr.
Walter A. Varvel
30303 Leo Benatar
Hugh M. Brown
35283 Patricia B. Compton
32231 Lana Jane Lewis-Brent
33152 Michael T. Wilson
37203 James E. Dalton, Jr.
70161 Jo Ann Slaydon
Robert P. Forrestal
Jack Guynn
60690 Robert M. Healey
Richard G. Cline
48231 John D. Forsyth
Michael H. Moskow
William C. Conrad
63166 Robert H. Quenon
John F. McDonnell
72203 Janet M. Jones
40232 Daniel L. Ash
38101 Woods E. Eastland
Thomas C. Melzer
James R. Bowen
55480 Gerald A. Rauenhorst
Jean D. Kinsey
59601 Matthew J. Quinn
Gary H. Stern
Colleen K. Strand
64198 Herman Cain
A. Drue Jennings
80217 Sandra K. Woods
73125 Ernest L. Holloway
68102 Sheila Griffin
Thomas M. Hoenig
Richard K. Rasdall
75201 Cece Smith
Roger R. Hemminghaus
79999 W. Thomas Beard III
77252 Isaac H. Kempner III
78295 Carol L. Thompson
Robert D. McTeer, Jr.
Tony J. Salvaggio
94120 Judith M. Runstad
James A. Vohs
90051 Anita E. Landecker
97208 Ross R. Runkel
84125 Gerald R. Sherratt
98124 George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Buffalo
Cincinnati
Pittsburgh
RICHMOND*
Baltimore
Charlotte
Culpeper
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
Detroit
ST. LOUIS
Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO ....
Los Angeles
Portland
Salt Lake City
Seattle
Vice President
in charge of branch
Carl W. Turnipseed1
Charles A. Cerino1
Harold J. Swart1
William J. Tignanelli1
Dan M. Bechter1
Julius Malinowski, Jr.2
Donald E. Nelson1
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
John P. Baumgartner
John D. Johnson
KentM. Scott1
Mark L. Mullinix
Harold L. Shewmaker
Sammie C. Clay 1
Robert Smith, III
James L. Stull1
John F. Moore1
Raymond H. Laurence
Andrea P. Wolcott
Gordon Werkema1
* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho,
New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311;
Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Assistant Vice President.
Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.
A Consumer's
Guide to
Mortgage
Lock-Ins
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, mail stop 127,
Board of Governors of the Federal Reserve System,
Washington, DC 20551. Multiple copies for classroom use are also available free of charge.
A Consumer's
Guide to
Settlement
Costs
Publications of Interest
FEDERAL RESERVE REGULATORY SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a four-volume loose-leaf service
containing all Board regulations as well as related
statutes, interpretations, policy statements, rulings,
and staff opinions. For those with a more specialized
interest in the Board's regulations, parts of this service are published separately as handbooks pertaining
to monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains
citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included are the Board's list
of marginable OTC stocks and its list of foreign
margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, BB, and DD,
and associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulations CC, J, and EE, related statutes and commentaries, and policy statements on risk reduction in the
payment system.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the
United States, the price including additional air mail
costs is $250 for the Service and $90 for each Handbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 127, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
GUIDE TO THE FLOW OF FUNDS ACCOUNTS
A recent Federal Reserve publication, Guide to the
Flow of Funds Accounts, explains in detail how the
U.S. financial flow accounts are prepared. The
accounts, which are compiled by the Division of
Research and Statistics, are published in the Board's
quarterly Z.l statistical release, "Flow of Funds
Accounts, Flows and Outstandings." The Guide
updates and replaces Introduction to Flow of Funds,
published in 1980.
The 670-page Guide begins with an explanation of
the organization and uses of the flow of funds
accounts and their relationship to the national income
and product accounts prepared by the US. Department of Commerce. Also discussed are the individual
data series that make up the accounts and such proce-
dures as seasonal adjustment, extrapolation, and
interpolation.
The balance of the Guide contains explanatory
tables corresponding to the tables of financial flows
data that appeared in the September 1992 Z.l release.
These tables give, for each data series, the source of
the data or the methods of calculation, along with
annual data for 1991 that were published in the
September 1992 release.
Guide to the Flow of Funds Accounts is available
for $8.50 per copy from Publications Services, Board
of Governors of the Federal Reserve System, Washington, DC 20551. Orders must include a check or
money order, in U.S. dollars, made payable to the
Board of Governors of the Federal Reserve System.
@FedFRASER